Tax cut not what’s needed

The News Herald (Willoughby, OH) - - Opinion - Read the full ed­i­to­rial from the Akron Bea­con Jour­nal at bit.ly/2hnPH8p

The coun­try doesn’t need a tax cut. The econ­omy ex­panded by 3 per­cent in the most re­cent quar­ter. Cor­po­rate earn­ings are strong. The Dow Jones In­dus­trial Aver­age stands at 23,434, and in­ter­est rates, though higher due to Fed­eral Re­serve de­ci­sion-mak­ing, re­main at low lev­els. Yet, on Thurs­day, Repub­li­cans in Congress com­pleted work on a bud­get res­o­lu­tion that calls for as much as $1.5 tril­lion in tax cuts dur­ing the next decade. ... Pres­i­dent Trump and con­gres­sional Repub­li­cans talk about de­liv­er­ing land­mark tax re­form.

They do so, in part, to dress up the po­ten­tial achieve­ment, Repub­li­cans in need of a po­lit­i­cal suc­cess af­ter much fal­ter­ing this year. Un­for­tu­nately, this ef­fort lacks the sub­stance of the true ad­vance in the Rea­gan years, the re­sult of ex­pert analy­ses from var­ied per­spec­tives, hear­ings, de­bate and con­sen­sus-build­ing.

Ide­ally, Repub­li­cans would fo­cus on what the coun­try needs, start­ing with re­pairs to the cor­po­rate tax sys­tem.

Many cite the rel­a­tively high cor­po­rate rate of 35 per­cent. Yet the ef­fec­tive rate is around 20 per­cent, in­di­cat­ing the many ex­emp­tions and loop­holes.

Thus, the log­i­cal re­sponse: End the tax breaks to de­liver a lower rate, track­ing the trend among peer coun­tries, adding to over­all com­pet­i­tive­ness.

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