Speaker Paul Ryan says Trump’s promised tax cuts will now have to wait until Spring. Sad!
Here’s Paul Ryan claiming that repealing and replacing Obamacare means the promised tax cuts must wait until a few months have gone by.
I don’t understand why “that’s the way the law works.” It seems to me that the promised tax cuts are just as important as getting rid of Obamacare. Why don’t they simply allow insurance companies to offer plans that are not Obamacare compliant along with getting rid of the individual mandate? Then they wait and see and decide if there are problems that they need to address. In the meantime, they can lower all our taxes and thus raise our standard of living.
Trending: Fuel for Thought
I’m not alone in worrying about delays in the promised tax cuts. The New York Post editorial board writes,
Bad news: Congress is putting tax cuts on the back burner for now — a big risk.
House Speaker Paul Ryan says lawmakers will focus first on replacing . . . er, “repairing” ObamaCare and on President Trump’s infrastructure plans, and only take up tax bills sometime in the spring.
That means Trump won’t be able to sign anything until before the fall — at the earliest, if no other delays pop up.
Yes, the president’s early moves on deregulation and energy should boost growth, and a few industries are salivating at the thought of big infrastructure spending.
But Trump also clearly means his promises on trade and immigration, too — which has other industries nervous.
The absence of any big supply-siders in the president’s economic team is further cause for concern, as is the way the White House has taken to talking about “tax relief” rather than “tax reform.” The hunger for some details — will the cuts be retroactive to Jan. 1? — adds to the uncertainty, which is always bad for business.
Yes, the Dow is up, thanks to optimism over the Trump program. But major tax cuts were a big part of that program — and if they don’t land in good time, or turn out not to be major, pessimism can quickly return.
The editors point out that we are due for a recession. If Hillary Clinton had been elected President, the recession would likely already have begun. There was no optimism about the economy with her as President. Trump optimism is driving the stock market rally but that can’t change the economic reality that we are going to have a recession. Other than hope for the future, there is nothing sustaining this stock market bubble. And, as they say, that optimism included the expectations of promised tax cuts.
So, delaying them is dangerous.
I don’t think the promised tax cuts will stop the recession, but they will leave us with more of our own resources and permit us a better life than we would otherwise have.
Furthermore, when the recession hits, trust in the Republican majority will be tested. Keeping a basic promise instead of delaying it would be a good move for Republicans.
Thanks to Donald Trump, Republicans have a historic opportunity to rule the country for a long time. They also have the power to give up seats in Congress to the Democrats in 2018.
What is Paul Ryan thinking? Someone tell him that “fortune favors the brave.”