“Republicans are on the verge of achieving their decades-long goal: an overhaul of the tax code. But the system they have built will not last.The plan’s instability is partly a result of the process Republican Party leaders chose to make it happen. Reconciliation, which allows escape from the Senate filibuster, means that Republicans did not have to reach across the aisle. Not a single Democrat supported the legislation.
This choice has consequences. For one, the exclusion of Democrats means that there is no buy-in from the minority party that will one day, perhaps soon, be in the majority again. This dynamic is worsened by the fact that the tax legislation pits blue states against red through the limitation of the state and local tax deductions. In the end, Republicans have chosen policies that are more extreme than they would have if they had worked with Democrats.”
DL: Well done. Here are the top comments which I endorse:
mancuroc is a trusted commenter rochester 12 hours ago
“Republicans are on the verge of achieving their decades-long goal: an overhaul of the tax code.”
Yes it is a decades-long goal. No it isn’t an overhaul – it’s a heist that moves massive amounts of wealth to the top.
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ChristineMcM is a trusted commenter Massachusetts 10 hours ago
“These policies not only face the risk of being undone by a future Democratic majority, but also could indeed prove to be so lopsided as to alienate the more centrist of Republicans. Worse, Republicans now aim to take advantage of the instability they’ve created by cutting so-called entitlements like Medicare down the line, burdening the poor and the middle class.”
Actually, they kick the middle and lower classes three ways: first by raising taxes on those who might have itemized deductions in high tax states; second, making them pay the penalty for fixing deficits the GOP created in the first place; and third, making sure their “cuts” such as they are are temporary.
Once the understaffed, underfunded IRS sets these 1000 pages into rules and regulations, I believe they’ll find a ton of stuff that sets off unintended consequences.
By then of course, Democrats may take back the house and face the dirty job of fixing the GOP’s messes (which they always do).
But now, at least, Republicans can’t call Democrats the “tax and spend” party. No, the real truth is more like the “clean up party, ” fixing the messes created by the “Cut and spend” Republicans, who are gambling that the Dems will be blamed once the economy tanks.
It might be hard to prove given how this unilateral bill was rammed through without Democrat participation or votes.
And if Congress thinks all will be fogotten, I can assure them, we won’t let the public forget.
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Bruce Rozenblit is a trusted commenter Kansas City, MO 11 hours ago
The line being touted by the Republicans is that the temporary nature of the individual tax cuts exists only because of the rules of reconciliation. They are laying the groundwork for blaming the tax cut expiration on the Democrats if they don’t make them permanent next year.
How stupid do they think we are? If these cuts are made permanent, then the deficit will be much larger than the forecasted 1.5 trillion. Why don’t they increase the corporate rates in 2025 and then make the individual rates permanent? By then, if their supply side magic works, corporations will be so wealthy, they can afford to pay more in taxes. The public will have financed their growth with debt and deserves to be paid back.
But no. The deficit most likely explode under this bill. It will be much higher than forecast. That is because of the many new loopholes they opened up that are yet to be fully exploited. Give the accountants six months to launch their plans.
They also keep saying that the increased profits will be reinvested which will grow businesses. Here we go again. It is demand that grows business, not supply. Investments are always made in response to demand. All the GOP did was to dramatically boost profits with the stroke of a pen. You don’t make more widgets if you can’t sell them. If you make more money on the widgets you sell, you stick the money in your pocket.
This is going to blow up. The Democrats should prepare to assess blame on where it belongs, the GOP.
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