Tuesday, August 7, 2018
This letter is response to a July 31 letter by Judith Zitko, in which she criticizes proposed spending cuts and the recent and proposed new tax cuts. Much of that criticism is based on worn-out liberal talking points, incomplete information or just plain misinformation.
First off, she outlines specific cuts to various social programs proposed by Speaker Paul Ryan. Of course, these figures are just starting points for negotiation; you start high and hopefully reach a compromise. Now what Ms. Zitko fails to mention are these programs make up almost 62 percent of the total federal budget, whereas defense spending, where liberals like to trim when they propose spending cuts, makes up roughly only 13 percent of the budget. If you are trying to trim the spending, it doesn't take a rocket scientist to see where most of the cuts have to come from. Under Obama, spending on welfare programs increased by over $300 billion according to OMB, so there is room to trim, especially since the economy is doing much better and welfare needs have fallen.
Ms. Zitko then laments about the effects of the last tax cut and a proposed second round of tax cuts. She uses the tried and failed Nancy Pelosi tactic of only the rich benefited and everybody else got virtually nothing (crumbs). The top 1 percent pay nearly 40 percent of the federal income tax, so logic dictates, by raw numbers, the more wealthy would see a higher dollar amount in taxes saved than somebody making a much lower amount in wages.
Keep in mind nearly 50 percent of lower wage earners pay no federal income tax. The tax cuts, that along with deregulation, helped stimulate the economy with higher GDP numbers, higher job growth and record low unemployment numbers. In fact, according to the Bureau of Labor Statistics, 2018 has seen the fastest average job growth since 2015. Ms. Zitko claimed she has seen little job growth; well facts don't lie.
She then uses the standard liberal talking point that tax cuts have added to the deficit and debt. In the short term (a year or two), that's true, but if you look beyond that, tax cuts from JFK, Reagan and Bush have all eventually increased tax revenue (IRS tables) due to the stimulative effect they have on the economy. According to the CBO, revenues have been predicted to significantly increase after 2019. Excessive spending in the long term adds to the debt, not tax cuts.
If Democrats like Ms. Zitko think bashing Trump and the GOP on anything having to do with the economy is a winning strategy, I say go for it, please!
Hot Springs Village
Editorial on 08/07/2018
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