The hysteria over the tax cuts is unwarranted.
So first off, I am actually kind of surprised we are getting the kind of reaction out of Democrats that we are regarding the tax cut bill. Perhaps it shouldn’t be so surprising given the hysteria on the left since November, but tax cuts are a typical Republican plan. The very core of conservative philosophy since the 80’s has been that tax cuts are good for growth, and that they are fairer policy because they amount to the government taking less of what you work hard for.
Some of the arguments on the right are just downright false. We are at full employment, so this won’t be stimulating any huge increases in hiring. The idea that the bill will pay for itself is absolutely laughable, and the fact that the individual cuts will be expiring is not something that any of us should be happy about.
So there are things to not like about this bill, however the left’s arguments have been just as out of line as the right’s.
First, this bill will not kill people. There have been plenty of protest signs and hysterical tweets about how R’s are coming to kill you by passing tax cuts. That’s ridiculous. Even if the next order of business for Congress is spending cuts (and let’s be real, that’s exactly what is coming next), we won’t be having people dying in the streets. 70% of households on SNAP have no income earners, and there’s a good place to start with entitlement reform. Because one of the biggest issues businesses are having right now is the lack of adequate labor, instituting work requirements for food stamps is a good start. The economy is strong enough to withstand modest cuts in programs, and some people will just have to deal with getting a job like the rest of us. Big whoop. It’s ironic how Democrats suddenly abandon Keynesian economics when it comes to spending cuts during a time of full employment. Further, there is nothing at all stopping you from giving your money and time to people. Perhaps you should do that instead of voting to steal from your neighbor.
Second, Democrats who are now whining about the debt are liars. Liberals don’t give a damn about deficits. Here’s a place where Democrats can be consistent and ideologically honest. How about proposing a tax structure more in line with liberal values? And if we are so concerned about the deficit, then we should expect to see those same Democrats working with Republicans to cut spending. I won’t hold my breath, because there’s no way in hell Dems will cut spending. So the concern over the deficit is purely partisan theatrics.
Third, the argument that these cuts are tilted to the rich and will raise taxes on the middle class are misrepresentations based on partisan politics. About 50% of Americans pay no taxes. How do you cut taxes for people who aren’t paying any? You can’t. So yes, if you currently don’t pay taxes to begin with then obviously you can’t expect a tax cut. Further, a 10% flat reduction in rates across the board (just as a hypothetical to get my point across) will give people at the top more dollars in cuts because they make more money. 10% for Bill Gates is obviously higher than 10% for me. Any tax cut that reduces rates across all, or most, brackets like this bill does will result in people near the top saving more nominal dollars. Duh. Also, about 69% of tax filers take the standard dedication which is now doubling. That’s a tax cut for all of them. There will be some people hit with tax increases; those people are predominately wealthy individuals in high tax states - precisely the people that Bernie wants to raise taxes on. So what gives, liberals? Are you now upset if someone near the top end of the income ladder pays a bit more in taxes? And why should the federal government subsidize crazy tax policies in a handful of states?
Tying into the last point, a potential tax increase due to the expiration of certain tax breaks eight to ten years down the road does not constitute a hike in taxes. If we want to maintain those rates, then let’s do it. So Democrats, are YOU going to raise taxes on millions of people in a future Congress in order to prove a political point for something that happened almost a decade ago? Nah, I didn’t think so either. This will end up just like the Bush tax cuts did. I have a hard time imaging any politician in the future -Sanders being a possible exception- voting against making the individual cuts permanent.
So let’s stop being hysterical and let’s stop lying about what this bill will and won’t do. R’s should stop pretending that this is going to somehow magically spur employment while we are already at full employment, and they also need to stop lying about how much this bill will increase deficits. On the other hand, Democrats need to stop imputing negative intent on people who happen to disagree with them politically and they need to drop the bullshit deficit freak out.
There are reasonable points of view for and against this bill. It will allow more people to keep the money that they earn through their hard work, but it will also give corporations more money at a time when corporate profits have never really been higher. Further, the argument that right now is the time to raise revenue and decrease spending to make the government more able to respond to a future recession has plenty of Keynesian backing. Regardless of what side you’re on, can we please adopt reasonable arguments?
For what it’s worth, I quite like the bill and I think this is a good idea.
