Just. Cut. Taxes.

But the world is what it is, and a party that offers nothing, whose ideological sclerosis and internal contradictions allow it to offer nothing, might as well just go pass a tax cut and call it a day.

.. the Republican leadership in Congress persuaded itself that it could pull off a complicated fiscal maneuver, using health care reform to change the budget baseline in anticipation of a tax reform more comprehensive and enduring than George W. Bush’s tax cuts 15 years ago.

.. Republicans could just go ahead and cut taxes the way Bush did — without major offsets but with a 10-year expiration date, so that all you would need is 50 votes plus Mike Pence to do it.

.. there are still lots of clever and plausible ways to overhaul and improve the tax code without sacrificing revenue.

.. You could cap various perverse deductions that mostly benefit wealthy blue-state taxpayers, like the home-mortgage and state and local tax deductions, and use the savings to lower rates across the board. You could cut the corporate tax rate and raise the capital-gains tax rate to compensate, as Senator Mike Lee has proposed. You could even (gasp, heresy, gasp) raise the top income tax rate, as Steve Bannon reportedly wants to do, and use the savings to cut payroll taxes or fund a new child tax credit.

.. Republicans don’t seem equipped to pull off anything complicated, they don’t look united enough to take political risks, and they aren’t ideologically ready to pass anything heretical. So barring a sudden transformation in the party and its leadership, a temporary, deficit-financed tax cut is the only thing that has a decent chance of happening

.. One reason among many that Obamacare repeal has run aground is that the deficit picture doesn’t look as dire as it did when the health care law was passed — and Obamacare itself is not driving the kind of spending surge that many of its critics (myself included) feared.

.. Instead, the ugly years of fiscal cliffs and shutdowns and sequesters produced a certain amount of deficit reduction even without a grand bargain, Medicare spending has been coming in lower than expected, and interest rates have stayed historically low.

.. without doing much entitlement reform, we’re in much better shape than either the Simpson-Bowles commission or the deficit hawks of the 1990s projected.

..  I can live with a Trump administration that appoints conservative judges and fails at everything else, since judicial appointments are about the only thing I trust this G.O.P. to do.

This dirty little secret is the real reason why repeal is so hard for Republicans

The Affordable Care Act has widely been held aloft as one of the leading drivers of the deepening polarization of American political life — it has been bitterly fought over for years and has loomed as a great embodiment of all that ideologically divides the two parties. Yet in a strange twist, the GOP debate over repeal has actually revealed that there is a surprising amount of hidden consensus on health care.

.. nutshell, what the debate has really shown is that the passage and implementation of the ACA has given rise to a latent majority in Congress — or at least one in the Senate — that has more or less made peace with the ACA’s spending and regulatory architecture and its fundamental ideological goals

.. GOP Sen. Jerry Moran of Kansas that neatly illustrates the point. Moran is a GOP loyalist who previously headed the GOP Senate campaign arm and sits firmly in the mainstream of today’s GOP. Yet even he is having trouble supporting the GOP bill.

.. He did not describe the task facing Republicans as repeal; it was “repair, replace, whatever language people are using.”

Pressed by activists and voters, Moran said that he did not want to cut back Medicaid. “I have concern about people with disabilities, the frail and elderly,” Moran said. “I also know that if we want health care in rural places and across Kansas, Medicare and Medicaid need to compensate for the services they provide.”

After the town hall meeting, Moran told reporters the version of the GOP’s bill that he opposed put too much of Medicaid at risk.

.. He is suggesting that, while able-bodied adults might allegedly be scamming their way onto the Medicaid expansion, this issue should not be taken to justify the deeper cuts to Medicaid. And this, as Weigel notes, unfolded in one of “the reddest parts of a deep red state.”

.. The bottom line is that Republicans who currently oppose the Senate bill object to it because it would roll back federal spending in a way that would hurt millions and millions of people. This includes Moran and moderates such as Dean Heller of Nevada, Susan Collins of Maine, Shelley Moore Capito of West Virginia, and Rob Portman of Ohio, all of whom have made variations of this argument. Some, such as Collins and Sen. Bob Corker of Tennessee, have even objected on the grounds that this would finance a massive tax cut for the wealthy, and that this is indefensible.

.. All of this is dramatically at odds with the ludicrous spin coming from GOP leaders such as John Cornyn of Texas and House Speaker Paul D. Ryan of Wisconsin, who argue that the millions left uncovered under the GOP bill will be choosing that plight, because they will have been liberated from the hated ACA mandate.

.. To summarize, Republicans are arguing both that

  1.  millions won’t actually be hurt by these Medicaid cuts, either because they aren’t really cuts, or because everyone will have “access” to health care later; and that
  2. if many millions of people go without coverage who would otherwise have been covered, they did so by choice.

it is of course possible to make a principled argument against the mandate, Republicans are doing something else entirely: They are hiding behind their arguments against the mandate to evade acknowledging the true human toll their proposed Medicaid cuts would inflict.

What this really means is that they are basically fine with rolling back the ACA’s massive coverage expansion to facilitate a massive tax cut for the rich, but just won’t say so out loud.

But all indications are that moderate Republican senators — and even senators such as Moran — are not fine with this outcome.

Now, these objecting senators may still end up supporting a revised GOP bill in the end, due to party pressures and other factors. But if they do, they will only justify it by pretending that a few additional last-minute dollars (in relative terms) added to the bill would put a meaningful dent in the enormous coverage loss

.. This would mean their current objections were insincere.

 

 

The Senate’s Tax Panic

ObamaCare created a 3.8-percentage-point surtax on capital gains, dividends, interest and other forms of so-called “unearned income.” This tax increase on capital was sold as hitting the rich, but note that it brought the top rate to 23.8% for singles earning as little as $200,000 and couples $250,000. That’s a middle-class couple.

.. The conceit seems to be that Democrats and the media will give Republicans credit for surrendering, the controversy will melt away, and everyone will repair to the ideological conformity of the Aspen Ideas Festival.

.. Best of luck with that one. Democrats will pocket the concession and continue demagoguing tax cuts for the wealthy as the tax debate begins—only more emboldened for having tasted blood.

.. the goal of this left-right assault isn’t simply to defeat the health-care bill but to sink pro-growth tax reform too.

..  Republicans won’t be in a stronger position after they’ve shown they can’t win the class-warfare argument.

.. The larger progressive ambition is to make it too much trouble to ever again cut marginal tax rates for individuals or businesses to grow the economy

..  A coterie of Beltway conservatives wants Republicans to repudiate their post-Reagan economic principles and return to their former status as tax collectors for the entitlement state while embracing right-wing income redistribution with child tax credits and family-leave subsidies.

.. The reason is to increase the stock of capital and improve the incentives for capital formation, which in turn increases labor productivity, wages and job creation.

.. Cutting the rate on capital income to 20%—it was 15% as recently as 2012—is a major increase in the return on investment and 3.8 points is close to half of the eight-point cut in the Bill Clinton-Newt Gingrich budget deal of 1997. That reform helped propel the 1990s boom

.. repealing the surtax would increase employment over the decade by 133,000 jobs and increase the size of the economy by 0.7%. After-tax earnings across the bottom 60% of the income distribution would be about 0.65% higher than they would otherwise be. Combined with a successful tax reform, workers could see a big pay raise for the first time in years

 

Shields and Brooks on GOP’s health care bill gridlock, Trump tweet backlash

The basic problem is that this is a bill that massively redistributes wealth to the rich.

Trump’s Super Pac attacked the most vulnerable member of his party

Brooks: It’s more than unhelpful.  Its a corruption of the public sphere.

Shields: He’s more engaged with Morning Joe than with Healthcare Policy

One of the things that may offend people is Mafioso extortionate behavior: using the National Inquirer to take down opponents.

Shields: this adds to the credibility of James Comey

I remember when Republicans got upset with Bill Clinton for not wearing a suit and tie in the Oval Office