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Unleash Prosperity Hotline
Issue #1234
04/1/2025
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1) Defuse the Tax Increase Time Bomb

Let us know what you think of the latest ad from Unleash Prosperity Now (our (c) (4) partner organization) that is running in South Dakota (home of Senate Majority Leader John Thune) and nationally to underscore the urgency of Congress heading off the impending $3000 per family tax hike scheduled for January 1:
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Fox Business has a great write-up on the ad here:
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What's taking so long???

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2) Our Advice to Investors: Don’t Panic

The stock market has suffered some deep losses in the last month, and that’s mostly investor anxieties over Trump’s tariff threats and a slowdown in the economy from the Biden disaster. But we think there's a good reason to bet on Trumponomics.

Trump raised tariffs in his first term, and that didn’t prevent big stock market gains over those four years, thanks to his other pro-growth policies. Remember, back then as now, Trump’s critics predicted a stock market collapse. Instead, we had one of the great bull markets in all three major indices.

Past performance doesn’t always guarantee future returns. But often it does.
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3) Your Defense Dollars At Work

We got lots of responses - positive and negative - on our recent HOTLINE item ([link removed]) on the absurdity of Republicans allocating an extra $200 billion to the Pentagon. This would bring the defense budget to roughly $1 trillion a year - more than the next five biggest countries spend combined.

One of our favorite blogs by Matt Ridley called the Rational Optimist, exposed some of the mind-blowing waste ([link removed]) by our military industrial complex:

Today, just five companies capture over 80% of defense dollars: Lockheed Martin, Boeing, General Dynamics, Raytheon, and Northrop Grumman. Half of all defense contracts face zero competition. Zero competition means zero innovation.

One example: Lockheed's F-35 fighter jet. It was conceived before the first iPhone and still isn't fully operational yet. At $2 trillion in total lifecycle cost, it's the most expensive weapons program in history. And it's not an outlier. It now takes America 20+ years to develop a new military aircraft. China's loving this. And I would argue drones have already made the F-35 obsolete.
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Ridley also notes that DOD still uses 20th century "cost-plus pricing," so the more Raytheon and Boeing waste, the more taxpayer money they get. Sheer idiocy.

We are absolutely certain that DOGE could easily find $200 billion in waste and fraud in the Pentagon budget, and that’s how we should pay for any new military needs.
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4) Laffer Study: Auto Tariffs Could Raise Cost of New Car by $4,700

A big portion of auto tariffs will be paid for by American car buyers.

But Laffer also finds that if Trump stays true to the USMCA deal he cut in his first term, these higher costs would be cut by nearly half. So we hope this is what the Administration does.

You can read the full study here ([link removed]) :
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5) Red States Are Eager To Fix Education

Speaking of government incompetence, Washington has added no value to our schools after spending more than $1 trillion on K-12 education. Trump wisely wants to send the federal dollars directly back to the states and the red state governors are ready to go.

Iowa, which has been a leader in education reform under Governor Kim Reynolds, is asking for its federal aid to be consolidated into a single block grant with few federal strings attached. Reynolds says block grants would "give states the flexibility to stretch federal dollars further, rather than following the dictates of distant federal bureaucrats who don't have the same visibility into our state's needs."

Last week, Oklahoma submitted a similar request, asking for permission to use its grant money to allow parents private school and charter school options. As many as a dozen other right-leaning states are planning to submit their own requests ([link removed]) .

ALEC CEO (and UP board member) Lisa Nelson and ALEC's national chair Patricia Rucker, a West Virginia state senator, explain how this will expand school choice options for families:

What began in West Virginia is now a reality in 15 states, with more to come. Already this year, Tennessee, Idaho, and Wyoming have passed universal education freedom programs. Lawmakers in Texas, South Carolina, and New Hampshire are making a strong push for universal education freedom this year as well.

By the end of 2025, we may see six more states join this incredible movement to empower parents and ensure all American students can access the best learning environment for their needs...

Dramatically shrinking the Department of Education will make our education system more responsive, efficient, and tailored to the needs of American students.
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6) The New, New Democratic Party

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