Tax Cut Law

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About 2 years ago I wrote a letter entitled Understanding Tax Code Reform stating “this is just a windfall for the wealthy and big donors and will do little for the middle class while adding $1.5 trillion to the debt”. While workers have seen very small benefits companies have used share buybacks to pump up their stock price delivering for executives and shareholders with little increase in investments. Back in 2017 AT&T said that the Trump tax cuts would result in billions of new investments and thousands of new high paying jobs. Investment never occurred and it cut tens of thousands of jobs. The top 1% collected 24% of the benefits.

In America today 140 million people are poor or low wealth while 3 individuals own as much wealth as all of them put together. The real cost of living has soared as wages have stagnated. So since the tax cut, not surprisingly, did not work what do we do? Trump’s new budget in general calls for slashing over a trillion dollars of funding for programs ranging from Medicaid to food stamps to environmental protection. Medicare spending will be cut. Included is a 10-year $193 billion cut in Medicaid and the Children’s Health Insurance Program. Social Security’s disability program would be cut by $60 billion over a decade. Trump would scrap all subsidized student loans would eliminate public service loan forgiveness. He projects that his spending cuts would reduce the federal deficit to about one trillion dollars!

While many of the cuts will fortunately not make it through Congress, it demonstrates the failure of the Tax Cut Law and what is important to the President. And the debt. Let us not talk about that.

 

Gerry Trantina
Fort Myers Beach