The Real Fireworks Are About To Begin
As unconventional and counter-establishment as Donald Trump's candidacy has been to date, the stakes are about to get much, much higher. And the outcome will likely determine whether Trump's candidacy remains a Summer footnote or becomes a potentially significant event. What is about to happen?
Donald Trump is not just going to propose raising taxes, and propose raising taxes on the rich, but he is going to argue that too many of the rich and large corporations have been acting like "takers."
Hoo-boy! Let the real fireworks begin:
Republican front-runner Donald Trump began to flesh out his economic vision for America, and it includes raising taxes on the wealthy.As the NYT reports, Trump has also proposed imposing a 35% additional tax on carmakers that ship jobs overseas, andTrump said during a Wednesday interview on Bloomberg’s With All Due Respect that he would like to change the tax code.Trump sat down with Bloomberg Politics’ Mark Halperin and John Heilemann, and surprisingly enough, he voiced his support for scrapping the carried-interest loophole, which tax hedge-fund profits at a lower rate than usual income. Eliminating the Wall Street tax break been a priority for many Democrats for quite a while.Trump went on to complain that multi-millionaires are currently “paying very little tax and I think it’s outrageous.” After stressing his support for middle-class tax breaks – the Republican candidate has not yet outlined any specifics – Trump added, “I know people in hedge funds that pay almost nothing and it’s ridiculous, OK?”
Mr. Trump has also been critical of hedge fund managers and the favorable tax treatment they receive. Calling them “paper pushers” who he says often just get lucky in making their money, Mr. Trump said last weekend that their taxes should be higher while the middle class should have their taxes reduced.This could be really significant. Everyone knows that the modern Republican party is an awkward, fragile alliance between disaffected White Southern voters largely advancing the economic interests of an extremely wealthy elite. A self-financed, maverick billionaire - who holds the most xenophobic positions in the race - while indignantly attacking the core Republican shibboleths of "trickle-down" economics and uncritically worshipping the wealthy?Hedge funds are not the only business groups that Mr. Trump has singled out. This month he lamented corporate “inversions” — when an American company acquires an international company so it can relocate its headquarters to a country with a lower tax rate.“They have no loyalty to this country,” Mr. Trump told NBC. “And we have to do something.”
Hold on to your hats. And this is something that the Republican establishment cannot allow to even get a toe hold. As I said . . . get ready for the real fireworks and see who is left standing when the smoke clears.