When Cohn joined the Trump administration, many corporate executives were relieved, seeing him as a steadying influence.
.. Now, unfortunately, both Cohn and Mnuchin are endangering their reputations in their attempts to sell a tax cut.
.. Within the administration, there are real differences among how top officials have behaved and how they are perceived. Several — Tom Price, Reince Priebus, Sean Spicer and Rex Tillerson — have badly sullied their standing with virtually everyone outside the administration. After long careers, they have turned themselves into punch lines.
.. The clearest exception is Jim Mattis, the defense secretary. Mattis has done so partly by avoiding scandal and minimizing conflicts with Trump. But he has also been careful to set his own ethical boundaries. Can you recall a single time when Mattis has said something outright untrue? I can’t. That’s how he has retained his dignity in the eyes of so many people.
.. In the early stages of promoting Trump’s tax cut, they have made a series of statements that are blatantly false — not merely shadings of truth or questionable claims but outright up-is-down falsehoods mocked by various fact-checkers. The statements make the two look more like Trump press secretaries than serious business executives whom members of Congress can trust.
.. They fall into two main categories. The first is who benefits from the tax plan. “Wealthy Americans are not getting a tax cut,” Cohn said on “Good Morning America.” He was echoing a promise that Mnuchin had made before the inauguration: “Any reductions we have in upper-income taxes will be offset by less deductions, so that there will be no absolute tax cut for the upper class.”
.. Want to guess how many families in New York State — population 20 million — are wealthy enough that they’re likely to pay any estate tax next year, according to an estimate based on I.R.S. data? Just 470. The number is so low in Montana, Vermont, West Virginia and four other states — likely fewer than 10 families in each — that the I.R.S. doesn’t provide details, to avoid privacy concerns.
.. Then there are the two men’s deficit claims. “This tax plan will cut down the deficits by a trillion dollars,” Mnuchin said. Cohn claimed that “we can pay for the entire tax cut through growth.”
.. The Harvard economist Greg Mankiw coined the phrase “charlatans and cranks” specifically to describe people who claim that tax cuts pay for themselves. And Mankiw is a conservative who’s worked for George W. Bush and Mitt Romney.
.. Neither one of them has yet turned 60 years old. These won’t be their last jobs.
Trump attacks Corker, who responds by calling the White House ‘adult day care’
President Trump instigated an extraordinary feud Sunday with Sen. Bob Corker, a senior Republican who holds sway over the administration’s foreign and domestic policy agenda, prompting the Tennessean to charge that the White House had devolved into “an adult day care center.”
.. The trash talk not only breaches what had been one of Trump’s few personal relationships on Capitol Hill, but also jeopardizes the president’s legislative priorities. As chairman of the Senate Foreign Relations Committee, Corker will help determine the future of the Iran nuclear deal, and his support will be critical in passing sweeping tax cuts.
.. Corker tweeted a biting retort: “It’s a shame the White House has become an adult day care center. Someone obviously missed their shift this morning.”
.. Corker told reporters that Secretary of State Rex Tillerson, Defense Secretary Jim Mattis and White House Chief of Staff John F. Kelly “are those people that help separate our country from chaos.”
.. Trump, who has little tolerance for public criticism and prides himself on counterpunching those who cross him, took to Twitter on Sunday to attack Corker.
.. Womack said Trump has repeatedly offered to support Corker, and as recently as last week asked the senator to change his mind and run for reelection.
“The president called Senator Corker on Monday afternoon and asked him to reconsider his decision not to seek reelection and reaffirmed that he would have endorsed him, as he has said many times,” Womack said in a statement.
.. Corker has been one of Tillerson’s few allies and staunch defenders in Washington, working closely on such issues as toughening sanctions on Russia and engaging North Korea diplomatically — two issues on which Trump has disagreed with Corker.
.. Corker also looks to play a key role in the upcoming debate over taxes. One of the Senate’s most committed deficit hawks and outspoken members on budgetary issues, Corker already has expressed concerns with the Trump administration’s proposal on tax cuts, and his vote will be key to any deal getting done.
.. In recent months, Trump has also gone after Senate Majority Leader Mitch McConnell (Ky.) and Sens. Lindsey O. Graham (S.C.), John McCain (Ariz.) and Jeff Flake (Ariz.) with cutting and sometimes personal insults.
.. Republican lawmakers and operatives have voiced exasperation that Trump is spending his time attacking senators he will need as allies if he hopes to sign any signature legislation.
.. Corker was a prominent supporter of Trump’s 2016 campaign and one of the few Republicans with gravitas willing to embrace the reality television star’s candidacy before he won the GOP nomination.
.. Corker also helped tutor Trump on foreign affairs, and he in turn considered the senator as a possible running mate and secretary of state.
.. In August, Corker criticized Trump’s handling of the deadly white-supremacist rally in Charlottesville, saying, “The president has not yet been able to demonstrate the stability nor some of the competence that he needs to demonstrate in order to be successful.”
.. Corker urged Trump to visit Alabama and campaign alongside Strange in the closing days of the runoff campaign, and the president now partly blames Corker for encouraging him to get involved in a contest that has hurt his political standing
.. thinks Corker feels free to speak his mind now that he is not seeking reelection.
Kevin Hassett Spanks the Tax Policy Center
For me, Hassett’s biggest contribution to the tax debate is the notion that high corporate tax rates depress the wages of workers.
.. Because companies have stashed profits overseas, and because the U.S. tax cost of investment is so high, middle-income wage earners have suffered mightily. Hassett — and his AEI colleague Aparna Mathur — have argued for over a decade that if you want to raise wages, cut corporate tax rates.
.. “for the median household in the U.S., the top corporate marginal rate cut from 35 percent to 20 percent would boost wage growth almost four-fold.”
.. Hassett has argued that 70 percent of the benefits of lower business tax rates accrue to middle-income wage earners — in other words, Donald Trump’s middle-class base.
.. former CEA chair Glenn Hubbard recently wrote in the Wall Street Journal that too many economists fail to consider the share of the U.S. corporate tax burden borne by labor — 60 percent according to his research
.. concluded that it would boost wages by 8 percent.
.. It’s the difference between a prospering and optimistic middle class and a pessimistic middle class that lives day-to-day, paycheck-to-paycheck.
.. Trump’s tax-cut and regulatory-rollback policies are aimed directly at ending the war on business, which has dragged down the economy for nearly two decades. Let’s reward success rather than punish it.
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