I write to clearly delineate reasons why this is the most misinformed effort at Tax Reform ever attempted and why it is imperative that it fail. Every attempt at a particular economic strategy known as “trickle-down economics” or “voo-doo economics” or even “supply-side” economics has been met with resistance and has proven to fail to provide a boost to “all boats” as in “a rising tide lifts all boats”.
The supply-side drivel has been a bane to America for approaching forty years as Ronald Reagan asserted a policy of providing tax and financial incentives for the 1% while removing regulation for corporations. These policies resulted in record budget deficits that have not been equaled since. The U.S. Treasury Department records reveal that the deficit rose 1.8 trillion dollars as a result of his policies.
The GOP’s 2017 strategy pales in comparison, offering to slash taxes for the 1%, rescind the penalty for opting out of the Affordable Care Act and slash taxes for corporations. I do see the merit in reducing the corporate tax load as a measure that will hopefully result in fewer corporate headquarters leaving the continental U.S.
In November of 2017, the unfortunate but true end result was readily apparent when corporate spokesmen were asked if they would re-invest in capital expenditures and more jobs. The overwhelming response was no. [http://nymag.com/daily/intelligencer/2017/11/corporate-tax-cuts-wont-spur-ceos-to-invest-say-ceos.html].
Senator Sherrod Brown of Ohio put it this way: “Senate leaders have tried for months to sell this as a “middle-class plan.” But they can’t pretend anymore. They know what the American people know: These tax breaks aren’t going to workers, or to create new jobs, or to struggling Ohioans or Texans or Virginians. They’re going to corporate stockholders and executive bonuses.”
This is the kind of wrong-headed administration that is crushing the middle class and further increasing the divide between rich and poor in America. It must stop!!