You can’t cut your way to prosperity.
With the stock market, corporate profits and CEO compensation at record levels, perhaps someone can explain why Republicans are rushing to bestow tax cuts on corporations and the top 1 percent, who don’t need them.
The argument that tax cuts are needed to create jobs doesn’t stand up to scrutiny. Unemployment is at a 17 year low and corporations have trillions of dollars in untapped capital sitting on the sidelines. The key to growing the economy lies not in tax cuts but in strategic investments in education, infrastructure and basic research, along with increasing the wages of workers to create the demand that provides incentive for employers to hire more workers.
An average of 1,240,000 more jobs were created per year under President Jimmy Carter, with a top marginal tax rate of 70 percent, than were created under Ronald Reagan and George H. W. Bush when the tax rate was dropped to a low of 28 percent.
While the official corporate tax rate may seem high, relative to some other developed nations, the effective tax rate actually paid by U.S. corporations is much lower.
Some of the world’s largest and most profitable corporations, including General Electric, Boeing, Wells Fargo and Verizon paid no federal income tax from 2008-2012, despite posting billions in profits. General Electric not only paid no federal income taxes but got a huge refund.
It’s time for Donald Trump, Paul Ryan and Republicans in Congress to come clean and admit that their “tax reform” is really a tax heist that would make Bonnie and Clyde proud.
City of Fitchburg