What I recall from my economics studies so many years ago at college is that cutting expenses and increasing revenue are important for keeping a business, or government for that matter, in business. It seems that the Trump administration at least understands part of the equation with proposed cuts to Medicare and Medicaid, and reduced Social Security benefits. Personally, I would first go after the already-bloated Defense budget, instead of increasing its funding, and stop trying to start wars that massively expand our debt. On the revenue side, however, I’m left scratching my head wondering what the administration is thinking by trying to pass tax cuts for large corporations and the super wealthy, those who are already realizing historically high profit levels. The administration would like us to believe that tax savings for the wealthy would be immediately put to work stimulating the economy. The trouble is, historically, the wealthy don’t increase consumption levels and simply deposit additional money into passive investments. Tax breaks for the poor and middle class, on the other hand, have proven effective at increasing consumption levels and, in turn, stimulating the economy. In light of this, I suggest that if the Trump administration really wants a plan that can actually stimulate the economy instead of crash it, then they should consider shifting the lion’s share of tax breaks to the lower and middle classes, to offset reduced Medicare/Medicaid and Social Security benefits, and seriously consider increasing revenue through higher tax rates on at least the top 0.1%, many of whom have been advocating higher tax rates on themselves for years.
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