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Unleash Prosperity Hotline — Weekend Edition
Issue #1242
04/11/2025 – 04/13/2025
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1) Hip, Hip, Hooray! House and Senate Have Finally Agreed on a Budget

It wasn't easy, but House and Senate Republicans finally unified and passed the same budget resolution. And they did it before the Easter Recess, just as Speaker Johnson said they would.
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Kudos, Mr. Speaker.

When the House comes back in two weeks we expect them to sprint through writing the Big Beautiful Reconciliation Bill, including Jason Smith's Ways & Means Committee producing a pro-growth tax title that cancels all of the impending tax hikes, restores full business expensing, and implements Trump's 2.0 tax cuts on tips and overtime.

Speed is of the essence, and President Trump's desired Memorial Day signing ceremony should still be the goal.
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2) But Will Republicans Raise Tax Rates to Their Highest Level in 40 Years?

One thing that could absolutely poison the reconciliation bill is a hike in the top income tax rate.

We mentioned in a HOTLINE in recent days the political and economic calamity when then-President George HW Bush raised tax rates and the Republican Party imploded as voters rightly revolted.

Since then, Republicans have not stuck their finger back in that electric socket. Republicans (and Democrats) have not allowed the statutory highest income tax rate go above 40% since 1985.

But now, we are hearing Republicans in Congress and some economic advisers in the White House wanting to raise the highest rate to 40% (or even slightly higher) to punish the rich. Apparently they've been attending Bernie Sanders rallies.

If this were to happen, Republicans would be raising the income tax rate to higher than Bill Clinton, Barack Obama and Joe Biden.

Really? Would they really intentionally do something that they know would hurt the economy? We thought only Joe Biden did that.

If they do, they deserve to get electrocuted by voters, and deserve it.
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3) The Government Spending Stimulus Hoax

Some economists are saying that cutting government spending right now will hurt the economy. That's one of the greatest and most enduring myths in American history: government spending helps stimulate economic growth.

Our friend and world renowned investor, Rob Arnott, and his Research Affiliates colleague, Alex Pickard, have examined stacks of data covering the past 40 years to find out whether John Maynard Keynes was right that government spending helps nations become more prosperous.

They gave us a peak at their forthcoming paper, which finds the opposite in most cases: "real per capita GDP in a nation is negatively associated with government spending."

They find statistically significant proof that once government spending exceeds 30% of GDP, the citizens get poorer. We are above 35% in the USA.

The takeaway: We've got a lot of cutting to do.
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4) Make Coal Great Again

There's been so much going on this week, that some of our alert readers scolded us for failing to mention the Trump Executive Orders that effectively ends the Biden war on coal.

These directives loosen restrictions on coal mining, leasing, and exports; allow older coal plants to continue operating; and challenge state-level climate policies that restrict coal use.

America is the Saudi Arabia of coal, with some 500 years of this valuable energy resource that helped build our country. The asset is worth at least $5 trillion according to the Department of Energy.

Coal was once a dirty resource that caused unhealthy air pollution. Today, America has the cleanest coal in the world.

Under Biden, coal plants were closed down and tens of thousands of miners were put out of work. (Biden said they could become computer coders. Sure!) Meanwhile, China has continued to build scores of high-polluting coal plants, even as they pretend to care about climate change.
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5) Cleaning Up Our Elections

It's already been a busy April for efforts to bolster election integrity in both Congress and the states.

Hip, Hip, Hooray! The House voted 220 to 208 on Thursday to require proof of citizenship in federal elections.
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Four Democrats joined every Republican in favor:

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The law would require states to obtain proof of citizenship from anyone registering to vote. For the first time, the federal government would provide states with access to all its databases so they can clean up their voter registration rolls and remove noncitizens.

There is ample evidence that noncitizens are voting in U.S. elections: A 2014 study by two Old Dominion University professors, based on survey data from the Cooperative Congressional Election Study, indicated that 6.4% of all non-citizens voted illegally in the 2008 presidential election, and 2.2% in the 2010 midterms. Their votes likely determined the outcome in several close races.

Meanwhile, several states are pursuing their own voter integrity measures. Last week, Kansas passed a law requiring absentee ballots arrive at election offices by the end of Election Day to be counted. Texas and Iowa moved closer to specifying how to require proof of citizenship to vote.

Congress should also pass a bill to bar any president from politicizing federal agencies to partner with outside groups for targeted "get out the vote" efforts that favor one party over another. This was done during the Biden administration.

Progressives continue to claim that any changes in election laws will disenfranchise voters and lower voter turnout. But the reason they never present any real evidence showing that is simple: as more voter ID laws and efforts to clean up voter rolls have been implemented, voter turnout actually goes up, not down. This is because people are more confident in the honesty of elections.
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6) These People Sure Know How To Invest

This is going viral on the internet, and we can’t verify whether it’s factual or not. So we put it down as humor, but it MAY be true!
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