It will restore the Clinton-Gingrich welfare reforms that made it more profitable to work than not work.
the measure of budget success for the Trump administration is not how much federal assistance is given out, but how many people leave government dependency and join the private labor force as full-fledged workers.
.. the best of government intentions have actually backfired by reducing incentives to work and earn.
.. The expansion of food stamps, welfare, health-insurance subsidies, unemployment assistance, and disability assistance have led to unintended consequences and perverse after-tax incentives, such that it pays more to stay on assistance then to go to work. At the working-poor margin, taking a job may rob you of Obamacare subsidies. So better off not to work.
.. Mulligan estimated that the marginal tax rate — the extra taxes paid and subsidies foregone as the result of working — had increased from 40 percent to 48 percent.
.. increase federal Medicaid spending from $378 billion today to $524 billion in 2027. That ain’t a cut either. It’s an increase.
.. Adding up each and every new year between now and 2027, the federal government will spend about $55 trillion. Do we think that’s enough? And the Trump budget would curb that by about 7 percent, or roughly $4 trillion. That’s all that’s happening.
Why Are Republicans Making Tax Reform So Hard?
One day there is a trial balloon for a value-added tax. The next, the idea of a carbon tax or a reciprocal tax. And now we are hearing the curve ball of a payroll tax cut. Steve Mnuchin, the Treasury secretary, has thrown cold water on the idea of any tax bill meeting the August deadline.
.. we believe the Republican Party’s lesson for tax reform is this: Don’t try to rewrite the entire tax code in one bill.
.. Instead, the primary goal of Mr. Trump’s first tax bill should be to fix the federal corporate and small-business tax system, which has made America increasingly uncompetitive in global markets and has reduced jobs and wages here at home.
- First, cut the federal corporate and small-business highest tax rate to 15 percent from 35 percent, which is now one of the highest corporate tax rates in the world.
- Second, allow businesses to immediately deduct the full cost of their capital purchases.
- Third, impose a low tax on the repatriation of foreign profits brought back to the United States. This could attract more than $2 trillion
- raising billions for the Treasury while
- creating new jobs and adding to the United States’ gross domestic product.
To help win over Democratic votes .. infrastructure funding ..
financed through the tax money raised from repatriation of foreign profits.
Trump’s base turns on him
Steve Bannon’s downgrade is just one of many complaints. ‘We expect him to keep his word, and right now he’s not keeping his word,’ says one campaign supporter.
.. Their complaints range from Trump’s embrace of an interventionist foreign policy to his less hawkish tone on China to, most recently, his marginalization of his nationalist chief strategist
.. a belief that Trump the candidate bears little resemblance to Trump the president.
He’s failing, in their view, to deliver on his promise of a transformative “America First” agenda driven by hard-edged populism.
.. Lee Stranahan, who, as a former writer at Breitbart News
.. “There was always the question of, ‘Did he really believe this stuff?’ Apparently, the answer is, ‘Not as much as you’d like.’”
As Bannon’s influence wanes, on the rise is a small group of Wall Street-connected advisers whose politically moderate and globalist views are anathema to the populist cause.
.. Trump voters “felt like they were voting for an anti-establishment candidate — and they’re terrified, they’re losing faith,
.. Michael Savage and Laura Ingraham, called last week’s bombing of Syria a betrayal
.. he backed away from his oft-repeated campaign line that NATO is “obsolete.”
.. Other Trump boosters worry that he’s ditching his economic agenda.
.. backed off his vow to label China a currency manipulator
.. reversal on his position to eliminate the Export-Import Bank.
.. Larry Kudlow .. expressed dismay that the president hadn’t yet released a tax plan.
.. has yet to follow through on his pledge to rescind protections for undocumented parents and children put in place under former President Barack Obama.
.. Immigration is “why we voted for Donald Trump
.. some of his loyalists are beginning to compare him to another Republican who lost the support of the party’s base: Arnold Schwarzenegger.
.. It’s like dating a girl whose father cheated on her mother. She’s always going to be suspicious,” he said. “He’s got to constantly provide wins because he’s got an emotionally damaged base that’s been abused.”
Tactical Nuclear Option Inside Reconciliation
With dynamic scoring, the Trump tax cuts would sail right through.
.. hats off to Senate Majority Leader Mitch McConnell for doing some swamp-draining when he exercised the “nuclear option” to overturn the filibuster for Supreme Court justices. McConnell busted an old 19th century rule, which was never in the Constitution
.. hats off to Senate Majority Leader Mitch McConnell for doing some swamp-draining when he exercised the “nuclear option” to overturn the filibuster for Supreme Court justices. McConnell busted an old 19th century rule, which was never in the Constitution
.. the scorekeepers are happy with tax hikes, allegedly to balance the budget. But tax hikes depress economic growth, which reduces GDP. And with a smaller income base, actual revenues decline, simply because most everybody is worse off.
.. only full employment can balance the budget, and tax reduction can pave the way to that employment.”
.. only full employment can balance the budget, and tax reduction can pave the way to that employment.”
.. only full employment can balance the budget, and tax reduction can pave the way to that employment.”
.. The CBO estimates real economic growth over the next ten years will continue to stagnate at a 1.8 percent annual pace.
.. How about a 3 percent growth rate over the next ten years? It’s still below America’s long-run average. But if you slash tax rates, particularly on large and small business, it is reasonable to assume more investment, new companies, profits, productivity, wages, and job creation
.. an economy growing at 3.1 percent per year would generate $4.5 trillion more revenues than an economy growing at 1.8 percent. $4.5 trillion.
..if Mike Enzi, chairman of the Senate Budget Committee, decides to use dynamic scoring, the Trump tax-cut proposals would sail through.