Posts tagged ‘tax cut’

Flim Flam Man

I believe it was Abraham Lincoln who said, “You can fool some of the people all of the time, and all of the people some of the time, but you can’t fool all of the people all of the time.” Enter President DFF. That 32% base is some of the people all of the time. Back in 2016 he was approaching that all of the people some of the time, but his all was still not a majority of voters. But now I think reality, who like Mother Nature, is a bitch, is going to demonstrate to the flim-flam man and his party that you can’t fool all of the people all of the time.

Remember on Monday when President DFF went to somewhere where like in the State of the Union took credit for the high stock market (while stock prices were plunging), the amazing jobless rate, rising wages from the tax cut, and his new infrastructure plan? Wow, what a man, except it is all flim-flam. Let’s start with rising wages. He trotted out some anecdote who had got a raise and all is wonderful. Okay, I am about facts and data and here is a fact check from the Washington Post:

Egged on by the White House, corporate America has spent the past few weeks touting how it is sharing its big Trump tax cut with employees in the form of bonuses and pay increases — an apparent validation of the trickle-down approach to economics espoused by the president and his Republican allies.

But when we look at the numbers, we see the opposite: The nation’s workers are getting woefully little, at least relatively speaking. Peeking beyond the PR, our analysis finds that major corporations are planning to spend more than 30 times what they are putting in the wallets of employees on buying back their own stock — a practice solely meant to lift the fortunes of shareholders.

To get a sense of how the pie is being divided, we collaborated with Emre Gomec of the Academic-Industry Research Network to tally the sums of commitments from the 44 companies in the S&P 500 stock index that, according to Americans for Tax Reform, are giving their employees a bonus or a raise because of the new law. When you add it all up, you get about $5.2 billion — $3.7 billion in one-time bonuses and an estimated $1.5 billion in annual wage increases.

But that total pales in comparison with the $157.6 billion in stock buybacks announced by 34 S&P 500 companies since early December, when the tax bill passed the Senate. Companies typically purchase their own shares in a bid to bump up the price — a move that tends to please Wall Street and swells the compensation of chief executives, who are paid largely in stock.

Oh and let us not disregard what has not been tallied yet on the expenditures from the tax savings in automation. But it gets better. President DFF said the following in his speech last Monday: “Something that I’ve been talking about for two years — campaigning, and everyone said, ‘You’ll never do it’ — after years of wage stagnation, wages — so what happened two days ago and a month ago — wages are now, for the first time in many years, rising. In fact, more companies are pursuing pay increases right now than at any time in the last long period of time — they actually say, ’in the 21st century.’ Can you imagine that? It’s amazing what people with some good ideas can do. It’s amazing what we’ve all done together.”

Except again it is a big lie. Again from the Washington Post:

According to The Fact Checker’s database of Trumpian claims, the president in his first year eight times falsely suggested that wages were finally rising because of his policies. He also made a similar claim in the State of the Union address.

But there is little dispute among economists that wage growth — after being essentially being flat for years — started to pick up again in 2014, after reaching a post-Great Recession low. In other words, Trump is simply blowing smoke when he claims that when he was campaigning that people thought it was impossible for wages to rise again. Wages were already increasing, though the increases were lower than what would be expected in a mature recovery and the impact was uneven, as shown by this chart from the Hamilton Project at the Brookings Institution.

For the purposes of this fact check, real wage growth for most workers in 2017, Trump’s first year as president, actually lagged the last four years of Barack Obama’s term. “Real wage growth in 2017 for production nonsupervisory workers in 2017 was 0.2 percent, the lowest since 2012,” Shambaugh said. “For the bulk of workers, purchasing power did not rise very much in 2017.”

Okay, let’s move on to the wonderful infrastructure bill that I have told you before is a sham. First he gave away all the money we needed to infrastructure improvements in the Great Tax Gut. Now here is the plan as it now looks, again from the Washington Post:

Despite calling for a $1.5 trillion boost in infrastructure spending, Trump is proposing just $200 billion in federal funding. The remaining $1.3 trillion is expected to come from a combination of state and local governments and the private sector. Yet in most places with the greatest need for new infrastructure, cash-strapped governments won’t be able to pay for it without raising taxes. Meanwhile, the private equity firms and foreign sovereign wealth funds that are likely fill the void will undoubtedly demand guaranteed returns in the form of, say, new tolls. The reliance on private investment also creates, as Paul Krugman writes, the potential for “an orgy of crony capitalism.”

You know, toll roads everywhere and instead of taxes to pay for it, you will just get bills for flushing your toilet. And we won’t own any of it. The ultimate flim-flam man can full some of the people some of the time and all of the people some of the time, but he can’t fool all the people all of the time and when they finally feel all this in their pocket book, well then things will change. Reality, facts, and data are a bitch.

MY GOD! Charles Dickens’ Scrooge Was a Modern Day Republican

Last night we were looking for anything to watch on TV and came across A Christmas Carol or called these days, Scrooge. After watching the Saturday Morning Massacre, the Tax Bill Vote in the Senate, how wealth was being transferred to the wealthy, and the add-ons just made it worse for the poor working slob, I was in a mood for some holiday distraction. So this seemed like the perfect distraction.  It was the Patrick Stewart Version (1999).  Just as an aside, I think my favorites are George C. Scott in 1984 and Albert Finney in 1970 (Musical), but I get distracted.

Here we have Ebenezer Scrooge who has turned his back on everything except wealth accumulation. Sound familiar?  Remember in the story where the two portly gentlemen are trying to get a donation from Scrooge?

“At this festive season of the year, Mr. Scrooge,” said the gentleman, taking up a pen, “it is more than usually desirable that we should make some slight provision for the Poor and destitute, who suffer greatly at the present time. Many thousands are in want of common necessaries; hundreds of thousands are in want of common comforts, sir.”

“Are there no prisons?” asked Scrooge.

…“I wish to be left alone,” said Scrooge. “Since you ask me what I wish, gentlemen that is my answer. I don’t make merry myself at Christmas and I can’t afford to make idle people merry. I help to support the establishments I have mentioned—they cost enough; and those who are badly off must go there.” “Many can’t go there; and many would rather die.” “If they would rather die,” said Scrooge, “they had better do it, and decrease the surplus population.

Now think about it.  Republican ideology is that if you are poor you only have yourself to blame because you are either undisciplined or lazy and helping the poor and desperate just encourages them (hammocks anyone?).  The Saturday Morning Massacre was about just that, taking money and benefits the poor need desperately so the rich can get richer.  And now they want to go after Medicare and Social Security (See yesterday’s blog). Screw the poor and those who are in need.  It is Scrooge at his worst.

But Jacob Marley, Scrooge’s deceased business partner said it best and it was how we should hold Republicans accountable:

“But you were always a good man of business, Jacob,” faltered Scrooge, who now began to apply this to himself.

  “Business!” cried the Ghost, wringing its hands again. “Mankind was my business. The common welfare was my business; charity, mercy, forbearance, and benevolence, were, all, my business. The dealings of my trade were but a drop of water in the comprehensive ocean of my business!”

So let’s build a wall to keep people who want a better life out.  Let’s cut their healthcare and old age pensions because the wealthy have worked hard for theirs.  Let’s kill the inheritance tax so wealthy children get even wealthier. Let’s sow hate and division throughout the nation so we can hold on to power and increase economic inequality. Let’s ignore evil in the white house for our agenda of making the wealthy wealthier.   Let’s kill democracy by attacking the free press and our judicial system.  Let’s cast doubt about our institutions so that only what we tell the rabble can be believed.  And all in the interest of business and wealth accumulation.  Bah Humbug. Scrooge at his worst.

So who is Bob Cratchit in this tale?  He is the American middle class, at the mercy of flow down and since the aim of Scrooge (and corporations) is to maximize profits, how do you think he fairs?  Without healthcare for Tim, he is going to die.  What do you think is going to happen to the 14 million or so that are going to get pushed off their healthcare as unaffordable after the Saturday Morning Massacre?  “And the Union workhouses!” demanded Scrooge, “Are they still in operation?”

The three ghosts that come to visit Scrooge are reality.  They take Scrooge out of his bubble to see the world as it really is.  Oh, but we would have three ghosts for Republicans, but they stay in their bubble of flow down, undeserving poor, denying climate change, or the reality that as Marley said so well, ““Mankind was my business. The common welfare was my business; charity, mercy, forbearance, and benevolence, were, all, my business.”  But their business is business and what is good for business, not humans, and they actually believe all the rest will take care of itself.  Do not notice the bodies in the doorway, the people dying of opioids, starving children in America, or our kids burden by the debt of loans for higher education.

The two portly gentlemen who were asking for a contribution to try to help the poor are the Democrats.  They are still begging from Republicans instead of challenging them as the ghosts did.  At the end of this tale, Dickens gives us a happy ending where Scrooge re-recognizes his humanity and connection to the rest of humanity around him.  Not so with the Republicans.

Who knew Dickens’ politics of the 19th century would be the politics of the 21st Century?  You cannot watch this tale and not notice the parallels.  And we have learned nothing. Right now ”Bah Humbug” is winning out over, “and God bless every one”.  Maybe the Three Ghosts will show in 2018.

Econ 101 for Republicans

Republican economic theory (theology?) relies on two beliefs or tenants. The first is that if you cut taxes there will be new investment by businesses and corporations, and with that, jobs and wage growth. The second is that this increased economic activity will actually grow the treasury’s coffers, paying for themselves. This effect when applied to the impacts of a tax cut is called dynamic scoring. See, the tax cut will cost x, but the result will be y additional income to the treasury or so the theory goes. The first one could be true in certain circumstances and the second one is demonstrably false. But that is what their whole approach to the economy is made up of. Oh sure fewer regulations, but that is really a subset of the first tenant and when you add the secondary costs, like damage to environment, death and dismemberment, and loss of rights for workers, the cost are usually more than the benefits.

Let’s go after the first tenant, cutting taxes creates jobs and stimulates the economy. Well there are times when that actually helps, not as much as actual increases in government spending (a tax cut has the same effect on balance sheet of the Treasury as increased government spending), but it helps and it can be faster than government spending. Economic theory and practice have shown us that after a recession or even during one, with high unemployment, making money available to corporations and businesses in the form of a tax cut does stimulate growth. It is a tool Republicans favor because they don’t believe in direct government spending in things we need like infrastructure and R&D, and want to give it to corporations and businesses (and people) to decide for themselves.

Two things you need to ask yourself here. First are we coming out of a recession, and how high is unemployment? The answer which conservative economist Bruce Bartlett gave us the other day was neither apply as corporations are already awash in record profits, and the unemployment numbers tell us we are almost at full employment. Second, one thing we know for sure is money given to the middle and lower classes is generally spent, while money given to wealthy is much less effective. Where was the emphasis in the current tax bill? Oh, the wealthy. There are great debates about whether direct spending by government is far more effective in these times to create real demand through jobs and wages. But we have some empirical data from Governor Brownback and the Kansas experience where they slashed taxes, little change in jobs or wages, and the state went into massive debt, defunding education to help balance the books.

The bottom line on the first tenant, is that if used judiciously at the appropriate time in the economy (not now) it might help. But considering the infrastructures needs across the country, the money would have a much higher multiplication factor (return on investment; every $1 spent creates say $1.5 of increased activity in the economy), and we would create jobs, higher wages, and invest in our future. The money they are going to spend paying off their wealthy donors, in other words, is going into a big hole.

Okay, tenant number two, that cutting taxes pays for itself (dynamic scoring) is fairly straight forward, it has never worked. Oh sure there might me some increased revenue if the tax cuts were properly targeted to the middle class, but nowhere near the income to make up for the spending. “Assessing the House version of the plan and accounting for the economic growth its tax cuts would induce, the analysts found that growth would offset only about 12 percent of the plan’s cost over the first decade. After an initial economic boost, bigger deficits and rising interest rates would drag on the economy.” Here is another well research source that can find no pay for itself effect in Vanity Fair. But hey, get it from the non-partisan Joint Committee on Taxation and note they still used very optimistic growth rates.

So there you have it. Or as conservative economist Bruce Bartlett said, “…virtually everything Republicans say about taxes today is hogwash.” So we are going to take a big hit. Get ready. And what is next? This from Paul Ryan in the NYT this morning:

Speaker Paul D. Ryan and other Republicans are beginning to express their big dreams publicly, vowing that next year they will move on to changes in Medicare and Social Security. President Trump told a Missouri rally last week, “We’re going to go into welfare reform.”

That’s right. When the numbers don’t add up and the Treasury starts going in the red, they will all of a sudden care about the deficit again and go after the programs that we need most. Maybe that was their game all along. We are in for hard times ahead, but as I told my son who works in the school district in San Diego and is afraid the new tax bill that eliminated his tax deduction for interest on loans and cut the deduction for state and local taxes that school districts depend on could bankrupt him, Conservatism is like cancer. The treatment to cure it if it can be cured almost kills us. That is where we are at. The great Kansas Experiment has moved to the national stage, and we will see the same results. Think you might get out and vote in 2018?

Impeachment and the Failure of Our Constitution

Ezra Klein wrote a piece yesterday that everyone should read on impeaching the President.  At this point most sane people have arrived at the conclusion that having a racist, misogynistic, pathological liar, who is unstable and may be losing his grip on reality for President is a very dangerous situation.  Ezra argues that impeachment should be used more frequently to protect America from temporary moments of insanity. Then he chronicles why it hasn’t.  I will just summarize here.

First the Founders put high crimes and misdemeanors as the justification, and then rejected defining those terms.  To make a long story short, it is up Congress.  We seem to be locked into the idea that it must be an actual crime or mental incapacity (25th Amendment) when in fact, it can be anything they want.  Ezra makes a good case that utilizing the 25th Amendment could cause a civil war as the deplorables who have their own reality, would see this as usurping power by the Republican elites.  It is a good point.

He also points out that the Founders put into place many checks and balances to ensure we would not be found in the situation we re in today, starting with the electoral college where the political elites were suppose to assert their better judgement when the rabble got it dangerously wrong.  Today we have a rubber stamp electoral college that overrides the popular vote.

He also points out that the Founders did not foresee the two Party system we have today that basically protects their own no matter how bad.  He noted that the impeachment process only happens when the opposing party to the President occupies Congress.  Today we see that in operation as a man who even many Republicans are calling unstable, protect him to protect an agenda.  But as Ezra pointed out, the Presidency is not what the Founders envisioned and the amount of power it has today is unparalleled.  In a moment he can destroy the modern world.

Yes, we should use impeachment more often, but as Ezra pointed out, not likely.  I think we are reaching a point where our Constitution does not work anymore.  On the tax cut debate, I listened to Bruce Bartlett, economist, historian, a domestic policy adviser to Ronald Reagan, and Treasury official under George H. W, Bush, ask if we had lost our brains.  He is a traditional Republican who believes in controlling our debt.  He points out that the Republican Congress is in an alternate reality,  tax cuts have never paid for themselves, we are almost at full employment, and business are awash in money. A tax cut is not even called for, but tax reform is.

Further he makes a really insightful observation, the majority of the country is against this tax cut, and Republicans don’t care.  He points out that it is possible under our Constitution for 40% of the population to elect a super majority.  In other words we have a system where our representatives are not responsive to the electorate, but only to their donors with no fear of retribution.  In other words, our system doesn’t work any more, from the electoral college and gerrymandering, to unfair representation by rural states.

I really wonder as Ezra did if we have the wrong system for today’s world and we need a system similar to a parliamentary system where a vote of no confidence would force an election where the people can speak again and not wait 4 years.  We have a lot to fix and it is becoming clear that under our system, we can’t fix it.

There is one bright side, assuming with the latest with Flynn going for a plea bargain doesn’t send the President over the edge and start launching missiles, the Republicans may get their way on tax cuts and other policies, but the result will be a slow crash and burn because these policies don’t work.  See Republican Bruce Bartlett above.  As the nation is wrecked, Americans just might come out to the polls in 2018 and 2020 and turn this around.

I will add this caution. It is clear looking at the contacts with Russians, that there was collusion, they had a hold on Trump, probably through money laundering.  It is no coincidence that Mueller interviewed Kushner just before we find out Flynn pleaded guilty.  He was going to catch him in a lie and probably did.  Our unstable President will get more unstable and hopefully the generals in the White House will have a 24/7 watch on him.  The noose is around the neck and tightening and he could do anything.  We live in very dangerous times. If we get through this, we have a lot to fix.

 

The Republicans Have No Clothes (The Emperor’s New Clothes)

There are two things here, and the second is the most telling and chilling about who we are. The first is looking at what “tax loopholes” are being closed. Those would be teacher’s deducting the cost of subsidizing your kids education by deducting the cost of schools supplies. The second “loophole” cut will be those wicked blood sucking kids who can now deduct interest payments on their loans to try to get ahead and make our economy competitive.

The third “loophole” is those dastardly deductions for big medical expenses. If you are sick, screw you. Yep, we are going after those blood sucking Americans who suck us dry. Oh and for those of you that argue this isn’t really a big deal (some don’t itemize), see how much they figured they would save so they could give real “job creators” cuts without cutting their loopholes. If you wondered what Republicans looked like naked, there it is and they have no clue like the Emperor in the famous Hans Christian Anderson tale that they are now standing naked. Will anyone but the little boy (and Democrats) notice?

Item two is the whole sexual escapade of Trump and Roy Moore and Republicans looking the other way. These are the people where family values matter, and now when it comes to power and politics they don’t. President DFF cast dispersions at Al Franken, yet is silent on Roy Moore. Republicans call for Al Franken’s resignation, and yet President DFF’s own sexual assaults go ignored, with the justification he never admitted to it, but 14 women now say otherwise. This was out there before the election and America, thank you Wisconsin, Michigan, and Pennsylvania, elected him in the electoral college (another relic from the dark ages).

But what should raise the hair on the back of your neck is how “good” Christians in Alabama are reinterpreting the Bible to legitimize Roy Moore’s lusting after children. That in itself tells you all you want to know about putting a man in office who thinks his interpretation of the Bible trumps (pun intended) our Constitution. But here is the frosting on the cake. Alabama Governor, Kay Ivey tells us on Joy Reid this morning that holding the Senate is more important than electing a pedophile. Following that logic, you can see how Hitler rose to power. You can see how power and fear corrupt absolutely. And from Bible thumping Alabama. At this point the moral corruption in the Alabama GOP is complete, and religion, politics as a religion, and the moral superiority of Alabamian’s interpretation of the Bible are playing a large part.

Maybe the real people of Alabama will come to their senses, but this ought to scare you to death. We too could birth another Hitler, a Christian one this time. You can argue that other Republicans have spurned Roy Moore, but what of their leader the Dumb Fat Fuck. There is moral decay among the moral majority who, it turns out, are immoral after all.

So now you see the Emperor with no cloths. He does not give a wit about common people’s problems or struggles, and even more damning, he will sacrifice our Constitution and our moral values to hold on to power. Could it not be anymore clear?

WTF Friday

I start with a quote from Eugene Robinson this morning taking on General Kelly and his racism as he cast the Civil War as a failure to compromise. This is from the Mississippi proclamation when leaving the union:

“Our position is thoroughly identified with the institution of slavery — the greatest material interest of the world. Its labor supplies the product which constitutes by far the largest and most important portions of commerce of the earth. These products are peculiar to the climate verging on the tropical regions, and by an imperious law of nature, none but the black race can bear exposure to the tropical sun. These products have become necessities of the world, and a blow at slavery is a blow at commerce and civilization.”

Now Eugene was arguing about the debasement of the Trump White house and how they have reinvented history to their liking, but look at this in a whole new context, the declaration of corporations about how important their existence is and how they view labor in general. You think that is a reach. Remember when Bank of America downgraded Chipotle stock for over paying their employees? Think about how Republicans fight a living wage because it might make our products too expensive. Think about how corporations move jobs off shore to secure slave wages. No reach at all, but it is all justified much like the above in denying the basic humanity of all humans.

President DFF’s appointment of Jerome H. Powell to chair the Federal Reserve was the appointment of a financier and business (lawyer actually) man instead of an economist to the Fed. The DFF hates economists. But here is what you ought to think about. A financier and a business man should be an expert in microeconomics, what is good for a business or corporation at the expense of other business or corporations. An Economist would understand macroeconomics, how the entire economy responds to external and internal stimulus, not what is good for one business, which might be detrimental to others. More importantly, most economist understand the complicated connection between interest rates and monetary policy, In other words, what is good for the whole economy, not just my own profits and how to deal with recession and inflation. This confusion could be a very dangerous thing for the country as it is clear the DFF has no understanding of macroeconomics just as most successful business men do not.

President DFF lashed out after the attack in NYC against the “diversity lottery” for immigrants. He wants everyone merit tested. Now once again, this is a great example of how the DFF’s brain works, or does not work, and that he reacts to the anecdotal without a real examination of the facts. He is the perfect lynch mob leader, clueless and brainless, and quite dangerous. Karen Attiah gives us a look at the merit system and how it has worked for so many and made us a better country, but the reactionary DFF will destroy everything in his path as he reacts as a spoiled 3-year-old who does not like his cookie.

I would just like to say that the Tax Bill that Republicans have brought forward is a jumbled mess. There are two really good analysis of this by Paul Waldman and Catherine Rampell. Now first note that the budget resolution that passed the Senate (all Republicans, no Democrats) that allows this bill to cost no more than $1.5 trillion over the next 10 years is saying we are going to bust the budget by $1.5 trillion over the next ten years. If you are slow, the balance budget folks just said we are going to increase the deficit by $1.5 trillion. Say what? Next note that what they really did was try to give a major giveaway to the rich, some bones and scraps to the middle class, and then there is the math problem, how to keep all that within the $1.5 trillion. Thus the cut to deductions for student loans, home interest deductions, and state and local tax deductions. And as Catherine pointed out this hurts prosperous Blue States who have higher taxes and may make raising taxes for things we need to pay for harder. In a sense, reducing us to broke states.

Oh, and note that the average tax rat corporations pay is 12.6%, less now than what they want to lower the corporate tax rate to, without removing all their loop holes. And that brings me back to Eugene Robinson and the quote from Mississippi. It is the bill of rights of corporations and we are all so screwed. The WTF moment is that all this out there and the solutions are easy, but instead we have a DFF president and a Republican Party running on empty. Happy Friday.

The New Normal

I have, as many others have, been warning against accepting the DFF and Republicans falling in line behind him as the new normal. I have argued this is not normal and we should not normalize him or them. But it is the new normal. I don’t know about you, but when you don’t think it could get any worse, then you peruse the morning paper, and it is much worse. What are you to do (vote)? Here was a smattering of what is in the news this morning:

Let’s take the last two. Remember the Tea Party and the Tea Party Caucus in Congress. They were going to make the government fiscally sound again, “Debt is the problem!” “Balanced budgets!” Those were the guys and gals who shut down, or threatened to shut down the government over increasing the debt limit (stupid in itself). Now those boys and girls just passed a tax cut (none of them have read) that will add $1.5 trillion to the deficit. Say what? Oh, don’t worry, when they are faced with increasing the debt limit to fund what they approved, as they have to do each year they will balk. Yeah, makes no sense whatsoever.

Meanwhile, what of Democrats? Who cares? And that is about it. From their loss of the House in 2010 on they have been clueless that they are clueless. And the biggest problem is that it is the same old people which is part of the reason that even though they are making sense, no one is listening. Here is from Eugene Robinson cited above:

Both major parties are in crisis, and I believe the reason is that the ground has shifted beneath them in ways they do not understand. Until the contours of the new political landscape become clear and the parties reshape themselves accordingly, I fear that chaos and turmoil will reign as the new normal.

Let me be clear: I am not postulating any sort of false equivalency. It was the Republican Party that nominated Trump for president, and it consequently must be blamed for this horror show of an administration. The party that loves to grandly invoke the name of Abraham Lincoln sent to the White House a crass egomaniac who cynically heightens racial animosities — a man who, by temperament and ability, is patently unfit for high office. You did that, Republicans.

…But the party (Democrats) managed to lose a presidential election to a man who had never been elected to public office, who slandered Mexican immigrants as rapists, who used African Americans and Latinos as foils to help him stoke feelings of grievance among whites, and who bragged about sexually harassing and assaulting random women. You lost to that guy, Democrats.

The party of Franklin Roosevelt allowed the GOP to pretend to champion the interests of the working class. Failure to connect with white voters in the Rust Belt is only part of the story of last year’s defeat, and maybe not the most important part. Democrats failed to sufficiently energize their core constituencies — urbanites, African Americans, Latinos, women, young people.

But what we got was the same old party pushing away the new blood and resurrecting the old establishment. As I noted yesterday, even Donna Brazile is back. So no one cares what they have to say because, let’s face it, they are losers. So that is where we are today. Republicans out of control trying to pass anything without the slightest scintilla of analysis, but a win on the coat strings of a narcissistic pig, and Democrats feckless to understand that the ground is moving under their feet. Just another Friday where it would seem the only news worth watching is sports news. Go Houston/Dodgers. I haven’t decided yet. This is just great baseball. Maybe that is all we have left of America.

And a Chicken in Every Pot!!!

I am listening to the DIC (Dotard in Charge) talk about his tax cut plan and lie through his teeth about he or his wealthy friends not getting big breaks.  I am thinking he must really think we are stupid, and then I look at Alabama’s nomination of a right wing nut (more religion in government (whose religion?), and outlaw gays) to run as their GOP candidate, and maybe he is right.  But let us just stick with the tax “reform” plan.

First question you might want to ask is how do we pay for all this cutting?  One, if he were rational, would start from the understanding of what we need to invest in future, add that to our current obligations and figure out how much money we want to have coming in.  Now this would include what is a reasonable debt (based upon % of GDP) and how to pay for programs in the future.  Then understanding our income needs, we could look are reforming the tax code to simplify, and decrease/increase where it makes sense.

Now we could argue about expanding Social Security by allowing the tax not to be capped at a certain income level.  We could argue about Medicare for all and how to pay for it with a trade-off of higher taxes versus no private insurance bills.  But we are not doing that, we are cutting, cutting, cutting, and what of the deficit.  Oh wait,  I forgot, tax cuts pay for themselves except of course, they don’t.  So the first question to be asked is how does this devastate the deficit.  I happen to be one who thinks a reasonable debt is okay and necessary, but make no mistake, they guys who want a balanced budget don’t give a shit about the debt when it comes to tax cuts, and will cut programs like healthcare (Medicare and Medicaid), education, R&D, infrastructure spending, and Social Security to keep their cuts.

Now, it is true that some pay way to much in taxes.  They are the ones who really need a tax cut, and they have no power.  Those that have power have already massaged the system.  You don’t really think that while we have the highest corporate tax rate, they actually pay that right?  Of course they don’t because they have gamed the system with their money and the gaming continues with the DIC out there lying through his teeth.  So let’s see the details and see what this really costs us, but unless they can pass this with 50 votes, it is probably dead meat.

In many ways one has to ask, what is the strategic plan of Republicans and how does this fit into a vision of  a great tomorrow.  It doesn’, and it is repeal and replace and cut taxes and the devil is in the details.  It assumes as always that government is bad, regulations are bad, and markets should be free to solve all problems.  It has never worked and this is more of their nonsense.  But hey! who does not want a free ride?  That is what America has become.