Tag Archives: Social Security

NY, CA, NJ Governors Assail Republican Tax Plan as ‘Evil in the Extreme,’ a Wrench to Nation’s Economic Engine

Blue State governors including New York’s Andrew Cuomo hope their Republican Congressmembers will do the right thing for their constituents; otherwise, they raise the specter of court challenges to Republican Tax Plan © 2017 Karen Rubin/news-photos-features.com

by Karen Rubin, News & Photo Features

Governors of New York and California and the Governor-Elect of New Jersey and California joined forces to condemn the Republican tax plan as a “stake in the heart” of the nation’s economic engine, a cynical ploy to punish Democratic-majority states, and only the first-step toward generating such an increase in the national debt to justify cuts in Medicare, Social Security, Medicaid, CHIP and other social programs, and threatened to challenge the legality of elements of the tax plan should it become law.

In a joint press call, New York Governor Andrew Cuomo, California Governor Jerry Brown and New Jersey Governor-Elect Phil Murphy and using phrases such as “evil,”  “nefarious” and “cynical,” raised issues of the legality of elements of the Republican tax plan, which shifts $1.5 trillion in wealth from middle class and working families to the wealthy  – indeed, 50% of the tax cuts go directly into the pocket of the top 1% – through lowered tax rates, elimination of the AMT (Alternative Minimum Tax), reductions if not elimination in the Estate Tax (which only impacts 2 out of 1000 families now), and new rules enabling the wealthiest to shelter tax through pass-throughs.

But the Republicans pay for the cuts by largely eliminating or significantly reducing the deductibility of state and local taxes, including property taxes, effectively double-taxing, something that has not existed since income taxes were first implemented in 1913, which disproportionately targets 12 states that happen to vote Democratic and also happen to be the donor states that account for 40% of the nation’s gross domestic product (GDP). A similar effort during the 1986 Reagan tax reform effort was defeated by both Republicans and Democrats. The governors say this may be challenged as unconstitutional double-taxation.

Other provisions, such as establishing a legal framework for “personhood” may also be challenged as unconstitutional.

The way the Republican tax plan is structured, it shifts wealth from the 12 “donor” (Democratic-majority) states, to the rest of the country, by eliminating or dramatically reducing the tax deductibility of state and local taxes, including property taxes. In effect, it makes those states structurally uncompetitive by effectively increasing taxes by 20-25 percent for homeowners, may reduce home values by that amount, as well as make it difficult for schools (which account for 60-65% of New Yorkers’ property taxes and 40% of California’s) to raise the revenue they need to property function. But while individuals lose the deductibility of SALT, corporations do not.

In a further blow to public education and stripping away of the separation of Church & State, the Republicans would allow the tax-exempt 529 funds, created to fund college, to be used for K-12 education for parochial and private schools, even homeschooling. (This is on top of repealing the Johnson Amendment, opening floodgates of “charitable” contributions to religious institutions to become political PACs; a particularly insidious breach of the Constitution’s Establishment clause because the religious leader preaching from the pulpit has a special ability to coerce.

The governors held at the hope that the wildly unpopular Congress (only 13% approval) and the most unpopular president in history (33% approval), will recognize the tax plan is similarly wildly unpopular, with barely 20% support, and that Republican Congressmen who have to stand for election in 2018, will do what is best for their constituents.

The Senate version, which eliminates the individual mandate from the Affordable Care Act (Obamacare), would result in 13 million more people without health insurance by 2025, and 10 percent annual increases in premiums on everyone else.

The bill also “pays” for the tax cuts to the richest Americans and corporations by eliminating the deductibility of student loan interest, tax credits for renewable energy, and opens the way for drilling in the Arctic National Refuge, and other provisions which help the upward mobility of working families and middle class striving to achieve the American Dream.

The governors held out a glimmer of hope that enough of the Republicans (the only ones who voted in favor of the tax plan) would vote for their constituents’ interests.

“The tax plan that passed Senate, the House, and is headed to reconciliation, is a long way from done. It is a fraud on the American people. They talk about tax cuts for middle class and working people, but what it is, is tax cut for the rich – 50% of the tax cuts go to the top 1%. That’s an inarguable fact. Their theory isn’t new or novel. It’s ‘trickle down’ on steroids.” He argued that instead of corporations taking their tax cuts to raise wages for workers or create more jobs  through investment, corporations in the past have pocketed the extra cash or used it to buy back stock (raising the share prices) or paying dividends.

“To add insult to injury,” Cuomo said. “the tax cut is then targeted at 12 states that happen to be Blue States where they target eliminating state and local deductions. People don’t understand what that will do, but it will be devastating for states. In essence, it is an increase in property taxes and state income tax only on those 12 states. It puts us at a structurally competitive disadvantage because structurally our taxes will be higher.” That gives residents additional complaint about their government (Republicans even now charge that New York’s taxes are high because of mismanagement, or lavish spending on services). Cuomo countered the claim by Republicans that the poorer states somehow subsidize the public services of the richer states.  New York, California and New Jersey are donor states, which means we put more into the [federal] till than we take out. This aggravates and enhances the injustice where we are subsidizing the other states, and now you’re using New York and New Jersey as a piggybank to finance tax cuts in other states.

“That amounts to political retaliation through the tax code. That’s why they passed it with only their own votes,” Cuomo charged.

California Governor Jerry Brown assailed the Republican tax plan saying, “the most immediate evil of this cynical maneuver called the tax bill is to further divide America when we are at one of our most divisive periods in history. The idea that a president and representatives only in the majority would use that power to penalize 12 states – most of which voted strongly against this president– is not going to bring country together. We are divided while some of our most important competitors are getting more unified, authoritarian. We need to come together. This will further divide blue states from red, Democrats from Republicans. It is evil in the extreme. It exacerbates inequality….It’s not right. It won’t stand.”

New Jersey Governor-Elect Philip Murphy further expounded on the devastating impact in terms of widening inequality and continuing down the awful path of us vs Washington leadership.

“It is based on the trickle down theory, which we have seen time and again doesn’t work. Executives get paid better, the gap between the top of corporate food chain and bottom widens; shareholders benefit from buybacks while working people are neglected. It is a scam at the ultimate extreme. On more than one occasion we all heard, when asked for the rationale, the awful answer [from Republicans] was ‘it is our donors, our donor base will dry up if we don’t.’ We saw the chaos Friday night, literally lobbyists hand-writing in pen, amending the bill. This is as bad as it gets.

“But in a ‘glass half full’ sense, as Governor Cuomo stated,  It’s not over yet. This is the ninth inning. Each of our states have Republican House members. This is beyond Republican, Democrat; it is a clear question of whether you are representing the constituents who elected you. Black & white.”

“The changes in the SALT deduction, are particularly problematic, Murphy said. “That’s been part of the tax code since income tax became legal in 1913. For over 100 years, Congress realized taxing people twice is unfair. We are the biggest odnor states in terms of the federal money we give. This will only make it worse.

“The stronger we are together, the more numbers, the more locked arms, we fight together as a team. There is a lot to be said for that. I am honored to be with you.”

Asked what actions, beyond political pressure on Republican members of Congress, the governors might take, they said that just as the Republicans, the day after Obamacare was signed into law, pledged to repeal and replace, they would also take whatever means – even court challenges– to repeal and replace this tax law.

“We’re looking at the legality now. [SALT deductions] has been in the tax code since it started over 100 years ago. This is double taxation – they are taxing taxes, this from the party that’s against taxation, redistribution [or what Republicans used to condemn as “class warfare”]. This is redistribution in an exponential form –taking from richer states and subsidizing a tax cut in less wealthy states. Hypocritical. Everything they said were against: double-taxation, taxing tax for first time, redistribution state to state, so may well be illegal, unconstitutional. We’re looking at it.”

“There may be some legal action but this is a quintessentially political challenge,” Governor Brown stated. “Our job is to communicate the fraudulent and nefarious character of this tax bill – the way it proceeded, which John McCain said follows no normal pathway. We want to make sure our members of Congress know they are hurting New York, California, New Jersey but also hurting America. We are the key elements of America’s engine of prosperity, and when Trump and his allies attack New York, New Jersey, California, they are attacking the vital seams of the American economy. That’s stupid. They will regret it, and we will do everything we can to convince our Republican representatives that the right thing to do is defeat.

Murphy said they are working with state Attorneys General “to tear up all the floor boards, to the fullest extent of law, and challenge this. There are 500 pages of amendments, a lot handwritten. I am betting there are flaws, holes. If we don’t succeed in the next few days, we will have to take this to the limit.

“This is double taxation and I’m not sure it’s legal,” said Cuomo. “We will find out if it is. But Governor Brown’s point is that it is counterproductive. These 12 states are 40% of GDP. If you say this will help the American economy, how do you do that by assaulting 12 states that are 40% of GDP: this will be negative for our states and regional economies. No doubt about that.”

“Attacking the innovation of NY, CA, NJ and others is just a dumb move, only explained by the desperate situation the Republican leadership find themselves,” Governor Brown added. “This president is the most unpopular is history. They are riding a dead horse in this tax bill, acting irrationally, not in interest of country, throwing a wrench into engine of economy.”

“The more people understand, the more people understand how unfair, divisive and harmful it is to them individually,” Cuomo commented. “The problem is, there is so much news, so much happening. This is so complicated – elimination of state and local taxes but the more people understand it, the more they are against it. Congresspeople and Senators ultimately have to go home, and if they vote for this, they are voting against the interests of their constituents, and they have election next year. Ultimately democracy works. A congressperson who votes for this, there’s no going home again.

“I’m an optimist for the simple reason that we all believe in a different America than this bill articulates,” Murphy said. “The more people understand what’s in this thing, the more actively they push back. What it will do for higher education by repealing tax deduction for student loans, stripping credits for renewable energy, opening Arctic to drilling, on and on –repealing the individual mandate in ACA – the more people realize what’s at stake, the more collectively they say this can’t go forward.

Largely eliminating the SALT deductions, Cuomo said, contradicts the Republican claim their tax plan is supposed to spur the economy. “But targeting 40% of GDP, then saying that’s how you are going to spur economy, by putting arrow into economic heart of these 12 states? There are predictions it will drop the value of homes in our states because property taxes in effect will go up 20-25% over night. If you drop the value of homes, disrupt the whole financial system. Mortgage foreclosures. I don’t think they understand what they are doing.

“We talk about [eliminating SALT deductions] as if it were a new concept,” Governor Cuomo said. “It’s not new. They proposed eliminating SALT during Reagan’s time. At that time, Democrats and Republicans both said it was wrong and defeated it. The difference now is the political extremism and their willingness to divide, and the political extremes they will go to.

“This is only step one of their plan – we know what their plan is, because not new, we’ve seen the playbook. Step one is tax cuts for the rich. Step 2, is to drive up the debt, the deficit, and then come back and say we have $1.5 trillion debt that we created (by cutting taxes for rich), and now we have this debt, we have to address it by cutting government spending. Where will they go? The right to Medicaid, healthcare for poor people. The right to CHIP for poor children, Right to housing programs, food stamps, etc. That’s inevitable. They are creating the debt that will then justify their philosophical step to cut government spending to hurt the poorest Americans.”

“Look at this in its entirety, beyond SALT,” Murphy added. “This is their way to cut Medicaid, Medicare, Social Security. It is the height of hypocrisy from the so-called deficit hawks. Look at higher education and student loans, Obamacare individual mandate, Seen result of trickle down. Pass through. Taken in its entirety, the Republican tax plan is exceedingly damaging not just to our states, but entire country.”

“Republicans saw Obamacare passed and the next day they started Repeal & Replace,” Cuomo said. “If they do this, the next day, we will start the repeal and replace of the divisive Tax Act.”

None of them mentioned, but should have, the increasing pressures on the federal government for disaster relief from climate catastrophes (hundreds of billions of dollars in 2017 alone), the need to address the opioid crisis, and to rebuild and mitigate infrastructure.

See also:

Republican Tax Scam: They Don’t Care 85% Oppose. Here’s Why

Republican Tax Plan is Attack on Blue States; Fight Back by Holding Money ‘in Escrow’

Ready the Revolution: GOP Tax Plan Decimates Middle-Class, Gives Rise to New American Aristocracy

Trump Selling Tax Plan in Missouri, the Show Me State: This is going to cost me a fortune, this thing — believe me.

Democrats Should Shut Down Government over Republican Tax Scam

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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

Brooklyn Brawl: Democrats Clinton & Sanders Debate Universal Health Care, Social Security, Supreme Court & Women’s Reproductive Rights

Democratic Presidential Candidates Hillary Clinton and Bernie Sanders meet for a debate moderated by CNN at the Brooklyn Navy Yard in Brooklyn, ahead of the April 19 New York State primary © 2016 Karen Rubin/news-photos-features.com
Democratic Presidential Candidates Hillary Clinton and Bernie Sanders meet for a debate moderated by CNN at the Brooklyn Navy Yard in Brooklyn, ahead of the April 19 New York State primary © 2016 Karen Rubin/news-photos-features.com

Ahead of the April 19 New York State Primary, the gloves came off between the two contenders for the Democratic presidential nomination, former Secretary of State and New York Senator Hillary Clinton and Vermont Senator Bernie Sanders, at what is being called “The Brooklyn Brawl” – the Democratic Debate at the Brooklyn Navy Yard. 

The confrontation was the most contentious to date, but still substantive with both candidates making strong arguments on major issues. 

Here are annotated highlights from the “Brooklyn Brawl” – the debate between Democratic contenders for the nomination for president, former Secretary of State and New York State Senator Hillary Clinton and Vermont Senator Bernie Sanders, based on a transcript provided by CNN, the news organization that hosted the debate, April 14. 

In this section, the candidates debate universal health care, free college, the US Supreme Court, and for the first time in all the debates, what the Supreme Court means for women’s reproductive rights. 

Universal Health Care, Free College, Supreme Court

Senator Sanders, you’re promising health care and free college for all, and those plans would be met with both political and practical challenges. The nonpartisan Committee for a Responsible Federal Budget says your initiatives would cost up to $28 trillion and, even after massive tax increases, that would add as much as $15 trillion to the national debt. How is this fiscally responsible? 

SANDERS: Well, first of all, I disagree with that study. There are many economists who come up with very, very different numbers.

For example, we are the only country, major country on Earth, that does not guarantee health care to all people, and yet we end up spending almost three times what the British do, 50 percent more than the French. My proposal, a Medicare-for-all, single-payer program, will save (APPLAUSE) will save middle-class families many thousands of dollars a year in their health care costs. Public colleges and universities tuition free? Damn right. That is exactly what we should be doing. (APPLAUSE)

“And I’d pay for that — I’d pay for that by telling Wall Street that, yeah, we are going to have a tax on Wall Street speculation, which will bring in more than enough money to provide free tuition at public colleges and universities and lower the outrageous level of student debt.

“Wolf, we have seen in the last 30 years a massive transfer of wealth from the middle class to the top 0.1 percent. The establishment does not like this idea, but, yes, I am determined to transfer that money back to the working families of this country. (APPLAUSE)

Former Secretary of State and NYS Senator Hillary Clinton © 2016 Karen Rubin/news-photos-features.com
Former Secretary of State and NYS Senator Hillary Clinton © 2016 Karen Rubin/news-photos-features.com

CLINTON: Well, again — again, I absolutely agree with the diagnosis, the diagnosis that we’ve got to do much more to finish the work of getting universal health care coverage, something that I’ve worked on for 25 years. Before there was something called Obamacare, there was something called Hillarycare. And we’re now at 90 percent of coverage; I’m going to get us to 100 percent.

“And with respect to college, I think we have to make college affordable. We are pricing out middle-class, working, and poor families. There’s no doubt about that.

But I do think when you make proposals and you’re running for president, you should be held accountable for whether or not the numbers add up and whether or not the plans (APPLAUSE) are actually going to work.

“And just very briefly, on health care, most of the people who have analyzed what Senator Sanders put out — remember, he had a plan for about, I don’t know, 18, 20 years. He changed in the middle of this campaign. He put out another plan. People have been analyzing the new plan. And there is no doubt by those who have analyzed it, progressive economists, health economists, and the like, that it would pose an incredible burden, not just on the budget, but on individuals. In fact, the Washington Post called it a train-wreck for the poor. A working woman on Medicaid who already has health insurance would be expected to pay about $2,300.  

“The same for free college. The free college offer — you know, my late father said, if somebody promises you something for free, read the fine print. You read the fine print, and here’s what it says.  

“The fine print says this, that it will — the federal government will cover two-thirds of the cost and require the states, even those led by Republican governors to carry out what the remaining one-third of the cost.”

SANDERS: We are not a country that has the courage to stand up to big money and do what has to be done for the working families of the country. (APPLAUSE)

CLINTON: We have a difference of opinion. We both want to get to universal health care coverage. I did stand up to the special interests and the powerful forces, the health insurance companies and the drug companies. (APPLAUSE)

“And perhaps that’s why I am so much in favor of supporting President Obama’s signature accomplishment with the Affordable Care Act, because I know how hard it was to get that passed, even with a Democratic Congress. So rather than letting the Republicans repeal it or rather starting all over again, trying to throw the country into another really contentious debate, let’s make the Affordable Care Act work for everybody let’s get to 100 percent coverage, let’s get the cost down, and let’s guarantee health care.”

Social Security

BLITZER: Secretary, let’s talk about Social Security, another critically important issue. Senator Sanders has challenged you to give a clear answer when it comes to extending the life of Social Security and expanding benefits. Are you prepared to lift the cap on taxable income, which currently stands at $118,500? Yes or no, would you lift the cap? 

CLINTON: I have said repeatedly, Wolf, I am going to make the wealthy pay into Social Security to extend the Social Security Trust Fund. That is one way. If that is the way that we pursue, I will follow that.

“But there are other ways. We should be looking at taxing passive income by wealthy people. We should be looking at taxing all of their investment.

“But here’s the real issue, because I — I’ve heard this, I’ve seen the reports of it. I have said from the very beginning, we are going to protect Social Security. I was one of the leaders in the fight against Bush when he was trying to privatize Social Security.

“But we also, in addition to extending the Trust Fund, which I am absolutely determined to do, we’ve got to help people who are not being taken care of now. And because Social Security started in the 1930s, a lot of women have been left out and left behind.

“And it’s time that we provide more benefits for widows, divorcees, for caregivers, for women who deserve more from the Social Security system and that will be my highest priority.” (APPLAUSE)

Vermont Senator Bernie Sanders © 2016 Karen Rubin/news-photos-features.com
Vermont Senator Bernie Sanders © 2016 Karen Rubin/news-photos-features.com

SANDERS: Now, we’ve got — here is the issue. Your answer has been the same year after year. In fact, the idea that I’m bringing forth, I have to admit it, you know, it wasn’t my idea. It was Barack Obama’s idea in 2008, the exact same idea. (APPLAUSE)

“He called for lifting the cap, which is now higher — it’s at 118 — and starting at 250 and going on up. If you do that, you’re going to extend the life of Social Security for 58 years. You will significantly expand benefits by 1,300 bucks a year for seniors and disabled vets under $16,000 a year. What’s wrong with that? Are you prepared to support it?

CLINTON: I have supported it. You know, we are in vigorous agreement here, Senator.

‘You know, we’re having a discussion about the best way to raise money from wealthy people to extend the Social Security Trust Fund. Think about what the other side wants to do. They’re calling Social Security a Ponzi scheme. They still want to privatize it. In fact, their whole idea is to turn over the Social Security Trust Fund to Wall Street, something you and I would never let happen.

“I’ve said the same thing for years. I didn’t say anything different tonight. We are going to extend the Social Security Trust Fund. There is still something called Congress. Now, I happen to support Democrats and I want to get Democrats to take back the majority in the United States Senate so a lot of — a lot of what we’re talking about can actually be implemented when I am president.”

SANDERS: — maybe I’m a little bit confused.

“Are you or are you not supporting legislation to lift the cap on taxable income and expand Social Security for 58 years and increase benefits…”

CLINTON: I am…

SANDERS: — yes or no?

CLINTON: I have said yes, we are going to pick the best way or combination…

SANDERS: Oh, you — ah. (APPLAUSE) (BOOS)

SANDERS: OK.

CLINTON: — or combination of ways… (BOOS)

CLINTON: — you know… (BOOS)

CLINTON: — it — it’s all — it’s always a little bit, uh, challenging because, you know, if Senator Sanders doesn’t agree with how you are approaching something, then you are a member of the establishment. Well, let me say then…

SANDERS: Well, look (APPLAUSE)

CLINTON: — let me say this (APPLAUSE)

CLINTON: — we are going to extend the Social Security Trust Fund. We’ve got some good ideas to do it. Let’s get a Congress elected that will actually agree with us in doing it. 

SANDERS: Yes, Secretary Clinton (CROSSTALK) you are a member of the establishment. 

Supreme Court

Secretary Clinton, regarding President Obama’s nomination of Merrick Garland to the Supreme  Court. President Obama said earlier this week that he would not withdraw the nomination, even after the presidential election. If elected, would you ask the president to withdraw the nomination? 

CLINTON: I am not going to contradict the president’s strategy on this. And I’m not going to engage in hypotheticals. I fully support the president. (APPLAUSE)

“And I believe that the president — the president is on the right side of both the Constitution and history. And the Senate needs to immediately begin to respond. So I’m going to support the president. When I am president, I will take stock of where we are and move from there.” 

SANDERS: Well, there is no question. I mean, it really is an outrage. And it just continues, the seven-and-a-half years of unbelievable obstructionism we have seen from these right-wing Republicans.

“I mean, a third-grader in America understands the president of the United States has the right to nominate individuals to the U.S. Supreme Court. Apparently everybody understands that except the Republicans in Congress.

LOUIS: So, Senator Sanders, would you ask him to withdraw the nomination? 

SANDERS: Yes, but here is the point, and obviously i will strongly support that nomination as a member of the Senate. But, if elected president, I would ask the president to withdraw that nomination because I think — I think this.

“I think that we need a Supreme Court justice who will make it crystal clear, and this nominee has not yet done that, crystal clear that he or she will vote to overturn Citizens United and make sure that American democracy is not undermined.” (APPLAUSE)

CLINTON: You know, there is no doubt that the only people that I would ever appoint to the Supreme Court are people who believe that Roe V. Wade is settled law and Citizens United needs to be overturned. 

“And I want to say something about this since we’re talking about the Supreme Court and what’s at stake. We’ve had eight debates before, this is our ninth. We’ve not had one question about a woman’s right to make her own decisions about reproductive health care, not one question. (APPLAUSE)  

“And in the meantime we have states, governors doing everything they can to restrict women’s rights. We have a presidential candidate by the name of Donald Trump saying that women should be punished. And we are never asked about this.  

“And to be complete in my concern, Senator Sanders says with respect to Trump it was a distraction. I don’t think it’s a distraction. It goes to the heart of who we are as women, our rights, our autonomy, our ability to make our own decisions, and we need to be talking about that and defending Planned Parenthood from these outrageous attacks.”  

SANDERS: You’re looking at a senator and former congressman who proudly has a 100 percent pro-choice voting record, who will take on those Republican governors who are trying to restrict a woman’s right to choose, who will take on those governors right now who are discriminating outrageously against the LGBT community, who comes from a state which led the effort for gay marriage in this country, proudly so. (APPLAUSE)  Who not only thinks we are not going to — not defund Planned Parenthood, we’ve got to expand funding for Planned Parenthood. (APPLAUSE)

See also:

Brooklyn Brawl: Democrats Clinton & Sanders Debate Qualifications, Credibility 

Brooklyn Brawl: Democrats Clinton & Sanders Debate Gun Violence & Criminal Justice

Brooklyn Brawl: Democrats Clinton & Sanders Debate Climate Change, Energy & Environment

Brooklyn Brawl: Democrats Clinton & Sanders Debate National Security & Foreign Policy

Brooklyn Brawl: Democrats Clinton & Sanders Debate US-Israel Relations

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© 2016 News & Photo Features Syndicate, a division of Workstyles, Inc. All rights reserved. For editorial feature and photo information, email editor@news-photos-features.com. ‘Like’ us on facebook.com/NewsPhotoFeatures, Tweet @KarenBRubin