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Writer needs to examine tax facts

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Copyright © 2021 Roswell Daily Record

Once again we are hearing the mantra, “Tax cuts for the rich.”

The writer of a letter in Friday’s RDR needs to do some serious examination of the facts. He states, concerning the recent tax bill, “I find no mention (in the Constitution) of increasing the wealth of the wealthiest segment of our population at the expense of the general population.” If he makes that charge, he should be prepared to show some clear facts and figures to support that claim. Did the recent tax bill actually benefit the rich at the expense of the rest of the country?

We must understand that if we want jobs, we need to make it profitable to produce goods and services. We do not generate jobs by taxing a business to death. When we overtax businesses, they either close or go overseas.

If we go to crab.rutgers.edu we find that when President Reagan cut taxes, there was actually more revenue going to the treasury. More businesses could start or expand. We had more jobs.

I wonder if that writer understands that the profits of a business are taxed twice: once at the corporation level and again when those profits are distributed to the shareholders. A man in business for himself is first taxed as a business and then as an individual. Furthermore, many stockholders are people of modest means.

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At thebalance.com we find during the Reagan years of 1983 to 1988 when corporate taxes were reduced, our Gross National Product (GNP) expanded at annual rates from 3.5 percent to 7.2 percent. During the Obama years of 2011 to 2016, those rates were from 1.5 percent to 2.9 percent. Would you rather be looking for a job during the Obama years or the Reagan years?

We should ask that writer, “What keeps you from buying stock in some of those companies? That could help you have a greater part in the general prosperity of this country. Remember, all investments carry a risk.”

Russell A. Scott
Roswell

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