Posted on 09/07/2017 3:39:25 AM PDT by LRoggy
Not that anyone in the LSM would get this, as well as some in the Establishment in D.C., but Nancy Pelosi and Chuck Schumer blinked yesterday on raising the debt ceiling in order to give their support to Hurricane relief efforts.
How you ask?
Two words . . . Tax Reform.
For awhile now the trial balloons have been floating in the air about what the Trump Administration wants to see as the basic way to reform the system to push more tax relief to the middle class and corporations while not giving the upper levels of income a break on their effective rates. The main emphasis for how they would do this is to put a cap on things like state income tax deductions and mortgage interest deductions (I’m not sure about property tax deduction caps but that would fit in to this picture too).
The Establishment, used to seeing these types of proposals in the past get shot down, assumed the same for the latest effort, and basically did nothing to fight these initiatives publicly when they were floated.
But as the time went on a funny thing happened; the proposals have NOT gone away, and if anything, have become pretty much the center piece of the actual proposal. And the realization is starting to scare the heck out of Schumer and Pelosi.
After all, DJT is just dumb to them . . . but to those of us who voted for him . . . dumb as a fox.
This Tax Reform as currently proposed would substantially shift the tax burden from the wealthy in all of America to the wealthy in the Blue States . . . and Schumer and Pelosi are dawning on the realization that dumb DJT has completely painted them into a corner politically on the issue.
<-i>How do Democrats possibly fight a proposal that would be revenue neutral across the country at the higher levels of income while giving a corporate tax break that they are on video record supporting for a long time and not only being a cut for the middle class but also possibly combined with a major increase in the Earned Income Tax Credit (which by the way is what Milton Friedman advocated for many years) to raise the income levels of the lower educated without having to destroy their earning capability through ruinous minimum wage increases?
Then throw in what happens to property values in those Blue States! If I were a owner of suburban property in the Northeast or gilded California I'd be sweating right now. How many times have we heard from the sanctimonious among us like Warren Buffett and Valley executives about being willing to pay higher taxes (we'll put aside the hypocrisy of tax avoidance legend Buffett calling for this)? Here's their chance . . .
Just look at the commercials DJT could run! The Democrats support not raising the effective tax rate on Goldman partners in New York, the loud mouth know-it-alls in Hollywood and the young big mouths in Silicon Valley! The middle class family in Michigan no longer gets relief and the inner city poor loses out on an expanded income credit because we can’t give up our cherished state income tax deductions.
Yesterday was the first attempt by Pelosi and Schumer to try to stem the tide of what will likely be a Tax Reform approach that will be very popular with DJT voters. Find ways to build up some markers for negotiation on Tax Policy before it is too late.
It will be fun to watch the next few months to see what else they will blink on.
Clearly you got the reference! ROFL!!!
As a Conservative who voted for Trump and supported him from almost Day #1, I'm getting concerned he has zero Conservative principles in him at all.
Agree, screw the GOPe. Making deals with Pelosi and Schumer? That's like sending a dog into a tick infestation and expecting him to come out without any on him.
I believe the senate Republicans wanted to attach a budget resolution of 18 months to the aid package to push it pass next year midterms (kick the can down the street). Donald is calling them out by giving a 3 month time limit to force them to address it sooner. A wake up call to the rinos in congress. The budget and tax reform should be dealt with this year not some arbitrary time in the future.
Not sure but believe this is what is happening.
Trump as a politician is a populist TV evangelist. Look at his past pre campaign environment and pronouncements and he comes across as a limousine liberal. That said I believe he is honestly trying to get his agenda in place. He is just being pragmatic and being vindictive against the GOPe establishment that had obstructed him. I said prior to the election that Trump would have more problems with the Republicans in Congress than the Democrats.
Nope, he said flat out he'd always agree to an extension, it's "automatic" (his words, saw him say it myself.)
I think he's made a deal with the devil here and his not knowing how the District of Corruption really operates is going to bite him in the ass, again.
The rest of your post notwithstanding (because it's true...) Trump's statements that he was going to DC to make "deals" is coming to fruition and I don't like this one at all.
Polishing a turd doesn't make it a baby ruth.
Agreed, but the time allocated is the important thing. Everyone knew the aid bill would pass. The Rinos wanted to use it to keep the budget resolution out of the mid-terms as an issue. The President is forcing them to address it prior to the mid-terms. The budget is his goal not the budget resolution.
Capping deductions in Blue States would just be BEAUTIFUL.
Because of Republican tax policies over the decades, these clowns make out like bandits regarding the tax code, while Middle America is left with the Standard Deduction, at best.
And how do the Blue States thank the Republicans? By voting DEMOCRAT in huge numbers.
It’s time we STOP PROTECTING the people in blue states who make $300k a year (and more, often lots more) and yet get to deduct most of that...it’s time they pay up a bit, especially considering who they wind up voting for.
So, we get a fight about the debt ceiling in December.
Schumer gets to essentially lead the charge on tax reform.
And the Dream Act is going to get passed as a stand-alone bill.
And Trump got....hurricane relief out of this.
Not a Wall. Hurricane relief.
Good deal. Strong deal.
The question I have is this: If Trump runs as a Democrat in 2020, do the Dems clear the deck for him?
Can you possibly be a bigger pessimist? Your extrapolation is absurd. TRUMP didn’t get hurricane relief, YOUR FELLOW U.S. CITIZENS get it.
How simplistic can you be?
Why did he have to make a deal to get hurricane relief in the first place?
Why are the Dems celebrating today? Why are the Repubs pissed?
Not all the Repubs are pissed. Also, the Dems were thrilled going into November 7th, have you learned nothing yet about how this man operates? Has he EVER lost a negotiation?
WHAT deal did he make? You see the bill to fix Harvey and what we are going to get with Irma. It wasn’t in the budget!
As far as the debt ceiling is concerned, WHEN HAS IT EVER MATTERED? NEVER!
Did you not learn your lesson when we shut down the government in the Clinton years and how badly that went down? Independents gave Trump his edge in November, they will leave in droves if we play games on the debt ceiling. Frankly I’d get rid of the damn thing, it doesn’t cover off balance sheet items and future liabilities like Social Security and Medicare anyway!
It’s a FAKE number, like CNN is FAKE news.
Good point, color me skeptical (which is my normal stance on things anyway...)
Lol.. thats your defense of trump screwing middle class America with spend, spend spend? Attacking me?
That’s your argument. Easter sundays, been there, done that.. swimmingly. .
You avoided answering the question. How do you fund for these out of the norm storms in FEMA unless you OVERFUND them in previous years. Which would require setting up a Trust Fund or Endowment for the future like the insurers do. I’m sure you’d be pretty upset if that happened too.
And last I looked the vast majority of the money being spent on these hurricanes goes to the MIDDLE CLASS. The wealthy can pay out of pocket to clean up.
Revenge on us Trump supporters in CA and NY.
Yeah, what a blast.
Lots of fun to watch.
Thanks a million.
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