Ryan's Journal

"My life amounts to no more than one drop in a limitless ocean. Yet what is any ocean, but a multitude of drops?" — David Mitchell

Why this Bill?

Posted from Culver City, California at 8:49 pm, November 27th, 2017

“A strong conviction that something must be done is the parent of many bad measures.” — Daniel Webster

After a legislative session that so far has no major accomplishments, Republicans in Congress are now preparing a tax bill that they have stated could lead to electoral disaster if it doesn’t pass. As someone trying hard to understand the logic behind this particular legislation, it’s a mystery to me why this bill is what they chose for their “must pass” moment.

Republicans have preached fiscal responsibility for as long as I can remember, but they are now firmly behind a bill that adds at least $1.5 trillion to the national debt and whose major goal is to reduce the corporate tax rate. There is an argument to be had about whether lowering the corporate tax rate is a good idea or not, but where I’m puzzled is the fact that I don’t think anyone is arguing that lowering the corporate tax rate is the best possible use of $1.5 trillion. Thus, why make the corporate tax rate the centerpiece of what the party is now calling its do-or-die moment???

If Republicans feel that they must pass something, rather than choosing an unpopular tax bill with murky prospects, it would have made vastly more sense to choose something like an infrastructure package that would be broadly popular, easy to defend, and a clear benefit to both businesses and the working class – “look, we’re fixing highways, railroads, dams, bridges and other very useful and visible things that will make everyone’s lives better, and we’re putting hundreds of thousands of people to work and pumping tons of money into American companies in order to do it!” Instead they have a bill that no one is enthusiastic about, that appears to be fiscally reckless, and one that could easily become a budgetary lodestone if it passes, or a legislative Waterloo if it fails.

The quote at the top of this post is my best guess as to what’s actually happening – for some reason they picked the corporate tax rate as the item to focus on, and now they are stuck in a position where they “must pass” something that no one really likes. As to the larger question of how they picked the corporate tax rate as their area of focus, maybe it’s a result of having too many bankers in government, since the financial industry is probably most likely to make business decisions based on a favorable tax environment (as opposed to other industries that weigh things like labor costs, geographic location, infrastructure, worker availability, or some other criteria far more heavily). Like anything that happens in Washington, I’m sure that there is a lot that I don’t understand, and I may be missing something obvious about this particular bill, but it sure seems like a very, very strange piece of legislation on which to stake the party’s reputation.

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