The stock market is setting records and corporate taxes are averaging 11 percent, down from a previous 21 percent. The tax cut that was supposed to pay for itself isn’t. Corporate tax revenue fell by almost $100 million in 2018 while the federal deficit rose to almost a trillion dollars. The Treasury states that the deficit grew by 26 percent in the last year.
So, since the tax cuts aren’t paying for themselves but instead driving the deficit up, is there any talk by the administration about rescinding the cuts and having the corporations pay more? Heck no! Instead, they will return to the old fashioned practice of cutting social programs to bring down the deficit. Jeff Bezos would shudder if Amazon paid taxes on its $11.2 billion in profits. Much better to kick three million struggling poor people off SNAP (food stamps) and pretend that the possible $8 billion in savings is showing fiscal responsibility and promoting personal responsibility. What a farce. The double standard becomes apparent. It was promised that corporations would use a substantial portion of the money generated by the tax cuts to invest in wage increases and equipment but most of the money went to stock buy-backs that increase share price instead. There were no penalties for not investing as promised. Accountability is for the poor, not corporations. If you need food and apply for SNAP you will be faced with additional regulation and red tape.
A study by the Groundwork Collaborative and the Center on Poverty and Social Policy states income for the poorest fell by more than 7 percent between 2004 and 2018. Income for the 500 richest people grew by 25 percent this year. Increasing fortunes on the backs of the poor is immoral. When SNAP has been sucked dry they will move on to Medicaid, Medicare, and Social Security.
Nothing is more important to the ultra-rich than getting richer. It is up to us as a society to say enough to enriching the wealthy while letting the poor go hungry. A study in Washington, D.C. on the SNAP program showed a fraud rate of 1/10 of 1 percent. If bankers and the ultra-rich were as honest, then the mortgage backed security financial crisis would have been averted. The rich are rich enough. If your elected representatives can’t see that or are paid to ignore it then elect some others.