Liberal Political Blogs Don’t Like the Tax Plan
And liberal political blogs are right to hate it. Here’s why.
I do agree with Rubio that entitlements need restructuring, since the numbers just don’t add up as Medicare & Social Security are surely bankrupting us. Making the tough decisions is very unpopular & politically toxic, but ignoring the problems are leading to a fiscal disaster. Somewhere among the related articles is a link where Janet Yellen says the national debt should keep people awake at night. So see the article below on Rubio’s concern, but most of the links below take us to assessments on the tax bill being rushed through Congress. By any objective viewpoint, the plan won’t come anywhere near the rosy projections promised by Trump. At a time the wage/wealth gaps are growing faster than ever, this new tax bill looks to make it even worse. It will also worsen the debt. So there’s a good reason the liberal political blogs are against this, but why do conservatives have such blind faith?
The only thing I know for certain on the tax bill, it’s not nearly as bad as the Dems say but it’s not nearly as good as the GOP says. With all the political theatre & posturing, it’s really hard to know what to believe, & even GOP reps who’ll vote for this bill don’t really know what to expect. There’s such intense pressure for the GOP to pass SOMETHING, a lot of reps are figuring as long as it doesn’t do more harm than good, they’ll pass it. But this poorly designed bill will not produce the intended benefits, which we’ll likely discover a couple years from now when the deficits are rising more than economic growth or wages. That’s even assuming it gets passed, since the GOP is desperate to pass it but it’s such an unpopular & difficult piece of legislation to get through.
Most large corporations are already flush with cash yet wage growth is barely budging, which shows tax cuts should be done from a bottoms-up approach to actually help the plight of the working middle class. The GOP plan is more of a top-down approach which relies on the outdated trickle-down dogma, which is the exact wrong approach. In the modern world, we should have learned from the failed George W. tax cuts & more recently the Kansas experiment at the state level, to realize a smarter approach is needed. The fact is we’re more of a global economy in this new century, plus trickle down naturally worked to spark economic growth back in the 1980’s when the top income tax rate was lowered from 70%. Now with the top rate already under 40% & federal deficits way too high already, we have much less wiggle room. Plus large international conglomerates have different priorities than reinvesting in their workforces.
Reviewing the links below, The Hill article on a pro-work agenda correctly surmises there should be a much greater emphasis placed on labor force participation, which has been stuck in the low 60%’s for way too long. Whereas the links near the top usually deal with our lack of financial health, today we see articles of concern over our physical health. In the link, “Trump ran for the forgotten, then he forgot them,” the article explains how Trump voters got had & starts off with this paragraph:
How does President Trump continue to pass for an economic populist even as his policies and appointees are those of an economic royalist? The Republican tax plans he supports are a prime example: They favor corporations and upper-bracket individuals and rely on the long-discredited “trickle down” theory to offer benefits to workers.
One Rubin article shows Kasich would make a far better President. In the article, “Upside down tax plans hurt working Americans,” it starts out with these insights followed by an interesting graph displaying the disturbing direction we’ve taken:
America’s recent economic history has been disruptive. Yet, the tax bill passed by the House and the very similar Senate bill are huge steps in the wrong direction; they will only make our economic problems worse.
The past 35 years have seen a dramatic transformation in the American economy: Middle-class wages have stagnated, economic inequality has surged and labor’s role in the economy has diminished. Children no longerexpect to out-earn their parents, and demographic challenges and a high stock of public debt place large burdens on future American workers.
It was not always this way. In the decades after World War II, income gains for those in the bottom 90 percent of households were larger than those for the top 10 percent, wages grew with the economy, and the vast majority of children out-earned their parents. Labor’s share of national income was steady.
Before 1980, Growth Lifted all Boats. Since then, not so much.
In the Bloomberg article, The best way to spur growth, help the poor not the rich, these are enlightening insights: “You don’t need a Ph.D. in economics to see that’s something wrong with trickle-down theory. If it were true, inequality would be self-limiting. As soon as the rich started getting richer, wealth would cascade like the Niagara down to the benighted lower classes. Instead, the gap between rich and poor keeps growing.” The article goes on to cite studies which indicate corporations don’t use the extra cash to invest so much in capital spending, but rather the priorities become debt repayment, share repurchase & mergers & acquisitions. The next Bloomberg article just below reveals corporations would make sure the spare money goes to investors, not workers. So overall the evidence indicates the Trump tax cuts are wrongheaded when their reliance on supply-side trickle-down barely becomes a drip. The very next link from Politico on trickle-down says this:
And an already deeply unpopular bill — that includes immediate hikes on some individual taxpayers — could become a serious political headache in 2020 and beyond. “Frankly, I think they are bonkers,” David Mendels, former chief executive officer of software firm Brightcove, said of the GOP banking on a lower corporate rate to generate bigger worker paychecks. “It really doesn’t work that way. No CEO sits there and says, ‘When my tax rate goes down, I’m going to hire more people and pay them more.’”
There’s also an article by a Depression historian about the GOP tax bill being straight out of 1929, which includes these two paragraphs as a fair warning:
The crash followed a decade of Republican control of the federal government during which trickle-down policies, including massive tax cuts for the rich, produced the greatest concentration of income in the accounts of the richest 0.01 percent at any time between World War I and 2007 (when trickle-down economics, tax cuts for the hyper-rich, and deregulation again resulted in another economic collapse).
Yet the plain fact that the trickle-down approach has never worked leaves Republicans unfazed. The GOP has been singing from the Market-is-God hymnal for well over a century, telling us that deregulation, tax cuts for the rich, and the concentration of ever more wealth in the bloated accounts of the richest people will result in prosperity for the rest of us. The party is now trying to pass a scam that throws a few crumbs to the middle class (temporarily — millions of middle-class Americans will soon see a tax hike if the bill is enacted) while heaping benefits on the super-rich, multiplying the national debt and endangering the American economy.
Amongst the numerous links to tax articles, we see various op-eds explaining how this new bill does a poor job of helping some of the groups/sectors which need the most help, like small businesses, education & charities. A little further on down a Slate link says that income inequality isn’t without costs, which goes a long way toward explaining why the GOP insistence on trickle-down tax policies is so wrong for our current situation. “Can you move toward greater income equality without asking America’s richest to give something up? In a word, no. On The Gist, Richard Reeves argues that the upper echelons of the U.S. are bogarting wealth that would otherwise go to the middle class.” Also, find the link for Rubin’s supply-side dogma article. She has this whole charade pegged with this conclusion:
However, that means tax reform not just irresponsible tax cuts and it means not only looking to “other pro-growth policies, including improving the debt trajectory, entitlement reform, regulatory reform, and labor market improvements” but also expanding trade, investing in U.S. workers and improving infrastructure. Unfortunately, a big tax cut for the rich will not only make effective tax reform impossible, but it will also rob us of revenue needed to carry out some of those other pro-growth policies. We really would be better off with no tax bill than with the dog’s breakfast the GOP is cooking up.
Trump repeated his lie the tax bill won’t benefit him personally, which based on his fuzzy math if we subtract a billion or two from what he stands to gain, he might be right. So there are links to how Trump profits from his tax plan more towards the bottom. So what kind of plan have they created? The CBO says it’s more a tax cut for the wealthy & doesn’t do much for workers! It also doesn’t do enough for small business & most assuredly raises deficits! Perhaps it will raise GDP & repatriate dollars from overseas, but on the whole it looks to be a perplexing hodgepodge of misplaced priorities. But it’s so painfully obvious the big donors matter more. The conservative base should evaluate more objectively what’s really in a bill like this, rather than implicitly trusting in their GOP politicians, & they’d also be wise to realize sometimes liberal political blogs make some valid points. But as for me personally, I’d still consider myself center-right, frustrated at the way the GOP has careened out of control to the far-right.
In concluding the links, we see articles to Trump’s nihilism, immigration/DACA, a potential government shutdown, the GOP/conservatism in trouble with millennials & net neutrality. The last link is a very disturbing article about the military dropping the ball on reporting critical info needed for background checks when guns are purchased, making us sitting ducks for any deranged random shooter who wants to make headlines through a mass shooting.