Under the Republican tax bill, the corporate income tax rate would be reduced from 35% to 21%. The highest personal income tax rate would go from 39% down to 37%. It would henceforth kick in when taxable income reaches $500,000, an increase over the present amount. And the federal estate tax would exempt estates of up to $22 million, up from $11 million. Favored treatment of hedge fund operators’ earnings remains.
Whatever else, the GOP would lighten the responsibility of the richest of the rich and large corporations to support our nation. And it would borrow the funds to do so, increasing the national debt by $1 trillion+. Deficit spending involves an obligation to make future payments. As our children inherit the future, the Republicans are saddling them with the burden of paying for this largess to the opulent.
Republicans argue that the monied interests will use their windfall to expand their business and create jobs. But big corporations are making money and awash with cash. If they want to expand, they already have the wherewithal to do so. Economists generally do not accept the GOP’s claims. The mythical nature of these assertions was demonstrated at the mid-November meeting of the Wall Street Journal’s meeting of it’s Council of CEOs, some 40 to 50 strong, where Trump’s CEA Chairman, Gary Cohn, was being interviewed. To test the theory, the moderator asked for a show of hands of those who planned to use any funds the tax bill provides for expansion. Only a few hands went up, prompting Cohn to query: “why aren’t all hands raised ?” Apparently realizing the uncomfortable direction the discussion was heading, he quickly changed the subject.
Long held, unwavering certitude that budget deficits and living on borrowed money are evil, shows that the GOP’s arguments in support of this proposal to blow a hole in the budget lacks even the credibility that they believe it.
If you are going into debt to give away the store, why not give it to those who need it ?
Are Medicare and SS next ?
I am a lifelong, but now disgusted, Republican.
[contact-form][contact-field label=”Name” type=”name” required=”true” /][contact-field label=”Email” type=”email” required=”true” /][contact-field label=”Website” type=”url” /][contact-field label=”Message” type=”textarea” /][/contact-form]