2017-12-21 / Letters

Don’t cut taxes for rich; spend on social programs

To the editor:

Does giving tax breaks to wealthy people result in the creation of more jobs? The theory is that if the well off had more money, or could keep more of what they make, they’d open new businesses or expand existing ones. That’s the nub of Republican “trickle down” economics.

Unfortunately, it doesn’t work that way. First, there’s no shortage of capital among the wealthy. The richest one percent of Americans own about 40 percent of all the assets in America. The wealthiest 20 percent own about 88 percent of the wealth. How much money do they need?

Second, interest rates are low, making business loans affordable.

And third, corporations are making record profits. If anything is slowing economic growth, it isn’t that the wealthy don’t have enough money to invest.

The real driver of economic growth — the ultimate job creator — is demand. If enough folks with money in their pockets want to buy shoes or TVs or refrigerators or whatever, business people or entrepreneurs will start or expand businesses to meet the demand. That’s what fuels business and creates jobs. The rich don’t need another tax cut, let alone the $1.5 trillion budget buster giveaway that the GOP has cooked up. That money could be better spent on things like beginning to pay down the debt, strengthening the ACA, or updating our infrastructure, which would directly create thousands of jobs in the construction industry and serve as a major stimulus to the economy. Instead, the Republican plan is to make up the $1.5 trillion shortfall by cutting Medicare, Social Security, Medicaid, and other programs that aid the poor, the sick, and the elderly. That isn’t tax reform; it’s class warfare in reverse.

Tom Gutowski
Lakeview Rd
Elmwood Township

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Dear Jimm1227: First, this

Dear Jimm1227: First, this link may help. http://www.factandmyth.com/taxes/tax-decreases-do-not-increase-revenue. Second, you'd be well served to cut the snark. Comporting yourself like you know the truth and most other people are idiots convinces no one of anything, save possibly that you lack manners.

OMG, Why can't people

OMG, Why can't people understand. This is NOT a tax cut. It is a Tax Rate Cut. It is expected that treasury coffers will get MORE REVENUE, not less. It is an economic principle at work. It was proven during Kennedy's tax RATE cuts and Reagan's. As a result of the rate cuts income tax revenue soared. NOW, you will counter with "But the deficit when UP in the Reagan years. PLEASE, there are TWO sides to the bottom line. Revenue IN and Expenses Out. They are mutually exclusive. When you SPEND the windfall from, and more, from the Tax Revenue Increase, your get more deficit. Now, go back to watching CNN