President Trump proposed cutting taxes the other day, and lo and behold the Democrats said the sky was falling. Just take a deep breath and think about this: (1) When you lower taxes, the government actually takes in more revenue because of increased economic activity, and (2) maybe the government should consider cutting some expenditures.
Aaron Kubasch, Winsted, Minn.
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There is no chance at all that tax cuts for corporations will create a strong middle class. It is impossible! Corporations are not going to suddenly and voluntarily share the wealth with their employees by dramatically increasing their wages on a long-term basis, by implementing profit-sharing programs, and by reinstating health benefits and retirement plans. Corporate profits have soared over the past 20 years because corporations took these things away from their employees, based on rhetoric that corporations had to do this in order to stay competitive. The competition, however, was more about return on investment for investors than it was about competition within the industry.
There is absolutely no way that corporations are going to share the wealth with their employees unless it is involuntarily pried from their fingers. In the 1950s through the 1980s, when the middle class was very strong, the task of prying money from the hands of employers in terms of wages, benefits and working conditions was the job of labor unions. When labor unions succeeded in doing this, it benefited union and nonunion employees alike. More money in the hands of large numbers of employees created the demand for more goods and services, which in turn was good for business.
If President Trump were sincere about rebuilding the middle class, he would be a strong advocate for strong unions, profit-sharing, employee-owned businesses, credit unions, and nonprofit businesses in critical areas of public welfare (like health insurance). No chance of that!
John A. Mattsen, New Brighton
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President Trump's net worth, according to Forbes, is $3.5 billion. The current top estate tax rate is 40 percent. If the president's proposed tax plan, which includes eliminating the estate tax, is enacted, upon his death, his tax plan could eventually save his estate some $1.4 billion.
Eliminating the estate tax on deceased owners of farms and small businesses makes a lot of sense, but on billionaires like the president?