The Republican/Trump “tax reform” law gives permanent tax-cuts to corporations and investors but temporary tax cuts to middle-class workers – classic GOP “trickle-down” ideology. Proponents say this will shower higher wages and jobs on workers, but historically it has done neither – witness the disastrous “Kansas Experiment.”
Economists say consumer spending drives 70 percent of the economy. Trickle-down theory says capital spending by businesses – fueled by corporate/investor tax-cuts – expand the economy. But businesses expand only when consumer demand for goods and services require it; not in response to corporate tax-cuts. Businesses only invest in new equipment and employees following adequate consumer spending, which is driven mainly by the middle-class – not the 1 percent. Yet, it is the 1 percent who will permanently receive 83 percent of the Republican tax cuts by 2027 (when middle-class taxes will likely revert to the higher rates).
So where are the Democrats? Despite Republicans bashing government, you hardly hear from Democrats. Where is a bold plan addressing income inequality, stagnant wages and lost jobs caused by failed trickle-down and job-outsourcing policies? Instead, Democrats allow Republicans to frame and dominate the debate about tax-cuts and economic growth.
Democrats have created a vacuum ... filled by Donald Trump.
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Steve Bantly, Merced