Trump Proposes a Cap on Credit Card Interest, So Does AOC and Bernie

Tyler Mitchell By Tyler Mitchell Sep24,2024 #finance

The competitive self-destruction of the Republican party as we once understood it is on full display today.

Trump wants to cap interest rates at 10 percent. Is this the Bernie Sanders campaign? Not Quite. It’s worse. Sanders and AOC proposed 15 percent.

It’s Temporary, Says Trump

Sadly, please consider Trump’s Price Controls on Credit Cards

“While working Americans catch up, we’re going to put a temporary cap on credit-card interest rates,” he told a rally last week in New York. “We’re going to cap it at around 10%. We can’t let them make 25 and 30%.”

Mr. Trump’s promised “temporary” 10% cap is lower than the rate that America’s two leading socialists proposed in 2019. A bill from Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez aimed to limit rates on consumer debt to 15%. “Modern-day loan sharks are no longer lurking on street corners breaking kneecaps,” Mr. Sanders said. “They wear three-piece suits and work on Wall Street.”

Why do Messrs. Trump and Sanders think it’s helpful to limit credit access and send folks to the pawn broker or leg breaker instead? Card companies might respond by raising fees, which is what happened to free checking after Democrats regulated debit swipe charges in 2010.

Price Gouging

Trump mocked Kamala Harris’ proposal for price gouging on food. “Comrade Kamala announced that she wants to institute socialist price controls. You saw that. Never worked before. Never ever worked.

Agreed. So what does Trump do but propose “socialist price controls“.

Minimum Wage War Heats Up

As Trump and Harris call to end tip taxes, a wider minimum wage war heats up

NBC notes Trump and Harris Call to End Tip Taxes

Vice President Kamala Harris’ call to scrap taxes on tips adds to the bipartisan support for a proposal her rival, former President Donald Trump, floated two months earlier. But the fate of the policy idea could hinge on broader disagreements on base pay regardless of who wins the election.

Unlike Trump, Harris proposed pairing the elimination of federal taxes on tip income with a bump in the national minimum wage, which has been $7.25 an hour since 2009.

“It’s heartening that everybody’s talking about it,” said Saru Jayaraman, president of the labor advocacy group One Fair Wage and director of the Food Labor Research Center at the University of California, Berkeley. But “it means nothing until we raise these workers’ wages and end the subminimum wage for tipped workers,” she said.

While support for higher base pay is more widespread among Democrats on Capitol Hill, some congressional Republicans, including Trump’s running mate, Sen. JD Vance of Ohio, co-sponsored a minimum wage hike last year.

What the Flying Bleep!?

  • Trump and Harris both propose huge hikes in Child Tax Credits. Trump will not say how he will pay for them.
  • Trump is competing with Harris on unions and taxes on tips.
  • Vance co-sponsored minimum wage hikes.
  • Trump, Biden, and Harris are in competitive bidding on tariff hikes, especially on China.
  • Trump proposes no tax on Social Security payments, again without saying how he will pay for that.
  • Democrats in New York desperately want to kill Trump’s caps on SALT (state and local income tax deductions). Trump says OK.

Seriously, What the Hell?

I expect Harris will quickly embrace Trump’s caps on interest rates.

Regarding Social Security, I expect Harris to adopt Trump’s idea but restrict it to low-income households to make it fair.

Of course, Trump will attack Harris for not having any ideas.

The best Harris response would be to say “Trump seldom has any good ideas, but when he does, I will gladly take them.”

That’s the home run response. It’s on deck.

Recall that a cap SALT deductions was a key provision that helped finance Trump’s last round of tax cuts. Now he is willing to do away with it, again without saying how he will pay for it. Mercy!

Lesson of the Day

You cannot (hmmm, I mean should not) attempt to compete with Democrats on free money handouts. They can always do more or make them look more fair.

Worse yet, Trump is proposing things that are massively inflationary unless he can specify how he will pay for these ideas. But he won’t.

And if you think tariffs will do it, you are only nuts. Besides, tariffs are a regressive tax on consumers.

I will cover tariff proposals separately.

Harris Declines to Comment on Her Changing EV Position

On September 21, I noted Harris Declines to Comment on Her Changing EV Position (Everything Else Too)

“My Values Have Not Changed”

Upon refection, I believe you can take that to the bank.

Her values have not changed. What has changed is Harris is pretending that the policies she supports have changed.

Trump talks too much about the wrong things. Harris won’t talk at all. It’s a very smart policy by Harris.

Why talk when your opponent keeps sticking his foot in his mouth.

Meanwhile, Trump is trying to outcompete Harris on free money proposals, and now price caps.

This is truly beyond pathetic.

Tyler Mitchell

By Tyler Mitchell

Tyler is a renowned journalist with years of experience covering a wide range of topics including politics, entertainment, and technology. His insightful analysis and compelling storytelling have made him a trusted source for breaking news and expert commentary.

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