This letter is in response to the message from the current representative to Congress from the Western Slope, Scott Tipton, praising the new tax reform bill. From what I have read, Mr. Tipton is not telling the whole story. The new tax structure slashes corporate taxes from 35 percent to 21 percent, hoping that the benefit will trickle down to working people. A survey of major corporations, however, shows that they plan to spend 30 times what they put in the wallets of their employees on buying back their own stock in order to boost the price of their shares which swells the compensation of their chief executives and increases income inequality.
There is no disagreement that the "reform" will balloon the federal deficit. Estimates range from half a trillion to one and a half trillion dollars. The Joint Committee on Taxation, the official scorekeeper in Congress, says that the bill will be beneficial to the economy in the short-term, but not in the long run. I think Mr. Tipton does us a disservice to tell only part of the story.