The GOP tax cuts
December 06. 2017 10:59PM
To the Editor: Under President Obama’s presidency, the unemployment rate dropped from 10 percent to 4.7 percent. The top tax rate on businesses was 35 percent for each of those seven years. The GOP’s claim that cutting taxes for business is needed to create jobs is false. Businesses create jobs when people have money to buy what they are selling.
U.S. corporations do not have to pay U.S. taxes on foreign profits unless they bring those profits back home. They have avoided doing so for two decades. In that time, they have amassed $3.6 trillion in untaxed profits and more than $1 trillion in unpaid taxes. The GOP’s tax reform bills would make those profits tax free, or reduce the rate. This tax cut is really about giving corporations who sent jobs overseas a $900 billion to $1 trillion Christmas gift. No wonder their corporate donors are threatening to stop donating if this tax giveaway does not go through.
The GOP claims this gift will bring jobs home. That is silly. Why create jobs here, where you would have at least a 20 percent tax rate, when you can keep jobs overseas and pay no U.S. taxes?
One thing the GOP’s tax plan is guaranteed to do is increase the debt by at least $150 billion a year. This year’s deficit is already $600 billion, not counting the $100 billion for the hurricanes. Creating massive deficits is not conservative. The GOP should change its motto to the spend and not tax party.