Tuesday, December 26, 2017

No One Gets It

Over and over I have read or listened to opinions about the tax plan approved and slated to begin in February 2018. The Corporate rate drops from 35% to 21%.This is referred to as a giveaway to large corporations with trickle down to the little people. I state that this is not true. The whole premise is to lower the tax rate from the highest in the world to a more reasonable figure. I know it is difficult for the Socialist people among us to understand Capitalism but the basic premise is to be profitable. Should a company not be profitable it will cease to exist. It is just as simple as it can be. If you can accept this as fact then you might understand that taxes, labor, material, transportation and other factors are part of the decision maker’s process when considering location of faxtories. For the past thirty years under Republican and Democratic governments the factors have been overwhelming to relocate jobs from America to lower cost countries, China being the outstanding recipient. Lowering the corporate tax will remove that factor from the process. The hope is that companies will return but at the very least perhaps companies considering moving will decide to remain. The beneficiaries of this tax cut therefore will be willing workers not corporations. I have pleaded for this for over 15 years in my “Last Angry Man” books. I can’t wait to see the results. Trump gets the credit. The Republican Party just went along with him. He cares about displaced workers as I can remember FDR always did. Jack B. Walters December 26, 2017

No comments: