New Column: 1. Trump's incompetence leads to deaths, and crushing job and business losses. 2. GOP senators–many of them millionaires, by the way–have "bailout fatigue." Where is this country headed? https://t.co/QLBChWBwGr via @thedailybeast
— Michael Tomasky (@mtomasky) May 11, 2020
Over the cliff
Trump isn’t opposed to a fourth “bailout” as long as it includes the elimination of the Capital Gains tax and a cut or suspension of the Payroll tax.
Trump will claim that the average American working man and woman will benefit from such a move, but like everything else Trump says it’s a lie.
Suspending or cutting the payroll tax will cause a cash shortfall to the Social Security and Medicare systems to the tune of billions of dollars in uncollected taxes.
That will obviously effect the solvency of both programs and bring about a quick demise of both systems.
Eliminating or cutting the Capital Gains tax will not reduce taxes for the average American worker (How big is your estate?), but it will put billions into the pockets of the wealthy.
Adding to the National Debt becomes a problem when the debt owed is a multiple greater then your Gross Domestic Production.
Post-WWI Germany printed all of the money that it needed to keep it’s economy afloat.
That worked well until Germany’s creditors called in their loans because the amount of currency being printed and distributed far exceeded the countries GDP and couldn’t have been paid back in two lifetimes.
That made Germany’s currency worthless and WWII inevitable.
In this world you gotta pay back your debts one way or another.