Lie #1: America is the most highly-taxed country in the world
Why does Trump keep repeating what even he has to know by now is a flat lie? I suspect it’s a power thing: he enjoys showing that he can lie repeatedly through his teeth, be caught red-handed in his lie again and again, and his followers will still believe him rather than the “fake news” media.
Lie #2: The estate tax is destroying farmers and truckers
Lie #3: Taxation of pass-through entities is a burden on small business
High-income individuals, however, would gain a lot by paying 15 percent instead of the much higher rates they pay at the margin – 39.6 percent right now. And they’d also have a strong incentive to rearrange their affairs so that more of their income pops up in their pass-throughs.
This wouldn’t be small-business creation; it wouldn’t add jobs; it would just be tax avoidance. That’s what happened when Kansas tried something similar, and played a big role in the state’s fiscal disaster.
Lie #4: Cutting profits taxes really benefits workers
Think about what happens if you cut the taxes on corporate profits. The immediate impact is that (duh) corporations have more money. Why would they spend that extra money on hiring more workers or increasing their wages?
Not, surely, out of the goodness of their hearts – and not in response to worker demands, because these days nobody cares what workers think.
.. But the flip side of those capital inflows would be a bigger trade deficit – hardly what the proponents of tax cuts are advertising – and in any case running trade deficits on the required scale is a much more problematic thing than people seem to realize. The dollar would have to rise sharply – and the strength of the dollar would itself deter foreign investment, very much slowing the process of wage rise.
.. Many of the companies with big overseas hoards also have plenty of idle cash at home; what’s holding them back is a lack of perceived opportunities, not cash flow. And even those who don’t have surplus cash can easily borrow at near-record low interest rates; remember, they can always use the overseas cash to secure their loans.
.. In 2004 the U.S. enacted the Homeland Investment Act, which offered a tax holiday for repatriation of foreign earnings by U.S. multinationals. Careful study of its effects tells us that
.. a $1 increase in repatriations was associated with an increase of almost $1 in payouts to shareholders.
Lie #7: It’s a big tax cut for the middle class
.. In total, by 2027, according to TPC, 80 percent of the tax cut goes to the top 1 percent; only 12 percent to the middle three quintiles.
.. How can this not increase the budget deficit?
The only answer would be if the tax proposal eliminated vast swathes of the existing set of tax deductions, massively broadening the tax base. It doesn’t.
Lie #9: Cutting taxes will jump-start rapid growth
Lie #10: Tax cuts will pay for themselves
Let Them Eat Paper Towels
And the Trump administration seems increasingly to see this tragedy as a public relations issue, something to be spun — partly by blaming the victims — rather than as an urgent problem to be solved.
.. And as The Washington Postnotes, there’s a very telling piece of editing: One segment showed Forest Service workers clearing a road, but it cut off just before the official being interviewed praised local efforts: “The citizens of Puerto Rico were doing an outstanding job coming out and clearing roads to help get the aid that’s needed.”
Puerto Ricans behaving well, it seems, doesn’t fit the official story line.
.. Meanwhile, it took almost three weeks after Maria struck before Trump asked Congress to provide financial aid — and his request was for loans, not grants, which is mind-boggling when you bear in mind that the territory is effectively bankrupt.
.. Puerto Rico was in severe financial and economic difficulty even before the hurricane, and some of that reflected mismanagement. But much of it reflected changes in the global economy — for example, growing competition from Latin American nations — reinforced by policies imposed by Washington, like the end of a crucial tax break and the enforcement of the Jones Act, which forces it to rely on expensive U.S. shipping.
.. Puerto Rico is hardly the only U.S. region suffering difficulties in the face of global economic change — and such regions can normally count on federal support to help limit the hardship. What do you think West Virginia would look like if Medicare and Medicaid didn’t cover 44 percent of the population?
.. what would happen to employment in health and social assistance, which provides jobs to 16 percent of the state’s work force, which is vastly more than coal mining?
Republicans, Trapped by Their Flimflam
Last week the Trump administration and its congressional allies working on tax reform achieved something remarkable. They released a tax plan — or, actually, a vague sketch of a plan — that manages both to add trillions to the deficit and to raise taxes on a large fraction of the population.
.. The road to this tax-cut turkey began in 2010, when Paul Ryan — now speaker of the House — unveiled the first of a series of much-hyped budget plans, all purporting to offer a blueprint for eliminating the U.S. budget deficit.
In fact, they did no such thing. They proposed major tax cuts — primarily benefiting the rich, of course — then simply asserted that no revenue would be lost, because reduced tax rates would be offset by closing loopholes and eliminating deductions. Which loopholes and deductions? Ryan didn’t say.
.. In other words, it was all a con.
.. Professional “centrists,” whose whole identity is bound up with pretending that there is equivalence between the two parties, desperately wanted a Serious, Honest Conservative to praise. So did much of the news media. So they slotted Ryan into that role, never mind the actual content of his policies.
.. After all, their supposed concern about federal debt was always just a pose, applying only when a Democrat was president.
.. But after all those years of pretending to be deficit hawks, they feel the need to be seen doing something to offset their high-income tax cuts, to close some loophole somewhere.
.. According to the nonpartisan Tax Policy Center, their plan would give huge tax cuts to the top 1 percent, who would receive 79.7 percent of the benefits. But eliminating deductions would make many Americans, especially in the upper reaches of the middle class, directly worse off:Almost 60 percent of households between the 80th and 90th percentiles of the income distribution would face tax increases... How are the tax plan’s advocates responding to their very big, very bad problem? Partly with evasiveness: You can’t evaluate our plan yet, declared Mick Mulvaney,.. And partly with outright, ludicrous lies: “Wealthy Americans are not getting a tax cut,” declared Gary Cohn.. In broad outlines, the tax story is a lot like health care. In both cases, Republicans have spent years getting away with big promises backed by lies. Now, with real policy to be made, the lies won’t work anymore.Comments
I live in a high-tax state and county, and my family earns enough income that I am fairly sure we would pay more federal tax under this plan. I would be fine with that if it were used to benefit those who have less than us. Pay teachers more, expand healthcare, create a bunch of jobs in places with few, whatever. I would pay a lot more to make our country a better place for everyone. Unfortunately, this plan would take those extra dollars and obscenely direct them to people who already have so much they could never spend it all. It’s unconscionable and shameful. Which is what we sadly have come to expect from the Republican party.
.. The basis of the Republican position on health care and taxes is “Trust me”. Well, based on experience we can’t and shouldn’t.
Given we have a “businessman” in the White House, if any group of executives proposed programs in the same vein as the Republicans have proposed healthcare and tax reform they would be fired. No board of Directors would accept business plans that are based on fictitious economic theory, increase debt to incalculable levels and hurt their core customers (constituents) where is really counts, in their pocketbooks
Cruelty, Incompetence and Lies
Graham-Cassidy, the health bill the Senate may vote on next week, is stunningly cruel. It’s also incompetently drafted: The bill’s sponsors clearly had no idea what they were doing when they put it together. Furthermore, their efforts to sell the bill involve obvious, blatant lies.
The Affordable Care Act, which has reduced the percentage of Americans without health insurance to a record low, created a three-legged stool:
- regulations that prevent insurers from discriminating against people with pre-existing conditions,
- a requirement that individuals have adequate insurance (and thus pay into the system while healthy)
- and subsidies to make that insurance affordable. For the lowest-income families, insurance is provided directly by Medicaid.
Graham-Cassidy saws off all three legs of that stool.
- it eliminates the individual mandate.
- sharply reduces funding relative to current law, and especially penalizes states that have done a good job of reducing the number of uninsured.
- And it effectively eliminates protection for Americans with pre-existing conditions.
Did Graham-Cassidy’s sponsors know what they were doing when putting this bill together? Almost surely not, or they wouldn’t have produced something that everyone, and I mean everyone, who knows anything about health care warns would cause chaos.
Republicans are trying to ram the bill through before the Congressional Budget Office has time to analyze it — an attempt that is in itself a violation of all previous norms, and amounts to an admission that the bill can’t bear scrutiny.
.. Lindsey Graham, Bill Cassidy, and the bill’s other sponsors have responded to these critiques the old-fashioned way — with lies.
.. Cassidy has also circulated a spreadsheet that purports to show most states actually getting increased funding under his bill. But the spreadsheet doesn’t compare funding with current law, which is the relevant question.
.. That’s actually a well-known dodge, one that Republicans have been using since Newt Gingrich tried to gut Medicare in the 1990s. As everyone in Congress — even Cassidy — surely knows, such comparisons drastically understate the real size of cuts, since under current law spending is expected to rise with inflation and population growth.
.. Republicans are desperate to destroy President Barack Obama’s legacy in any way possible, no matter how many American lives they ruin in the process.
.. most Republican legislators neither know nor care about policy substance. This is especially true on health care, where they never tried to understand why Obamacare looks the way it does, or how to devise a nonvicious alternative.
.. the evasions and lies we’re seeing on this bill have been standard G.O.P. operating procedure for years. The trick of converting federal programs into block grants, then pretending that this wouldn’t mean savage cuts, was central to every one of Paul Ryan’s much-hyped budgets.
.. Graham-Cassidy isn’t an aberration; it’s more like the distilled essence of everything wrong with modern Republicans.
.. But even if the handful of Republican senators who retain some conscience block it — we’re looking at you, John McCain — the underlying sickness of the G.O.P. will remain.