There
are two problems with the Trump administration’s tax reform
proposal.
First,
it’s not Trump’s. It comes from the Republican Congress, just as
did all of his claimed health care “repeal and replace”
proposals.
It’s
not “reform.” The proposal’s main purposes are to cut
corporate taxes and taxes paid by the wealthiest investors.
Like
almost everything coming out of government – federal and state,
Republican or Democratic – it lacks a consistent policy. Voters
today see the GOP relentlessly pursuing a reduction in the size of
government and Democrats failing to offer any alternative beyond not
being Republicans.
President
Trump promised an approach to health insurance reform that would be
better for all. He said that the focus of tax reform would be better
treatment of the middle class. He offered neither.
On
health care, he had no proposal of his own, but supported with equal
enthusiasm each successive fallback proposal by congressional
Republicans. On tax reform, he offered great praise for a bill that
had not yet been drafted.
The
voters now get it. The latest Washington Post/ABC poll shows, after
the same period in office as his predecessors, he is the least
popular president since these polls began in 1953 and the only one
with a net unfavorable rating.
Even
on the economy, he gets an unfavorable response. For a while, he got
credit for a rising stock market, but it is reasonably clear that
investors boosted share prices in the expectation of corporate tax
cuts.
Gov.
LePage, a Trump ally, showed up in another poll as one of the most
unpopular governors in the country. His lack of compassion and his
narrow focus on cutting taxes above all is turning out not to be a
substitute for sound management or the ability to work with the
Legislature.
In
the case of Maine, using the processes of initiative and referendum,
the voters took the issue of Medicaid expansion out of the hands of
state government. This week, the people, whom government supposedly
serves, voted for expansion. LePage vetoed Medicaid, but the voters
vetoed LePage.
Here’s
what the GOP House tax bill really does. It simplifies some portions
of the tax code, but much of that “reform” takes benefits away,
even from the middle class. The wealthiest would keep their tax
breaks and see the estate tax melt away. The proposal slashes the
corporate rate.
Tax
reform is supposed to collect taxes differently but with no change in
the government’s total take. This “tax plan” would produce a
$1.5 trillion deficit over the next six years. Don’t worry,
though, its supporters claim it will stimulate the economy and
produce new tax revenues to cover that new debt.
If
such a bill passes, and it could, it would be a top sales promotion
feat, promising much more than it produces. It could create the
major campaign issue for 2018.
But
there’s the problem for the Democrats. In the same survey giving
Trump an unfavorable rating for his job performance, voters said the
Democrats mainly criticize Trump rather than offering alternatives.
The Dems’ rating was even worse than Trump’s low grade.
Neither
party seems to be able to make the process work. If it passes, the
tax bill may be the only major piece of legislation enacted this
year, possibly without a single Democratic vote.
Admittedly,
there are risks for both parties these days. But in the governor’s
race in Virginia, a Democrat defeated a pro-Trump Republican and the
results were not as close as forecast.
GOP
members of Congress announce regularly that they will not run for
reelection. Either they want to flee the toxic Washington atmosphere
or they are afraid of challenges from the extreme right, supposedly
loyal to Trump.
The
Democrats are split between moderates and those who want to move the
party to the left. If they cannot find compromises, their party
could throw away its chance to have a bigger say in government.
The
answer for Republicans is to stand on conservative principle, but
worry less about keeping their unpopular campaign promises. They may
risk losing a GOP primary, but dropping unworkable plans and opposing
Trump are worth the risk.
For
the Democrats, who have never had a tightly organized party, the
solution would seem to be getting under the “big tent.” No
Democrat should spurn another simply because they disagree on some
policies. And the party needs new leaders from outside Congress.
Both
Republicans and Democrats look over their shoulders too much and
should face up now to the problems Trump causes nationally and
internationally.