To the Editor:
The House Republicans have released their long-awaited tax plan. They are promising tax cuts that they claim will increase investment by corporations and the wealthiest that will fuel job growth and economic growth.
Analysis of this plan shows that the biggest chunk of the tax cuts go to the wealthiest 1 percent and corporations. This is accomplished by eliminating the Alternative Minimum Tax, the inheritance tax, decreasing the tax on pass-through corporations and decreasing the corporate tax from 35 percent to 20 percent.
The total cost of the tax cuts is estimated to be $2.4 Trillion. At the same time, it eliminates many tax deductions that are used by middle-income families.
Decreasing tax revenue to such a great extent is bound to have a negative impact on the deficit and national debt. In fact, analysis from many independent organizations, such as the Tax Policy Center and Tax Fairness, have estimated that this tax cut will increase the national debt by $1.5 trillion over the next 10 years. Some estimates find this tax cut will increase the debt by another $4.5 trillion in the following 10 years.
The Republicans are doing this all with the gamble that these tax cuts will unleash economic growth that the U.S. has not seen for decades. On the face of it, this sounds like a great plan. However, there is no peer-reviewed study that has shown tax cuts lead to sustained economic growth.
There is an alternative to tax cuts for increasing job growth and the associated economic boom. An increased investment in the infrastructure of the United States would surely create high-paying jobs that would create an associated economic boom. This would occur not only because of the increased payroll which would lead to increased consumer spending, but sound infrastructure is a fundamental component of economic growth.
Investing in our infrastructure is not just about creating jobs though. The American Society of Civil Engineers recently released report card on the state of the American infrastructure gave it a D-plus. This report found massive short-comings in the safety and soundness of America's bridges, roads, dams and public works.
Reach out to your members of Congress and tell them you want to invest in American jobs by rebuilding the infrastructure, not by giving tax cuts to the wealthiest.