Author Topic: Nightmare Scenario For The GOP: A $2 Trillion Funding "Hole"  (Read 1214 times)

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Offline HAPPY2BME

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Nightmare Scenario For The GOP: A $2 Trillion Funding "Hole"
« on: March 26, 2017, 08:19:43 PM »
This Is The Nightmare Scenario For The GOP: A $2 Trillion Funding "Hole"

When one strips away the partisan rhetoric and posturing, the practical impact of Friday's GOP failure to repeal Obamacare has a specific monetary impact: approximately $1 trillion.

Since the ObamaCare repeal bill would have eliminated most of the 2010 health law’s taxes, this would have lowered by a similar amount the revenue baseline for tax reform. Essentially, with the ObamaCare taxes gone, it would have been easier to pay for lowering tax rates. Now, if Republicans want to eliminate the ObamaCare taxes as part of tax reform and ensure the bill does not add to the deficit - which they need to do to assure Trump's reform process continues under Reconciliation, avoiding the need for 60 votes in the Senate - they will have to raise almost $1 trillion in revenue.

But wait, there's more.

While the GOP will be hard pressed to find $1 trilion in offsetting savings or revenues, their headaches could be doubled if the proposed border adjustment tax fails to pass next. As a reminder, BAT is expected to generate as much as $1.18 trillion in offsetting revenues; should BAT no be DOA, that's another $1.2 trillion in potential government revenues that is gone. 



Summarizing the above, as a result of Friday's failure, the tax revenue "hole" Republicans have to fill now is at least $1 trillion bigger, and perhaps as large as $2.2 trillion.

But wait, there's even more . .

http://www.zerohedge.com/news/2017-03-26/nightmare-scenario-gop-funding-hole-much-2-trillion-bigger

Offline HAPPY2BME

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