During Barack Obama’s first term, Republicans in D.C. told conservative voters, “If only we had a majority in Congress, we could get things done.” In 2014, Republicans gained control of the House and Senate.
Then for the rest of Obama’s term, Republicans in D.C. told conservative voters, “If only we had the White House, we could really get things done.” In 2016, a Republican won the White House.
The GOP now controls the House, Senate, and White House — it is a rare opportunity to create real change and make ambitious conservative initiatives reality. Yet still, just as before, nothing gets done.
{mosads}Earlier this year, congressional Republicans squandered their only opportunity to repeal and replace ObamaCare. Senator John McCain, who campaigned himself on repealing the health care bill, effectively killed the effort with his “No” vote.
Now congressional Republicans have the chance to at least accomplish one goal by passing tax reform. If they fail to do this, the GOP is doomed in the 2018 midterms and beyond.
Tax reform should be easy for Republicans. The issue isn’t nearly as controversial as health care, and the problem is relatively simple: The United States has the highest corporate tax rate in the industrialized, OECD world. Corporations keep hundreds of billions of dollars overseas because they know as soon as they bring it back here, one third of it will be confiscated by the federal government. When corporations are encouraged to grow in other nations, that means they do less hiring here at home.
These are not hard concepts to understand. When you tax something — in this case, businesses — you get less of it. It’s economics 101.
Predictably, most congressional Democrats have protested significant tax reform measures from the start. Any aggressive tax cut for corporations are immediately branded as “tax breaks for the rich!” Either these career politicians are so out-of-touch with the private sector that they’ve forgotten how the economy works, or they’re playing to the lowest common denominator of voters with scare tactics.
The vast majority of working Americans can see through the left’s alarming rhetoric. Yes, corporate taxes are technically paid by rich CEOs — but in the end, the burden of such taxes are borne by a combination of shareholders, and consumers (through higher prices), and workers (through lower wages). In fact, some economists estimate that 70 percent of corporate taxes are paid for by workers. To suggest that corporate tax cuts only benefit greedy one-percenters is a bold-faced lie.
To be sure, tax reform as an issue isn’t as “sexy” as building the border wall or repealing Obamacare. But outside of the beltway, it is a relatively non-controversial issue that affects every American. Lower corporate taxes would boost the economy, improve the job market, and make our nation competitive again.
The Senate tax bill was introduced last week, and already been watered down a number of times to appease establishment GOPers on the hill, including “phasing in” corporate tax cuts in 2019. On the other hand, the House tax bill has its own problems. This version doesn’t fully repeal state and local deductions, which effectively forces fiscally-responsible states with low income taxes to subsidize tax-and-spend policies in liberal areas. And it keeps the unpopular ObamaCare mandate.
Bottom line: Both bills are far from perfect. Neither goes far enough to cut burdensome expenses for corporations and working class Americans. But ultimately, either bills would be better than what we have now.
Tax reform should be an easy win for the GOP. If congressional Republicans fail act, and soon, they will have accomplished nothing for their voters. Zilch.
At that point, they won’t be able to blame the Democrats. They won’t be able to blame Donald Trump. They won’t be able to blame “not having enough time.” The blame of this massive failure will fall squarely on their own shoulders, and they will be held accountable at the voting booths.
And ultimately, that might not be such a bad thing. If Republicans refuse to fight for their own constituents, perhaps they don’t deserve to win elections in 2018.
Kristin Tate is a conservative columnist and author of the book “Government Gone Wild: How D.C. Politicians Are Taking You For a Ride And What You Can Do About It.” She was recently named one of NewsMax’s “30 Most Influential Republicans Under 30.” Follow her on Twitter @KristinBTate.