The Republican World of Taxes

Once again it is necessary to refer to a line of dialogue from the TV Program, Seinfeld, when the character, George Costanza tried to convince the character of Jerry that he spoke the truth.  George’s remark, “it is not a lie if you believe it”, could actuaqlly be applied to all Republican (and Trump) fiscal policies.  For years the republican argument used to try to justify tax cuts is the myth that the money saved by tax cuts would be used to grow the economy.  Corporate tax cuts are said to increase jobs and investments.  Personal tax cuts are promised by Republicans to “trickle down” providing economic benefit to those in the lower economic levels who do not receive the massive tax savings.  If the economy was based upon text books and theory the tax cuts might make sense but the economy is based upon reality and past experience.  Reality and past experience has shown Republican tax policy is totally full of shit.  Corporate tax savings in the past resulted not in creating jobs but in stock buy-back, increased stock dividends, and added to income inequality by massively increasing CEO and Executive compensation.  As for personal tax cuts or eliminating the “death” tax trickling down or benefitting those in the lower tax brackets one can only again say bullshit.  Evidence of past tax cuts for those at the top have no evidence to support their assertions.  In fact, evidence since the Reagan Tax cuts shows just the opposite; increased individual investments by the recipients of multi-thousand dollar tax savings and even more income inequality.  While there are semi-legitimate arguments that those who pay the most in taxes should receive the largest tax savings the real question should be how the tax savings will be used.  If the tax savings are used to increase the debt as they have been in the past this is just pushing today’s cost of government into the future.  If, (as the due of the Trump Administration) tax savings come about by cutting government services and programs you can be certain that those citizens with the least political clout will lose necessary services while those at the top of the earning ladders benefit from the cuts.  In a nut shell, taxes should be limited to funding the government.  A tax system should be progressive where those with the least pay the least and those with the most pay the most. Finally, every dollar of earnings should be subject to tax with no differentiation between the form of earnings or income.  Last, every individual should have each and every dollar subject to tax without any special exemptions, exclusions, or deductions that again, allow those with political clout to escape taxes on every dollar received, from first to last. Any time you hear proposals to cut taxes ask yourself to what extent does the person proposing the tax cuts benefit compared to someone in the lower or bottom tax brackets?