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The GOP Tax Bill: No Deal



As the Republicans pushed to pass their tax cut bill, moderate Sen. Joe Manchin III (D-WV) offered a deal for his support. Cut the corporate tax to 25 percent rather than the 20 percent that was then in the bill, use the money for bigger tax breaks for the middle class, make a few lesser changes, and he would consider backing the bill.

He thought at least some other Democrats would follow and the bill then could be sold as having bipartisan support.

But, according to this analysis in The Washington Post, Republicans would have none of it. They knew Trump was fixated on slashing the corporate tax rate from its current 35 percent level to 20 percent or lower, and they wanted to deliver the goods.

They also had bought into the Trump theory that by doing so, corporate America would use the savings to invest in their companies, expand, hire more people and that would result in economic and political success. The trickle down theory on steroids.

So, they said no. And Manchin voted no.

In the end, the corporate tax rate cut settled in at 21 percent, wealthy donors were happy, Wall Street was ecstatic, and most importantly, Trump had his Christmas present. After all, that bill will be a tax windfall for him and his business enterprises.

Meanwhile, the tax cut plan blasts a gaping $1.5 trillion hole in the deficit, despite Republican contentions that their promised increased economic growth will make up a lot of that. Determined to deliver, they put aside their decades long mantra that cutting the deficit and balancing the budget had to be the nation's priority, no matter what.

Now, since they got their tax cut windfall for themselves and their pals, expect House Speaker Paul Ryan (R-WI) and other GOP Congressional leaders to launch an attack on Social Security, Medicare, Medicaid and any other program deemed to be an "entitlement" so they can close that huge budget deficit gap that their tax giveaway has created.

That's what's coming in 2018. And it won't be pretty for the average American.

Such a deal.

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