Thursday, November 30, 2017
Tax Cuts, Profits, Markets, and Lies
You don't need to be an economist. A couple of carotid arteries with decent flow, at least one eye and/or ear, and you know that the Republican tax-cuts-for-corporations/soaring-job-growth/pay-for-themselves bullshit is just that. Bullshit.
First of all, corporate profits are already at all-time highs (Thanks, Obama). Unemployment is at its lowest in years (T,O). When there's unmet demand for their products and profits to be made, businesses expand capacity and hire more workers. Cutting corporate taxes has nothing to do with it. Cutting them for working people, maybe so: more to spend, more demand. But the Republican tax plan, by all accounts, gives little or nothing to the middle and lower (ie, purchasing) class. It's a selfish and self-evident ruse.
Corporate CEOs have already made clear that any windfall they get from tax cuts will go to investors (and, therefore, themselves.) The stock market is about investors. Its response to the promise of corporate tax cuts is about potential investors' profits, not a statement of confidence in the economy at large. In fact, one would predict, assuming these dishonest tax cuts for the wealthy and corporations become law, there'll be a lot of profit-taking after an initial rally. Because a tanking economy has always followed Republican tax cuts, and smart investors know it.
Of course, as silly Marko Rubio just said, unbagging several cats, they realize deficits will soar under their plan. "Plan" being the operative word: step two in this pre-programmed calamity will be to tell older Americans, present and future, how sorry they are, but they have no choice, in order to balance the budget, but to cut Social Security and Medicare. Did we promise otherwise? Fake news.
And thus will the circles of hell be completed. It's obvious. It's greedy. It's disastrous for all but the already wealthy. And it'll be cheered by those who'll be hurt the most, i.e., the Foxified, the die-hard Trumpists, the willingly deceived.
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