I know, I know, this doesn’t look like local news. But it most assuredly is closely related to every state, city and town in this nation. It directly affects corporations investing in the U.S. as opposed to investing in foreign countries and preventing self-serving stock buy-backs, artificial increases in stock values and market-consolidating mergers using profits that aren’t taxed because of low corporate tax rates that have dominated the economic landscape since the late 1980s.
Former President (and WWII General) Dwight Eisenhower favored high tax rates on the wealthy and their corporations not to just take their money and waste it, but rather to threaten to tax their profits and motivate the wealthy and their corporations to invest their profits in the United States rather than overseas – in short, reducing their tax bills while growing the American economy.
Economists say that heavy corporate investments in the United States (to avoid having to pay higher taxes) was the primary financial engine of the epic economic boom of the 1950s and 60s that propelled the American economy to dizzying heights of success – so much so – that we put men on the Moon in our spare time and had record numbers of college graduates elevating the United States’ economy (especially its technical industries) and its people to the good life with economic standards that haven’t been seen since, among all economic classes of citizens.
But, this week’s House and Senate majorities approved yet again another low-ball tax rate for both the wealthy and their corporations who promised again that once the rich get richer, they’ll start investing in their own country when the fact of the matter is that their extra “non-taxed” income has always been invested overseas in cheap labor countries like China, Malaysia, Vietnam, Hong Kong, Taiwan and others. This is, in fact, the third attempt to prove that making the rich richer makes everyone else better off. It’s failed twice in the recent past and most economists predict it’ll fail again. They say making the rich richer, along with members of Congress, doesn’t cause money to trickle down to everybody else. Former Republican President George H.W. Bush called it “Voodoo Economics.”
It all harkens back to the statement of former Republican President Dwight Eisenhower, whose no-nonsense approach toi separating out good information from bad, helped America defeat Nazi Germany in the Second World War. His statement here is over 60 years old, yet still rings true to this day about the plain truth on how to direct human economic behavior in ways that helps everyone – not just a small fraction of those already at the top of the financial pyramid: