Blah
You only need to look at the Bush tax cuts of almost 15 years ago to recognize how tax cuts for the rich destroy jobs and redistribute income from the 99 to the 1 percent in the process. George W Bush was the first president since Herbert Hoover to experience negative job growth during his presidency. Now Trump will be the second president since Hoover to experience negative job growth. Here’s how the scam works.
The tax cuts for corporations will increase their after-tax profits. This will be handed out to the rich in the form of higher stock prices (capital gains) and dividend payments.
Meanwhile, the tax-cuts for the rich will deliver them more after-tax income with which to purchase more speculative investments. Both corporations and the individual wealthy will then inflate the current stock market bubble by purchasing more stocks, futures options, and other things of those natures. (A futures market is an auction market in which participants buy and sell commodity and futures contracts for delivery on a specified future date)
Naturally, this will bid up the price we pay for commodities, such as food, natural gas and oil. The difference between the current prices and the new higher (inflated via tax cuts for the rich) prices we will pay means that more of our income will be redistributed from us to the 1 percent.
In other words, we will be made to pay more to the rich for the food we eat, the natural gas we use to heat our homes, and the gasoline we need to power our cars, as well as other things, and that extra money we will be forced to pay will go straight into the pockets of the billionaires, people like Warren Buffett, the Koch Brothers, and Donald Trump.
The stock market bubble, perhaps the biggest in US history, will now continue to grow as both corporations and the individual wealthy have more money to bid stock prices up. The stock market bears a remarkable resemblance to a Ponzi scheme. A Ponzi scheme is a form of fraud in which belief in the success of a nonexistent enterprise (or artificially high stock prices) is fostered by the payment of quick returns to the first investors from money invested by later investors. In this case, the rich will be paid more and more for so long as the bubble continues to inflate, and for so long as it takes for the bubble to fizzle out. Corporate management will feel the pressure to export more and more US jobs in order to pay what is necessary to prop up their stock prices.
In other words, the tax cuts will produce greater pressure on corporate managements to export more US jobs to low age nations whenever possible. The difference between the old higher US wages and the new lower overseas wages will go straight into the pockets of the superwealthy. The rich will get all the increasing returns on investment from us, the stakeholders, rather than later investors. In that way, along with one other way which I shall not go into now, the stock market closely resembles a Ponzi scheme.
Trump’s disastrous tax cuts will cause a one trillion dollar increase in the federal deficit over the next ten years. Naturally, in order to reduce the deficit, Republicans will demand reductions of federal expenditures on education, road maintenance, social security payments to the elderly and disabled, Medicare, Medicaid, Welfare, food stamps and other programs that benefit the middle class and the poor, because of the deficit they have created with their tax cuts for the rich. In this way, the billionaires will become richer at the expense of everybody else, thanks to the unnecessary tax cuts.
Meanwhile, quite naturally, Republicans will insist on increased federal military expenditures and expanded deportations of undocumented immigrants because these programs are highly profitable to their base, which is the billionaires who control the party, and not the grassroots. The US currently spends more on its military than the next 26 nations combined, 25 of who are US allies. Talk about overkill or unnecessary.
The tax cuts are unnecessary inasmuch as the 1 percent are stealing a record amount of the total national income, going from 8 percent in 1980 to 37+ percent nowadays. Three people, (Jeff Bezos, Warren Buffett, and Bill Gates now own wealth (assets) than the bottom 50 percent of the US population. The top 1 percent now own more wealth than the bottom 90 percent. In addition, corporate profits are at record levels. So neither corporations or the rich need the money except as a way to steal more money from the rest of us, and the money from their theft will keep those stock markets, futures market, and other markets boiling upward until the bubbles pop. And that will produce a disaster for Trump, the Republicans, and us.
Every Republican who voted yes on the bill knows everything that I have written above. Yet, they still voted yes. This shows that the billionaires are their real constituents and not the grassroots. They all know the bill was passed on a series of lies.
Read more: Futures Market https://www.investopedia.com/terms/f/futuresmarket.asp#ixzz507u73Y1m The d
Follow us: Investopedia on Facebook
Leave a comment