Reality On So-Called ‘Tax Cuts’

Let’s cut the crap, shall we?
Tax cuts have never resulted in any sort of material improvement in the living standard of the ordinary America — which I define as everyone other than the top 1% of earners.
It has simply never happened.
The last time the tax code was “reorganized” you got more buy-backs and stock options issued to executives.
The same thing happened with all the other tax cut packages since.
Further, when we had the so-called “Reagan Tax Reform” Tipper promised to cut spending in order to make them deficit neutral. He did not do so; no reduction in spending was ever delivered.
This will be no different. In fact, unlike the Reagan-era game nobody is even claiming to intend to reduce spending.
The chimera of “tax cuts” being “good for business” is nonsense as well. Almost no corporation actually pays the tax rate claimed, especially large firms. They all cheat — Apple has been caught in the “Paradise Papers” and others have as well. The claim of “repatriation” leading to some sort of boom in investment and wages is nonsense as well.

This post was published at Market-Ticker on 2017-11-17.