Nov 15

More Stupid Tax Tricks

You know, I bang my head on the desk trying to come up with an incredibly lucid explanation of some obscure point and then someone like Paul Waldman does it better in fewer words-

(T)he CBO also says that repealing the mandate will result in 13 million fewer Americans with health insurance — hence those savings, which won’t be spent on expanded coverage — and increases in premiums of an additional 10 percent a year. Some people won’t realize that they’re eligible for free or heavily subsidized insurance and, without the mandate to prod them, won’t get it, and as young and healthy people pull out of the market, the remaining pool will be older and sicker, leading to premium spikes, the exit of insurers from the market, and a potential “death spiral.”

Sigh, that’s ok, there are other important things in this piece.

The GOP tax plan will be a massive political nightmare for Republicans
By Paul Waldman, Washington Post
November 15, 2017

The Republicans’ theory about their tax-cut bill goes like this. We absolutely have to pass it, or else our base will be disgusted and our donors will abandon us. The substance doesn’t matter — we’ll get it past complex Senate rules, and even if some provisions look troubling, after it passes we can have a triumphal Rose Garden ceremony and proclaim we’ve delivered prosperity for all. In coming months and years, people won’t remember the details, as long as we keep saying “We cut taxes” over and over again.

That theory is going to be put to the test, and I’m pretty sure it’s going to be proven wrong. That’s because this bill won’t just fail to deliver on its promise of riches trickling down to everyone; it’s actually going to be a disaster for millions of Americans. And there’s not going to be any doubt about who inflicted it on them.

But that’s just one element of this tax cut that is going to be incredibly unpopular. Remember that point about not being able to increase the deficit at all after 10 years? Because they want to make the corporate tax cut permanent — since it’s the real centerpiece of this whole effort.

In other words, if you happen to be one of the lucky people who come out ahead at first with all the complex changes to the tax code this bill makes, in 2026 your taxes will go up. It’s just getting better and better, isn’t it?

At this point there’s a handy review of all the ways the Cut Cut Cut Bill is going to screw taxpayers so you might want to bookmark it for future use. He continues-

If you had to sum it up simply — for instance, if you were writing a Democratic attack ad in the 2018 election — you could say that Republicans are raising taxes on millions of Americans and taking away health insurance from millions more, all to pay for a huge giveaway to corporations.

Of course, Republicans argue that giving corporations a tax cut will make us all enormously richer. This claim is laughable, since corporations are already earning near-record profits and unemployment is low; it’s not as though they’re starving for cash and once they get this tax cut they’ll rush to invest, create jobs and raise wages.

If we’re considering the politics of this bill, it’s also important to understand that very few people buy the Republican argument. In fact, most Americans think corporate taxes should be raised, not lowered. So not only are the details politically damaging, but also the core of the bill is something the public doesn’t want.

None of this means the bill won’t pass. Republicans have convinced themselves that no matter how bad the bill is, not passing anything is worse, so the chances that they’ll allow it to fail are small. But when that day comes, Democrats will know that Republicans just gave them yet another powerful issue to run on in 2018. Expect to hear them say, “Republicans have had complete control of Washington for the past two years — and all they did was raise your taxes and yank millions from health coverage so they could lard another giveaway on corporations.” Something tells me that might be a pretty effective message.

Republicans, not just racists, bigots, xenophobes, and misogynists.

Also thieves.