Paul Moore: An open letter to Rep. LaMalfa on the GOP tax plan
I must be kind of slow in understanding what I am seeing. My mind has been boggled by the debate over tax cuts and tax reform. Finally I realized that Republicans have a very different view of the wealthy and the lords of business than I do.
I have been skeptical about the motives and drives of the Republicans toward the wealthy, until I discovered that Republicans tend to believe that the wealthy are good-hearted, generous people with nothing but charitable thoughts for their employees and the national welfare. This belief by Republicans is the basis for their constantly repeating the mantra of tax cuts for the wealthy mean tax cuts for the middle class. There is the prevalent belief that as soon as the wealthy have more wealth, they will more than willingly share that wealth with the poor, they will increase the rate of pay for employees, and even more, they will create new jobs for people who are currently unemployed.
I must admit, though, that there are a couple of stones in this beautifully paved road.
First, of course, is that all of the evidence points away from job creation and increased pay when the wealthy get more wealth. Throughout history, the wealthy have used the new wealth for personal satisfaction. And corporations do not hire additional help until they need the help to produce goods. In the past, corporations have used increased profits to: 1) Increase the pay for executives; 2) Pay higher rates to stock holders; 3) Cut expenses by buying back their own stock so they do not have to pay dividends.
If it were important for corporations to bring back their money earned overseas, they could just do it. So they pay a bit more tax. But they make money until the tax rate hits 100 percent. Until then, the wealthy and the big corps are crying crocodile tears. I mean, these poor people would lose millions in taxes, and they would not be able to afford their tax experts and lobbyists. I would never suggest that they offer bribes to congress people to get what they want.
Second: The people who most need tax breaks, unfortunately, are the people who also need the most financial aid. These people, in spite of popular propaganda, are not looking for handouts. They are looking for work to earn so they can pay their bills. When they are faced with having to pay for food, clothing, and shelter, and they can barely meet those demands, among the first things to be eliminated from their budgets are health coverage and savings for old age.
Third: Imbalanced tax rates and cuts make the people angry and disgruntled. When a person with a MacJob looks around and sees the super-wealthy, who control a vast proportion of America’s wealth and can afford fancy cars and fancy homes and fancy parties, paying a lower tax rate than they do, they will be glad that at least government did not take away their right to bear arms.
I suggest that you do some research and see what really happens when the rich get richer. There is no “trickle-down” — actually there is, but the rate at which money comes down through the economy is not nearly the rate that it goes up.
And if you still want to use the water analogy: Trickle down is what happens in the desert under which there is a large aquifer. The water from the sky cannot begin to replace that water that is pumped out to water golf courses. As the water level drops, so does the tension that supports the earth above the water, and then there is not enough tension to keep the homes on the earth supported. You get a sinkhole. Economically that means that the new Depression is on its way — not just another recession, like the one brought on by unregulated lending, etc., of 2006-2007. I mean a Depression, like the one that started with the market crash in 1929.
Look that up. See what caused the Great Depression. See what caused the Recession.
There should be an explicit guarantee that Medicare, and Medicaid, and Social Security will not be robbed to pay for the huge tax cuts given to those who do not need huge tax cuts.
I beg of you to get off the money wagon that Paul Ryan and Mitch McConnell is selling rides on (sponsored by Koch Brothers, and more), and hitch a ride to ease of conscience, though that ride will not pay off as well financially.
Or, you could just go back to farming. Do you remember how it felt to do an honest day’s work?
Paul Moore lives in North San Juan.
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