Category Archives: Deficit

Destruction Of The US. (Part Six – Deficits & Debt)

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When President Obama took office, the economy was in flames. Unemployment was soaring and entire industries were in jeopardy. Indeed, the entire world economy was on the verge of collapse. In order to help stem the bleeding, the Obama administration, the Democratic-led Congress and the Federal Reserve implemented a series of stimulus actions, including tax cuts. Those actions temporarily added to the deficit. But they were necessary. Nevertheless, Republicans howled about the “wasteful spending.”

By contrast, Trump inherited a healthy economy and declining deficits. Instead of allowing interest rates to gradually rise, raising taxes to increase revenue and doing what most economists recommended, he orchestrated a massive tax cut for corporations and the very wealthy. Contrary to his grandiose promises and projections, the economy did not noticeably change. Rather, it continued on the same path begun under Obama. What did change was federal revenue, which dramatically dropped. At the same time, deficits soared. The deficit for 2020 is $1.10 trillion and the national debt has now surpassed $22.5 trillion!

And what do you hear from those Republican deficit hawks now? Crickets.

What we are beginning to hear from Republicans is that we must reign in “entitlements” – those safety net programs for the elderly and the poor. They say they want to make serious cuts to Social Security and Medicare. They want to cut food stamp benefits for 3.1 million Americans. They want to cut lunch programs for school children. And they want to end the Affordable Care Act, which made health care affordable for millions of Americans.

In other words, they now seem intent on punishing the poor while continuing to give away hundreds of billions to the Pentagon, an organization that cannot account for trillions in past spending. They want to continue giveaways for corporations. And many Republicans have even stated that they plan to further cut taxes for the very wealthy.

If they are successful, it will mean that the federal deficits and the debt will continue to soar while more ordinary Americans will suffer. Seniors will struggle to pay bills, even to eat. Poor men, women and children will struggle more. The number of homeless will continue to grow. And middle class Americans will not only be asked to make up for the lost revenue with higher taxes. The number of people in the middle class will dramatically decline.

But you can be certain that the incomes of Trump, his family and his wealthy friends will continue to grow.

Ignore His Tweets and Taunts. Pay Attention To His Actions.

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While Democrats and the media have focused on the Tweets and the taunts and the name-calling, many of the worst activities of the Trump administration have gone unnoticed. That’s because the administration seems to have borrowed a strategy from sports – especially NHL hockey. The idea is that, if you can’t win on the merits, you resort to cheating and bullying. You commit as many fouls as possible based on the theory that the referees won’t/can’t call all of them. The referees are then faced with two options: To make the game unwatchable from the constant stoppages and penalties. Or to call only the most egregious fouls.

Likewise, by burying the media, the public and Congress under an avalanche of executive orders, policy changes, unqualified presidential appointments, unjustified pardons, blatant corruption, obstruction and criminal actions, the administration seems to believe that the public will tire of the outrage and buy into the notion that the president is the victim of negative and partisan reporting.

Whatever else you can say about Donald Trump, you must admit that he is a master of the con and self-promotion. He knows how to manipulate his base and the media. Indeed, every time I see him speak, I see the narcissism of Benito Mussolini combined with the limited vocabulary and taunting of Vince McMahon and his WWE bullies. (I am quite certain that is the result of study and hours of practice in front of Trump’s favorite item – the mirror.)

Repulsed by the cartoon-like show, the majority of Americans often miss or ignore the things that are taking place behind the scenes – things that could prove fatal to our democracy.

Every single day, the administration commits more harmful and anti-democratic actions. Career public servants are replaced by unqualified family members, toadies and demagogues from the Trump propaganda network, aka Fox News. Highly partisan and unqualified judges are confirmed as a result of Mitch McConnell’s disregard for long-standing traditions and regular order. Refugees from all over the world are sent back to the dangers they tried to escape. (There are even plans to deport refugees who came here immediately following the Vietnam War.)

The constitutional protections from unreasonable search and seizures have been suspended within 100 miles of our borders – all of our borders. International laws and norms are ignored. Refugee children are traumatized by being ripped from their parents. Pollution is increased as the result of environmental deregulation. Increasingly, our lives are placed at risk by uncontrolled gun violence encouraged by Trump supporters in the NRA. Our economy and consumers are also placed at risk by the dismantling of Consumer Financial Protection Bureau regulations and the Dodd-Frank bill that was designed to prevent another financial collapse. And more people will go bankrupt or die because of the administration’s undermining of the Affordable Care Act.

Each day, the administration borrows more money from China to prop up our economy and to squander on unneeded, and often flawed, weapons systems. At the same time, it has imposed tariffs on billions of dollars of Chinese goods leading to a trade war and higher prices for American consumers. Diplomacy has been replaced by outright bullying and brinksmanship. Trump and his administration have threatened NATO members and turned their backs on trusted allies while embracing some of the world’s worst dictators.

The administration encourages violent racism and intentionally sews division to improve Trump’s chances of being reelected. Sacred Native American lands and public lands are being sold off to extraction industries. American citizens are displaced and their lives disrupted in order to build a senseless wall. Public schools, food stamps, veterans programs, fair trade, access to safe abortions, the constitutional separation of church and state, and so-called entitlements are all under attack. So, too, are our most important institutions like the press, the FBI and our Intelligence agencies.

The president and his mouthpieces commit daily assaults on the truth. The administration has forced a constitutional crisis by announcing that it will refuse to be burdened by congressional oversight. Meanwhile, the crime family in charge enriches itself with taxpayer money as it refuses to reveal its tax returns.

If the orange diKKKtator could accomplish all this while under investigation for conspiring with Russia during the 2016 election, imagine the harm he can cause now that he and his supporters falsely claim “total exoneration?” Even more frightening are the potential consequences of his re-election and the possibility of Congress being retaken by his stooges and sycophants.

Thankfully, you have the power to prevent that grim and dystopian future. Write or call your congressional representatives and demand that impeachment hearings begin immediately. Even more important, VOTE!

The Shutdown Is Not A Negotiating Tactic. It’s The Goal.

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It seems that most Americans and much of the media believe that the shutdown is the result of a failed negotiation between Trump and Congressional Democrats. But, in reality, the great dealmaker has not been negotiating in good faith all along. Indeed, his latest “proposal” was to offer Democrats things that he has previously taken away – DACA protections, immigration judges, etc.

Prior to this January, if Trump wanted $5.7 billion to fund his wall, all he had to do was ask. The Trump sycophants in the Republican-controlled House and Senate have given him everything he wanted. As evidenced by the Trump tax cuts, which have resulted in nearly $2 trillion in additional debt, they certainly weren’t worried about fiscal constraint. And, if Trump and the GOP really wanted to end the shutdown, they could do it today by voting on the budget bill that has already been passed by the House and was previously passed in the Senate by a unanimous voice vote. Or they could accede to the Democrats’ wishes and negotiate funding for increased border security where it would do the most good – at legal ports of entry. That, after all, is where the majority of illicit drugs enter our country in trucks, shipping crates and private vehicles. And they could use the funds to step up the monitoring of the people who enter our country legally and simply overstay their visas. Those people represent approximately half of undocumented immigrants. The Republicans’ failure to do so shows that the shutdown isn’t really interested in border security.

I believe the government shutdown is what Trump and his minions wanted all along.

For Republicans and this outlaw administration, the shutdown serves a variety of purposes. First, it is a distraction from the Russia investigation that is nearing completion. Second, it deprives the incoming Democratic House members the necessary funds to staff their offices, thus potentially impeding their investigations into Trump world. Third, it offers the bully in the White House an opportunity to frustrate and blame Speaker Pelosi. Fourth, in the twisted mind of Trump, the majority of government workers are Democrats, so it’s mostly Democrats who are suffering the consequences. Fifth, if as I believe, Trump really is beholden to Putin, a shutdown throws Russia’s greatest adversary into chaos.

Finally, and most important, Republicans despise government. So the shutdown allows them to call back only those workers that are necessary to their cause. For example, while many in the EPA and Interior are furloughed, Republicans have called back only those Interior employees who are responsible for issuing drilling and mining permits for public lands.

We must all face the reality that the shutdown is a right-winger’s wet dream. The most extreme among them believe the federal government should only be responsible for law and order, the protection of private property and national defense. Anything else – Social Security, Medicare, Medicaid, SNAP, WIC, HUD, the EPA, public education – is, in their minds, a waste of money and an unwelcome intrusion into their ability to plunder the national resources and squeeze money out of the populace.

The Entitlement Lie.

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For many years, Republicans have been determined to privatize Medicare and Social Security or get rid of the programs altogether. So whenever Republicans talk about federal spending, they usually show a chart that looks something like this:

Notice that the two largest slices of the budget represent Social Security, Medicare and Medicaid, or what is often called “mandatory” federal spending. Thus, the chart would seem to indicate that most of the tax revenue goes toward healthcare and retirement for the elderly and the poor. Is it any wonder, then, that so many young people believe that the federal government is being “bankrupted” by payments to senior citizens?

However, most of the costs for Medicare and Social Security are not part of the general budget.

Medicare and Social Security are, in fact, insurance programs similar to your auto, health and household insurance policies. And, like your other insurance policies, the premiums for Medicare and Social Security are collected each year of your working career so the benefits will be there when you need them. The premiums are deducted from our paychecks – you know, the ones that are labeled FICA (Federal Insurance Contributions Act) and Medicare. As a result, Medicare and Social Security are “entitlements” only in the sense that once you have paid the premiums, you are entitled to the benefits in much the same way you’re entitled to benefit from claims against your Allstate, GEICO, Progressive or State Farm policies.

Since the programs pay for themselves, their budgets should be kept entirely separate from the general budget. To more accurately reflect reality, the federal spending chart should look like this:

This chart represents the spending controlled by Congress and paid for through taxation. As you can see, in this chart, the majority of that spending is for our military ($824.6 billion, up more than 13 percent since Republicans have taken the reins of government) and veteran’s benefits ($78.9 billion). When Congress spends more on these items than it collects in taxes, it results in deficit-spending. The shortfalls result in borrowing from other sources – from other countries and from the Medicare and Social Security trust funds.

Despite their claims to the contrary, Republicans have been particularly good at deficit spending. Reagan nearly doubled the federal debt, increasing it by $1.9 trillion. George W. Bush increased the debt by $5.8 trillion. He also left his successor with two wars and the Great Recession resulting in more than $8.5 trillion of additional borrowing. And, in his first two years in office, Donald J. Trump has already doubled the deficit, increasing the debt by more than $1.2 trillion. And the 10-year cost of the Trump tax cuts will add an estimated $2.3 trillion more to the federal debt.

In order to reduce the debt, Senate Majority Leader Mitch McConnell says he wants to balance the federal budget by cutting payments to “entitlements,” aka Social Security, Medicaid and Medicare.

Say what????!!!!

That would be akin to embezzling money from your employer to pay for your own spending excesses. The Social Security and Medicare trust funds are not Congress’s money!

None of this is to say that Medicare and Social Security don’t have their own problems. If changes are not made, it’s expected that Medicare will exhaust its reserves by 2028. Likewise, it’s expected that Social Security will not be able to meet its full obligations after 2034. But that does not mean that there will be no money left for the programs’ beneficiaries. It simply means that the payouts will be less.

And both programs could meet their obligations with a few tweaks.

Like all insurance programs, they should be governed by actuarial tables. When the costs go up, so should the premiums. Unfortunately, Congress has put limits on the amount of money the programs can charge for premiums. For example, FICA deductions only apply to the first $128,400 of an individual’s income. Social Security could be fixed by simply removing the cap. It’s that simple.

Similarly, Medicare’s impending problems could be solved by increasing the payroll deductions, by negotiating for better prices with pharmaceutical companies, or, better yet, we could improve outcomes while saving our government and our citizens trillions of dollars by moving toward universal health care.

And, here’s a radical idea: Maybe we could find additional money for these programs in the general budget by holding government contractors accountable. For example, the F-35 fighter jet program was $163 billion over budget as of 2014. A figure that continues to climb faster than the plane.

Republicans, Do You Ever Listen To Yourselves?

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You blame Democrats for playing partisan politics with the Brett Kavanaugh nomination to the US Supreme Court while withholding mountains of documents from his time as a political operative, including the lengthy period he was investigating President Bill Clinton. You “plow” forward with the judiciary committee hearing while refusing to ask the FBI to investigate credible claims that Kavanaugh may be guilty of sexual assault. You schedule a vote for his confirmation the day after one of his alleged victims was set to testify before listening to her testimony. You say the process must not be delayed even though you left a Supreme Court seat vacant for more than a year, refusing to even schedule a hearing.

And then you voice outrage over politicization of the process? Really? Are you unable to hear the hypocrisy in that?

When pressed, you claim your actions are justified by the failed nomination of Robert Bork. However, you refuse to acknowledge that Bork promised to roll back civil rights gains if seated on the Court and that he had participated in the Watergate cover-up by firing Independent Special Prosecutor Archibald Cox on Nixon’s orders. And I’ll remind you that Democrats weren’t the only Senators who voted to deny Bork a seat on the Court. Six Republican Senators did, as well.

Despite extolling your religious and family values, you engage in victim shaming, saying that Dr. Blasey Ford must be lying since she came forward 36 years after she was nearly raped. Some of you excuse Kavanaugh’s alleged behavior claiming that “boys will be boys” and that “all teenage boys engage in groping and sexual assault.” Even some of your sanctimonious pastors excuse the behavior saying that it wasn’t sexual assault if he stopped short of rape or if she was unable to scream!

Do you not hear how cruel and obnoxious such statements sound? And your outrageous statements surrounding the Senate confirmation are just scratching the surface of your hypocrisy.

Let’s look at your leader. You howl about our government being controlled by the East and West Coast elites, yet you chose to vote for a billionaire from New York who inherited millions. You talk of “draining the swamp.” To do that, you voted for a man who has long-time mob ties and who has bullied the individuals and small businesses who worked for his organization, often refusing to pay them for their work. Moreover, once in office, he filled his cabinet posts with people who have used their positions to fill their own pockets and to offer sweetheart deals to lobbyists.

You angrily protested and threatened President Obama when he signed a stimulus bill to drag the economy out of a ditch – a ditch you created. You screamed that the resulting deficits and the growing national debt were going to ruin our country. But you’re now perfectly okay with the much larger deficits caused by your party’s trillion-dollar gift to the wealthy and corporations in the form of tax cuts.

You claim yours is the party of family values, yet you voted for a man who is thrice married and has bragged about his sexual assaults and perversions. A man who cheated on his wife with a porn star. A man who carried on a near year-long extramarital affair with a Playboy playmate. Worse, his long-time “fixer” pleaded guilty to writing checks on his behalf to cover it up.

You say you want to restore the US as a Christian nation (something prohibited by the Constitution), yet you follow a president who spends his Sundays playing golf at his own resorts so he can charge the government for the rooms and golf carts needed for his Secret Service protection. He couldn’t cite a verse from the Bible if it wasn’t on his teleprompter or scrawled on a note. Even then he’d probably screw it up. You claim that your president was sent by God to save America. Really? Who knew that God so loved pussy-grabbing misogynists and racists?

You blame immigrants for all of your problems. Yet your president hires immigrants to do the labor at his resorts, instead of hiring American citizens. What’s more, his wife is herself an immigrant who, without a green card, illegally took modeling jobs away from American citizens before marrying money. Then she engaged in the so-called chain migration you so deplore by bringing her family to the US.

You chant “freedom” while denying African-Americans, Native Americans, and LGBTQ citizens the same freedoms that you enjoy. At the same time, you refuse freedom to refugees of violence and war. You call for young Latin Americans – even those who have served in our military – to be deported from the only country they’ve ever known. And you praise your leader for ripping immigrant children from the arms of their parents and placing them in cages?

You wave the flag in an ostentatious show of patriotism and you claim to support the troops. Yet you say you hate liberals and Democrats more than the nation that interfered in our democracy. You support our enemies over our long-time, loyal allies. As for supporting the troops, you voted for a gutless man who refused to take a stand on the Vietnam War, instead claiming a deferment for bone spurs. The same man who verbally attacked a war hero who was a member of his own party and a Gold Star family who gave a valiant son in service to our nation. A man who plans to reduce funding for Veteran’s health care.

You claim to believe in the rule of law, but you ignore the growing list of guilty pleas and indictments of the president’s closest friends and campaign staff. You think the Russia investigation is a witch hunt that should be stopped. Instead, you want to conduct yet another investigation of the president’s former political opponent. In fact, you don’t even want to wait for another investigation of her imaginary crimes, as you chant “lock her up.” You look the other way after mass shootings, even after the slaughter of elementary school children, offering nothing more than “thoughts and prayers.” And you stand silent when your president equates Nazis and White Supremacists to those who nonviolently protest their hate.

You and your media pundits claim that Democrats and liberals don’t try to understand you. You claim that we don’t listen to you. I beg to differ. We’ve been listening to your anger and your hatred for the past decade and longer. I wonder if you’ve been listening to yourselves.

The Real State Of Our Union.

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Last night, Donald Trump basked in the light of his predecessor, taking credit for declining unemployment, a rising stock market and low African-American unemployment…all things that began under President Obama and have continued as a result of their own momentum combined with improved economies throughout the world.

So what is the real state of our union under Trump?

Since Trump took office, we have seen unparalleled corruption in the executive branch. We’ve seen the president and his cabinet squander hundreds of millions of dollars on trips and vacations using private jets. We’ve seen a growth in the influence of corporate lobbyists, which culminated in a massive tax cut for corporations and the wealthy that was pushed through Congress with such haste most representatives and senators had no time to read it. And, of course, the Congressional Budget Office had no time to fully score its impact.

We’ve seen America’s international standing and its “soft power” precipitously decline. We’ve seen the GOP try to take away access to health care from millions of Americans. We’ve seen consumer and environmental protections diminished. We’ve seen GOP attempts to destroy the world’s greatest public education system and replace it with private schools that prioritize religion and myths over science and facts.

We’ve seen and heard an astounding number of lies emanating from the White House. We’ve seen an unprecedented attack on the free press, accusing the news media of being “enemies of the state.” We’ve seen multiple attacks on free elections by the GOP and Russia. We’ve seen the proliferation of guns continue unabated resulting in the unnecessary deaths of thousands of Americans each year. We’ve seen White House-led attacks on women; on gays; on transgender citizens; on Muslims; on immigrants; on refugees; on the impoverished; on diplomatic norms; on decency itself.

We’ve seen threats of nuclear war tweeted from the White House bed while the “president” consumes Fox News and cheeseburgers. We’ve seen the administration open public lands…even national monuments and parks…to extraction industries with little regard to the long-term environmental impact. We’ve heard Trump’s racist comments about “shithole” countries. We’ve seen Trump ignore the plight of tens of thousands of American citizens in Puerto Rico trying to survive without electricity and clean water. And we’ve seen the administration take giant steps backward on the environment and technology by raising tariffs on solar panels and encouraging more mining of coal.

At the same time, Trump and the GOP have ignored many of the most pressing problems facing the nation and the planet. Trump announced that he would pull the US out of the Paris accords designed to mitigate the worst effects of climate change. There is no plan to deal with the inevitable rising sea levels; no plan to offset the coming tsunami of workplace layoffs created by robotics and artificial intelligence; no plan to modernize our transportation systems.

The state of our union is that we are now living in an oligarchy where the 1 percent control our politics, our government and an astonishing amount of wealth. Indeed, Oxfam stated that the world’s 100 richest people (many of them living in the US) gain enough money each year to end the world’s extreme poverty several times over. Instead, many of these greedy bastards spend their money on lobbyists and political campaign contributions in order to elect a compliant Congress that will help them further increase their power and wealth!

The state of our union is that we have the world’s most inefficient health care system that costs many times more than those of other advanced nations yet leaves millions without access to medical care. The state of our union is that there is little control of the cost or the amount of pharmaceuticals available…where the opioid prescriptions in some counties and states exceed their populations. But we have made a non-addictive alternative – marijuana – illegal. The state of our union is that we have incarcerated a higher percentage of our population than any other nation on Earth. The state of our union is such that the Department of Defense cannot account for trillions in spending that, by some accounts, equals our entire federal debt. Yet we continue to increase its budget.

The state of our union is that, under GOP control, our democracy is crumbling as fast as our infrastructure.

RIP, USA.

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It’s not entirely hyperbolic to say that the latest GOP tax scam could be the final nail in the coffin of the American dream. If the bill is signed into law, it will show that the oligarchs and the con artists are in full control. And our democratic republic may never recover.

Remember when Republicans were outraged when President Obama signed a stimulus bill to dig us out of the Great Recession created by free market GOP policies? Remember the wave of Tea Party candidates in 2010 who were elected based on promises to cut the burgeoning national debt?

Well, when the GOP took control of the Senate, the House and White House at the beginning of this year, they had an opportunity to cut the debt – now $20 trillion and climbing. After all, the economy is now at what most economists consider full-employment. The increased tax revenue from all of those employed individuals, combined with careful budget cuts, could have been used to reduce deficits.

But, now that the GOP is in control, deficits and debt no longer seem to matter.

Almost immediately after assuming control, Republicans actually increased spending by adding $700 billion to the Pentagon budget despite the fact that an audit by the Department of Defense Inspector General could not account for $6.5 trillion in military spending!

Then, after the House passed a so-called tax “reform” bill, the GOP-controlled Senate used a parliamentary trick to pass a gigantic tax cut for corporations and billionaires – a move that will add at least $1.5 trillion to the national debt over the next 10 years, according to the Joint Committee on Taxation. More precisely, the GOP plans to take $1.5 trillion from ordinary working families and give it to billionaires and large corporations!

So, despite the fact that the nation is still buckling under the deficits and debt created by the last GOP-fueled recession, the GOP plans to push through a highly unpopular tax bill (a recent poll shows that 59 percent of Americans oppose the bill) based on the widely debunked theory of trickle-down economics. It’s a bill that will affect virtually all of us – most of us negatively. And it’s likely to lead to an economic meltdown even worse than the Great Recession.

Of course, the bill’s very wealthy benefactors have little reason to worry. After all, if the tax scam does lead to an economic crash, they are unlikely to be affected. They seldom ever are. For billionaires, most economic downturns represent years-long Black Fridays in which everything is on sale – yet another opportunity to buy low and eventually sell high. And, by the time the national debt becomes a real problem, they can simply relocate and steal from the citizens of another country.

On the other end of the economic spectrum, ordinary working Americans have been promised a much smaller tax cut. Even that will disappear after a few years. But the cuts for billionaires and large corporations will be permanent.

It’s fitting that the Senate bill was passed at 2 a.m. Like thieves in the night, the GOP raided the homes of working people taking portions of their incomes, their access to affordable health care, even their access to public lands.

The GOP Tax Scam.

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For weeks, the GOP Congress has been working behind closed doors to craft a tax “reform” bill. They promise that their bill will “give everybody a raise.” They claim that it will simplify tax codes so much that you will be able to “file your income taxes on a postcard.” And they claim that the tax cuts will accelerate the economy so much that they will pay for themselves.

We’ve heard all of this before. Remember Ronald Reagan’s trickle-down economics? Or how about George W. Bush’s tax cuts?

Instead of stimulating the economy, those plans merely stimulated the bank accounts of the very wealthy while ballooning deficits and our national debt. And though we haven’t yet begun to pay for those tax cuts, the GOP is back with more cuts and more empty promises.

Indeed, most economists who have looked at the GOP plans have concluded that they will result in adding at least $1.5 trillion to the federal deficit over the next 10 years. Further, the nonpartisan Tax Foundation concluded that the impact on economic growth would only pay for about a third of the costs. In other words, in a best case scenario, the tax cuts will add more than $1 trillion to the deficit. And some economists worry that the tax cuts could actually slow economic growth based on increased debt and government borrowing which will result in higher interest rates!

Undeterred, the GOP responded by saying, “We don’t expect the plan to pay for itself. The only way to reduce the deficit is through spending cuts.” What they’re really saying is, “We don’t care about the consequences, the billionaires who fund our campaigns demand tax cuts.” Indeed, the GOP has admitted as much. Both the Mercers and the Kochs have threatened to stop funding GOP candidates unless they get what they want.

And fear of the sponsors is only part of the reason the GOP is in such a hurry to pass the tax cut bills. The temporary spending bill that is funding our government expires on December 8, and the GOP has made tax reform mandatory for a budget deal.

Moreover, by rushing a bill through Congress with little debate, the GOP can bury some unsavory items in the bill. For example, the Senate is considering repealing the Affordable Care Act’s individual mandate, which would for all intents and purposes repeal Obamacare.

The House tax bill would also repeal the Johnson Amendment which prohibits churches and other nonprofits from endorsing or opposing candidates for public office. Though the amendment is seldom enforced – pastors, especially evangelicals and conservative Catholics have been politicking from the pulpit for years without consequences thanks to GOP. This provision could impact our elections as negatively as the Supreme Court’s Citizens United decision that opened the floodgates for campaign donations by nonprofits – all of which can be made anonymously through money laundering from one nonprofit to another.

The House tax bill even includes an abortion poison pill. It has a provision that would, for tax purposes, give a fetus “personhood.” That would make any abortion, for any reason, murder.

However, the most disingenuous claim made by the GOP is that their tax plan will give most working Americans a $4,000 raise – a claim refuted by most economists. But let’s, for a moment, assume that it’s true. Who wouldn’t be in favor of giving less money to the government and having more money to spend on themselves? But what if getting that money meant that there would be a cut to most government services combined with increases in fees?

What if they told you that $4,000 tax cut would be offset by eliminating tax deductions for home mortgage interest, and for state and local tax payments – deductions that could total far more than $4,000. What if they told you that there wouldn’t be enough federal revenue to rebuild our infrastructure and that the result would be toll roads? What if they told you that cutting taxes would result in less money for medical research, less money to help with natural disasters, less money for environmental clean-ups, and less money for food safety inspections?

What if they told you that the tax cuts would mean that the cost of your health care and prescriptions would, once again, skyrocket? What if they told you that, as part of the tax cut, your Social Security savings would be given to millionaires and billionaires? What if they told you that you would be asked to subsidize big bonuses for the executives of multinational corporations? What if they told you that you might have to pay for your parents’ medical costs because their Medicare would be gutted? What if they told you it would mean the end of veteran’s benefits? What if they told you there would be no more money for food stamps and welfare, so millions of Americans would have to beg for food or die? What if they told you that that their tax cut would result in trillions more in debt for your children and grandchildren?

All of those things are likely under the GOP tax plans.

If that doesn’t give you pause, ask yourself this: Since the people writing the bills are millionaires who were put into office with the help of billionaires, do you really think they have your best interests at heart? And, if the GOP ideas for tax reform are so good, why are they being crafted in back rooms out of the view of the public? Why have they not included Democrats in the discussions?

Perhaps the best question of all is one posed by Catherine Rampell of the Washington Post in a recent editorial: “If the tax bill is so great, why does the GOP keep lying about it?”

What’s At Stake With Tax “Reform.”

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For decades, taxation in the US has been based on a progressive tax structure, which means those who earn the most money pay the highest taxes. And those less fortunate pay the least. Similarly, corporations were taxed to help pay for the government-provided infrastructure they needed to operate. When the nation incurred substantial debt, the Congress raised taxes to reduce that debt. For example, following World War II, tax rates were raised to pay down the debt. Through the Eisenhower administration, the nation’s highest tax rate exceeded 90 percent. Yet, despite such high tax rates, the economy boomed.

Then, in the 1980’s everything changed. Based on a discredited economic theory known as trickle-down economics, Republicans began to cut taxes (and revenue) under the guise of “tax reform.” They cut the top income tax rate, as well as estate taxes and capital gain taxes – all for the benefit of the wealthy. At the same time, they repealed usury laws and eliminated the tax deductions for interest on all loans except home mortgages. All the while promising that the cuts would benefit middle Americans.

They didn’t.

Not only did they transfer much of the tax burden from the wealthy to the middle class. The national debt soared. As a result, even those who originated the idea of Reagan’s trickle-down economics were forced to admit that the plan failed.

Unfortunately, Republicans have never abandoned the theory. For years, they have continued to promote the trickle-down fairy tale. They not only signed Grover Norquist’s misguided “No New Taxes” pledge. They continue to promote tax cuts as the elixir for any economic ailment. Is the economy suffering? Tax cuts will help. Is unemployment too high? Tax cuts are the answer. Is the economy booming? Tax cuts will make it even better. As a result of all this tax cutting, our national debt has continued to climb – slowing only when Democrats are in power.

Fast-forward to today. Republicans are proposing yet another tax “reform.” And just like the “reforms” of the past, it looks a lot like another round of tax cuts for corporations and the very wealthy. Indeed, if this tax plan passes and is signed into law, the deficits will, once again, soar. And the national debt will be increased by trillions. According to a report from the Urban Tax Policy Center, “Over the first 10 years, the individual income tax provisions — excluding those related to the taxation of corporations, pass-throughs, and estates — would raise $470 billion, the business provisions would reduce revenues by $2.6 trillion, and repealing the estate tax would cost another $240 billion.”

As far as I can tell, this is all part of the GOP long-range plan.

The Republicans seem concerned with deficits and debt only if they can be used as a hammer to bludgeon Democrats when they are in control. (Remember the outrage when President Obama used TARP funds to save the US auto industry? Though the impact of the bail-out on our national debt was negligible, Republicans howled that it would be a burden to future generations.) In reality, I believe the GOP plan is to push our nation more deeply into debt. Then, and only then, will they be able to reach their long-term goal of reducing the government to a size small enough that, in Grover Norquist’s words, “it can be drowned in a bathtub.” Only when the debt has reached an unsustainable level will the GOP have the ammunition needed to slash government programs regardless of their popularity or need. That is when they will be able to argue the necessity of ridding the nation of safety nets such as Social Security, Medicaid, Medicare and all the varieties of welfare.

If you doubt this is the Republican goal, consider the Ayn Rand-like philosophy of the billionaires who finance the Republican Party. As mentioned in a previous post, the Koch brothers believe that government is unnecessary for anything but national defense, law and order, and social stability. And, by some counts, there are 16 people in the White House with ties to the Koch brothers. In addition, there are many more in the Republican congressional delegation who are beholding to the brothers grim of oil refining.

You must also consider that Trump’s presidential campaign was heavily funded by Robert Mercer, a man who has stated that he wants to shrink the government to the “size of a pinhead.” Worse, he apparently thinks that human beings have no intrinsic value – believing that an individual’s value should be based solely on income. In other words, someone who earns $2 million per year is 20 times more valuable than someone earning $100,000 per year. And he believes that anyone on welfare is worth less than nothing.

Obviously, the Kochs and Mercers spent hundreds of millions to elect today’s Republicans with the expectation that the Republicans would do their bidding – that they would reshape government to fit their ideas and to lower their taxes. If you think that means the Republican tax proposal will benefit you, think again.

Feeding The Rich And Starving “The Beast.”

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The top 10 percent control 76 percent of the nation’s wealth. Yet a new study* found that the bottom 99.9 percent pay 175 times as much income tax as the top 0.1 percent! That’s because the wealthy use a variety of tax shelters, both offshore and in tax havens such as Delaware and South Dakota. In addition, our largest, multinational corporations dodge taxes by moving their headquarters offshore (at least on paper) and by parking large sums of cash in offshore tax shelters.

Obviously, tax reform is sorely needed, and it’s the next big item on the Trump agenda. But, with Trump and the GOP in charge, don’t expect it to benefit you. While true reform would be almost universally welcomed, the people shaping the process are all billionaires and multi-millionaires with ties to Wall Street.

What are the chances that they will introduce a bill to benefit ordinary working-class Americans?

The short answer is zero if you look at the framework being considered by the administration as reported by Politico. For example, the administration is planning to raid your 401k savings account by forcing you to pay taxes on the money up front. Other proposals include eliminating the mortgage interest deduction for homeowners, eliminating federal deductions for the money you pay for state and local taxes, and eliminating charitable deductions. All of these proposals will result in a substantial tax INCREASE for ordinary Americans. They will also punish the poor by eliminating incentives for taxpayers to donate to charities.

Even more worrying are the tax rates being proposed.

At the heart of the “reform” is a plan to reduce the number of tax brackets from 7 to 3. That, alone, will punish taxpayers at the bottom of each bracket.

Of course, there is plenty of good news in the plan for the wealthy. The new plan would repeal the Alternative Minimum Tax – a boon to many well-off households. It would repeal the estate tax, a tax that currently applies only to 2 out of every 100 estates. (The tax is levied only on the portion of an estate’s value exceeding $5.49 million per person.) The plan would repeal the tax on investment income that helps pay for Obamacare. And it would cut the top marginal rate for the wealthiest Americans from 39.6 percent to 35 percent.

The Tax Policy Center estimates that the administration’s tax “reform” plan will cut taxes by $6 trillion over 10 years with almost half of the savings going to the top one percent.

And if you’re an executive for a large corporation, the news is just as good.

Though the current top marginal corporate rate of 39 percent is one of the highest in the world, very few US corporations actually pay that rate. Indeed, according to the 2015 ranking by World Bank, the total corporate tax burden for US corporations as a percentage of profits is tied with Tanzania for 64th in the world! And our corporate taxes as a percentage of GDP are lower than 22 of 32 of the world’s most advanced nations. Yet the Trump plan would cut the corporate tax rate to just 15 percent, making it one of the lowest tax rates in the world. The plan would also create a territorial tax system permitting multinational corporations to pay tax only on income earned in the US. Just what they need – yet another tax dodge! Additionally, Trump’s proposed tax plan would gift multinationals a one-time reduced tax on the trillions of dollars currently being held offshore.

The Center for a Responsible Federal Budget estimates that the cuts in corporate taxes alone will deprive the federal government of at least $2 trillion in the next 10 years! The administration’s belief is that the cuts in revenue will be offset by a yuuuge spurt of business growth. But that belief is wildly optimistic. Indeed, except in times of deep recession, there is no evidence that tax cuts grow the economy. And, following 8 years of private sector job growth, we are most certainly not in a recession.

If this plan – or anything approaching it – is approved, Grover Norquist will finally realize his dream. The federal government will be starved to the point where he can “drown it in a bathtub.”

* Study by John Hatdioannides of the Cass business school, Marika Karanassou of Queen May University and Hector Sala of the Universitat Autonoma de Barcelona and IZA in Bonn.