2017-11-30 / Letters

Debt options Congress is considering with ‘tax reform’ package

To the editor:

Two “tax reform” bills are pending in Congress. But, the cost of this “tax reform” is quite high — a $1.5 trillion increase in the national debt to be passed on to future generations.

Most economists agree that an increase in the national debt would stimulate the economy either by pumping funds into the private sector or by reducing taxes taken from the private sector. But should we rejoice that Republicans, after decades of insisting on fiscal restraint, are now committed to increasing the national debt?

How would the government use that $1.5 trillion in additional debt? Here are just some of the options both political parties have proposed.

• Reducing corporate tax rates could result in some investment and some additional employment. But it could also be used to boost stock prices and executive pay.

Reducing individual tax rates could result in consumers having a little more spending money. But it could also encourage higher earners to buy more stock or real estate without adding to economic growth.

• Repealing the estate tax would likely lead to higher stock and real estate prices as the already well-off buy high-end luxury goods and real estate.

• Rebuilding America’s infrastructure would increase employment, putting more money in consumers’ pockets. And, after that money had been spent, we would also have new roads and bridges.

• Providing health care for all would both increase employment and provide a healthier population.

• Forgiving student loan debt or providing free college tuition would enable the younger generations to buy homes and start raising families much sooner than they could now.

The question I have for our leaders of both parties: Will you make the right policy choices if you decide to increase our national debt by $1.5 trillion?

Jay S. Johnson
Jonathon Court

Return to top

Mr. Johnson, Republican will

Mr. Johnson, Republican will make the right choice for their donors, a tax cut to the rich. To hell with the rest of us!