The Republican tax bill passed the Senate Budget Committee on Tuesday along straight party lines. The legislation now goes to the full Senate. It is one of the most disastrous pieces of legislation ever to be introduced in Congress, and yet it looks increasingly likely to pass the Congress and be signed into law.
The bill contains huge tax breaks for corporations and wealthy individuals while it hammers the poor and middle class. Instead of stimulating economic growth, as Republicans claim, it is much more likely to hurt the economy over the longer term by exacerbating income inequality.
How did we get to this place where legislation of such immense importance and negative effect now seems likely to pass the Congress along straight party lines?
Well, you can blame Republicans and Democrats alike who have so contorted the budget process as to allow major legislations to pass on party line votes, instead of the 60 votes needed to ensure bipartisan support.
Or, you can blame the corporate media which is busy “reporting” on Donald Trump’s latest tweets – and totally out of its depth on most complex issues including taxation and the economy.
You can even blame the Democratic Party establishment which is mostly content to simply oppose Donald Trump rather than advance a coherent policy agenda of its own.
But if we are going to play the blame game, let’s get to the root cause: big money, mainly corporations, have so completely “Captured” the U.S. Government and they are now advancing legislation that clearly benefits them at the expense of the American middle class and the U.S. economy as a whole.
How do they do it: well, for one thing, they take advantage of court rulings such as Citizens United, and a lack of public disclosure requirements, thanks to Republican opposition in Congress, that allow corporations and wealthy individuals to operate out of public view while spending huge sums to lobby the government and influence elections.
Perhaps we should heed the words of Jeremy Grantham, a British born financier from Boston. Grantham is a bit of a legend in financial circles, having predicated the last two financial bubbles in 2000 and 2007. Here is Grantham quoted November 6, 2017 on the editorial pages of the Wall Street Journal:
“The U.S. form of capitalism has lost it way. The social contract was previously in good shape. Corporations looked after their employees. They were more paternalistic. Great pension funds were starting up. The CEOs were increasing income alongside their workers. CEOs earned more than 40 times workers. Today that number is 350 times, and the system has gone to hell. Keynes, Schumpeter – and Marx not to mention—thought, by their nature, corporations and capitalism would overreach simply because they could. Corporations would use their advantages to get more power and more money. Their share of the pie would increase, and cause society to push back. Sooner or later there will be pushback.”
Well said, Jeremy. But the time for “pushback” is not sooner. It is certainly not later. It is now.
Oh when, oh when, will it ever end
Arise and fight!
God save our Nation once again