Posted by: maboulette | December 12, 2017

US Treasury Releases One-Page Analysis of GOP Tax Bill


US treasury

After months of pressure from watchdog groups as well as phone calls from many citizens, the U.S. Department of the Treasury, led by Trump-appointee Steve Mnuchin, finally has released a one-page analysis of the Republican tax bill. This analysis shows that even when analyzed under Republican-favored methods, the tax cuts will grow the federal deficit and will need additional policy aberrations to produce the revenue needed to pay for them. The analysis shows that only half of the growth will come from the trickle-down effect of the tax cuts. The other half would be encouraged by a combination of:

  • Regulatory reform;
  • Infrastructure development;
  • Welfare reform.

PAY FOR THE BILL

This means that for the tax plan to make up for the $1.5 trillion addition to the federal debt, Congress needs to make comprehensive infrastructure legislation, cuts entitlement programs like Medicare and Social Security, and other unspecified regulatory reform.  And there will be a fight over Medicare and Social Security since this is money taken out of workers pay and is supposed to be available for retirees – there will be some fight coming over this.  If you use this money, you will lose many Republican voters who are using this money for their retirement.

3% GROWTH OVER 10 YEARS

The report also admits that the economy will experience close to 3 percent in growth over the next 10 years—that’s a growth level the U.S. hasn’t seen since 2005. “We acknowledge that some economists predict different growth rates,” Treasury wrote in the document.

GOP REVENUE INCREASE

The breakdown supposed that a Republican-led Congress would increase revenues by $1.8 trillion over a decade. Democrats are calling the Treasury’s estimate “fake math.”

PHONY MATH

This “phony math,” is enough to make “Bernie Madoff blush,” said Senator Ron Wyden, the ranking Democrat on the Finance Committee.

GRASPING AT STRAWS

“It’s clear the White House and Republicans are grasping at straws to prove the unprovable and garner votes for a bill that nearly every single independent analysis has concluded will blow up the deficit and generate almost no additional economic activity to make up for it,” said Senate Minority Leader Charles Schumer.  Not to mention what will happen to many of the elderly who are living on their Medicare and Social Security.

GOP LEADERS

Top Republican leaders like House Speaker Paul Ryan and Senator Marco Rubio have indicated that reform to entitlement programs such as Social Security and Medicare are next on the legislative calendar for the Republican-controlled House and Senate. “We’re going to have to get back next year at entitlement reform, which is how you tackle the debt and the deficit,” Ryan said last week.

DIFFERENT WAY

Here is a different way of thinking – vote and work on the payment for the debt and the deficit before passing the tax bill.   See if you will have the public behind you on reforming entitlement programs first before doing anything.  You won’t because you know that most seniors are living on Social Security and Medicare and there would be a revolution if those funds are touched for any reason except for what these funds are supposed to be used for.

Why does the Republican party always place party over country – that is not the way to govern.

 

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