Tax cut??? Ha!

By George Miller (originally published 9-29-17- needed re-airing and still seems applicable with only minor changes)

 

My friends are shocked to hear that I do NOT favor a tax cut right now. You may ask why, or maybe you don’t give a #*@)!. But I’ll tell you anyway: A tax cut without spending cuts is insanity. Bush tried it, wiped out the (on paper) surplus and gifted us with a trillion dollar deficit in his final year in office.

Right now, Congress/Trump are increasing defense spending by $80 billion, maintaining ruinous Obamacare, Medicare and Social Security spending, running up even larger cash deficits and stunning unfunded liabilities- and more. Didn’t they also just add billions more FEMA spending, too? I learn at our local city council meetings that millions in federal grants (mostly unconstitutional) are still flowing in, largely unchecked.

Also, I don’t believe that the proposed cuts will result sufficient additional tax revenues due to increased economic activity to offset the cuts for quite a while. It takes time for tax cuts to impact business decisions and cascade through the economy.

Some are incensed about “tax cuts for the rich.” But the “rich” already pay the lion’s share of discretionary, non-entitlement spending, so I have no problem billing them less if spending cuts are also made. Some provide major incentives for investment and repatriation of foreign earnings.

My own taxes might actually increase under the Trump plan, since I’m retired and the lowest bracket would increase 20%, from 10 to 12%, while state income tax, mortgage and some other deductions would be eliminated or cut (CA has one of the highest tax rates in the nation). In fact many deductions and loopholes would be eliminated, so it’s not all about cuts.

It is clear to me that most Congress critters are de facto Socialists, regardless of silly party labels.

Until out-of-control spending is seriously addressed, we run the increasing risk of insolvency and potential future hyperinflation. It would be irresponsible to do otherwise.

 

SOME RECENT READING:

http://www.rollcall.com/news/politics/hold-house-gop-tax-bill-keeps-39-6-rate-for-millionaires-cuts-corporate-rate-to-20

https://www.cnbc.com/2017/11/02/house-republicans-unveil-tax-reform-plan.html

https://www.washingtonpost.com/news/wonk/wp/2017/11/02/winners-and-losers-in-the-gop-tax-plan


George Miller is Publisher/Co-Founder of CitizensJournal.us and a “retired” operations management consultant residing in Oxnard.


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6 Responses to Tax cut??? Ha!

  1. Anthony van Leeuwen November 3, 2017 at 4:07 pm

    On the Mark Levin Show, he had some CPAs on who said the tax cut is actually a tax increase. The fact that state and local income taxes would no longer be deductible, nor would medical costs, the average middle class will end up paying more. If this is true, then we do not need the tax cut.

    It would be smarter to lower the corporate and business tax rates, and lower the tax on money earned overseeas (where taxes are also paid) when the money is repatriated.

    If medical costs are no longer deductible, then many people would more than likely avoid paying medical insurance, since it will be even more unaffordable.

    Time to ask lots of questions about the new tax cut plan.

    Reply
  2. Raymond November 3, 2017 at 2:08 pm

    taxpayers to NOT need a tax cut. They need a salary raise. Corporate America has the $s(in over seas accounts) to do it and have not use those trillions to give the American workers salary raise.

    Reply
  3. End the Fed November 2, 2017 at 11:19 pm

    That is not the way a debt based system works. Debt must increase or the system crashes. You cannot reduce the debt or the system crashes. You cannot have a balanced budget or the system crashes. Trump will have to increase the (on book debt) of 23T to 30 or 40T just to keep the con game running.

    Taxes are completely pointless (except as a control mechanism) as they can inflate any money into existence.

    Watch Mike Maloney’s Hidden Secrets of Money for simple explanation on how money is created and circulates.

    Reply
    • William Hicks November 3, 2017 at 8:44 am

      What happens when all the tax receipts are only paying the intrust on the debt? Is that not a Greek style national bankruptcy?

      Removing agencies like 1) The Department of Energy that has failed to keep energy costs down, and 2) The Federal Department of Education that has failed to educate, would be a step in the right direction in reducing the cost of government.

      Reply

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