I admit that I don’t watch Fox News, – I can’t take it and have even gone so far on a business trip as to check out of a hotel that constantly aired it in all of the common areas. When my daughter alerted me to the comments that were attributed to Bernie Marcus, the billionaire co-founder of Home Depot during a segment on Fox, I had to check it out myself. It was sad and I thought to myself; Really, has it come to this?

Under discussion was the tax reform provisions that have already passed into law and which will lower taxes for some individuals on a temporary basis and lower them permanently for corporations. Although estimates vary, a $1.2 trillion deficit is forecasted as the cost of these reductions. Many Democrats have noted that the middle-class benefits are minor compared to the corporate benefits – including actions taken by some employers to offer a one-time, $1,000 taxable bonus to their employees. The theory behind the policy is that the corporate wind-fall will trickle down to the rest of us – the $1,000 bonus appears to be part of that trickle. According to Yahoo News, in responding to comments by Democrats, Mr. Marcus stated, “Come on, give me a break, you’ve got to use your brains. I mean, Democrats, use your stupid brains, you don’t have any stupid brains and don’t understand what happens.” This brought up a few issues for me.

There seems to be a general belief that tax payers have been given something, yet that is not the case. Through this change in tax policy, we are now spending our future. The only way that the $1.2 trillion deficit will be paid off is by taxpayers. So, the tax break gives today what it will take back tomorrow, with interest. That $27/week increase that my sister saw in her paycheck, will cost much more later since it essentially represents a loan. And the question remains; Who will pay back the corporate portion of the deficit?

The hope is that the corporate tax break will trigger more economic growth and that in turn will increase tax revenue. Got it. Yet that assumes that corporations will plow their windfall back into the US and drive the economy higher here. Is there anything that requires them to do so instead of just investing in a plant in Malaysia or China or perhaps to just increase their payout to their investors? There are no Buy American/Build in America requirements that I am aware of in the provisions. It is more than appropriate for anyone to have questions or reservations about policies wherein the costs are certain, but the benefits are not.

It is perfectly fine for any of us to debate the merits of any policy, but the comments were ones of derision and contribute to the general tone of incivility that characterize much of our public discourse. As a Democrat, I was offended and it broke a primary rule of business; Don’t insult your customers.

I thought about this as I left the house to pick up the crown molding I needed for this weekend’s project and I turned my pick-up to a different course. As I pulled into Lowe’s parking lot, I reminded myself that I had to call my roofing contractor to find out where the materials for my roofing job were coming from. I resolved not to contribute financially to a man who believes me to be stupid; after all, I’m not that stupid.

 

by Kevin Deeny, a lifelong resident of Levittown, PA.