Letter: Phony tax plan won’t stimulate the economy

To The Editor,

Phony Tax Plan Won’t Stimulate the Economy

Despite the insistence of Senator Pat Toomey, the tax overhaul before Congress will NOT stimulate the economy.  Here’s why:

  • The bill favors tax cuts to businesses and the wealthy.  How is that going to stimulate anything but their own pockets?  When wealthy folks get surprise money, they put it in their bank or stock account instead of spending it, unlike the poor and middle class who actually spend, thus creating more demand, more production, more employment, etc.
  • It’s nonsense that the wealthy are job creators.  If you’re a CEO of a corporation or a rich attorney, doctor, entertainer, or entrepreneur, you’re not going to hire anyone just because you received a personal windfall. Hiring is a function of demand for a product or service.  No new customers, no hiring.
  • Pat Toomey used to be a deficit hawk but he’s doesn’t seem the least bit upset that the tax bill is projected to add $1.5 Trillion to the national debt.  Why is Congress even considering an increase in the national debt when it’s already out of control?
  • Rescinding the Obamacare mandate to buy health insurance will only make health plan prices rise, further decreasing discretionary spending, thus hurting economic growth, not to mention making the plans unaffordable.
  • This tax cut is a re-run of the 2000s, when tax cuts did NOT result in spectacular economic growth, as predicted.  The economy stagnated and put the U.S. further in debt as a result of less tax revenue. Why should we expect a different outcome now?

Neither the Senate nor House tax bill is good for you or the economy.

Barbara Palladino


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