Response to After The Victory

(See: Just Above Sunset: After The Victory)

You’d think it might have occurred to Democrats in the last month or so that repealing the individual mandate was tantamount to a "repeal-without-replace" of Obamacare.

And you’d think that they then might have sounded the alarm — not just to other Democrats, but also to moderate Republicans who might then notice the danger zone their party was walking into, and even Maine Senator Susan Collins, who could have helped spread the alarm further, since the danger of Americans losing health coverage seemed to be what had motivated her no-vote on Trumpcare.

I suspect the Democrats decided not to talk this up in the lead-up to the tax vote for much the same reason that Trump didn’t. Maybe Trump didn’t want to remind the Democrats to get up in arms, while maybe the Democrats didn’t want to remind conservative Republicans, in case they hadn’t noticed, that their chance to repeal Obamacare was just another good reason to vote for the tax bill.

I hate to admit this, but Trump is right. The Democrats blew it.

Yes, next year, we can use the fact that the Republicans repealed-without-replacing as talking points against them, but I see no guarantee that will get us much traction. I think the Democrats lost their chance to do some good, and got snookered by the kind of small-time pompous shithead mob godfather who demands his capos heap praise upon him in public.

I really don’t like criticizing my own party for not getting out in front of an issue, but that’s exactly what they didn’t do this time. We do need to work on that. Oh, well, spilt milk.

But meanwhile, there are two things I want to mention about what to expect from this tax bill, and then I’ll shut up for the rest of the day.

First:

You could see this whole thing as a bait-and-switch, with the “bait” happening with just enough time before the 2018 elections to possibly effect them, and the “switch" happening so long afterward that everyone will be on to something else by then. It will be left to be handled by future generations of Republicans, who will probably explain it all away by blaming it on Democrats.

And they’ll probably get away with it, too, since remembering the truth doesn’t count for much in a world ruled by bullies, so I don’t advise assuming Republicans have filled out their own death certificate with passage of this tax bill.

Second:

When you think about whatever good effects Republicans are trying to get us all to expect from this bill, you have...

(1) “The tax cuts will improve the economy", and
(2) “The improvement of the economy will be enough for the tax cuts to, essentially, 'pay for themselves'”.

On the first, yes, we should expect some improvement in the GDP, since experience and models seem to show there usually is, but maybe not as much as conservatives think, because of this from CNN.com a few days ago:

CEOs may like the idea of a big tax cut for businesses, but that doesn't mean they'll use the savings to create American jobs.

Just 14% of CEOs surveyed by Yale University said their companies plan to make large, immediate capital investments in the United States if the tax overhaul passes. Capital investments, like building plants and upgrading equipment, can lead to hiring. 

Only a slim majority of the CEOs, 55%, said the Republican tax package should be signed into law. The Yale CEO Summit surveyed 110 prominent business leaders of Fortune 500 and Fortune 50 companies last week.

The findings, along with other surveys, suggest that the tax plan may not have the dramatic impact on jobs that President Trump and Republicans in Congress have promised.

In other words, there is already evidence of this. The so-called “smart money” is already pretty sure of what’s going to happen:

Jeffrey Sonnenfeld, who leads the Yale CEO Summit, said in an interview that it's "astounding" how few companies plan to reinvest their tax savings.

He called the idea of a jobs boom from the tax plan "a lot of smoke and mirrors," especially because the unemployment rate is just 4.1% and companies already have plenty of cash to make investments. 

Sonnenfeld declined to name the CEOs who participated in the poll. He said it included "Trump supporters" and former members of the president's now-defunct advisory councils of business leaders.

Yes, Wall Street wants this bill, but maybe it’s not so much for the reasons that Trump says they do:

Wall Street expects companies will use a big chunk of the tax savings to reward shareholders with fatter dividends and stock buybacks, which makes stocks more attractive. That's one reason stocks have surged all year, putting the Dow in sight of 25,000. 

"Markets just love it," Michael Block, chief market strategist at Rhino Trading Partners, wrote in a note on Tuesday. He said it's "malarkey" to think that cutting corporate taxes will boost spending and wages. 

"As we've seen in history, this doesn't raise wages," he wrote. "What it does lead to is richer shareholders.”  

In 2004, when Congress offered tax breaks for companies to bring foreign profits back home, businesses used much of their cash on share buybacks.  

The Center on Budget and Policy Priorities later concluded that the 2004 tax holiday "did not produce the promised economic benefits" because companies mostly bought back stock instead of investing to grow their businesses.

But onto number (2):

As we all know, maybe including most Republicans, while tax cuts may or may not boost growth, they never pay for themselves.

Still, the question is, do Republicans really care about whether tax revenues increase? In fact, have conservatives ever really cared about how much money government gets to do what it’s supposed to do?

Not noticeably.

If they did, they wouldn’t be constantly (and almost recklessly) looking for ways to cut taxes, even if doing so means cutting popular deductions. In fact, as far as Republicans are concerned, the less money government has, the better, since government seems to be always spending most of its money on doing things that only the Democrats want done anyway, such as "buying" the votes of "special interests" (such as poor people) with "giveaways".

Democrats, conservatives might argue — and they do! — are not really interested in helping the poor and the minorities who’s votes they court, they’re only interested in the power that comes from doing it. (Of course, Democrats don’t come across as “power hungry”, or not nearly much as the Republicans do, but that just goes to show how duplicitous those greedy bastards are.)

But, you may be asking, if Republicans don’t really care about government having revenue, shouldn’t they be worried about how to pay off the $1.5 trillion dollars they’re adding to the debt?

Okay, but hold the phone! We must not make the common mistake of conflating “budget deficit” with “national debt”, since “deficit" only becomes “debt” when and if you spend it!

In other words, expect some time in the future for Republicans to notice that we, for some reason nobody can explain, have this huge deficit that needs reducing! And what’s the best way to reduce a deficit — without, of course, raising taxes, which we’ve all decided should never be done?

You guessed it! We’ll need to cut spending!

And assuming you’re well off enough to have your own nest-egg and own health insurance — like any good American does, and should — then you probably won’t mind if we reduce the benefits of Social Security and Medicare (and not to forget, Medicaid, which only losers use anyway!), which is the largest chunk of change that the U.S. Government “wastes" every year.

We have to get used to the fact that, while for a very long time — probably dating back to the late 19th century as the United States became a global power — liberal assumptions about what this country represented prevailed in the country and throughout the world. America did believe in what Emma Lazarus wrote, that immigrants should be welcomed here because they helped make America great, just as former slaves deserved the same rights as the rest of us, and women deserved the right to vote. We saw to it that everyone had the same opportunity to strive and survive, no matter how poor, and we reached a landmark when we finally passed a national health program, to make sure that nobody, nor their children, suffered for not being able to see a doctor or go to a hospital.

That was then. All that liberal claptrap is now collapsing. Historians may someday look back and take note that Barrack Obama presided over the peak of America’s potential — it’s “spring of hope", in the words of Dickens, followed abruptly by its "winter of despair”.

You see where all this seems to be leading us?

If our answer to that was, “Yeah, somewhere out there in the Third World!”, then I think we may finally be coming to our senses.