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?”