What’s At Stake With Tax “Reform.”

For decades, taxation in the US has been based on a progressive tax structure, which means those who earn the most money pay the highest taxes. And those less fortunate pay the least. Similarly, corporations were taxed to help pay for the government-provided infrastructure they needed to operate. When the nation incurred substantial debt, the Congress raised taxes to reduce that debt. For example, following World War II, tax rates were raised to pay down the debt. Through the Eisenhower administration, the nation’s highest tax rate exceeded 90 percent. Yet, despite such high tax rates, the economy boomed.

Then, in the 1980’s everything changed. Based on a discredited economic theory known as trickle-down economics, Republicans began to cut taxes (and revenue) under the guise of “tax reform.” They cut the top income tax rate, as well as estate taxes and capital gain taxes – all for the benefit of the wealthy. At the same time, they repealed usury laws and eliminated the tax deductions for interest on all loans except home mortgages. All the while promising that the cuts would benefit middle Americans.

They didn’t.

Not only did they transfer much of the tax burden from the wealthy to the middle class. The national debt soared. As a result, even those who originated the idea of Reagan’s trickle-down economics were forced to admit that the plan failed.

Unfortunately, Republicans have never abandoned the theory. For years, they have continued to promote the trickle-down fairy tale. They not only signed Grover Norquist’s misguided “No New Taxes” pledge. They continue to promote tax cuts as the elixir for any economic ailment. Is the economy suffering? Tax cuts will help. Is unemployment too high? Tax cuts are the answer. Is the economy booming? Tax cuts will make it even better. As a result of all this tax cutting, our national debt has continued to climb – slowing only when Democrats are in power.

Fast-forward to today. Republicans are proposing yet another tax “reform.” And just like the “reforms” of the past, it looks a lot like another round of tax cuts for corporations and the very wealthy. Indeed, if this tax plan passes and is signed into law, the deficits will, once again, soar. And the national debt will be increased by trillions. According to a report from the Urban Tax Policy Center, “Over the first 10 years, the individual income tax provisions — excluding those related to the taxation of corporations, pass-throughs, and estates — would raise $470 billion, the business provisions would reduce revenues by $2.6 trillion, and repealing the estate tax would cost another $240 billion.”

As far as I can tell, this is all part of the GOP long-range plan.

The Republicans seem concerned with deficits and debt only if they can be used as a hammer to bludgeon Democrats when they are in control. (Remember the outrage when President Obama used TARP funds to save the US auto industry? Though the impact of the bail-out on our national debt was negligible, Republicans howled that it would be a burden to future generations.) In reality, I believe the GOP plan is to push our nation more deeply into debt. Then, and only then, will they be able to reach their long-term goal of reducing the government to a size small enough that, in Grover Norquist’s words, “it can be drowned in a bathtub.” Only when the debt has reached an unsustainable level will the GOP have the ammunition needed to slash government programs regardless of their popularity or need. That is when they will be able to argue the necessity of ridding the nation of safety nets such as Social Security, Medicaid, Medicare and all the varieties of welfare.

If you doubt this is the Republican goal, consider the Ayn Rand-like philosophy of the billionaires who finance the Republican Party. As mentioned in a previous post, the Koch brothers believe that government is unnecessary for anything but national defense, law and order, and social stability. And, by some counts, there are 16 people in the White House with ties to the Koch brothers. In addition, there are many more in the Republican congressional delegation who are beholding to the brothers grim of oil refining.

You must also consider that Trump’s presidential campaign was heavily funded by Robert Mercer, a man who has stated that he wants to shrink the government to the “size of a pinhead.” Worse, he apparently thinks that human beings have no intrinsic value – believing that an individual’s value should be based solely on income. In other words, someone who earns $2 million per year is 20 times more valuable than someone earning $100,000 per year. And he believes that anyone on welfare is worth less than nothing.

Obviously, the Kochs and Mercers spent hundreds of millions to elect today’s Republicans with the expectation that the Republicans would do their bidding – that they would reshape government to fit their ideas and to lower their taxes. If you think that means the Republican tax proposal will benefit you, think again.

What’s The Matter With Kansas Now?

In 2004, Thomas Frank wrote the book “What’s The Matter With Kansas?” which looked into the state’s religious and political extremism. It was a fascinating read. But it’s time for him to write a sequel because the answer to that question is now more clear. What’s wrong with Kansas is Governor Sam Brownback and his version of Horse and Sparrow economics (feed the horse enough oats and a few will pass through to fall on the road for the sparrows to eat), aka Trickle Down economics, aka Supply Side economics, aka Reaganomics, aka Voodoo economics.

Most economists have known for years that this economic policy doesn’t work. Even the architects of Reaganomics now repudiate the philosophy. But Brownback is certain that he knows better. So, since he was elected governor, he has implemented Reaganomics on steroids. He cut taxes for the wealthy and eliminated taxes for thousands of corporations, promising that businesses would flock to the state bringing thousands of new jobs with them.

It hasn’t quite worked that way.

There have been no businesses flocking to Kansas from neighboring states. And the resulting loss in tax revenue ($333 million in 2014 alone) has not only caused the state to burn through the $700 million reserve fund that existed before Brownback took office, it has led to cuts for public schools, community colleges and state universities. But Brownback steadfastly refuses to return taxes to their previous levels or to raise taxes even a little bit. So the governor and the state’s Republican legislature are hoping to meet this year’s $710 million deficit by cutting funding to pensions for public employees and by cutting the budget for roads and infrastructure.

And Kansas isn’t alone in this right wing-fueled misery. After more than 20 years of corporate tax cuts and, with almost nothing left to cut, the Arizona Republican-led government is facing a $1 billion annual deficit. After the failed policies of a Republican governor, Pennsylvania’s new Democratic governor is facing a $2.3 billion deficit. And, after Gov. Scott Walker’s $541 million tax cuts in 2014, Wisconsin is now facing a two-year deficit of $2.2 billion. In all, there are 16 states facing deficits…most of them controlled by tax-cutting Republicans. Meanwhile, Democratic-controlled states like California and Minnesota have some of the nation’s lowest unemployment figures, the nation’s best job creation and…wait for it…budget surpluses!

So tax cuts combined with budget cuts equals few new jobs, reduced revenue and even larger deficits, while reasonable taxes, reasonable spending on education and other services equals more jobs, more revenue and thriving economies.

It can’t be any more clear than that.

Why Does The Right Feel Free To Interpret Science But Not The Constitution And The Bible?

If anything, it should be the other way around. The Bible is not only full of contradictions. Most of it was written hundreds of years after the events it portrays, and it has lost meaning with each translation. As for the Constitution, not even its authors thought it was infallible. Indeed, the Founders expected it to be modified regularly. Jefferson even suggested that it be revisited every generation. And the Constitution addressed the principles and issues of the time. The Founders could not have imagined the issues of today.

As a result, both the Bible and the Constitution may be interpreted in a myriad of ways.

Science, on the other hand, is based entirely on evidence. Science takes a hypothesis and tests it in order to determine if the principle is correct. Only when the results have been repeated on multiple occasions does science accept the hypothesis as fact. For example, gravity was once considered a theory, but every experiment and observation proved it to be true, so it is now accepted as fact. The same is true of evolution and human-caused climate change. In each case, there is an abundance of evidence. Yet conservatives continue to challenge the principles with a few anecdotal experiences based on personal opinion.

In other words, on these issues and many others, conservatives have things backward.

Conservatives continually want to replace science and other evidence with opinion to suit their own ideologies. For instance, they deny the positive impact of Keynesian economics which has been proven by economists on multiple occasions. Instead, they want to rely on Reaganomics which has never proven to work. Even the two architects of Reagan’s trickle down theory have abandoned the concept as a failure and a fraud.

Conservatives actually believe that the poor are lazy despite the fact that most work full-time jobs. Conservatives believe that giving tax breaks and subsidies to large corporations will actually increase federal revenue and create jobs. Conservatives believe that using contraceptives makes women sluts. They believe that preaching abstinence to teens prevents unwanted pregancies despite all evidence to the contrary. They believe that defunding abortion, denying food stamps and school lunch programs for children and declaring war halfway around the world makes them “pro-life.”

Conservatives deny that our national obsession with coal, gas and oil is destroying our planet despite the findings of the world’s most respected climatoligists and evidence of the rapid melting of the planet’s largest glaciers. Conservatives believe that allowing industries to police themselves will maintain our environment. Conservatives believe that allowing the wealthy and large corporations to influence elections is protecting freedom of speech.

There’s a word for such people…and it’s not conservative. It’s delusional!