Ignorance on taxation

I do my own taxes, have studied economics and understand how a market-driven economy works. Most Voices page writers seem to lack such knowledge or understanding.

Liberal Democrats and media continue one refrain, “Tax cuts for the rich,” claiming the new tax bill will primarily benefit the rich. They’re surely basing this on a dollar-amount comparison. A very small rate reduction for an income in the millions would naturally be many times more than a more generous percentage for a middleincome earner. However, the top 20 percent of taxpayers now pay over 75 percent of total tax revenue, with a large portion by the top 1 percent. Unbiased reports are that the middle class will receive a significant benefit.

Another faulty idea is that investment income should be taxed at the same rate as earned income. First, most money people invest has already been taxed. The investor hopes to realize a gain on his money, but on the other hand, takes the risk of a loss. Investment funds are the source which enables banks to lend for business expansion and such activities that grow the economy and create jobs. If investors knew the government would take a big part of their gains, many would find somewhere else for their money.

The critics also don’t understand the effect lowering taxes has on the economy and increased tax revenue. Just the anticipation of tax cuts has created a tremendous surge in optimism and all areas of the economy—three straight quarters of 3 percent GDP economic growth, after eight years unable to maintain a pitiful 2 percent, due to smothering regulations and the highest corporate tax in the world.

It might behoove some to try and ignore the tweets and pay attention to what is actually happening—perhaps the truth about the scandals. BARBARA FOREMAN

Siloam Springs