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The purpose of the Trump 2017 Tax Reduction Act which expires the end of 2025 was to reduce taxes for billionaires and corporations. Normally tax cuts are implemented to stimulate a weak economy. The economy in 2017 was strong, and interest rates were low, so credit-worthy businesses had low interest money available if they wanted to expand. The result of the tax reduction was an unnecessary increase in the deficit. The corporate tax savings increased executive bonuses and stock buybacks but fell far short on creating as many jobs as Republicans promised.

Republicans will be proposing cuts to various programs that primarily benefit ordinary working people. These programs provide the basic services that people rely on to maintain a reasonable lifestyle. Unfortunately, the real purpose of cutting spending for programs that benefit real people is to provide the cover to extend the tax breaks for corporations and billionaires. Even Warren Buffet has argued that high income individuals should be paying higher tax rates.

Paul Krugman, the Nobel economist, has described Trump’s proposed policies as regressive that will effectively redistribute income away from working class voters to the top. Tariffs on imports will raise prices on products that consumers need. Reductions of support for education will increase property taxes or reduce the quality of education. Healthcare costs will increase, and services will become less accessible. Reductions in Social Security, Medicare, Veterans and other programs people depend on to survive are also part of the budget reduction scheme.

Our Congressman Brad Finstad is a member of the DOGE Caucus which is focused on making these and many other budget cuts so billionaires can keep their low tax rates.

The recent Trump federal payment freeze stopped payments for police, farm, and education programs. The freeze also targeted basic programs used by ordinary people such as meals-on-wheels, school lunches, and housing for homeless veterans.         

The pressure campaign to extend the tax cuts for the rich is beginning. The National Association of Manufacturers has released a self-serving study that predicts disaster if the tax cuts are not extended. Remember, the original tax cuts were initiated when the economy was strong and accomplished nothing other than increasing the deficit and providing a windfall to corporations and billionaires. It’s an expensive bait-and-switch.

Tax breaks that might benefit small businesses and the economy such as accelerated depreciation or first-year research and development expensing would be more productive than tax breaks for billionaires.

Don’t be deceived about the true purpose for federal budget cuts. The Republican tax cut extension game plan is clear. Working people’s standards of living will be sacrificed so the rich can keep their tax cuts.

Joe Pacovsky

Hayward, MN