Government does not tax to get the money it needs; government always finds a need for the money it gets. – Ronald Reagan
Bloomberg.com reports that
President-elect Donald Trump’s race to enact the biggest tax cuts since the 1980s went under a caution flag Monday as Senate Majority Leader Mitch McConnell warned he considers current levels of U.S. debt “dangerous” and said he wants any tax overhaul to avoid adding to the deficit.
“I think this level of national debt is dangerous and unacceptable,” McConnell said, adding he hopes Congress doesn’t lose sight of that when it acts next year. “My preference on tax reform is that it be revenue neutral,” he said.
During a news conference, McConnell also poured cold water on the idea of a massive stimulus package, effectively laying out markers on taxes and spending that that could cramp Trump’s ambitions.
The Committee for a Responsible Federal Budget, a nonpartisan think tank, has projected that Trump’s plans wouldincrease the debt by $5.3 trillion over a decade, with deficits already over $600 billion a year and rising on autopilot.
If Trump achieves the plans he has laid out, “the deficit’s going to be a lot higher than expected, at least in the short term,” said Stan Collender, a budget expert and former Democratic congressional aide. It could rise to $1 trillion per year for four years, he said.
As for Trump’s infrastructure plan, touted as costing roughly $1 trillion but with more than 80 percent of the financing coming from the private sector, McConnell said he’s looking forward to seeing the details.
“What I hope we will clearly avoid, and I’m confident we will, is a trillion-dollar stimulus,” he said. “Take you back to 2009. We borrowed $1 trillion and nobody could find that it did much of anything. So we need to do this carefully and correctly and the issue of how to pay for it needs to be dealt with responsibly.”
One interesting wrinkle is that Trump has named McConnell’s wife — former Labor Secretary Elaine Chao — to head the Department of Transportation, which would likely make her one of his point people on any infrastructure package.
The debt limit will need to rise next year to avoid defaulting on government obligations; McConnell said he wasn’t sure if that would be paired with any deficit-reduction measures next year as it was in 2011, when Republicans held the debt limit hostage and extracted more than $2 trillion in deficit cuts over a decade from President Barack Obama.
House Speaker Paul Ryan has also said he wants tax changes to be deficit-neutral, indicating that Republicans will assume positive macroeconomic benefits from tax cuts to ease the projected budgetary hit — a process known as dynamic scoring that is popular on the right.
McConnell offered little specificity on changes to Obamacare, saying the Senate would kick off the new year with an Obamacare resolution and then start working on a replacement.
Simply waiting wasn’t an option, he said.
“The notion that we could do nothing and allow the current law to implode is unacceptable,” McConnell said. “So, I hope no one believes no action is possible or appropriate.”
That replacement process could take as long as three years, according to Republican senators, although some conservatives, particularly in the House, want a much faster timeline.
In the short term, eliminating all of Obamacare — including its taxes and Medicare cuts — would add to the deficit, the Congressional Budget Office concluded in 2015.
Before the election, McConnell had said he hoped to work on limiting eligibility for programs like Medicare and Social Security if Hillary Clinton was elected. He didn’t repeat that call Monday.
Correct me if I’m wrong but aren’t the Republicans supposed to be the fiscally-responsible party?
The Establishment or “Vichy” Republicans, must idolize or at least respect the Democratic Party because they seem Hell-bent on copying them in their actions, words, and deeds.
Just look at their track record over Obama’s tenure n the Oval Office.
As we say in Dixie, they ain’t done squat.
And now, like a bunch of Democrats, they expect us to forget their lack of intestinal fortitude, while in office, and to remember that “they” won the Presidency.
Oh, we remember them all right. But, not in the way they want us to. We do not remember them as leaders. Oh, no. Rather, Americans, here in the Heartland, remember them with all of the fondness that the French Resistance remembered the Nazi collaborators, or Vichy French, after World War II.
What slays me is the fact that the Establishment Republicans seem to be quite content, in their moderately left-leaning stupor, to be totally oblivious and tone deaf of their Base, average hard working middle-class Americans like you and me.
You know, the people who just voted the Republican Presidential Candidate into office.
The Vichy Republicans keep on making bad choices.
They are pushing for maintaining the Washingtonian Status Quo because they erroneously believe that they know “what’s best for us”.
Spineless Vichy Republicans have been a barrier to Republican Success in governing for as long as I can remember. Like Quakers, Establishment Republicans seem to believe that passive resistance and reaching out to their sworn enemies as “friends”, is the way to defeat those who oppose you.
It has been especially bad during Obama’s reign, as the House and Senate Republican Leadership apparently cherished their friendship with the Democrats more than they did the wishes of the folks back home. Yes, they talked a good game, but so did Jon Lovitz in those “Liar Sketches” during the old days of Saturday Night Live, back when they were actually funny.
Yeah, my wife Morgan Fairchild. Yeah, that’s it. That’s the ticket!
I believe that the Republican Party is stuck in a cycle in which their desire to protect their own hindquarters and cushy “jobs” has lead to a self-imposed isolation from the very American Citizens who were responsible for their having those cushy “jobs” in the first place.
The Republican Congress needs to support Donald J. Trump and to remember that average Americans, like you and me, have given the President-elect a mandate through which to fulfill his campaign promises. They also need to remember that we have the power to relieve them of the burden of their stressful jobs, and send others to Washington, who will listen to their “bosses”.
Now is not the time for the Vichy Republicans to jump off of “The Trump Train” that carried them to victory in November.
Now is the time to Make America Great Again.
Until He Comes,