Republican tax reform has taken many forms over the past couple of months as different bills have moved through the House and Senate. Individual tax cuts have been watered down to the point of questionable significance, but the corporate tax cut fortunately hasn’t.
When the votes are counted, Republicans will back it with near unanimity, and the Democrats will oppose with equal comraderie.
The fact that tax reform will be passed on a party line vote says a lot about what has happened to the Democratic Party over the past couple decades. It wasn’t long ago that Democratic Presidents supported cutting taxes. In fact, just last year Bill Clinton voiced support for cutting the corporate tax rate.
Bill Clinton supports cutting corporate taxes
In the midst of last year’s presidential campaign, former President Bill Clinton was hard at work. During an interview at the Clinton Global Initiative, Clinton was asked about the Trans Pacific Partnership (TPP) and what the corporate tax rate should be. His response was as follows:
“I was the president who urged it to be raised to 35 percent, but when I did it, it was precisely in the middle of OECD countries. It isn’t anymore,”
“I think it should be lowered. This is just me now. I’m not speaking for…”
President Clinton went on to explain that the United States should do “sorta what the Japanese did” and lower the corporate tax rate to the international average. Right now, that simple average is about 25% according to the Tax Foundation.
Therefore, it would only make sense for Bill Clinton to come out in support of the current Republican tax reform that lowers the corporate tax rate to 21%. But, of course, that will never happen.
The Democrat Party will never be in favor of cutting taxes again
Hillary Clinton’s loss last year was a result of many factors, but one of the most prominent was the lack of connection to the young, liberal base of the Democrat party. Since her husband was elected President twenty five years ago, the party has veered far to the left.
This was personified in the candidacy of Democratic Socialist Bernie Sanders who wanted to raise corporate taxes. His plan would have increased taxes on individuals at nearly every level as well. Economically illiterate millennials flocked to that campaign, and rejected the more moderate (compared to Sanders) tax proposals of Hillary Clinton.
Those young liberals blame Clinton’s moderation for her loss to Trump. They reject the notion of lowering corporate taxes and making the United States competitive internationally. They’re steering the party now, and will make sure that not a single Democrat votes for a Republican tax reform bill.
(Photo of Former President Bill Clinton speaking with supporters at a campaign rally for his wife, former Secretary of State Hillary Clinton, at Central High School in Phoenix, Arizona by Gage Skidmore)