Koch Brothers Memo: Ignore the Deficit Explosion

The Intercept has obtained an internal Koch brothers memo and reports: 

The Intercept obtained a messaging memo from the Koch brothers’ network on how to sell tax reform legislation. The memo went
out to members of the network of likeminded Republican donors, which includes dozens of wealthy investors and business executives.

The talking points suggest that backers of the tax cuts feel vulnerable to the charge that the tax cuts will jack up the deficit.

“In case it is helpful to you in your own discussions with lawmakers and others,” the memo begins, “below is a list of talking points that address some of the key hurdles to passing tax reform this year.”

The memo goes on to encourage lawmakers to avoid becoming distracted by deficit concerns when passing the GOP tax reform package (emphasis added):

“Avoid getting distracted on revenue neutrality; economic growth increases revenues. Some Republican Senators have expressed concern over supporting comprehensive tax reform that adds to short-term deficits. Though we fully appreciate those concerns, the long-term economic growth that would result from the first comprehensive tax reform in a generation would help to offset short-term deficits over time. That was the result of the Kennedy and Reagan tax reforms—there’s no reason this time will be any different.”

The current tax cut plan under negotiation would cost as much as $2 trillion over the next 10 years.

The messaging document claims that any shortfall created by the tax package will be filled by tax revenue generated by economic growth sparked by the reduction in rates.

Bottom line the Koch brothers are promoting full out supply-sider nonsense.

I discussed this bog government scam here: Laughing at the Laffer Curve: The Trump Tax Reform Con.

  -RW