Corporate tax cuts don’t help mainstream America
Republicans are pushing tax reform on the pretense of a pie in the sky revved up economy. Once again, mainstream America is pushed aside for the neoconservative/neoliberal economy.
To gain approval of colossal tax cuts for corporations, Republican are offering meager tax cuts for working Americans — compromising a democratic society where the infrastructure is collapsing, health care a total wreck, and education is being torn to shreds.
David A. Stockman, chief architect of President Ronald Reagan’s tax revolution, speaks to Reagan’s cuts in his book “Trumped!”
Reagan believed tax cuts would produce job growth, investments in plants, equipment, and technology. He believed that because of generous tax cuts, corporate wealth would reward Reagan’s America. According to Stockman, it didn’t happen.
Reagan’s tax cuts were a budget failure. And the loss of tax revenue was later diminished with tax increases on working Americans, not the wealthy.
Corporate lobbyists control politicians for billions of dollars in tax loopholes. Offshore money is held back for favorable legislative tax cuts. Years of tax manipulation should have created jobs. For years, wealthy corporations have profited off America’s lost tax revenue without producing good job growth.
Corporations changed their competitive position by merging or acquiring other businesses — leading to cutting jobs, closing plants, sending jobs overseas, and outsourcing for reduced costs. Many purchased back large amounts of their own stock, which is good for large stockholders and CEO’s. This is viewed by investors as good business. Which gives rise to the market wealth, but doesn’t produce jobs.
Bill Mahaffey
Bluffton
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This story was originally published November 23, 2017 at 6:00 AM with the headline "Corporate tax cuts don’t help mainstream America."