There were many callers like myself calling republican US Senators not to pass the 2017 GOP tax cuts bill because it would eventually backfire. Many of us had been calling this the GOP Donor tax cuts bill. Some bought the GOP leaders rhetoric that the tax cuts bill would so stimulate growth that the additional revenues would pay down the US deficit even though this voodoo economic plan had failed big time in states like Kansas.
Here is the GOP 10 year 2017 tax cuts bill in a nutshell. The US Congressional members passed a bill that cuts taxes for the wealthy/ corporations to the tune of $6.5 trillion dollars and this is to be paid for by increasing taxes for poor/ middle class by $4.5 trillion dollars and by adding a minimum of $1.5 trillion dollars to the US deficit. Don’t forget that this tax plan included savings from eliminating the mandate requirement from Obamacare which means that millions will end up without healthcare insurance while those who remain in the program will be faced with notices of insurance premium increases just before these voters head out to vote in the November 2018 elections.
Logic tells us that you can’t marry major tax cuts with huge increase in spending without eventually facing an economic doomsday. No sooner did the GOP pass this tax cuts bill, then they passed the biggest US spending bill in history.
Then the president has added fuel to this malfeasance of a tax cuts bill with his tariffs as he is not one to learn from history like with the Smoot–Hawley Tariff bill that was enacted by US congress in 1930s, designed to stimulate a very sluggish US economy. At the time about a 1000 economists wrote their US congress lawmakers to not go forward with their planned tariffs, but their pleadings were rebuffed. It wasn’t long before the US economy took a further dive at about at about 26%. Then it took years for the US to recover from this disaster.
The president’s ignorance / bias in his plan to cut back on even legal immi-gration shows that he lacks any clue as to how immigration helps to spur the US economy. The Kock brothers are even putting out ADs to push for the legalization of the immigration status of the DACA dreamers who face future deportation, if something is not done. These DACA dreamers are young adults who came here as children with parents who are undocumented but they have no/ little familiarity with their countries of origin. Fixing this immigration issue would be a major benefit to the business community. But the republican President Donald Trump, his Chief of Staff General John Kelly and others of like thinking aren’t capable of seeing the value that immigration adds to our economy.
The US GDP growth for the first quarter of 2018 is 2.3 % which is a far cry from what the GOP were advertising would happen with their 2017 GOP tax cuts plan.
But you’ve begun to hear the GOP start complaining about the moochers on US government safety net programs which is a myth. Too many US workers make so little that they qualify for programs like food stamps. Many are disabled where they can’t work. This is where the GOP plans to cut what they call foolish spending.
Can you believe that some donors are holding back on their generosity to the GOP coffers because they did not get everything on their wish list?
Here’s the rest of the story…
On May 14, 2018, Matthew Chapman of Shareblue Media penned the following report,“GOP tax scam backfires in worst way possible — with GOP donors” (“Some Republicans in Congress admitted they were trying to pass their tax scam to ensure their billionaire donors would keep the cash flowing. Now, they’ve even failed at that.”
“When the GOP forced through its reckless tax scam giveaway to corporations and billionaires, some lawmakers made it clear their priority was not to help working families, but to please the wealthy donors who keep their campaigns funded.”
Sen. Lindsey Graham (R-SC) said they had to get it done or “the financial contributions will stop.” Rep. Chris Collins (R-NY) said “who cares” if the tax cuts are unpopular, and later clarified, “My donors are basically saying, ‘Get it done or don’t ever call me again.’”
“But according to a new report from CNN, Republicans failed even at keeping their top donors happy.”
“It turns out several wealthy Republican donors are now withholding funds — including financiers Paul Singer, Ken Griffin, Warren Stephens, Cliff Asness, Bruce Kovner, and Daniel Loeb — because they are angry the bill’s corporate tax cuts do not apply to their hedge funds.”
As CNN notes, “Although some of the donors have not sworn off contributions to individual campaigns or even the Republican National Committee, all have so far withheld contributions to the House and Senate Republican campaign arms — which are key players in the 2018 midterm elections — as a way to send a message over the law.”
“Furthermore, these six donors “accounted for more than $50 million to Republican groups during the 2016 election cycle; Singer ranked among the top 10 donors of either party, while Griffin and Stephens ranked in the top 20.”
“To put this in perspective, in the 2016 cycle, the total expenditure on all candidates was $161 million for the National Republican Congressional Committee, and $134 million for the National Republican Senatorial Committee.”
“So if this continues, the GOP could see noticeable shortfalls at a time when their majorities are already vulnerable — and when, their lawmakers face voter anger over the tax cuts.”
“Some GOP-aligned groups like Americans for Prosperity have run ads against Democrats for opposing the bill. But instead, the bill is rapidly becoming a political disaster for Republicans.”
“Analyses have found it will put the budget deficit over $1 trillion, and that 83 percent accrues to the top 1 percent of income earners and 80 percent to foreign investors. The bill turned out to include drafting errors and glitches that Republicans are now forced to ask Democrats to help them fix.”
“Health insurance costs are now set to spike as much as 94 percent in parts of the country thanks partly to the bill’s individual mandate repeal. And some businesses, far from creating jobs, are actually using their tax cuts to fire their workers.”
“Voters have not fallen for the scam. Recent polls find just 27 percent of voters think the tax cuts were a good idea. Some vulnerable Republican lawmakers organizing rallies to support the tax bill, like Iowa Rep. Rod Blum, have been greeted with near-empty parking lots.”
“And it is not helping them win elections. In Pennsylvania’s 18th Congressional District, where voters backed Trump in 2016 by 20 points, Republicans had to back off ads promoting the tax scam after an underwhelming voter reaction. They went on to lose the special election to Democrat Conor Lamb, who opposed the tax cuts.”
“Republicans should have seen this coming. The bill polled terribly even before it passed. But as the remarks of lawmakers like Graham and Collins showed, the GOP was desperate to deliver the goods to their donors.”