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Elon Musk Says Trump Will Bring 'Temporary Hardship' For Americans (www.huffpost.com)

submitted 2 weeks ago by humanspiral@lemmy.ca to c/economics@lemmy.ml

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While Musk is referring to the magical $2T+ in budget cuts to US budget he will sail through magical congressional unanimity...

Hardship has to include the extreme difficulty in reindustrializing the US in an environment where labour is deported, and reciprocal tariffs means serving a local declining market where fewer people have money left over if they are overpaying for imported goods.

Recessions not only reduce tax revenue, they also are typically responded to by significant government investment to pull out of recession, and the US is nearly maxed out already.

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[–] davel@lemmy.ml 4 points 2 weeks ago

I don’t know of a reason to assume anyone will pay more federal income tax under Trump, and every reason to assume the bourgeoisie will pay less.

To the capitalist class, higher taxes on the working class is complicated.

First one must understand that your federal taxes pay for nothing because the federal government has infinite money.

Higher taxes on the working class means less profit for the capitalist class from working class consumers. It might mean the working class takes on more debt, which benefits the financial/banking industry. Higher spending by the government means more profit for the capitalist class, but higher taxes on the working class doesn’t necessarily result in higher government spending, because taxes aren’t how the government spends. All federal taxes do is delete money from the economy.