With economy booming, a tax cut is something we don’t need
Why a massive tax revision and reduction now? Tax deductions make economic sense when an economy is faltering, GDP falling and unemployment rising. Then the government should stimulate the private economy with tax reductions and increases in government spending. But at present our economy is doing well. The president himself keeps reminding us that under his administration the stock market is booming, the economy is growing and the unemployment rate is much lower than under most prior administrations. Indeed, driving through Western New York one sees numerous “hiring” signs in front of various establishments. Unfortunately there exists a shortage of job seekers with adequate industrial skills. It does not seem that the proposed Republican tax revision addresses that particular problem. So why the proposed tax revision that Paul Ryan calls the same as job creation?
What do we know about the proposed tax overhaul? It will reduce the corporate tax rate, it will increase the public debt and will benefit wealthy individuals. The effect on the middle class is less clear. They might be better off or worse, perhaps depending on which state they live.
The United States is a venerable democracy, but it is also a plutocracy, a term that American Heritage Dictionary defines as “a government or state in which the wealthy rule.” Their confirmation hearings suggest that, apart from the military men, the average net worth of President Trump’s Cabinet members is measured in millions, possibly billions of dollars.
How wealthy are the members of Congress? A few of them are known as millionaires and perhaps none is struggling to make ends meet. We, the voters, tend to elect to high offices mostly rich people. Small wonder that no legislation ever hurts the upper or capitalist class.