Paul Ryan Proposes Massive Tax Cut For the Rich That Adds $100 Billion To Deficit

paul ryan

Prior to January 21 2009, Republicans believed that “deficits don’t matter” and giving away unfunded tax cuts to businesses and the rich was economically prudent. The day Barack Obama was first inaugurated as President, Republicans changed their tune and screamed that not only do deficits matter, but they would in no way allow any government expense to go unfunded; particularly if they could cut spending elsewhere. However, now that the Kochs bought Republicans control of Congress, they are reverting back to their ‘unfunded tax cutting’ scheme and increase the nation’s deficit.

When Republicans took control of the House in 2011, Speaker of the House John Boehner professed that any federal expenses had to be matched with dollar for dollar spending cuts to prevent adding to the deficit. A deficit, by the way, that Republicans increased during the Bush administration by giving the richest one-percent of income earners unfunded tax cuts. Unlike paying for disaster relief after President Obama was inaugurated, tax cuts for the wealthy never included savings from other portions of the budget to be considered revenue neutral because ‘deficits don’t matter” according to Republicans because the deficits benefit the wealthy.

In his first proposed tax reform legislation as chairman of the House Ways and Means Committee, deficit hawk Paul Ryan’s tax plan benefitting big business and the wealthy will increase the deficit by $100 billion over ten years. To make matters worse, Ryan and his Republican cohorts are pushing the tax cuts without any “pay-for” as a permanent part of the tax code that no future tax reform can ever alter; because where tax cuts for the rich are concerned, deficits still “don’t matter.”

It has to be noted right away that the tax cuts Ryan will blow up the deficit with, without being paid for, will not benefit anyone outside of the rich and big business, but that is what Americans should expect from Republican ‘deficit hawks because something about the storied ‘job creators.’ However, there is nothing in Ryan’s plan that creates jobs.  But then again, Republicans are not in Congress to create jobs because they just create more wealth for the rich.

Ryan’s tax cuts for the rich and corporations (H.R. 644) is actually a package of seven permanent changes to amend the Internal Revenue Code of 1986 to benefit the wealthiest Americans, big business, and corporations. The largest, and costliest, measure allows big businesses to write off expenses faster and adds $77 billion to the deficit that does not matter because it affects the rich. The other parts of the tax cut package allow the wealthy and corporations to write off donations that no regular American will benefit from. The tax right-offs for the rich and corporations include allowing large companies to ‘inflate’ the value of food donations such as “old Twinkies,” make it easier for incredibly wealthy Americans to donate part of their retirement savings and conserve land. All areas that are unique to the wealthy elite and corporations; something Democrats took exception to.

Democrats are concerned that, for one thing, enacting Ryan’s gifts to the rich permanently without funding them will not only perpetually add to the deficit, but they will be permanent loopholes that cannot be negotiated to achieve tax cuts for the middle class in any “future reform efforts.” Representative Earl Blumenauer (D-OR) said “If we’re going to have any hope of a comprehensive tax reform, we’re not going to be able to because it (Ryan’s plan) narrows the range of what we’re going to have going forward.” He also said that since Ryan is “jettisoning deficit concerns” for tax breaks for the rich and corporations, “I’m willing to drop a hand grenade or two in the conversation if you’re going to go down this path. Because I’ve got some things I’m working on that would be extraordinarily popular if we don’t have to worry about fiscal discipline.”

Blumenauer and other Democrats noted that regardless how popular helping the charities and businesses is with the wealthy elite, the tax cuts will only help the richest Americans, large well-off companies holding onto expired but edible food they cannot sell, and the wealthiest Americans with huge retirement incomes. Democrats also complained that the tax breaks for the rich come at the expense of tax breaks that could help the middle class; the kind of tax cuts that Republicans oppose out of hand. Another Democrat, Xavier Becerra (CA) said “it causes a great deal of uncertainty for other Americans who don’t have the benefit of being able to give away their overabundance of retirement money to charitable causes,” and that “this Republican ploy selects almost $100 billion of favored tax provisions to benefit a small wealthy portion of taxpayers by borrowing more money from abroad.” Remember, Republicans oppose any measure that increases the deficit they claim is an abomination to future generations who will be “saddled with debt” to China.

Democrat Lloyd Doggett of Texas put Ryan’s typical Republican unfunded tax cuts for the rich and corporations in another perspective. He said, “Their package eliminates enough revenue ($100 billion) to fund life-saving medical research through the National Institutes for Health for more than two years. Instead of a bipartisan commitment to comprehensive tax reform, they continue on a partisan path to promote the privileged,” or in Republican-speak; the storied “job creator” class.

Despite Democrat’s opposition to the unfunded tax gifts to the rich and corporations, Ayn Rand devotee Ryan said, “These (tax breaks) are consistent with tax reform and are a move in the right direction” because they eliminate important and popular bargaining points from Democrats when tax reform comes up in the near future. Representative Jim McDermott (D-WA) said, “Some of us really would like to have a tax reform compromise come out of here, and we hate to see pieces that could be negotiable given away before there is any final decision making.” It is too bad because Republicans will not negotiate anything away that will benefit anyone other than their wealthy donors and corporations.

This first strike against the middle class to increase the wealth of the rich and corporations by House Republicans is a portent of their idea of ‘tax reform’ based on similar legislation they passed during the last session of Congress. The previous tax legislation would have added more than $800 billion to the deficit because “deficits don’t matter” if corporations and the wealthy benefit. The tax breaks did not get past the Democratically-controlled Senate, but now that the Kochs own the Senate, it is highly likely that tax cuts for the rich will easily pass both chambers and the deficit be damned; so long as it increases without helping anyone but the rich and their corporations.

30 Replies to “Paul Ryan Proposes Massive Tax Cut For the Rich That Adds $100 Billion To Deficit”

  1. whathe tea bag/repubs adding more to the debt
    March 2008: Bush stimulus $29 billion for Bear Stearns/JP Morgan Chase deal
    May 2008: Bush stimulus $178 billion in tax rebate checks
    July 2008: Bush stimulus $300 billion for distressed homeowners
    July 2008: Bush stimulus $200 billion for Fannie Mae and Freddie Mac
    September 2008: Bush stimulus $50 billion to guarantee money market funds
    September 2008: Bush stimulus $25 billion to Big 3 automakers
    September-November 2008: Bush stimulus $150 billion to AIG
    October 2008: Bush stimulus $700 billion to banks (TARP)
    $25 BILLION for the Raphael Cruz useless fillibuster
    US Wars in Afghanistan, Iraq to Cost $6 trillion
    http://www.globalresearch.ca/us-wars-in-afghanistan-iraq-to-cost-6-trillion/5350789

    Cheney’s Halliburton Made $39.5 Billion on Iraq War
    http://readersupportednews.org/news-section2/308-12/16561-focus-cheneys-halliburton-made-395-billion-on-iraq-war

  2. tea bag/repubs love running deficits. Here are just a few states that have to start cutting services due to poor budgeting.
    New Jersey – $2.7 billion deficit
    Pennsylvania – $1 billion deficit
    Kansas – $1 billion deficit
    Wisconsin – $2.2 billion budget deficit
    Arizona – $1.5 billion deficit
    Alaska – $3.5 billion deficit
    Alabama – $950 million deficit

  3. In 2000 we had a budget surplus because revenues were 20.6% of GDP, and were on the path to paying off the debt in 10 years.

    Then the GOP gained complete control in 2001 and put us back on the same path to increasing the debt that Clinton put a stop to in 1993 by implementing realistic tax rates. They might not know much but they do know how to build up the debt. They eliminated the pay as you go rules, that kept spending in check in the 90s, slashed upper-income taxes needlessly and without accounting for the loss of revenue, and then made massive, long-term, open-ended spending commitments (like wars and prescription-drug benefits) without accounting for the costs, and funded entirely by borrowing.

    Instead of paying the debt off in 10 years they have it up $12 trillion in 13 years.

  4. A deficit that they will squarely dump and then BLAME Obama and the Democrats for!! And those ignorant room temp. IQ’d Foxhounds will believe because they are simply stupid and quite un- American.

  5. And this surprised who? Seriously, the white workers who put these people in office should be tarred and feathered!

  6. Its the republican plan to give tax cuts to those donors that will lose money when keystone doesnt go through. They gotta make it up to them to keep the campaign donations flowing.

  7. Just go to ReaganBushDebt.org and you can see what Republican policies have cost us. Hint: most of our debt is directly attributable to Republican fiscal irresponsibility. Of course, I know this won’t come as much of a surprise to most who come here, but there are some solid numbers for purposes of rebuttal when Republicans start blaming our financial mess on liberals.

  8. good work, Andy, thanks.. unfortunately you’re preaching to the choir.
    The Tea Party and republican base hear a different drum, today Tennessee voted down Medicaid expansion even though the Hospitals said they would pay the states part .
    How do you battle a “Joseph Goebbels” campaign ?
    “in politics stupidity is not a handicap”, Napoleon Bonaparte

  9. Every time the GOP want to cut a social service, post comparisons to the tax breaks and subsidies that are already in place–not just the ones they are proposing. They propose enormously worse policies to keep everyone distracted from the tax breaks already in place, already happening.

  10. Everyone of them is currently RED or led by a republican….

    But looky here what LIBERAL Jerry Brown has done for California…

    California Seen Ending Year With About $3 Billion Surplus
    http://www.bloomberg.com/news/articles/2014-08-04/california-seen-ending-year-with-about-3-billion-surplus

    California sees reserves growing more than $4 billion over two years
    http://www.reuters.com/article/2014/11/19/us-california-budget-idUSKCN0J32CT20141119

    California’s debt was caused by years of republican borrow and spend with gov Reagan’s trickle-down scheme.
    With Surplus in Hand, California Eyes Debt
    http://www.nytimes.com/2014/01/10/us/with-surplus-in-hand-california-eyes-debt.html

  11. I have my liberal ammunition handy at all times to combate the delusional ones.

    It also helps to have Detroit Royality Aretha Franklin singing in the background.

    Conservatism as a Mental Illness
    Republican polls have recently exhibited 10 telltale signs of mental illness:
    Denial, Delusion, Hallucination, Disordered Thinking, Anger, Anti-social Behavior, Sexual Preoccupation, Grandiosity, General Oddness, Paranoia
    2012 – https://www.psychologytoday.com/blog/evolutionary-entertainment/201206/conservatism-mental-illness

  12. The Irony and the Ecstasy
    Every serious G.O.P. presidential aspirant invokes the glorious era of Ronald Reagan, to which the country must return. Ignore the fact that, for the likes of Paul Ryan and Rand Paul, Reagan’s actual record—from increased bureaucracy to higher deficits—should be seen as a complete failure.
    http://www.vanityfair.com/politics/2015/01/ronald-reagan-policy-political-failure

    Complete Proof of the $12 Trillion Republican Debt
    http://zfacts.com/p/1170.html

  13. The Reagan-Bush Debt is how much of the national debt of the United States is attributable to the presidencies of Ronald Reagan, George H. W. Bush, George W. Bush, and
    the Republican fiscal policy of Borrow-And-Spend.

    As of Thursday, February 05, 2015 at 11:49:46AM CT,
    The Current ReaganBush Debt is:
    $16,885,827,706,572.10
    which means that in a total of 20 years,
    these three presidents have led to the creation of
    93.26%
    of the entire national debt
    in only 8.3682% of the 239 years of the existence of the United States of America.

  14. Come on, ‘baggers’! Let’s hear your defense of this. We’ve said all along you’re being duped. And just think. This is ONE example.

    You’ve shot off your mouths before, so here’s your chance to have the courage of your convictions.

    We’re waiting.

  15. Their is no such thing as a collective brain . Their are only individual minds who form collations in socites to make non abutury and mutual agreements . Their is no justification for taxing a individual more just because their rich and have been successful . This is a false claim made by politicians that it will raise the debt because tax cuts don’t raise the debt since it is the peoples money and corporations and rich people are still people . The only way the debt can increase if you cut taxes is if you do not cut spending to the bone and even end government departments because if you cut taxes but don’t cut spending thier is no way to pay off the debt . In my mind this was the worse mistake of George Bush who was not a economic Conservative all but instead a statesit in favor of economic interventionism like all politicians .

  16. josh I’m very impressed. You spelled almost every one of your words correctly! Worse, worst, what’s the difference, really? And don’t we all know how that “i before e” rule is just so confusing – a lot like the pile of gibberish you took the time to type.

  17. How can anyone take Paul (Lyin) Ryan seriously? He has no apathy whatsoever combined with hypocrisy and outright lying. This is a very dark, sick character. His mother should be very proud of him. NOT!

  18. It has always been the plot and plan of the Republicans to increase the debt and the deficit in order to have those as excuses for reducing social services, including eduction and health care and unemployment benefits, to citizens. It is wholly in keeping with their basic political philosophy to have large debt and deficits to hold down spending on our middle class and working class families.

  19. Rick, You have your nouns confused. Do you mean EMpathy: I Feel YOUR Pain or SYMpathy: I’m Sorry YOU Feel Pain? Really Don’t think you meant Apathy: What pain? I Feel NO Pain.

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