I firmly believe tax cuts are a scam. They do not benefit everyone. Those at the bottom receive a pittance while those at the top receive a big chunk. It is merely a way of disguising a greater flow of wealth to the wealthy.
I am very familiar with the argument that the wealthy need this money in order to invest and this investment benefits everyone by improving efficiency and providing jobs. However, I think this argument is false. I would contend that the bulk of this tax dividend is used by the wealthy in other ways. They spend it on their lifestyles, invest it abroad where they can get better returns or simply take it abroad and spend it elsewhere.
London is full of empty property that has been bought up by wealthy investors from abroad as investments. They have taken money out of their own countries to London because they think they will make a big return on it.
These tax cuts really impinge on the middle and lower classes. They receive a small amount of cash in hand but the services they rely on to give them a quality of life are depleted.
I will use Britain as the example. The Tories have doled out tax cuts to the wealthy and corporations. Investment has not been forthcoming. Our schools, NHS, police, courts, prisons, libraries, youth services, roads, council services and citizens support services have all been heavily cut and are in crisis. The poor have been hammered with a great reduction in benefits that has caused great distress with the rise in homelessness, soup kitchens and food banks.
The middle classes pay out money on tuition and support for their children. People are forced to go for private healthcare. The streets are more lawless. They have to provide for their children. It all costs a lot more money than the pittance they received and they find themselves in a far worse situation.
Consequently we have a rise in gangs, more violence, more drugs, more murders, more crime and less convictions, with an angry group of people who feel unwanted and have no place in society.
The problems that beset the middle and lower classes do not impinge on the wealthy. They live in gated communities or penthouses with their own security guards and private health and education.
I contend that education, health, water, power and infrastructure are basis requirements needed by everyone. They should be of a high quality and provided for all. The cheapest and most efficient way of providing these universally and ensuring quality is for the State to provide them. I do not subscribe to the idea of competition driving down prices. Private companies by necessity are run for a profit. Someone creams off their share from the top. That is added to the bill.
To provide these services there has to be taxation. All people should contribute. There should be no loopholes for the wealthy. There should be a graduated tax so that the wealthier contribute more.
I would then give tax reductions for money invested in the country in order to stimulate growth and benefit the economy.