Brent Budowsky: Marie Antoinette tax cuts

Brent Budowsky: Marie Antoinette tax cuts
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Republicans are writing a tax bill behind closed doors, treating Congress like Russia, where only one party is allowed to govern, and planning to jam the bill to passage through a force-fed vote under a phony deadline without any pretense of detailed analysis and thoughtful debate that every American taxpayer should demand.

Do Republicans really want to repeat the procedures and results of their health-care fiascos of 2017?

Sens. John McCainJohn Sidney McCainConservative group cuts ties with Michelle Malkin Democratic debate at Tyler Perry's could miss the mark with black voters Donald Trump's 2020 election economic gamble MORE (R-Ariz.), Susan CollinsSusan Margaret Collins2020 Republicans accuse Schumer of snubbing legislation Key Republicans say Biden can break Washington gridlock Feehery: Pivoting to infrastructure could help heal post-impeachment wounds MORE (R-Maine), Bob CorkerRobert (Bob) Phillips CorkerRNC says ex-Trump ambassador nominee's efforts 'to link future contributions to an official action' were 'inappropriate' Lindsey Graham basks in the impeachment spotlight The Hill's 12:30 Report — Presented by Nareit — White House cheers Republicans for storming impeachment hearing MORE (R-Tenn.), Jeff FlakeJeffrey (Jeff) Lane FlakeLindsey Graham basks in the impeachment spotlight Kelly, McSally virtually tied in Arizona Senate race: poll The Hill's 12:30 Report — Presented by Nareit — White House cheers Republicans for storming impeachment hearing MORE (R-Ariz.), and Lisa MurkowskiLisa Ann MurkowskiKey Republicans say Biden can break Washington gridlock Impeachment hearings don't move needle with Senate GOP Hillicon Valley: Federal inquiry opened into Google health data deal | Facebook reports millions of post takedowns | Microsoft shakes up privacy debate | Disney plus tops 10M sign-ups in first day MORE (R-Alaska) can prevent this travesty and insist on the regular order of bipartisan governing.

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Democrats will win by supporting tax cuts for hard hit Americans and opposing Marie Antoinette tax cuts offered by Republicans that benefit those who have the most, through provisions bought by special interest donors and enacted by hasty votes after shady deals made behind closed doors.

Since Marie Antoinette met her fate, the most famous words identified with her are “let them eat cake.” Donald TrumpDonald John TrumpDem senator says Zelensky was 'feeling the pressure' to probe Bidens 2020 Dems slam Trump decision on West Bank settlements Trump calls latest impeachment hearings 'a great day for Republicans' MORE is the Marie Antoinette of American politics. He tells his base to eat the cake of despising those he scurrilously attacks on his enemies lists, while he lets crony capitalists who back him feather their nests in the murky swampland of his presidency.

Trump’s ratings continue to fall because even voters who trusted him — especially white voters without college degrees — increasingly see through his populist act and realize the crony capitalist truth that defines his presidency.

A lesser-known aspect of the Antoinette legacy is that at the time of her demise, while France endured a punishing financial crisis, she was scorned as “Madame Deficit.” Citizens deeply resented her lavish and garish deficit spending while the royal court aggressively opposed social and financial reform at a time of economic unfairness, hardship and pain.

A tax bill that raises the federal deficit by more than a trillion dollars, increases taxes on many middle-class citizens by attacking popular deductions and lowers taxes on the wealthy is a Marie Antoinette tax bill. Fiscal frauds can fabricate phony revenue estimates, but history teaches that someone will ultimately pay the tab, and endure the pain, and it will ultimately be middle-income and poor Americans.

Certain Republicans propose Marie Antoinette tax increases such as attacking deductions for 401(K) retirement plans, charitable donations, mortgage interest for home purchases and state and local taxes while proposing Marie Antoinette tax cuts or loopholes that provide huge benefits for the most wealthy individuals and corporations.

Let’s consider what could become the mother of all Marie Antoinette tax cuts, which would allow low tax repatriation of some $3 trillion of assets now held abroad by some of America’s most profitable multinational corporations.

Such a tax cut, standing alone, would lavish an enormous reward on megaprofitable firms that hoard vast sums of money abroad to avoid paying taxes, after making vast sums of money abroad by exporting American jobs to nations where that profit now sits idly.

Let’s make a deal. If that money comes home at a discounted tax rate of 14 percent it will provide a one-time surge of revenue measured in hundreds of billions of dollars.  To fairly distribute the benefits of repatriation this money should be directly targeted to help poor and middle-class Americans through rebates, creating a health-care public option with low premiums, or some other mechanism.

McCain was right to call for a return of the Senate to regular order. It would be far better for America to pass a fair and carefully considered tax bill in early 2018 that is achieved through bipartisan talks, than to force-feed an unjust one-party bill on short notice without thorough consideration that could be as disastrous as GOP health care fiascos throughout 2017.

If Republicans hastily pass Marie Antoinette tax cuts in December 2017 they may be politically decapitated by unhappy voters demanding real change in November 2018.

 


Budowsky was an aide to former Sen. Lloyd Bentsen (D-Texas) and former Rep. Bill Alexander (D-Ark.), who was chief deputy majority whip of the U.S. House of Representatives. He holds an LLM in international financial law from the London School of Economics.