Taxes

“Tax Cuts 2.0”

JM Ashby
Written by JM Ashby

Members of the Trump regime recently spoke to the press and said they were developing a new package of tax cuts intended to fend off an economic downturn, but Trump spoke to reporters the following day and insisted that he wasn't considering more tax cuts because the economy is already great.

There is no downturn and the Great Economy doesn't need a tax cut, right?

We haven't heard much about their theoretical tax cuts since then but it appears that the proposal is still alive and well and they've even gone through the trouble of rebranding their next package of tax for the rich as "tax cuts 2.0"

“I think there’s no question the U.S. economy is in very good shape. As we look around the world, there’s no question that China is slowing, Europe is slowing — the U.S. is the bright spot of the world,” [Treasury Secretary Steve Mnuchin] told reporters.

“And regards to a middle class tax cut, you know, we’ll be looking at tax cuts 2.0, something that will be something we’ll consider next year,” he continued. “But right now, the economy is in very, very good shape.” [...]

Amid economic warning signs and fears of a forthcoming recession last month, National Economic Council Director Larry Kudlow asserted the administration was again reviewing a series of middle-class tax reductions.

We are looking at it. Tax cuts 2.0. We are looking at all that,” Trump’s chief economic adviser told “Fox News Sunday.”

The fact that Mnuchin and Kudlow both independently referred to their proposal as "tax cuts 2.0" tell us that's a branding they agreed to at the White House before speaking to the media.

As for who thought branding their tax cuts like an operating system was a good idea, my money is on Jared or Ivanka, but I digress.

Trump's lackeys are clearly trying to thread a needle by asserting that the economy is the "bright spot of the world" while also quietly preparing for a time when it won't be so bright.

Another package of tax cuts for the rich has virtually no chance of passing through Congress while Democrats control the House of Representatives and while Trump's previous tax cuts are already eating a $1.5 trillion hole in the federal budget.

Trump's advisers are undoubtedly aware that they won't be able to pass more tax cuts so any proposal they put forward should be seen as a campaign proposal. The economy is going to take a turn for the worse during an election year and the Trump campaign's response is going to be 'vote for me and I'll cut your taxes again.' That message didn't work out so well for John McCain.

Treasury Secretary Steve Mnuchin implied that "tax cuts 2.0" would be a middle class tax cut, but they said the same thing about tax cuts 1.0. Previous reports based on statements from White House officials indicated that "tax cuts 2.0" would include another tax cut for corporations and a huge tax cut on capital gains for wealthy shareholders.

  • muselet

    “Tax cuts 2.0” is apparently what passes for clever branding in Trumpworld.

    The mind boggles.

    And no, these tax cuts won’t benefit the middle class any more than the first batch did.

    –alopecia

  • Draxiar

    They may as well say, “Oh you thought we gave you little people a tax cut a couple of years ago? You must have been misinformed *wink*. This time we’ll *really* give you a tax cut…promise. *crosses fingers*”

    • Badgerite

      Good point. Like they are even remotely trustworthy.