taking tax breaks with a grain of SALT
McGurn observed that the Vermont socialist had “been doing the Lord’s work on taxes” with Sanders’ criticism
that most of us lack the means to put money behind. The savings of the middle class could never have created Silicon Valley. It’s all a reminder that tax cuts for the rich amount to tax cuts for all of us. When they get to keep what’s theirs, whether earned or inherited, we all get a boost in pay by virtue of unspent wealth being used to boost existing businesses, or to vivify entrepreneurial concepts that were formerly just that: concepts. In the words of Adam Smith: It is by means of an additional capital only that the undertaker of any work can provide his workmen with better machinery, or make a more proper distribution of employment among them. There are no companies, no jobs, and no advances in how we work absent investment first. Tax cuts for the rich are a raise for all of us . Period. Now, it should be clarified that most who view the revival of the SALT deduction in critical fashion would nod their heads along to what I just wrote. Try as Paul Krugman might to pour cold water on the genius of There are no companies, no jobs, and no advances in how we work absent investment first. Tax cuts for the rich are a raise for all of us. Period.
of Democratic party efforts to revive the State and Local Tax deduction – otherwise known as “SALT.” McGurn was pleased because back in 2017, President Donald Trump signed into law the Tax Cuts and Jobs Act. The Act included a $10,000 cap on the federal tax deduction of taxes paid by individuals to cities and states. McGurn added that Sanders “rightly appreciates that the SALT deduction is a big fat tax break for rich people.” OK, but since when do Republicans look askance at tax cuts for the rich? Don’t they properly disdain class-warfare stances? Much more important, any change in the tax code that reduces the burden placed on the rich is logically a very good, very pro-growth development. See the opening paragraphs... The rich aren’t like you and me. They aren’t because, as evidenced by the adjective attached to them, they have enormous amounts of unspent wealth . Which is another way of saying that the rich uniquely have the resources to fund gigantic commercial leaps. PUTTINGWEALTH TOWORK Short of stuffing their immense wealth under a mattress or into endless coffee cans, the rich have no choice but to put their wealth to work . Yes, what the rich don’t spend is, logically, invested, often in intrepid ventures
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August 2021
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