I wrote this a few years ago in response to a similar piece:
The problem is that the rich have the ability to take their income in alot of different ways.
Tax income more, they’ll take it as dividends.
Tax dividends more, they’ll take it as capital gains.
Tax capital gains, they won’t realize their capital gains until they can offset them with realized losses or they’ll just get bank loans again’t their stock holdings.
Tax assets on death and they’ll pass them o n in trusts. Some will move money off shore if they think they can get better returns that way.
The problem is that no tax code can close all loop holes because you just can’t foresee the creative ways people will out maneuver the tax code.
Who would have thought 25 years ago that companies would buy other companies in different countries, not to acquire their products or markets, but to acquire their headquarters address to lower the tax paid in the US.
Ivanka Trump has learned well from her father’s cons
Ivanka Trump is for working women the way her father is for the working class: In both cases, the Trumps really just want their money.
President Trump’s daughter built her brand around women’s “empowerment,” by which I mean monetizing the anxieties and insecurities of stressed-out moms.
From the beginning, her stated goal was to help professional women dig deep down inside their souls and tap their inner purchasing power. She launched her jewelry line because the “concept of a self-purchasing female was lost among the traditional jewelers,” her website explains without apparent irony.
.. So what are Trump’s feminist bona fides, ..
.. She publicly advocates paid family leave, even though she contracted out the designs of her clothing line to a firm that offered zero weeks of paid maternity leave.
.. And on Equal Pay Day this year, she posted on Instagram that “it is the responsibility of all Americans to come together in pursuit of equal pay.”
Last week, however, she publicly endorsed a White House decision to trample a modest equal-pay enforcement initiative.
.. And rather than the usual “anonymous source” leaks about how Ivanka Trump really, truly didn’t want such a dreadful thing to happen, she released a statement offering her blessing.
.. It’s a trick Ivanka Trump learned well from her father.
Papa Trump, after all, ran on a platform of helping the fabled Forgotten Man through promises to
- plump his paycheck,
- revive his obsoleted jobs,
- discount his health care and otherwise
- return him to his former economic and cultural glory.
.. Trump is hellbent on passing a massive tax cut for the rich. Right now the tax cut looks to be unfunded. Just because it isn’t being paid for now, though, doesn’t mean it will go unpaid-for forever.
Rosy scenario notwithstanding, at some point the U.S. government will have to make good on its accumulating debts, through some combination of future tax hikes and spending cuts.
The False Promises in President Trump’s Tax Plan
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The president’s claim also defies history. Wages have long stagnated, despite tax cuts in the 1980s and 2000s, while profits, shareholder returns and executive pay have soared. Profits, whether lifted by favorable economic conditions, by tax cuts or by both, have not translated into employee raises and have instead been used for other purposes.
One is to buy back stock, which lifts share prices and, by extension, executive compensation.
.. Following a huge one-off corporate tax cut in 2004, big piles of corporate cash were also used to pay dividends to shareholders, settle legal issues and finance severance packages for layoffs.
.. Mr. Trump has proposed cutting the top corporate rate from 35 percent to 15 percent, a point he emphasized on Wednesday despite warnings from his economic advisers that a cut that sizable would cause the deficit to explode... he analysis showed that the proposed Trump tax cuts would lift after-tax income for the
- top 1 percent of taxpayers by at least 11.5 percent (or an average annual tax cut of $175,000), compared with a barely perceptible
- 1.3 percent for taxpayers in the middle (or $760 in average tax savings).
.. The question is how House Republicans will deal with those potential deficits. Many of them have built their reputations as fiscal hawks.
Right-Wing Books, Wrong Answers
Dinesh D’Souza’s “The Big Lie: Exposing the Nazi Roots of the American Left” is a jujitsu exercise that argues that only Donald Trump’s G.O.P. can “denazify” a U.S.A. in thrall to liberal totalitarianism.
.. But the two books are also sometimes weirdly similar, making them respectable and disreputable embodiments of the same crisis in the right-wing mind.
.. For Flake, as for many Republican critics of the current president, Goldwater-to-Reagan conservatism is the true faith that Trump has profaned, to which the right must return
.. His imagined G.O.P. would no longer need to “ascribe the absolute worst motives” to liberals, “traffic in outlandish conspiracy theories,” or otherwise engage in the kind of demagogy that informs, well, Dinesh D’Souza’s recent work.
.. But because D’Souza has become a hack, even his best material basically just rehashes Jonah Goldberg’s “Liberal Fascism” from 10 years ago, and because D’Souza has become a professional deceiver, what he adds are extraordinary elisions, sweeping calumnies and laughable leaps.
.. To pick just one example: It would be nonsense at any juncture to argue that because famed Indian-fighter Andrew Jackson was a Democrat and the Nazis admired the expulsion of the Indians, contemporary Democrats are basically Nazis. To make the argument during a Republican presidency that has explicitly laid claim to Andrew Jackson even as Democrats disavow Old Hickory is so bizarre that the term “big lie” might be usefully applied.
.. the senator and the demagogue both think that conservatives need to … cut social programs in order to cut taxes on the rich.
.. So long as they are not broken, the G.O.P. has two options. It can follow Flake’s lead and be a high-minded party of small-government principle, disavowing bigotry and paranoia — and it will lose elections
.. Or it can follow D’Souza’s lead (and Trump’s, now that his populist agenda seems all-but-dead) and wrap unpopular economic policies in wild attacks on liberalism. With this combination, the Republican Party can win elections, at least for now — not because most Americans can be persuaded that liberals are literally Nazis, but because liberalism’s intolerant and utopian tendencies make people fear the prospect of granting progressives political power to match their cultural hegemony.
Winning this way is a purely negative achievement for the right, a recipe for failed governance extending years ahead.
.. leaders and activists and donors to have an intellectual epiphany, and to realize that the way up from Trumpism requires rethinking the policieswhere Jeff Flake and Dinesh D’Souza find a strange sort of common ground.