Why Republicans want tax cuts for the wealthy
Views 105 | Time to read: 4 minutes | Uploaded: 10 - 4 - 2017 | By: Mason Garell
President Trump has recently proposed cutting taxes and is looking to work with Congress on passing legislation ensuring tax reform. There are many reasons to doubt whether this will actually materialize, but it nevertheless presents an opportunity to discuss what the best policy is regarding taxes.
Democrats traditionally want a tax increase to fund government initiatives and increase entitlement programs, and Republicans generally favor tax cuts in pursuit of tackling the debt crisis and preventing expansion of the federal government. The opposition to tax cuts comes from Democratic representatives claiming this only helps the rich. Democratic Senate Minority Leader Chuck Schumer recently stated, “the president has two paths he can take…We hope for the sake of the country, he’ll choose to work with us and put the middle class, rather than wealthy special interests, first.” So, is it possible that cutting taxes for the upper class can actually help the lower class? The answer from conservatives like me is absolutely!
When the upper class has less money stripped from them by the federal government, they have more money available to either save or spend. Since most people who are wealthy are generally wise financially, they will typically seek to grow their wealth. Investing in the stock market, expanding private business, or possibly even creating a new business can do just this. Those who are hiring the general public are almost always the upper class; poor people unfortunately have very little money, if any, to hire employees.
Now that the upper class is promoting economic prosperity, more jobs are needed to meet the labor demand. More poor and middle class people are now hired in order to expand the business of the wealthy investor or business owner. This puts food on the table of the lower classes and increases their wealth and stability. They are consistently getting money for jobs that previously never existed or they never had. Now, they can begin to rise out of poverty and establish themselves in the middle class.
Due to this abundance of opportunity, competition swarms the market and encourages businesses to continue to better themselves. Over time, this competition will lower prices and increase the quality of goods and services in order for businesses to survive. Economically ordinary people now are given the ability to purchase products that were previously out of their price range or never even existed in the market. Now that the poor have a higher purchasing power in the economy, their standard of living rises dramatically.
A large part of the money the upper class makes either goes to the federal government or back into the wealthy person’s hands; it’s that simple. The welfare state that increases taxes is supposed to alleviate poverty but has actually frozen progress. No significant relief has been given to the poor in over half a century due to government programs perpetuating poverty. However, according to the American Enterprise Institute, the free market has pulled nearly $1 billion out of extreme poverty in only twenty years! The miracle of the free market is a gift to the poor, and cannot be neglected. Alleviating the burden of taxes from the wealthy is the only way to help people permanently escape poverty.
Taking less money away from the wealthy gives them more to invest in businesses. The more businesses grow, the more they can hire people and give them financial independence. Further, as a result of this new competition, the lower and middle classes can now purchase goods and services that they could not afford and possibly never existed. The only people capable of hiring a significant amount of people are the wealthy, and cutting taxes allows them to do just that.
Lori Walker | Trickle-down economics has been proven not to work. ~ 11 months ago.