Taxes

“It will pay for itself”

JM Ashby
Written by JM Ashby

What is the current status of the Senate Republican tax cut bill?

That's a good question.

Senate Republicans are expected to begin voting on the bill this week but, at the moment, it appears they don't have enough votes to pass it out of the Finance Committee so it can reach the floor of the Senate.

Various reports indicate that certain parts of the bill are still being rewritten to include triggers that would roll back tax cuts if economic growth doesn't live up to their promises, but that relatively noble goal only highlights the absurdity of the bill.

You see, even if economic growth lives up to their promises, that won't be enough.

“It will pay for itself,” declared Sen. John Kennedy (R-LA). “I would not vote for this bill if I thought it was going to increase the deficit.”

“Now, it might in the short term,” Kennedy allowed. “But in the medium term and the long term, I think it will pay for itself.”

We have economists saying that if the economy will grow four-tenths of one percent, it’ll pay for itself,” Sen. Chuck Grassley (R-IA) told TPM, adding that he is vehemently opposed to Corker and Lankford’s trigger idea.

The Tax Policy Center actually produced a slightly more positive estimate that the economy will expand by 0.6 percent, but the think tank also estimated that it would increase federal revenue by just $169 billion; a fraction of the cost of the GOP bill.

I don't think there are many Republicans in Congress who appreciate the full cost of their bill and, among those who do, even fewer of them care. Most of them have deluded themselves to a point where even Wall Street and corporations aren't making the same promises. Republicans are drunk on their own Kool Aid.

  • swift_4

    Saying it will spur growth in the long term is how they get away with this shit. Fifteen years later, when enough people get off their ass to vote Republicans out of office, some Democrats will work their ass off to turn the economy around. Then Republicans will take credit for that turnaround.

  • muselet

    I’d like to know the names of those “economists” (the plural is a nice touch) Chuck Grassley mentions, because every economist I’ve seen has been of, shall we say, a different opinion.

    Also, if anyone doubted the hold-outs—Susan Collins, Ron Johnson and Bob Corker—would fall in line, doubt no more. As predictable as the sunrise, it is.

    Party before country. Every. Frelling. Time.

    –alopecia

  • I can’t help but notice the economic growth requirements to pay for this tax scam keeps changing day to day.

    • ninjaf

      Right. Weren’t they originally touting 3% growth?

      • Yeah. They keep lowering the necessary growth percentage. We can’t be the only people who noticed!

        • muselet

          We’re not the only people who noticed, we’re just the only people rude enough to allude to reality when we talk about those fanciful growth projections.

          –alopecia

  • Badgerite

    I think Kennedy has it exactly wrong. In the short term, there will probably be a boom in corporate spending but it will be spending on changing their plants over to automation. That involves employing people to work on that endeavor and parts manufactured elsewhere. But once in place, that boom will end and what revenues are generated will not go to most Americans but to a few large automated companies with global ambitions. It’s the medium and long term where these tax cuts are going to devastate the country and a lot of the programs that real people depend on like Medicaid and Medicare.
    Due to automatic cuts required by law Medicare is estimated to lose funding to the tune of $25 billion in 2018 alone.
    That can only get worse.

  • Aynwrong

    “We have economists saying that if the economy will grow four-tenths of one percent, it’ll pay for itself,”

    ~ Sen. Chuck Grassley

    If the economy would just get on board with the Trump Train and stop listening to the fake news and the liberal media and the deep state, the tax plan will pay for itself.

    Chuck Grassley is one of the great assholes of our time.

    • Dread_Pirate_Mathius

      Chuck Grassley is one of the great assholes of our time.

      Would you say that Chuck Grassley is the Goatse* of our time?

      *For the love of god, don’t google that!

    • Badgerite

      Yeah. Senator Death Panels. He lies when it is needed which is just about any time the GOP wants to do something since what they want to do is usually bad for everyone but the uber rich.
      I never listen to Grassley as I know he will lie with reckless abandon and not even give a crap.