Tax bill misses mark
To the Journal editor:
The tax bills that were just rushed through the U.S. House and Senate are a political stunt that feature false assumptions. They won’t expand the economy as advertised, but will expand our debt.
The whole pretext of these bills is that “trickle down economics” actually works. That is, give the corporations and the wealthy more disposable income and they will actually spend it into the economy and increase the velocity of money, the movement or exchange of dollars through our communities. Both old and recent economic history has demonstrated this to be a failed economic theory.
Corporations already have record amounts of cash on hand and can borrow money at, or near, zero interest rates for any business expansion, opening a new factory or hiring new people. They aren’t spending. Any windfall money from the lowered corporate tax rates will be used by corporations to buy back their own stock or increase dividends to shareholders.
Most of these benefits will go to the wealthiest 1 percent who have neither the numbers nor inclination to spend the economy into growth. This will be at the expense of the majority of taxpayers across America.
The real shame here is that $1.5 trillion is being wasted on a political stunt. Our Senators Stabenow and Peters understand this scam and wisely voted against it.
I urge all citizens in the First Congressional District to begin to realize what’s in this tax legislation and what it will mean for their bottom line.
Call U.S. Rep. Jack Bergman, R-Watersmeet, (202-225-4735) and tell him to vote to kill this tax legislation and that if he wants to spend $1.5 trillion of borrowed money to improve the economy, he should sponsor bipartisan legislation on infrastructure spending that will actual work for all of us.