Friday, September 29, 2017

Eliminate or Reduction Taxation

Headlines tell us what to think. Disposable income, the real driver of economic growth and standard of livings, has been falling steadily for decades. A sharp contraction in the general standard of living means it takes two rather than one income to survive in the United States for most. Eliminate or sharp reduction in taxes not offset by increases at the local and state level, will reduce labor costs and encourage investment necessary to expand economic growth in the future. All of this is unlikely as the pension crisis unfolds, forcing local and state governments to hike taxes to avert social disorder.

Headline: Most Americans don’t want — or need — a cut in their federal tax rate

Donald Trump and the Republican leaders in Washington have rolled out a plan for another big tax cut, but most Americans wonder why they are bothering with taxes when there are so many other more pressing problems.

There may have been a time, a generation ago, when cutting tax rates was the most popular thing a politician could do. But that day is long gone. I guess you might say Americans are tired of tax cuts, there have been so many.



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