Taxes

Senate Republicans Propose $1.5 Trillion in Tax Cuts

JM Ashby
Written by JM Ashby

When Senator John Thune (R-SD) said the cost of tax cuts for the rich would amount to "about $100 billion per point," we could infer that the GOP's tax cuts would cost about $1.5 trillion assuming they intend to cut the corporate tax rate to 20 percent.

That does appear to be the case. The Wall Street Journal first reported last night that Senate Republicans are drafting a budget proposal that "creates room" for $1.5 trillion in tax cuts.

A budget that creates fiscal room for a $1.5 trillion tax cut, if adopted, would then be followed by a tax bill that would specify rate cuts and other policy changes that don’t exceed that figure. Calling for a tax cut in the budget would let Republicans lower tax rates while making fewer tough decisions on what tax breaks to eliminate to help pay for the cuts.

What does this mean?

It means the budget proposal will include $1.5 trillion in spending cuts to make room for a $1.5 trillion tax cut.

But this is just a budget resolution, a necessary procedural stop on the way to actually passing something, so if you assume Senate Democrats will filibuster spending cuts of that magnitude you're left with $1.5 trillion in deficit-financed tax cuts. Republicans know this.

This is procedural kabuki theater and the deficit-financed tax cuts we all expect to see are looming on the horizon. I don't think anyone actually expects the GOP is going to eliminating any loopholes or deductions that actually increase the burden for some corporations or wealthy individuals but, even if they did, it will never be enough to pay for their tax cuts.

The Senate just voted to throw $700 billion at the military, including funding for more F-35s than the Pentagon even asked for, so no Republican should be taken seriously when they grumble about the deficit.

And that includes Senator Bob Corker. Look at this shit:

Tennessee Sen. Bob Corker, a member of the chamber’s dwindling band of deficit hawks, said on Tuesday that Republicans have “potentially gotten to a very good place” on agreeing to how much the upcoming tax measure might cost, once the Senate’s tax writers have blended together rate cuts, additional revenue raised through curbing tax breaks, and the beneficial effects of what he called “pro-growth tax reform.” [...]

Corker said he’s willing to be flexible with revenue estimates and said, “I’m all for pro-growth tax reform but over a decade it needs to pay for itself per valid models.” [...]

Corker on Monday opposed an overwhelmingly popular defense measure that would smash the budget, saying “the inability to get our fiscal house in order is the greatest threat to our country.”

Position flexible.

  • muselet

    And when the economy inevitably falters or a natural disaster strikes or a thousand other emergencies arise, and the government doesn’t have the revenues to do anything, the very same Rs who voted for this budget resolution (and the accompanying budget) will complain loudly about how those damn’ free-spending Ds got us into that mess.

    And a hair more than 50% of the voting public will swallow it, hook, line and sinker.

    –alopecia

    • KanaW

      And how it’s proof that govamint doesn’t work, gosh darn it! /s

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  • 1933john

    It’s time to keep both eyes on FICA Funds!

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  • Badgerite

    Last time they “pro-growth” tax cutted-ed us they came close to taking the whole world’s economy over the cliff in 2008.

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