Nel's New Day

December 21, 2017

Disastrous Tax Bill Leads to GOP Fractures over Spending Bill

In their contempt for democracy, the Republicans, the epitome of “makers” exploiting the so-called “takers,” passed their social reform bill in the dead of night to benefit large businesses and wealthy people. The process, carried out in great haste with extreme chaos and negligence, allowed for neither hearings nor debate—not even the opportunity for congressional members to examine the 1,097 pages. If one considers democracy, the way that Republicans passed the bill may be even worse than the contents. If the tax bill were a good deal for most of the people in the U.S., Republicans wouldn’t have to lie about it. Dictator Donald Trump (DDT) summarized the GOP position when he said, “It’s always fun when you win” about his defeat of the people who voted for him. “Fun” also means that he gained billions of dollars from the tax bill.

“Fun” for DDT also means destroying Puerto Rico. The tax bill requires the federal government to treat the territory in the same way that it treats foreign countries in bringing operations and jobs to the U.S. from overseas. Forty-seven percent of PR’s GDP comes from manufacturing, primarily pharmaceuticals and medical devices generating revenue from patented drugs and technologies. The 12.5 percent tax levied against profits in PR for “intangible assets” of U.S. companies abroad plus a minimum of ten percent tax on their profits abroad, as in foreign countries, means that businesses will pay more to operate in PR than on the U.S. mainland. It will cost U.S. citizens their jobs and destroy PR’s economy after DDT went to the island to complain about the cost of recovery from Hurricane Maria, something he did not do at any of the summer’s disasters on the mainland.

DDT may not have his “fun” of signing the bill until January 3 because he is afraid to let the 2010 “pay-as-you-go” law automatically cut Medicare and other programs. These would take effect in 2018 if he signed it in 2017. To avoid bad press, he is hoping that Congress will waive these cuts by 2019. Spending caps went into effect under a GOP-created law in 2011 and have received two two-year waivers–also from the GOP. The most recent one expired on October 1, 2017, and Republicans didn’t get around to lifting it again.

To pass the waiver, the GOP needs Democrats who are raw from the GOP pushing through the tax bill and plan to negotiate for restoration of the health-insurance mandate, due to expire in 2019. The schedule is not set, but Congress will most likely not pass this bill by the end of this week while they struggle with other expiring laws, like the spending bill that keeps the government from shutting down.

One vote to transfer the Great Society into Ayn Rand’s idea of plutocracy came from Sen. Susan Collins (R-ME) who earlier gained the support of her constituents when she refused to vote for an earlier bill because it would drive at least 13 million people off health insurance. The new bill does the same thing, but she claimed that her vote was okay because Congress would shore health insurance markets and undo Medicare cuts guaranteed by the tax bill that she supported with her vote. Even after House Speaker Paul Ryan (R-WI) said that the House wouldn’t support the deal, she voted for the tax bill. And Senate Majority Leader Mitch McConnell (R-KY), who made the promise to Collins, is not known for truthfulness. Collins decried media coverage as “unbelievably sexist” because it describes her as being “duped.” She may have to eat her words after discovering that’s exactly what happened.

After the beautiful togetherness and self-backslapping of GOP leaders following the tax bill’s passage, Republicans are back to fighting over the spending bill that must be passed in two days to avoid a government shutdown. Rep. Mark Walker (R-NC) described the altercation following the joint communion for the tax bill:

“It’s kind of like leaving the hospital, just finding out you’re cancer free, and getting run over by a Mack truck.”

Ryan already refused to allow Collins’ funding for the Affordable Care Act in this year’s spending package. Gone—at least temporarily—is the agreement for legislation to reduce health care premiums for nine million people without government subsidies. House Republicans refuse to address Collins’ proposal to continue the health care subsidies without attaching Hyde Amendment language prohibiting the use of federal funds for abortion. Democrats oppose this demand because it expands the existing amendment by discouraging private insurers from covering abortions. Insurers must keep funds for insurer subsidies separate from abortion services, but Republicans want more. Many Republicans are totally against the ACA, and abortion makes a good excuse to block Collins’ proposal. Collins and Sen. Lamar Alexander (R-TN) have withdrawn their bill for these subsidies until next year’s full spending bill.

The stopgap also fails to address funding for the Children’s Health Insurance Program (CHIP) reauthorization and funding for Community Health Centers. Without CHIP, nine million children lose their health insurance, even those in the middle of such serious problems as cancer treatment.

In the Senate, at least eight Democrats or independents must support all Republicans for a stopgap measure to overcome a filibuster. Without a stopgap measure, the federal government shuts down at midnight Friday. GOP leaders want a bill that expires on January 19, 2018 to stop the shutdown. They call is the “CRomnibus” proposal, but House Minority Leader Nancy Pelosi (D-CA) has other names for it:

“Some people are calling it the ‘punt’-ibus, just punt this down the road. I call it the ‘none’-tibus because it’s not going anywhere.”

The GOP House leadership had trouble with its representatives from large blue states because the tax bill penalized their residents disproportionately by reducing deductions for state property and income taxes. Now GOP representatives from Texas and Florida are opposing a bill without the $81 billion disaster bill. Lawmakers in states badly hit by hurricanes vow to stay in Washington until they get their disaster funding. Conservatives object because the disaster relief isn’t paid for by cuts in other parts of the budget, a scenario that takes everyone back to the fight over funding after Superstorm Sandy in the Northeast. Democrats in the Senate oppose the disaster bill because, according to the Minority Leader Chuck Schumer (D-NY) “still does not treat Puerto Rico, California and the U.S. Virgin Islands as well as Florida and Texas.”

In another contentious issue, the GOP had planned to take a separate vote tomorrow to reauthorize Section 702 spying powers under the Foreign Intelligence Surveillance Act for three weeks. After opposition from the Freedom Caucus today, that plan was dropped. Schumer agreed, saying that they need a clean spending bill:

“We cannot do a short-term funding bill that picks and chooses what problems to solve. We have to do them all together, instead of in a piecemeal fashion. It has to be a truly global deal. We can’t leave any of those issues behind.”

The Republicans claim that they can’t shut down the government because it would ruin their win with the tax bill. They have 48 hours pass a bill in the House, send it to the Senate who might make changes if they pass it and then send it back to the House who will then have to agree. That’s before the bill gets sent to the president for signing. The 2880 minutes are ticking away.

1 Comment »

  1. robber barons

    Like

    Comment by Lee Lynch — December 21, 2017 @ 12:33 PM | Reply


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