LETTER TO THE EDITOR: Tax bill jeopardizes our economic future
The economic future of average Americans is in jeopardy, but there is still time for action. Republican congressional leaders are frantically pushing an irresponsible tax bill forward. They are being whipped on by the billionaire in the White House. Their sense of urgency is heightened by threats from their plutocrat paymasters. The Koch brothers, for instance, will cut off the "Super PAC" support they provide Republican incumbents in Washington unless they get a Christmas "bonus" in the form of huge corporate tax cut.
Paul Ryan and Mitch McConnell tout the Republican bill as "middle-class tax relief." It is nothing of the sort. The top 1 percent will see five- and six-figure reductions in their income tax. But many middle-class Minnesotans will see an actual increase in their federal income tax. One reason: the elimination of the deduction for state and local taxes.
Here is what the Republican tax proposal will not do:
- It will not result in the incredible growth in the domestic economy needed to offset revenue losses due to rate cuts. The Republican growth "forecast” based on "dynamic scoring" is wishful thinking. The nonpartisan Congressional Budget Office estimates that the federal deficit will increase $1.4 trillion over the next decade due to the proposed rate cuts.
- It will not result in reinvestment of corporate tax savings in America's unemployed and underemployed. The 15 percent drop in the corporate tax rate certainly will not result in overdue wage and salary increases.
Here is what the Republican tax proposal will do:
- The federal deficit will explode. Drastic declines in tax revenues will make repairing our nation's infrastructure impossible, unless Americans choose to go even deeper in debt to China. Those same revenue losses will trigger automatic cuts to vital programs for seniors, school children and farmers.
- The corporate tax cut windfall will finance stock "buybacks," increasing the economic dominance of a privileged few with no public accountability. Instead of reinvesting tax savings in "human capital," corporate CEOs will bankroll robotics and other "smart” technologies to squeeze American workers out of domestic industries.
- Meanwhile, the household incomes of average American families will remain stagnant or fall.
All this because a few billionaires are tightening the collars of their Congressional lapdogs.
What can an average American do? Email these responsible conservatives and urge them to vote "no" on the Republican tax bill: Sens. Susan Collins, Bob Corker, Jeff Flake, Ron Johnson and John McCain.