No matter what details pop out of the “Cut Cut Cut Act” (wow! Donald Trump actually pays attention to one detail of a major piece of legislation), we need to remember one basic fact: this Republican tax reform plan is fiscally irresponsible because, amidst a record national debt and projected growing deficits over the next decade, Republicans are proposing to cut taxes (mostly for the rich) further with no means of offsetting the ensuing $1.5-trillion decrease in revenues.
Republicans can point to no immediate economic crisis warranting such a tax cut:
In fact, it would be hard to find a less auspicious moment to cut taxes. There is no downturn calling for fiscal stimulus. Tax collections are not high by historical standards. Revenues are too low to cover obligations. The federal budget has a large and persistent deficit, which the tax cuts would aggravate [Steve Chapman, “Republicans Embrace Tax Cuts and Ruinous Debt ,” Chicago Tribune, 2017.11.01].
Their only promise of recompense is economic growth, the Reagan-era voodoo economics and trickle-down theory that Reagan economic advisor Bruce Bartlett says is bunk:
The biggest Republican tax myth is that we had vast prosperity in the 1980s that dwarfed the growth in any other time period and that was totally and exclusively the result of the 1981 tax cut. And this is just total mythology. Real economic growth in the 1980s was less than it was in the 1970s or the 1990s.
…in their heart of hearts [Republicans] believe that only the wealthy really help the economy, and they believe that the wealthy just carry the rest of us on their backs, that we’re all worthless, and only the Charles Kochs and Robert Mercers of the world really add economic value to the economy, and, of course, this is just utterly ridiculous [Bruce Bartlett, interviewed by Kai Ryssdal, “Why the GOP Believes in a Decades-Old Tax Myth,” Marketplace, 2017.11.01].
Reagan’s irresponsible fiscal policy led to a 186% increase in the national debt, a larger percentage increase than incurred under Obama, Clinton, or any other Administration since FDR.
When President Obama was in charge, Rep. Kristi Noem used to holler about our “crushing” national debt. So did Sen. John Thune, even as the country struggled to recover from the 2008 Recession. So did Sen. Mike Rounds, who said when he was campaigning that with “The federal deficit…approaching $18 trillion dollars… we must reverse this trend before it crushes our economy.”
Now that Donald Trump is the crusher, Noem, Thune, and Rounds see no problem with increasing the national debt. If South Dakota’s Congressional delegation took their own rhetoric seriously, they would oppose whatever tax plan pops out of the Capitol today. But they won’t… so it’s time for South Dakotans to stop taking Noem, Thune, and Rounds seriously.
Drumpf’s economic advisers claimed wages would increase from 4000 – 9000 bucks per worker. If true, and it isn’t by a longshot, korporate amerika would pull off an overseas exodus to make the biblical one look tame. Buh bye jobs.
The Republicans are really, really bad at economics. When we had a severe recession, the Republicans demanded austerity, which is exactly the opposite of what history tells us is required to lift the economy. Obama and the Democrats did just enough (No thanks to Republicans) to stimulate the economy to get growth. Now that there is some prosperity (Thanks, Obama) Republicans want to explode the deficit. Wrong, wrong, wrong.
Really, many corporations are drowning in cash. They don’t need the money, and won’t use it to increase wages or increase jobs. It would be far better to put the money into the real wealth creators: the vast majority of Americans who have been screwed by the economy for 40 years. The middle class and the poor are the real job creators.
Tax reform would be good, but this is just more Republican tax “deform” that shovels money at their rich donors, and leaves the middle class paying the bill.
Plan is out! NPR has summary and full text here. I’ll make a spreadsheet and blog it later today!
Wealthy donor Robert Mercer, whose money helped elect President Trump, is stepping down from the giant hedge fund he co-heads. npr today. He is also backing out of his Breitbart ownership. thehill today. interesting. Kochs and mercers will surely benefit hugely if GOP cuts taxes by thanksgiving, but maybe that doesn’t have a chance, so the billionaires are ‘”backing out” :)
sorry https://www.usatoday.com/story/news/politics/2017/10/13/vice-president-pence-implores-koch-donors-every-ounce-support-tax-cuts/760951001/
Bob Mercer? grudznick isn’t surprised.
” By parking trillions of dollars offshore—the world’s richest people and companies make their money essentially untaxable, preserving their own wealth and depriving governments of hundreds of billions of dollars of tax revenues each year.” https://www.theatlantic.com/business/archive/2017/11/paradise-papers-panama-taxes/545198/
Kristie wants to be governor because, much like sara palin, her present Rep. job appears too tuff for her to hold onto. She wants to REPEAL THE SCARY EVIL DEATH TAX ON DADDY. Perhaps this has something to do with SD’s grab at the DYNASTY HAVEN TRUST INDUSTRY some genius came up with.
Kresge five-and-dime that’s been converted to offices in Sioux Falls, S.D. A branch of Chicago’s Pritzker family rents space in the building on South Phillips Avenue; the Minnesota clan that controls the Radisson Hotels chain has an office down the hall; and Miami and Hong Kong families rent other rooms. Most days, the offices are shut. Even when empty, they provide their tenants with an important asset: a South Dakota address for the trust company that holds their wealth. https://www.bloomberg.com/news/articles/2014-01-09/south-dakota-dynasty-trusts-tax-haven-for-rich-families