Reading time – 2:55; Viewing time – 5:24 . . .
A couple of months ago I wrote about the concept of intolerables – that which is intolerable to you and you’d fight it to the death. It’s critically important for each of us to know our intolerables, because they bring sharp focus to our North Star. As motivational speaker Les Brown makes clear, “You have to know what you stand for, or you’ll fall for anything.”
Amazingly, trickle-down, “voodoo economics,” is once again being shoved up our noses, this time by President Trump with his new tax plan (have a look at the 1-page “plan” here). He tells us that he’ll boldly reduce the top corporate rate from 35% to a miserly 15%. Further, he assures us that there’s no need to end any special interest loopholes. That’s because our economy will have a veritable explosion of growth. And the growth will be such a win – you’ll be sick of winning! – and companies will make so much more money that even at the new reduced tax rate, tax collections by the government will stay as they are. His magical thinking plan will be revenue neutral! Note that that’s what Sam Brownback, governor of Kansas, promised Kansans 5 years ago. Instead, he’s driven his state into recession and borrowed from the state pension system just to stay afloat.
The best part of Trump’s plan, he tells us, is that the taxes saved will put so much extra cash into the tills of corporations that they will immediately start a hiring frenzy. JOBS! So many jobs you’ll be sick of jobs and there will be so much joy that CEOs and marketing executives and janitors will skip and sing merrily in the streets, hand in brotherly hand. There’s just one thing: reduced taxes don’t create jobs. Increased demand is what creates jobs and Trump’s plan won’t increase demand. I guess we can forget about the singing and dancing in the streets.
In order to get we rubes to go along with his cockamamie plan he’s going to buy us off by slightly reducing and simplifying our personal taxes. Of course, those tax reductions will apply to Trump, too, but with lots more digits to the left of the decimal point for him than for you. In fact, applying his new scheme to the one Trump tax return we’ve seen would put over $30 MILLION into Trump’s pocket in that one year alone. It’s a zombie tax plan, according to Forbes. Trump figures you won’t notice his self-aggrandizement because he thinks you’re dumb enough to be happy with a couple more bucks in your jeans.
George W. Bush pulled that same “buying your support” crap by sending you just a few hundred bucks as he put billions into the pockets of billionaires with his first tax cut. He, too, told us the government revenue shortfall would be made up through economic expansion and the extra taxes that growth would generate. How’d that work out for us? Mmmm . . . not so well.
Bush even had the gall to pull that tax reduction trick a second time, even though we were at war and we were spending money like a drunken politician. He’s the first president in our history to take us to war and reduce taxes at the same time, instead of raising taxes to cover the cost of his war. We’ll be paying for his fiscal stupidity for a hundred years.
Trump wants to cut taxes, build national infrastructure, build the damn wall, cut taxes (yes, I know I already said that), rattle sabres at North Korea, fire $30 million worth of missiles at Syria, do who knows what with his bromance buddy Putin, eliminate regulations and, of course, cut taxes. And it’s all being planned by his Goldman Sachs buddies. What could possibly go wrong for middle class and poor Americans?
Ronald Reagan started this trickle-down idiocy in our government nearly 4 decades ago and it has never worked. Let me repeat: It has never worked. Benefits from lower taxes never trickled down. If you were poor, you became poorer. If you were middle class, you stagnated. All that money poured instead into the pockets of CEOs and shareholders who stuffed that cash into their investment portfolios. All the job growth we experienced over the years can be attributed to other factors, like the technology boom of the 1990s and the stimulus program of 2009, neither of which was a trickle down gimmick.
I told you in that earlier post that one of my intolerables is lying, like Paul Ryan telling us that his plans for Social Security and Medicare won’t privatize those programs – except that’s exactly what his plans would do. Trump is now telling the same lie to us that Reagan and the rest of the free market radicals have lied to us about since 1980.
Is that intolerable? We have to know, or we’ll fall for it again. Are we that dumb?
Both Mark Twain and Benjamin Disraeli liked to say, “There are three kinds of lies: lies, damned lies, and statistics.” How would you categorize trickle-down economics? How would you categorize nearly anything Donald Trump says?
In other news
Big doings in Elgin, IL next Sunday. Come join us as our presenters give us the inside skinny on healthcare, the Canadian pipeline planned to go through Illinois and Money, Politics and Democracy: You Aren’t Getting What You Want. The sessions are free, open to the public and offer you an opportunity to learn without any of the all-too-common Washington spin. Join us.
Ed. note: There is much in America that needs fixing and we are on a path to continually fail to make things better. It is my goal to make a difference – perhaps to be a catalyst for things to get better. That is the reason for these posts. To accomplish the goal requires reaching many thousands of people and a robust dialogue.
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Copyright 2019 by Jack Altschuler
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