Senator Cory Booker
Senator Robert Menendez
Congresswoman Bonnie Watson-Coleman
Dear Representatives:
According to President Trump, “The economy is doing great.” I agree, though I would give most of the credit to Barack Obama.
My instinct is that when things are going well, that is the time to rectify financial problems created under more adverse circumstances. Personally, during my career, when I would get a raise or a bonus, that was the time to make an extra mortgage or car payment; make sure all my credit cards bills were paid; put money into savings; invest in stocks; replace an old appliance; and yes, take a little something to go out to dinner or put toward a vacation.
In the late 1990s, when Bill Clinton was President, the economy was also flying high. There was a budget surplus and there was talk of paying down the debt. Yet the country chose to elect a Republican in 2000 (actually the Supreme Court elected him, but that’s another story) who promised to give away the surplus (“Give the American people back their money”) in the form of tax cuts, mostly to the already wealthy. There was also a war and paying down of the National Debt was forgotten.
History teaches us that the economy has its ups and downs. So when the Great Recession hit during the George Bush Administration, tax revenues decreased and the deficit exploded.
When the economy is down, as it was during the beginning of the Obama Administration, that is the time to cut taxes, to stimulate the economy. His policies put more money in the pockets of consumers who spent it and created more demand for goods and services. This strategy, with a little help from our Fed, brought an end to the recession and ushered in one of the longest bull markets in our country’s history.
Now that the economy is up, it is time to fix old problems: build and repair infrastructure; decrease the deficit and pay down the debt; make the adjustments necessary to sustain Social Security and Medicare for the long term; maybe find a way to bring about universal health care.
Now is not the time to cut taxes, giving huge windfalls to the most prosperous people and businesses in the country, while adding to both the deficit and the debt. Only a deluded fool or a dupe can believe that there will not be an eventual downturn in the economy. And what happens then, when the debt is already monstrous and the interest payments huge? What happens when revenues fall and more money is needed to strengthen the safety net? Where will the money for stimulus come from? Many are predicting that the cuts will be to Medicare, Medicaid, and Social Security. The poor will pay for the excesses of the rich. And the fast talking spinmeisters will be quick to point fingers in the opposite direction; blaming everyone but themselves.
I could get on board with “reform” and even reducing the top line corporate tax rate. But reforms should be to close loopholes, not open new ones. Close the loophole that allows corporations to stash billions overseas without paying any taxes. Close the loophole that allows millionaires and billionaires to park money in offshore accounts to avoid taxes. Close the carried interest loophole for hedge fund managers.
The current tax bills in the Republican Congress are con jobs. The Biggest Tax Scam in History, says Paul Krugman. They steal from the future to fill the troughs of the most avaricious and well connected people in the country. Armies of lobbyists and donors entice and coerce OUR representatives to protect their breaks and lower their rates. And the very wealthiest want to end the Estate Tax and pass on their billions to their children tax free. And how can it be good for our country to punish teachers by taking away the deduction for money they spend in their classrooms? Even worse is the effect on Graduate Students who would be taxed on their tuition waivers. Why the war on Education and Healthcare by the Republican majority?
The process is shrouded in secrecy and haste. There is no attempt to work in an open bi-partisan way to craft a logical framework for the betterment of the whole country over a long period of time. To the victor go the spoils is the old saying and the big donors are going to reap big returns on their investment. Call it corruption or call it plutocracy; it is clearly party and power over patriotism.
I don’t think there is are easy answers to all our problems, but we should start with common sense; with looking into the future with focus and honesty, not with rose colored lenses and fantasy projections. We need to work from the bottom up, helping those with the least, to enable the demand that will produce investment and supply. “Trickle Down” has been empirically shown not to work and We’re Not in Kansas Anymore. We need to work together to find fair, honest, effective solutions and not just listen to the squeakiest wheel.
There are a lot of smart people in Congress. It would be great if they were motivated to accomplish something besides their own reelection; to work as a team for the good of the country. That is the message I hope to convey to my Representatives and for them to carry to their colleagues.
Thank you.
Howard Flantzer
Kendall Park, New Jersey
Cc: My Facebook Page and a few friends
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