Why Tax Reform Terrifies Democrats

Democrats’ Strategy of Resist, Persist & Throw Hissy Fits
The View from the Middle

Just when I think that the Hypocrisy can’t get any worse in Washington, just when I think that the actions of our politicians can’t get any more ridiculous, Chuck Schumer and Nancy Pelosi show me that they know no limits. I had to actually laugh out loud when Ms. Pelosi said that Donald Trump was only interested in “stunts” (referring to the empty seat picture of the debt ceiling meeting) especially when she had just executed a marvelous stunt of her own by refusing to meet with the President in the first place. Are these people listening to themselves?
But what’s more ridiculous is the lack of any real strategy by Democrats to make our country better. If anyone out there has any evidence of what that is, let me know. And don’t show me some dusty platform document that hasn’t been touched by Democrat leadership for more than a year now. Show me what Democrats are talking about on a daily basis other than resist, persist, insist, enlist, desist (and anything else that rhymes with resist). This may be a strategy to get people elected (or not, I’m not sure) but it certainly is not a strategy that will help the country.
Love him or hate him, Donald Trump is actually following through on his campaign promises. His administration has significantly reduced regulations, put Neil Gorsuch on the Supreme Court and at least tried to repeal and replace Obamacare. This kind of promise keeping is unheard of in politics and may be one reason why Trump maintains support despite his childish and often abrasive personal style. And now, as if all those “promises kept” were not enough, he is inches away from delivering on his pledge to reduce and reform America’s taxes.
Are the bills that have been passed by the House and will be passed by the Senate perfect? Of course not, but no tax bill would, whether it was initiated by Democrats or Republicans. There are too many factions to appease. In our Congress and in our country we find everything from the ultra conservative TEA Partiers to Libertarians to moderate conservatives and liberals to the big government liberals to the ultra-liberal socialist democrats represented by Elizabeth Warren and Bernie Sanders. A bill that would please all of these people does not exist.
But the bills that currently exist contain some very encouraging elements. First of all, the actual tax rate will go down for virtually every tax bracket with an emphasis on the lower brackets that impact average and lower income households. Next, the standard deduction will likely double even in the compromise bill and so will the child tax credit which has a huge affect on middle to lower income tax brackets.
Corporate rates will be dramatically decreased from the current 35% rate to somewhere in the low 20’s and both versions include an incentive to repatriate profits back to America where they can be invested to expand markets, increase incomes and create more jobs.
All of this will stimulate the economy from both the supply side (trickle down) and the demand side (bubble up). My honest assessment of this bill is that all Americans will benefit through higher wages, lower unemployment and higher job participation levels as well as just having more of their own money to spend. In the end, I predict that all of this will happen while also reducing our deficits as our economy will grow in the 3 and 4 and even 5% levels. This will drive higher revenues into the treasury which happened under Coolidge, Kennedy, Johnson, Reagan and Clinton. With a little discipline on the spending side we could even balance the budget and actually reduce the debt we are currently planning to pass on to our children and grandchildren.
With all of the positive aspects of this tax bill, you ask yourself, “How can Democrats be against it?” There is a simple twofold answer. First, their whole strategy is to resist and obstruct. That’s all they have, so they must focus on the small pieces that make it “not perfect” and ignore all of the benefits. But the real answer is that they are terrified that this will actually work.
Imagine if the Republicans pass this bill in December and our economy starts growing at 3 or 4% by the midterms in 2018? Republican majorities could actually increase in both the House and the Senate. What if people do their taxes for the 2018 tax year and 90%+ notice that they are paying less taxes than they did the year before? What if 90%+ of Americans find that they can now use the short form (maybe even a postcard) to file their taxes? What if the labor force participation rate gets back to 64 or 65% (it is currently under 63%) and income levels begin to rise again? What if, because of increased revenues and lower spending, we can decrease our deficits and see a path to a balanced budget by November of 2020?
This is the nightmare that Chuck Schumer and Nancy Pelosi dream every night, and they are willing to keep all of these positive things from happening as long as they can keep their jobs and cushy lifestyles. I say, bring on the tax cuts, and I may even consider voting for Trump again if he delivers the results!!