Cutting taxes that the country’s largest companies pay won’t spur job growth, as the Donald Trump regime argues, and it won’t raises salaries for workers.
What it will do is increase the pay and benefits of top executives of those companies, increase profit margins for wealthy shareholders and just add to the problem of income inequality, which is diminishing the middle class. Companies, especially large ones, are laser focused on profits, not employee welfare. The idea that top executives will suddenly create jobs and increase salaries after their companies receive a huge tax cut is simply laughable.
As the devastation of Houston continued to unfold, which Trump used as a campaign rally to sell hats and pat himself on the back in his typical narcissistic manner, our liar-in-chief went to Missouri to unveil a vague plan about cutting taxes for companies. The plan lacked details, but the incongruity between how much the Houston flooding will cost the nation and cutting taxes on the wealthy was obvious to anyone really paying attention.
Unfortunately, Republicans are seizing on the Trump’s Missouri comments—oh, he was so presidential—to enact what they call “tax reform,” which means more money for wealthy. Don’t forget the entire Republican plan to repeal Obamacare was based on denying health care for millions of people so the richest among us could enjoy another huge tax cut.
The main issue here, and the reason tax cuts for the wealthy are imminent, remains the false equivalence in the media between what it sees as competing arguments when it comes to taxes. To simplify, media outlets will say one side wants to cut taxes to spur growth and one side wants to stop that from happening. Think thanks will weigh in with statistical information. Pundits will argue “both sides.” They will debate trickle-down economic theory, even though it has been soundly refuted. People will stop paying attention. A bill will be passed and signed into law.
What will then happen is the growth of income inequality, not jobs, not salaries. That’s not reform in any sense.
In the short-term, however, cutting taxes for the wealthy as officials figure out how much the devastation of the country’s fourth-largest city will cost the federal government would be an immoral act of immense proportions. But don’t think that Republicans won’t do it, anyway.