$1.5 Trillion GOP Tax Cut Thread

[Frodo]

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Politico

[Frodo]

Won’t be on for long, but I thought I should note that if a 5% VAT would raise $1.8 trillion(which I saw in one source), a 17.5% VAT would raise $6.2 trillion, and even a 10% VAT would raise $3.6 trillion. At that rate, surely some way could be found to balance the budget.

A VAT would raise even more. A broad-based VAT (which includes things like food though) would have a tax base of 40-50% of GDP, which means a 5% VAT would raise 2-2.5% of GDP (I guess that's $5-6 trillion over a decade).

I strongly believe the VAT is the solution to all American tax problems. Just use a VAT to repeal the corporate income tax (Republicans must like this) and to expand working/middle-class tax breaks like the child tax credit and the standard deductions (Democrats should like this) and you have a tax code that's much more efficient and much simpler and while also raising the same amount of revenue (and if you partially offset the cost of corporate tax repeal with small tax increases on capital gains it also wouldn't increase inequality).

But it's a political nonstarter because Democrats don't like regressive taxes (they're afraid Republicans will raise it because it's regressive) while Republicans don't like new taxes in general (and indeed there is a case to be made that it's the VAT which caused bloated European welfare states).

A VAT is the most efficient form of tax currently in use by advanced nations. I have always been in favor of a VAT being used to finance some form of universal health care; its visibility would link the tax to health care, while the universal aspect would make it more difficult to repeal.

Realistically from a policy perspective, the best policy is a blend of multiple taxes, some of which are visible and linked directly to government spending and some of which are opaque

A VAT combined with the top individual income tax rate set at or near 50%, increased capital gains, dividend and estate taxes, cracking down on overseas corporate tax havens, and a carbon tax would bring untold trillions to the treasury.  More than enough to afford everything, including shrinking our debt small enough it can be 'drowned in a bathtub' (to use Grover Norquist's immortal phrase), and ensuring every candidate is publically funded.   

[Frodo]

This wealthy wank is going to crash the economy.

It seems that's the only way Americans are going to be weaned from Trumpism -let them suffer from the effects of his policies.  If they're not going to listen to the mainstream media, they will listen to their pocketbooks, at least.

[Frodo]

This wealthy wank is going to crash the economy.

It seems that's the only way Americans are going to be weaned from Trumpism -let them suffer from the effects of his policies.  If they're not going to listen to the mainstream media, they will listen to their pocketbooks, at least.

Thing is, this is unlikely to cause any short term pain. The ill effects will largely happen after Trump's term, when Democrats will suffer the consequences of passing the measures needed to deal with this mess.

I'm not just referring to his tax cuts -Obamacare repeal by executive fiat would impact many of his white working class supporters. Let's face it, the bill by Sens. Murray and Alexander is not going to pass the House, and even by the slim chance it did, I wouldn't count on Trump signing it into law. 

[Frodo]

This wealthy wank is going to crash the economy.

It seems that's the only way Americans are going to be weaned from Trumpism -let them suffer from the effects of his policies.  If they're not going to listen to the mainstream media, they will listen to their pocketbooks, at least.

Thing is, this is unlikely to cause any short term pain. The ill effects will largely happen after Trump's term, when Democrats will suffer the consequences of passing the measures needed to deal with this mess.

I'm not just referring to his tax cuts -Obamacare repeal by executive fiat would impact many of his white working class supporters. Let's face it, the bill by Sens. Murray and Alexander is not going to pass the House, and even by the slim chance it did, I wouldn't count on Trump signing it into law. 

You make some good points but it's very hard for me to support something that benefits the wealthy way more than the middle class and adds to the deficit. That being said I understand the framework and budget are not gospel and will postpone judgment until I see the final tax reform bill.

I'm not arguing in favor of the tax cuts. 

[Frodo]

The Freedom Caucus will back the Senate GOP budget plan -but they want their pound of flesh in exchange for their support:

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http://www.politico.com/story/2017/10/20/freedom-caucus-senate-budget-tax-reform-244002

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Study: GOP tax plan would cost $2.4 trillion

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The Hill

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If there is to be an economic downturn (or even another crisis) sometime within the next few years, I'd rather it happen with these tax cuts already in place.  It would be all the more easier to discredit supply-side economics that way. 

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The real reason for these tax cuts is to drive up the deficit and our national debt, and make our interest payments on that debt so high that by the time Democrats regain power, it will cripple any attempt by them to pursue their agenda.  

Yes, they are that cynical.  The GOP knows they can't hold on to power for much longer, so why not poison the well?

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While we're at it, let's take another swipe at Obamacare:

Conservatives push to repeal Obamacare mandate in tax package

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Senate GOP tax bill could delay corporate tax cut and make other major changes that break sharply with House plan

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WashPo

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I said this once in another thread, and I'll say it again here:  if this bill passes, it will be the albatross around the neck of the GOP that Obamacare was for Democrats for years to come, especially if we succeed in casting it primarily as a tax cut for the rich and multinational corporations at the expense of the middle class:

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Tribune News Service

It is delicious satisfaction to watch Republicans be given a taste of their own medicine.  

[Frodo]

If a tax cut plan does pass, I'd rather it be this one:

Middle class biggest winners in Senate tax plan, study says

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https://www.politico.com/story/2017/11/12/tax-middle-class-republicans-244815

[Frodo]

If a tax cut plan does pass, I'd rather it be this one:

Middle class biggest winners in Senate tax plan, study says

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https://www.politico.com/story/2017/11/12/tax-middle-class-republicans-244815

Does this tax plan still tax graduate students for their tuition remission?

It's a mixed bag.

It's still early in the process, though.    

[Frodo]

If a tax cut plan does pass, I'd rather it be this one:

Middle class biggest winners in Senate tax plan, study says

https://www.politico.com/story/2017/11/12/tax-middle-class-republicans-244815

But wait, there's a wrinkle:

Bipartisan analysis: Senate bill would hike taxes for 13.8M

By MARCY GORDON, Associated Press

WASHINGTON —

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[Frodo]

The CBO has confirmed what we already knew -the Senate GOP plan (to say nothing of the House version) will definitely screw the poor while giving relief to the rich and the corporations:

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WashPo