Democrats are betting that they can win in 2018 by running against the new tax reform bill. It makes absolutely no sense but then again, we’re talking about Democrats. Do they realize they are now running against American workers and families?
Take a look at this column from the Wall Street Journal:
The Democratic strategy heading into 2018 comes down to running against the tax bill almost entirely on the basis of its poor opinion-poll numbers, which result from months of negative media spin. Still, there are a couple of things worth noting about the position the Democrats have staked out…
Consider as well the economic substance. Among the criticisms of the corporate-rate cut is that businesses mostly would buy back shares, benefiting only shareholders. Certainly many will do that. But the announcements by AT&T, Boeing and Comcast suggest another likely result. In a growing economy with a tight labor market, scarce workers are increasingly valuable. When Boeing says it plans to invest $100 million in its workers, the clear message is that Boeing knows that in a strong and competitive economy, it is going to be in a bidding war for talent.
That is part of the argument made by White House chief economist Kevin Hassett and others. A wide body of research suggests that corporate tax reform that lets companies retain a greater share of earnings will benefit workers in higher wages.
How any of this is bad is a mystery. Democrats are betting that the private sector will fail to respond to the tax bill’s incentives. Democrats used to be the party of hope. Now, by their daily admission, they have become the party of hoping that tax cuts will fail and private investment won’t help workers.
It’s going to be fascinating to watch Democrats argue that working people would be better off giving more of their hard earned money to the government.