Today’s Campaign Update
(Because The Campaign Never Ends)
- Well, you know it’s a slow news day in Donald Trump’s America when the biggest story is the introduction by Republicans congress of their long-awaited tax reform bill. The bill has been ready for at least six months, but true to their goal of not getting a damn thing done during this calendar year, the GOP congressional leadership waited until the end of September to introduce it.
- This late introduction date – for which there really is no justification at all – naturally produced grumbling among some members of the conservative Freedom Caucus about the “aggressive time frame” left in the year to get such a massive reform of the IRS tax code done. So, the stage is already set for the December press conference of Paul Ryan and Mitch McConnell telling everyone that they just ran out of time this year, but don’t worry, they’ll promise to come back in 2018 and really, truly get the thing done. Yeah, sure, just like Obamacare, right?
- Through a contraction of the various tax rates and a doubling of the standard deduction, everyone gets a bit of a tax break in this plan, except for those making more than $400,000 per year, who get stuck with an actual tax surcharge. Naturally, Democrats rushed to the microphones and Twitter and Facebook to squeal that the plan is…wait for it…wait for it…A TAX CUT FOR THE WEALTHY! I swear I don’t make this stuff up.
- Of course, in Democrat “logic”, such as it exists, this is true, since the Democrats consider anyone who makes more than about $100,000 per year to be “wealthy”. Given that the goal of the plan is to get more money into the hands of those in the lower and middle class, people making between $100,000 and $400,00 do get a tax cut under the plan. Thus, the whole “tax cut for the wealthy” rhetoric from the party of demagoguery.
- The plan would also lower the tax rate for – gasp! – evil corporations in the hope of stimulating the economy. Man, the Democrats haven’t even gotten started demonizing that aspect of the proposal. Nevermind that the U.S. has by far the highest corporate tax rate of any developed country, costing our country millions of potential jobs that now simply go overseas, lowering tax rates for evil corporations presents Fauxcahontas and Chuck Schumer and Bernie Sanders with prime demagoguery opportunities, and that is not something they will meekly pass up.
- So, it’s going to be a long fall and winter filled with hyper-partisan rancor. There is nothing progressives hate more than a healthy, growing economy. I’m not kidding. If you think otherwise, you don’t understand progressives.
- There can be no doubt the GOP proposal would indeed stimulate economic growth in a very big way. The key stimulus-producing provision is one that would allow businesses of all kinds to deduct most capital costs during the tax year in which they are incurred. Currently, such costs must be recovered by depreciating them over 5 to 30 years, depending on the asset that is being depreciated.
- President Trump has often talked about wanting to pass his own economic stimulus package. Well, there is really no need for a separate stimulus bill if congress were to pass this one. The ability to deduct capital costs would be a stimulus plan in and of itself, and unlike the Obama stimulus, which was basically wasted on expanding government employment and wasteful programs, it would stimulate real infrastructure expansion, and create millions of real, private sector jobs.
- So of course the Democrats hate it. They hate anything that would grow the private sector, especially at a time when the government sector is being systematically reduced by a Republican administration.
- But the dirty little secret is that the establishment Republicans really don’t want to pass this bill, either, which is why they’ve waited so late to introduce it. The positive side is that the President does want it, and he won’t be shy about publicly pounding on Democrats and Republicans who work to kill it.
- Just as we have seen President Trump reveal the Democrats and their progressive voters to be perfectly fine with NFL players disrespecting the national anthem and American flag this week, in the coming weeks we will see him speak very frankly about the real reasons why the Democrats and recalcitrant Republican swamp creatures don’t want to pass a meaningful tax bill.
- It will be a target-rich environment for verbal kill shots, and we all know how the President loves that.
Just another day in Donald Trump’s America.
That is all.