We have to reduce the corporate rate.
Jay can tell you that they don’t come much farther left than I am. However, I agree with this totally, with a disclaimer. I believe that the protections we give to corporations should only be available to those that prove to be in the public’s best interests, and not simply as “job creators”. Goodbye polluters and big box importers unless they can prove that they perform a function that is unique and indispensable to the nation, without balancing good with harm. Then, not only their earnings, but also their dividend payments to shareholders should be tax exempt. The concept that a single person corporate entity watching computers make millisecond stock trades is a viable corporation shows how badly we bastardized what was once a valuable tool.
Every recession in the past 60 years we have a tax cut.
If you want to find a common causal link to recessions you can go back much farther than that. Every recession, and depression, was preceded by the government getting too close to a balanced budget, or worse a surplus, and they were only mitigated by greatly increased public spending at the federal level. Such efforts by the federal government to reduce its debt place less currency in the economy and force leveraging of private sector bank debt. When the bills come due and have to be paid with “real” high power money that only Congress can create the whole thing comes crashing down if that money isn’t there, or is mostly sequestered in wealth accumulation.
Congress is the monopoly issuer of the nation’s currency and is not restricted in that by revenue. In fact, the federal government has no revenue, as taxes only draw down currency in the economy, not funding anything. There is no mechanism at the Fed or Treasury that makes tax collections available for spending on appropriations, and all spending is “new” money. The issuer of the currency neither needs, nor uses, currency obtained from anyone to spend, so currency used to settle tax liabilities is simply “canceled”, no longer considered money. Tax revenue is an oxymoron promoted for consumption by regular morons. Spending has to precede tax collection or there is no currency to collect, so spending funds taxes, not the other way around.
Once your perception of spending and taxation become consistent with reality you understand that the “deficit” is the only income the private sector has that doesn’t require it to take out loans to fund the goods and services it provides to provision the government and pay for programs, as well as its own needs. When it accepts the currency that Congress creates in exchange for those goods and services a contract is complete with no debt attached for either party.
Congress has the ability to levy taxes to give demand to the currency and to control inflation, but clawing back all payments it makes to the private sector simply because some con men labeled them “deficits” is not sustainable, as we discover every time we try it. Actually paying off the national debt would remove all currency from circulation and force default of all private bank debt, but the idiots we are prone to electing seem to think that is the path to prosperity. The next time it all crashes around our heads Congress should fire all of the highly paid and educated economists with their pet theories and bring in a few reasonably math literate fifth graders to explain it to them.