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“Tweeting” Away a Tax Bill

President Donald Trump took to the road Wednesday to rally popular support for the congressional Republicans’ attempts to pass a tax bill, which so far are widely unpopular, but as is his wont he first undermined the effort with a street of outrageous “tweets.” His even busier-than-usual thumbs “re-tweeted” some links to anti-Muslim videos, expressed the usual complaints about the “fake news,” gloated about the firing of a network news anchor for alleged sexual improprieties, and seemed to suggest that another of one of media critics might be guilty of murder.
The outbursts not only gave all the media plenty to talk about other Trump’s sales pitch for whatever tax bill the Republicans might come up, they also made those arguments harder to believe.
Those anti-Muslim videos that Trump “re-tweeted” came from a fringe group calling itself Britain First, which the British government blames for a recent spate of hate crimes against its Muslim citizens, so some controversy ensued. The leader of the the fringe group and former Ku Klux Klan leeader David Duke both “tweeted” their appreciation for the “re-tweet” to to Trump’s millions of “Twitter followers,” but British Prime Minister Theresa May “tweeted” her own opinion that “It is wrong for the president to have done this,” and that seemed more in line with the mainstream media’s reaction.
Then the government of the Netherlands “tweeted” its objection that the video purporting to show a handicapped Dutch youth being savagely beaten by a Muslim immigrant was misleading, because although the depicted attack did occur the crime was not committed by a Muslim immigrant, and that assaulters has since been severely punished by Dutch law. White House press secretary Sarah Huckabee-Sanders would not vouch for the authenticity of any of the videos, and was reduced to defending their “re-tweeting” by insisting the president was making a valid point by arguing that mass Muslim immigration has resulted in problems for Europe.
That is indeed a valid point, and there is plenty of valid evidence for it, and it doesn’t need to be couched in hateful terms, so we would have to hear Huckabee-Sanders why Trump chose to cite some phony-baloney videos from a far-away fringe hate group that’s lately become a problem for a key American ally, and wind up annoying another American ally in the process.
Another big story of the day was the National Broadcasting Company firing longtime “Today Show” host Matt Lauer after a co-worker accused him of sexual harassment and assault, so of course Trump couldn’t resist the chance to insert himself in the middle of that. Even though Trump also stands credibly accused of similar charges, and is championing a Republican Senate candidate down in Alabama who stands credibly accused of even worse, and had just been called out by the Dutch for disseminating inaccurate informations, Trump gloated about Lauer’s firing and wondered “when will the top executives at NBC & Comcast be fired for putting out so much fake news” and urged his followers to “check out” the past of the news division’s chief for some unspecified dirt.
Then he took aim at the NBC-affiliated MSNBC network’s Joe Scarborough, host of the “Morning Joe” program and a frequent target of of Trump’s ad hominem criticism, writing “And will they terminate low ratings Joe Scarborough based on the ‘unsolved mystery’ that took place in Florida years ago. Investigate!” So far as any one can tell, Trump was referring to the 2001 death of a 28-year-old employee who died in Scarborough home district office when he was Florida congressman.
Of course the incident was thoroughly investigated by both the local authorities and the local press, with the local medical examiner concluding the the poor woman had died when an abnormal heart rhythm caused to her to lose consciousness and strike her head on a desk, and the local reporter who’s know a journalism professor at Duke University recalls he could find no evidence of foul play, and for the past 16 years only the kookiest conspiracy theory web sites have suggested that Scarborough had anything to with it.
Trump’s “tweets” don’t offer any reason to suspect Scarborough, either, so it looks an awful like Trump’s suggestion that one time political rival Texas Sen. Ted Cruz’s father had something to do with the Kennedy assassination. Which is hardly how to begin a speech making all sorts of dubious claims whatever tax bill the Republicans might come up.
Trump’s oration before a mid-sized crowd of adoring fans in St. Charles, Missouri, was largely devoted to bragging about his overwhelming electoral victory and how he’s since been making America great again even more rapidly than even he expected, but for the most part he focused on how America would be even greater after he signs whatever tax bill the Republicans might come up with. He touched on all the venerable Republican arguments about tax cuts freeing up money for investments that spur economic growth and thus winds up helping everybody, rightly noted that America’s corporate tax rate is the highest in the industrialized word and thus hinders American competitiveness and create perverse incentives for doing business elsewhere, and all things considered we expected worse.
We’re old enough to remember when President Ronald Reagan was making those arguments, though, so we hoped for better. Back when good ol’ Ronnie Ray-Gun was making the pitch for a Republican tax bill the economic circumstances were starkly different, he thoroughly understood the complicated theories underlying the legislation that had been carefully crafted through hotly-debated hearings and thorough analysis by various nonpartisan agencies, and he had the sunny disposition and a sufficient command of the English language to persuade quite a few Democratic congressmen and a sufficient majority of the American to go along without resorting to any bald-faced lies. This is a different time, though, and Trump is a different president.
One of the obvious reasons that whatever tax bill the Republicans might come up with is so polling so horribly is because it is perceived as giving a massive tax cut to the richest Americans, which is inconveniently but undeniably true according to every analysis we’ve seen by any credible nonpartisan agency or think-tank or business publication on either the left or the right margins of the reasonable middle. Rather than winsomely explaining the complicated theories about why that’s actually a good idea for everyone, as Reagan did back when it was undeniably true of his plan, which worked out well enough for everyone, Trump prefers to deny it.
Trump assures the public that such a famously and fabulously wealthy person as himself is going to take a real hit with whatever tax bill the Republicans might come up with, and he mimics the slightly Jewish-sounding exasperation of his accountant at what he’s doing, and he brags about all the rich friends he has who are angry at him. He then adds his catchphrase “Believe me.” He tells the fans in St. Charles and elsewhere that he doesn’t mind losing all that money or any of those phony rich friends because he’s got the love of all the pipe fitters and coal miners and construction workers out there in the real America, and says “believe me” twice.
We’ll have to take his word for it, of course, because Trump hasn’t released his tax returns or given a full public accounting of the complex world-wide business he continues to hold, and there’s no telling what all those rich friends of his might be up to. All of the credible nonpartisan agencies and think-tanks and business publications are saying that Trump and his dues-paying pals at Mar-a-Lago will come fine, though, and at this point they seem more credible than the guys who’s often “re-tweeting” fake news from all sorts of kooky conspiracy theory internet sites. Most of the analysis from the serious sources we’ve seen suggest that the sorts of lower-income workers who voted in large numbers for Trump are going to take a hit, but we can’t say for sure if that’s fake news, so we’ll leave it to lower-income Trump voters to decide.
Back when Reagan was around the top tax rates were truly exorbitant and the economy was deep into an era of stagflation, while today the top rates are still halved and Trump can’t stop talking about how great the stock market and everything else is going just because he’s there, but there’s still an honest argument to be made for Republican economics. Perhaps Senate Majority Leader Mitch McConnell or House Speaker Paul Ryan will stun us by persuasively making that case, but Trump’s obviously dishonest arguments are unlikely to nudge those awful poll numbers upwards, and his “tweets” about “Chuck and Nancy” and the rest of the congressional Democrats are even more unlikely to win any of their much-needed votes.

— Bud Norman

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A Taxing Situation for the GOP

There’s a good chance that the Republican majorities in both chambers of Congress will sooner or later pass some tax bill or another, and a certainty that President Donald Trump will make a big show of signing whatever they might come up with, but at the the moment it seems likely to prove a pyrrhic victory. All of the tax bills that are under consideration are currently polling even worse than all the repeal-and-replace-Obamacare bills that never got passed, the inevitable devils in the details spell trouble for those Republican representatives in the Democratic states, and they way that Trump and the rest of the Republicans are going about it are also problematic.
Despite all the desperate Republican attempts to deny it, there’s really no denying that all of the potential bills really do amount to that hated huge tax cut for the rich that Democrats are always accusing of them of seeking, which largely explains the bad poll numbers. As old-fashioned Republicans we’re sympathetic to the case that the rich shoulder an unfair share of tax burden and that allowing them to spend some greater amount of of their mostly hard-earned money on private sector investments, but these newfangled sorts of Republicans are ill-suited to making that case. Trump claims he’s going to take a huge hit on his taxes with any of the Republican bills, but he’s the first president in decades who hasn’t made his tax returns publicly available to prove such claims, and according to all the polls most Americans don’t believe him when he says “believe me.”
Trump also likes to brag about how well the American economy is doing since his inauguration, which undercuts the argument President Ronald Reagan persuasively used to sell the even bigger tax cut for the rich that rescued the economy from the stagflation of the ’70s, and he doesn’t seem to have the same Reagan-esque understanding of the complex theory to explain it to the American public. Even such old-fashioned Republicans as House Speaker Paul Ryan and Senate majority leader Mitch McConnell seem incapable of making the time-honored arguments for a low-taxed and lightly-regulated economy, and seem to prefer desperate arguments denying that there really is a big tax cut for the rich involved. The Republicans still have a strong case for a significant cut in the world’s highest corporate tax rate, which still figures prominently in all the still viable bills, but the Democrats can rightly note that the only corporations who actually pay that rate have very bad accountants, and what with all those corporations doing so well under Trump’s leadership it’s a harder sell to the general public.
Almost all of those still-viable Republican bills would also eliminate a longstanding federal tax deduction for state and local taxes, which will wind up meaning a tax increase for many middle-and-upper-class Republican voters who find themselves residing in a high-tax Democratic state, and since those voters tend to reside in certain upper-crust Republican districts in those Democratic states that can’t help the Grand Old Party’s chances of keeping its narrow majorities in Congress. Upper-crust Republicans are already uncomfortable with the party’s recent populist turn, and if they’re going to be betrayed by their party even on such hard-core convictions as tax cuts that’s bound to a problem.
There are valid Republican arguments to be made against all of those still-viable bills, too, and Republicans being such cussedly hard-to-herd contrarians many of them are making those arguments. Some of the last die-hard deficit hawks are objecting the to projected and pretty much undeniable increases in the national debt, God bless ’em, those Republican members from those upper-crust districts in otherwise Democratic states are of course speaking out. in the Senate that nice lady from Maine has her usual liberal-leaning objections and that staunch fellow from Kentucky is suggesting none of the still-viable alternatives are nearly conservative enough, and the Republicans might yet snatch defeat from the jaws of a pyrrhic victory.
The House has already passed a badly-polling bill but has some sticking points with each of the remaining viable Senate bills, and the Senate majority is razor-thin, so of course Trump re-started a “twitter” feud with a Republican senator whose vote is badly needed. Arizona’s Sen. Jeff Flake has been a reliable vote for consensus Republican causes during his first term, but he also wrote a book critical of Trump’s combative rhetoric and more populist tendencies, and was recently caught on a live microphone saying that if the Republicans become the party of Trump and Alabama senate candidate Ray Moore it is “toast,” so Trump promptly “tweeted” that Flake — or “Flake(y)” as Trump put it — was therefore a “no vote” on any Republican bill. Our guess is that Flake will vote as usual with the consensus of Republican opinion, and since he’s already announced he won’t run for reelection given the current climate we’re sure he’ll cast his vote with concern for the political consequences, so we won’t blame him whether he hands Trump yet another legislative defeat or allows Trump a pyrrhic victory.
If the process drags out long enough it might come to down a special Senate race down in Alabama, where the aforementioned Moore seems in danger of losing that reliably Republican state’s Senate seat to a Democrat, of all people. Moore stands credibly accused by numerous woman of being that creepy guy who preys on teenaged girls, and by now many of the old-fashioned Republicans have renounced his campaign, but Trump has preferred to “tweet” about a Democratic senator’s sexual misconduct while White House spokeswoman Kellyanne Conway was on television urging Alabamans to vote for the credibly accused child molester in order to pass whatever tax bill the Republicans come up with. This might work for no, but in the long run it strikes us as an especially pyrrhic victory.
The economy will probably chug along in any case, and the national debt will just as surely swell, the inevitable reckoning will ¬†hopefully occur after we do, and as far as we’re concerned both parties deserve whatever they get.

— Bud Norman

A Taxing Situation

Having failed in their efforts to repeal and replace Obamacare, President Donald Trump and the congressional Republican majorities are moving on with plans to revamp America’s tax system. So far, at least, it doesn’t look any more promising than the previous crusade.
Which is a shame, as America’s tax system is badly in need of revamping, and the traditional Republican remedies are probably best. The system should be simplified, flattened, rid of deductions that serve only well-lobbied special interests, include more deductions that encourage investment in the broader economy, and that highest-in-the-world corporate tax rate especially needs lowering. If commensurate budget cuts could somehow be effected, so the already disastrous national debt didn’t explode, it would probably be helpful to lower every other tax in sight.
A Republican president and Republican majorities in Congress should be able to get it done, and even persuade a few centrist Democrats from well-heeled districts with big corporate donors to go along, but at this particular moment it seems a daunting task. Any attempt at serious tax reform is difficult, as all sorts of well-lobbied special interests immediately get involved, and there are lots of class resentments and economic theories to be considered, so that last time it happened was way back when President Ronald Reagan unified the Republican minorities in Congress and got more than a few centrist Democrats in well-heeled districts to go along.
This time around the Republican president is Trump, the leaders of the congressional Republican majorities inspire little more confidence, the Congressional Democrats are more unified in opposition to anything they might come up with, and the economic and political circumstances aren’t quite so ripe.
When Reagan offered his 461-page tax plan to Congress he knew every minute detail of it, and had spent the previous decades making a persuasive case to America for the sophisticated free market theories that inspired it, and with his experience as a past president of the Screen Actors Guild and two-term governor of California he knew the more down-and-dirty practical arguments to use with reluctant Republicans or potentially friendly centrist Democrats from well-heeled districts. The tax rate on the uppermost bracket was 70 percent at the time, which was steep even by the standards of the moribund European economies, cutting that by rate to 28 percent freed a lot of capital for pent-up investment in the private sector, and after the stagflation that had started in Nixon administration and lasted through the Ford and Carter administrations, most of the the country and enough Democrats were willing to roll the dice on those sophisticated free market economic theories.
When Trump unveiled his nine-page outline of how to revamp America’s tax system during a typically rambling speech in Indiana, we couldn’t shake a vague suspicion he didn’t understand a word of it. We had a hard time making sense of it ourselves, as did everyone else we’ve read, but everyone seems to agree with Trump’s opening unscripted that it does involve those “massive tax cuts” that Democrats are always accusing Republicans of yearning for.
During the speech Trump insisted the vaguely worded tax plan wouldn’t benefit himself, and he added his catchphrase “believe me,” which will surely endear him to his many lower-bracket fans, but until he releases his tax returns you’ll have to take him at his word, and by now most Americans don’t. Reagan had released his tax returns and put his relatively modest fortune into a blind trust, so he didn’t have that rhetorical problem. He could also make a case that taking a 70 percent cut from anybody who got lucky or smart enough to make it to that rarefied tax bracket was unfair, whereas Trump is stuck with a rate that went up and down and up again through the Clinton and Bush and Obama administrations and lands in a mid-30s range that strikes the more average earner as about fair. The relatively insignificant cuts proposed won’t unleash a relatively significant amount of capital into the private sector, too, and with Trump constantly boasting about how high the stock market indices and how low the unemployment rates are the populace probably isn’t in any mood for tax cuts for the rich at the moment.
Those Reagan tax cuts brought a promised doubling of federal revenue collections, but without any commensurate budget restraint the deficits and debt swelled. The broad economic expansion nonetheless continued long enough to get his vice president elected for a third term, and although a brief and relatively mild recession got President Bill Clinton he fiddled so slightly with the tax system that all that capital wound up investing in a technological revolution that has propelled the American through the desultory administrations of George W. Bush and Barack Obama and even into the era of Trump. That soak-the-rich mantra the Democrats are still loudly chanting is as stupid as ever, and we discern a few very good ideas in that nine-page outline about how to revamp the tax system, so we’ll hope for the best.
The highest corporate tax rate in the world is an obvious problem that every last Republican and at least a few centrist Democrats with corporate donors should want to solve, and there’s also a strong case to be made against estate taxes, but there was also a strong argument to be made for repealing and replacing Obamacare. Trump and the congressional leadership weren’t quite coordinated on how far to slash the corporate tax rate, both were failing to acknowledge that the actual corporate tax rate is much lower, given all the deductions their lobbyists have obtained, most of which do have a invigorating affect on the broader economy, and we can’t shake a suspicion that Trump is about to find out that tax reform is even harder than health care.
The Republican majorities in Congress are as always all hepped up for tax reform, but they have diverse districts and different donors and individual viewpoints to consider, and no matter the ranch hands Republicans are always harder to round up in a pen than Democrats. There are still a few debt-conscious Republicans left, perhaps including the Speaker of the House, some Republicans from less well-heeled districts that went big for Trump and his promises of tax hikes on the rich, and even some free market hold-outs who now worry that the tax rates are not far off from optimal. A zero percent tax rate yields zero revenues, but so does a 100 percent tax rate, and both liberal and conservative have always agreed there’s some point in between at which tax rates start to result in lower revenue, which many of our states have tried to ignore, but with Trump boasting about the great economy he’s unlikely to convince anyone outside the hated Republican establishment that his rich buddies and cabinet members need any sort of tax break.
If it we’re up to us we’d concentrate on the arguments for a lower corporate tax rate, which are so compelling they have even persuaded all of the Europeans and the Asians, state the moral case that after someone has spent a long and fruitful life paying exorbitant taxes he shouldn’t be taxed a final for dying, and not antagonize any of those lower-bracketed and class-resenting die-hard Democrats and heartfelt Trump supporters with any noticeable tax cuts for the rich, and if we were Reagan we could probably get it done. Trump isn’t at all a Reagan-esque sort of ranch hand you might have seen on the silver screen, neither are that Senate Majority Leader or House Speaker, and at this point we can’t see any of them winning over any sort of Democrat. We’ll still hope for the best, but we won’t be making any bets, and will anxiously wait to see where the Wall Street money goes.

— Bud Norman