Thursday, November 16, 2017

The Hidden $500 Billion Cost In The GOP Tax Plan

The GOP tax plan is full of gimmicks to hide the real cost ($515 billion) of the tax cuts that is providing primarily to its donors.  The increase in federal debt over 10 years cannot exceed $1.5 trillion under Senate rules which enable the bill to pass with a simple majority.  That is, it won't need a single Democratic vote to be passed into law.  The first gimmick that they have used for decades is to assume that tax cuts will be paid for by the economic growth stimulated by the tax cuts.  This article describes the gimmicks used to disguise an additional $515 billion increase in federal debt.

The first gimmick is to provide tax cuts to the middle class which disappear by law after five years. It is a present to middle class voters which actually results in a tax increase after five years.  The second gimmick is to provide tax cuts for its donors which are  are supposed to disappear after five years. Of course, they never disappear because the GOP will never support tax increases for its donors.  Its no wonder that the GOP manages to pass tax bills for its donors by pretending that their tax bill is a present to the middle class.  The gimmicks are never discussed on Fox News and other propaganda outlets.  The "fake news" media like the Washington Post and the NYT provide analyses of tax bills but most voters don't don't subscribe to them.

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