It would appear Mitch McConnell, and the larger congress, just lit the fuse on “the big ugly“. Winter is coming.
• President Trump has requested all Republican Senators to attend a White House luncheon, held entirely in their honor, tomorrow. • President Trump has also announced a MAGA rally to be held in Youngstown Ohio, next week. • Not coincidentally this rally announcement comes on the same day Ohio governor John Kasich writes an op-ed in the New York Times gleefully celebrating the defeat of the senate healthcare reform and ObamaCare repeal. • HHS Secretary Tom Price is NOT HAPPY.
Oh yeah, the Big Ugly is coming. President Trump is not a politician.
The failure of congress to pass Obamacare reform means the tax reform agenda for the middle class is now far less likely. The UniParty Congress know this. The UniParty Congress is doing the bidding of the lobbyists.
The escalating costs of ObamaCare, specifically because of the Medicaid expansion, means increased tax revenues are needed to pay for the program. John Kasich, and his crew of like-minded governors (there are eleven) demand their state get more federal dollars. This means more income tax revenues are needed. This means no middle-class tax relief.
The average American worker on the individual healthcare market are now stuck with increasing premium costs for their insurance plans, AND we get the double whammy because we must pay higher taxes to subsidize those who need medicaid.
Congress knows this.
The UniParty politicians are not blind to the consequences of doing nothing.
The lobbyists are happy because tax reform wasn’t targeted to aid the upper income or corporations. Factually the White House tax reform proposal had loopholes and deductions eliminated for the wealthier, which means their payments would have gone up.
Additionally, the majority of global corporations who would benefit from lowered U.S. corporate tax rates already went through inversion (see Apple in Ireland); they are no longer domiciled in the U.S. Tax reductions wouldn’t necessarily benefit them. This group is part of the funding mechanism for lobbyists.
So who loses out without tax reform? Small companies, individual corporations (S-Corps), U.S. based companies that are economically patriotic, and…. yes, once again, the American middle-class worker.
See how that works?
Notice the U.S.-based institutional class who fund the lobbyist created legislation, that’s the multinational corporations and banks, are inoculated from the downside of both failures. Obamacare reform failure and tax reform failure mean nothing to the interests of those who fund the DC lobbying machine.
Go back and remind yourself who were the beneficiaries of U.S. fiscal policy in the last three decades. Remember the discussion of the New Economic Dimension? What you see within that reminder is those entities suffer no financial impact from congressional failure. ie. those entities have a vested interest in that failure.
See how that works?
President Trump’s entire ‘America-First’ economic platform is built around a series of sequential steps which uplift the middle class by reversing three decades of erosion. He does this by shifting fiscal and economic policy to support the middle-class (trade, regulation, banking reform, tax reform etc.).
The multinationals (including globalist U.S. entities) benefit from the former policy which aided Wall Street and the multinational corporate and multinational banking system. So anything they can do to disrupt the Trump agenda actually increases their own value.
There are trillions of dollars at stake.
President Trump still has a way to work around congress by targeting trade deals like NAFTA and bilateral trade deals with S.E.A.N, China, the U.K and EU. To diminish and constrict the value of globalism. That diminishment will eventually lead to less lobbying because there’s less reason, less possible benefit, to the lobbying itself.
At the end of that trade renegotiation process there will be less legislative opposition because the underlying financial benefits to lobbyists will be removed. However, that trade process is years long (it begins in August with NAFTA). In the interim, the economic engine is not moving very fast.
That’s why it appears Trump is now willing to pull the trigger on “The Big Ugly”:
Secretary Price: “The status quo is not acceptable or sustainable”
Health and Human Services Secretary Tom Price, M.D. issued the following statement regarding ongoing efforts to provide Americans with relief from Obamacare:
“Obamacare is flawed, failing, and harming the American people with higher costs and fewer healthcare choices. The Trump Administration is, and always will be, focused on putting patients, families, and doctors in charge of healthcare.
“The Department of Health and Human Services has already begun providing relief to Americans who are paying more and getting less as a result of Obamacare’s broken promises. We will continue to build upon this progress as Congress debates the best path forward to fix our broken healthcare system.
“The status quo is not acceptable or sustainable. We will work tirelessly to get Washington out of the way, bring down the cost of coverage, expand healthcare choices, and strengthen the safety net for future generations.”
Click here to visit hhs.gov/relief where you can learn more about HHS actions to lower premiums and protect patients. This site highlights the regulatory and administrative actions the Department is taking to relieve the burden of the current healthcare law and support a patient-centered healthcare system. (LINK)