Just taxes today, I have no strength to talk about Trump : (
The House has submitted it’s tax plan. It’s a mishmash of Republican compromises that leaves no one particularly happy and yet enough House Republicans are likely to vote on it to pass it in the House. Much like the attempt at Repeal and Replace, it is going through no committees, no review, and will not have any bipartisan input whatsoever.
The House has run out a couple talking head reps to make the rounds on news outlets and they, to a person, avoid any sticky questions and rah-rah up this mess like the second coming. As I outlined before, Republicans are in the unenviable position of having to make right that which is not fixable by it’s own constraints. They can either make the majority of everyday Americans happy and as a consequence, well exceed the already built in addition to deficit…and be called liars. They could reverse course on attempting to make big business and rich dudes happier and thereby make their billionaire supporters very, very unhappy and again appear to be liars.
What House Republicans are attempting to do, is thread the needle on some middle ground: keeping big business and billionaires very happy, some average American meh…ok, and some Americans very, very unhappy. They’ll still be known as liars to most. At this point, it won’t matter because the House version won’t pass the Senate.
Having not learned their lesson with the attempted Repeal and Replace, Republicans are doomed to repeat their mistake and not pass a tax reform bill under the conditions in which they are currently operating. Not to mention the fact that this hard sell of economic trickle down from decreasing the corporate tax rate from 35% to 20% has some Americans scratching their heads…and the rest already knowing this is a sham. It’s a sham because the average effective, real tax rate is currently around 18.5% for corporations and there is currently no mention of closing the deductions, and myriad ways to account for and disburse income, that cuts their current rate almost in half. And yes, those are deductions, just like you and I currently have, as opposed to what House Republicans are quite purposefully referring to as “loopholes,” so that you must assume it’s something you’ve always been taking advantage of. You don’t deserve to itemize your deductions because you have a fucking mortgage or live in a high cost-of-living-state or have student loans or because you’ve been very sick and you have a lot of medical bills. You don’t deserve those “loopholes.” You’ve been abusing the system and that’s bad.
US Corporations, as a whole, are already awash in cash and Congress would like them to pay less into the system and also “repatriate overseas cash” (that overseas cash is actually already here in the US, but it’s not in the hands of shareholders yet) so that they can get their hands on some righteous piles of cash. Ostensibly, these giant piles of cash would be magically transferred into new jobs and oiling the overall economy of the US.
Here’s the order of any corporations concerns:
- Themselves (shareholders)
- Creating new jobs, if it increases shareholder’s content.
How the overall economy is faring is of no particular concern to any corporation, so long as it doesn’t affect their model and why would we expect otherwise? Expansion isn’t necessarily a concern to any business, financial growth year over year is. Sometimes expansion is required and that can just as easily take form in acquisitions. Also, improvements in productivity or layoffs or production streamlining can improve the bottom line or any combinations of all of the above. To assume that more cash on hand necessarily leads to cumulatively more jobs is disingenuous at best.
House Republicans have also decreased the Estate tax penalties and will totally do away with it in 6 years. They’ll tell you this is all about farmers or some shit. Don’t buy it for a second. This is to keep the wealth of the top .2% richest people in their families, so that it will once again be possible to build dynasties.
In case you were wondering, yup…this “tax reform” is clearly to Donald Trump’s favor. Would be cool if we could see his tax returns, huh.