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Paul Krugman drops a bomb on Trump’s base — he just saddled you with $2 trillion more in debt

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New York Times columnist Paul Krugman outlined all the reasons why President Donald Trump’s tax cut failed — and how much it’s going to cost American taxpayers.

Krugman pointed out that although the 2017 tax cut is Trump’s only “significant piece of legislation” to date, it only delivered for the nation’s richest.

What’s more, the columnist argued, is that the theory behind the tax cut “has turned out to be a complete bust” that will leave American taxpayers saddled with an additional $2 trillion in debt.

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“The Trumpist theory — which was, I’m sorry to say, endorsed by conservative economists who should have known better — was that there was a huge pile of money sitting outside the U.S. that companies would bring back and invest productively if given the incentive of lower tax rates,” Krugman wrote.

“But that pile of money,” he continued, “was an accounting fiction.”

What’s more: “the tax cut didn’t give corporations an incentive to build new factories and so on; all it did was induce them to shift their tax-avoidance strategies.”

Krugman noted that Brad Setser of the Council on Foreign Relations pointed out the source of that disparity: upon first glance, it appears that American companies make huge profits via overseas subsidiaries, but a deeper inspection reveals that “the bulk of these reported profits are in a handful of small countries with low or zero tax rates, like Bermuda, Luxembourg and Ireland.”

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“The companies obviously aren’t earning huge profits in these tiny economies,” he wrote. “they’re just using accounting gimmicks to assign profits earned elsewhere to subsidiaries that may have a few factories, but sometimes consist of little more than a small office, or even just a post-office box.”

It’s unsurprising, Krugman concluded, that “the investment boom Trump economists promised has never materialized.”

“Companies didn’t use their tax breaks to invest more,” he noted. “Mainly they used them to buy back their own stock. This in turn, put more money in the hands of investors, which gave the economy a temporary boost — although for 2018 as a whole, one of the biggest drivers of faster growth was, believe it or not, higher government spending.”

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In spite of the large debt figure, Krugman said he’s “not deeply worried” at the looming $2 trillion deficit created by the tax cuts.

“Given low borrowing costs, the costs and risks of federal debt are far less than the usual suspects — again, the same people who cheered on the Trump tax cut — have claimed,” he mused.

“But think of all the other things we could have done with $2 trillion — all the infrastructure we could have built and repaired, all the people who could have been given essential health care,” Krugman wrote. “What a colossal, corrupt waste.”

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US military had to bomb our own base in Syria because of Trump’s mistakes — and one Republican is furious

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President Donald Trump's decision to withdraw in Syria in less than 24 hours put American troops at risk as they were being fired on by Turkey. However, according to the Wall Street Journal , the military was also forced to bomb our own military base.

Republican Rep. Adam Kinzinger, who has been critical of Trump's decisions in the past months, pointed out the factoid in a tweet Wednesday evening, asking, "Is this the America you grew up believing in?"

https://twitter.com/RepKinzinger/status/1184650759377473536

"On Wednesday, the U.S. military said two F-15E jet fighters carried out an airstrike to destroy an ammunition-storage facility, latrines, tents and other parts of the Syria headquarters of the American campaign to destroy Islamic State after pulling its forces from the base," reported The Journal.

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Maddow outlines how Giuliani and his arrested pals seem to be leading back to a corrupt Ukrainian oligarch

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MSNBC host Rachel Maddow detailed the way that President Donald Trump's personal lawyer, Rudy Giuliani, and his two recently-arrested business associates are now linked to an oligarch in Ukraine.

In an NBC News report earlier Wednesday, it was revealed that Giuliani's associates, Lev Parnas and Igor Fruman, were doing work with oligarch Dmytro Firtash.

The report revealed that Firtash was involved in getting partners for an oil and gas company while also helping with the effort to dig up dirt on former Vice President Joe Biden.

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Trump accused of working to ‘obstruct his own impeachment’ by congressional attorneys: report

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On Wednesday, Politico reported that lawyers working for the House of Representatives issued a blistering court filing accusing President Donald Trump, among other things, of trying to use the power of his office to "obstruct his own impeachment."

The filing, part of the House Judiciary Committee's attempt to seek testimony from ex-White House Counsel Don McGahn, cites the White House's repeated efforts to block current and former Trump administration officials from testifying — and even some allies of Trump who have never held any position in his government.

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