Rea­sons to re­ject the Repub­li­can tax plan

The Mercury News Weekend - - OPINION -

Economies don’t ex­ist to cre­ate wealth. Demo­cratic gov­ern­ments don’t ex­ist to cre­ate in­di­vid­ual wealth (as sug­gested by Giles, Nov. 19). Economies ex­ist to cre­ate and dis­trib­ute goods and ser­vices to par­tic­i­pants. Demo­cratic gov­ern­ments man­age the dis­tri­bu­tion of goods and ser­vices ac­cord­ing to so­cial val­ues of that so­ci­ety (e.g., elim­i­na­tion of poverty).

Pro­po­nents of tax cuts ar­gue they will in­crease eco­nomic ac­tiv­ity and in­come for those of lower in­come. Log­i­cally, if tax cuts in­crease debt or deficit, then neg­a­tive (so­ci­etal) wealth is cre­ated —ex­actly op­po­site to the claimed pur­pose. The cur­rent Repub­li­can tax plan in­creases debt and deficit (given their bud­get pro­posal). Thus, tax cuts are ex­actly the wrong ap­proach.

Deficit spend­ing is jus­ti­fied when a gov­ern­ment/so­ci­ety is un­der ex­is­ten­tial threat (e.g., dur­ing war) or there is a clear re­cov­ery plan. Nei­ther ap­plies for the US at present, so the Repub­li­can tax plan must be re­jected. They should be propos­ing tax in­creases.

— Ver­non V Chat­man III, San Jose

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