Showing posts with label GOP voodoo economics. Show all posts
Showing posts with label GOP voodoo economics. Show all posts

Sunday, November 17, 2019

Louisiana Dem. Governor John Bel Edwards Wins Reelection

In another blow to Donald Trump's fantasy that he can invincibly mobilize his toxic base to defeat Democrats merely by tweeting and holding rallies,Democrat John Bel Edwards won reelection yesterday in Louisiana.  Among popular measures Edwards had oversee during his first term were Medicaid expansion and criminal justice reforms, plus passage of a sales tax to address the budget disaster left by his Republican predecessor, Bobby Jindal who, like GOP extremist Sam Brownback in Kansas proved GOP tax cut policies are disastrous.  A piece in the Washington Post looks at Edwards' win and the erosion of governorships held by Republicans during Trump's time in office.  Here are story excerpts:

Louisiana Gov. John Bel Edwards was elected to a second term on Saturday, overcoming opposition from President Trump and an increasingly polarized state electorate to hand Democrats their second major victory in a governor’s race over the past two weeks.
Edwards, 53, was running against Republican businessman Eddie Rispone, 70, in a runoff election after neither candidate won an outright majority of votes last month.
Edwards’s victory is another setback for Trump, who traveled to Louisiana twice over the past month to campaign for Rispone and sent a series of tweets urging Republicans to vote. [Trump's] The president’s popularity in the South has failed to prop up GOP candidates in two of the three states that held gubernatorial elections this year, allowing Democrats to gain governorships for the third consecutive year.
In Kentucky, Democratic Attorney General Andy Beshear unseated Republican Gov. Matt Bevin this month. In January, 24 of the nation’s governors will be Democrats, up from 15 at the end 2017.
The Louisiana election caps off a grueling campaign in which Edwards, a relatively conservative Democrat, worked to prove his party could still lead a state that has continued to drift to the right in the Trump era.
[Trump] The president made another pitch for Rispone on Saturday.  “Louisiana, 3 hours left, get out and Vote for @EddieRispone for Governor,” he tweeted. “Lower taxes and much more!”
But Edwards, who was minority leader in Louisiana’s House of Representatives before being elected governor in 2015, has remained relatively popular throughout his term and was optimistic his reelection bid could withstand the head winds of national politics, including the ongoing drama in Washington over the impeachment inquiry.
“We need to keep moving forward, and we can’t take a chance of going back,” Edwards said at a campaign event in New Orleans this past week.
After he succeeded Gov. Bobby Jindal (R), Edwards worked with a Republican legislature to balance the budget, imposing a sales tax increase. He also successfully fought to expand Medicaid under the Affordable Care Act, which extended coverage to nearly a half-million residents. The governor also pushed to hike teacher pay while working to drive down the state’s unemployment rate to the lowest level in more than a decade.
One of Edwards’s most high-profile accomplishments has been legislation reworking the criminal justice system in a state that had one of the nation’s highest and most racially unbalanced incarceration rates. The bipartisan legislation, which reduced sentences for some drug crimes and made it easier for some inmates to seek parole, could cut the state’s prison population by 10 percent over a decade, according to the Pew Charitable Trusts. Democrats have made a net gain in governorships for the third consecutive year. The party picked up seven governorships last year in the 2018 midterm elections, including winning several Midwestern states that Trump carried in 2016.
Democrats also gained a governorship in 2017, when Gov. Phil Murphy (D) replaced Republican Chris Christie in New Jersey in the same year that Virginia voters elected Gov. Ralph Northam (D) to replace former Democratic governor Terry McAuliffe.

Friday, August 23, 2019

Voodoo Economics May Be Catching Up with Trump/GOP

The stack market - actually the bond market - has been showing signs that the economy is slowing and that a recession might well begin in 2020 or before.  Recently job growth and GDP figures have been revised downward and manufacturers and consumers are feeling the adverse effects of Trump's insane trade wars with China and other nations.  And then there are America's farmers who have been dealt the double blow of Chinese tariffs and the impacts of climate change, particularly in the Mid-West, even as the GOP denies climate change is occurring.  To what ought to a shock to no one, the Trump/GOP tax cut for the wealthy and huge corporations - which only scattered crumbs for everyone else - has yet again proven that huge tax cuts for the top income brackets (i) do not pay for themselves, (ii) explode the deficit, and (iii) do not strengthen the economy overall. These three realities have been known since the days of Ronald Reagan, yet the GOP continues to live in a fantasy world.  A column in the New York Times looks at the slowing economy and the efforts of Trump and the GOP to shift blame from themselves.  Here are excerpts:

Almost four decades ago then-candidate George H.W. Bush used the phrase “voodoo economic policy” to describe Ronald Reagan’s claim that cutting taxes for the rich would pay for itself. He was more prescient than he could have imagined.
For voodoo economics isn’t just a doctrine based on magical thinking. It’s the ultimate policy zombie, a belief that seemingly can’t be killed by evidence. It has failed every time its proponents have tried to put it into practice, but it just keeps shambling along.
[W]henever tax cuts fail to produce the predicted miracle, their defenders come up with bizarre explanations for their failure.
 My favorite until now came from Art Laffer, the original voodoo economist and recent recipient of the Presidential Medal of Freedom. Why did George W. Bush’s tax-cutting presidency end not with a boom, but with the worst economic slump since the Great Depression? According to Laffer, blame rests with Barack Obama, even though the recession began more than a year before Obama took office. You see, according to Laffer, everyone lost confidence upon realizing that Obama might win the 2008 election.
 Trump has gone one better. As it has become increasingly clear that the results of his tax cut were disappointing — recent data revisions have marked down estimates of both G.D.P. and employment growth, to the point where it’s hard to see more than a brief sugar high from $2 trillion in borrowing — Trump has invented ever more creative ways to blame other people. In particular, he’s now claiming that the promised boom hasn’t arrived because his opponents are hexing the economy with bad thoughts: “The Democrats are trying to ‘will’ the Economy to be bad for purposes of the 2020 Election.”
 [B]laming the Fed for the tax cut’s fizzle won’t wash. For one thing, the Fed has actually raised rates less than in previous economic recoveries. Even more to the point, the Trump economic team was expecting Fed rate hikes when it made its extravagantly optimistic forecasts.
 The Trump tax cut was supposed to create a boom so powerful that it would not only withstand modest Fed rate hikes, but actually require such hikes to prevent inflationary overheating. You don’t get to turn around and claim betrayal when the Fed does exactly what you expected it to do.
 Since the Fed is unlikely to oblige, what else might Trump do? Officials have floated, then retracted, the idea of a cut in payroll taxes — that is, a tax break for ordinary workers, rather than the corporations and wealthy individuals who mainly benefited from the 2017 tax cut. But such action seems unlikely, among other things because top administration officials denounced this policy idea when Obama proposed it.
Trump has also suggested using executive authority to reduce taxes on capital gains (which are overwhelmingly paid by the wealthy). This move would have the distinction of being both ineffectual and illegal.
What about calling off the trade war that has been depressing business investment? This seems unlikely, because protectionism is right up there with racism as a core Trump value. And merely postponing tariffs might not help, since it wouldn’t resolve the uncertainty that may be the trade war’s biggest cost.
The truth is that Trump doesn’t have a Plan B, and probably can’t come up with one. On the other hand, he might not have to. Who needs competent policy when you’re the chosen one and the king of Israel?
Funny how the last GOP administration engaged in massive tax cuts and George W. left the country with the largest economic meltdown since the Great Depression.  The GOP truly never learns. 

Thursday, November 29, 2018

Kansas Voters Rejected Failed GOP Tax-Cut Experiment

Brownback, architect of Kansas' disastrous tax cuts.
Since the days of Ronald Reagan, the Republican Party has pursued the myth that tax cuts "pay for themselves" and result in a surge in the economy.  It's the same myth that Republicans used in arguing to pass their 2017 Trump/GOP give away to the very wealthy and corporations. Now, the deficit has exploded and no promised surge in investment or economic growth has taken place,  Most of the tax give away went to stock by-backs and shareholders who have stockpiled the money.  This same formula was used in Kansas to disastrous results.   In the last election, voters in Kansas did the unbelievable: they elected a Democrat as governor.  A piece in The Hill looks at Kansas voters' rejection of GOP voodoo economics which ought to send a message nationally - especially when millions of taxpayers find themselves unexpectedly owing money to the IRS in April, 2019, thanks to deliberate IRS under withholding guidelines.  Here are article highlights:
Former Kansas Governor Sam Brownback’s failed “red state experiment” has truly come to an end.
In rejecting Republican gubernatorial candidate Kris Kobach, who advocated restoration of the Brownback experiment, Kansas voters on Election Day put the final nail in the coffin of what even Republican leaders had come to see as a disastrous set of tax and spending cuts that ruined the Kansas economy. 
Kansas’s 2018 election should serve as a political lesson to our national leaders, and the experience of Kansas over the past several years should serve as a policy lesson. 
In 2012 and 2013, Republican Gov. Sam Brownback signed into law the largest tax cuts in Kansas history. The top state income tax rate fell by nearly one-third and passthrough taxes that affected mainly relatively wealthy individuals were eliminated. With the decline in revenues came significant spending cuts in numerous areas. 
“Our new pro-growth tax policy,” Brownback predicted, “will be like a shot of adrenaline into the heart of the Kansas economy.” The theory, one that should sound familiar, was that cutting taxes and regulations on the wealthy would lead to greater investment and innovation, new jobs, more rapid economic growth and a stronger middle class.
Brownback also called his plan “a real live experiment.” . . . But experiments can go badly wrong, and unfortunately Kansans were guinea pigs for one of the worst. It soon became clear that the Brownback experiment had failed to deliver on his promises.
Analysis by Menzie Chinn, a professor of public affairs and economics at the University of Wisconsin-Madison, found that after the enactment of the tax cuts, economic growth in Kansas fell well below its pre-Brownback trend and, by the spring of 2017, the rate of job growth in Kansas was not only lower than the rates in most of its neighboring states but less than half of the national average.
Brownback’s experiment was such a failure that his party turned against him. In 2017, the Republican-dominated legislature, overriding the governor’s veto, rolled back the tax cuts.
But some were not convinced, including Kris Kobach, who made a resumption of the Brownback experiment (with even deeper spending cuts) a fundamental part of his platform in the just-ended campaign. The voters of Kansas, however, had had enough, and his advocacy of the tax and spending cuts was critical to his defeat.
The same arguments used to sell the Brownback experiment were used to sell the $1.5 trillion tax cut signed into law by President Trump last year. Most of the benefits of the cuts went to those at the top of the income spectrum.
This is reminiscent of Kansas, where the extensive cuts in everything from education, health care and transportation to agriculture and higher education dragged down the state’s economy while the money that was accruing to the rich wasn’t being used to ramp up investment. 
The reason for the failure of the Brownback experiment, and the likely failure of the Trump tax cuts, is that they didn’t account for the ways that economic inequality today obstructs, distorts and subverts the pathways to economic growth that is strong, stable and broadly shared.
They ignore extensive evidence of what — in fact — drives economic growth and stability and can deliver improvements in living standards.
Instead, they reflect supply-side economics, as trumpeted by Arthur Laffer, who was a paid consultant for the Brownback plan and a volunteer cheerleader for the Trump tax cuts. Laffer’s theory of growth has been a foundation for economic policies since the 1980s.  
There is an alternative explanation for how the economy grows. . . . . It comes from ensuring that economic inequality doesn’t subvert our institutions — undermining our democracy, our government and the way the market works to the benefit of the few at the top of the income and wealth ladders, rather than the majority.
The voters of Kansas learned a bitter lesson and made sure history did not repeat itself. Leaders in Washington need to learn that lesson and look for ways to invest in a strong middle class for sustained and balanced economic growth.
Of course, the GOP will not heed this advice.  It will be up to voters and Democrats to repair the damage.

Monday, April 09, 2018

The Extinction of "Intellectual" Conservatives


Once upon a time the political and social right had serious intellectuals.  Those day are gone as what now passes as intellectualism on the right is embodied by hacks and mental midgets on Fox News and even more insane types at Breitbart and more scurrilous "news" outlets (what intellectual conservatives that existed have more or less exited the right wing media as if they were fleeing the sinking Titanic or Lusitania).   This reality was recently underscored by the hiring of a "conservative" columnist by The Atlantic who was then fired once some of his heinous views came to light.  Obviously, more serious vetting should have been undertaken, but the saga shows the danger of giving a platform to demagogues and misogynist in the quest for "balance."  A column in the New York Times looks at both the debacle at The Atlantic and the extinction of intellectual conservatism.  Here are excerpts:
The hiring-then-firing of Kevin Williamson followed a familiar script. A mainstream media organization hires a conservative in the name of intellectual diversity, then is shocked, shocked to discover that he’s dishonest and/or holds truly reprehensible views – something that the organization could have discovered with a few minutes on Google. But when the bad hire is let go, the right treats him as a martyr, proof of liberal refusal to let alternative viewpoints be heard. Why does this keep happening?
As others have pointed out, the real problem here is that media organizations are looking for unicorns: serious, honest, conservative intellectuals with real influence. Forty or fifty years ago, such people did exist. But now they don’t.
To understand why, let me talk about what I know: the field of economics. This happens to be a field with a relatively strong conservative presence compared to other social sciences, and as far as I can tell even contains considerably more self-identified conservatives/Republicans than hard science. Even so, trying to find influential conservative economic intellectuals is basically a hopeless task, for two reasons.
First,. . . What the right wants are charlatans and cranks, in (conservative) Greg Mankiw’s famous phrase. If they use actual economists, they use them the way a drunkard uses a lamppost: for support, not illumination.
The appointment of Larry Kudlow to head the National Economic Council epitomizes the phenomenon. . . . under Obama the director was always someone who was interested in real policy research, listened to what experts had to say, and was willing to change views in the face of evidence.  Obviously none of this is true in Kudlow’s case. He’s basically a TV personality, whose shtick is preaching the magic of tax cuts, and nothing – not the Kansas debacle, not the Clinton boom, not the strong job creation that followed Obama’s 2013 tax hike – will change his mind.
All this means that if you get a conservative economist who isn’t a charlatan and crank, you are more or less by definition getting someone with no influence on policymakers. But that’s not the only problem.
The second problem with conservative economic thought is that even aside from its complete lack of policy influence, it’s in an advanced state of both intellectual and moral decadence – something that has been obvious for a while, but became utterly clear after the 2008 crisis. . . . By the time the Great Recession struck, the right-leaning side of the profession had entered a Dark Age, having retrogressed to the point where famous economists trotted out 30s-era fallacies as deep insights.
But even among conservative economists who didn’t go down that rabbit hole, there has been a moral collapse – a willingness to put political loyalty over professional standards. We saw that most recently in the way leading conservative economists raced to endorse ludicrous claims for the efficacy of the Trump tax cuts, then tried to climb down without admitting what they had done.
What accounts for this moral decline? I suspect that it’s about a desperate attempt to retain some influence on a party that prefers the likes of Kudlow or Stephen Moore. People like John Taylor just keep hoping that if they toe the party line enough, they can still get on the inside. But so far this keeps not happening – and for sure it won’t get better under Trump.
Am I saying that there are no conservative economists who have maintained their principles? Not at all. But they have no influence, zero, on GOP thinking. So in economics, a news organization trying to represent conservative thought either has to publish people with no constituency or go with the charlatans who actually matter.
And I think that’s true across the board. The left has genuine public intellectuals with actual ideas and at least some real influence; the right does not. News organizations don’t seem to have figured out how to deal with this reality, except by pretending that it doesn’t exist. And that’s why we keep having these Williamson-like debacles.

Friday, April 06, 2018

Teacher Strikes: Exposing the GOP’s Achilles Heel

Oklahoma Gov. Fallin trashes teachers.
For many years now the Republican Party has pushed an agenda of huge tax cuts for the wealthy and large corporations best illustrated by the $1.5 trillion give away last December under the GOP/Trump tax bill.  Typically, Republican voters are induced to support this agenda by falling for the GOP's appeals to racism and/or right wing Christian religious extremism.  But constant tax cuts can go on for only so long before the larger public wakes up to the reality that this tax cut agenda is wreaking havoc on public education, state infrastructures, and other social services that average Americans want and support.  Paul Ryan may blame the federal budget debt on "entitlement spending" but even the dumbest soccer mom can grasp the reality that it was the GOP tax cuts that are the real root of the problem.  Now, teacher strikes in red states are helping to expose the GOP's Achilles heel: voters do not want public schools and necessary government programs gutted. The big question is whether Democrats can play on this growing realization that the GOP agenda does nothing for average voters.  A piece in New York Magazine looks at the situation.  Here are highlights:
On the surface, the wave of teacher strikes that has rippled through red America over the past month looks like a labor story; an object lesson in the power of solidarity, and the hazards of underpaying workers and then leaving them no source of leverage save walking off the job. And it certainly is that kind of story — but it is also a political one. After all, public workers can only gain leverage through a strike if a significant portion of the public rallies behind their picket line. It took the fortitude of West Virginia teachers to get this strike wave started — but it required the political weakness of the GOP’s prevailing ideology to keep it rolling.
Teachers scored improbable victories in West Virginia and Oklahoma by exploiting the biggest open secret in American politics today: The Republican Party and its voters have radically different political views.
The former has made cutting taxes on the wealthy and corporations its top economic priority on both the state and federal levels; the latter oppose such tax cuts by overwhelming margins. GOP office-holders have worked tirelessly (if unsuccessfully) to reduce federal spending on health care; most GOP voters would like to see such spending increased. Nearly all House Republicans have repeatedly affirmed their support for financing ever-lower taxes on the rich with draconian cuts to public investment in virtually everything but the military, including Medicare benefits; when pollsters referenced this reality to right-leaning voters in a 2012 focus group, the respondents found Paul Ryan’s agenda so absurdly offensive, they “simply refused to believe any politician would do such a thing.
The GOP has not made support for tax cuts (no matter the economic conditions, geopolitical circumstances, or resulting consequences for social spending) the first principle of its domestic agenda because that is a popular and rational governing ideal — but because it is an excellent value proposition to offer to well-heeled reactionaries in search of a medium-risk, high-return investment opportunity.
To this point, the GOP has paid no great electoral price for the fact that there is no significant constituency for its economic agenda; over the past decade, Republicans have managed to grow more fanatically committed to fiscal policies that their voters find abhorrent — and more politically powerful. A variety of factors have abetted this odd achievement, not least the fact that most voters pay far less attention to the details of policy than to identity-based appeals. Through “culture war” rhetoric and legislation, the GOP has established itself as the party of rural Americans, cultural traditionalists, gun enthusiasts, and the (proudly) white and native-born. The broad appeal of this reactionary brand of identity politics (combined with copious Koch network cash, the right’s vast propaganda apparatus, and a touch of voter suppression) has allowed the Republican Party to have its fringe fiscal agenda, and its electoral majorities, too.
Donald Trump tried to pay for his supply-side tax cuts by decimating Obamacare — but once doing the latter proved untenable, he and his allies were content to put the former on the nation’s credit card, just as George W. Bush had done with his tax cuts, years earlier.
But Oklahoma can’t print its own currency. On the state level, budgets have to balance. Congressional Republicans can obscure (and/or defer) the trade-offs inherent to “starving the beast” — GOP governors have no such luxury. And eight years after the tea party wave lifted far-right Republicans to unprecedented power in states all across the country, those trade-offs have become unmistakeable — especially to anyone with an investment in a (typical) red state’s public-school system.
The idea that the government has a responsibility to provide a quality K–12 education to all of its young people is among the least controversial in our politics. And yet, it is a notion that is nearly impossible to reconcile with the contemporary GOP’s theological commitment to ever-lower taxes. Talented educators must be wooed with competitive pay and benefits; textbooks must be regularly updated; curricula, revised. The disparity between the actual fiscal cost of guaranteeing universal access to a public education — and what conservative Republicans are prepared to spend on schools — is currently fueling a constitutional crisis in Kansas: The Sunflower State’s founding document requires its legislature to make “suitable provision for finance of the educational interests of the state” — a requirement that Republican legislators have routinely failed to meet, in the estimation of the Kansas Supreme Court.
Between 2008 and 2015, per-student education spending in Kentucky fell by 11.4 percent; in Oklahoma, by 15.6; and in Arizona, by 17.5. In all of these states, Republican legislators paired such disinvestment from education with tax cuts for high-earners and business interests. Even in these “conservative” states, it is highly doubtful that voters would have ever directly endorsed supply-side tax cuts financed by reductions in school spending, were such a matter put to the ballot. But now that the former have failed to produce the miraculous growth that Republicans promised — while the latter have yielded decaying textbooks, four-day school weeks, and teacher shortages — support for a change in fiscal priorities is overwhelming in deep-red Oklahoma.
The fact that the unpopular consequences of right-wing governance are becoming increasingly visible in red states does not guarantee the conservative movement’s imminent collapse; but it does create an opportunity for opponents of conservatism to launch a few wrecking balls in its direction.
This is the lesson that the striking educators are teaching us. When a well-organized movement — with genuine roots in “conservative” communities (and no plausible ties to George Soros or Nancy Pelosi) forces the GOP’s fiscal agenda to the center of public debate, the political terrain shifts — and conservatives struggle to stand their ground. Suddenly, Oklahoma Republicans can vote to take money from oil companies and give it to teachers; and those teachers can meet their offer with protests instead of gratitude.


Saturday, November 18, 2017

Oklahoma Tried the GOP’s Tax Plan. Now, It’s Electing Democrats.

Congressional Republicans are strive to pass on a national level what Oklahoma Republicans tried a few years ago with disastrous results (Kansas likewise used this template with equally horrific results).  Here in Virginia Ed Gillespie's attempt to do the same thing as in Oklahoma and Kansas went down in flames when he lost by 9% to Democrat Ralph Northam.  Apparently, Virginians are smarter than their countrymen/women in the Mid-West. What is telling about Congressional Republicans is that they care nothing about how the Oklahoma and Oklahoma tax cuts for the rich combined with slashing spending on education and social programs (i) nearly bankrupted the states and (ii) seems to have Oklahomans now electing Democrats.  It would seem that the only thing that counts with Republicans is giving huge tax cuts to the very wealthy and large corporations while they can.  The long term consequences be damned.  A piece in New York Magazine looks at the Oklahoma example.  Here are highlights:
The backlash to the Republican tax agenda is already getting Democrats elected — in Oklahoma. On Tuesday night, 26-year-old mental-health counselor Allison Ikley-Freeman won election to the Sooner State’s Senate, in a district that backed Donald Trump by 40 points last November.
Ikley-Freeman did not win on the strength of her fundraising or political experience. She boasted little of the former and none of the latter. But like the three other Oklahoma Democrats who have evicted Republicans from state-house seats this year, Ikley-Freeman enjoyed one decisive advantage: She bore no responsibility for the regressive tax policies that had left the state in fiscal ruin.
Oklahoma was a low-tax state even before the 2010 GOP wave crashed over it. But tea-party Republican governor Mary Fallin and her conservative allies weren’t content with the low baseline they’d inherited. Like President Trump and congressional Republicans, Fallin believed that cutting taxes on wealthy individuals and businesses was the way to grow an economy, no matter what level those taxes were currently at, or how novel circumstances might change the government’s budgetary needs.
So, when global oil prices crashed in 2014, and took Oklahoma’s budget down with them, Fallin was unfazed. Faced with giant, annual revenue shortfalls, the governor didn’t just refuse to raise taxes — she cut them even further. Last year, the Sooner State found itself with a $1.3 billion budget gap — and Fallin responded by implementing a $147 million tax cut for Oklahoma’s highest earners, and preserving a $470 million tax break for oil companies that start new horizontal wells.
Instead of asking wealthy citizens and businesses to pay a bit more (or, in the former case, to pay as much as they had been previously), Fallin decided to strip resources from the state’s beleaguered public-school system. Between 2008 and 2015, Oklahoma had slashed its per-student education spending by 23.6 percent, more than any other state in the country. But Republicans felt there was still more fat to cut: While rich Sooners collected their tax breaks, Oklahoma schools suffered a 16.5 percent funding cut in the latter half of 2016. Many of the state’s school districts now make due with four-day weeks. Others struggle to find competent teachers, as the state’s refusal to pay competitive salaries has chased talented educators out of state or into other professions. Oklahoma’s health-care and criminal-justice systems are plagued by similarly draconian cuts. Bridges in the state are literally crumbling. Potholes litter roads.
But even this austerity has not been nearly enough to plug the state’s budget holes. Fallin and the GOP have become reliant on raiding emergency reserves to make up the rest. This has left Oklahoma profoundly vulnerable to the next recession.
This week, Republicans in Oklahoma’s House of Representatives passed an emergency budget bill in a special session. The legislation does increase taxes on oil production. But instead of raising taxes on the wealthy, or ending the state’s exemption for capital gains — as Oklahoma Democrats had proposed — Republicans opted to cut $60 million from state agencies, and drain another few million dollars from the state’s rainy-day funds.
Oklahoma’s overwhelmingly Republican voters do not like this idea. As polling by the (left-leaning) Oklahoma Policy Institute demonstrates, there is no majoritarian support for gutting public schools, so as to let rich people pay low taxes, even in the heart of red America.
That poll also found 74 percent of Oklahomans saying that increasing teacher pay should be a major priority for their government — and 64 percent saying that expanding health-care access should be one — compared to just 38 percent who said the same about “lowering taxes.” This goes a ways toward explaining why Democrats keep winning special elections in the state. . . . Now, the discrepancy between the GOP’s fiscal priorities, and its voters’ material needs, has become stark enough to challenge partisan loyalties.
In Washington, Republicans are working hard to make Oklahoma’s experience a national one. On Thursday, the House passed multitrillion-dollar tax cuts on corporations and the wealthy, even as exigent circumstances — among them, increasingly frequent hurricanes, the decay of long-neglected infrastructure, a drug-overdose epidemic, and the retirement of the baby-boomers — are making it more expensive for the federal government to meet its basic obligations to the American people.
[L]ike Kansas and Louisiana before it, Oklahoma has demonstrated that the Republican Party’s prescription for prosperity is a snake-oil tonic with life-threatening side effects.
And when “conservative” voters see what the trade-offs of small government actually are — bigger McMansions for the elite, four-day school weeks for the rabble — they start longing for a new deal.
Congressional Republicans don’t seem the least bit concerned by the abject failure of their economic model in these states.  A Quinnipiac poll released this week found that only 16 percent of Americans believe President Trump’s tax plan will lower their taxes, while 59 percent say the plan will favor the wealthy over the middle class. These are shocking figures given how much money Republicans and conservative outside groups have devoted to propaganda for their bill.
Republican voters in deep-red states like Oklahoma may cling to their partisan identities tighter than most. But they also know the true costs of the GOP’s economic orthodoxy on a more visceral level than other Americans do. On Tuesday, that knowledge helped a 26-year-old, lesbian Democrat win a seat in the Oklahoma Senate. Someday, it just might turn large swathes of the American heartland purple — if Democratic donors decide to spend a bit less on pointless, pro-impeachment ad campaigns, and a lot more on liberating red states from reactionary rule.

Wednesday, October 04, 2017

Republicans Find Themselves Trapped by Their Own Flimflam


Yesterday I noted that both the Donald Trump "tax reform" plan and the tax cut proposals of GOP gubernatorial candidate Ed Gillespie are based on the long disproved GOP economics that tax cuts for the wealthy will somehow miraculously cause an expansion of economic activity and replace the revenues lost to massive tax cuts.  It did not happen under the Reagan tax reform and more recently it utterly failed in Kansas where extremist governor Sam Brownback and a GOP controlled legislature imposed a GOP dream approach to tax cuts on that state. the results were disastrous and eventually many Republicans joined with Democrats to raise taxes to avoid junk bond status for the state's borrowings and to fund needed services such as roads, public schools and higher education.  Thus the question becomes one of why does the GOP continue to cling to economic and tax policies that have been documented to never work in any way except to put money in the pockets of the super rich and large corporations?  A column in the New York Times gives and explanation.  Here are excerpts:
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. That takes talent.
But like the G.O.P.’s terrible, no good, very bad health plans, this tax debacle was years in the making. On taxes, as with health, leading Republicans have been lying for years. And now the fraud has caught up with the fraudsters.
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.
[T]he Ryan plans also assumed drastic cuts in spending outside Medicare, Medicaid and Social Security. What programs would be cut? The budget office again: “No proposals were specified that would generate that path.”
And what was the Ryan plan if you took out those mysterious revenue raisers and spending cuts? A plan to drastically cut taxes on the rich, savagely cut benefits for the poor and the middle class, and increase the overall deficit.
In other words, it was all a con. As I wrote in a 2010 column titled “The Flimflam Man,” “The Ryan plan is a fraud that makes no useful contribution to the debate over America’s fiscal future.” That judgment looks as valid now as it did then.
And the con went on for years. To this day one sometimes reads articles portraying Ryan as a serious policy wonk, despite abundant evidence of his unseriousness and real questions about his actual command of policy.
But then Republicans regained the White House, meaning that they had to come up with actual tax legislation. And this has put the con under terrible strain.
True, Republicans could just cut taxes on rich people — always their overriding priority — not worry about paying for it, and blow up the deficit. 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.
So they came up with what probably seemed like a clever idea: eliminate the deductibility of state and local taxes. Hey, that would mainly punish people in tax-and-spend blue states, right? Not their problem.
But this turns out to be a much bigger deal than they seemed to realize. (As with health care, they appear to have no idea what they’re doing.) . . . . 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.
And this would happen even though the plan would add several trillion dollars to the deficit. Did I mention that many of those facing tax hikes vote Republican?
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. And they can’t handle the truth.

Tuesday, October 03, 2017

Trump and Gillespie Seek to Reprise Kansas' Failed Tax Plan


In 2012, Kansas far right GOP governor Sam Brownback of Kansas signed a massive tax cut into law.  Brownback and his GOP allies promised that the massive tax cuts would boost the state's economy.  Among his goals, Brownback and the Kansas GOP he hoped to eliminate individual income taxes entirely.  Brownback's administration claimed the bill would create 23,000 jobs by 2020, and would lead 35,000 more people to move to Kansas.  Saying that the promised economic benefits never materialized would be far too kind.  The state was nearly left bankrupt, essential services, including highway maintenance, were slashed and public education funding dropped to far below 2008 levels, triggering significant program reductions in schools across the state. Class sizes have increased, teachers and staff members have been laid off, essential services for at-risk students were eliminated, some schools were forced to reduce the class week to four days. Now we have Donald Trump, Paul Ryan and other toadies of the likes of the Koch brothers seeking to take the Kansas disaster national.  Meanwhile, here in Virginia, GOP gubernatorial candidate Ed Gillespie is seeking to mimic the failed Kansas model with his promise of an across the board tax cut (Virginia already has a relative low tax rate).  A piece in Politico looks at how Democrats are pushing back against this ready-made disaster.  Here are excerpts:
In a warning shot to Republicans crafting landmark tax legislation, Senate Minority Leader Chuck Schumer said on Sunday that Kansas’ experiment with tax cuts foreshadows what can happen if the GOP relies on “fake numbers” to support its effort.
Speaking on CBS’ "Face the Nation," Schumer rebutted assertions by the Trump administration that the president’s tax plan is not designed to cut taxes for rich Americans.
“It's completely focused on the wealthy and the powerful. Not on the middle class,” Schumer said.
The New York Democrat also attacked Republicans’ assertion that the tax plan won’t add to the deficit. Kansas’ 2012 tax cuts led to a budget deficit that forced the state to cut funding for schools and infrastructure, Schumer said. Facing a major budget deficit, Kansas lawmakers in June approved legislation that rolled back many of Gov. Sam Brownback’s tax cuts.
“This idea that cutting taxes on the wealthy, this trickle-down economics which the Republican Party loves, does not create growth,” Schumer said. “It never has."
Sen. Bernie Sanders (I-Vt.) was dubious of the idea that the plan wouldn't overwhelmingly benefit the rich.
"For Trump to go on television that, oh, this doesn't benefit the wealthy is absolutely outrageous," he said on CNN's "State of the Union." "Of course, it benefits the wealthy. And of course it benefits large multinational corporations."  . . . "We are living in a moment of massive income and wealth inequality. The very, very rich are getting richer. Middle class is shrinking."
Republicans' trickle down lies have never worked.  Despite the proof of objective reality in Kansas and elsewhere the lie persists.  Hopefully, Virginians do not fall for this lie next moth in our statewide elections.

Monday, September 25, 2017

Today's GOP: Caught in Its Own Lies


For many years now, the basic agenda of the GOP has been based on lies.  This traces all the way back to Reagan era promises that tax cuts and trickle down economics would work.  It didn't and it hasn't, yet 37 years latter the same lie is being repeated over and over by GOP candidates and elected officials.  Here in Virginia, GOP gubernatorial candidate Ed Gillespie is promising tax cuts that would leave a $1.4 billion gap in the budget just as was done in Kansas to disastrous effect.  Like Kansas, Gillespie has not solid plan for where replacement funds would come from.  More recently, of course, we had the Bush/Cheney lies that took the nation to war in Iraq, again with disastrous results.  This debacle has been followed by 8 years of Republican lies aimed at Barack Obama and his policies to the delight of racists within the GOP base.  Now, with the GOP controlling Washington until January, 2019 when things will hopefully change, the party is faced with trying to implement policies based on falsehoods that are becoming glaringly obvious to except the most deranged of the Kool-Aid drinking GOP base. The policies cannot work because they were false from the start.  A column in the New York Times looks at this growing problem of the GOP's own creation.  Here are excerpts:
On Saturday pretty much the entire medical sector — groups representing doctors, hospitals, and insurers — released an extraordinary open letter condemning the Graham-Cassidy health bill. The letter was written in the style of Emile Zola’s “J’accuse”: a series of paragraphs, each beginning with the bolded words “We agree,” pointing out the bill’s many awful features, from the harm it would do to people with pre-existing conditions to the chaos it would cause in insurance markets.
It takes a truly terrible proposal to elicit such eloquent unanimity from organizations that are usually cautious to the point of stodginess. So how did Republicans come up with something that bad, and how did that bad thing get so close to becoming law? Indeed, it still has a chance of being enacted despite John McCain’s “no.”
The answer is that Republicans have spent years routinely lying for the sake of political advantage. And now — not just on health care, but across the board — they are trapped by their own lies, forced into trying to enact policies they know won’t work.
Carl Hulse of The New York Times adds more detail: one big factor behind the push for Graham-Cassidy was anger among big donors, who wanted to know why Republicans had broken their vows to kill Obamacare. . . . . But repealing the Affordable Care Act wasn’t the only thing Republicans promised; they also promised to replace it with something better and cheaper, doing away with all the things people don’t like about Obamacare without creating any new problems. Yet Republicans never had any idea how to fulfill that promise . . . . the base, both the grass roots and the big money, believed the lies. Hence the trap in which Republicans find themselves.
The thing is, health care isn’t the only issue on which lies are coming back to bite the liars. The same story is playing out on other issues — in fact, on almost every substantive policy issue the U.S. faces.
The next big item on the G.O.P. agenda is taxes. Now, cutting taxes on corporations and the wealthy may be an easier political lift than taking health insurance away from 30 million Americans. But Republicans still have a problem, because they’ve spent years posing as the party of fiscal responsibility, and they have no idea how to cut taxes without blowing up the deficit. . . . as with health care, these lies will be revealed once actual legislation is unveiled. It’s telling that Republicans are already invoking voodoo economics to justify their as-yet-unspecified tax plans, insisting that tax cuts will pay for themselves by leading to higher economic growth.
At this point, however, few people believe them. The Bush tax cuts didn’t create a boom; neither did the Kansas tax-cut “experiment.”
Foreign policy isn’t usually a central concern for voters. Still, past lies have put the Trump administration in a box over things like the Iran nuclear deal: Canceling the deal would create huge problems, yet not canceling it would amount to an admission that the criticisms were dishonest. And soon the G.O.P. may even start to pay a price for lying about climate change. As hurricanes get ever more severe — just as climate scientists predicted — climate denial is looking increasingly out of touch. Yet donors and the base would react with fury to any admission that the threat is real, after all. [T]he bill for cynicism seems to be coming due. For years, flat-out lies about policy served Republicans well, helping them win back control of Congress and, eventually, the White House. But those same lies now leave them unable to govern.

Saturday, June 24, 2017

The Perversity of Trump and the Republican Party

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I know that I sound like a broken record when it comes to bemoaning and condemning what the Republican Party has become.  The election of Der Trumpenführer is but the culmination of two decades or more of descent into moral bankruptcy.  Throughout this descent we have witnessed never ending hypocrisy as the Republican Party falsely claims to be the party of Christian values, voices false concern about the average citizen, and, of course, pretense that it supports our men and women in uniform, and our military veterans.  Nothing could be farther from the truth if one looks at the actual facts and changes the channel from Fox New, a/k/a Faux News.  Like the Christofascists who have hijacked the party base, the safest bet nowadays is to assume that if a Republican elected officials lips are moving, he/she is lying.  Things truly have gotten that bad.  The newly released Senate Republican "healthcare reform" bill epitomizes the perversity of the GOP.  In deed, how "decent people" not driven by racism, religious extremism, greed and/or hatred of others can vote Republican makes me question their morality. 

For newer readers, many may not know of my son-in-law's story of being badly injured in Afghanistan while on his third tour in that hell hole of a country. His recovery was remarkable and he is now back in college securing a new degree that will allow him to give back to others the type of care that helped him make it through his nightmare experience.  His experience and meeting a number of his friends, some of whom were no where near as lucky as he was, has made me very conscious of the GOP's broken promises to veterans. He steered me to a piece that examines the huge number of veterans who will be harmed under Trumpcare/Ryancare.  It's the ultimate betrayal of those who sacrificed so much for their country - far more than the most of the foul Republicans in Congress ever will.  The article here is a must read.  So too is Andrew Sullivan's latest assessment of Trump and the GOP.  First these highlights from how are veterans will be harmed:
A new analysis by the Center for American Progress finds that 441,300 veterans would lose Medicaid coverage by 2026 under the plan of President Donald Trump and House Republicans to repeal and replace the Affordable Care Act (ACA). The Senate proposal, crafted behind closed doors, contains even larger Medicaid cuts in the long term than the House plan—cuts that would ultimately result in more veterans losing Medicaid coverage. Moreover, like the House bill, the Senate plan allows states to make changes to essential health benefits, which would reduce current protections for veterans with pre-existing conditions—including service-connected disabilities such as spinal cord injuries, amputations, and post-traumatic stress disorder—and lead to steep increases in medical costs, harming American veterans and their families.
Contrary to common misperceptions, the majority of the nation’s 20 million veterans do not get their health care coverage from the U.S. Department of Veterans Affairs but instead depend on other types of insurance. This includes Medicaid, which currently covers nearly 1.8 million American veterans.
The cuts not only break President Trump’s pledge to support veterans, they also disproportionately harm voters in the areas that most strongly supported him. New CAP analysis reveals that in the counties Trump won in the 2016 presidential election, 10 percent of adults are veterans—45 percent more than the share who are veterans in counties Trump lost.
The message to veterans and the members of the military: stop reflexively voting Republican.  It is NOT in your best interest.  Hollow sound bites about supporting our troops need to be ignored. Actions, not words, are what need to be watched.   But as Sullivan notes, the perversity of today's Republican Party and, of course, Der Trumpenführer, goes far beyond the betrayal of veterans.  Here are excerpts from Sullivan's piece:
I was mulling, as one does, over this presidency, and something crystallized in my head that I had not quite grasped before. Its policies are best described as simply perverse. The new Senate health-care bill is just the latest shining example. . . . it has no vision of how it wants health care to be organized; the loss of health care for the working poor will be most intense in Republican districts; . . . For good measure, by ending many of the taxes in the bill that make it work, and by removing the individual mandate, it risks sending the insurance markets into a deeper crisis.
So what on earth is the point? For Trump, it seems to me, the whole point is to have a “win.” He doesn’t give a shit about what the bill actually contains. He’ll just lie about it afterward and assume his cult followers will believe him. For Ryan, it’s just a way to make a future tax cut for the superrich more budget-friendly, while pushing the political costs of shredding Medicaid onto some future sucker.
And then you think about those tax cuts Ryan wants so badly. We are told that these cuts will spark so much growth they will pay for themselves — and more. And yet if there is one thing we really do know by now, it is that this strategy has spectacularly failed and failed again to work. Reagan’s tax cuts left the U.S. with an unprecedented peacetime deficit; George W. Bush inherited a small surplus and, after his tax cuts didn’t spur higher growth, handed Obama a Treasury close to bankrupt. In Kansas, the exact same strategy has incurred so much debt that a supermajority of the legislature, led by Republicans, have junked it. To pursue it a third time on a national scale is the definition of madness.
We are also living in an era of extreme inequality. . . . the policy of the Republicans is to further increase such inequality to levels beyond even the robber-baron era. Again, the only word for this is … perverse.
Ditto, for that matter, the idea that coal is the future of energy, and that climate change is a hoax. . . . It was an utterly pointless way to isolate the U.S. from the rest of the world, and cede leadership to China. There was really no point at all in trashing the modest opening to Cuba under Obama, poisoning relations, and then just fiddling with the details.
Elsewhere in foreign policy, we have just begun a deepening of the war in Afghanistan, the longest in American history, with no strategy in place. . . . . The opening to Iran gave the U.S. far more leverage in the region, balancing out our previous Sunni commitments with a Shiite counterweight. Now Trump has fully committed the United States to one side of an intra-Muslim divide, while trashing Qatar, which houses the most important military base in the entire region. Again: perverse.
One of the ironies of the impact on veterans is that Texas, a red state that loves to huff and puff about patriotism will see the larges number of veterans harmed by Trumpcare if it passes.

Monday, June 19, 2017

Zombies, Vampires and Republicans


Republicans have been peddling the same voodoo economics since 1980 and, despite their formula's failure to ever work as claimed, they are back pushing it with a vengeance both in terms of proposed tax cuts (including ending the estate tax that would only benefit married couples with a combined estate of almost $11 million) and through healthcare "reform" which would provide enormous tax cuts to the very wealthy.  Most recently Kansas Republicans led by homophobic nutcase Sam Brownback implemented the full package of Republican economic principles and it proved to be an utter disaster that led to severe cuts in governmental services and budget crisis.  Only tax increases save the state's operations and economy.  Yet despite this real life experience, the Congressional Republicans appear posed to implement a still secret revised version of Trumpcare that will likely harm literally millions of Americans, including many of the fools who fell for Trump's calls appealing to their racism and bigotry and put a wholly unfit individual in the White House.  A column in the New York Times looks at the brain dead GOP:
Zombies have long ruled the Republican Party. The good news is that they may finally be losing their grip — although they may still return and resume eating conservative brains. The bad news is that even if zombies are in retreat, vampires are taking their place.
What are these zombies of which I speak? Among wonks, the term refers to policy ideas that should have been abandoned long ago in the face of evidence and experience, but just keep shambling along.
The right’s zombie-in-chief is the insistence that low taxes on the rich are the key to prosperity. This doctrine should have died when Bill Clinton’s tax hike failed to cause the predicted recession and was followed instead by an economic boom. It should have died again when George W. Bush’s tax cuts were followed by lackluster growth, then a crash. And it should have died yet again in the aftermath of the 2013 Obama tax hike — partly expiration of some Bush tax cuts, partly new taxes to pay for Obamacare — when the economy continued jogging along, adding 200,000 jobs a month.
Despite the consistent wrongness of their predictions, however, tax-cut fanatics just kept gaining influence in the G.O.P. — until the disaster in Kansas, where Gov. Sam Brownback promised that deep tax cuts would yield an economic miracle. What the state got instead was weak growth and a fiscal crisis, finally pushing even Republicans to vote for tax hikes, overruling Brownback’s veto.
Will this banish the tax-cut zombie? Maybe — although the economists behind the Kansas debacle, who have of course learned nothing, appear to be the principal movers behind the Trump tax plan, such as it is.
But even as the zombies move offstage, vampire policies — so-called not so much because of their bloodsucking nature, although that too, as because they can’t survive daylight — have taken their place.
Consider what’s happening right now on health care.
Last month House Republicans rammed through one of the worst, cruelest pieces of legislation in history. According to the Congressional Budget Office, the American Health Care Act would take coverage away from 23 million Americans, and send premiums soaring for millions more, especially older workers with relatively low incomes.
This bill is, as it should be, wildly unpopular. Nonetheless, Republican Senate leaders are now trying to ram through their own version of the A.H.C.A., one that, all reports suggest, will differ only in minor, cosmetic ways. And they’re trying to do it in total secrecy. . . . Clearly, the goal is to pass legislation that will have devastating effects on tens of millions of Americans without giving those expected to pass it, let alone the general public, any real chance to understand what they’re voting for.
Why this combination of secrecy and speed? Obviously, this legislation can’t survive sunlight — and I’m by no means the first to make the analogy with vampires.
This is unprecedented. Ignore Republican lies about how Obamacare was passed: the Affordable Care Act went through extensive discussion, and Democrats were always very clear about what they were trying to do and how they were trying to do it.
When it comes to the Republican replacement for Obamacare, however, it’s not just the process that’s secretive; so is the purpose. . . . . the one obvious payoff to taking health care away from millions: a big tax cut for the wealthy.
So this isn’t a Trump story; it’s about the cynicism and corruption of the whole congressional G.O.P. Remember, it would take just a few conservatives with conscience — specifically, three Republican senators — to stop this outrage in its tracks. But right now, it looks as if those principled Republicans don’t exist.
 The other element to all of this, of course, is the hypocrisy.  The GOP pretends to be the party of "Christian values" but there is NOTHING Christian about the party's reverse Robin Hood agenda of taking from the poor and middle class and giving the stolen wealth to the very rich./