Category: Politics

Trump’s Same ‘Ol GOP Tax Plan

Neil Irwin at the NYT compared the Clinton and Trump tax plans. Hillary’s raises taxes on the rich, and adds ~$1.1 Trillion to federal tax revenues over the next 10 years. The Pant Load’s plan is under revision (again), but, his old plan reduced revenues by ~$9.5 Trillion over the same period, and while his new plan will probably cost less, it will still create red ink.

Jared Bernstein had a few points which you might not have picked up on:

…the plan is pure, old-fashioned, supply-side, trickle-down orthodoxy. How that squares with Trump’s play for disaffected working class voters hurt by globalization is left as an exercise for the reader.

Bernstein’s best point is about the “pass-through” income loophole Trump creates. His new plan sets the top income tax rate at 33% but creates “a much lower rate than 33% for a substantial number of very-high-income households by allowing people to pay a new low rate of 15 percent on “pass-through” income (business income claimed on individual tax returns). According to the Tax Foundation, pass-through businesses now earn more net income than traditional “C” corporations (like GE or Ford). So of course, Republicans want to lower their tax rates. More from Bernstein:

More than two-thirds of all pass-through business income flows to the top 1 percent of tax filers.

And it will probably get worse: When you can pay a lower rate on a particular type of income, you will visit with a tax lawyer and set up a Limited Liability Corporation (LLC). Then off you go to the boss and say, as Bernstein points out:

“I’m no longer Joe Paycheck, I’m Joe Paycheck, LLC. Pay me the same salary but call it a consultant’s fee for services provided by my limited liability corporation”. Joe then passes that income through from the business to the personal side of the tax code and pays 15% on it.

Where Joe might have formerly paid as much as 39.5%. This will allow the hedge fund and private equity guys to move from paying a mere 24% that they pay on earnings today to 15%, if Trump gets the GOP-led Congress to go along.

Trump also wants to repeal the estate tax. Like the prior “improvement”, this one will benefit the Donald personally. The estate size that must pay estate taxes today is $10.9 million. So if a couple has an estate smaller than that, they pay no estate tax. How many are paying it? Only 0.2% of estates (that’s 2 in a 1,000) pay it today.

So none of these are the “small family businesses” and “family farms” that Republicans whine about. If you have the better part of $11 million in assets, you ain’t that small.

A minute more on the LLC: LLCs were created by Congress to give owners of businesses the ability to avoid “double taxation” on taxable income they receive from their businesses. The theory is, business income from a C corporation is taxed twice: once at the corporate level and again at the personal level when dividends are paid to owners. Businessmen could have avoided double taxation by simply operating their businesses as proprietorships or general partnerships. But then they would lose the limited liability protection from creditors that C corporations and limited partnerships provide.

So Congress created the LLC hybrid to enable businessmen to have their limited liability cake and eat it too. But you don’t get the same deal: Wrongo and Ms. Right have paid into Social Security for over a combined one hundred years. Along the way, we could not deduct our yearly SS contributions, which means we paid income taxes on the income that we used to make our contributions. Now that we are receiving Social Security payments, we pay federal and state income taxes again on the payments we receive.

If we use some of our Social Security income to buy gas, we are taxed again in federal and state motor fuel taxes. Same when we buy goods and services, and pay state sales taxes.

Double, triple and quadruple taxation are pervasive throughout our economy, but it’s only the average Joes that pay them. So no tears for Mr. Trump, the Kochs and “job creators” who say they need a break from double taxation.

Or maybe ask your Congressperson for a similar break for you.

Trump is cutting taxes for the rich. If you think he is gonna help the middle class, he is hoodwinking you. You may see a few pennies in tax cuts while the rich take in extra millions to buy bigger, better penthouse apartments.

Meanwhile, the roads and bridges that you use to get to work will crumble even further, because he’s planning to give away the store. Paying your taxes is extremely important and new rules will mean a new way of getting this done, so before you worry, take a look at a tax planning Winnipeg lawyer or one in your state to discuss on how you can plan out your taxes better and keep up to date with any changes.

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Why is AARP Funding ALEC?

Yes, you heard that correctly, AARP, the insurance company that styles itself as a champion for senior citizens has become a corporate sponsor of ALEC.

Let’s remember what ALEC is: The name stands for the American Legislative Exchange Council. It operates by offering model legislation to its members, who typically are big corporations and conservative Republican state legislators. It was initially funded by the Koch Brothers.

Its legislative ideas cover practically every area of state government, from education and health to energy, environment and tax policy. State legislators introduce the ALEC-drafted bills in their home states, allowing ALEC’s legislative concepts to metastasize in almost identical laws in statehouses across the country.

ALEC has pushed for:

  • The repeal of the Affordable Care Act, which has saved Medicare enrollees millions of dollars by closing the Medicare drug benefit “doughnut hole.”
  • It opposed Medicaid expansion under Obamacare.
  • It has targeted public pensions, pushing to cap benefits and shift workers toward defined contribution plans, which shifts market risk onto the shoulders of individual workers.
  • It advocates for privatizing at least a portion of your Social Security taxes.

Governing, a publication for state and local policymakers, says that roughly 1,000 bills based on ALEC language are introduced in an average year, with about 20% getting enacted.

Since 2011, ALEC suffered a backlash, as a number of its corporate sponsors, (more than 100 corporations), pulled their support including Ford, Google, Facebook, and Microsoft, among many others. Eric Schmidt of Google told NPR after deciding to leave ALEC:

I think the consensus within the company was that that was some sort of mistake and so we’re trying to not do that in the future.

So why would AARP sign on as a corporate sponsor of ALEC? From the LA Times: (emphasis by the Wrongologist)

Among the policies that have been promoted by ALEC are several that arguably undermine the interests of seniors and retirees, AARP’s core constituency.

Despite that, the Center for Media and Democracy has learned that AARP joined ALEC, and that it is a named sponsor of the ALEC annual meeting that took place in Indianapolis, Indiana from July 27-29, 2016.

AARP didn’t hide its new financial relationship with ALEC, at least to ALEC legislators. The AARP logo appears in the conference brochure and attendees at the conference were each provided with an AARP branded portable USB power pack as they registered for the event.

Here is AARP’s corporate response when challenged about their new ALEC relationship: (emphasis by the Wrongologist)

In 2016, AARP paid a fee to ALEC, which gave us an opportunity to engage with state legislators and advance our members’ priorities from a position of strength at ALEC’s annual meeting.

AARP’s engagement with ALEC is NOT an endorsement of the organization’s policies either past or present. As is the case with other groups AARP engages with, there are many issues and areas where we strongly disagree with ALEC’s position or approach.

So, who in AARP’s marketing department convinced the top brass that they need to “pay” to meet with state legislators? And wouldn’t AARP members be very interested in what AARP’s management asked of state legislators?

From the LA Times:

Yet in arguing that a relationship with ALEC is necessary to “engage” with the legislators affiliated with the group, AARP is taking a different approach from the dozens of corporations that have abandoned ALEC.

More from the LA Times:

AARP…is on dangerous ground. One can’t change an organization like ALEC from the inside, and one can’t hang around its annual meeting as a sponsor and avoid at least some association with its policies.

ALEC is a legislation mill for large corporate interests. Corporations fund almost all of ALEC’s operations. They pay for a seat on ALEC task forces where corporate lobbyists and special interest reps meet with elected officials to approve “model” bills.

What could go wrong now that AARP is paying to play?

If you are a member of AARP, you can express your views on the hook-up with ALEC on an AARP message board here.

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Capitalism, It’s Not You, It’s Me

There is a meme that has gone global since the early days of the Occupy movement. Here it is as a wall graffiti from Greece that uses the same meme we first saw in NYC in 2011:

Capitalism Lotek

Just kidding capitalism, it really is you.

The artist is a Greek who styles himself as Lotek. The name Lotek is derived from the short story (and later, a film) by William Gibson called Johnny Mnemonic. The story is set in 2021, in a world ruled by corporations. An anti-authoritarian gang that are called Lo-Teks, fight the power. They are in fact not low tech at all, but are high tech hackers. Sound familiar?

Greece is surely a place at war with neoliberalism and free market capitalism. So is it also time for us to reconsider capitalism?

Consider this from Mark Blyth in Foreign Affairs:

An inherent tension exists between capitalism and democratic politics since capitalism allocates resources through markets, whereas democracy allocates power through voting.

The compromises both systems have struck with each other over recent history shapes our contemporary political and economic world. Blyth observes:

  • In the three decades that followed World War II, democracy set the rules, taming markets with the establishment of protective labor laws, restrictive financial regulations, and expanded welfare systems.
  • Starting in the 1970s, a globalized, deregulated capitalism, unconstrained by national borders, began to push back.

And today, capital markets and capitalists are setting the rules, and democratic governments follow them.

Some background: Cutting taxes in the 1980s caused government revenues to fall. Deficits widened, and interest rates rose as those deficits became harder to finance. At the same time, conservative govern­ments, especially in the UK and the US, dismantled the regulations that had reined in the excesses of the financial service industry since the 1940s.

The financial industry began to grow unchecked, and as it expanded, investors sought safe assets that were highly liquid and provided good returns: the debt of developed countries.

This allowed governments to plug their deficits and spend more, all without raising taxes.

But the shift to financing the state through debt came at a cost. Since WW II, taxes on labor and capital had provided the foundation of postwar state spending. But, as govern­ments began to rely more on debt, the tax-based states of the postwar era became the debt-based states of today.

This transformation had pro­found political consequences. The increase in government debt has allowed capitalists to override the preferences of citizens:

  • Bond-market investors can now exercise an effective veto on policies they don’t like by demanding higher interest rates when they replace old debt with new debt.
  • Investors can use courts to override the ability of states to default on their debts, as happened recently in Argentina
  • They can shut down an entire country’s payment system if that country votes against the interests of creditors, as happened in Greece in 2015.
  • Citizens United dictates who runs for office in the US, and in many cases, who wins.

Now that the financial industry has become more powerful than the people, should we blindly follow capitalism’s meme as the only way forward?

Free-market rhetoric hides the dependence of corporate profits on conditions provided for, and guaranteed by, governments. For example:

  • Our financial institutions insist that they should be free of meddlesome regulations while they depend on continuing access to cheap credit from the Federal Reserve.
  • Our pharmaceutical firms have resisted any government limits on their price-setting ability at the same time that they rely on government grants of monopolies through our patent system.

To use a sporting metaphor, it’s as if the best football team purchased not only the best coaches and facilities, but also bought the referees and the journalists as well. Those responsible for judging economic competition have lost all authority, which leaves the dream of ‘meritocracy’ or a ‘level playing field’ in tatters.

In our country, the divide between the business oligarchs, the political class and “the people” increasingly appears unbridgeable, marked by hostility and deep distrust. When people are told for a generation that government mustn’t make decisions that interfere with free markets, it is inevitable that people will lose faith in democratic governance, and in government’s capacity to help them solve their problems.

Capitalism in its current form no longer works for the people. We have seen a reaction in the start of movements by Occupy, by Bernie, and by others in Europe.

Remember that the greatest prosperity in living memory in the US came during the brief social democratic moment, in the 1950s and 1960s, when the constraints on business were the greatest.

More democracy and more economic justice are the necessary foundations for the path to a more prosperous, and sustainable economy.

A reformed capitalism must be a part of what emerges from that fight.

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Sunday Cartoon Blogging – July 31, 2016

Happy post-conventions Sunday! Now settle back and watch the hair pulling between the Pant Suit and the Pant Load for the next 100 days or so.

Here is an apocalyptic story that you didn’t see while watching the war of tweets between Bernie, Hillary and Donald. First a heatwave hit Siberia. Then came the anthrax:  (emphasis by the Wrongologist)

Temperatures have soared in western Russia’s Yamal tundra this summer. Across Siberia, some provinces warmed an additional 10 degrees Fahrenheit beyond normal. In the fields, large bubbles of vegetation appeared above the melting permafrost — strange pockets of methane or, more likely, water. Record fires blazed through dry Russian grassland. In one of the more unusual symptoms of unseasonable warmth, long-dormant bacteria appear to be active. For the first time since 1941, anthrax struck western Siberia.

Ok, so only 13 Siberian nomads have gotten anthrax so far, and the science is unsettled on tundra warming.

Here are a few cartoons to take your minds off the living hell of the election season, or alternatively, taking it off of anthrax and the Zika virus.

Hillary’s nomination was greeted by change on the home front:

COW Glass Ceiling

Bernie mansplained politics to a supporter in Philly:

COW Bernie Explains

Trump’s negotiating style puzzles Putin:

COW Donald Unfaithful

Boris and Natasha get a new gig:

COW Boris and Natasha

The Dems had a bit of buyer’s remorse:

COW Dems Rationale

The big fear with Trump voters between now and November:

COW Big Fear

 

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The Pant Suit vs. The Pant Load – Budget Edition

Now that both presidential conventions are history, the real discussion about the merits of the candidates and their programs begins. The first question to answer is: What are the costs of the promises made to America by Donald Trump and Hillary Clinton?

Both candidates have made political promises that, if implemented, have both costs and benefits to the nation. While the analysis of benefits may be difficult to assess, the costs are not.

The Committee for a Responsible Budget (CRB) has issued a report, “Promises and Price Tags: A Fiscal Guide to the 2016 Election” that estimates how our national debt would rise under the programs of both presidential aspirants. It shows that gross debt held by the public would rise from about $19 trillion today to $23.9 trillion by 2026 under Hillary Clinton’s plan and to $35.2 trillion under Donald Trump’s plan.

They based the estimates on the public positions taken by each campaign as of June 24, 2016. They also generated a low, central, and high cost estimate of the fiscal implications of Trump’s and Clinton’s proposals.

We need to stop and say that our gross debt will rise no matter who is elected, since under existing law, gross debt is projected to rise from about $19 trillion today to about $29.1 trillion by 2026, about a 50% increase. With that in mind, here is CRB’s summary of the impacts of both candidate’s plans on the national debt:

Debt Under Candidates Proposals

Donald Trump has expressed concern about the dangers of our current $19 trillion debt. Yet his plan would increase that number significantly. Under CRB’s central estimate of Trump’s plan, gross debt would more than double from $19 trillion today to $39.5 trillion by 2026.

The increase in gross debt under Clinton’s plan would be smaller but still significant. Under the central estimate of Clinton’s plan, gross debt would rise by more than 50%, from $19 trillion today to $29.6 trillion by 2026, in line with the current law. So, her promise to pay for new spending seems to be true.

Digging a little deeper, here is CRB’s breakdown of both candidates’ plans by revenue, costs and spending. Most of Hillary Clinton’s increased costs come from spending in non-health, non-retirement programs:

  • She would spend $350 billion more on college education, $300 billion more on infrastructure, another $300 billion on paid family leave, and nearly $500 billion on a variety of other initiatives.
  • Clinton would also make several health-related changes that would cost about $150 billion.
  • To offset these costs, Clinton proposes a variety of tax increases – mostly on higher earners and businesses – totaling $1.25 trillion.

The largest share of Trump’s deficit impact comes from his proposed individual and business tax reforms, which would reduce revenue by about $9.25 trillion:

  • His plan to reform the veteran’s affairs system and increase veterans’ access to private doctors would cost about $500 billion.
  • And his plans to repeal and replace the Affordable Care Act and reduce illegal immigration would cost about $50 billion each.

So, what happens to the total amount of our national debt?

Donald Trump wants to dramatically reduce taxes for most Americans while maintaining spending relatively near its current levels. As a result, under CRB’s central estimate, he would add $11.5 trillion to the debt through 2026.

Hillary Clinton wants to increase both spending and taxes, adding about $250 billion to the debt over 10 years under CRB’s central estimate. Under their low cost estimate, Clinton’s plan would reduce 10-year deficits by $150 billion.

Increases in debt are not always a bad thing, particularly in times of economic slack, if the debt accumulation is driven by stimulative fiscal policy. But a 40 percentage point of debt to GDP increase, from 87% of GDP to 127% of GDP, seems unlikely to give us a positive outcome.

But, if we elect The Pant Load, that’s what we will get. Trump said to the WaPo in May:

I am the king of debt. I do love debt. I love debt. I love playing with it.

This should worry you. Trump went on to say:

Look, I have borrowed, knowing that you can pay back with discounts. And I have done very well…I would borrow, knowing that if the economy crashed, you could make a deal, and if the economy was good, it was good, so, therefore, you can’t lose.

So, Trump would stiff the nation’s creditors. Haven’t we had enough of Republican mis-leadership on the nation’s finances?

Haven’t we had enough of Republican tax cuts for the most comfortable among us at a cost to the least comfortable among us?

Remember that it was the GOP-led Congress that threatened not to raise the debt ceiling in 2011. That led to the Standard & Poors rating agency’s lowering of the US credit rating.

Think carefully about what Trump’s glib plans imply for America.

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Obama’s Convention Speech

The President gave a great speech last night. And it was a clutch performance. For our non-ESPN readers, “clutch” means a top performance when the stakes are high. It was a summation of his time as president, and the presentation of a vision which is left for his successor to achieve. From Nancy LeTourneau:

The expectations were high for President Obama’s speech last night at the Democratic Convention. He had several tasks to accomplish. First of all, he needed to remind us of what we’ve accomplished over the last eight years.

And Obama said:

A lot’s happened over the years. And while this nation has been tested by war and recession and all manner of challenge – I stand before you again tonight, after almost two terms as your President, to tell you I am even more optimistic about the future of America. How could I not be – after all we’ve achieved together?

More from LeTourneau:

Second, he needed to acknowledge that we still have a lot more work to do.

And Obama said:

So tonight, I’m here to tell you that yes, we still have more work to do. More work to do for every American still in need of a good job or a raise, paid leave or a decent retirement; for every child who needs a sturdier ladder out of poverty or a world-class education; for everyone who hasn’t yet felt the progress of these past seven and a half years. We need to keep making our streets safer and our criminal justice system fairer; our homeland more secure, and our world more peaceful and sustainable for the next generation. We’re not done perfecting our union, or living up to our founding creed – that all of us are created equal and free in the eyes of God.

Martin Longman offered some context for Obama’s speech in the history of presidents making speeches at presidential conventions:

We have to go back a long way to find a president who was had the popularity and moral credibility at the end of their second term in office to even have the opportunity to give a speech like Obama delivered…

He offered some perspective:

The last two-term president, George W. Bush, delivered his speech to the 2008 Republican National Convention via satellite…There’s no question, however, that John McCain was not itching to have Bush as his character witness.

Longman reflected on Bill Clinton:

In 2000, the country was still angry about Bill Clinton’s behavior in office…Al Gore not only tried to create distance between himself and the president, but he selected Joe Lieberman as his running mate in large part because Lieberman had been one of Clinton’s harshest critics during l’affaire Lewinsky.

More on other presidents: (brackets and emphasis by the Wrongologist)

In 1988, Ronald Reagan was very popular with Republicans [but he]…staggered to the end of his presidency through the Iran-Contra Scandal…He did give a speech at the convention, and his approval ratings spiked during his last year in office.

Jimmy Carter wasn’t a two-term president, but in 1992 it was a different Georgia Democrat who was selected to give the Keynote Address at the Democratic National Convention: Zell Miller.

Presidents Nixon and Lyndon Johnson had no credibility left when the 1976 and 1968 conventions rolled around.

Eisenhower…did address the 1960 Republican National Convention in Chicago, but he didn’t bother to mention Richard Nixon’s name.

Reagan came the closest to having been able to give a speech like the one Obama gave last night in which a popular and morally credible president can make an impassioned and enthusiastic speech in favor of their successor and have it be well-received by the media and the people.

A final point from Longman:

It seems like a low bar…, but it’s remarkable that we have to go searching in the mists of time to find a precedent…On character and performance, he has no recent peer.

Obama is the whole package: Words and deeds. No President since FDR has both inspired and led as he has. Even though St. Ronnie could give a good speech, he wasn’t nearly as good, as often, as Obama has been.

The calls by Joe Biden and Mike Bloomberg to independents and middle-of-the-road Republicans to come to Hillary may gain a little traction, depending on her speech tonight. It’s possible, since the display of moral force and basic human decency these past few days is in stark contrast to the fear, hate, and anger in Cleveland.

Wrongo wants Democrats to win in 2016. While Hillary isn’t a perfect candidate, we can’t make perfect the enemy of good, as some of the Bernie people seem to want.

It’s Dump Trump – but after eight years of GOP obstruction, it’s Ditch Mitch, too.

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Focus on the Doughnut

(There will be limited blogging until 7/26, as Wrongo and Ms. Right spend an extended weekend in Philadelphia)

From Vox:

The first night of the Republican National Convention ended dominated by one bizarre question: Was Melania Trump’s convention speech plagiarized from a Michelle Obama convention speech from 2008?

OK, she probably would have gotten an “A” from Trump University, but pulleez, people! This isn’t a big deal.

Melania Trump is not a major figure in the GOP, and plagiarism of parts of a speech doesn’t have the same connotation in political speeches that it does in academia. So she stole a few lines from a Michelle Obama speech. So what? She isn’t running for anything, and the statements were largely clichĂ©s. If you are hoping to show the incompetence and dishonesty of the Trump campaign, there are bigger more important examples.

Why should anyone care about this? If Melania Trump has one interview with the press, and says she liked the ideas in Michelle Obama’s speech, this is over. Why is the media so focused on this? Why are they not focusing on the things of substance that were said in Cleveland yesterday, things that are legitimately terrifying because they could actually become policy?

They could have focused on Rep. Steve King (R-IA) going full white supremacist.

Or, Rudy Giuliani going off about the imminent (?) terrorist threat facing America, saying:

You know who you are, and we are coming to get you.

Or, the extended poutrage about “The Battle of Benghazi”.

Or, convention speaker actor Antonio Sabato Jr. who questioned Obama’s religion, saying the president is “absolutely” a Muslim.

Or, if they were truly interested, they could analyze the GOP 2016 Platform, its most socially conservative platform ever.

But our media wants to keep it simple: Everything else spoken from the stage last night requires explaining something complex, like matters of policy. That’s hard work for the reporters, and maybe for the people to understand. But when a candidate for first lady steals parts of the opposing party’s speech, that’s easy to report and to understand.

It appears that the media is incapable of making the sort of deep, factual critique of policy that we need from them. Wrongo can be annoyed about it, but that’s how it is.

The press should focus on the doughnut, and not the hole, particularly when the hole isn’t a policy speech.

OTOH, when a goofy low-stakes gaffe like this one gets the media saying negative things about Trump, we’ll just have to go with it.

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Make America Safe?

Wrongo has tried hard not to write again about the murderous and divisive actions taken against police over the past few weeks, but it seems impossible. From the NYT:

The twin attacks — three officers dead Sunday in Baton Rouge, five killed on July 7 in Dallas, along with at least 12 injured over all — have set off a period of fear, anguish and confusion among the nation’s 900,000 state and local law enforcement officers. Even the most hardened veterans call this one of the most charged moments of policing they have experienced.

Never one to let bad news pass without blaming, the Pant Suit criticized President Obama’s response:

FireShot Screen Capture #104 - Trump

Monday kicked off the GOP Convention. The theme for the first day is “Make America Safe Again”. In case you thought that despite the recent spate of cop killings, you live in one of the safest places on earth, the Trump team is out to scare you up good.

The central theme of Trump’s campaign is that he plans to protect you: From scary Islamic terrorists, from scary immigrants who steal jobs, rape and pillage, and from scary black men with guns.

This resonates with many Republicans who are in the grip of overpowering nostalgia for the1950’s. Republicans see this as a time of stable marriages, respect for authority and economic dynamism. They are not alone: Democrats see it as a time when most men could leave high school and walk into a well-paid job, with pension and health-care benefits, which would allow them to support a family and retire comfortably.

There was much to like about this era of 25â‚” gallons of gas, sport coats and cars with tail fins, but it is far from the whole story. It forgets the specter of nuclear annihilation that was ever-present. It forgets that women had little chance of a career beyond the typists’ pool, or that society forced African-Americans to the back of the bus.

Feminism, the civil-rights movement and economic progress in other countries swung a wrecking-ball at the society of the 1950s. But, to regret its collapse, as many Tea Partiers and Republicans do, is also to wish those improvements had never happened, which is absurd. Life was NOT good for the working person in the 1930s and 1940s. Even in the halcyon days of the 1950s -1970s, life was not good for women, people of color, gay people, and others.

Republicans see our politics and our culture decaying, so we see the sharpening Trump “law and order” rhetoric, and the success of the Tea Party in setting our national political agenda.

An alternative view to Trump’s is that Obama’s eulogy for five Dallas police officers a week ago was an eloquent plea to Americans to acquire “a new heart” – a new empathy toward others across the racial divide. And rarely has a president talked so bluntly about the limits of his ability to bring about the changes he seeks. Mr. Obama:

It is as if the deepest fault lines of our democracy have suddenly been exposed, perhaps even widened…Faced with this violence, we wonder if the divides of race in America can ever be bridged…We must reject such despair…I’ve seen how inadequate words can be in bringing about lasting change. I’ve seen how inadequate my own words have been…I confess that sometimes I, too, experience doubt.

In an era of partisan polarization, the problem isn’t merely a deficit of leaders capable of binding us together; it’s a shortage of citizens willing to listen. According to the Pew Research Center, only 14% of Republicans approve of Obama’s conduct, compared with 80% of Democrats. That’s a record high in polarization – except that the previous record held by George W. Bush, who was supported by only 23% of Democrats. Trump is exploiting that.

When we zoom out from the “Make America Safe Again” meme, we remain in a competition between divergent views. We will not even start on the road to consensus until two conditions are met:

  • Our solutions strive for the preservation of a value called “the greater good”.
  • Our solutions rely on the preservation of a value called “in good faith”.

We have never changed ethics by legislation, although we can impact behavior.  What we have to change is whether or not we as a society will accept the greater good and good faith as inextricable parts of our society.

But as long as there are those among us who can defend the rights of people to use a weapon of war to kill policemen and children, or people who threaten the careers of the elected representatives who stand up to them, we will be seeing this happen again and again, and we’ll be stuck asking the same questions over and over.

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How Not to Cut the Deficit

Congress returned from the Independence Day break on Monday. They will leave again on Friday, and won’t return until after Labor Day. From The Hill:

Congress is poised to leave Washington…without passing funding to combat the Zika virus or completing work on spending bills to avoid a government shutdown.

One bill that might get passed is the re-authorization for Federal Aviation Administration programs that expire on Friday. Since Congress likes to fly, most think they will pass an extension that will last through September 2017.

If you’ve taken a flight this summer, you’ve likely been tied up in long TSA security lines. But you may not have focused on the real reason: Funding for the TSA has been sliced by 8.5% over the past five years, leading to a 5.5% drop in the number of screeners.

Yet, in the same period, the number of air travelers has increased by more than 15%. And those business wizards in Congress should be forced to tell the rest of us how a labor-intensive business can successfully process increasing numbers of customers with a smaller work force.

Steven Rattner in the NYT:

This year, discretionary spending — which encompasses airport security, infrastructure, education, research and development and much more — will be lower than it was in 2005. (Adjusted for inflation.

The discretionary portion of the federal budget, including education, research, infrastructure and other programs, has been falling, while spending on mandatory programs (including Social Security, Medicare and Medicaid) has been going up. Rattner reports that total government spending is up by 23% since 2005, while mandatory spending is up 45% in the same period, and discretionary spending is down 3%.

Here are some examples:

  • Since 2003, the National Institutes of Health (NIH), have seen their funding fall by 23%, forcing an 8% reduction in grants to researchers even as grant applications were rising by 50%.
  • In the past 10 years, spending on all education has fallen by 11% percent.
  • Since 2010, the IRS’s budget has been slashed by about 18%, even as the IRS was given new duties in connection with the passage of the Affordable Care Act. The result: The enforcement staff has shrunk by 23%, leading to a similar reduction in the number of audits. Fewer audits have meant additional uncollected taxes, estimated at $14 billion over the past two years. And almost a million pieces of unanswered correspondence from taxpayers need responses.
  • The EPA’s budget has been cut by an enormous 27% — about $3 billion since 2010. As a result, the agency had to eliminate more than 2,000 workers, bringing its staffing to the lowest level since 1989.

Last fall, a bi-partisan group added $80 billion in new discretionary spending over the next two years. Then, Congress doubled the cost of the deal by giving more money to the military and to Medicare, taking the deal to $154 billion while paying for about half the tab with legitimate savings.

A few months later, Congress retroactively extended a raft of expired tax provisions — without even a pretense of paying for them.

As a result of Congress’s fudging, the projected 2017 deficit rose to $561 billion, from the $416 billion that was estimated just six months earlier.

We shouldn’t expect that Congress will make any big decisions involving taxes or spending in an election year. But at the least Republicans need to stop using the appropriations tool to take aim at agencies such as the IRS and the EPA, whose missions they reject.

In the case of the TSA, Republicans want it privatized. Not because privatizing will save any money or make the TSA more effective, but to help a few of their corporate sponsors have another feed at the government trough. Republicans want to see schools, prisons, and the postal service privatized. The people who are employed by these private, profit-making companies will not be paid as well, and will not receive benefits they have today.

This is what you get when you believe that government should be “run like a business.” Certainly, we need a more efficient, better managed bureaucracy, but the deficit-cutting value of their fix is peanuts compared with the simple act of generating revenue.

You know, that would be raising taxes sufficient to pay for the critical tasks we require of the government.

The GOP would like you to think that Donald Trump represents a threat to Republican tax and deficit-cutting orthodoxy. To the extent Trump has revealed his thinking on tax policy, it looks consistent with the Republican Party. Trump’s grand accomplishment is to create an alliance between the true economic interests of the Republican Party and that segment of the American electorate largely marginalized and displaced by the actions of that same elite.

Welcome to the Republican paradise.

 

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Sunday Cartoon Blogging – July 10, 2105

Our Havanese dog Bandit lost his fight with an autoimmune disease at age 15 this past Tuesday:

DSCN5103

Gonna miss him terribly.

Turning to other news, what does the Dallas attack against police mean for the rest of this American summer? As Mark Shields said on PBS, “events are in the saddle”, and there is a distinct feeling that our leadership is not only not in control, but they have no answers.

No one knows what the reaction will be to New Orleans, Minneapolis and Dallas:

COW Dallas Reaction 2

Despite all we know, we can’t escape our need for Gunz:

Culture of Violence

Some truths demand an explanation:

COW Broken Tail Light

Our satellite in orbit around the giant gas planet Jupiter found something horrifying:

COW Gaseous Titan

The Brits waited seven years for the Chilcot report on Tony Blair’s role in the Iraq War:

COW Chillicot Report.gif

Really, is W. sorry? Maybe he’s sorry he got 4500 American soldiers killed, and another 32,000 wounded. And unknown numbers of American military damaged mentally. Or, that the Middle East is totally destabilized. Or, that our economy crashed. Or, that the country is totally polarized. Maybe he’s sorry, but that’s highly doubtful.

You know, it was OKAY  because a Republican did it.

That’s the mission he accomplished.

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