President Trump And The Christmas Tax Cut Miracle!

As 2017, otherwise know as Annis Horribilis, moves rather unsteadily into the history books, we are now fast approaching what I call Political Christmas. Perhaps YOU know it as an election year. During ordinary times, the big rollers in Washington are about as generous as Ebeneezer Scrooge. Why you could have been victimized by a natural disaster, like say a hurricane, and would these guys lift a finger to help you? I should say NOT! If you want to GET federal assistance they say, you'll have to TAKE the money away from somebody else's federal program.

Ah, but as we enter Political Christmas, then our deficit hawks turn into Scrooge, post-ghostly visitations!! Miracle of miracles, these folks become SO generous, tossing money around as if they had a license to print it. Oh yeah, they DO!! Yes, during Political Christmas all fiscal restraint goes out the window and cash flows like so much rain during a hurricane. Not coincidentally, we are fast approaching yet another Political Christmas season. How can you tell? You will start to hear the faint chirping of promised tax cuts in the air!

The interesting thing about this "Yule" generosity is that it's usually accompanied by a goodly portion of self-deception and downright dishonesty. This is also known as trickle-down economics. You know the story. You've heard it all before. Cut taxes. Reduce the federal revenue stream. Create fantastic growth. Voila! More money than you can shake a stick at, if that's your idea of having fun. It's sort of like the economic equivalent of the perpetual motion machine, nice in theory but a bust in the real world.

This isn't to say that the deficit hawks don't have THE answer to any question you might have about the prudence of tax cuts. They call it fiscal restraint. Now fiscal restraint works pretty much along the same lines as Christianity, easy to preach, difficult to live. Think of it this way, fiscal restraint is to the federal deficit as Nancy Reagan's approach was to stopping drug abuse, or the Pope's approach to birth control. Just say NO!!! In theory it works. In practice, not so much.

That's why the latest round of tax cut talks shouldn't disturb your restful sleep one bit. Don't you know? Can't you see? It's as plain as the nose on your face. Controlling federal spending is as easy as taking candy from a baby. Have you ever TRIED taking candy from a baby? They kick and scream and cry and hold their breath until they turn blue. In order to shut them up and keep them from passing out, what do you do? You give them their candy back and maybe an extra piece just to see the little darlings SMILE again! Any wonder why our federal deficit is so big?

I think what we're likely to see during THIS Political Christmas is the miracle of the Transformation. What you very well may see are deficit hawks turning into pigeons; flying over the federal budget, ready, willing and able to take a dump all over it. I suspect deficit hawks will give up any pretense they once had about restraining federal spending. No, now they will embrace the tax cutting fairy tale. You know it well. Every time you cut taxes, you make the economy grow miraculously. If you don't believe it, ask George W. Bush. He gave us not one but TWO gigantic tax cuts. Did they grow the economy? Were we better off when Lonesome George LEFT the White House than when he came IN? You remember the economic boom of 2008, don't you? If the answer to that question happens to be NO, then maybe you ought to reconsider the miracle of the tax cut and trickle-down economics, before it trickles down on YOU......AGAIN!!!!

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  • Soon-to-be-Senator Roy Moore said that the tax cuts will be paid for by the Growth Fairy.

  • In reply to Bob Abrams:

    Only if Jesus begat the Growth Fairy (and I presume with a woman)..

  • What I agree with you is about the deficit hawks. Some article said that the Dems would fight this on the basis that it aggravated the deficit, but I thought that was a neocon position, and that the only Dem position was that they would force the Republicans to vote on a hike to the debt limit.

    Personally, I don't have anything against cleaning up the tax code, so long as the middle class doesn't get screwed in the process. Of course, we can't trust Ryan in that regard.

    I don't have anything against the Estate Tax, and repealing it will put a lot of estate planners on the unemployment line. They say that George Steinbrenner was lucky or brilliant that he died the one year when it was not in effect.

    With what I disagree with you is that the Bush tax cuts was the cause of the economy in 2008. What was the cause of the economy crashing in 2008 was failure to regulate financial institutions, resulting in all sorts of phony money, such as Countrywide Bank mortgages, suddenly becoming worthless.

    It was claimed that the Kennedy tax cuts paid for themselves.

  • In reply to jack:

    The Bush tax cuts WERE the cause of the explosion of federal debt, however!

  • Federal Revenues increased over 40% during the Bush Tax Cuts.

    Did the Economy Grow? Of course. How do you not know that? The GDP Grew from 10.5B to 14.5B during Bushes terms.

    Absolutely ridiculous analysis.

  • In reply to jbpo:

    Somehow you forgot the need to bail out Merrill Lynch, Goldman Sachs, GM, Chrysler......... (which started during the Bush Administration).
    Of course, I said that the tax policy didn't cause that

  • In reply to jack:

    Federal Revenues increased. The Economy grew like crazy. The author is blatantly wrong. Can address the side effects of the crony capitalist bailout another time.

  • In reply to jbpo:

    My comment below is directed to you, jpbo.

  • Don't we ultimately judge the effectiveness of economic policy on the basis of results? In that regard, we can apply the Reagan Standard to the Bush economic policy, "Are you better off now than you were eight years ago?".

  • However the two are not independent, despite your facile attempt to make them so. Just as Clinton balanced the budget based on stock market gains during the tech bubble, Bush profited from the inflation caused by the collateralized securities bubble. Also, since the Bush tax cuts were renewed except for the complete repeal of the estate tax, you have to assume that the revenues continued, since you must equally have to ignore the hole the subsequent administration had to dig out of.

    Come back when you have a complete analysis, instead of polemics.

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