We use the metaphor of a champagne tower to show a major blind spot in Jeb Bush’s (and other GOP) tax plans. Why a champagne tower? Because you know, class.
The Tax Policy Center in Washington is not your average think tank. While DC is filled with think tanks that try to push or frame policy one way or another, the Tax Policy Center is traditionally known to be non-partisan and their reports can be seen quoted from both sides of the aisle. Usually they only comment on tax policy that is currently being discussed in Congress.
However for Jeb Bush, they made an exception.
We’ve talked about Jeb Bush’s proposed tax plan before, but this week the Tax Policy Center has also looked to have weighed in on the matter. And, it doesn’t look good if you’re Jeb Bush…
Through their analysis they discovered that Bush’s tax plan would increase the deficit by $6.8 trillion over a decade and put an increase of 50% on the national debt by 2036. Even though the report also says it keeps Bush’s promise of cutting tax rates across the board – for both individuals and businesses – for a Republican candidate that is promising a leaner-government, this doesn’t look good.
The major problem with Bush’s tax plan – along with similar GOP tax plans including Donald Trump’s – is that it cuts taxes without bringing meaningful income into the government. So as the Tax Policy Center estimates, it will decrease federal revenues by a considerable margin over time. Of course fiscal conservatives would argue that an increase in cash to the wealthiest individuals and corporations would then lead them to invest more in other investment opportunities, which helps everyone in the long run (a la trickle-down economics). But the Tax Policy Center’s analysis says the major backbone of Bush’s tax plan – allowing all corporate investments to be immediately expensed thus encouraging more companies to invest – would cost $1.5 trillion overall. OUCH!
To put it in simpler terms, think of it as a champagne tower.
The idea is if you pour from the top of the champagne tower, the overflowing of the first glass will come down and fill all the other glasses. With champagne being a metaphor for money, of course. The GOP tax plans insist that their plans would make all of the glasses get filled faster. The Tax Policy Center attests that might be true, that you might get champagne down to the bottom glasses faster in the short term, but you’ll also run out of champagne a whole lot quicker! So instead of two glasses of champagne, you would only get one.
As said before, considering Bush’s tax plan is similar to other traditional tax plans like Donald Trump’s and Marco Rubio’s, along with hearing that their tax plans could create such a sizable debt since there is such generous slashing of the tax bases at all levels, is concerning. If the Democrats wanted an opening to criticize the GOP’s various tax plans, the Tax Policy Center might have just handed them one.
Then again, as long as Donald Trump keeps saying he won’t let Muslims into the United States, the GOP looks to have bigger fish to fry at the moment.
(Photo Credits: Google Images)