There are many ways to describe the GOP policy of running up the debt and then using it to justify draconian cuts in public spending. Bruce Bartlett called the Two-Santa Theory. I prefer a more direct and honest description: Burning down the country to collect the insurance money.
It’s a really simple scheme when you look at it. You run up the debt via tax cuts targeted at your donors. You privatize everything, transferring it to the same donors who got bags of cash in the form of tax giveaways and subsidies. You then loot the nation’s insurance fund, Social Security, Medicare and Medicaid to undo the damage of the tax cuts.
Here he is just ceasing to collect payroll taxes, which directly fund social security. This is being done without any cuts to spending or new taxes to offset them; simply to decrease the funds social security will have available to meet future obligations. He knows damn well that most tax payers will not be able to pay six months or a year of deferred payroll taxes so he is counting on the next administration to have to pay for this with cuts when the bill comes due.
This is burning the insurance money to keep the country burning.
“Yet even as he tried to explain in a pair of Twitter posts that showing “losses for tax purposes” was considered a “sport” among real estate developers like himself, the president also said The Times’s account was “a highly inaccurate Fake News hit job!””
His defense is that he is a tax cheat. He is saying the NY Times story is inaccurate because the times thinks his reported losses are losses and not fraud.
“The numbers show that in 1985, Mr. Trump reported losses of $46.1 million from his core businesses — largely casinos, hotels and retail space in apartment buildings. They continued to lose money every year, totaling $1.17 billion in losses for the decade.”
I’m not a lawyer and do not have any special information here but one thing to keep in mind, a billion in declared losses may not be a billion in actual losses. He may be overstating or just inventing losses as a way to conceal profits. That would be tax fraud. And a 30 year history of felony tax fraud seems like a really good reason to block anyone from being able to look at his taxes. If they should become public, it would open him up possible fines and penalties, perhaps exceeding his ability to pay.
Conservative proponents of supply-side tax cuts remain stuck in the 1980s. Tax cuts worked then, so tax cuts will work again to stimulate growth. That syllogism defies logic, given how the economy and workforce have changed in 37 years since the first Reagan tax cut.