The big question on my mind after the horrendous snafu with the healthcare bill is, can Donald Trump and Paul Ryan get anything passed through congress this year?
Let’s examine this, because everything seemed to hinge on healthcare getting passed. First and foremost, Trump needed to do healthcare first because of two reasons; one political and one logical. The political reason was that was what he was elected to do. The logical reason was, it was going to save the government billions of dollars that could be used to cut tax rates later on when the congress tackled tax reform. And of course, up the road is the immigration policy debate which should be a doozy. More on that one later.
Since Trump and Ryan weren’t able to get the Conservative Caucus on board as far as healthcare goes, that threw the whole tax debate up in the air. Without the savings from healthcare that we were throwing out the window anyway, there is no way to restructure the tax code unless you are willing to balloon the federal debt. I don’t think anyone that calls themselves “conservative” is willing to go down that road willingly…especially to create a bill that is going to add to the debt. That’s something Democrats love to do…after all, they spend money like a Hollywood billionaire’s wife.
So, now that the healthcare issue is dead, what CAN the congress do with taxes? Oh, they can simplify the tax code. They can certainly close loopholes. They can always lower the tax rates. But let’s not forget the very simple thing. 48.5% of Americans do not pay any income tax. That’s another “Thanks, Obama!” that we seem to forget about. By getting more and more people out of the tax system, Snowflakes have managed to get about half the country to the point where they don’t pay any income tax at all. In fact, a good portion of those folks actually get a tax refund, even though they haven’t paid anything into the system! Why? Because of tax credits, like the Child Care Credit, people with lower incomes are actually reimbursed for having kids.
The important thing to realize anytime you tackle tax reform is somebody somewhere is going to have their ox gored. Take away the mortgage deduction on private residences, and the real estate industry goes batty. Take away farm subsidies to save a few billion and the agriculture community boycotts. Take away child care credits, and other lower income freebies, and you have every poor person making under 150% of the poverty line marching on Washington saying you’re taking food out of their kids’ mouths. Even if you take money away from the top 1%, trust me, they WILL find a way to get to a “work-around”. They will avoid paying it because they can pay better lawyers than the government can afford. Either that, or they have enough money, they’ll just stop working and fire all of the people that were working for them.
In the end, you have to understand how important getting healthcare passed was to the Trump agenda. It’s a pity that the Republicans were so short sighted that they didn’t just repeal the damn bill in the first place by defunding it. Instead, we’re left with a gaping hole in the playbook that isn’t going to be filled anytime soon. And you have Paul Ryan, and Donald Trump to thank for that!
Carry on world…you’re dismissed!