Posts Tagged ‘Koch Brothers’

WASHINGTON AND WINNERS

Wednesday’s San Francisco Chronicle headlined, “GOP near tax, health wins.” Mid-morning, the tax bill passed. Not a single Democrat voted yes. The New York Times reported, “Victory for G.O.P. as House Clears Way for Trump Signature.” I used to think winning only involved sports and the Oscars. My bad—and America’s.

Will the new tax law promote the general welfare? Trickle-down economics has failed in the past, but circumstances change in every generation. What concerns me more is the attitude in Congress and the White House—and it’s not new—that the most critical reason to pass legislation is to defeat the other party. “Winning” equates with moral superiority. Only secondarily do politicians consider the nation’s wellbeing.

The new tax law certainly will impact the economy short-term and long-. Republicans see the gross domestic product (GDP) soaring, bringing Washington increased tax revenues—at lower rates, of course—to counter the projected additional $1.5 trillion deficit.

Most Americans, however, don’t see themselves winning. According to cnbc.com, an NBC/Wall Street Journal poll released on Tuesday “shows that just 24 percent of Americans believe the president’s tax plan is a good idea – barely more than half of the 41 percent who call it a bad idea.” Moreover, “by an overwhelming 63 percent to 7 percent margin, Americans say the plan was designed to help corporations and the wealthy rather than the middle class.”

The same cnbc.com report states, “there are signs that the tax debate has taken a political toll on Republicans and the president alike.” Do the “winners” care? Stated cnbc.com, “Dozens of lawmakers stand to reap a tax windfall thanks to a loophole inserted in the sweeping GOP tax overhaul bill, according to a review of federal financial disclosures.”

Donald Trump may not have helped his and the Republican cause when on Wednesday he announced, “I shouldn’t say this, but we essentially repealed Obamacare.” Has he thrown the healthcare system into chaos? If so, how will millions of affected Americans respond?

Of course, the mega-rich—including Trump—will win big. A coterie of far-right political donors, including the Koch Brothers, will reap a major return on their investment not only in the Republican party and its candidates but also in political action committees, think tanks and trade associations, as well as shell organizations designed to hide their tax-deductible contributions. For the frightening details, read Jean Mayer’s Dark Money: The Hidden History of the Billionaires Behind the Rise of the Radical Right.

The new tax law also will provide more work for CPAs and tax attorneys. They always win with the arrival of new legislation.

So, short term, the economy and stock market may spike, boosting Republican hopes to hold both houses of Congress in the 2018 midterm elections. But the nation risks experiencing what one TV commentator termed “a sugar high”—a burst of economic energy followed by a crash. If so, Trump supporters also will feel pain. The deficit—once an object of Republican concern—may grow so large that even Democrats express heartfelt concern. And in 2025, most middle-class Americans’ taxes will go up.

Let’s get real. No legislation is perfect. But laws passed without a meaningful measure of bipartisan support deliver “wins” that leave more than the minority party as losers.

To you who celebrate Christmas—Merry Christmas! May the holiday renew your spirits. To all: Happy New Year!  

The post will break for a few weeks and return January 12.

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FOUR TOUGH TRUTHS

In the movie A Few Good Men (1992), Jack Nicholson is the Marine colonel commanding the U.S. base at Guantanamo. He famously tells a court martial, “You can’t handle the truth.” Given Tuesday’s election in Israel, last November’s American Congressional election and the state of the world, a number of regrettable truths confront us.

Truth #1: The victory of Israel’s Likud party, headed by Benjamin Netanyahu, is scary. Likud won 30 of the Knesset’s 120 seats—hardly a mandate. The problem? Trailing in the polls, Bibi played to the worst fears and prejudices of the rabid right, warning that Israeli Arabs were voting (legally) in big numbers. He also said that he would never allow a Palestinian state—after long accepting a two-state solution given a partner on the other side. (Frustrating truth: Mahmoud Abbas was never that partner.) Yesterday, Bibi backtracked. He’s been misunderstood. He favors a Palestinian state under conditions that guarantee Israeli security. I do, too. But can anyone believe Bibi? His campaign rhetoric sent a statement to Jews in Israel and the Diaspora, as well as to the world community: “We can hate as much as they do.” Oh wait. Just kidding.

Truth #2: The American political system isn’t working on the national scale—and needs an overhaul. President Obama seems out of touch to too many Americans. (Age-old truth: you can’t please all of the people all of the time.) His vaunted communications skills are way overrated. Worse, Congress makes a mockery of our democracy. Republicans detoured around the president and welcomed Netanyahu to speak before Congress in great part because they, like Bibi, pander to the far right. Allied truth: Money talks. Says who? The Supreme Court. Corporations have as much right to speak out as people. Only lots more cash. (Do I hear the Koch brothers wheezing in approval or is that Sheldon Adelson?) Grating truth: Many Republicans oppose the president because a Black man (defined in the U.S.A. as anyone with a drop of Black blood) sits in the White House. Mr. Obama can change his policies. He can never change his genetics.

Truth #3: Democracy may not always be the answer. How has it done in Iraq? Shiites continue to suppress Sunnis in a continuation of a religious conflict going back 13 centuries. Turkey’s Islamist president Tayyip Recep Erdogan has turned democracy into a sham. Iran’s elected officials, including the president, fall under the thumb of the Supreme Leader, Ayatollah Ali Hosseini Khamenei. And would you really praise democracy in Egypt under the Muslim Brotherhood? Nasty truth: enlightened autocracy might work better in some cases. That’s the position of the noted journalist/scholar Robert Kaplan in his recent book, Asia’s Cauldron. Kaplan cites the incredible flowering of Singapore under Lee Kwan Yew and Malaysia under Mahathir Mohamad (whom Kaplan nonetheless recognizes as an anti-Semite). And no, I’m not a fan of Vladimir Putin, elected by, but hardly accountable to, the Russian people. By the way, he’s wonderfully satirized (and wonderfully played by Lars Mikkelsen) in this season’s Netflix hit House of Cards.

Truth #4: The Giants will not win the World Series. It’s 2015, people—an odd numbered year. The Giants just don’t do that. Joyful truth: they’ll still help take our minds off Truths 1–3.

Read the first two chapters of FLIGHT OF THE SPUMONIS here at www.davidperlstein.com. You can get a signed copy from me—$20 plus $3 postage if required—or order a soft cover or e-book at Amazon.com.

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