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My Point of View by Joseph Pacovsky

Our economic recovery is stalling out and a recession is now looming, and it’s the result of the Trump administration’s economic braindead incompetence. His reckless tariffs and other economic chaos are sabotaging consumer and business confidence.

Republicans are proposing that billionaires should get tax cuts to avoid a recession. Trickle-down economics does not work. It only makes the rich richer at the expense of everyone else.

Programs and essential services used by ordinary people are being sacrificed to find money to give tax cuts to billionaires and corporations. They even include slashing medical research by the National Institutes of Health. Not only does this foolhardy funding cut forgo the robust economic return on investment, but slashing research will also eliminate future cures for diseases that would save people’s lives.

One way low-income taxpayers will lose includes eliminating the childcare tax credit. Child care assistance allows many to join the workforce, which improves the economy for everyone. Republicans want to add tax revenues off the backs of people trying to improve their lives by taxing student scholarships. Also, employee fringe benefits which are currently not taxable are a target to give Republicans additional revenues to offset tax cuts for billionaires. One example is counting the value of employee parking as taxable income.

Budget reductions planned by Republicans include cuts to Medicaid. There is no other way to meet their goals. Medicaid is not only for low-income people but includes state grants that make insurance plans available for farmers, business owners and workers who do not have employer-provided health insurance. Medicaid payments also help rural health care services and nursing homes keep their doors open.

Republicans argue that billionaires’ taxes are too high. Billionaires have gained their wealth because of the social system in the United States. Taxes paid by ordinary Americans provide the education system that produces skilled workers private enterprise needs. The road system that moves their products is provided by taxes paid by everyone. The internet, which has generated significant wealth, was funded by the Department of Defense and taxpayers.

In other words, billionaires could not have made their fortunes without government investments and other people’s labor.

The idea that billionaires need their tax cut because the economy is declining is bogus. Trump chaos is purposely torpedoing the economy to justify tax cuts for billionaires.

The Republican economic chaos and tariff threats are undermining the economy and needlessly increasing the danger of a recession.

The federal deficit must be addressed. Gutting services used by ordinary Americans to justify unneeded and ineffective tax cuts for billionaires will not reduce the deficit, but it will inflict widespread pain on our communities, especially rural areas. We will feel all the losses and none of the benefits. Either the state will have to raise taxes or property taxes will increase to cover the gap in funding or we will go without.

General McAuliffe’s famous reply to the German’s surrender demand at the Battle of the Bulge covers the situation perfectly “Nuts!”

Joseph Pacovsky is a member of the Freeborn County DFL Party.