GOP Tax Scam for the Rich is ‘Built on Quicksand’
Yesterday, House Republicans in the Ways and Means Committee approved the tax scam for the rich 2.0 to head to the Floor for a vote.
As if the original deficit-exploding tax scam wasn’t enough, the GOP is doubling down on their toxic tax agenda: to hand billions of dollars in permanent tax cuts to the wealthiest one percent every year, while adding trillions more to the national debt.
A second round of Republican tax cuts would add an additional $3.2 trillion to the federal deficit over a decade, according to a new report released by a centrist think-tank.
The GOP’s “tax reform 2.0” would make permanent many of the individual and estate tax provisions in the tax law Republicans passed last fall, which the Congressional Budget Office said would already add about $1.9 trillion to the deficit, factoring for interest costs.
The second round of cuts would cost $631 billion before 2028 and an additional $3.15 trillion in the decade after that, according to the Tax Policy Center.
There’s been lackluster public backing for the already-passed tax cuts that took effect this year. A poll released last month by Monmouth University shows that 37 percent of the public approve, while 45 percent disapprove.
One of the new legislative package’s biggest sticking points is its price tag: an estimated $627 billion over the next decade, according to a recent analysis by the Joint Committee on Taxation. That’s on top of the $1.5 trillion the already-passed tax cuts are projected to cost over the next decade.
Desperate to hold on to their majority in the House, GOP leaders are planning to bring up a new set of tax-cut proposals soon that would dole out more favors to certain constituents — especially those with higher-than-average incomes. It’s a nakedly political move, given that the measures haven’t a snowball’s chance in Hades of making it through the Senate. Plus, it’s even more fiscally irresponsible than last year’s deficit-exploding tax cuts.
This is the congressional equivalent of giving a sack of candy canes to a room full of hyperactive children whose teeth are falling out. The economy already is overstimulated, as the Federal Reserve’s moves to raise interest rates attest. The last thing the country needs is more fuel for the inflation that’s starting to rear its ugly head.
Republicans are pushing to pass additional tax reforms before midterm elections this November. But the changes, which would make the individual tax cuts passed in December permanent, could add another $2 trillion to the deficit over the next 10 years.
The proposed cuts came as the federal deficit hit $895 billion in the first 11 months of fiscal year 2018. That’s a 32 percent, or $222 billion, increase over last year’s deficit, according to the nonpartisan Congressional Budget Office.
Still, House legislators hope to make quick work with the bills, dubbed “tax reform 2.0,” in the 15 working days left before the November 6 elections … The plan is mostly about optics as the changes are not expected to pass this year.
As Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said: the GOP tax scam for the rich is “built on quicksand – sinking in the very debt that finances it.”
As Republicans continue to sell out Medicare, Medicaid and the middle class to further enrich big corporations and the wealthiest 1 percent, Democrats fight for real, bipartisan tax reform that creates jobs, reduces the deficit and is For The People.