Tag Archives: government spending

Climate Disasters Should Force Re-think of Trump (‘Cheater-in-Chief’) Tax Plan

How will the nation fund the recovery from the increasingly devastating climate disasters? The lates record-breaking climate catastrophes, Harvey and Irma, should cause re-thinking of the investment in climate action and Trump’s plan to cut taxes for the wealthiest © Karen Rubin/news-photos-features.com

By Karen Rubin, News & Photo Features

Hurricane Harvey had just devastated Texas, the worst natural disaster up until two weeks later when the entire state of Florida was about to be destroyed by Hurricane Irma, as whole Caribbean island nations as well as the US territory of Puerto Rico had their infrastructure utterly decimated. And Hurricane Jose was on Irma’s tail. Meanwhile, Los Angeles and Oregon were being consumed by record wildfires. Congress had authorized $15 billion toward Hurricane Harvey relief and to replenish the nearly depleted funds of FEMA.

Indeed, in North Dakota on September 6, as Hurricane Irma was barreling toward Florida, Trump, the Tax-Cheat-in-Chief, gave an incoherent speech touting his tax plan that began with his incredulity in discovering that North Dakota was undergoing a massive drought.

“I just said to the governor, I didn’t know you had droughts this far north.  Guess what?  You have them.  But we’re working hard on it and it’ll disappear.  It will all go away,” Trump said.

Accuweather is projecting the cost of Harvey and Irma alone at $290 billion, or 1.5% of total GDP, which would erase the growth of the economy through year-end, according to Dr. Joel N. Myers, president and chairman.

That’s also more than one-fourth of the $1 trillion that Trump proposed for a 10-year infrastructure plan. Where will the money come from? And if all infrastructure spending has to be directed to Texas and Florida, where does that leave the rest of the country? Not to mention the $1 billion Trump is demanding as down payment on a $70 billion border wall.

Does this get you thinking that Trump and his administration, especially EPA Administrator and shill for the oil industry Scott Pruitt, should rethink their self-serving notion of climate change denial (self-serving because it is used to fuel their argument that they can overturn environmental regulations on the massively profitable fossil fuel industry)? Of course not.

But it should also cause them to rethink their totally corrupt plan for tax reform which is intended to starve the federal government of funds, balloon the budget deficit and national debt, all to shift more of wealth to the already fabulously wealthy. Especially when so many people have lost their businesses and jobs, which will certainly impact tax revenues.

Let’s just consider for a moment what taxes are supposed to be for. And yes, a considerable amount goes to pay for interest on bonds, but bonds are what are used to pay for infrastructure – they represent an investment in the future. And as we are considering how to replace the destroyed and decimated infrastructure, why not build back with sustainability in mind.

Just as in his speech declaring his decision to withdraw the US from the Paris Climate Agreement (forged with US leadership and signed by 195 countries), Trump, who took a $900 million tax deduction on his failed Atlantic City casino and probably has never paid 40% tax in his life,lies to rationalize his tax plan, beginning with the lie that the US is the highest taxed nation in the world (not true) and that workers wages will increase if only shareholders and CEOs and the wealthiest 1% could keep an even greater percentage of their money (history shows the opposite).  (See New York Times, The False Promises in President Trump’s Tax Plan)

Remember: the wealthiest people used to be taxed at 90% – that was after World War II when the nation had to rebuild its treasury. We were able to afford the GI Bill which probably did more to create a middle class than anything since the New Deal. Now the wealthiest pay something between 35 to 40% – except that they don’t.

Trump (and Ryan) want to give a $170,000 annual windfall to the wealthiest Americans, while crumbs ($700) to the middle class who will lose the only tax deductions they can use.  $170,000 times four years worth mean in terms of free money (from tax-paying schnooks) is a lot of dough to invest in politicians and policy with a spectacular return: policies like enabling Big Pharma Sharks to hike up life-saving drugs by 5000%; Oil Barons to make sure incentives for wind and solar energy don’t help these industries develop into competitors; real estate developers who can delight in the tax advantages that let them take a $900 million deduction and build without interfering regulations on lands that are needed to soak up flood waters and health insurance companies to raise premiums to pad profits.

Now this nation is looking at more than $290 billion just to recover from the climate disasters which are becoming more and more frequent, hitting the high density developed urban centers.

If taxes for those who have the means to pay don’t cover the cost, who does? Ryan and the Republicans love to talk about “sacrifice” but the only ones they demand sacrifices from are not the wealthiest or the corporations, but Social Security and Medicare recipients, struggling middle class kids who need to take out loans to pay for college. Their concept is to take money out of the consumer economy, which starts a downward unvirtuous cycle of economic contraction. How do we know?” Because we have seen this movie before: the Bush tax cuts. Meanwhile, median income has risen to its highest levels in 1999 (under Bill Clinton) and 2016 (under Barack Obama) and their tax-and-spending plans.

The Trump/Ryan tax “plan” requires a federal budget that slashes spending for infrastructure, for research and development, for education, for environmental protection (and of course, eradicating any mention of climate change), even slashing spending for diplomacy and foreign aid. It depends on slashing Medicaid and subsidies to keep health insurance affordable (that’s why they are so desperate to repeal Obamacare).

It slashes the tax rate for corporations which already do not pay the nominal 35% rate. Many highly profitable corporations – including General Electric, Pepco Holdings, PG&E Corp., Priceline and Duke Energy – paid nothing into federal coffers from 2008-2015 yet benefit from all the services the government provides including roads, public safety, an educated workforce, mass transit, a military to defend their shipping.

To get to a tax cut without obscenely increasing the national debt, the Republicans say they will get rid of “loopholes” like the mortgage credit and property taxes – that would only complete the decimation of the Middle Class and destroy any semblance of an American Dream. What would make more sense, if they really cared to “reform” the tax code and stop the income distribution from middle class to the already fabulous rich, is to take away the mortgage tax credits on 2nd, 3rd homes and such, and take away the many special deductions that real estate developers like Trump has benefited from, as well as the loopholes that let hedge fund managers shield all but a fraction of their income from taxes that wage-earners pay.

Indeed, the policies that Trump are proposing – specifically, eliminating the tax deduction for state and local property taxes – would hurt blue-states that tend to have higher state and local taxes because they tend to have higher property taxes but provide more services and get less in federal payments than they send to the government, while red-states that have low state and local taxes (and crappy schools and health care) get more from the federal government (paid for by blue states) than they send.

And what about Puerto Rico. which already was in economic disaster – having defaulted on $70 billion in debt – and basically written off by the US government. It’s infrastructure is now totally destroyed. How will it be rebuilt? Here’s what I imagine:  Trump is so transactional, I can see a foreign country (China?) with big bucks and an interest in having a foothold in the Western Hemisphere buying Puerto Rico from the US. After all, what is $100 billion or $200 billion to put the island right?

Of course Trump’s tax “reform” plan – sketched out as if on the back of an envelope without any analysis – is really all about tax cuts to the wealthiest and to corporations. As Hillary Clinton said during a debate (which she won): “trickle down economics on steroids” from the guy who took a $900 million deduction for a failed real estate deal, which taxpayers – normal working stiffs – wind up paying for.

Those who have actually analyzed the plan have said that the wealthiest people – who have done astronomically well for decades, while middle class Americans have scarcely had a salary increase in 40 years, so that the gap between rich and poor has reached Grand Canyon proportions – would get a tax windfall of $170,000 a year, while middle class families would get something like $700. Where do the 1 percenters put that extra money which they scarcely need? Well, they invest in buying politicians and influencing policy, of course.

Tax “reform” figures into the Trump obsession with repealing Obamacare and leaving 32 million people without health insurance. It figures into the administration’s dismissal of the Gateway Tunnel project so important to the New York region’s infrastructure and economy.

But now, Trump’s Republican states are being whacked with climate catastrophes, and the money has to come from somewhere.

And let’s also be reminded that the growth in the economy – first, saving the nation from plunging into another Great Depression, and now rebounding to the highest median income, lowest unemployment rate ever and highest rate of health insurance coverage while reducing the poverty rate – happened because of Obama Administration policies and would have been even more effective in terms of raising wages and living standards if the Trump Administration did not steamroll back policies, like overtime pay, parental leave, and federal minimum wage and obstruct infrastructure development and the transition to clean, renewable energy.

People remark that the devastation in their neighborhoods from these massive climate disasters is like a bomb went off. Well, in wartime, taxes are raised – that’s how the rate on the wealthiest hit 90%, to pay off the World War II debt. This is wartime. This nation has to rebuild, and sustainably, responsibly. We need to invest in 21st and 22nd century technologies, to keep the United States a global leader. Otherwise, we will cede our leverage to China which has basically embraced the American model of spreading its political ideology (nominally, “Democracy”) through capitalism (nominally “free market” as opposed to centralized control) and is literally buying up influence over Africa and Asia.

Of course, Trump’s tax plan is Paul Ryan’s tax plan (Trump never actually had a plan), and the Republicans are content to let Trump destroy the nation and end the social safety net including Medicare, Social Security and Medicaid, and possibly embroil us in World War III, until they can get jam through the tax plan they have coveted since Reagan.

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© 2017 News & Photo Features Syndicate, a division of Workstyles, Inc. All rights reserved. For editorial feature and photo information, go to www.news-photos-features.com, email editor@news-photos-features.com. Blogging at www.dailykos.com/blogs/NewsPhotosFeatures.  ‘Like’ us on facebook.com/NewsPhotoFeatures, Tweet @KarenBRubin

Trump Budget is Criminal; Ryan & Republicans are Accomplices

Donald Trump delivers his joint address to Congress, as Mike Pence and Paul Ryan cheer him on. Trump’s 2018 budget may be unbelievably cruel and callous, but it mimics the principles that Ryan and the Republicans have been crusading for © 2017 Karen Rubin/news-photos-features.com

By Karen Rubin, News & Photo Features

It doesn’t matter that Trump’s preposterously named “A New Foundation for American Greatness” budget is “dead on arrival” according to even staunch Republican, Texas Senator John Cornyn. Much of it is the long-time wet dream of Paul Ryan and Republicans whose singular ambition has been to destroy the New Deal, Square Deal, Great Society. They would eliminate the minimum wage, child labor laws, food and product safety, Clean Air & Water protections, Social Security and Medicare and most notably Medicaid, sell off national parks and monuments to mining and oil and gas industrialists. And this is before taking into account tax “reform” that would take $2 trillion out of the national budget to put into the pockets of the wealthiest and corporations, so they have even more extra pocket change to spend on political campaigns.

Indeed, the Trump budget is everything that the Republicans have been dying to do, but didn’t dare. But Trump doesn’t care. He has shown that it really isn’t hard atall to cut the budget when you really don’t care what the numbers represent,when you have no clue and no interest.

The Trump Budget is built on “Trumponomics, as Office of Management and Budget Director Mike Mulvaney proudly exclaimed, “It’s a taxpayer-first budget, going line by line through the budget, trying to put yourself in the shoes of the people who are paying for those lines….What Trumponomics is and what this budget is a part of is an effort to get to sustained 3 percent economic growth in this country again..And by the way, we do not believe that that is something fanciful.”

Indeed, this is a “tough love” approach to force malingerers off things like food stamps – it’s not non-living wages paid by companies pocketing record profits that keep workers below the poverty line that’s the problem.

“Getting people back to work. Create an environment where people more comfortable staying at …We no longer measure compassion by the number of programs or number of people on programs. We measure success by how many get off programs and have success in lives.”

But the figures don’t actually add up.

Economists from across the spectrum say that the math that underlies the main selling point for Trump’s budget, that it will “balance the budget” in 10 years, is a crock. It doesn’t take into account the $1 trillion or so in tax cuts that will go entirely to the wealthiest and to corporations that Trump sketched out; it assumes a 3% rate of annual economic growth, which would mean 50% more economic activity, which everyone says is beyond pie-in-the-sky; and it actually double-counts $2 trillion, prompting headlines like this one from Slate, “Donald Trump’s budget is based on a hilarious accounting fraud” and “The dumb accounting error at the heart of Trump’s budget “ from Vox.

Health care a right, not a privilege? Trump’s budget projects a 28.3% DROP in spending for health services, $2 trillion less spending, over a 10-year period – despite the aging and increase in population. This includes a 27% decrease in spending for the Centers for Disease Control & Prevention (imagine another Ebola, Zika or Swine Flu outbreak); 25% drop in Substance Abuse and Mental Health Services Administration (even as Trumpcare will no longer include mental health or addiction), 25% less spending for research and training, including 25% cut for the National Institutes of Health (no interest in finding therapies or cures for Zika,  Alzheimers or “orphan” diseases that wouldn’t be profitable enough for Big Pharma); 40% cut for the Food & Drug Administration (let Big Pharma do what they will); 15% drop in food safety and inspection; 17% cut to the Consumer Product Safety Commission, 16% cut in already strapped Occupation and Mine Safety and Health spending even as he overturned regulations.

$1.4 trillion gap in infrastructure spending to repair decaying roads, bridges airports? Trump would cut Transportation spending by 25% cut (65% cut to National Infrastructure Investments; 50% cut to air transportation which is already woefully in need of upgrades); 28% cut to Education, Training, Employment and Social Services.

His cuts to environmental protection – on top of slashing regulations that give communities a fighting chance to protect their air, water and public health – amount to Hague Tribunal level of war criminality for what he will do to the planet, let alone our communities. The allocation is cut 27.1% – $132 billion worth – including a 34% cut in Pollution control and abatement, 42% cut in Regulatory, enforcement and research programs, 37% cut in Hazardous substance superfund ($330 million less in 2018).

Trump would end funding for the Clean Power Plan, international climate change programs, climate change research and partnership programs, and related efforts—“saving” over $100 million in 2018. He cuts out $129 million in funding for the EPA’s Office of Enforcement. He cuts out $233 million in 2018 for the EPA’s Research & Development (ie. climate change science). It eliminates more than 50 EPA programs, $347 million worth in 2018; and ends funding for specific regional efforts such as the Great Lakes Restoration Initiative and the Chesapeake Bay, amounting to $427 million in 2018.

Trump would cut General Science, Space & Technology spending by 14.7%, including 18.9% cut to General Science and basic research.

International Affairs would be cut nearly in half, including 26% cut in spending for Global Health programs; 74% cut in Refugee programs; 66% percent cut in International Disaster Assistance, 83% cut in “other” development and humanitarian assistance.”

(See the New York Times, “How Trump’s Budget Would Affect Every Part of Government”).

Setting aside for a moment that Trump and his billionaire friends don’t actually pay their fare share of taxes, nor do many profitable American companies which have stashed $2 trillion in offshore accounts, the Republicans’ approach is what Hillary Clinton correctly observed, “trickle down economics on steroids.” It didn’t work with Reagan or George W. Bush. And this is even worse.

No matter: the extremity of Trump’s proposed budget, the callousness of it, will give cover to Ryan and the House Republicans and make anything they do seem “moderate”, even “compassionate.” So they cut Medicaid by $600 billion instead of $866 billion and call it a “win” for the little people; they cut the State Department by 20% instead of 30% and pat themselves on the head; they cut the EPA by 25% instead of 31%.

 

Here’s what Senator Elizabeth Warren (D-Massachusetts) wrote: “Speaker of the House Paul Ryan says that Donald Trump’s new budget is ‘right on the target.’ That’s all you need to know about just how devastating Trump’s budget will be for working families in Massachusetts and across this country.

“It’s obscene:

  • $5 billion in cuts to public education
  • $73 billion in cuts to Social Security
  • $191 billion in cuts to food stamps
  • $610 billion in cuts to Medicaid (and that’s in addition to the $880 billion the House Republicans are slashing in their so-called “health care” bill)

“Those are just a few of the highlights. What else gets cut? Money for children’s health care, money to combat the opioid epidemic, money for medical research, money for the Corporation for Public Broadcasting, and so much more.

“This budget is ‘right on the target’ only if the target is to sucker-punch kids, seniors, the poor and the sick. If the Republicans make good on this budget, they could deliver the final blow to America’s working families.

We don’t build a future by ripping health care away from tens of millions of people. We don’t build a future by starving education, by letting our roads crumble and our bridges collapse, and by shutting down the big pipeline of medical and scientific research in this country.

“We build a future by making the investments in ourselves and all of our people – so the next kid can get ahead, and the kid after that, and the kid after that. We’ve done this before in our country, and we can do it again.

”Budgets aren’t just about dollars and cents. Budgets are about our values, and this budget is morally bankrupt,” Warren wrote.

Trump and the Republicans would cut out all the things that have “made America great,” and a world leader in innovation and entrepreneurship, not to mention the main tools for spreading democracy and human rights across the globe (through capitalist investment, which is what China and Russia are now doing).

This is the midst of an actually strong economy, near “full employment” and as we keep hearing, a record stock market.

The Trump budget is the essence of everything that Trump is doing to weaken the US as an economic power, a world power, and its ability to be a moral leader, that Reaganesque “beacon on a hill” of political righteousness.

As we marked Memorial Day this past weekend, a New York Times book review of “The Allure of Battle: A History of How Wars Have Been Won and Lost,” by Cathal J. Nolan, pointed out that “Generally, one side, usually the one with a smaller economy and population, becomes exhausted, and gives up. Talk about élan and audacity all you like, he counsels, but what wins wars is demography and economic strength.” That is to say, winning a war is more a matter of “hearts and minds” vs. “bombs and brigades” as we have been seeing in America’s longest wars, in Afghanistan and Iraq.

Everything that Trump has done so far (putting aside the fact that he is an illegitimate occupier of the Oval Office by selling out to an adversary government), will weaken the US as an economic power, a world power, and its ability to be a moral leader, that Reaganesque “beacon on a hill” of political righteousness.

Indeed, Trump, who cozied up to the Saudis while hectoring NATO allies and the G7, on his “epic” overseas trip, came back declaring “a home run”, while Germany’s Angela Merkel told Europe,  “We can no longer depend on the US or UK. We are on our own.”

New York State, along with other “blue” states like California, already send way more income tax money to Washington than we get back while the “red” states, which so pride themselves in low state taxes and low wages get far more than they send. Like tenants with a legal fight against their landlord, I would propose that New Yorkers collect their federal income tax money in an escrow account, to pay for services that should be paid by the federal government, such as police and security protection (which Trump is threatening to cut to New York and other states that don’t cooperate in his roundup of undocumented individuals), environmental restoration, health care for those whose subsidies have been eliminated, public schools, infrastructure repair, food stamps and school lunch program.

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© 2017 News & Photo Features Syndicate, a division of Workstyles, Inc. All rights reserved. For editorial feature and photo information, go to www.news-photos-features.com, email editor@news-photos-features.com. Blogging at www.dailykos.com/blogs/NewsPhotosFeatures.  ‘Like’ us on facebook.com/NewsPhotoFeatures, Tweet @KarenBRubin