Reader says Congress just gave America a brand new credit card
To the Editor:
Did you eve get a credit card and run up the amount to the point you couldn’t pay the whole balance off when it came due?
How about not paying the minimum and having your interest rate go up to 19 or 23 percent?
With the new tax cuts, our government will continue at a higher rate to spend more than it takes in. In 2017, our debt was $266 billion or $616,438,356 a day. I thought the Republicans were the watchdogs of national debt.
Rising debt is tied to inflation, as is the lowering of unemployment. However, you will not see a 6 percent drop in your personal tax as will corporations. The tax bill did not close loopholes for corporations, so their tax payment will be much smaller.
This is the old “trickle down” theory we have seen before. Give the rich more money and they will create jobs for you and me.
Over the last four years, companies have stockpiled a lot of money, but did it create rising salaries or expansion? Did you see on TV the meeting of executives of large corporations and the moderator asked them who would raise salaries and expand their business if the tax cut for corporations became law? No hands were raised.
The recent news of bonuses being given is admirable, but your daily wage is staying the same. The rise in your paycheck with the new law is meager.
States are the only ones raising your salary with new minimum wages for the lower waged ones of us who try to make a living on such meager income.
The history of what corporations do when you give them tax breaks is to increase their own wealth. In the past, they have bought back their own stock, hid the money overseas, increased their personal wealth, and opened up more businesses outside the USA.
When you give corporations more money, you are increasing the current condition that 3 percent of the people in the USA have over 90 percent of the money. The government would be much wiser creating incentives to expand and improve wages.
The solar and wind energy sectors are good examples of government incentives that have exploded those industries. I’m afraid that with the new tariffs on Chinese-made solar panels that the industry will fizzle even though a lot of the cost is in the installation and maintenance of such panels.
Incentives also mean that you are not giving corporations a blank check, but a break on performance that produces the growth and improved wages.
Sadly, there will not be enough money coming in to pay the bills and our government will now look to cut entitlements like your Medicare, Social Security and Medicaid. My Social Security check hasn’t increased in years. Any increase is eaten up with increased Medicare costs, but the broken medical system is a topic for another day.