Trump And GOP Deficit Hypocrites With New Tax Bill
Let us go back to a wonderful time in our nation’s history. George W Bush and his republican congress passed a $3 trillion tax cut bill under filibuster proof budget reconciliation, the overwhelming lion’s share of which went to the top 1% of wealthy Americans and big business. It was sold on the same, broken record premise of dynamic tax planning, that is, the massive growth in the economy that the tax cuts will spur will not only overcome deficits, but they will go far beyond and create prosperity for the middle class with job growth and increased wages – basically, repackaged trickle down economics. We all know how that turned out with zero net job creation after 8 years of the Bush presidency, a doubling of the national debt, and the worst economic recession since the Great Depression.
Enter President Obama who is tasked with dealing with a failing banking system and a country that had lost $16 trillion of it wealth in the form of stock market linked 401 K and IRA plans, plummeted stock portfolios, foreclosures, repossessions…I could on here, but anyone reading this (and most certainly those who lived through it) get the point. Lot’s of bad stuff happened from hope being a strategy, which is exactly what dynamic tax planning is.
As President Obama and his democratic majority passed the bank bailout to prevent our nation going from recession to depression, then later stimulus to help ailing Americans reeling after the financial crisis, after having voted for the tax cuts (not to mention deregulation of the financial system) that doubled our debt, congressional republicans were now suddenly debt conscious and relentless deficit hawks that fought President Obama at every step of his agenda crying foul about the debt that they played a very big role in creating.
Fast forward to this current tax bill that passed both houses but remains in conference, and it received a non-partisan CBO score that projected the bill to add $1.7 trillion to the national debt. While most congressional republicans still endorsed the bill, a small few sat tight to wait on the dynamic score which would take into account the economic growth spurred by the reduced tax burden on big business. That score, which is far from a guarantee given our nation’s history with trickle down economics, still only brought down the increase in debt to $1 trillion.
Nonetheless, two versions of the bill passed along party lines with only republicans supporting it. So much for the party of fiscal conservatism. Apparently, adding to the deficit is just fine with them as long as it is their idea and it is done in the name of savings for the wealthiest Americans and large corporations. To add insult to injury, part of the funding mechanism in the Senate’s version is a repeal of the Affordable Care Act’s individual mandate that the CBO projected will lead to the loss of health insurance for 13 million and spike premiums by 10% per year of the next 10 years! If that were not enough, while the corporate tax breaks remain permanent, those of the middle class who they are touting this tax reform benefits the most, will expire in 2025.
The irony of all of this is that, like the Presidency of GW Bush and teh epic failure of his tax cuts, once average Americans once again realize how hosed they will be with this tax reform bill and they once again turn to voting for democrats for the presidency and the congress, republicans will once again begin crying about the deficit that historically they continue to do the most to inflate (Reagan tripled the debt, GW Bush doubled it; while Clinton left office with a $500 billion budget surplus and President Obama cut the federal deficit in half during the worst financial crisis of most of our life times during his first term).