The Trouble with Tax Cuts

It sounds awesome. I mean, who wants to pay taxes anyway, right? So if the Republican senators demand tax cuts, that's a good thing, isn't it? Well, not really. It behooves us to look past the hype and examine the demands carefully.

First of all, who would be getting the majority of the tax cuts if Republicans have their way? You? Not likely. Most of the tax relief would be going toward corporations. If you and I see any at all, they won't be very big.

So what good can it do to have a reduction in taxes? It's a one-time fix and when it's gone it's gone. What we need is an investment, which creates jobs for the future, so that you and I and many others can continue to provide proudly for our families.

Tax cuts for corporations don't create jobs either. The idea sounds good in theory, but again it's just a one-time fix. Will those corporations take that money saved and use it for expansion? Will a reduction in corporate taxes result in scores of new jobs? Hardly! There are stock holders to pacify, CEO's to bait, reserves to re-fill. And when the money is gone, it's gone.

Additionally, we will have built no new bridges, re-enforced no dams and levees, upgraded no schools, simplified no hospital paperwork, embraced no health insurance plans, and created no alternative energy sources. We will still buy oil and gasoline at prices dictated by Middle Eastern countries.

We had a flurry of tax cuts under the Bush administration. They did not create jobs. They did not stimulate the economy. They did nothing to improve our infrastructure and did not make us independent of foreign oil. They did, however, allow for CEOs and Wall Street gurus to receive fat bonuses and they paid for parties, vacations, and private jets and luxury cars. Nice!

Tax cuts save money but they don't stimulate and they don't create a healthy, thriving economy. It would not be smart to put the breaks on an already stagnating economy. Would you drain the gasoline out of your car and expect it to run? Probably not. And yet, conservative voices in the senate want to do just that.

There is only one way out of this stranglehold and it requires boldness and courage. And it requires spending. Tell your senators and state representatives you still want the change you voted for. Urge them to support the President's stimulus package quickly and fearlessly. I did. After all, they are supposed to be working for us.