Economics -101

Jonathan Chait has a few things to say about the Republicans in congress and their tax bill. As you may recall if you have not been in a coma for the past 9 years, the Republicans have been yelling and screaming that the federal budget deficit is a mortal threat to the long-term health of the economy and the very foundations of the Republic. Now they are in a mortal panic to pass a massive tax cut for the wealthy that will balloon the national debt by something like $14 trillion in the next decade.

They claim that won't happen because it will generate so much economic growth that the additional revenue will make up the difference. In fact, no reputable economist believes that, including right wingers who are normally in the Republicans' pocket. As Chait says:

Not even macroeconomic forecasters in the private sector — people putting real money behind the accuracy of their analyses — have concluded the tax cuts would come close to recouping their cost. Goldman Sachs forecasts the tax cuts would recoup just 20 percent of the lost revenue, and beginning in 2020, the growth effect “looks minimal and could actually be slightly negative.” A survey of 42 economists found only one who even agreed that, if the tax cut passes, economic growth “will be substantially higher a decade from now than under the status quo.” And even that endorsement of “substantially higher” growth falls short of endorsing the belief the tax cuts will be self-financing.

However, what will happen is that as soon as the deficit explodes, the Republicans will claim that we can no longer afford Medicare, Medicaid and Social Security -- although we can afford to expand the military budget -- because the deficit is unendurable. This is the game they have been playing ever since Ronald Reagan. The deficit exploded under Reagan and Bush I, was completely eliminated under the Clinton administration, exploded again under Bush II and was substantially reduced under Obama. Now the Republicans want to blow it up again and leave it for the Democrats to clean up. They are nothing but liars and hypocrites.

Also, too: Economists on the overall economic impact:

Though Republicans insisted repeatedly over the past few weeks that the $1.4 trillion in tax cuts, most of them geared toward wealthy individuals and corporations, would pay for themselves by stimulating economic growth, they presented no evidence to support their claims. Instead, the economists and former government officials predicted, the bill will drive up the federal deficit, shrink and destabilize the health care market, exacerbate already historic income inequality, and pressure Congress to make deep cuts to the social safety net and government programs.

 If you vote for Republicans, you are being conned. Duped. Used. Owned. Don't do it.

And also, too: This is pretty damn funny! Coal CEO: Senate tax plan 'wipes us out'