Guy Pacot: We need tax relief | SummitDaily.com

Guy Pacot: We need tax relief

Guy Pacot
Frisco, CO Colorado

There seems to be a lot of history revision concerning FDR’s New Deal. America experienced the largest industrial collapse in 1937 when America was in its fifth year of the New Deal. That was due in large part to the government’s “active” role in dictating to industry what wages they should pay, how they should price their goods and even how much they should produce. The government’s role in dictating business terms to industry (National Recovery Administration) was kicked to the curb by the Supreme Court.

Cole and Oharian of UCLA state in a paper from 2004 that due to the government’s interventionist policies that “magnified the power of labor and encouraged the cartelization of industries” the Depression lasted until 1943 but could have been over as early as 1936. With higher taxes on the wealthy and a government-dictated commercial sector, an environment was created that only served to penalize the private sector and keep investors out of the market. That market, by the way, did not recover to 1929 levels until 1954.

We need more than spending to recover from this crisis. We need real incentives for small business. We need real relief for corporate America that is taxed at a higher rate than nearly any other country does. We need real tax relief in the form of immediate payroll/income tax cuts, not $13 per week for the average American.


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