Elder Patriot – The usual establishment types are touting the Senate’s just released tax cuts as Reaganesque. What they are really saying is that they are trying to stifle Trump’s pro-growth agenda and his simplified tax system by reaching back in time for the poison pill compromises that Reagan was forced to agree to because he was dealing with a Democratic controlled congress. Reagan settled for a watered down version of his plan because it was all he could get. You would think Trump wouldn’t be forced to make similar concessions.
Specifically, we are talking about a delay in the corporate tax cuts that would serve as the single greatest economic stimulus among all the ideas that are under consideration. The phase in was a disaster in 1982 and it’s guaranteed to be a disaster in 2018.
Here’s a historical chart of GDP growth during the Reagan years:
The 1982 recession was not an anomaly that occurred randomly. It was a result of Dems’ sabotage then and it is being baked into today’s Senate version by establishment Republicans who are equally intent on sabotaging President Trump.
Here’s the fact. By delaying corporate tax cuts tax policy authors are incentivizing corporate decision makers to delay profits and investment for a year in order to avoid paying the higher tax rates that are still in place. History bears this out and human nature has proven this to always be true.
The economic recession of 1982 cost the Republicans 27 seats in the House, something Republican Senatorial leadership is acutely aware of. A shift of that amount in the 2018 midterm election would cede control of the lower chamber to the Dems.
Despite what you might want to believe, Senate Majority Leader Mitch McConnell and his establishment allies would be just fine with that result if it resulted in neutering Trump’s America First agenda.
It’s apparent that Republicans have dragged their feet in reforming the tax code in order to deprive Trump of getting credit for igniting economic growth for as long as possible. In the process it looks like House and Senate Republicans will be left with an option that damns them if they do and damns them if they don’t vote for the coming tax bill.
They will either vote for a watered down version that will deliberately tank the economy for a year – the year leading into the midterm election – and that will cost Republicans re-election by an electorate growing in their impatience with Republican failure to legislate – failure that was deliberately orchestrated by McConnell and other establishment powerbrokers.
McConnell knows exactly what he has orchestrated. Republicans are now faced with losing if the do nothing or losing if they vote for the “fix” they will be offered by party leaders.
Trump might’ve expected this had Democrats, as they did during Reagan’s time, had control of the House and Senate but the fact that Republicans have the ability to pass whatever they want and are still preparing to shove this recipe for failure in front of Trump proves they are intent on stalling the Trump economy.
Unlike when Reagan was president, the current group of establishmentarians comprises a corrupt swamp of politicians from both sides of the aisle. This means that Republican leadership is more readily willing to accept a return to Democrat leadership than continuing under Trump’s nationalist agenda that their globalist puppet masters have spent so aggressively to relegate to the ash heap of history.
Their collective opposition to Donald Trump and desire to see him removed from the presidency is no longer in doubt. By flipping the House to Democrat control in 2018 it would be an almost certainty that President Trump would face impeachment.
These swamp kings know that impeachment is a political undertaking that has little to do with provable facts. And, McConnell and Speaker Paul Ryan would welcome the effort by the “opposition” party to remove Trump.
As it stands now the Senate version of this bill is an abortion that will cost Republicans the House and Ryan his speakership if he doesn’t get the corporate tax cuts included immediately in conference.
McConnell is aware of the situation he has put Ryan in which means he has chosen to wreck the Trump presidency over preserving a fellow Republican’s leadership position.
McConnell has chosen to allow his party to become a minority party rather than demand inclusion of what he knows is a pro-economic growth program this year.
McConnell has chosen to delay restoring American jobs and economic expansion, even accepting a likely recession, for political purposes.
No one said that draining the swamp would be easy or quick.