Former GOP insider blasts Congressional tax reforms plans as bad for the country, nefarious political maneuver

11/29/2017 10:06 AM

As the U.S. Senate inches closer to a series of sweeping reforms to the tax code, a former White House adviser to President Ronald Reagan and a Treasury official under President George H.W. Bush says the plan is bad for the economy and will only serve for political gain.

Bruce Bartlett, an economist and author from Virginia who worked under Regan and Bush, told Pure Politics this week that the main reason the Senate tax reform plan is bad, is because it will add to the deficit by a staggering $1.4 trillion.

The $1.44 trillion figure comes from the non-partisan Congressional Budget Office, which found that enacting the White House-backed Tax Cuts and Jobs Act would lead to the massive deficit among other hardships.

“…At a time when taxes are low, the economy is in good shape and there’s absolutely no justification for doing anything,” Bartlett said. “In fact, I would say it’s simply a lie to call it tax reform in any way shape or form. It’s just a giveaway to the Republican donor base and that’s about it.”

The GOP tax bill in the Senate sharply reduces the corporate tax rate and reconfigures the system under which multinational corporations pay taxes to the United States government. It also reduces the tax rate for individuals while eliminating some deductions, including those for state and local taxes, and allows non corporate businesses an additional deduction.

The corporate changes would be permanent, but individual cuts and so-called pass-through businesses would expire at the end of 2025.

U.S. Senate Majority Leader Mitch McConnell, R-Kentucky, and other Republican leaders are trying hard to pass the tax cut, but Bartlett says there are ulterior motives at play.

“It’s the first step in implementing the Republican strategy of strangling the government,” he said.

Essentially, Bartlett said once the cuts are enacted and the deficit begins to balloon then deficit hawks will begin calling for reductions to Social Security and Medicare.

“I think (Republicans) know in their heart of hearts that their hold on power is going like the sands in an hour glass and they want to make sure Democrats hands are completely tied once they get back in power, and are forced to spend all of their time on unpopular deficit reduction measures.”

Nick Storm

Nick Storm is the Anchor and Managing Editor of Pure Politics available exclusively on Spectrum News. Pure Politics is the only nightly program dedicated to Kentucky politics. Nick covers all of the political heavyweights and his investigative work brings to light issues that might otherwise go unnoticed, like his coverage of the backlog of DNA rape kits waiting to be tested in Kentucky. Nick is also working on a feature length bio documentary Outlaw Poet: A documentary on Ron Whitehead. Pure Politics airs weeknight at 7 and 11:30 on Spectrum News. Follow Nick on Twitter @NStorm_Politics. Nick can be reached at 502-792-1107 or nicholas.storm@charter.com.

2 Comments

Comments

  • Cicero wrote on November 29, 2017 10:50 AM :

    Sad to see this coming from someone who clearly knows better about the “scoring” process from the Congressional Budget Office and other interest groups (like his) in DC. The reason this tax cut (which is our money by the way) “scores” and adds to the deficit, which no Democrat gave two thoughts about when our last President ran up the credit card more than all of our previous Presidents combined, is because the assumptions made by the CBO assume less than 2% growth. This is the anemic performance of our economy under the Obama years. We’re over 3% growth now the past two quarters. Imagine what happens if you plug current growth numbers in?…No increase to the deficit. This is a classic example of junk in, junk out analysis. It’s all about your assumptions when making prognostications.

  • nutjob wrote on November 30, 2017 06:53 AM :

    These cuts are a gift to the rich at expense of the working people. The next thing that will follow these tax cuts is an increase in inflation making “just getting by” that much harder. Our tax code is far too complicated for the above average person and now we are making it harder.Tax reform is needed in order to simplify things not make the system tilted even more toward the rich

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