The Republican tax cut was touted to provide much-needed relief to hard-working families and would pay for itself. The reduction in the corporate tax rate would encourage spending on factories, equipment and higher wages. Instead, corporations flush with cash are buying back $1 trillion of their own stock.
Steve Mnuchin, Secretary of the Treasury, made the preposterous claim that not only will the tax plan pay for itself, but it also will pay down the debt. In the current fiscal year, the federal government will spend $912 billion more than it collects in revenue. The Congressional Budget Office predicts a corporate tax revenue drop of 27 percent this year. At the same time, the government will spend nearly 5 percent more, due in large part to President Trump’s insistence on more defense spending.
In the tax-cut con, the sea of red ink created by enacting huge tax cuts for corporations and the wealthy begins with the hand wringing over the deficit. If the Republicans hold their majority in the mid-term elections, Social Security and Medicare are in danger. This has been the GOP’s budget strategy for decades; cut taxes, then bemoan the deficit and demand cuts in social spending.
Mickey Beary, Richland
Digital Access for only $0.99
For the most comprehensive local coverage, subscribe today.