President Trump signed the Tax Cuts and Jobs Acts into law in the Oval Office before departing for Christmas at his Palm Beach, FL home. Investor’s Business Daily writes: “Democrats have gone ballistic, claiming that the GOP’s sweeping tax plan will rob the middle class and the poor, line the pockets of the rich, and tank the economy. It’s all false, class-warfare clap-trap, and they know it….[Democrats have] failed to stop the one thing that might deny them a chance to retake both houses of Congress in the 2018 midterm elections: an economic boom.”
The Wall Street Journal writes that Santa Claus has already been distributing gifts from major corporations to workers in advance of the new tax regime going into effect on January 1st: Boeing $100 mn., AT&T $200 mn., Comcast $100 mn, Fifth Third $3 mn for its hourly workers and a minimum wage raise to $15 an hour. This is in addition to promised new investment, facility improvements, and new job hires.
Australia’s Treasurer fears that “If Australia doesn’t pass its own version of the Trump tax cuts, the country will take a hit to its GDP of up to 1 percent” as the US becomes a more desirable place in which to invest and create jobs.
The new tax bill not only puts pressure on countries like Australia, which presently has a 30% corporate tax, but also “blue” US states which have high local and state taxes that will no longer be fully deductible on individual Federal tax forms. Thus the tax reform that the President has just signed will put an end to the “Blue State Model,” a model of continuous tax hikes to pay for ever more generous salaries and benefits for unionized government-sector workers.
The Resistance consists of the multiple paths that Democrats are employing to sabotage the Trump Presidency and Republican agenda in Congress. One path is bureaucratic resistance. Bloomberg reports that “Washington Bureaucrats Are Quietly Working to Undermine Trump’s Agenda. Across the government, career staffers are finding ways to continue old policies, sometimes just by renaming a project.”