“The economy must serve people, not the other way around.” That is the opening sentence of the US Conference of Catholic Bishops’ statement “The Dignity of Work and the Rights of Workers“. Regardless of your religious beliefs, I encourage readers to look it up on the internet. It’s easy to understand the values being taught but challenging to apply them in our lives, businesses and government. Continue reading THE ECONOMY MUST SERVE PEOPLE
Category Archives: taxes
IS THE FINANCIAL END NEAR?
The cartoon made me laugh. Maybe it’s funny because it’s based in truth. Although I hope that our national litany of mini-crises and scandals will end soon, I don’t expect it. These stormy times are distracting us from more important issues, particularly our national financial situation. Continue reading IS THE FINANCIAL END NEAR?
Follow Dr King out of Trump’s shithole
President Trump’s remarks about “Shithole” nations and his desire for more immigration from (white) Northern Europe are a perfect contrast to our January 15 national day of recognition for Dr. Martin Luther King Junior – born January 15, 1929. Except for an assassin’s bullet, he might have celebrated his 89th birthday today. Instead he was killed before reaching the age of forty.
Click below to hear singer-songwriter Patty Griffin’s reflection on Dr King’s final speech and what his final prayer might have been before he died
Dr. King is rightly remembered as a principal leader of the civil rights movement that brought legal equality for Americans of African descent, at least on paper. The struggle to fully achieve the promise of equality under the law continues to this day.
Today, I think it is important to remember that in his final years, Dr King had expanded his mission and ministry to encompass two additional concerns: He supported and expanded the peace movement that sought to bring American troops home from our military incursions into the affairs of other nations, principally Vietnam. The second new subject was economic justice. He saw, even in the 1960s, the concentration of extreme wealth among a few privileged Americans while laborers were unable to support families. On the day that he was killed, he was in Memphis to support the demands of sanitation workers for improved wages and working conditions.
Dr King was not abandoning his civil rights mission. He was expanding it. The war affected everyone, regardless of race, through unnecessary killing and through the waste of economic resources that could have been used to improve American lives. Economic inequality and injustice to working Americans affected minorities disproportionately but it was abundantly clear that a permanent, generation-spanning economic underclass existed in every race. Insulting labels from that era such as “poor white trash” and “nigger” have not lost or changed their meaning in the half century since Dr King’s death. They still refer to people who have had few opportunities for economic and educational advancement. They are the victims of an economy and a nation that has no need for their limited skills and little motivation help them find opportunities. How different, really, are the problems of the white Appalachian coal miner, the rural southern black, and the small town and urban workers of all races who lost jobs to automation?
Dr King saw clearly that we can all succeed together by creating opportunities for personal and economic growth through education and social safety net programs. How ironic is it that Norway (the nation from which President Trump would like to have more immigration) has done what Dr King suggested? Proponents of creating those programs here in the US are often derisively called “socialists”. It is precisely because of those socialist programs that very few people want to leave Norway. People like it there. Not only do they share their wealth, they have more to share. In Norway, the average economic output per person is $70, 392 compared to $57,436 for Americans. What a surprise! A nation that strives to provide opportunities for everyone is more productive than one which ignores the needs of its poorest citizens.
Americans have responded to our problems by forming a circular firing squad – shooting (sometimes literally) at each other rather than lifting each other up, as Dr King would have taught. Now we have elected a President and a Republican congressional majority who have cut taxes on corporations at a time when corporate profits are at record highs; cut taxes on the wealthiest Americans at a time when they already own a greater share of our national wealth than at any time on record; and will borrow money that we all have to repay in order to fund their gifts to the wealthy. They also plan to drastically increase military spending for the longest and arguably least justified wars in American history.
Unfortunately, I must agree with President Trump that there is indeed a “shithole”. He and the Republican congress are pushing us into it. We’ll have to climb out using the remaining resources that they haven’t wasted. We can do that if we will quit blaming the victims of poverty for their condition and begin focusing our efforts on creating opportunity for every American to achieve her or his full potential. Success in that endeavor will be the measure of a great nation.
Real Christmas Light
In a conversation about the state of our world, a friend asked what my subject would be for a “Christmas column”. My immediate reaction was cynicism. It seemed unfitting to celebrate Christmas in a world where borders matter more than starving refugees, where the wealthy get a tax cut paid for with borrowed money, and where self-professed Christians in movements like Aryan Nation Church of Jesus Christ and Westboro Baptist Church preach racism and intolerance in Jesus’ name.
A day passed by before it occurred to me that Jesus was born, lived and was crucified in a world not so different from our own. His teaching, preaching and example were about living in a flawed, unfair and sometimes hostile world. What better time and place to celebrate his birth, life and sacrifice than here and now, in our own darkness? The light that he brought to his world can brighten our own.
The land where Jesus lived was ruled by the most powerful military force of its time, the Roman Empire. They allowed significant local autonomy as long people paid taxes to the empire and didn’t attempt insurrection. Regional government was based on Jewish religious laws under Roman supervision. Political and financial power were often abused. The temple tax, owed by everyone, enriched the high priests. It also paid temple employees including musicians, janitors, decorators, guards and those who sold animals for sacrifice. They sustained the mystique of the temple and the belief that High Priests could influence God through rituals. Little tax money trickled down to the poor.
There were a lot of itinerant preacher/teacher/rabbis in Jesus’ time. People were angry, especially in rural areas where taxes were collected to support Rome and Jerusalem while poverty reigned locally. Jesus directed his ministry to the poor, the working class, the disenfranchised, and much of the time he simply ignored Rome and Jerusalem. He recruited fishermen, laborers, and other common people as followers.
Stories of his work include miracles to benefit the sick and poor. The lepers who were healed were outcasts under Jewish law. The prostitutes (identified as “sinners”) with whom he reportedly dined at a tax collector’s invitation are thought to have been hired as after-dinner entertainment – women who had only their bodies to sell.
Jesus did far more than heal and feed people. He taught a better way of living that became a movement. It was based on two principles – love God, and love your neighbor as yourself. Today people sometimes debate what “God” and “neighbor” mean. Nevertheless, Jesus’ teaching is so clear that we can apply it to our 21st century lives.
It’s almost as important to recognize what Jesus didn’t do as what he did. Did Jesus ever pray for rain in the desert, military defeat of the Roman invaders or other intervention in daily life? He taught others to pray for enough food to get through the day, forgiveness of sins and recognition of temptation – nothing more. He never tried to enforce his values through civil laws. People were free to follow or not. He never asked for contributions to build a cathedral, a megachurch or even a small one. Nor did he urge placing a monument to the Ten Commandments at every courthouse.
Jesus cared about individuals but he also spoke to and about government when he overturned the money changers’ tables where the poor were legally cheated by a government sanctioned religion. He engaged in civil disobedience to save the life of a woman caught in the act of adultery. The prescribed penalty was for her to be stoned to death. Jesus halted the stoning with this challenge, “Let anyone who is without sin cast the first stone.”
Who was this man who changed our world so much? Once, when he was asked, he replied with a question of his own, “Who do you say that I am?” Do you say he is Son of God, Messiah and Savior? Or is he a teacher whose powerful ideas will, if we follow them, allow us to live peaceably together?
Regardless of our 21st century answer to his question, his birth, his life and his sacrifice are worthy of celebration. By applying his teaching today we can bring light to a dark world.
Are we willing?
Permission for use of this Hugh Haynie cartoon was granted by the Special Collections Research Center, Swem Library, College of William and Mary
THE COMING FISCAL CRISIS
The caller was a friend that I haven’t seen for too long. She’s up in years, older even than me, but as quick-witted and engaging as I remembered. “Why”, she wanted to know, “haven’t you written about Republicans’ plan to take away deductions for medical expenses?” Then she told me her story. I had promised myself a respite from the tax law controversy, but it’s too important to be left alone.
Karen and her husband Jim (not their real names) are neither poor nor wealthy. They saved and managed their money well in preparation for retirement but Jim is now ill, disabled, and in need of daily assistance in just about all of his activities. With Karen’s help, he doesn’t have to go to a nursing home, but she can’t meet all of his needs so she pays for daily help. Medicare and insurance don’t cover the cost. The budget is tight but they make it work.
Under current tax law Karen can deduct medical expenses that exceed 10 percent of their income. So, if their taxable income is $50,000 and the medical expenses not covered by insurance are $20,000, here’s how it works. They pay an amount equal to 10 percent of income, $5000 in this case. That leaves another $15,000 of expenses that she can deduct from their income. So they will pay income tax on $35,000 rather than $50,000. If they are in the 15 percent tax bracket, the deduction would save them $2250. That’s a lot of money when you’re on a tight budget.
The fate of their deductions will be decided behind closed doors in a House-Senate Conference Committee. The Senate version of the Republican bill will allow the deduction. If the House version passes, Karen and Jim will be spared the trouble of keeping records because the expenses won’t be deductible.
“What can we do?” Karen asked me. I stuttered a lot trying to find an answer. She wrote and called congressmen. She never got to talk to one and her perception is that their minds are made up to pass a bill quickly without considering who will be hurt. She’ll try again anyway because neither of us knows an alternative.
The fates of Karen, Jim and millions of other Americans are in the hands of congressional Republicans who seem intent on passing a law before public opposition rises to an insurmountable level. There have been no public hearings with expert testimony, no people like Karen explaining their concerns and few, if any, town hall meetings where legislators face voter questions. Republicans seem desperate to pass something – anything – rather than face economists, experts and angry constituents.
It’s easy to get lost in lists of tax bill losers: the sick, graduate students, the middle class, residents of high tax states, on and on. Hundreds of issues are up for grabs. They’re all important but to focus on any one of them is to miss the fact that we have no financial plan for our national future. Either version of the Republican bill will add somewhere between $1 trillion and $1.5 trillion to our budget deficits in ten years, and deficits will continue after that at a similar rate. That borrowed money will be given to corporations and the wealthiest 1 percent of Americans in the form of tax cuts. Every American will be obligated to repay the debt.
There’s no way to make a sensible budget from the revenue that will remain after the tax cuts. Social Security is self-funded by employee and employer contributions. It will remain totally self-sufficient through 2036. It needs a bit more revenue or lower expenses to be solvent past that date but its problems seem minor. The crisis is in the rest of the budget.
Republicans have pledged to increase spending or hold it steady for defense, Medicare, and Medicaid/Health programs. Their tax bill does not produce enough non-social security revenue to pay for anything else after keeping those promises and paying interest on the national debt. Yes, you read it right. They have promised to spend all federal tax revenue on defense, Medicare, Medicaid/Health and interest expense. Did they do the math before they made the promises?
The Republican plan cuts taxes so much that there is no sensible financial path forward, just a mountain of debt. The light that they claim to see at the end of the tunnel is a train; and it’s headed our way.
TO DOWNLOAD CHART CLICK HERE
IF REPUBLICAN TAX PLAN HAD BEEN LAW IN 2016 |
||
REVENUE |
||
| BILLIONS | SOURCE | |
| 2016 FEDERAL REVENUE | $3300 | CONGRESSIONAL BUDGET OFFICE |
| LESS SOCIAL SECURITY REVENUE | ($958) | SOCIAL SECURITY TRUSTEES REPORT |
| NON SOCIAL SECURITY REVENUE | $2342 | |
| LESS TAX CUT | ($100) | MEDIAN OF ESTIMATES |
| FUTURE PROJECTED REVENUE | $2242 | |
SPENDING |
||
| MEDICARE | $593 |
DERIVED FROM PEW RESEARCH CENTER CLICK LINK FOR SPECIFICS |
| MEDICAID/HEALTH | $514 | |
| DEFENSE AND VA | $790 | |
| INTEREST ON DEBT | $237 | |
| SUBTOTAL | $2134 | |
| PROPOSED DEFENSE INCREASE | $116 | ESTIMATE BASED ON SENATE PROPOSAL |
| SPENDING PROTECTED BY REPUBLICAN PROMISES | $2250 | |
| ALL OTHER 2016 SPENDING | $869 | |
| PROJECTED DEFICIT | $877 | |
A SINFUL TAX LAW
Today I began to understand why the proposed new tax law disturbs me so much. Simply stated, it is sin enshrined in law and all of us are accountable for it. I’ll use the bill recommended by the Senate Finance Committee to show you what I mean. All of the other versions have similar effects.
The politicians and wealthy donors who support the bill will walk away with the money and leave the rest of America holding the new debt that pays for it – about $18,400 for a family of four – in just the first decade of the law. The tax CUT for the wealthiest Americans will be bigger than the TOTAL INCOME of 80 percent of families.
Passing this bill while corporate profits, stock values and cash balances are at record highs and while middle class Americans are struggling to get by and while the poor can’t properly feed and educate their children…that seems sinful to me.
Sin has lots of definitions and I’ll take the liberty of using my own. Sin is any conscious action which separates you from that which is good – your own understanding of “God”, “Creation” or the rest of humanity. Although we may have differing religious or spiritual beliefs, that understanding of sin seems consistent with all of them.
An important observation about sin – we’re aware that we’re doing something wrong, but we do it anyway. That’s exactly where we’re headed with this tax law. It will place an unjust burden of debt on poor and middle-class Americans to benefit the wealthiest among us. How many of the bill’s supporters know in their consciences that it’s wrong, but will quietly allow it because their donors and political tribe expect that? This bill is a conscious action that separates us from what is good – the very definition of sin.
As I pondered these troubling thoughts, I looked to values that I’ve known since childhood. So have most readers. And if we’ve thought at all deeply about those values we can see them reflected in all Abrahamic religions: Christianity, Judaism and Islam. If we expand our awareness to include Buddhist, Native American, other religions – even Atheist teachings, we find similar values and a similar concept of “sin”. We know that it separates us from what is good and we do it anyway. I’m going to quote some scripture, because this seems to be a time when we are in particular need that sort of wisdom.
Leviticus 23:22 “And when you reap the harvest of your land, you shall not reap your field to its very border, nor shall you gather the gleanings after your harvest; you shall leave them for the poor and for the stranger: I am the Lord your God.”
In Matthew, Chapter 25:34-46 Jesus describes the Creator-King welcoming followers with these words, “…for I was hungry and you gave me food, I was thirsty and you gave me drink, I was a stranger and you welcomed me, I was naked and you clothed me, I was sick and you visited me, I was in prison and you came to me.” … “Truly, I say to you, that as you did it to one of the least of these my brethren, you did it to me.” Then he proceeded to condemn those who did not help the least of their brethren.
There it is for all to see – what better example of sin than burdening our poorest citizens with debt in order to enrich the wealthiest? Those who quietly consent to the passage of this law are complicit in the sin.
Mark 12:38-39 “Beware of the scribes, who like to go about in long robes, and to have salutations in the market places and the best seats in the synagogues and the places of honor at feasts, who devour widows’ houses and for a pretense make long prayers. They will receive the greater condemnations.”
It is necessary to instruct our representatives. “Don’t do this sinful thing in our names!”
TAX REFORM FOR WORKING AMERICANS
There are far better ideas for tax reform than the ones congress is considering. I’m trying to spread the word about alternatives that really help working Americans. If you agree please like, share, and send the ideas on to your representatives and senators. There are sharing options at the bottom of the page. You can download a PDF or photo version for sharing by clicking the links below. The text follows.
TAX REFORM FOR WORKING AMERICANS pdf version
TAX REFORM FOR WORKING AMERICANS jpg photo version
TAX REFORM FOR WORKING AMERICANS
Here are tax reform ideas that will raise take-home pay, help low-income workers enter the middle class, and grow the US economy for all of us. If you agree, please share it and “like” it on social media. Also send it to your representatives and senators.
- Apply new tax revenue from ideas below to reducing the current rates of Medicare and Social Security payroll taxes. (That will result in increased take-home pay for everyone who is employed.)
- Create a national sales tax of about 1% on stocks, bonds and other financial instruments. (A carpenter who buys a new saw to earn income will pay a sales tax. Doesn’t it seem fair that someone who buys stock to make money would also pay a tax?)
- Create a national property tax of about 1% on accumulated wealth including real estate, personal property and financial assets in excess of $5 million for a household. Raise it to 2% above $20 million. (The very wealthy could continue to grow their fortunes by making productive investments that earn more than the tax rate.)
- Apply all income and payroll tax rates used for wages to non-wage income including interest, dividends and appreciation of assets. (Why is it right to tax income earned by labor at a higher rate than investment income?)
- Retain the estate tax which allows a family to pass on $11.8 million tax-free to heirs and applies a 40% tax rate on larger inheritances. (Why is it right that those working their way up the economic ladder have payroll taxes on every dollar they earn while the heirs of the wealthy start with billions of tax-free income?)
RATIONALE: The US economy now features very high corporate profits and very high stock market values. Many corporations have so much money that they are using it to buy back their own stock rather than investing in new productive capacity. The economy needs increased demand for products and services to drive growth. This tax plan puts more cash in the hands of those who work for wages and particularly benefits those with low and middle income jobs. They will spend most of their increased take-home pay on products and services. The increase in demand will create investment opportunities for the wealthy and for corporations. Everybody wins.
CORPORATIONS: There are rational arguments for reducing or even eliminating income taxes on corporations. That can be done by attributing corporate profits or losses directly to shareholders annually and taxing them at their personal rate. A separate rate could be established for offshore holders of stock in US corporations.
CREATED BY: Bob Morrison – bob@bobmorrison.org
THE RIGHT QUESTIONS ABOUT TAXES
This column explores questions about tax reform that congress has ignored.
The obvious purpose of taxes is to fund government operations that we have approved through our elected officials. The alternative is borrowing. Debt allows us to spend money now and delay taxation to a later date – like using a credit card to pay for something when you don’t have the cash. Later, while you pay off the credit card, you will have less money to spend.
It’s important to understand what we tax today (federal, state and local taxes combined). 36 percent of revenue comes from individual income taxes (mostly federal and state). Another 23 percent is payroll taxes, mostly designated for Social Security and Medicare. Investment income is exempt from payroll taxes. Next are corporate income taxes at 11 percent, property taxes at 10 percent, sales taxes at 8 percent and everything else at 12 percent. CLICK HERE FOR MORE INFORMATION
We generally do not tax accumulated wealth such as cash, stock, bonds, precious metals etc. Our inheritance or estate tax applies only to amounts over $5.9 million from an individual or $11.8 million from a married couple. We do not levy a sales tax on stocks, bonds, or other financial assets which are acquired as a source of future income. We generally tax income from those financial assets at a lower rate than income earned from work.
Are our taxes too high? Believe it or not, our total tax burden is relatively low. We collect 26 percent of our GDP through all forms of taxation. The median among developed democracies is 34 percent. Thirty nations had higher rates and four had lower rates.
Many Americans are alarmed about the decline of our middle class and the extreme difficulty of upward economic mobility. Jobs are available but employee compensation hasn’t kept up with living costs. This is occurring while corporate profits and the stock market set new records. The wealthiest 0.1 percent of the American population now own as much wealth as the bottom 90 percent (which includes the entire middle class along with the poor).
Should we use tax policy to change those trends? In his book, “Capital in the 21st Century”, Economist Thomas Piketty answers “yes”. He demonstrates that the rate of return on capital (accumulated wealth that is invested for profit) consistently exceeds the rate of total economic growth. That is the cause of concentration of wealth among the top 0.1 percent of the population. To hear him explain his ideas in a TED talk, CLICK HERE
There are a number of ways to apply Piketty’s research to tax reform. One idea is to begin charging a small excise (sales) tax on the purchase of stocks, bonds and other financial instruments. It might be around 1 percent. A carpenter who buys a new saw in order to earn income will pay a sales tax. Doesn’t it seem fair that someone who buys stock in order to make money would also pay a tax?
Another idea is a tax on accumulated wealth above some preset dollar value. Suppose that the combined value of real estate and financial assets exceeding $5 million for a family was subject to an annual tax of 1 or 2 percent. That would generate a lot of revenue, particularly from families with net worth in the billions of dollars. They could continue growing their fortunes by investing if they earned more than the tax rate of 1 or 2 percent.
A third idea is to tax non-work income (interest, dividends and appreciation of investments) at the same rate as wages. Why is it right to tax income earned by labor at a higher rate than investment income?
A fourth idea is to retain the estate tax. It allows a wealthy couple to pass on as much as $11.8 million to heirs tax-free. That’s a very nice head-start in life for anyone. Why is it right that those working their way up the economic ladder have payroll taxes on every dollar they earn while the children of the wealthy start with $11.8 million tax-free dollars?
If we apply the revenue generated from ideas like these to reducing payroll taxes, we can increase “take home” pay and we won’t need to reduce Social Security or Medicare benefits. That would certainly help families on the way up with their economic climb.
None of these concepts are on the congressional tax reform agenda. They should be explored and debated with ample public input before our tax laws are changed.
FURTHER READING:
NY Times coverage of wealth tax concept
IT’S A WONDERFUL LIFE – TAX FREE
President Trump and Congressional leaders have promised Americans Christmas presents including lower taxes for everyone and raises for the working middle class averaging $4000 per year. Even Santa can’t match that magic.
As I draft this column, the plan is that Republican leadership will propose a new tax law to the House Ways and Means Committee (whose job it is to draft tax laws) on November 1 with a request that they approve it in a matter of a few days. It is being prepared in secret by two cabinet members and four politicians who are leaders in the House and Senate. They’re all male, all white, and all Republican so we don’t need to worry. They know what’s best and they’ll take care of us.
The goal of the bill’s authors is to get it passed before the end of 2017, allowing less than two months for committee hearings, expert analysis, and public opinion. They say that they want to move quickly before lobbyists put on too much pressure for special interests. Maybe they’re also concerned about having those pesky town hall meetings where noisy constituents ask hard questions.
The tax proposal is supposedly derived in large part from the House of Representatives GOP Tax Plan so we can look there for a preview. It was evaluated meticulously by the Brookings Tax Policy Center. They created a straightforward estimate of the bottom line change in taxes for Americans at all income levels. Naturally some of us will fare a bit better than others. You can check this chart to see how much help your family would get. CLICK HERE for the entire Brookings report.
| HOW HOUSE GOP TAX PLAN AFFECTS FAMILY INCOMES | |
| Income Level | Average tax saving/year |
| Lowest 20% | -$50 |
| Middle 20% | -$260 |
| Highest 20% | -$11,760 |
| Highest 1 % | -$212,660 |
| Highest 0.1% | -$1,262,530 |
| SOURCE:
http://www.taxpolicycenter.org/publications/analysis-house-gop-tax-plan/full |
|
You may recall that our federal budget already runs a large annual deficit. Republicans plan to borrow more money to make up for the tax cuts. In order to get your tax savings, your share of the additional borrowing will be about $4600 per person plus annual interest at about 3 percent. Republicans no longer worry about debt since President Trump explained that if the economy goes bad, we can “make a deal” to cover the debt. These guys are so smart about money that they know how to make debt disappear. They’ll do what’s best for us.
President Trump says that the extremely rich people will invest their tax savings and that will create more jobs. If there are more jobs then there will be more demand for workers so everyone’s wages will go up by an average of $4,000 per year. Mr Trump said that we can be confident; it’s actually middle class and low-income people who will benefit most from this plan. It’s so beautiful that it makes me want to sing along with Merle Haggard’s old song, “We’ll all be drinking that free Bubble-Up and eatin’ that rainbow stew.”
The new law would also make changes to corporate taxes; something that most knowledgeable people agree is needed. Isn’t it great to have such hard-working leaders applying the skills they learned at places like Goldman Sachs so that we don’t have to listen to experts or think for ourselves? It’s especially considerate of our six great leaders to get all the work done so that the congressional committees that would otherwise need to carefully consider the law can be finished with it in time to enjoy the holidays with their families and friends.
Merry Christmas to all Americans from your congressional leadership – always doing the thinking for American families and protecting their interests. In case you’d like to send them a “thank you” note, they are Treasury Secretary Steven Mnuchin, Trump economic advisor Gary Cohn, House Speaker Paul Ryan, House Ways and Means chairman Kevin Brady, Senate Majority Leader Mitch McConnell, and Senate Finance chairman Orrin Hatch.
One parting thought – this is the time when Americans must decide whether we want to live our “wonderful lives” in Pottersville or Bedford Falls. (Many references are to the movie “It’s a Wonderful Life” – as inspiring today as ever.)
ADDITIONAL READING: https://www.politico.com/story/2017/09/27/everything-you-need-to-know-about-the-big-6-tax-plan-243205
THE PRESIDENT OF CHAOS
The picture on my computer screen should be better so I tried adjusting it. That made it worse so I’ll hit it with a sledgehammer and see if that helps. Unfortunately, that foolish approach is being applied by President Trump to vital national interests like health care, defense, immigration, and budgets.
One of Trump’s competitors, Jeb Bush predicted the problem back in 2015 saying, “Donald, you know, is great at the one-liners. But he’s a chaos candidate. And he’d be a chaos president. He would not be the commander-in-chief we need to keep our country safe.”
President Trump promised to repeal and replace Obamacare with something better: “We’re going to have insurance for everybody…There was a philosophy in some circles that if you can’t pay for it, you don’t get it. That’s not going to happen with us.”…“I was the first & only potential GOP candidate to state there will be no cuts to Social Security, Medicare & Medicaid”.
As President, Trump never proposed a way to provide health care regardless of Americans’ ability to pay for it and he did support cutting Medicaid. Obamacare has insured about 20 million Americans who had no benefits before the law passed; and at the same time it has slowed the growth of the nation’s healthcare spending. It’s a success but it needs improvement. When nothing that he or other Republicans proposed passed, Trump swung his sledgehammer at Obamacare’s most vulnerable spot, the individual markets. He announced termination of the federal subsidy to insurance companies for low-income subscribers. That will damage the already fragile individual insurance markets in some communities – breaking our healthcare system without a plan to replace it.
Trump threatens to withdraw from our agreement with Iran, under which they shut down their nuclear weapons program and gave up 98 percent of their nuclear materials. The agreement was designed with one goal in mind – don’t let Iran develop nuclear weapons. We managed to get Russia, all of Europe and China on the same page because they all agreed with that goal; and it was our combined power that made the deal possible. Trump can’t persuade Iran to do other things that he wants so out comes the sledgehammer to break the Iran agreement. If the deal falls apart and if China, Russia and Europe go their own ways, there will be nothing to restrain Iran’s nuclear ambitions. By destroying the Iran deal without a plan to replace it Trump also tells other nations that any President can ignore commitments made by his predecessors. The USA will be seen as untrustworthy.
The DACA program for children brought to the US illegally is an imperfect solution to a problem that congress has been unwilling to address. Trump promises to hit it with his sledgehammer – forcing law enforcement to round-up and deport children and young adults who have lived most of their lives as Americans. Again, he has no plan for replacing what he will destroy. Many young adults will be driven to hide in an underground economy where they have little opportunity for success. That’s a breeding ground for dissension, hopelessness and crime.
Trump plans to hit your wallet with a sledgehammer too – by cutting taxes, mostly for the wealthy, while increasing military spending and our national debt at even faster rates than his predecessors. Americans will have to repay that debt at some future date. Our ability to borrow money for a true catastrophe or war is already impaired because so much of our debt capacity has been used. We currently owe $20 trillion. That is about $62,000 for every American or $161,600 for every American who works at a full or part-time job.
Donald Trump again proposes the sledgehammer approach saying, “I am the king of debt,”…”I love debt. I love playing with it.” and “I would borrow, knowing that if the economy crashed, you could make a deal”…”And if the economy was good, it was good. So therefore, you can’t lose.” When he says “make a deal”, that means refusing to pay our debt, most of which is owed to Americans. It’s not the same as letting one of his casinos go bankrupt.
If the Republican congress allows President Trump to deliver more sledgehammer blows to our nation, the resulting chaos will belong personally to Donald Trump and each legislator who supported him. The GOP will own the chaos but the American people (including DACA kids) will pay a heavy price for it.