Connect with us

Politics

Schumer pulls last minute gambit to keep Republicans from appropriating relief funds

Published

on

[ad_1]

While Senate Majority Leader Chuck Schumer (D-NY) tends to flack from progressives as the corporatist type, the Democrat establishment is too moderate to fight GOP infidelity effectively, he should be given credit for a last-minute addition to President Biden’s American Rescue The plan to have Republican GOP-controlled state governments is inflamed with having their unintentional plans missed by Schumer’s clever scrutiny.

At the last minute, before the final draft of the bill was completed, the New York senator slipped into a provision aimed at destroying any plans that these local politicians might have used the money designed by the bill’s funnels. -laws in state and municipal governments. to help COVID-related shortcomings that would instead help subsidize additional tax cuts for wealthy residents of their states.

“Money from COVID assistance needs to go to help Americans get through the pandemic every day, not pay for tax cuts for the rich,” Schumer said in a statement to online news outlet The Daily Poster. “The American Rescue Plan clearly prohibits states from using emergency COVID relief dollars to fund pointless tax cuts. Governors should use this money to maintain public and social health programs to combat the pandemic, and keep millions of other vital employees at work and working for our communities. “

Schumer’s move suggests that Democrats have learned a trick or two since the last economic bailout package they were forced to pass in 2009 after George W. Bush’s presidency’s GOP financial crisis. which boosted the economy.

Having cold water thrown into their feverish dreams of more tax cuts for wealthy billionaires, Republicans are now loudly moaning about the ban and desperately trying to reduce the provision.

According to Newsweek:

“West Virginia and Mississippi already have legislation in the works to end their state income taxes altogether, while Iowa is considering a phase out of the inheritance tax. In the meantime, lawmakers said of Florida hopes to use the federal stimulus to subsidize corporate tax cuts. ”

Now the GOP in those states must make a choice: go ahead with tax reduction plans and abandon any federal assistance while also losing revenue that taxes could get or overturn their plans that only benefit a small fraction of their citizens.

“‘Usually any tax deduction made at the state level doubles the cost,’ said Carl Davis, director of research at the Institute on Taxation and Economic Policy. For example, if a state imposes a $ 50 million deduction in taxes, it will lose $ 50 million in revenue it won’t collect and another $ 50 million in federal aid. “

Economists pointed to the decay that occurred in Kansas after the last financial crisis when the conservative Republican and state governor cut taxes on the wealthy and on corporations while simultaneously cutting funding for public education and infrastructure.

The resulting budget crisis eroded ratings for Kansas state bonds and raised their borrowing costs because the predicted trickle-down never materialized.

Moreover, the education cuts were so draconian that outcry from the citizens of the state forced the legislature to repeal the tax cut in the face of Governor Sam Brownback’s objections.

Kudos to Majority Leader Schumer for his ability to learn from past strategic mistakes in dealing with cunning and interested GOP politicians.

With billionaires adding significantly to their net worth during a pandemic while the working class suffers severe economic failure, all the money spent on the American Rescue Plan should go to those who need it most, not those who have more than comfortable nest eggs to see them in these difficult times.

Follow Vinnie Longobardo sa Twitter.

Original reporting by Julia Rock, The Daily Newsweek Poster.

We want to hear what YOU have to say. Scroll down and let us know in our comment section!

Vinnie Longobardo

Vinnie Longobardo is a 35-year veteran of the TV, mobile and internet industries, specializing in start-ups and the international media business. His passions are politics, music and art.



[ad_2]

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *