Tax Cut Voodoo

Magical thinking is the belief that facts can be changed by repeating words or phrases that are not based in reality.  In this case it’s that cutting taxes will cure our financial problems.  Ask any Tea Partier, tax cuts will solve the financial problems of the United States.  Big businesses will use that money to expand and hire more American workers, money will be spread around and everyone will share in the wealth.  All this if we just cut taxes.

Unfortunately, the reality is that big businesses have had tax cuts and still do have them and none of these outcomes are happening.  Unemployment is still high, businesses are still shipping jobs overseas and citizens are losing their homes in record numbers.  This is the actual result of tax cuts. Still, there are a lot of folks in Congress are sprinkling dried toad powder into bowls of stumpwater, chanting their magical spell: Tax cuts will save the nation.

In the past I have asked senators and congressmen who’ve contacted me for my support to explain the tax cut magic to me.  None of them have answered me.  And I’m not surprised because when you really start looking at the system, it makes no sense.

  1. The biggest employer in the United States IS the United States.  If the Federal Government stops spending, jobs are lost.
  2. When jobs are lost, those who lose them are no receiving incomes.
  3. People without incomes are not getting tax cuts.
  4. If folks aren’t getting tax cuts (or incomes, for that matter) how are they going to spend?
And in an economy where no one is spending, no one is making money.
Then, when you have tax cuts, state and local governments have to let employees go.  These people live in communities where grocers, auto repair shops, plumbers, electricians, contractors, lawyers, doctors, farmers, teachers, shopkeepers, funeral home directors and other businessmen and woman live by making money providing goods and services to the people in their community.  With their customers out of work, these people stop making money.  And under these circumstances, who is going to expand, even if they are getting tax cuts?
Meanwhile huge corporations who built their wealth on the backs of hardworking Americans are treating their employees like first wives who got them through college then leave them behind for a more attractive, cheaper workforce.  Except these corporations aren’t paying their child support. Tax cuts won’t be spent in the United States.  Tax cuts these companies receive go to India and Thailand and China.
So my question is, when based in reality and not wishful thinking, how do tax cuts actually help our country at this time?  In a recession or depression, spending money is the only thing that helps.  And the only folks with the where with all to do that is the federal government.  The Roosevelt Administration put into place programs to employ workers such as the Works Progress Administration and the Civilian Conservation Corps.  He also put regulations on banks that maintained integrity in our financial systems until the Reagan Administration.  When Reagan started dismantling our carefully crafted safeguards, the result was the great Savings and Loan failure beginning with the Penn Square bank in Oklahoma City.  Further dismantling has been done until the thin line between corporate banking and personal banking disappeared.  The loss of limits created an environment in which speculators and unscrupulous investors made mortgage loans into snatch and grab schemes and defrauded Americans out of billions of dollars.  This loss of regulation, the “gud fer bidness” attitude of the Bush administration left Americans out in the cold.
So now we’re being held hostage, being fed a thin gruel of “tax breaks” as the ultimate nutrition for the country.  Look around.  Tax breaks won’t help the citizenry.  They won’t have an effect on those of us in the most need.  They will only help those who are already draining this country dry. And where will they put their money in off-shore accounts and investments.
Spending in the United States is bad mojo.  But if you really believe in magic, maybe tax breaks will help.  And maybe Santa and the Easter Bunny will will bring us gold from the end of the rainbow.
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About Perry Tenitiss

I write on all sorts of subjects at various sites. Check the list below and enjoy!

Posted on August 14, 2011, in America, banking, corportations, democrats, economics, economy, Election, immigration, magic, magical thinking, magical thinking, mojo, mojo, pagan, Perry, Perry for President, politics, presidential election, republican, spells, tax breaks, taxes, tea party, Texas, United States, voodoo, voting and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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