Posts Tagged ‘Tax cuts’

I BELIEVE IN AMERICA

The film begins with the screen black. A man’s voice declares, “I believe in America!” His Italian accent tells us he’s an immigrant. The camera then reveals him in closeup—mustache and suit as black as the background in which he seems suspended. A humble if successful undertaker, he pleads with someone we cannot see: His daughter has been dishonored. He seeks justice. But it will not be in the American way. Or will it?

The Godfather presents America as the land of opportunity. For many millions born on foreign shores and their first-generation American children, it has been just that. But the irony of the undertaker’s speech soon hits home. The Godfathermakes clear that in America, hard work and risk-taking offer great rewards. These values may be applied to a great many enterprises. Not all need be legal.

Those who saw opportunities by breaking the law are duly noted in downtown Las Vegas’s Mob Museum. I was there last week, since I did a small portion of the research for my next novel on their website. Moreover, I admit to a fascination with the Mob—particularly Jewish gangsters of the first half of the 20th century. They were legion. Money guys like Arnold Rothstein and Meyer Lansky? Sure. But many more were stone-cold killers like Ben “Bugsy” Siegel, Dutch Schultz, Abe “Kid Twist” Reles and Louis “Lepke” Buchalter. (FYI, Lansky and Siegel appear in the novel.)

The Mob Museum details the rise—and fall—of the Sicilian Mafia and its affiliates, including the Jewish gangs, which provided murder—and lots of it—for hire. (Protestant and Irish gangs terrorized New York and Boston before them). For many young immigrants lacking education and living in slum conditions, crime paid. Death often came early; success comes with a price.

Ultimately, the FBI squeezed and put away the classic Mob bosses. Vegas cleaned up its act. Other ethnic groups stepped in. Puerto Ricans, Colombians, Dominicans, Mexicans, Chinese, Russians and Vietnamese, as well as groups native to the Heartland, carved out their own American opportunities.

This nation will always face the Mob in some form. But ordinary criminals—even the drug cartels—will not destroy our democracy. We’ll rot at the hands of corporations and the super-rich. They buy politicians and virtually write our laws to eliminate regulations protecting ordinary citizens and reduce their taxes and liabilities, society be damned. In the process, they brush crumbs to the floor. Some people lap them up.

In the musical Fiddler on the Roof, Tevye the milkman advises, “It’s no shame to be poor, but it’s no great honor, either.” I support ambition. I succeeded financially because I risked working for myself and pushed to meet my goals—honestly and ethically.

I also support a sense of balance. The Christian Bible tells us that not money but theloveof it is the root of all evil (1 Timothy 6:10). The Mishnah offers wisdom through a Jewish lens: “Who is rich? He who appreciates what he has…” (Avot 4:1).

I believe in America. I also believe that keeping the pursuit of wealth from devouring ethics requires making wise choices. November will reveal whether greed outweighs goodness and lemming-like, this nation marches off a cliff.

For you who are celebrating Yom Kippur starting Tuesday night, may you have a meaningful holiday and be sealed for good in the New Year.

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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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