New Income Tax Proposal is Dumb!

Howard Lutnick’s idea to axe income taxes for those under $150K? A disaster, says Markowski. With only 7% left paying taxes and warped incentives, it’s a populist gimmick—not a fix. He pushes for a flat or consumption tax instead. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact that we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
Yeah, this new uh new income tax proposal that was
tossed out there by Howard Lutnick is dumb. Yeah, it's dumb. Sorry, Trumpsters,
this makes no sense. And you can look on social media. Yeah, man,
look at that, all right, man, get them germercer. Yeah,
Trump's gonna Trump's gonna eliminate taxes on anybody making less

(00:37):
than one hundred and fifty dollars a year. What this is? Again?
Dumb first and foremost. Okay, let's let's take a look
at this. That would basically leave seven percent, seven percent

(00:58):
of US citizens would be paying income taxes seven percent.
Already already the top one percent of taxpayers pay forty
percent of all income taxes, so this again, we'll be
down to seven percent. The proposal as he has put

(01:19):
it out there, makes no sense. So if you make
one hundred and fifty one thousand dollars a year, all
of a sudden, you're going to be taxed at twenty
four percent, What is your incentive then of getting a raise.

(01:41):
You'd be decked below one hundred and fifty thousand dollars.
Making one hundred and fifty one thousand dollars or one
hundred and fifty five thousand dollars, you'd technically be making
less than you would if you made one hundred and
fifty thousand dollars. That's dumb. We've made fun of that
and these donut whole nonsense when it comes to federal
handouts and giveaways for years. This is a similar type

(02:06):
of a situation. Now, I don't know if they're going
to change it and they're going to say, hey, we're
gonna start taxing every dollar at twenty four percent above
one hundred and fifty thousand dollars. I don't know. But again,
this doesn't solve the damn tax code problem. All we

(02:26):
do is make it more and more complex, more and
more problematic. You either go into flat tax or you
go with a fair tax. Again, I'm going off on
my aggravation with the tax code in the past, not
simply because you know what I pay. Okay, I don't

(02:47):
run a cash business. I'm not a contractor. Okay, everything
I show, I don't cheat on my taxes. But let
me tell you something. Okay, certain businesses here in this country, Yeah,
you can most certainly figure out a way to be losing,

(03:10):
losing money every single year and not pay a damn thing.
I know this for a fact, and that's because our
tax code is ridiculous. You eliminate all of that. If
you're paying at the point of sale, you make it
a consumption tax. You eliminate the income tax. You go
to a consumption tax. No one can escape. Everyone has

(03:34):
to pay. You buy something, you pay. This is just
another damn populist gimmick, and quite frankly, you know how
our lutnux should be embarrassed. Embarrassing for crying out loud.
There's not even a serious proposal. He's just looking to
get the people going. When it comes to this seven percent,

(03:58):
you're gonna have a FEDA. Only seven percent of the
people here in this country are going to pay. Watchdog
on Wall Street dot Com