Once again, the republicans just can’t let it go. They’re so DESPERATE to pass what they promised, nevermind that nobody actually wants that. Now they’re adding Obamacare repeal to the tax plan.
They might say they’re only repealing the mandate, but the law falls apart without it. It’s not like Obama just felt like making everyone buy insurance because he’s a closet commie.
But this time it’s more complicated because it’s being added to find more money to pay for tax cuts for the rich. See, Republicans have to stay within 1.5 trillion over a decade or they can’t pass this within the stupid rules in the Senate that were never designed to be used this way. But since their agenda is never going to be bipartisan, that’s where we are.
But I digress. They have to stay within $1.5T, and the corporate tax cut alone will cost, even using conservative estimates, $1.1T after accounting for increased growth. Throw in another $300B for repealing the estate tax and all you’ve got left is window dressing to be able to say it’s really a middle class tax cut. Hence the scramble to find ways to increase other taxes without pissing off their voters.
How they’ll make this work is a mystery (even aside from the fact that increasing the deficit for economic stimulation seems like a bad idea in an already strong economy) and as far as I can see, they’re just trying to pass SOMETHING so they can hammer it out in Senate/House conference.
But there are only so many possibilities. Republicans REALLY don’t like being hemmed in by reality. They kept trying to come up with some magical solution to ensure everyone is covered by affordable health insurance without requiring healthy people to buy health insurance. They keep trying to find some inexplicable cause for why our planet is warming (cosmic radiation!) even though we know it’s either the sun or the atmosphere, and it’s not the sun. Now they want to believe they can find at least half a trillion in wasteful tax deductions without hurting significant portions of the middle class. There are just only so many places to look. Mortgage interest deduction, state and local tax deduction and charitable interest deduction.
All of these are pretty popular among the upper middle class. Whether we should have them is perfectly debatable, but when your chief salesperson sells this tax cut as a cut for the middle class that won’t benefit the wealthy, you’re kinda backed into a corner.
The corporate tax cut SHOULD be cut. The Laffer Curve is usually pretty laughable, but this is one of those times when cutting taxes could actually be revenue neutral. But that’s at about 30%, maybe even 28%. That sounds like a really good idea right? But republicans blazed past that and just kept right on going until it seemed obscene.
I don’t think of myself as especially anti-corporate, but does anyone think that what we really need right now is to increase profits for major international corporations? Not that it’s bad, it’s just not the pressing need our country faces right now. And it’s a terrible way to stimulate the economy.
I’m not sure what republicans will pass on this. Surely they’ll pass something. If they’re smart, they’ll pull the corporate tax cut back to AT LEAST 25% and drop their push on the estate tax. Do that and this gets a whole lot easier.