Republicans Kill Personal Tax Cut In Order to Save the Corporate Tax Cut

Yesterday I was in a quandary: how, oh how, will Republicans manage to keep their tax bill from increasing the deficit in 2028 and beyond, as required by Senate rules? One possibility has always been to make the tax cuts temporary, like the Bush tax cuts, but that seemed like a nonstarter. After all, it makes no sense to enact temporary corporate tax cuts. Businesses need to plan ahead and they need to know what the tax landscape is going to look like.

But wait! The tax bill isn’t all corporate tax cuts. There are also personal tax cuts. Here’s what they look like if you disaggregate them:

Hmmm. What if you kill off the personal tax cuts in 2026? That cuts your deficit in half. Progress! But we need more. CBO estimates that eliminating Obamacare’s individual mandate would save some money, so let’s pencil that out:

Look at that! Now the total deficit in 2027 is only $37 billion. That’s totally manageable with a bit of creativity. Maybe some spending cuts on the poor would do the trick. Or a bit of fiddling with some of the details of the corporate rate cut. Or some chained-CPI inflation gimmickry.

So that’s where we are. Republicans plan to make the personal tax cuts temporary and to eliminate Obamacare’s individual mandate. This means the middle class goes from getting a pittance to getting nothing to getting actively screwed because their Obamacare premiums will go up. If Republicans are wondering why a large majority of Americans think their tax plan favors the rich at the expense of the middle class, this is why.

UPDATE: The labels on the top chart were switched when this was first posted. They are now correct.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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