The final tax bill details are in. It is better. Many of the deductions were preserved for the middle class. This is good. The student loan deduction stays. SALT deductions up to $10,000 stay. Child tax credit increased to $2000 and up to $1400 is refundable. This is good for all families and more in pocket money for lower class families. Doubles the standard deduction this is good. The Estate Tax stays for people who stand to inherit over $11 million dollars. This is good for tax revenues. Wealthy people will still survive. Rates are lowered for tax payers. This is good. But in the end, this is still a huge fleecing of America for corporations. Important proof. Hard evidence that all that mattered to Republicans was rewarding corporations for their huge donations. Donors who couldn’t wait any longer for a return on buying the government. This is going to pass and become law. Here is what we learned and why this is has changed America forever.
Corporations Over Humans
Why is this bill offensive to the majority of Americans? Because it favors corporations over American humans. Simple as that. Cutting the corporate rate from 35% to 21% is major. Corporations have a lower rate than humans. Plus, they can still take advantage of further deductions. It will help short term growth some and does make America’s tax rates more competitive and in-line with industrialized nations. But the massive job creation won’t happen, trickle down doesn’t work, and it will be harder to raise taxes on corporations in the future. Nothing done to bring back money from tax-haven countries either. Think short term bump not long term super growth. This will create a shortfall in tax revenues and will put big pressure on everything the government pays for. Setting up something very serious. More on that later.
GOP Compromised and in Critical Condition
The biggest outcome of this Tax Bill will be the fall of the current Republican party. The Trump win and the Bannon movement was about displacing the GOP establishment. That happened. Now the Trump and Bannon movement have a terminal wound. On the other side the GOP establishment sided forever with Corporations. They had to. Mega Donors and Corporations were ruled to be people by the Citizens United ruling. Since then the dollars have been rolling in. But with no payoff. Obama was in office the whole time. In 2016 the majority was won and it was time for the payoff. The GOP delivered with this tax bill. They will try and deliver again in 2018. By going after another money drain corporations want eliminated. Social Security and Medicare taxes. This flavor of the Republican party is finished. Doug Jones won a SENATE RACE in the south. Enough said. Everywhere Republicans are having an epiphany. They took money from corporations to get elected but now their political future is severely compromised.
Federal Budgetary Armageddon
You probably notice that every six months or so Congress has to vote to fund the government. The Federal Government is reaching the point of insolvency. This Tax Bill dramatically reduces Tax Revenue for the government. Imagine a business struggling to break even that decides to cut prices dramatically. That is what just happened. The business might be hopeful that volume increases enough to save them, but it is a whimsical huge risk at best. But the Republicans don’t want to save the business. They want to create a crisis where costs will have to be cut to stay alive. That will be entitlements such as Social Security, Medicare, and Medicaid. The last remaining item on the hit list for the Koch brothers. The Republicans are going to sell their souls a second time in 2018.
Don’t be naive. The current Healthcare system is going to collapse. Not because it is any one group’s fault. The system is very old and fully racketized. Providers, Insurers, and Pharma operate by the profit motive. Pressure to grow and thrive by stockholders. Government is involved with Medicare and Medicaid. Competition for insurance is very low and heavily regulated. Public markets are garbage although the Democrats tried. The population is getting older and a huge generation is about to retire needing more healthcare. This is going to be a mess shortly that will have to be addressed. The best health plan in America this century is to do whatever you can do not see a doctor and not develop the need to take medications. The repeal of the Healthcare Individual Mandate, as part of this Tax Bill, hastens this inevitability.
Revolutionary Tax Reform Debunked
This part I like a lot. This was sold as two things. A windfall for the middle-class and also revolutionary simplification. The Paul Ryan postcard speech. The deductions were saved so the simplicity didn’t happen. Middle class will save some but more of a wash than anything. The GOP were 2 for 2 on super lies this round. Yes they think we are that simple. Oh the burden of confusing itemized deductions Paul Ryan save me!
The Republican party owed this to their donors. It will be law. Even if it means the end for them.