- Joined
- Jan 17, 2012
- Messages
- 4,541
- Reaction score
- 49
The basic premise of the GOP tax plan is to decrease corporate and high income household tax rates and this will lead to revenue trickling down to the masses. They claim that reducing corporate income taxes will increase the number of employees hired by corporations. They also claim that lower corporate taxes will stimulate economic growth and compensate for the lower tax rates by increased economic activity. Both of these are highly debatable and studies have shown to be most likely false.
However, where the GOP tax plan truly comes short is in compassion for the masses of America. Most of the GOP profess Christian values. “Loving thy neighbor” and charity are two of the most fundamental teachings of Jesus Christ. Yet the fact that the GOP is claiming the tax cuts are for the middle class yet prioritizing corporations and the top few percent of earners shows neither compassion nor a feeling of neighborly love for the neighborhood we call the United States of America.
A true tax cut for the middle class would not have to debate increasing the child care credit. The mere fact that they debated removing exemptions for tuition and student loans is absurd and would harm America’s economic competitiveness in emerging fields. This proves that the GOP does not care about the vast majority of Americans. The insistence in removing the inheritance tax that literally only applies to the top 1% of asset holders along with the choice to reduce the top personal income tax from 39% to 37% in a new proposal is absolutely preposterous.
Giving a real tax break to the real middle class would be beneficial in a number of ways including increasing consumer spending, household saving and improving national morale. These are Americans with incomes ranging from $30,000 to $150,000.. This is a vast range. 150k does not seem middle class to many Americans but these people are not rich. The cost of living, housing expenses and price variations diminish the buying power of a salary in large cities.
A real tax cut for the middle class would allow normal people to engage in more consumer spending on both goods and services. Consumer spending is one of the backbones of America’s capitalist system. One would hope, to go along with higher net incomes, Americans would save more. Savings are the building block of capital structure in America. In addition, it would help vastly more Americans live a better life. Isn't Making America Great Again about improving the life of the majority of Americans, as opposed to a few?
This is in contrast to the proposed plan that gives the majority of cuts to corporations and high income households. Republicans claim that this will increase investment in both jobs and the American economy. However, we are in the age of automation. Dropping corporate taxes will lead to an increase in investment in capital over labour. This sounds Marxist but it is already true for many industries today such as automobiles, aerospace and semiconductors.
Additionally, most reinvestment will occur in the form of stock buybacks and dividends. While most Americans have a 401k or pension invested in the stock market, they are not the direct owner of such assets. They do not participate in voting and are not on the board of directors. Nothing in America’s past or present has shown that a financial but not economic increase in profits brings about additional hiring. Finally, a large amount of American equities are held by foreigners. So much of this reinvestment would end up overseas.
The fact that corporations are being considered for a tax break is ludicrous in one additional way. American corporations have record cash balances. Yet they use webs of offshore companies and dubious licensing agreements to avoid paying taxes on those proceeds in any country. They then lobby and complain that it is too expensive to bring the money back to the United States where they use infrastructure and court systems to conduct their business. By giving corporations this tax break we are rewarding them for gaming the system and keeping cash outside of America. And suddenly these corporations are going to waste money on employees when they can automate and increase their share prices?
This tax cut is terrible for the vast majority of Americans and there seems to be nothing we can do to stop it. That is not the American Way.
However, where the GOP tax plan truly comes short is in compassion for the masses of America. Most of the GOP profess Christian values. “Loving thy neighbor” and charity are two of the most fundamental teachings of Jesus Christ. Yet the fact that the GOP is claiming the tax cuts are for the middle class yet prioritizing corporations and the top few percent of earners shows neither compassion nor a feeling of neighborly love for the neighborhood we call the United States of America.
A true tax cut for the middle class would not have to debate increasing the child care credit. The mere fact that they debated removing exemptions for tuition and student loans is absurd and would harm America’s economic competitiveness in emerging fields. This proves that the GOP does not care about the vast majority of Americans. The insistence in removing the inheritance tax that literally only applies to the top 1% of asset holders along with the choice to reduce the top personal income tax from 39% to 37% in a new proposal is absolutely preposterous.
Giving a real tax break to the real middle class would be beneficial in a number of ways including increasing consumer spending, household saving and improving national morale. These are Americans with incomes ranging from $30,000 to $150,000.. This is a vast range. 150k does not seem middle class to many Americans but these people are not rich. The cost of living, housing expenses and price variations diminish the buying power of a salary in large cities.
A real tax cut for the middle class would allow normal people to engage in more consumer spending on both goods and services. Consumer spending is one of the backbones of America’s capitalist system. One would hope, to go along with higher net incomes, Americans would save more. Savings are the building block of capital structure in America. In addition, it would help vastly more Americans live a better life. Isn't Making America Great Again about improving the life of the majority of Americans, as opposed to a few?
This is in contrast to the proposed plan that gives the majority of cuts to corporations and high income households. Republicans claim that this will increase investment in both jobs and the American economy. However, we are in the age of automation. Dropping corporate taxes will lead to an increase in investment in capital over labour. This sounds Marxist but it is already true for many industries today such as automobiles, aerospace and semiconductors.
Additionally, most reinvestment will occur in the form of stock buybacks and dividends. While most Americans have a 401k or pension invested in the stock market, they are not the direct owner of such assets. They do not participate in voting and are not on the board of directors. Nothing in America’s past or present has shown that a financial but not economic increase in profits brings about additional hiring. Finally, a large amount of American equities are held by foreigners. So much of this reinvestment would end up overseas.
The fact that corporations are being considered for a tax break is ludicrous in one additional way. American corporations have record cash balances. Yet they use webs of offshore companies and dubious licensing agreements to avoid paying taxes on those proceeds in any country. They then lobby and complain that it is too expensive to bring the money back to the United States where they use infrastructure and court systems to conduct their business. By giving corporations this tax break we are rewarding them for gaming the system and keeping cash outside of America. And suddenly these corporations are going to waste money on employees when they can automate and increase their share prices?
This tax cut is terrible for the vast majority of Americans and there seems to be nothing we can do to stop it. That is not the American Way.