Despite every Republican willing to defend it telling us it’s a middle-class tax cut that will pay for itself, the public gets it. The bill passed by majority Republicans in Congress is massive giveaway to the wealthy (even more than the original bills passed). It detonates the deficit and it endangers Social Security, Medicaid and Medicare for the future. It’s a sop to the donor and corporate class that will never see a lasting positive impact for average Americans.
We don’t want it. A Wall Street Journal/NBC News polls shows just one in four Americans thinks the bill is a good idea. And that’s after a constant flow of misinformation from the Trump administration. After a nearly a year of lies and misdirection, people in his country simply doesn’t believe the president.
A Politico/Morning Consult poll shows the highest support for the tax bill overall: Forty-eight percent said they “support” or “somewhat support” it. But backing dropped sharply when people were asked specifically about a tax cut for big business, a key part of Trump’s plan. Only thirty-nine percent thought “large corporations” should pay less in taxes.
Republicans are gambling that the suck-up to the donor class, corporations, and the very wealthy will somehow let them avoid a devastating defeat in the midterms. The belief that they have to pass something—anything—to get on the board with a W could be their undoing.
A sugar high. Americans who will see a tax cut best not get used to it. The cuts go away and automatically return to current levels in ten years—it’s another gamble. Republicans argued that a future Congress will extend the cuts.
Corporations and real estate developers (wonder who?) are getting permanent tax cuts. There is absolutely no evidence corporate tax cuts will lead to rising wages or new jobs. In fact, quite the opposite is true. Corporate giants have no qualms about admitting that the huge windfall will be used primarily for stock reacquisition.
Deficit discipline (ok, maybe not). No serious, independent economist comes close to saying the tax cuts will pay for themselves—not now, not in 10 years, not in 50 years. In fact, the deficit will explode by anywhere from $1.5 trillion to $2.5 trillion or more. Whether you are a Republican, Democrat, independent or apolitical, this is unconscionable. Yes, Democrats have found religion about the deficit they never had before and Republicans who have spent careers fighting anything that would increase the deficit, now don’t care. It’s unbelievable.
Seven years ago, now-Speaker of the House Paul Ryan railed against then-Speaker Nancy Pelosi for increasing the debt ceiling.
Don’t look now, but you’re Medicare and Social Security are going to get whacked. So what happens when it becomes clear (if it isn’t already) that the tax cuts won’t pay for themselves? They start coming for your health and your well-being: Medicare, Medicaid and Social Security. Republicans are not trying to hide this either. They will target “entitlements” next. (And those of you collecting your Social Security, utilizing Medicare or Medicaid and you support this bill? Shame on you).
Independent analysis. The referee in all of this is the Joint Committee on Taxation—a nonpartisan and respected body. It says just 10 percent of the tax cut benefit does to the middle class.
Much is made of the success of the stock market—it’s impressive. However, let’s keep in mind that only 14 percent of American households hold direct stock in any company. “Like income and wealth, stock ownership is heavily concentrated in the uppermost echelons of the economy,” the Washington Post’s Christopher Ingraham reports: “The bottom 60 percent of households combined own just 1.8 percent of American stock. The top 1 percent, by contrast, owns over 40 percent of the country’s stock, up from 34 percent in 2001. Looked at another way, the top 20 percent of wealthy households (those with an average net worth of $3 million) own well over 90 percent of the American stock market.” That’s shocking.
Corker and other spineless Republicans. We’ve gotten to the point in political theater where Republicans feigned opposition to the Big Giveaway only to “come around” at the end, and for dubious reasons.
Tennessee Republican Bob Corker appeared to be the lone GOP member sticking to his guns on the national debt. Yet, magically, without any changes to the impact on the debt, he “came around.” The optics, at the very least, look awful for the retiring Corker or for the real-estate-developer-in-chief for that matter.
A loophole one could drive a truck through was added to the House-Senate compromise, a loophole that neither plan had in it when they stood alone. It stands to benefit those with large real estate interests…like Corker. When “advised” of the new development he was so surprised he officially asked, “Gee, how did that get in there.” Of course it goes without saying that Donald “I’m going to get crushed” Trump will also wildly benefit.
Other Republicans also turned into worms (as in, no spine). Sen. Susan Collins voted for the bill despite it removing the individual mandate of Obamacare, meaning 13 million Americans will lose their insurance and other will see premiums skyrocket. Sen. Marco Rubio was a defender of the child tax credit, until he folded. Sen. Mike Lee was just full of crap.
And oh, the new soon-to-be law will make it much easier for tax cheats.