Look folks, our U.S. economy is doing well. There is no need to cut taxes for the rich to stimulate investment into the U.S. economy. There is plenty investment capital, but Cathy McMorris Rodgers and the other Republicans in the U.S. House or Representatives voted again to give another huge tax break for the rich. Simply stated, the only reason they cut taxes was to do a political favor for the corporate and super rich Republican base.
Low interest rates are the most reliable sign of plenty investment capital, and they are really low. The current federal funds rate is near a 40 year low at around 1.2%, which is why loans for corporate investment, home buyers, consumes, and students are also at a low rate. The financial markets are flooded with investment capital and cheap loans. It does not make any economic sense to once again cut taxes for the rich to create even more investment capital for the economy.
Low interest rates are good, of course. However, realistically, interest rates cannot get much lower. Also, the overall economy is solid. Unemployment is low, inflation is low, and the GDP is growing a solid 3%.
So why would McMorris and her pals vote for these tax cuts? If you are a Republican in congress who has no major legislative accomplishments to show after your party has controlled the U.S. Senate, the U.S. House, the White House, and the U.S. Supreme Court for eleven months, you need do something going into an election year.
The one thing that most Republicans can agree upon is tax cuts especially when it is for the rich, and in this case it will result in a cut in Medicaid that will hurt the low income and the elderly. As expected, Cathy McMorris Rodgers cast her vote for the Republican tax cut last week. Now, she tries to defend her vote in the Spokesman Review.
Q: What are the tax bill’s implications to Medicare and to Medicaid and the people who depend on it?
A: I think the impact of the tax bill for America and for individuals and families is that it is fundamentally going to mean, yes, more money in your pocket. It’s going to be jobs growth, job opportunities and, ultimately, it’s going to mean increased economic activity and an increased number of people that are in the workforce that are working, that are paying taxes.
Q: But what about Medicare, people who are past their working years?
A: It’s going to mean more money in their pockets.
Rubbish, there is no factual basis for her statements.