- College algebra to be removed from Southeast required curriculum (10/10/17)1
- State declares test results for schools invalid (10/4/17)2
- Child-custody advocate: State law needs fix to provide parents with more equal custody (10/12/17)
- One of Cape's oldest mom-and-pop restaurants opens in new location (10/10/17)
- Past Rowdy the Redhawk mascot's identity revealed (10/15/17)
- Cancer will 'change your life, but it doesn't have to rule it' (10/8/17)
- Police chief, council: Cape Girardeau faces growing gun violence (10/17/17)4
- Bills addressing equal child custody to be filed, legislators say (10/13/17)
- Developer asks court to OK tax district board for improvements near Hobby Lobby (10/17/17)4
- Sikeston singer moves on with 'The Voice' (10/16/17)
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.