Tax Breaks for the Rich – immigrationcourtside.com

https://www.nytimes.com/2017/11/20/opinion/lies-incoherence-and-rage-on-tax-cuts.html

Krugman writes:

“One thing you can count on in 21st-century U.S. politics is that Republicans will lie about taxes. They did it under George W. Bush, they did it under Barack Obama and they’re still doing it under Donald Trump.

Yet this time is different. It’s not just that the lies have gotten even more brazen. There’s now a combination of incoherence and rage that we, or at least I, haven’t seen before. These days, they can’t even seem to get their fake story straight — and they literally start yelling obscenities when someone tries to point out the facts.

G.O.P. lies about taxes generally involve two issues: who is hurt or helped by tax changes, and what these changes will do to the budget.

Thus, when George W. Bush cut taxes in 2001 and 2003, he and his party repeatedly insisted that the tax cuts were primarily for the middle class. In fact, while there were some middle-class tax breaks in the package, such as an increase in the child tax credit, these were dwarfed by cuts in tax rates on high incomes, reduced taxes on dividends and repeal of the estate tax. Over all, the richest 1 percent saw a much larger increase in after-tax income than middle-class families did.

At the same time, the Bush administration used a series of gimmicks to hide the true fiscal cost of the plan, such as delaying the implementation of some tax cuts while pretending that others would expire when the actual intention was to make them permanent.

When Obama took office, these tricks were simply flipped on their head. Republicans insisted, falsely, that Obama had imposed a “massive tax increase” on the middle class; in fact, for the most part he actually cut middle-class taxes. Meanwhile, they insisted that the surge in the budget deficit caused by the aftermath of the 2008 financial crisis was permanent, and ridiculed the Obama administration’s claims that deficits would fall sharply once crisis spending ended and tax receipts recovered; in fact, that’s exactly what happened.

So what’s different this time? As in the Bush years, Republicans are claiming to be offering a middle-class tax cut. But where Bush truly was cutting taxes on the middle class, just much less than he was on the wealthy, current Republican plans would raise those taxes on many lower- and middle-income families, even as they go down for the wealthy. (Steven Mnuchin, the Treasury secretary, claims that only “million-dollar earners”would see tax increases. This is the opposite of the truth.

Oh, and a memo to journalists: If you play it safe by reporting this as “Democrats say” that middle-class taxes will go up, you’re misleading your readers: Those estimates come from the Joint Committee on Taxation, Congress’s own nonpartisan scorekeeper.

How can Republicans like Paul Ryan, the speaker of the House, pretend to be helping the middle class? It depends crucially on a new kind of budget gimmick: Both the House and Senate tax-cut bills do contain some middle-class tax breaks — but only for the first few years. Then they expire.

Take one of Ryan’s favorite examples, a family with two children and earning $59,000 a year. That family would indeed get a tax break next year. But the break would rapidly dwindle and turn into a tax increase by 2024.

The Republican response is to claim that these tax breaks wouldn’t really expire, that Congress would eventually renew them. That’s quite doubtful — and even if true, it means that the tax plans would add much more to the national debt than the G.O.P. admits. Which brings me to the whole budget deficit issue.

Not long ago, leading Republicans claimed to be deeply concerned about budget deficits. Only fools and centrists took the Republicans seriously. Still, the abrupt shift to nonchalance about adding trillions to the debt in order to cut taxes on corporations and the wealthy is causing a bit of whiplash even among cynics. How do they justify the shift?

Well, they don’t seem to have settled on a story. Mnuchin keeps asserting that tax cuts will pay for themselves, going so far as to claim (falsely) that Treasury has released a study showing this. Mick Mulvaney, the budget director, cheerfully acknowledges that they’re using gimmicks to pass a bill that permanently cuts taxes on corporations, and not to worry. Whatever works, it seems.

So we’re really looking at an unprecedented level of dishonesty here. But what happens when you try to explain what’s going on? When Senator Sherrod Brown tried to point out, correctly, that the Senate G.O.P.’s tax bill heavily favors the rich, Senator Orrin Hatch exploded, calling it “bull crap” and asserting that he grew up poor (which is relevant why, exactly?).

Sorry, but this isn’t the righteous anger of a man falsely accused of wrongdoing. It’s the rage con men always exhibit when caught out in their con.

But what’s the con about? The very incoherence of the arguments Republicans are making for their plans shows that it’s not about helping the economy, let alone ordinary families. It really is about making the rich richer, at everyone else’s expense. If this be bull crap, make the most of it.”

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As usual, the GOP counts heavily on voters being too biased or gullible to figure out that they are being fleeced. And, to date, they have been correct. So, why stop a “winning strategy” even if it is based on lies, demonstrably bogus assumptions, and other “cons?”

PWS

11-21-17

http://www.huffingtonpost.com/entry/paul-ryan-obamacare-medicaid_us_58d01716e4b0be71dcf6d5a7

Ryan Grim writes:

“Speaker Ryan and others often argue to governors that a Medicaid per capita cap is about more flexibility (even though states already enjoy expansive flexibility in their Medicaid programs) rather than what it is really about: a way to achieve big federal spending cuts and cost-shifts to states,” Edwin Park, a health policy analyst for the Center on Budget and Policy Priorities, said in an email. “The House bill makes that starkly clear: $880 billion in federal Medicaid spending cuts over 10 years by ending the expansion and imposing a per capita cap without any new flexibility.”

Ryan’s plan would cut taxes by some $275 billion over the next decade, mostly for the rich, and is setting the stage, he told Fox News’ Tucker Carlson, for a much bigger tax cut to come. That’s what’s going on here.

When Ryan refers to seeing “the forest through the trees,” he is arguing to conservatives that they should swallow elements of the Obamacare repeal-and-replace bill that they don’t like in order to seize the once-in-a-half-century opportunity to destroy a major federal entitlement program. Everything else is just trees.

Ryan is right that it is an enormous forest. Some 11 million seniors and people with disabilities are covered by both Medicare and Medicaid, according to a new report from the Kaiser Family Foundation. That’s one in every five Medicare beneficiaries. Forty percent of those are under age 65 with permanent disabilities. Two out of three Medicare beneficiaries who are in nursing homes have their care covered not by Medicare, but by Medicaid. Many who get home-health care are similarly covered by Medicaid.

Social insurance organized by the government is a relatively new phenomenon. Before the New Deal, society dealt the the elderly and infirm by shunting them away in “poorhouses,” or by moving parents in with their children. “I can remember the terror that existed with regard to those county poor farms,” said former Rep. John Dingell Jr. (D-Mich.), who left office in 2015 after serving six decades.

Dingell’s father, also a prominent House Democrat, was an architect of the Social Security Act. It had a tangible benefit to the Dingell home.

“Social Security — this is one of the things of which my dad was very proud — closed 1,100 old folks’ homes in New York. Eleven-hundred. And that was just one example, but it tells you what it did all over the country,” Dingell said in an interview for an article on poorhouses.

Before Social Security, he said, “everybody and his second cousin piled in with their families. I had relatives that came to stay with my dad and mom I didn’t even know were relatives. To tell you the truth, I’m not sure they are. And my grandad on Dad’s side, who threw Dad out of the house, came to live with Dad. Dad was the only one of his kids who’d take care of him. He was, quite frankly, the only one who could afford to do so, because Pop was making a fairly decent living during the war, but he was supporting a whole tribe of Dingells and Selmerses and a whole bunch of others who had other Polish names, but were related.”

Paul Ryan, in fact, got Social Security benefits himself; he was 16 when his father died. “It was a tough time for our family, and Social Security was there to help us when we needed the help,” Ryan has said.

Ryan saved much of to pay for school at Miami University of Ohio, where ― who knows? ― a few dollars of it may have gone to pay for the kind of keg he would crowd around to fantasize with buddies about destroying Medicaid, which was created as part of the Great Society program in the 1960s.”

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The competition for “King of the Swamp” is going to be fierce this year. But, certainly, the Speaker is building his credentials with his unrestrained enthusiasm for shorting the needy to enrich the rich.

PWS

03/21/17

Tag: Tax Breaks for the Rich

PAUL KRUGMAN IN THE NYT: GOP IRATE AT BEING CALLED OUR ON ITS BIG TIME TAX LIES! – The “Anti-Robin –Hood” Party Is In Full Attack Mode! – Screw Everyone Else To Hand Out More Bennies To The Super Rich!

HuffPost: Speaker Ryan Pumped-Up About The Prospect Of Killing Medicaid, Helping Fat Cats Get Fatter, Forcing Low Income Seniors Into Poor Houses Where They Belong!

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