GOP Writes A Tax Cut Bill That Hurts Millions

D. S. Mitchell

The GOP #TaxScam will add nearly $2 trillion to the federal debt in just 10 years. The proposed tax cuts will not pay for themselves as the GOP leadership argues that it will. Lies, just blatant lies. In fact, the debt created by the bill will be left for the next several generations to pay off.

Just like Paul Krugman concluded in his great New York Times article last week, this bill will transfer money from FUTURE middle class and poor Americans to giant international corporations and the wealthiest 1% of individuals. In addition, these bills (House/Senate) will create new incentives for businesses to move production offshore and increase the trade deficit. Why on earth, would we want to benefit foreign countries and harm the blue collar workers that President Trump says he is working for?

Trump is claiming there will be an incredible 10% growth over the next decade. This claim is countered by studies from Urban-Brookings Tax Policy Center and Penn-Wharton Budget Model, both of which indicate that the Senate Bill’s impact would be from 0.3 to 0.8 per cent. Expert consensus have discredited House Speaker, Paul Ryan’s claim that the legislation would energize the economy and make it more competitive globally. In fact, some experts are claiming the tax bill will slow the economy.

At the core of these bills is a cut in the corporate tax rate to 20%, from 35% (before adjustments), that the administration and congressional leaders argue will encourage businesses to invest in expansion, hire more people, and give workers raises. These claims have been largely debunked.

Past cuts to the corporate tax rate in the U.S. & Britain did not ignite economic booms or produce higher incomes. In fact, many business leaders advise that a big tax cut would not propel them to re-invest or give employee’s raises. With the economy at near full employment and corporations swimming in money, it is hard to see a tax cut doing much to stimulate business development.

Experts are sounding warnings. The bills will lower tax rates for foreign earnings. The bills actually encourage businesses to move more of their operations overseas. Yes, that’s what the bills seem to do. The bills exempt some of those foreign profits from United States taxes entirely.  Companies would be able to claim taxes paid in high tax rate countries like Japan, as a credit against profits earned in countries like Bermuda that has no corporate tax. This isn’t keeping the assembly line in Sioux Falls moving. Such blatant and disgusting manipulation of the facts is outrageous.

An article in the New York Times put it this way, “Economists also expect the tax bills to lead to bigger trade deficits because the government would be forced to borrow more to pay its bills, driving up interest rates. Those higher rates would prompt foreigners to buy more United States bonds, driving up the value of the dollar. That would make American exports less attractive to other countries  and imports cheaper to American consumers. American factories and their workers would become less competitive in the the global market, adding new victims to the ‘rusted-out factories scattered like tombstones across the landscape of our nation.’ That last quote was taken directly from Donald trump’s Inaugural Address.

Republicans appear to be hoping that Americans will be so happy to get temporary tax cuts that will kick in next year that they will forget that the 0.2 % of individual Americans will be handed billions of dollars in tax cuts and protection from the dreaded estate tax, and that international corporations will be handed billions of dollars to take overseas.

It will take at least three Republican senators to vote no to stop this GOP created disaster. Many are asking, are there three such Republican lawmakers with the integrity and decency to stop this nightmare. Protestors have appeared on Capitol Hill and demonstrations are beginning to take place around the country in opposition to the GOP #TaxScam. Current public disapproval for the tax bill is running at between 75-83%. With numbers like that, hopefully we can #KillTheBill.

Calamity Politics is an on-line news magazine that confronts the issues of the day with wit and sarcasm. Join me in my Resistance to the Trump dictatorship. Join the Resistance.

Dar