I just assumed that the ridiculousness of the GOP tax cut plan would eventually catch up with them and they would either abandon it, or more likely, make it less ridiculous. But that hasn’t happened.
They’re on the verge of:
- kicking millions off their health insurance
- destroying graduate degree programs in critical fields like science by making grad students pay taxes on their tuition
- eliminating medical for the sick and classroom deductions for teachers
- eliminating or reducing the state and local taxes deduction
- potentially driving smaller mortgage lenders out of the market with an obscure change to how they’re taxed on revenue streams
- hurting renewables investments by companies by making it less attractive to invest in them
- raising taxes slowly over time for most americans as the tax brackets would become tied to the lower chained CPI rather than the CPI
- Adds another $1.5T to our deficit, assuming it produces the economic growth they claim, PLUS the cost of interest
- more, more more…
Some of these things will change. But the basics are this. They’re stripping these benefits because they want to pay for lower corporate taxes and elimination of the estate tax. The corporate tax cut will cost $1.1T and the estate tax will cost $300B. That’s $1.4T out of a $1.5T tax bill. The rest is just window dressing. This is what this tax bill is all about.
The argument on corporate taxes has always been that we could raise revenue by cutting them. And that’s true, by cutting them to…maybe…28%. So why have republicans raced past that number and refused to budge?
Think for a moment about who they’re serving. If you listen they’ll tell you.
“My donors are basically saying, ‘Get it done or don’t ever call me again,'” the New York Republican told The Hill.
Sen. Lindsey Graham said the “financial contributions will stop” if they didn’t pass tax reform.
“The most excited group out there are big CEOs, about our tax plan,” the president’s chief economic advisor said on CNBC.
Keep in mind, in this day and age, a single happy or pissed off donor can single handedly keep a challenger in or out of a race. We have created a system where we have given so much power to the rich that republicans don’t feel like they can afford to say no to them.
Republicans are rushing at breakneck speed to get this passed before anybody can scrutinize it, and I think many have stayed on the sidelines waiting for this to fix itself. But republicans aren’t going to change it until they fear voters more than they fear donors.