Or if you prefer pop culture to polling statistics, think about it this way: God used to look like Charlton Heston, but now He looks like Morgan Freeman, and I think this matters.
.. O.K., I’m sure you can guess where I’m going with this. I’ve had much to be thankful for — but every one of those good things is now very much under assault.
.. Meanwhile, everything this president and this Congress are doing on economic policy seems designed, not just to widen the gap between the wealthy and everyone else, but to lock in plutocrats’ advantages, making it easier to ensure that their heirs remain on top and the rest stay down.
.. according to Pew, 58 percent of Republicans now say that colleges and universities have a negative effect on the country, versus only 36 percent who see a positive effect.
And I don’t believe for a minute that this turn against education is a reaction to political correctness. It’s about the nasty habit scholarship has of telling you things you don’t want to hear, like the fact that climate change is real.
.. In other words, America has given me a lot to be thankful for. But it looks, more and more, as if that was a different country from the one we live in now.
Inheritance Tax: A hated tax but a fair one
surveys suggest that opposition to inheritance and estate taxes (one levied on heirs and the other on legacies) is even stronger among the poor than the rich.
.. Yet this trend towards trifling or zero estate taxes ought to give pause. Such levies pit two vital liberal principles against each other. One is that governments should leave people to dispose of their wealth as they see fit. The other is that a permanent, hereditary elite makes a society unhealthy and unfair. How to choose between them?
.. The positive argument for steep inheritance taxes is that they promote fairness and equality. Heirs have rarely done anything to deserve the money that comes their way. Liberals, from John Stuart Mill to Theodore Roosevelt, thought that needed correcting.
.. Annual flows of inheritance in France have tripled as a proportion of GDP since the 1950s. Half of Europe’s billionaires have inherited their wealth, and their number seems to be rising.
.. However, in 2017, it is not clear exactly how decisive a role inheritance plays in the entrenchment of the hereditary elite. Data from Britain suggest that people tend not to lose their parents before they reach the age of 50. In rich countries the advantages that wealthy parents pass to their offspring begin with the sorting mechanism of marriage, in which elites increasingly pair up with elites (see /react-text article react-text: 2518 ). They continue with the benefits of education, social capital and lavish gifts, not in the deeds to the ancestral pile.
.. The trusts they create as a result can last even longer than the three generations
.. If avoiding double taxation were a requirement of good policy, then governments would need to abolish sales taxes, which are paid out of taxed income.
.. However disliked they are, they are some of the least distorting. Unlike income taxes, they do not destroy the incentive to work—whereas research suggests that a single person who inherits an amount above $150,000 is four times more likely to leave the labour force than one who inherits less than $25,000.
How to Fix the Republican Tax Plan
the G.O.P. still ended up with a pair of bills that look, once again, like the caricature of Reagan-era Republicanism the party has become: heavy with tax cuts for corporations and the heirs of millionaires, lighter on relief for the middle class, lighter still for the working class, with a complicated slew of provisions and score-gaming expiration dates that have made it hard to discern whether lots of non-rich Americans (including the plan’s supposed model beneficiary, a family making $60,000 with multiple kids) even get a tax cut at all.
..The Republicans seem to be trying, in their none-too-competent and ideologically straitjacketed way, to cut taxes for two major constituencies, employers and middle-class families, while paying for some of these tax cuts by goring well-off professionals in high-tax liberal states.
.. The (much more modest) Republican proposal to tax the richest university endowments is admittedly more of a targeted culture-war jab.. the problem is what the Republicans are doing with the money. Specifically (and entirely predictably), they are plowing way too much of it into tax cuts for their donors, and not enough into tax cuts for everybody else... Senate Republicans seem to be turning to a more complicated and irresponsible alternative instead — one that gets more money for parents and middle-income taxpayers up front by making all their tax cuts sunset after 2025 (even as the corporate cuts are made permanent).. And it tells you something depressing, if unsurprising, about the G.O.P. that this combination is apparently vastly preferable to asking the donors and ideologues to just accept half a corporate-tax-cut loaf... At some point the party’s moderates and would-be reformers have to take a stand for the wild-and-crazy proposition that the Republican Party should pass legislation that has some chance of being popular and isn’t insanely jury-rigged.
Trump and Ryan Versus the Little People
First is the poster child family Paul Ryan keeps talking about, a family with two children making $59,000 a year. In the first year of the Cut Cut Cut Act, such a family would indeed receive a tax cut. But this cut comes from several special tax credits that are basically loss leaders to help sell the plan; they all either expire in later years or will get eroded by inflation. By 2027, with the plan fully phased in, that exemplary family would actually be facing a significant tax increase relative to current law.
.. it’s not just Wall Street stiffs who would find themselves in that situation: So would doctors, lawyers, engineers, and other well-paid professionals. Overall, the Tax Policy Center estimates that more than a quarter of the population would see taxes go up, not down, under the G.O.P. proposal; for those with incomes between $200,000 and $500,000, that fraction rises to more than 40 percent... Finally, let’s imagine a very lucky individual — let’s arbitrarily call him Eric Trump — who stands to inherit a stake in a business he doesn’t run, plus a bunch of stock. He’ll get his inheritance tax-free, because the estate tax gets phased out in the G.O.P. bill. He’ll get to pay a low tax rate on his business income. And his stocks will pay higher dividends, because the G.O.P. bill also sharply cuts corporate tax rates, and most of the benefit of those cuts will probably flow to shareholders... So when Gary Cohn, Trump’s top economic adviser, says that the bill’s goalis “to deliver middle-class tax cuts to the hard-working families in this country,” he’s claiming that up is down and black is white. This bill does little or nothing for the middle class, and even among the affluent it’s biased against those who work hard in favor of the idle rich... You might wonder how Republicans imagine that they can get away with this. But anyone who has paid attention to U.S. politics knows the answer.
- First, they will lie, unashamedly, about what their bill actually does.
- Second, they will try to distract working-class voters by stoking racial animosity.