Republican Tax Plan Descends Into Smoke and Mirrors

Here’s the latest news on the tax front:

Senate Republicans on Thursday plan to propose delaying a cut in the corporate tax rate from 35 percent to 20 percent until 2019, four people briefed on the planning said, a major departure from President Trump’s insistence on immediate changes that he says are necessary to spur the economy….To try to prevent companies from waiting until 2019 to invest, Senate Republicans will propose to allow companies to immediately deduct all capital investments in 2018 to incentivize them to spend more money immediately, the people said.

I have two comments:

  • This is idiocy in the extreme. The sole reason for delaying the tax cut is to reduce the cost of the plan in its first ten years. It makes no sense as policy, but it’s a good way to game the CBO score.
  • It’s not a “major departure” from anything. Donald Trump doesn’t have a clue what he really wants, and he will praise anything that Republicans produce.

We are now entering serious smoke-and-mirrors territory.


Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2019 demands.

We Recommend


Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.


Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.


We have a new comment system! We are now using Coral, from Vox Media, for comments on all new articles. We'd love your feedback.