2017-10-12 / Letters

Tax cuts should all go toward the middle class

To the editor:

Once again American’s are being asked to buy into the myth that massive tax cuts for the wealthy and corporations will somehow create growth resulting in jobs for Americans. This supply side, trickle down economic myth has never been true. It wasn’t true with the Reagan Tax Cuts of the early 80’s or with the George W Bush tax cuts of the early 2000.

Under basic economic principles investments will only be made when there is a recognized demand with an economic opportunity value greater than other possible or probable economic opportunities. The fastest and best way to create growth in the economy is to increase demand through a combination of tax cuts for the middle class and or infrastructure spending. Both of these methods increase household disposable incomes that consumers will want to spend thereby creating increased product demand. Corporations and entrepreneurs would then be incentivized to make the investments necessary to satisfy this increased demand. Today, corporations and individuals are sitting on trillions of dollars of cash because they don’t recognize an economic opportunity, demand, for products to invest in. Additionally, there is no guarantee that corporate and high income tax cuts would be directed to increased investment in and American growth.

Under the economic principle that investment will flow to the opportunity with the highest probable return, these tax cuts are just as likely to go to investments in low labor cost countries and not America first.

Charles N Godbout
S. Benzonia Trail

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Until fools figure out

Until fools figure out Republicans will not be happy until the 1 percent have ALL the money and keep electing them, nothing will change.