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Tax Cuts For the Rich

The Real Reason Romney Likes Tax Cuts for the Rich

Harry Truman famously said, “There’s nothing new but the history you don’t know.” Is Romney trying to trick us or is he simply ignorant about American history? Remember Reagan? He lectured us about the benefits of tax cuts, then he doubled the size of the federal government and doubled the deficit. Reagan won voters by showing the TV screen his face of righteous indignation at the thought that his plans would harm the needy. Yet as soon as he was elected, he dismantled the safety net. If you know your history, homelessness did not exist in America before Reagan. He closed mental hospitals, rehab programs, and housing alternatives, so the disabled ended up on the streets.

With Reagan, we crossed our fingers and hoped he knew what he was talking about. We were wrong. We got deficits and homelessness. Romney says he doesn’t care about the poor, which is true obviously, but he goes on to say they’re covered by the “safety net.” Huh? Doesn’t he know history? He might be trying to trick us, but more likely he simply doesn’t know the safety net isn’t there anymore because Reagan dismantled it. Republicans find it vaguely wrong to help the needy. Jesus said it’s the core of a person’s religious commitment (Matthew 25: 34-46), but Republicans disagree. Republicans want tax cuts for the rich until they have so much money, so many houses, so many Cayman Island accounts that American jobs are the only thing left to invest in. Jobs are at the bottom of their list, just after buying one last Margarita on the beach. Currently the top 20% of wealthiest Americans own over 80% of America’s wealth. Yet we’re fighting a recession and job creation has been flimsy for 10 years. So how much more lopsided does Romney think it’s supposed to get? 10% to 90%? 5% to 95%? He
won’t say.

So let’s get real: Romney knows tax cuts for the rich won’t create jobs. There’s zero evidence. While he was governor of Massachusetts, his job-creating record was 47th out of the 50 states. It’s the Reagan trick all over again where the slogan tries to get you to ignore the facts. Want another fact? Economic expansion occurs in times of high taxation. For an illustrative window, look at the late 1960s to the mid ‘80s. Huge economic growth occured while tax rates were reaching 90%. Why? High taxation motivates business to invest in tax deductible expansion and thereby creates jobs. So Romney Republicans are wrong on 2 counts:

(1) Tax breaks for the rich don’t create jobs because the rich just sock it into Cayman Island accounts and order another marguerita on the beach.

(2) The less the rich are taxed, the less incentive they have to invest in expanding business, whereas the more they’re taxed, the more incentive they have to invest in growing America’s economy instead of paying taxes.

Romney’s actually wrong on a 3rd count, just as Reagan was wrong:

(3) When the middle class pays taxes but the rich don’t, this creates budget deficits. How dumb does Romney think we are? America’s deficit is fixable in the blink of an eye, as soon as the rich join in paying their proper share for our collective needs, such as interstate road repair, testing unsafe drugs, homeland security, disaster relief, and so forth. Why don’t the rich want to help? Don’t they know history? Don’t they know that every society falters when it fails to support it’s middle class? Why are Republicans so stupid as to want tax cuts for themselves while crippling our middle class, just so they can buy a second Ferrari?

Here are the answers:

1. The rich want their money for themselves. Nobody wants to share. It’s the ugly side of human nature. I happen to live on 54th St in NYC. If I could sucker you into voting for Gary’s 54th St economic philosophy, which says that people on 54th St are exempt from paying their fair share of taxes, this obviously would be wrongheaded and unfair, but since I too have an ugly selfish side, I’d vote for me to keep my money and let others pay. I’m no better than the Romney Republicans who want their money for themselves. Romney’s taken out a Cayman Island account and a Swiss bank account to hoard his money. It’s legal, I’m not faulting him, as long as you see that he’s phony, he’s not investing in American jobs and neither are other Republicans. So the rest of us had better wake up. Warren Buffet was right: “There’s class warfare, all right. But it’s my class, the rich class, that’s making war, and we’re winning.” Unless we defeat them in November, we in the middle class are going to end up paying for even more of their margueritas on the beach while the deficit grows.

2. Republicans decry the deficit in words, but they support tax cuts for the rich because they actually want to increase the deficit. Why? The right wing’s goal is to disable our Federal government. This nutty thinking has been in our history since before the Civil War. Since 1840, fringe movements have wanted Washington to crash. It lost credibility under the leadership of Abraham Lincoln. After Lincoln, no one took it seriously. Only recently have Republicans disgraced Lincoln’s legacy and retrieved this nutty idea. There’s not a scarecrow’s chance of actually dismantling the Federal government because, truth is, Americans want an FBI and safe prescription drugs. So instead of aiming to destroy Washington, today’s nutty right wing is aiming to manipulate the budget. There is money for bombers but not food stamps. Republicans vote to subsidize oil companies but not student loans. Whatever Romney Republicans don’t
like is called “unaffordable,” and they trot out “the deficit.” Don’t be fooled, Republicans love the deficit because it allows them to pick and choose. Their self-dealing must be repudiated in November.

History reveals that Reagan’s Alzheimer’s wasn’t just a regrettable mental illness at the end of his life; it seems to have been active during his presidency. We weep for Ron and Nancy in his illness, but just remember that, even though Romney doesn’t have Alzheimer’s, Romney’s economics are just as nutty.

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Gary

NYS Licensed Psychologist, Certified Psychotherapist, Psychoanalyst, and Master Hypnotist with offices in NYC and East Hampton.

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