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Unleash Prosperity Hotline
Issue #1238
04/07/2025
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1) Higher Tariffs MUST Be Offset with Income Tax Cuts

We know that our readers have very different opinions about Trump's tariffs.

But what is an unavoidable reality is that tariffs are taxes and what is being imposed are tariff rates that are higher than any time in the last century.
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It is also undeniable that the cost of these tariffs are being capitalized into financial valuations - so far to the tune of roughly $8 trillion. Those losses are expected to rise by another $1 trillion today.

DJT needs a way out, and that's what we're here for...
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2) How to Reverse the Slide

Here's our advice for the White House to restore investor confidence and push stock values back up:
* Announce that every penny raised from tariff will be offset with pro-growth income/payroll tax cuts.
* Tariff revenues should be a major "pay for" in extending and expanding the tax cuts. If we were to raise, say $500 billion from tariffs, that would pay for indexing cap gains tax, the 15% made in America business tax, and a reduction in the payroll tax.
* 15% Flat Tax on Everything. Steve Forbes and Steve Moore advised in the WSJ last month that Trump should announce a bold new "15% Plan." 15% tariff. 15% personal income tax, 15 corp tax, 15% cap gains, dividends, death tax, etc.

All very pro-growth.
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3) And Get the Tax Bill on Trump's Desk This Week

We are in the midst of an economic emergency. The Senate this past weekend passed their version of the budget resolution that would unlock the tax bill. Trump, Speaker Johnson, and Senate Majority Leader Thune need to hammer out any remaining small differences and pass a tax bill that makes the Trump tax cuts permanent.

IMMEDIATELY. Use the current policy baseline so there is no "cost."

JUST DO IT! It's your patriotic duty.

By the way, here is the vote on the Senate budget. Every Democratic senator voted for a $4 trillion tax increase on January 1.
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4) The Wall Street Versus Main Street Canard

There are so many preposterous arguments made by the NatCons (National “Conservatives”) who helped engineer this stock market crash, that we hardly know where to start. But we are going to dismantle their arguments, because we believe they are a real threat to the freedom and prosperity agenda - as recent events have shown.

The NatCons say that Wall Street gains come at the expense of America's middle-class families. They sound like Bernie Sanders.

This is an economically illiterate argument because without business profits, there are no jobs and no wage gains.

But more importantly, a record number of American workers are stock owners - directly or through pension funds. The chart below shows that 6 of 10 American households are now stock owners - and that's almost double the percentage from the 1980s.

That percentage would be closer to 90%, if we would allow American workers to divert their social security taxes to 401k-type personal accounts.
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5) Quote of the Day

Speaking of economic illiteracy, some House Republicans want to raise the income tax rate from 37% to 40%. The best response to this comes from our favorite billionaire these days, Elon Musk:

"It does not make sense to take the job of capital allocation away from people who have demonstrated great skill in capital allocation and give it to, you know, an entity that has demonstrated very poor skill in capital allocation, which is the government. I mean, if you think of the government essentially as a corporation in the limit, the government is simply the biggest corporation with the monopoly on violence and where you have no recourse. So how much money do you want to give that entity?"
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6) How Else Would Democrats Fund Their Campaigns?

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