The tax plan passed last week by House Republicans — including Rep. Jaime Herrera Beutler, R-Battle Ground — is flawed at its very foundation. The proposal, which passed by a vote of 227 to 205, is built upon two rickety suppositions: That there is a need for tax cuts, and that tax cuts will spur the economy. Neither premise passes the smell test, leaving the public with a plan that stinks for average Americans.
With the nation having largely recovered from the devastating Great Recession of the past decade, the argument that tax reform — meaning cuts, in the Republican lexicon — is a specious one. Unemployment is below the level of what is considered “full employment,” the stock market is booming, and economic growth has been steady if not robust.
But the weaker argument — and one that Herrera Beutler disappointingly has echoed — is the notion that tax cuts will spur the economy. The congresswoman has suggested that the reduction in tax revenue to the federal government would be more than offset by an increase in economic activity that would result in increased tax revenue. In other words, the tax cuts would pay for themselves.
For three decades, this has been a Republican mantra, but it represents an absurd fallacy that is easily disproved if not easily done away with.