Over the past two weeks my favorite Keynsean has been very busy posting responses to the republican tax scam. Here are links to the posts followed by a lead-in paragraph:
Dec 7, 2017 The Republican War on Children
Let me ask you a question; take your time in answering it. Would you be willing to take health care away from a thousand children with the bad luck to have been born into low-income families so that you could give millions of extra dollars to just one wealthy heir?
Dec 8, 2016 Facts Have a Well-Known Liberal Bias
There are two central facts about 21st-century U.S. politics. First, we suffer from asymmetric polarization: the Republican Party has become an extremist institution with little respect for traditional norms of any kind. Second, mainstream media – still the source of most political information for the great majority of Americans – haven’t been able to come to grips with this reality. Even in the age of Trump, they try desperately to be “balanced”, which in practice means bending over backwards to say undeserved nice things about Republicans and take undeserved swipes at Democrats.
The latest job report was very good, except for one thing: wage growth is still much lower than it was before the financial crisis. And this reminds me of a controversy that raged around four or five years ago, during what now seems like a golden age – an era when it seemed as if facts and reasoned debate might actually matter for policy.
Dec 11, 2017 Steve Mnuchin Pulls a Paul Ryan
On Monday the Treasury Department released a one-page report claiming that tax cuts would pay for themselves. The document was a shameless attempt to fool the public — carefully worded to imply that economic experts at Treasury (they’re still in there somewhere, maybe locked in a closet) had actually done an analysis to that effect, without explicitly saying so. In fact, there was no economic analysis; Trump officials just made up numbers that would give them the result they wanted.
Dec 12, 2017 What Happens if the Tax Bill Is a Revenue Disaster?
Jonathan Chait raises a good point, which many of us were already thinking about: for all the debate about whether the tax bill will partially pay for itself, it’s actually more likely that it will end up worsening the deficit by far more than most estimates suggest. The reason is simple: the bill is junk, hastily drafted and full of exploitable loopholes. Once the tax lawyers and accountants get to work, they will probably find ways for their clients to avoid hundreds of billions in taxes that even the JCT estimates still assume will be paid.
Suppose this is indeed what happens. I’ve been trying to think through the next step: What effect will a ballooning deficit have on markets and the political climate?
So, it seems that Republicans are responding to the devastating defeat in Alabama – which is part of a sustained pattern of underperformance in special elections, demonstrating that bad polls reflect reality, not bad polling, by … doubling down on a massively unpopular tax plan, whose main focus is on cutting corporate taxes.
Dec 14, 2017 Republicans Despise the Working Class
You can always count on Republicans to do two things: try to cut taxes for the rich and try to weaken the safety net for the poor and the middle class. That was true under George W. Bush, who sharply cut tax rates on the top 1 percent and tried to privatize Social Security. It has been equally true under President Trump; G.O.P. legislative proposals show not a hint of the populism Trump espoused on the campaign trail.
For those who weren’t reading my blog before it was folded into the column page, “wonkish” posts were written with economists or highly economics-fluent readers in mind, not the broader public. I put up the “wonkish” as a warning to normal human beings. So here’s one of those on the topic of the day; if funny diagrams and economese aren’t your thing, feel free to skip.
Dec 18, 2017 Passing Through to Corruption
The question is, why are they doing this? For this bill isn’t just a policy crime; it also seems to be a political mistake. It will, however, be good, one way or another, for the bank accounts of quite a few Republican members of Congress. Is that why it will pass?
Dec 20, 2017 Republicans Despise the Working Class, Continued
The GOP tax plan is remarkably unpopular. According to the latest NBC poll, only 24% of the public thinks it’s a good idea; 63% believe that it’s mainly for the rich and corporations [editor: it is], while only 7% think it’s aimed at the middle class. Republicans think it will become more popular over time; that’s not what happened with previous tax cuts, and as Drew Altman of Kaiser Family Foundation notes, everyone – even Republicans – hates the idea of cutting major social programs to pay for tax cuts, which is exactly what the GOP plans to do.
Dec 21, 2017 Tax-Cut Santa Is Coming to Town
It’s that time of year again. Some of us will get nice gifts, while others will get lumps of coal.
But the rules have changed a bit this time, at least as far as the federal government is concerned. The St. Nick you knew is on vacation, possibly permanently. In his place we have Republican Tax-Cut Santa, who has different priorities.
“You all just got a lot richer,” Trump reportedly told guests at Mar-a-Lago. But Republicans will nonetheless keep insisting that the corporate tax cut that is the main item in the tax bill is really for the benefit of workers. They will be aided in this claim by some recent corporate announcements of bonuses or wage hikes that they attribute to the tax cut. …It’s nonsense, of course.