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Dems losing their relevancy?

December 21, 2017

Yeah, that tax cut plan is just horrible for all American workers. Well, except for the ones reported to be getting $300 Million in bonuses at AT&T and Comcast, and the ones getting immediate raises to a $15 minimum wage at Fifth Third Bancorp and Wells Fargo, and billions more in promised company expansions and charitable investments.

Those announcements came so quickly on the heels of passage of the bill that we cynics can speculate that they were already pre-scripted. It’s not inconceivable that out behind the barn, big companies were told by President Trump that they had better not keep all the extra money for themselves and their stockholders.

Still it’s a nice way to counter all the histrionic babble and teeth-gnashing coming from the left, and all that money is still going to spend well, no matter the motivation behind it.

Realistically, the overall effect is going to take longer than that to assess.

In some cases companies will have to wait until the end of 2018 to see the tax advantages. In others, the first of the year should prompt a sizeable rise in equipment purchases, since they can now be  expensed in the year of purchase.

Individual cities may see a rise in taxable property if existing business begin to build and invest in capital improvements, or maybe even build new facilities in cities and towns that don’t have them now.

States with lower property taxes could see more new construction and home purchases plus sales tax revenue increases if high state tax areas lose appreciable numbers of citizens.

Consumers, i.e. the middle class, also expect to see prices for goods either stabilize or go lower in the near future.

Even by  November of 2018, the trends should be much clearer than they are now, both good and bad.

Bad?  What bad?

There will be less money going to Washington, which means there will of necessity be less money going out of Washington.

To put it bluntly, some programs will lose funding completely, and others will have to get along on less, and that’s likely to include some long-cherished welfare and entitlement programs.

Which ones, we will begin to find out about soon. How smartly those are handled will have a big impact on popular opinion.

Of course the people who lose benefits are going to be unhappy.  One of the possible losers is rumored to be the Children’s Health Insurance Program, or CHIP.

That’s a PR nightmare, unless something is done to mitigate the impact. Even if rising incomes make fewer people eligible, no one wants to take responsibility for sicker kids.

And then there is the big three, Social Security, Medicare and Medicaid.  Look for Social Security to become means-tested.

Right now you HAVE to apply for Medicare benefits at a certain age no matter whether you need them or not, or face a lifelong penalty when you do need them. Some insurers won’t even sell new health insurance policies to anyone eligible for Medicare, and companies tend to drop retirees from company health, vision and dental plans. It’s the equivalent of the individual mandate for seniors only.  Look for some adjustments to that policy.

Those are sure to be the next big media outrage targets. Others are immigration reform, over and above whatever is done with the DACA issue, and welfare programs.

For those that want to paint the GOP as cold and heartless, it is worth noting that before considering a return to the Clinton era “workfare” policy, the administration did something to make sure there would be jobs available.

In short, it ain’t over by  a longshot, “it” being the resist movement.

Democrats desperately need people to be beholden to the government.  Otherwise, where’s the need for big government? And without big government where would Democrat politicians and their cronies work?

Remember that over the next year, or three.

From → op-ed

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