Expect happy outcome with GOP tax cut plan

Elizabeth Sampadian, letter Dec. 3, is certain tax cuts for corporations will not create jobs or boost wages. She knows this because a few left-of-center behavioral economists say so. However, their conclusions are guesswork, unable to be proven or disproved.

There are just as many economists who believe that freeing up corporate dollars will stimulate the economy and create quality jobs. One thing is certain: the intention of the corporate and individual tax cuts is to encourage business expansion and put more money into the hands of consumers, thereby boosting GDP growth back to the historical norm of 3.5 percent or greater.

While the real-world actualization of that happy outcome is open to argument, the decade of prosperity following the Reagan tax cuts favors that conclusion.

Ms. Sempadian’s insistence that converting to a system in which corporations only pay taxes on their overseas profits to the countries where the profits are earned will encourage outsourcing is counterintuitive. High corporate taxes and double taxation of offshore subsidiaries are promoting the flight of jobs and wages abroad and discouraging the repatriation of overseas profits.

Progressives' intellectually vacuous use of class warfare ideology to analyze tax reform produces more smoke than light.

This story was originally published December 7, 2017 at 3:52 PM with the headline "Expect happy outcome with GOP tax cut plan."