GOP’s Sneaky Tax Plan

D. S. Mitchell

The American tax system is not broken and it certainly does not need the type of disastrous overhaul being rammed down the throats of the 99.8% of the American tax payers all for the benefit of about five thousand people, and a boat load of international corporations. Trickle down economics was debunked 30 years ago and why we have allowed the Republicans to bring it back into the tax conversation is beyond me.

On December 2, 2017 at 2 a.m., in the dark of night, without a single public hearing, Senators passed a 479 page tax bill, which included several illegible hand written notes in the margins. GOP Senators passed what could become one of the most important legislative bills in recent history. If the Republicans actually maneuver this monstrosity through the congress it will revamp the national tax code, disrupt our national health care system, while adding trillions of dollars to the national debt, thereby impacting every person in the United States.

From personal experience, I know that 2 a.m. decisions are usually stupid decisions. Decisions, that when viewed from the light of the following morning are often regrettable. So, we ask, why are the Republicans so desperate to pass such important legislation in the middle of the night? Without public hearings, written seemingly by corporation lobbyists, and supported by almost no one, we keep asking, why?

It didn’t have to happen this way. There are no impending deadlines that forced such a vote.  In fact, tax cuts were the last thing that the public has demanded. The economy has charged along at an  unprecedented rate for several years, with nearly full employment; certainly not the typical time for initiating  tax cuts. Tax cuts are usually saved for economic times, when imperative action is required to stimulate a lagging economy.

For many years experts have called for tax code simplification, modernization and true reform. Republicans seized on “reform” and have like the snake oil salesmen of the past, bluffed their way in to creating a massive rewrite of the American tax system.  The result is a genetically damaged product. In other words, there are big problems with the bill.

The Senate bill, and the House bill, now in reconciliation are deeply unpopular with voters. “Deeply unpopular” has been repeated by nearly every TV pundit speaking on cable television for at least the last two months. That deep unpopularity of the legislation is the cause of the late night votes. That’s right, they just don’t want the public to see what they are doing.

During the effort to repeal the ACA televised images showed 1,000’s of protesters staging sit-in’s in legislator’s offices. In contrast the tax bill media coverage has focused mainly on experts and non-experts chewing over the various elements of the proposed legislation, which is dribbled out to us daily. But there are demonstrations. Some major demonstrations at lawmaker’s offices, and on Capitol Hill. The lack of media coverage of the huge protests is somewhat surprising to me. I think, seeing people being dragged to paddy wagons is impressive.

The most recent polling numbers on the bill’s popularity with the public are hovering at about 20%. Unprecedented disapproval for “tax cuts.” These unprecedented low numbers show the overall disapproval of the Trump presidency. The most recent presidential approval numbers had Trump at historic lows with a 68% disapproval rating.

So, are the hate numbers for the tax bill really about the tax bill or Trump? I suggest both.

Much of the disapproval rests on the fact that rich GOP donors and lobbyists are the sole authors of the bill, while middle class constituents, health care advocates, and Democrats were locked out of the process at all levels. The tax bill includes a tax break for owners of private jets. There is a tax break for parents of children who attend private school. The optics are really ugly.

Multiple known elements of the bill clearly help the most upper income Americans. Not only do provisions help the ultra-rich they also hurt poor and middle-class taxpayers. Cuts to state and local tax deductions will cut funding to public schools, where most middle class and poor Americans are educated, while parents of kids receiving private school educations will be able to deduct a few extra dollars.

There is no economic rationale for any of this other than the Republicans are in charge, and rich Americans are the donor base of the GOP. The Republicans are giving back to their base. It is that simple. This is problematic for democracy and for the law itself.

In their no holds barred race to pass the bill, the GOP Senate inadvertently nullified many corporate deductions, among those most important to their corporate donors. The Wall Street Journal reported that a research credit was forgotten which could cost corporations up to $10.5 billion in desired tax write-offs. Such screw ups may be taken care of by the reconciliation by the joint committee between the Senate and the House, or by the lobbyists who will sneak their wishes into the bill before it heads to the president for his signature, that is if it can get passed.

Trump and the Republican congress need a win. But, at what cost to themselves and the majority of American families? I say #KillTheBill. Hopefully, enough Republicans will vote against the bill because of all of the reasons stated, and all of this energy on both sides will have been wasted. It would have made so much more sense to work on a bi-partisan bill.

As I said at the start of this article the American tax system is far from being broken, and far from being fixed by this disastrous legislation. Policy swings back and forth. If the Republicans pass a reconciled bill you will see a mass suicidal episode develop in front of your very eyes.

The Republicans had a chance to create a more fair and simple, open taxation system that lowered tax rates for the majority of Americans without devastating the social safety net by draconian cuts to Medicaid, Medicare and VA health services. Sadly, the Republicans have chosen to conduct their business in back rooms crowded with lobbyists ignoring stakeholders and public discussion and any semblance of bi-partisan co-operation.

2018 is just around the corner, literally, and the entire House of Representatives is up for election. I sense a blue wave sweeping across the country. The Resistance energy is being fed by recent major victories in New Jersey, Virginia and Alabama. I suspect that the Senate, because there are less seats up for election will stay close, with a one or two seat pick up for the Democrats.  As the Republicans lose power in both houses. and the Trump presidency is paralyzed by scandal, I expect much of the GOP tax plan, if passed, will be rescinded. At least that is my hope.

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Dar