In an interview on Power & Politics, (David Paterson, Ontario’s representative in Washington) told host David Cochrane that the Canadians and Americans had a 90-minute meeting and the first half-hour was “a master class” from Lutnick in breaking down the U.S. position on tariffs.
The focus of the U.S. government is dealing with its yearly deficit in federal spending, Paterson said. According to the U.S. Treasury Department, the federal government ran a $1.83 trillion US deficit in the 2024 fiscal year.
There are three ways the U.S. government is working to cut down that deficit, Paterson added.
The first is a major budget resolution that calls for billions of dollars in tax cuts, and the second is slashing the size of government through Elon Musk’s Department of Government Efficiency. The third is tariffs, which are meant to be a new revenue source and attract investment into the United States.
The politicians don’t believe it, they just have to say it. The people voting for it see themselves as also getting a tax cut, which they want.
The funny thing is the tax cuts will only help those making over $360k/yr.
Oh is that actually the case this time around? I remember the 2017 cuts by revenue mostly affected the top whatever but the poor still had a tax cut, it’s just the amount of money saved was, by definition, significantly less than it was for the top earners.
The biggest factor in transfering wealth to the wealthy from those tax cuts was the cut in corporate tax rates as a boost to stock market, while keeping economy down enough for Fed to keep QE and low interest rates, further boosting stock market and bonds.