It now appears that the tax bill is going to pass on a strict party line vote. The Democrats have provided a few minor parliamentary issues but it appears it will pass shortly. The Editors of WSJ asks what has happened to the pro-growth Democrats over the past decades? Here is a brief tidbit:
How has the party of the [John F.] Kennedy tax cuts of the 1960s and the co-writers of the Reagan reform in the 1980s become implacably opposed to pro-growth tax policy?
It is a really good question. Their answer is that it is part ideology and they connect that to their obsession with income inequality. Another part is that there aren’t any pro-business Democrats. A third part is that they want to work in a future Democratic administration and they need to support the party. Related to that they see the Democrats as all in on fighting the Congressional election in 2018 and the presidential on in 2020. The Editors point out that the Democrats could have negotiated something like a carbon tax that MWG supports.
One minor comment on the Editors: there are lots of pro-business Democrats but there are few or no pro-market Democrats. Democratic support of the Import-Export bank is evidence of that.
Two important questions that we have is how do the Democrats intend to fight income inequality and what is the appropriate Gini coefficient
or some other measure of the goal. Will that use higher corporate taxes? Will they use higher individual taxes. Will they increase the estate tax? Will their motto be: A falling tide keeps all boats in the harbor?
We would like to see the Democrats of our youth and middle age return. Has the party gone to far to come back?