ok, let us begin a little economic history lesson…
name the 5 times massive tax cuts occurred in our history?
the first one was in 1920’s… you might say that kicked off
the roaring 20ties but that isn’t the truth…
in 1918, the top rate of taxes was increased to 77% of income over
one million dollars… to finance the first world war…
but as the years passed the top marginal tax rate was
reduced to 58% by 1922, to 25% by 1925 and to 24% in 1929…
but look at history… the great depression occurred in 1929…
and during the twenties, very large segments of the population suffered
greatly, especially those involved in agriculture… farming and dairy especially…
millions of farmers were driven off their land during the 1920’s and the price of
things like milk dropped so low in price as to cause farmers to get them to dump
milk into the ground…it wasn’t worth their effort to grow things if it cost them money
to grow or to milk cows… so the 20ties were already a time of great problems in
industries as in agriculture…
and note the tax cuts lead up to the Great depression…after every great tax cut
came a recession… notice that as we go along…
the next great tax cut came in 1964… as with any tax cut, it takes roughly
two years before its effects are felt in the economy…now one might claim
that it was the tax cuts that drove the expansion of the economy in the 1960’s…
but that isn’t true… think about it? what else happened starting in 1964?
the broad expansion of the war in Vietnam… it was the classic Keynesian
economic of war that drove the outbreak of economic growth… not the tax cuts…
the next thing to notice is the economic weakness of America during the 1970’s…
there was a recession from 1973-1975… less then 10 years after the tax cuts, came
deep economic problems… and another recessions from 1979- to 1982…both came
as a result of tax cuts from 1964…note that years after the tax cuts came deep
economic problems…is a theme we shall see again…
now the next big tax cut comes in 1981, cut the highest tax rate from
70% to 50% and the lowest tax rate from 14% to 11%…
so guess what happens a few years later… another economic weakening…
starting in 1989 lasting through 1990…after another tax cut in 1986…
so we see a pattern…after every single tax cuts comes a recession…
in 1993 came the Clinton tax increase and what happened?
the best economy in 40 years… Clinton final 4 budgets were balanced
and came with a surpluses…beginning in 1997 the debt held by the public
was pared down over 1998-2001… the only time this happened between 1970
and 2018…the single best economy over a 50 year period…
and we have bush Jr… who cut taxes in 2001 and 2003…
and then what happened? why a economic meltdown… the 2008 depression
the worst since the Great depression…every single time a tax cut
occurred, a depression occurred, every single time…
so, we have the IQ45 tax cuts… the single largest revision of the tax codes
in 40 years…
we will never know what the effect of those could be because of the Trump depression
of 2020…but I am willing to bet those tax cuts will do what every single tax cuts has
done… create an economic recession
but that doesn’t matter because the current economic collapse…and tax cuts won’t
solve a dam thing… they make matter worse… always…
there is not one piece of evidence that tax cuts help the economy
and plenty of evidence that tax cuts in fact damage the economy…
so if tax cuts won’t work, then perhaps the Clinton solution might work…
use taxes to readjust the economy… but instead of going from the lower and middle
classes to the highest classes, we reverse this and take taxes from the rich
and put them to the lower classes and middle class…
but this is one possible solution to our current crisis…
we have other solutions…and that is next…
Kropotkin