Shopping Cart  
Science Home
  Wine Glass  
 
 HOME 
TOP The Sociology of Corruption
Social deterioration is occurring everywhere. The cause is power mongering by incompetent persons.

 

The Fraud of Tax Give-aways
 

The only explanation given for tax give-aways is to stimulate the economy. There is no theoretical possibility of that happening. Economies are stimulated through increased spending, not tax give-aways. The government does less spending when it has less tax revenue.

Tax give-aways go into the stock market, not spending, because the rich have already done all the spending they intend to do. Corporations are buying back their own stock on a massive scale, because they have more cash than they know what to do with.

 
Corporations pay no significant taxes. They do not pay taxes until they make a profit, which means taxes have nothing to do with cost of products or creating jobs. Before 1981, when conservatives took over the world, corporations were paying 60% of total federal revenue. Now they pay 15%.

As always, there is an ulterior motive for the fraud. The purpose of never ending tax fights by conservatives is to use taxes and deficits as an excuse for ending social programs for the needy. Conservatives are fighting a war against the needy and they use taxes as the pretext.

The claimed purpose of a tax give-away is to stimulate the economy, so "all of the boats will rise." The needy will supposedly be better off if the rich get a tax give-away.

When are all of the boats at the same level? There is no such economic concept. Supposedly, a tax give-away will stimulate the economy and benefit everyone. That isn't how economies are stimulated. Economies are stimulated through spending, and they can get "over-stimulated" awful easy, requiring a "cool-down." Taxes are never a part of the process, because their influence is nil.

Trump's fixers decided that Trump will "jump start" the economy through tax give-away. Since the insurgence of conservatism conservativism in the eighties, conservatives have been promoting the claim that tax give-aways stimulate the economy. The results keep showing it doesn't happen. The logic is extremely flawed.

Taxes were not supposed to have been collected in the first place, if they weren't necessary. If they are necessary enough to collect, they are supposed to be used for the necessary purpose.

So conservatives disagree on the necessity. The necessity is a specific question about programs, not an question of economics. Conservatives don't want the government to produce social programs, so they waste the money and try to give some back as a means of defunding social programs.

The economic fraud of tax give-aways is that the persons who pay taxes always spend as much money as they are ever going to spend on necessities. Any tax refund just goes into investments or savings, which do nothing for the economy. Making investors more irrationally exuberant doesn't fix the economy. If the money were given to the needy, they would spend it on necessities, which would have a slight economic significance. But benefitting the needy is what conservatives try to avoid.

The concept of jump starting the economy is a sixties concept. There has to be an economy before it can be jump started. Now days, spending money on products will only jump start China's economy, not the US economy.

The fraud of it all is that after the squandering through waste, fraud and abuse including tax give-aways, conservatives pretend that they must scrape up pennies by cutting social programs for the needy. No one benefits from the tax give-away, and the only result is a war against the needy.

There is such a thing as too much debt, though wall street likes quite a bit of debt, because it collects interest on it. Conservatives only notice that there is too much debt when they are taking from the needy. Otherwise, there is no such thing as too much waste, fraud and abuse.
 

Science Home Page
Science Errors
Sociology of Corruption
Home Page
Science Errors
Sociology of Corruption