Why Raise Taxes on the Top 10% – Instead Support Job Creation with a Doable 10% 10-Year Consumer Tax Cut.

Why Raise Taxes on the Top 10% – Instead Support Job Creation with a Doable 10% 10-Year Consumer Tax Cut.

(ThyBlackMan.com) Sometimes life is not that difficult to figure out. Politicians from both political parties, Republicans and Democrats, along with their billionaire, and millionaire dollar donors, corporate sponsors, and professional political advisors make life economically difficult and downright tough for Americans, American workers, professional, blue collar, union, and working-class Americans, when they just don’t have to give the average American, such a hard time.

“To live and let live, with the least taxation for the most convenient services,” said Dean Minnich. That’s one great motto. Average American voters are not dunces. There are “some things we know,” regardless of what the statistics say, regardless of what politicians say, and regardless of what the main street media says, who for the most part echoes and promotes the message of the powerful; especially when it comes to the task of creating millions of needed Jobs, which is the #1 issue of Voters – Jobs and the economy. We know facts about what is going on in this economy, because we are actually living in the midst of events, circumstances, and the availability of useful statistical research at our fingertips, that show, and expose us to the TRUTH, when it comes to the economy.

So, Here is What We Know in Real Time:

We know we live in the largest “Consumer Driven Economy” in the world, not in terms of population but in terms of percentage. Consumer Spending drives this economy, as Consumer Spending or Consumption Spending is 68-70% of U.S. gross domestic product (GDP), per the Bureau of Economic Analysis (BEA). The Chinese by their own admission, state they have a 55% consumer driven economy, (not as high as the United States 70%) with a population of 1.4 billion people. Yet America is the #1 economy in the world, and it’s because of the United States high percentage rate of consumers spending money, or consumption spending.

Peng Sen, president of the China Society of Economic Reform, said in an article by Bloomberg News on 3/25/2025, “Authorities (the Chinese Communist party – the CCP) should make efforts to boost consumption, as a share of gross domestic product (GDP) to 70% by 2035 from about 55% currently.” Peng remarks add urgency to calls for China to adjust its growth model, as geopolitical tensions threaten to slow exports, and returns on investment diminish. The Chinese government has made boosting domestic demand, particularly consumption (consumer spending), “the top economic priority …,” although authorities didn’t put a number to that goal.” It cannot be stressed enough, the conclusion here, is the U.S. #1 economic rival sees consumer spending, or consumption spending, as a priority economically, while many policy makers in the United States Congress do not.

We know tax cuts matter; and when it comes to what group of U.S. consumers those tax cuts go to, matter even more. President Donald Trump’s tax cuts, the 2017 Tax Cut, and the One Big Beautiful Bill (OBBB) Tax Cut of 2025, benefitted billionaires, millionaires and corporations, similar to former president Reagan’s failed, and later withdrawn tax cut; the Economic Recovery Tax Act (ERTA) of 1981 (click on https://thyblackman.com/2026/01/03/can-president-trump-successfully-fix-the-economy-and-create-millions-of-jobs-while-reducing-inflation-in-2026/). However, the Covid 19 Recovery Tax Cuts were laser focused on generating consumer spending and were largely given to consumers.

The top 10% to 20% of consumers benefitted from Trump’s tax cut and now new statistics show, they are responsible for 40% of consumer spending, as the Covid 19 tax cut benefits to the bottom 70% to 80% expire. However, there is a difference, from other consumer groups, in how the top 20% spent and used President Trump’s tax cuts to generate wealth, and it is not conducive to creating the millions of Jobs the nation needs. Most of Trump’s tax cut money found its way to U.S. investment markets, as that money has done in the past, when it came to prior tax cuts, to billionaires, millionaires and corporations.

In fact, the top 1% own half of all corporate equities and mutual funds in the U.S., per data from the St Louis Federal Reserve and it is primarily due to huge tax cuts going to that group of consumers. When you look at the top 10% of Americans by wealth, ownership of the group rises to 90% of all stock markets holdings. Per the Federal Reserve, this number has not changed meaningfully over time, with the percentage fluctuating between 80% and 90% going back to the end of the 1980s.

By bringing these statistics to your attention, in no way suggest billionaires and millionaires are bad people for being wealthy, as most Americans, including many of you readers want wealth. Anger, however, should rest with President Trump because of how he sold the OBBB (One Big Beautiful Bill) to voters. Traditionally, tax cuts to billionaires, millionaires, and corporations have never ended with the creation of millions of Jobs, but that is how Mr. Trump sold “the OBBB” to American voters.

Here is what he said or was stated on the White House site on June 24^th , 2025, where the “One Big Beautiful Bill,” Trump’s tax cut proposal was promoted: “The One Big Beautiful Bill delivers for the American worker: The One Big Beautiful Bill delivers the largest tax cut for working-and middle-class Americans in history. Put simply President Trump’s One Big Beautiful Bill will unleash our economy and deliver a Blue-Collar Boom.”

Here is what we know, the Blue Collar Boom did not happen. Here is what did happen. We witnessed with our own eyes a rise in the most comprehensive unemployment rate, per the Bureau of Labor Statistics (BLS) economists, the U-6 category rate, increased to 8.4% in December, from September’s rate of 8.1%. The U-6 category rate is considered, by experts to be the real rate of unemployment, not Trump’s official rate, the U-3 category rate.

We know Mr. Trump underreports the nation’s unemployment rates. While we cannot lay the blame for starting the scheme of underreporting the nation’s unemployment rates, at the feet of President Trump; that belongs to former president Bill Clinton, former Secretary of Labor, Robert Reich and Democrats, but we can blame Mr. Trump, along with former presidents Bush, Obama, and Biden for promoting this distressingly unwise policy. Click on https://thyblackman.com/2024/08/18/kamala-harris-economic-policy-the-truth-behind-undercounting-unemployment-rates/ for more information about the TRUTH regarding our unemployment rates.

We know as a result of Covid 19, when tax cuts are awarded to consumers in the bottom 70%-80%, the goal of achieving Job creation in the millions is more efficient in terms of numbers and distribution. The bottom 70%-80% spend tax cuts differently, then the top 10%-20%. Job creation does not come from trickle-down revenue due to tax cuts to billionaires, millionaires and corporations. It comes from the bottom 70%-80% of consumers with disposable income to spend. When consumers in this group spend money, Job growth rises exponentially leading to an economy that lifts all boats, including the top 10%-20%, in the water at the same time.

Finish story here; Why Raise Taxes on the Top 10% – Instead Support Job Creation with a Doable 10% 10-Year Consumer Tax Cut.