To the editor:
Everyone loves a tax cut. But the truth is that the GOP’s tax bill is bad for the people of Illinois, both short term and long term. Under the bill, tens of thousands of our neighbors will lose their health insurance, and homeowners will have less ability to deduct their property taxes.
As far as stimulating the economy, with the unemployment rate at an extremely low 4.1 percent, a tax cut will not reduce this rate much more. And our economic growth has been stuck below about 2.5 percent GDP growth since the year 2000. This is because the average consumer in our consumer-driven economy has little money to spend. Meanwhile, the wealthiest 1 percent are saving a majority of their money rather than spending it on American goods and services that drive our economy.
Worst of all, the bulk of the tax cuts in the GOP plan will go toward large corporations and the wealthiest Americans who already have plenty of cash on hand. Large corporations will not use this money to create jobs but will rather use most of the tax savings to benefit wealthy U.S. shareholders, and foreigners who own 25 percent of all U.S. stocks. Small businesses that create most of the new jobs in this country every year, and the struggling middle class do deserve tax cuts, but the GOP’s tax bill puts its priorities elsewhere.
That is just the short-term impact. Long term, the bill would add at least $1.5 trillion to our national debt, or more than $4,000 for every American. Our debt is now at about 105 percent of GDP, almost as large as it was after World War II when it was at 119 percent of GDP. The problem is that, based on past history, our economy is likely due to experience another recession in the near future. When that happens, we will be hard-pressed to stimulate the economy if we’re deeply in debt.
Our policymakers must do better than this. As a just-retired chemical engineer, I know that a plan must be tailored to the goal it seeks to achieve.
We need to start doing things that make sense in this country. Illinoisans simply cannot afford this piece of legislation.
Democratic candidate for Congress
in the 14th Congressional District in 2018