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Donald Trump would have
the American people believe that the recent GOP tax bill will provide
a spark to the U.S. economy while benefiting mostly the middle-class.
This would obviously be all well and good, except for the
inconvenient detail of it being an outright lie. In reality the GOP
tax bill is a duplicitous scam that will limit the potential of the
American economy at the cost of everyday people in the United States.
Tax cuts for everyday
Americans will disappear, corporate tax looting permanent
Trump and the GOP are
banking on the positive effects of the tax bill to be felt in the
pocketbooks of the average American voter in time to help Republicans
in the upcoming elections in 2018 and 2020. Although most Americans
will receive a tax cut, those benefits are only short-term and
transitory and will also come at a steep price. Meanwhile the massive
tax cuts corporate donors receive from the tax bill will remain
permanent, leaving future generations to deal with a more than $1
trillion deficit increase as a result.
Corporate donors carry
water for Trump and GOP
Upon
passage of the GOP tax bill some corporations who stand to profit
handsomely from the new policy attempted to assuage the public's
strong disapproval of the tax scheme by literally throwing money at
them. Wells Fargo and AT&T were the first corporations to rush to
announce bonuses and wage increases which they claim are a result of
the tax bill. However, it is likely their intentions are more
self-serving than anything else.
These
two corporations just happen to be facing scrutiny from the Trump
administration over various regulatory issues. Trump targeted Wells
Fargo in a recent Twitter tantrum,
threatening to levy heavy fines against the bank for past
wrongdoings. AT&T has also been under recent scrutiny regarding
its proposed merger with Time-Warner. In falling over themselves to
announce the worker bonuses these corporations are likely hoping that
their strategically timed announcements
regarding worker bonuses will stroke Trump's pathetic and fragile
ego. Additionally, with a tight labor market and unemployment at
historic lows, it would make sense for corporations to already be
thinking of raising wages due to increased competition to attract
qualified workers, regardless of the GOP tax scam.
Missed opportunity for
real economic growth in renewable energy
If
Republicans really wanted to revamp the U.S. economy there are
numerous better options than to gift loads of tax giveaways to
corporate donors. One thing the GOP and Trump could do is drop their
regressive energy polices aimed at propping up a dying coal industry
while at the same time attacking the renewable energy sector. The
solar and wind
energy industry are among the fastest growing industries in the
world today. Renewable energy has the potential to create millions of
new jobs, however, instead, the Trump administration is aggressively
looking to take actions
which would dampen this potential growth.
Coal is a losing bet
for America
Propping
up the coal industry at the expense of renewable energy is a losing
economic strategy for the long-term. It is obvious that the future
trajectory of coal energy is downwards towards obsolescence,
making the potential for job growth from coal quite limited. If
anything there will be limited
job gains in coal in 2018, which Trump will try to use as a
political talking point when stumping for GOP candidates in the 2018
midterms. However, in the long-term, coal is a losing bet for the
American economy and will cede the booming global renewable energy
market to rivals such as China.
Trump immigration
stance leaves money on the table
Another
way which Trump is dampening future U.S. economic power is through
his immigration policies. The administration's xenophobic and racist
anti-immigration stance is depriving America of the necessary labor,
skills and entrepreneurship which could release the untapped
potential of the U.S. economy.
Threats
of deportation and harassment of immigrant communities, particularly
those from Mexico and Central America, has resulted in the worsening
of an already-existent labor
shortage for home builders. This keeps real estate supply too low
to meet demand, which results in skyrocketing housing prices, keeping
housing unaffordable for the everyday American consumer. Also, Trump
is currently using DACA
as a bargaining chip for his promised massive southern border
wall. This causes more fear in the immigrant community which in turn
keeps many immigrants out of the labor market and discourages others
from immigrating to the U.S., further depriving home builders and
other employers of much needed cheap labor. Additionally, immigrant
entrepreneurs have historically played a critical role in
creating jobs in America and therefore policies making it easier for
immigrants to come to America should be promoted.
Trump racism will
punish the American economy
Instead of breaking up
immigrant families, Republicans and Trump could find a way to make
America more welcoming for immigrants who will perform the needed
work Americans are not willing to do. This increase in economic
activity would even go towards funding the more than $1 trillion
deficit the GOP tax scam is expected to leave for future generations.
However, this would not be politically tenable for Trump who ran his
presidential campaign on stoking racism
and hatred
among his mostly white base.
GOP tax scam reflects
Trump narcissism and duplicity
Ultimately, the Trump tax
policy is a perfect reflection of Trump as the narcissistic,
self-serving liar that he is. The GOP corporate tax giveaway is
essentially attempting to bribe the American voters with minimal
economic gains which will eventually be paid back in the form of cuts
to important social safety nets such as social security or Medicare.
Meanwhile, the tax cuts for big corporations will remain permanent at
the expense of the American middle class and impoverished
communities.
