Yesterday I noted that both the Donald Trump "tax reform" plan and the tax cut proposals of GOP gubernatorial candidate Ed Gillespie are based on the long disproved GOP economics that tax cuts for the wealthy will somehow miraculously cause an expansion of economic activity and replace the revenues lost to massive tax cuts. It did not happen under the Reagan tax reform and more recently it utterly failed in Kansas where extremist governor Sam Brownback and a GOP controlled legislature imposed a GOP dream approach to tax cuts on that state. the results were disastrous and eventually many Republicans joined with Democrats to raise taxes to avoid junk bond status for the state's borrowings and to fund needed services such as roads, public schools and higher education. Thus the question becomes one of why does the GOP continue to cling to economic and tax policies that have been documented to never work in any way except to put money in the pockets of the super rich and large corporations? A column in the New York Times gives and explanation. Here are excerpts:
Last week the Trump administration and its congressional allies working on tax reform achieved something remarkable. They released a tax plan — or, actually, a vague sketch of a plan — that manages both to add trillions to the deficit and to raise taxes on a large fraction of the population. That takes talent.
But like the G.O.P.’s terrible, no good, very bad health plans, this tax debacle was years in the making. On taxes, as with health, leading Republicans have been lying for years. And now the fraud has caught up with the fraudsters.
The road to this tax-cut turkey began in 2010, when Paul Ryan — now speaker of the House — unveiled the first of a series of much-hyped budget plans, all purporting to offer a blueprint for eliminating the U.S. budget deficit.
In fact, they did no such thing. They proposed major tax cuts — primarily benefiting the rich, of course — then simply asserted that no revenue would be lost, because reduced tax rates would be offset by closing loopholes and eliminating deductions. Which loopholes and deductions? Ryan didn’t say.
[T]he Ryan plans also assumed drastic cuts in spending outside Medicare, Medicaid and Social Security. What programs would be cut? The budget office again: “No proposals were specified that would generate that path.”
And what was the Ryan plan if you took out those mysterious revenue raisers and spending cuts? A plan to drastically cut taxes on the rich, savagely cut benefits for the poor and the middle class, and increase the overall deficit.
In other words, it was all a con. As I wrote in a 2010 column titled “The Flimflam Man,” “The Ryan plan is a fraud that makes no useful contribution to the debate over America’s fiscal future.” That judgment looks as valid now as it did then.
And the con went on for years. To this day one sometimes reads articles portraying Ryan as a serious policy wonk, despite abundant evidence of his unseriousness and real questions about his actual command of policy.
But then Republicans regained the White House, meaning that they had to come up with actual tax legislation. And this has put the con under terrible strain.
True, Republicans could just cut taxes on rich people — always their overriding priority — not worry about paying for it, and blow up the deficit. After all, their supposed concern about federal debt was always just a pose, applying only when a Democrat was president. But after all those years of pretending to be deficit hawks, they feel the need to be seen doing something to offset their high-income tax cuts, to close some loophole somewhere.
So they came up with what probably seemed like a clever idea: eliminate the deductibility of state and local taxes. Hey, that would mainly punish people in tax-and-spend blue states, right? Not their problem.
But this turns out to be a much bigger deal than they seemed to realize. (As with health care, they appear to have no idea what they’re doing.) . . . . But eliminating deductions would make many Americans, especially in the upper reaches of the middle class, directly worse off: Almost 60 percent of households between the 80th and 90th percentiles of the income distribution would face tax increases.
And this would happen even though the plan would add several trillion dollars to the deficit. Did I mention that many of those facing tax hikes vote Republican?
In broad outlines, the tax story is a lot like health care. In both cases, Republicans have spent years getting away with big promises backed by lies. Now, with real policy to be made, the lies won’t work anymore. And they can’t handle the truth.
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