Trump tax plan would make rich more wealthy, while driving up national debt
The Trump tax plan is the biggest fleece job in history. The CBO says it will increase the deficits about $1.5 trillion. But it’s without any offsetting benefits for you or me! Let me explain.
When I was a young man the Republican Party focused on cost, good management, and damage to the deficit. But back then there was also a far right extremist group funded by the Koch family called the “John Birch Society.” Taxes, government, one world government (whatever that is) and fluoride for starters were all communist plots. It even pushed the notion that President Eisenhower was a “traitor” and that both his Presidency and, later, the Vietnam War were part of a “communist conspiracy to undermine the United States”.
Over the years the Koch family money among others swung away from the Birchers and into Republican coffers. Blind adherence to some of the Bircher’s tenants followed the money. The test regarding taxes came when President Reagan cut taxes.
The US floated extra debt due to the cuts but investment boot-strapped the US (and the World) out of the then economic doldrums we had settled into after Vietnam. Those tax cuts went into investment and not people’s pockets!
But unfortunately people have forgotten that at that time our tax code made it profitable to invest the tax savings into capital investment – into jobs and industries which Congress believed would either promote jobs or promote the long-term national interest. In fact, those tax cuts went into investment and not people’s pockets! It’s an important lesson.
Things are different now. Money from tax cuts has not been directed into investment since Reagan and not one tax cut has worked since then. Some economists think that the Reagan cuts were a one off in that the stimulus outweighed the harm to the deficit. What we know it that investment is what fuels job growth and wages.
Tax cuts at the national level without changes in program management only ends up pushing costs onto municipalities which in turn have to raise property taxes to cover the shortfall. Tax cuts by themselves do not make government more efficient. But tax cuts make those who invest in financial instruments richer.
Currently corporate American admits that these tax cuts will not result in greater investment. Why should they when the money they do not put into investments will increase their stocks trading price and go into their personal investment portfolios and stock incentive programs.
This proposed tax cut comes at a time when our nation’s deficit is currently projected to hit 100% of the entire country’s annual income in just a few years. That is where faltering Italy is now and not far behind bankrupt Greece.
When elected officials, including our own Representative Collins, say they “all” will be “out” if the cut does not go through, the response should be “That is price you pay for putting big business and big donors interest over those who you represent.” This swindle is simply “A Bridge Too Far.”
Conrad F. Cropsey