Trickle-down tax cut won’t help econ­omy

Honolulu Star-Advertiser - - VIEWS & VOICES -

It is as sim­ple as the rich win, all oth­ers lose.

Tax breaks for the rich are per­ma­nent and all oth­ers phase out over time. Af­ter Pres­i­dent Ron­ald Rea­gan’s trickle-down tax cut turned the tax code up­side down, he had to raise taxes sev­eral times to sta­bi­lize the econ­omy.

Fed­eral Re­serve pol­icy saved his ba­con and all of ours. Com­ing out of a re­ces­sion, gov­ern­ment spend­ing, not a tax cut for the rich, should be used to jump start the econ­omy.

His­tory shows that trick­le­down eco­nom­ics does not work. Cor­po­ra­tions and the rich do not pay too much in taxes. General Elec­tric paid no taxes.

As for Oba­macare, all was fine un­til Pres­i­dent Don­ald Trump’s rhetoric en­gen­dered un­cer­tainty in the health in­sur­ance mar­ket. Re­peal­ing the in­sur­ance man­date will set health care on a real death spi­ral that the Repub­li­cans talk about. It’s all on them.

The econ­omy is still Pres­i­dent Barack Obama’s un­til Trump and the Repub­li­cans screw it up.

Melvin Sakamoto Palolo

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