Republican Tax Plan Descends Into Smoke and Mirrors

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Here’s the latest news on the tax front:

Senate Republicans on Thursday plan to propose delaying a cut in the corporate tax rate from 35 percent to 20 percent until 2019, four people briefed on the planning said, a major departure from President Trump’s insistence on immediate changes that he says are necessary to spur the economy….To try to prevent companies from waiting until 2019 to invest, Senate Republicans will propose to allow companies to immediately deduct all capital investments in 2018 to incentivize them to spend more money immediately, the people said.

I have two comments:

  • This is idiocy in the extreme. The sole reason for delaying the tax cut is to reduce the cost of the plan in its first ten years. It makes no sense as policy, but it’s a good way to game the CBO score.
  • It’s not a “major departure” from anything. Donald Trump doesn’t have a clue what he really wants, and he will praise anything that Republicans produce.

We are now entering serious smoke-and-mirrors territory.

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IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

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