Fri | Oct 19, 2018

Trump's tax cuts will hurt poor

Published:Monday | October 2, 2017 | 12:00 AM


Last Friday afternoon, my radio dial was where it always is - Nationwide News Network (NNN). In the interview segment, I listened in amazement as the presenters claimed to be interviewing two American lawmakers. The two topics were the resignation of HHS Secretary Tom Price and Trump's proposal to cut taxes "massively".

These two presenters sat in silent obedience as these two men - oblivious to obloquy, as is their president - fed listeners with the most ridiculous Anancyisms.

Tom Price racked up a bill of nearing US$1m for flying with his wife on government-chartered jets. His position became untenable and he had no choice but to resign. These guests on NNN had a more colourful story. They said Price was coming close to repealing Planned Parenthood funding. The Democrats and fake media found out and hounded him out of office. Really?

Big spending

Trump himself, by spending weekends at his private resorts and billing the government, is now well on track for spending more on travel in his first year than Obama did in the entire eight years of his presidency.

More important to Jamaicans is the claim that Trump tax cuts will have a positive impact "on the whole Western Hemisphere, including the Caribbean ...". So what is the history of these 'tax cuts'?

In 1990, President G.W. Bush increased taxes and there was GDP growth over the next five years. His successor, Bill Clinton, also increased the top marginal tax rate and GDP grew over the next five years. The younger president Bush cut taxes in 2001 and 2003 and gave us the Great Recession.

You cannot tax rich people! The present tax-cut proposal will result in the six largest banks seeing a net income rise of US$6.4 billion. Bloomberg analysts claim Trump himself will benefit to the tune of $1 billion. His wealthy Cabinet friends will benefit by between US$250 million and US$900 million. Medicare, on the other hand, will be cut by US$450 billion.

Tax cuts only hurt the poor because it reduces government services upon which lower-income citizens rely.

I hear most of NNN is down with the flu.