Tax scheme hurts nation
Every sentence of Jay Ambrose’s Dec. 26. trickle-down screed, “Tax reform blessing for all,” is tendentious and inaccurate.
Economic growth and jobs are created by demand, not by lowering taxes on the rich and corporations, especially when billions in capital is parked on the sidelines. They don’t need cash, borrowed from our future. They need buyers and customers.
Henry Ford knew demand-side economics works. He transferred capital to workers via a higher-than-average wage with which they bought Fords — and the company grew.
Trickle-down economics fantasizes that transferring hard-earned capital of current and future taxpayers to the rich will magically create jobs. Even corporate leaders tell us the portion invested in American companies will be used for stock buy-backs to raise stock prices, not to hire workers.
Taxes don’t drive corporations overseas. They move for labor costs, dearth of skilled domestic employees, and because we won’t penalize them for offshoring American jobs. Corporations have no loyalty, no patriotism. Their only allegiance is to maximized profits.
After shrieking about fiscal responsibility for decades, Republicans now engorge the national debt $1.5 trillion to give whopping tax breaks to corporations and the rich, and hope the thin refund to the middle and lower classes will be enough to keep them in office.
This GOP giveaway, rushed through Congress to give our deeply unpopular Huckster-in-Chief his only “accomplishment” of a year in office, takes the country in exactly the wrong direction. Guaranteed is deeper debt, greater income inequality and reduced services. Economic benefit for some is a long-shot, maybe.
Next step is the party of the rich maxes out our credit card, now they’re claiming we can’t afford Social Security and Medicare.