- Cape student sues, accuses school officials of slamming her to ground multiple times (04/28/16)47
- Neelys Landing man shot, killed by highway patrol trooper after traffic stop (05/01/16)42
- Bob Evans restaurant in Cape Girardeau among chain's 21 closings (04/26/16)9
- Missouri House votes to allow concealed weapons without permits (04/28/16)8
- Police report filed, but no charges in incident at Cape Central (04/29/16)40
- Two hurt in motorcycle wreck on Interstate 55 (04/25/16)1
- 2016 All-Missourian Boys Basketball (04/29/16)
- Senator introduces bill for I-57 that would connect Sikeston with Little Rock (04/28/16)4
- Law firm requests information about Cape's traffic cameras (04/25/16)3
- Local lawmakers split over failed medical marijuana bill; voters may have a say (04/26/16)19
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.