Monday, November 27, 2017

GOP tax reform is unproven trickle-down theory

https://www.ncronline.org/news/opinion/distinctly-catholic/gop-tax-reform-unproven-trickle-down-theory
MGB:_Not unproven, but disproven. When the Executive Class is give a tax cut, they have an incentive to earn more money, not by hiring and expanding but by cutting labor costs and pocketing the bonus. When tax rates are higher, the bonus is taxed away and is not worth earning. This is why you have job losses and lower waes the GOP tax legislation. Growth occurs when consnumers (workers) have higher incomes and spende them, either because they have received higher goverment transfers or jobs on government or corporate projects. This leads to private wealth and investment growth. Any corporate manager who suggests investment due to tax cuts will soon be receiving a government unemployment check.

Are pontifical statements infallible on economics? I would say more so than on reproductive sexuality, from when life begins to whether a procreative end is necessary to sacred continence to ordaining women. Indeed, the Church’s Neo-Platonism is infallibly wrong compared to its economic teachings which are rooted in how the Scriptures, especially the Gospel, prefer the poor to the rich. Indeed, any time Israel was scouraged, it was for how it treated the poor badly while the rich enjoyed luxury. Sexuality was never the issue.

Ryan and McConnell are speaking Ayn Rand and Laffer, who are favored by Republican donors for selfish reasons, not for their businesses but for their own personal gain. Their problem is cash parked overseas. They want a bonus for bringing it home and they want that bonus to have as low a tax penalty as possible.

The current economy began to improve in 2013 when Obama raised taxes on the wealthy. Hardly runaway socialism and the reason it looks gut for Trump now. If he were not such a partisan idiot he would leave well enough alone and take credit for it.

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