Tax cuts spurring growth?
Received Nov. 20
Republicans have long demanded fiscal discipline, at least when not in power. However, their new tax plan calls for adding an additional $1.5 trillion to the debt over the course of the next 10 years. All of this is being done so that corporations and wealthy individuals will receive huge tax cuts. The tax plan is being touted as a “middle class tax cut” but the provisions that do this are designed to phase out after a few years. Objective analyses show that many Americans would be immediate losers and many more would be losers over time.
There is always the argument that tax cuts such as these will inevitably spur growth that will offset the revenue losses due to large increases in tax revenues. That assumption has a long history of being erroneous (e.g., Kansas).
Down the road after the tax cuts have inevitably further inflated the national debt there will be more calls for fiscal discipline and the need for spending cuts. Of course, the cuts to spending will be on things like infrastructure, education, health care, and scientific research because, we’ll be told, we just can’t afford those things. How does a “win” for the party outweigh these best interests of the country and the majority of the people? If we keep repeating this tax-cut, spending-cut cycle eventually there will be no spending for any of those things that have made America great and the U.S. will be on the road to mediocrity.
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