The republican President Donald J. Trump, his team including Gary Cohn and Steven Mnuchin, and the republican US congressional representatives are hard at work selling the Americans on a huuuuge tax cut bill which primarily benefits the wealthy. But the president has also promised his supporters to lead in an infrastructure improvement law that is way overdue. It will cost over a trillion dollars which means that the USA cannot afford this bill.
These are the same republicans who were decrying any plans to stimulate our country’s economy at a time (2008-2009) when we were trying to fight against a sever recession because the country’s deficit would be increased. In contrast, they are now in 2017 rallying to do exactly what they previously howled against when the country is now in a period of economic expansion.
Here is the rest of the story…
On September 23, 2017, the Editorial Board of the Washington Post penned the following op-ed post, “So much for the party of fiscal responsibility.”
“AFTER ALL the GOP howling about deficits when President Barack Obama was trying to stave off a depression in 2009, Republicans now in power are getting ever closer to adding an enormous amount to the debt — not to save the economy but to finance a big tax cut. The hypocrisy is bad, but if they succeed, the consequences for the country would be far worse.”
“Republicans began their push to reshape the tax system by promising to make their reforms revenue neutral. Individual and corporate tax rates would be cut, they vowed, but so would expensive loopholes. With enough offsets, the government would lose no money and end up with a more efficient tax code.”
“But tax cuts are easy to hand out, while closing loopholes takes a bit more spine. So “tax reform” has steadily evolved toward “tax cuts.” And last week the Spineless Caucus scored a notable victory when Sen. Bob Corker (R-Tenn.), who had pressed for revenue neutrality, agreed to a budget framework that would allow $1.5 trillion in tax cuts without direct offsets.”
“Defenders of the plan say that it could still end up being revenue neutral, in part because economic growth would offset much or all of that $1.5 trillion hit. Outside experts, however, warn that these assurances are too optimistic. Changes in taxing and spending policy certainly can affect the rate of economic growth. But economists cannot project how much, nor the effects on federal revenue, with precision. Given the country’s already stretched finances, the only reasonable option is to avoid tax plans that could make budget problems worse, burdening future generations even more than they already will be.”
“The United States is in the midst of one of the longest periods of uninterrupted economic expansion in the country’s history, negating the case for a short-term stimulus in the form of unpaid-for tax cuts. Moreover, a demographic wave is set to clobber public finances, as baby boomers retire and demand expensive social services.”