Americans who want a booming economy had more reasons to be optimistic last week.
First, President Trump stopped his announced tariffs, giving him space to negotiate with other countries, including our allies, about the accommodation of his many unfair commercial barriers.
More importantly, the Republicans of the House of Representatives approved a budget bill on Thursday, preparing the stage to make Trump’s tax cuts in 2017 permanent. The final bill could be approved within a month, perhaps two.
Do not be mistaken: Tax cuts are the key to Trump’s presidential legacy. Tariffs can help promote US companies, but nothing is done to lift Americans Themselves Than the lowest taxes.
I say this with due respect for the president’s approach in commerce. I am not one of those crazy about the massive rates presented on April 2, which hopes to use in the short term to mark the beginning of a new era or not only free, but also free, but free, but also fairy Trade.
Tax cuts, thought, are the true key to larger payment checks, better jobs and a booming economy.
Above all, permanent tax cuts will allow entrepreneurship that makes everything else possible.
Each American recalls the incredible economy that resulted from Trump’s tax cuts in 2017.
Salaries grew at their fastest rate in 20 years, and workers at the bottom of the income scale saw 400% salary growth faster than the rich.
It did not fall to a lower level of 50 years and the lowest level for black and Hispanic workers.
Little companies flourished, what really matters: new companies and mothers and pop stores create two out of three new net jobs throughout the country.
The good memory of Trump’s boom is exactly why Americans, including the unprecedented number of minority voters, chose it again in 2024.
But many of its tax cuts will expire at the end of this year, including the deduction of the Income Tax and the relief of small businesses.
If those tax rates increase, an economic boom is virtual impossible. A bust is likely to be inevitable.
And all Americans will suffer, because entrepreneurs will be much more difficult to maintain their doors open or start new businesses in the first place.
That spirit of risk has always brought the key to growth, innovation of this country and, frankly, our economic exceptionalism.
We do not have the largest and most powerful economy in the world due to large companies: our economy is insurmountable because we have made it easier for anyone to begin little Business.
But the highest taxes are the biggest barrier to start a business.
I know this because I started my own retail company in the early 1990s.
At that time, taxes were only lower than they are after Trump’s tax cuts in 2017. After accounting for taxes and household expenses, I could dedicate 52% of my income to start and build my business.
I needed every penny; I only thought that the lowest taxes made it easier, starting a small company is still incredible and an incredible expectation.
I doubt that it may have done so in the years just before Trump’s tax cuts.
Taxes increased a lot between the early 1990s and 2016. Ditto if their tax cuts expire at the end of this year.
Adjusting inflation, I would pay $ 80,000 more to IRS than in the early 1990s. Without that cash, I don’t see how I could have the Goths of my company.
Millions of Americans are facing the same imminent problem, and not only the owners of current small businesses: the next generation of entrepreneurs needs lower taxes to make their dreams come true.
If taxes increase to the levels prior to 2017, many do not find their dreams waiting for entrepreneurs who begin with little or nothing.
And that will be a nightmare for the entire economy.
Less small businesses means lower salaries, less jobs and less of innovation that transforms our standard of living.
Trump fulfilled the promise to make Americans richer. Now you need to keep that promise making your tax cuts permanent as soon as possible.
The president cannot be distracted by tariffs. You need to make a total impulse to obtain your tax cuts on the target line of the Congress.
When he announced his tariffs on April 2, he called him “Day of Liberation.”
But the real release will come the day that he and Congress give Americans the permanent fiscal table they deserve.
John Tillman is CEO of the American Culture Project.