Letter to the editor: Tax cuts will hike inflation
Annually our government borrows a trillion or so dollars for its obligations on the national debt and to make ends meet in its budget. In 2015 and 2016, the tax revenue was $3.3 trillion, no growth.
Our federal government passed a $4 trillion budget that lays the groundwork for Republican-promised tax legislation. This annual borrowing, with raises in Social Security checks, is a bad signal because it's unchecked inflation. The only way a tax cut would work is that Congress would have to get rid of all the tax codes and go to a 20-percent flat tax rate. Then we would all pay more taxes. A tax cut would work in a debtless society, but we are not.
The Federal Reserve holds $5 trillion in Treasury notes that it cannot sell because interest rates on them are too low to compete in the world market. Raising interest rates lowers the inflation rate, but that causes more billions to be paid in interest on our national debt. So you pay more for goods and services.
This Ponzi scheme between the U.S. Treasury and the Federal Reserve is causing inflation. The Federal Reserve is basically printing money to run our government. A 3.5-percent annual continued GDP growth rate — really? How can you cut tax revenue when you annually borrow or print a trillion or so dollars? Borrow more?
The truth is, if Congress has its way with tax cuts, then we are going to have double-digit inflation and interest and unemployment rates.
George O. Curry