Amid Trump Controversies, Tax Overhaul’s Uncertain Path

Congressional Republicans say an ambitious plan is in the works, but obstacles remain

Nobody is quite sure what the White House position is, or when it will become clear. And the whole process is being slowed down by the struggle over whether and how to repeal the Affordable Care Act, which itself is bogged down in uncertainty.

.. Still, GOP leaders consider handling Obamacare first vital for procedural reasons. It’s necessary to resolve the costs and tax implications of the health plan to write a new budget. And under congressional rules a new budget plan is necessary to provide an umbrella under which a tax overhaul can be passed with a simple majority, thereby avoiding a potentially deadly Democratic filibuster in the Senate.

The Republican Fausts

But if the last 10 days have made anything clear, it’s this: The Republican Fausts are in an untenable position. The deal they’ve struck with the devil comes at too high a price. It really will cost them their soul.

In the first place, the Trump administration is not a Republican administration; it is an ethnic nationalist administration. Trump insulted both parties equally in his Inaugural Address. The Bannonites are utterly crushing the Republican regulars when it comes to actual policy making.

.. Third, it’s becoming increasingly clear that the aroma of bigotry infuses the whole operation, and anybody who aligns too closely will end up sharing in the stench.

The administration could have simply tightened up the refugee review process and capped the refugee intake at 50,000, but instead went out of its way to insult Islam. The administration could have simply tightened up immigration procedures, but Trump went out of his way to pick a fight with all of Mexico.

Other Republicans have gone far out of their way to make sure the war on terrorism is not a war on Islam or on Arabs, but Trump has gone out of his way to ensure the opposite. The racial club is always there.

.. “Precisely because the problem is one of temperament and character, it will not get better. It will get worse, as power intoxicates Trump and those around him.

.. It will probably end in calamity — substantial domestic protest and violence, a breakdown of international economic relationships, the collapse of major alliances, or perhaps one or more new wars (even with China) on top of the ones we already have. It will not be surprising in the slightest if his term ends not in four or in eight years, but sooner, with impeachment or removal under the 25th Amendment.”

.. Already one sees John McCain and Lindsey Graham forming a bit of a Republican opposition. The other honorable senators will have to choose: Collins, Alexander, Portman, Corker, Cotton, Sasse and so on and so on.

.. With most administrations you can agree sometimes and disagree other times. But this one is a danger to the party and the nation in its existential nature.

Trump Tries to Build a ‘Different Party’

The Democrats have no playbook for dealing with a Republican who’s a populist.

.. the central assertion of President Trump’s inaugural address: I am a populist independent, allied not with the two major parties but with the working men and women of America.

.. But those orders — even though their use makes the presidency more imperial, even though it’s no way to govern, even though Mr. Obama did it, too — will likely not be unpopular in the country. It actually looked as if someone was doing something.

.. More important still — the most important moment of the first week — was the meeting with union leaders. Mr. Trump gave them almost an hour and a half. “The president treated us with respect, not only our organization but our members,” said Terry O’Sullivan, general president of the Laborers’ International Union of North America, by telephone. Liuna had not endorsed Trump in the campaign, but Mr. O’Sullivan saw the meeting’s timing as an expression of respect: “He’s inaugurated on Friday and we’re invited in Monday to have a substantial conversation.” The entire Trump top staff was there, including the vice president: “His whole team — we were very impressed.” They talked infrastructure, trade and energy. “The whole meeting was about middle class jobs, how do we create more?” Mr. O’Sullivan believes the Keystone pipeline will eventually generate more than 40,000 jobs. Mr. O’Sullivan said he hopes fixing “our crumbling transportation infrastructure” will be “the largest jobs program in the country.”

.. The Trump White House was showing the Democratic Party that one of its traditional constituent groups is up for grabs and happy to do business with a new friend. It was also telling those Republicans too stupid to twig onto it yet that the GOP is going to be something it’s actually been within living memory: the party of working men and women, a friend of those who feel besieged.

.. It’s a mistake for observers in Washington and New York to fixate on Mr. Trump’s daily faux pas at the expense of the political meaning of what he’s doing. He’s changing the face of the GOP.

.. Mr. Trump suggested to Mr. Green his stands were not as ad hoc and ideologically jumbled as they seemed, that they were in fact intentional. He was creating “a worker’s party,” a “party of people that haven’t had a real wage increase in 18 years.” “Five, 10 years from now — different party,” he said of the GOP.

.. And here is the important political point: Democrats don’t have a playbook for this. They have a playbook to use against normal Republicans: You’re cold, greedy, racist, sexist elitists who hate the little guy.

.. They don’t have a playbook to use against a political figure like Mr. Trump yet, because he jumbles all the categories. Democrats will wobble around, see what works. For now they’ll stick with saying he’s scary, unstable, right-wing.

It’s going to take them a while to develop a playbook against an independent populist, some of whose advisers hate Republicans more than they do.

Deficits Matter Again

Not long ago prominent Republicans like Paul Ryan, the speaker of the House, liked to warn in apocalyptic terms about the dangers of budget deficits, declaring that a Greek-style crisis was just around the corner. But now, suddenly, those very same politicians are perfectly happy with the prospect of deficits swollen by tax cuts; the budget resolution they’re considering would, according to their own estimates, add $9 trillion in debt over the next decade. Hey, no problem.

This sudden turnaround comes as a huge shock to absolutely nobody — at least nobody with any sense. All that posturing about the deficit was obvious flimflam, whose purpose was to hobble a Democratic president, and it was completely predictable that the pretense of being fiscally responsible would be dropped as soon as the G.O.P. regained the White House.

.. How do we know that we’re close to full employment? The low official unemployment rate is just one indicator. What I find more compelling are two facts: Wages are finally rising reasonably fast, showing that workers have bargaining power again, and the rate at which workers are quitting their jobs, an indication of how confident they are of finding new jobs, is back to pre-crisis levels.