Monday, December 12, 2016

Zero Hedge — The Narrative Changes: Republicans "Pour Cold Water" On Trump's Massive Stimulus, Will Block Tax Cuts

Republican lawmakers warned "that there could be a major obstacle to enacting President-elect Donald Trump’s agenda: the national debt."
“I was disappointed that it wasn’t brought up in the campaign — anybody’s campaign really — it really wasn’t mentioned,” Sen. Jeff Flake (R-Ariz.) said of deficits and debt. “So I’m very concerned about it. It’s going to be tough to address if there’s no push from outside of the Congress,” he added. “I’m very concerned about it. It’s the biggest problem we face, by far.”
“We did not hear anything about entitlement reform from either of the candidates, and that’s a serious issue,” said Michael Sargent, a research associate at The Heritage Foundation. “You cannot address the growth in spending without addressing entitlement issues.”...
As Bloomberg explains, Trump’s race to enact the biggest tax cuts since the 1980s went under a caution flag Monday when during a news conference, "Senate Majority Leader Mitch McConnell warned he considers current levels of U.S. debt “dangerous” and said he wants any tax overhaul to avoid adding to the deficit."…
“What I hope we will clearly avoid, and I’m confident we will, is a trillion-dollar stimulus,” he said. “Take you back to 2009. We borrowed $1 trillion and nobody could find that it did much of anything. So we need to do this carefully and correctly and the issue of how to pay for it needs to be dealt with responsibly.”
Then there is the debt limit, which will need to rise next year to avoid defaulting on government obligations; McConnell said he wasn’t sure if that would be paired with any deficit-reduction measures next year as it was in 2011, when Republicans held the debt limit hostage and extracted more than $2 trillion in deficit cuts over a decade from President Barack Obama.
House Speaker Paul Ryan has also said he wants tax changes to be deficit-neutral, indicating that Republicans will assume positive macroeconomic benefits from tax cuts to ease the projected budgetary hit - a process known as dynamic scoring that is popular on the right.…
Finally, even if all the changes are implemented immediately, and the GOP rolls over, virtually none of Trump's stimulus package will generate any impact on the economy until some time in 2018 as Goldman calculated last week.…
Trumponimics DOA?

8 comments:

Unknown said...

He may well have to use the trillion dollar coin!

Tom Hickey said...

I bet he has the balls to do it if he knows about it.

Bob said...

Republicans opposing tax cuts for the rich? What sort of blasphemy is this!

Matt Franko said...

They are ignoring the external balance... They dont understand the accounting...

btw neither has Trump evidenced this understanding either...

Noah Way said...

Outsiders (of any flavor) are not allowed in the club. Evidence is Obama - who doubled the net worth of the 0.1% while overthrowing sovereign nations and waging illegal wars across the globe.

The Deep State and their stooges (both parties in congress, the media, the 'intelligence' services, etc.) are going to stop Trump cold. One way or another.

Ignacio said...

the coin is the only solution long term... people just does not ge the whole "debt!!!" thing. is loaded terfm, 99% humans are biased towards all this due to personal experience generalization.

not gonna work, people is just dumb. sorry guys, try other thing.

Ignacio said...

the only way this works is someone with authority and "big balls" to go against the general public and political establishment to do something against the (counterproductive) will of the population. then we hope for the best this is not reversed "because moronism" triumphs (again) and people OBSERVES this is not the end of the world ("hyperinflation! zimbawee! we are broken -sic-") and we MAY be start to watch the light at the end of the tunnel and focus on real problems instead.

only a berluconian (trump for example) personality which believes/functions within the current system will do it. otherwise someone who does NOT believe/function within the current system will achieve power and do it eventually, along with a hell load more of things for the good or the bad /either killing jews, capitalists, muslisms, or who knows doing what).

all this is painfully obvious to me, many other things no, but this one? crystal clear.

David Swan said...

I can only have pity for anyone who deluded themselves that the outcome of a Trump administration would be some renaissance of deficit spending. What color is the sky in that world? This is Paul Ryan's party, and Paul Ryan is going to put his austerity stamp on the next 4 years. Again, I can only sit in perplexed disbelief that anyone ever thought otherwise.