The Purpose of Tax

As one of America’s most hated procedures it is time to question the real purpose of personal and corporate income taxes. Congress, with bipartisan support, has passed a variety of corporate tax breaks over the years meant to foster innovation, trigger domestic investment and boost hiring.  Recent Republican legislation also cut personal income tax rates based upon claims going back to the Reagan administration that reducing tax rates for individuals will result in increased tax revenue for the government.  In both cases, the justification for tax reduction is based totally upon myth.  In both cases, corporate and personal tax reductions none of the promised results of the tax cuts have become true.  Corporations did not use the tax cuts to increase jobs or employee wages and individual tax cuts failed to “trickle down” to improve the economic lives of those on the lower ladders of the economy.  Tax cuts accomplished a single objective which was reducing the tax obligation of those who could most afford to pay taxes.  A major side effect of tax reductions has been a massive increase in debt and deficits and pushing the costs of today’s government onto tomorrow’s citizens.  Republicans have made tax reduction the cornerstone of political platforms to the extent they are totally lacking policies that might actually solve the country’s problems.  The wealthiest Americans have managed to convince a majority of voters they would benefit from tax cuts in spite of the reality that over 80% of the savings from tax cuts only went to less than 10% of taxpayers.  The same is true for corporate taxes.  Over 55 of the wealthiest corporations paid no income taxes on record profits in 2019 but have successfully convinced the small “mom and pop” incorporated businesses of the benefits of tax cuts.  It is time to eliminate the bullshit surrounding tax cuts and craft legislation with but one purpose...raise the necessary money to adequately fund the government.  In the history of America, tax cuts have never resulted in increased hiring or have actually boosted investment.  It is past time to recognize these justifications are unproven myths and the actual results proven that to be the case.