Tax cut??? Ha!

By George Miller

 

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 large 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.

My own taxes would 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 and some other deductions would be eliminated (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.

 


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


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