Koch Brothers, Republican donors want to ignore deficits in Trump tax reform

Deficits don’t matter! That has been the Republican Party’s official mantra when holding power in Washington. Of course, when they’re out of power, the GOP slams budget deficits.

Under President Donald Trump and the Republicans’ tax reform initiative, the tax burden is shifted around and the budget deficit spikes over the next decade – it’s estimated to be by as much as $2 trillion.

But some certain Republican donors don’t want this fact known to the public.

According to The Intercept, which obtained an internal memo from the Koch brothers’ network, GOP contributors want to sell tax reform legislation by ignoring the idea that it will increase the deficit.

Here is the memo:

“In case it is helpful to you in your own discussions with lawmakers and others, below is a list of talking points that address some of the key hurdles to passing tax reform this year.

“Avoid getting distracted on revenue neutrality; economic growth increases revenues. Some Republican Senators have expressed concern over supporting comprehensive tax reform that adds to short-term deficits. Though we fully appreciate those concerns, the long-term economic growth that would result from the first comprehensive tax reform in a generation would help to offset short-term deficits over time. That was the result of the Kennedy and Reagan tax reforms—there’s no reason this time will be any different.”

The overall message that the Koch brothers and others like them want to send to the public is that any budget shortfall will be filled in by additional tax revenue. Nonsense!

Without slashing spending AND cutting taxes, the tax reform is for suckers. You can cut taxes all you want, but if you’re going to refrain from reining in the $4 or $5 trillion worth of annual spending, reducing the $500 billion deficit and unwinding the $20 trillion national debt, then you’re never going to solve America’s fiscal mess.

The Republicans should stop taking their advice from Dick “Deficit’s Don’t Matter” Cheney, Paul Krugman (the Obama years) and the Kochs and more from the Mises Institute.

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