- Krispy Kreme coming to Cape Girardeau (12/14/17)2
- Light and music show: Jackson family goes high-tech with Christmas display (12/11/17)
- Former Wimpy's Drive-In owner Freeman Lewis dies (12/9/17)2
- Jury convicts Scott City man who confessed to murder; girlfriend's testimony corroborates confession (12/9/17)
- Cape schools to get two new principals, assistant superintendent (12/13/17)1
- Feds ask judge to impose $6.5 million punishment for Cape surgeon (12/7/17)9
- Two Cape County residents, including former Jackson police officer, face burglary charges in Colorado (12/12/17)
- Pedestrian struck on Broadway (12/11/17)4
- Kelso resident brings home $60K in lottery winnings (12/14/17)
- Makeover at the movies: Transformation complete inside Cape theater (12/8/17)4
More efficiency in government is best stimulus
To the editor:
I am having a problem understanding the practice of stimulating the economy by income-tax reduction. I can understand that we pay too much tax, but we are operating on a deficit economy. That means money not collected through taxes ends up as an increase in the national deficit. Since the wealthy pay most of the taxes, dollarwise the wealthy end up with the major part of the reduction. Now the investment pool (government bonds) increases by the amount of reduction in taxes plus interest. This, I feel, negates any expected stimulus.
Bottom line: It appears to me that we are swapping interest-bearing government bonds as a refund for taxes. I think the only thing that can stimulate the economy is to improve efficiency in government and industry so that more money is available for expansion.