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Thursday, November 16, 2017

Reality Sets In

This morning on CBS radio, I heard a report that the new tax bill could lead to having some families that earn over $200,000 pay higher taxes.  The reporter then said that in previous tax cuts he never recalls anyone paying higher taxes.

Think about that and what it means.  First, remember that for years and years the Democrats and their media cheerleaders have told us that the wealthy do not pay enough tax or, as they put it, "their fair share".  Here's a plan that could cause a rise in the taxes paid by the wealthy and the media is complaining about that.

Second, realize that for the last month or so, all we have heard from the Democrats is that the tax plan would raise taxes on the poor and middle class (untrue) and give a gift to the wealthy (also untrue).  Finally we are getting media reports that reflect the actual reality rather than the lies of the last month.

Third, understand that no matter what the tax plan does or does not do, the Democrats and the media will denounce it.  They just want a political victory and don't really care what would be helpful for the economy and the American people.  It's like the spectacle of Democrats suddenly worrying about the deficit when we know that for the last decade and longer they only wanted to spend and spend and spend.

In may ways, it's like the current upset over the potential repeal of the individual mandate.  They all scream that people will lose insurance.  That's phony.  There will be people who choose not to buy insurance, but it will be their choice.  The Obamacare subsidies will still be there for those who want to use them, but someone who doesn't want insurance won't have to buy them.  If I decide not to buy a car, I haven't "lost" my car.  I have chosen not to have one.  It's the same with insurance.  On top of that, these people who choose not to buy insurance won't have to pay the tax that results now after such a decision.  About 80% of the people who are currently paying that tax are in the lower half of the income scale.  So basically the poor and lower middle class will get a major tax break and a choice on insurance, but for the Democrats "people will lose insurance."  Are they kidding?

It seems to me that perhaps, just perhaps, the reality of tax reform is setting in.

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