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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe Republican Tax Plan is a Recession Waiting to Happen
The Republican Tax Plan is a Recession Waiting to HappenPresidents have routinely preached the value of homeownership. Not Trump. With caps on the deductions for mortgage interest and on the deductibility of state and local taxes, the cost of owning a home will rise and the value of a home will fall.
BY WILLIAM D. COHAN DECEMBER 13, 2017 6:40 PM
In the increasingly unlikely circumstance that nothing else should doom him politically firsta big if given the ensnarling Robert Mueller investigation, his increasingly lecherous Twitter decorum, and his vexatious game of chicken with Kim Jong Unthe now mostly reconciled tax plan that Donald Trump is aching to sign into law before the end of the year will surely seal his fate as one of the biggest political losers of all time.
Given Trumps short attention span and deliberate fixation on the news cycle immediately in front of him, he seems generally oblivious to the bills many egregious philosophical and economic flaws.
But its contents almost certainly presage a recession on account of higher annual deficits, higher national debt, and lower consumer spendingnot to mention the inane decision to limit the deduction for state and local taxes and cap the deductibility of mortgage interest, both of which will make the cost of owning a home higher and chew up more of the average Americans disposable cash.
Not surprisingly, there is a lot of concern on Wall Street about the Trump tax plan. Aside from Dimon, who seems to love it, Wall Street bankers, traders, and executivesmost of whom live in New York Cityare lamenting Trumps cynical punishment of voters in high-tax states, such as New York, California, New Jersey, Connecticut, and Illinois, where the support for him is minimal and always will be, and wondering by what convoluted logic a plan that will increase the national debt, and that depends on the mirage of hoped-for G.D.P. growth, could ever become law.
https://www.vanityfair.com/news/2017/12/the-republican-tax-plan-is-a-recession-waiting-to-happen
Demsrule86
(68,586 posts)great depression in 08 and Trump put us on the same road...always the same Obama came in and cleaned up Bush's mess...and then the GOP get in and squander it all.
workinclasszero
(28,270 posts)Its going to be worse this time. This republican tax bill is a direct attack against the liberal voters in blue states like California and New York.
Our own damn government is punishing blue states! Bush nearly destroyed this country, Trump and this present traitor republican party are going to finish the job.
We better win back control of the House and Senate in 2018 and repeal and replace this republican attack on the blue states tax bill before it triggers the next great recession/depression.
Demsrule86
(68,586 posts)Hoyt
(54,770 posts)a disaster, but by then Trump's admin will have screwed up so many things it would be impossible to tie it to the tax plan.
workinclasszero
(28,270 posts)Create a bubble/boom in some area for a time then the bubble bursts and the economy plunges into recession.
They will never do anything to benefit the economy for real Americans like raise the minimum wage for instance where every dollar would immediately go out into the economy to buy goods and services and create real economic growth.
And when their tax plan fails they are coming for social security and medicare to stop the bleeding. Count on it.
They are already talking about it.
Hoyt
(54,770 posts)paychecks and think all the criticism of the tax plan is fake news. There are a lot of stupid people out there who can't look past today.
ProfessorGAC
(65,072 posts)Too many otherwise conservative voices are expressing concerns about this plan. That didn't happen in the 80's when all those folks lapped up the debunked Laffer philosophy and in the early 2k's when they cut taxes to solve a problem that didn't exist.
This time, there's too much concern and criticism from Wall Street and the banking industry. If they don't like it, the "boom" will not occur. It will be a slight ripple up, followed by a major trough down.
Johonny
(20,851 posts)to deal with it. I mean recessions are part of the natural economic cycle. There will be a downturn. The tax plan is simply a huge waste of the nations resources for very little return. At the same time they're cutting the social safety net, gutting government hiring, and randomly failing to enforce regulation. The failed health care bill and then this bill really hammer home how poorly our government is prepared to fight the next recession. Indeed they seem vastly prepared to jump right in and make it more severe.
ProfessorGAC
(65,072 posts)There's nobody with good ideas there to deal with negative consequences.
I don't totally agree with the notion that there is a natural economic cycle, independent of extrinsic influences like stupid, unnecessary tax cuts. For the last 50 years, there has been a great deal of overcontrol by administrations, Congress and the Fed, and too much influence from people who have built a reputation on proving X therefore Y and applying it to a 50 dimensional system.
The stuff in your 3rd sentence is exactly the kind of extrinsic influences i'm talking about, so we agreeing on that. Thing is, making those moves when they aren't absolutely needed cause the unintended consequences that everyone seems willing to accept as a natural economic cycle.
There's nothing natural about it.
brer cat
(24,576 posts)after attending a local gathering of accountants in GA: "You know the tax bill is bad when a room full of Republican-voting CPAs thinks this is the dumbest shit they have ever seen."
NewJeffCT
(56,828 posts)Republicans will scream that we need austerity and to cut back on government, so cuts to social security, medicare and medicaid will be in order.
workinclasszero
(28,270 posts)BY NICOLE GOODKIND ON 12/1/17 AT 6:00 PM
http://www.newsweek.com/tax-plan-social-security-medicare-welfare-republicans-rubio-729133
democratisphere
(17,235 posts)Still hoping sanity might prevail.
Bengus81
(6,931 posts)Hell around here the big boy Corporations had a ZERO percent tax rate and it STILL flopped. Meanwhile Brokeback foisted TWO sales tax increases on us.
Watch what Trump and Republicans do when the debt starts piling up over his FRAUD tax plan.