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August 29, 2015 | Advise for Trump

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.


QUESTION: What would you advise Trump if he asked?

ANSWER: When I debated Steve Forbes and New Jersey Governor Jim Florio who lost because he kept raising taxes, it was Florio who I converted. Steve took the Flat Tax and Florio was the tax-em-til-the-die Democrat, and in the debate I disarmed Florio by pointing out that the government borrowed from the poor and did not pay them anything handing back their own money in a refund check to pretend they were benefiting from socialism.

Eliminate payroll taxes and say bluntly that the Founding Fathers knew the evils of direct taxation and return the country to how they designed the system rather than Karl Marx. If everyone pays indirect taxes, then even illegal aliens have to pay. With income taxes, only citizens pay taxes and government has to track you. So it is also a loss of privacy.

Hillary says she will force companies to pay people more. The State of New York is going to mandate a $15 minimum wage. Add Obamacare, and big companies will drive to replace workers even more with automated machines. You never see someone in a parking garage. You check in for a flight and you use a machine to give you a boarding pass. Some airports, as Frankfurt in Germany, you put your bag on the scale, it weighs it, prints out a tag, you affix it, and it takes it without anyone being there. The minimum wage should be a place for people to begin to work as kids in school. Raise the wage combined with Obamacare, and you will eliminate low entry jobs. Starbucks pays $9 and the benefits cost more than the coffee they buy. These are not career jobs.

If you want to raise the living standards, lets eliminate payroll taxes. Every $1 increase paid by a company only results in another $1 to comply with regulations, match Social Security taxes, and the worker never sees that money anyhow. Let the people retain their income and you will see people want to work to get ahead. Currently, we borrow from the poor, pay them no interest, and then hand them back their own money, all to pretend socialism works.

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August 29th, 2015

Posted In: Armstrong Economics

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