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GOP Tax Plan - Continued Balkanization Is Self-Fulfilling
by John Jazwiec

The GOP - why it took 8 months to put together such a bare-bones plan is beyond me - has outlined a tax reform plan that (a) doesn't help the middle-class as advertised, (b) punishes states that pay high state and local taxes and (c) is a tax plan for the rich.

More concerning, is that while establishment Republicans may support the plan (a dying species), the GOP Freedom Caucus - sans inflating economic growth rates that will not pass the snicker-test - will not vote for it, due to the reckless deficit effect inherent in it. 

Screen Shot 2017-09-28 at 10.34.44 AM

Where the blue line and the black line intersect is today. Moving upwards and to the right, in black, is the future based on the current laws. Call that the fault of Obama from a GOP perspective. The blue line is the enhanced deficit impact of the proposed tax reform. Deficit hawks and their voters expected to see the black line going down. How can these same deficit hawks and their voters "like" the line getting worse?

Historically, you would have to go back to the end of World War II, to see deficits => than our national GDP.

The balkanization of the GOP is only getting worse. Besides establishment Republicans and the Freedom Caucus, you now have the Roy Moore phenomena. There will be more Roy Moore's primary-ing establishment Republicans. Their appeal and potential success will be fed by the GOP continuing to not getting anything done. 

Despite multiple attempts, and aspirational wishes for the future, the GOP has not been able to repeal and replace Obamacare. For the reasons explained above, I don't think they are going to get tax reform done either. 

Which is why GOP balkanization is likely to be self-fulfilling. 

The good news for the GOP though, is that despite such a GOP mess, I don't see any Democratic strategy that offers any consistent alternative yet.



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From athletic scholar and satirist to computer programmer to CEO success, John Jazwiec brings a unique and often eccentric perspective to business and supply chain challenges. Exploring how they can be solved through the leadership and communication insights found in untraditional sources. This CEO blog demonstrates how business insights from books on history to the music of Linkin Park can help challenge and redefine “successful leadership.” Read Jazwiec’s Profile >>

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