WILLIAM C. DINCHER
The Democrats, particularly Sens. Warren and Sanders, are pushing a wealth tax, a tax on stock trades, and increased income taxes on individuals and corporations. If such were enacted, they would harm the nation’s economy.
Our present economic condition — good if you hadn’t noticed — is due to the Trump tax and regulatory cuts.
Just what do these people think the wealthy and corporations do with wealth and earnings? Do individuals put their money into vaults and visit it daily like Scrooge McDuck? No, they invest in businesses, stocks, and bonds to grow their wealth. They often donate large amounts to charities that perform work that government does not do. Do corporations sit on cash when tax policy is benign and economic conditions are good? No, they make capital investments to grow their businesses. Corporations also donate to charity. These investments are part of what drives the overall economy. This activity provides jobs and lowers the overall tax burden on the not-so-wealthy.
Increased income taxes will slow the economy by taking money from the consumer. Don’t believe the Democrats when they say they will not raise taxes on the middle class (however defined). Their spending proposals demand ever more tax revenue. Increased income taxes will decrease consumer spending, the biggest driver of our economy. If consumer spending goes down, profits go down and the need for employees goes down. Jobs will be lost.
Taxes on stock trades will remove money from 401(k)s and IRAs, cutting workers’ potential retirement income. Such a tax will make investing less attractive, decreasing funds for capital investment, killing jobs.
When I was a young man (and a Democrat) discussing tax policy with my grandfather, he told me, “Bill, we have to let the rich man keep some of his money. He provides the jobs for you and me.”