Tax Cuts to Corporations and the wealthy do not benefit “We the People” and they should if the Economy is to prosper.
Let me explain. To avoid benefitting employees permanently, many Corporations gave out $1000.00 bonuses instead of permanent wage increases. That is insufficient compensation for those with little expendable cash. It ONLY improves the Corporate bottom line.
Additionally, this form of compensation has a negative impact on our Economy. If we are to achieve real growth and productivity instead of inflation and stagnant wages, Corporations have to invest in their businesses and human capital. That means less profit for the Corporations, but this isn’t a great hardship, since they are all anticipating a windfall of 9-18%, after tax dollars. So what is the problem? The Corporations have no intention of sharing their gains with anyone below upper management or their Shareholders.
However, if they continue to act greedy, the Economy as a whole will suffer, even them. Their dilemma is equal opportunity for all and bringing more people into the workforce at higher wages to avert a recession and higher interest rates. The Corporate resistance to productivity and sharing their wealth is what causes a slide in the Stock Market. However, once Corporations admit they can’t have it all, a healthy consolidation of the marketplace will occur. And Americans will be able to once again participate in our Great Society and invest in companies with real value.
Timing is everything. The Corporations don’t want to share. But they may have to in order to save themselves and excessive interest rates. I remember in the 1980’s, mortgage rates climbed to 16% and prices were low! It wasn’t the best of times unless you had cash to spare. It is up to the Corporate CEO’s to repeat the ’70’s & ’80’s, or move forward and prosper with reduced profits. The choice is theirs.
Meanwhile, the tax giveaway to the ultra wealthy was irresponsible and legalized tax evasion and maximized Inequality. Reversal of these egregious tax cuts would be one of my wishes. The second would be reversal of the Tax Cuts to 28% and closing all the loopholes for the 1%. Why increase greed and Inequality? Why do we need choices, when fiscal conservatism could have prevented additional greed?
Instead of waiting for Corporations to choose a path toward Equality, “We the People “ must confront our representatives on the Local, State, and Federal levels, demanding tax increases in order to provide services to the poor and middle class. Otherwise, without a written guarantee of their next vote on our behalf, Inequality will increase. This is not the Society we have to accept . Our Representatives in Government represent us, they owe us Customer Service.
See you tomorrow and we’ll chat about The Market, Infrastructure and policy for a few!
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