Republicans also denounced and ridiculed the Obama administration’s efforts at fiscal stimulus, which included payroll tax cuts intended to raise workers’ incomes and lead to higher spending. Trump’s 2017 tax cut basically bypassed ordinary workers, giving big tax breaks to corporations instead, on the theory that these tax cuts would trickle down to the middle class. Now the Trump administration is basically admitting that trickle-down isn’t working and that Obama-style stimulus is actually the right way to go.
For what it’s worth, I don’t think any of these desperate measures is likely to happen anytime soon. The Fed is in no mood to be bullied by a president it believes has damaged the economy with his trade war. And while Democrats might support a clean payroll tax cut that really went to workers, my guess is that Republicans won’t be able to resist the temptation to lard their proposals up with more goodies for the rich.
And maybe none of it will be needed. We don’t actually know that a recession is coming. But if it does come, we know how the administration will respond: with blind panic.
The Romney Disease
How does this happen? It happens because the Republicans with the solid family lives, sparkling résumés, unlined faces, and big white teeth think they are entitled to rule the rest of us in their own interests. They think their (real) virtues entitle them to ignore the priorities of the electorate. There will always be fools and con artists but, right now, the vices of the good men are killing us.
The Republicans have managed the unlikely feat of producing a tax-cut bill that has only 26 percent support. This is part of a pattern whereby the allegedly responsible, thoughtful, public-spirited Republican leaders, such as Paul Ryan, produce legislation that is somehow even less popular than our already very unpopular president.
.. But maybe they haven’t forgotten. Maybe the Republican leadership has changed.
.. But something has changed in recent years. One visible sign was the Wall Street Journal’s infamous “lucky duckies” editorial, which complained that lower-middle-class people (those lucky duckies) with little income-tax liability might get a cut to their payroll taxes, and that this cut would reduce the tax cuts that might otherwise have gone to the more productive and deserving high earners.
.. Edward Conard, like Mitt Romney a Bain Capital guy, might be called Mitt Romney’s id. He argues that a proposal to set the corporate tax rate at 22 percent rather than 20 percent in order to finance a tax credit that reduces the payroll-tax liability of mostly wage-earning parents would hurt the economy, because it would reduce economic growth and diminish “middle-class incomes in the long run.”
.. The congressional Republicans are having trouble selling tax cuts to the middle class, because the middle-class tax cuts are included only grudgingly as a sweetener for the business and high-earner tax cuts that are the real goal of the Republican congressional leadership.
.. The elite Republicans haven’t forgotten. They have changed.
The Republican Party of Mitt Romney and Paul Ryan is no longer the party of Ronald Reagan and the middle-class tax revolts of the 1970s.
.. Why do Americans turn to elderly socialists like Bernie Sanders, or clownish (or worse) populists like Trump and Roy Moore? It is because the best of the Republicans are wedded to a politically self-destructive view of the world.
.. They seem to have the home life of the family man. They have the discipline and diligence of the organization kid. They have the looks of the pretty boy. Yet the public still rejects them, because the voters find their ideas even more unpleasant than Donald Trump’s odious personality.
.. When they think they can get away with it, they disparage the idea of tax cuts for the middle class (much less for wage-earning parents). They pretend that the taxes paid by wage-earners don’t even exist. They mouth the Reaganite lift-all-boats rhetoric, but they act on a get-those-lucky-duckies agenda. Reagan’s party is being infected with the Romney Disease.