Category Archives: Public Policy and Governance

If It’s Mental Illness…

I always hesitate before blogging about guns, knowing that posting any opinion other than “yes, you have a constitutional right to pack heat whenever or wherever you want, and it doesn’t matter how many times you’ve beaten your wife” will generate howls of opprobrium and hysterical accusations that I want to disarm everyone.

But still.

The Orange Menace in the Oval Office is on record–well, on twitter–saying that America doesn’t have a gun problem, that what we do have is a mental health problem.

There are, of course, multiple available rebuttals to that statement. We might point out that other countries with similar percentages of mentally-ill citizens but fewer guns have dramatically fewer incidents of gun violence. We might point out that allowing civilians to own lethal assault weapons developed for warfare is evidence of a different sort of mental illness. We might point out that the Second Amendment doesn’t require a failure to differentiate between a hunting rifle and an AK-15.

Even if we ignore those arguments, we’re left with a question that our Tweeter-in-Chief conveniently ignored: if mass shootings are attributable to failures of our efforts to keep firearms out of the hands of the mentally ill, why did he eliminate Obama’s restrictions on gun ownership for people with mental illness? (We do know the answer to that: Trump’s obsessive hatred of Obama and his fixation on erasing any and all measures attributable to his predecessor.)

As NBC reported in February,

President Donald Trump quietly signed a bill into law Tuesday rolling back an Obama-era regulation that made it harder for people with mental illnesses to purchase a gun.

The rule, which was finalized in December, added people receiving Social Security checks for mental illnesses and people deemed unfit to handle their own financial affairs to the national background check database.

Had the rule fully taken effect, the Obama administration predicted it would have added about 75,000 names to that database.

President Barack Obama recommended the now-nullified regulation in a 2013 memo following the mass shooting at Sandy Hook Elementary School, which left 20 first graders and six others dead. The measure sought to block some people with severe mental health problems from buying guns.

The GOP-led House and Senate obediently passed the bill nullifying the Obama-era measure, and officials of the NRA “applauded” the action.

Of course they did.

Sen. Chris Murphy, D-Conn., a leading gun control advocate in Congress, called out Republicans over the move.

“Republicans always say we don’t need new gun laws, we just need to enforce the laws already on the books. But the bill signed into law today undermines enforcement of existing laws that Congress passed to make sure the background check system had complete information,” he said in an emailed statement.

So, welcome to the U.S. of A… On this Thanksgiving Day, feel free to express your gratitude for a country where any raving lunatic can legally buy a gun, and the twittering lunatic in the White House can launch nuclear weapons.

American exceptionalism, baby!

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Meanwhile, At The FCC….

Unlike many–most?–of Trump’s appointees, FCC Chairman Ajit Pai appears to know what he’s doing and how to do it. And that’s a big problem.

He’s already rolled back what The Street calls a “pillar of U.S. media ownership restrictions.

“Owners of local television stations will be permitted to buy a local radio station or newspaper in the same market after the Federal Communications Commissions on Thursday, Nov. 16, voted to lift the ban on cross-ownership that had stood since 1975. The agency, which has been fast eliminating restrictions long opposed by TV station companies, also eliminated a ban on two TV stations in the same market from entering into joint sales agreements to sell advertising.

The restrictions being lifted were intended to prevent any one political perspective from dominating a given media market. Here in Indianapolis, where right wing Sinclair is proposing purchase that will allow it to dominate the radio market, this new permissiveness is likely to facilitate a market blanketed with Fox-like, right wing propaganda.

FCC Chairman Ajit Pai, a Republican who orchestrated the changes, said the bans and other restrictions were no longer relevant given the advent of online news sources and the shrinking circulations of most local newspapers. The two Democrats on the five-person commission, echoing other critics, countered that Pai understated the importance and impact that local media sources continue to have despite the rise of Facebook Inc. and other social media platforms.

The damage this change will inflict pales, however, in comparison to Pai’s most cherished goal–the elimination of net neutrality rules.

As Time Magazine and a number of other news outlets have reported,

Federal Communications Commission Chairman Ajit Pai on Tuesday followed through on his pledge to repeal 2015 regulations designed to ensure that internet service providers treat all online content and apps equally, setting up a showdown with consumer groups and internet companies who fear the move will stifle competition and innovation.

The current rules, known as net neutrality, impose utility-style regulation on ISPs such as Comcast, AT&T and Verizon to prevent them from favoring their own digital services over those of their rivals.

Pai says he wants the FCC to stop “micromanaging” the Internet. What he calls micromanaging is what we used to call “regulating,” and although it is certainly possible to point to examples of excessive regulation, there was–and is–a reason for establishing “rules of the road.” The reasons for net neutrality rules are especially compelling.

As the Internet Association, a group composed of major internet companies such as Google and Amazon, put it,

“Consumers have little choice in their ISP, and service providers should not be allowed to use this gatekeeper position at the point of connection to discriminate against websites and apps.”

The group is fighting the change. So are many other organizations concerned with consumer rights.

Consumers Union predicted a repeal of net neutrality would allow ISPs to raise their prices and give preferential treatment to certain sites and apps.

“Strong net neutrality rules are vital to consumers’ everyday lives and essential to preserving the internet as we know it today — an open marketplace where websites large and small compete on equal terms and where information and ideas move freely,” said Jonathan Schwantes, the advocacy group’s senior policy counsel.

Two of the FCC’s five voting commissioners signaled they will oppose Pai’s plan.

Commissioner Jessica Rosenworcel derided Pai’s plan as “ridiculous and offensive to the millions of Americans who use the internet every day.”

Commissioner Mignon L. Clyburn skewered Pai’s proposals as “a giveaway to the nation’s largest communications companies, at the expense of consumers and innovation.”

Before being named to the FCC, Pai was an executive at Verizon. I’m sure that’s an irrelevant factoid.(cough, cough).

The last time net neutrality was attacked, John Oliver delivered such an effective argument against the change that the switchboards at the FCC were overwhelmed; his diatribe was said to have prompted some 150,000 calls. Scheduling the vote for the week after Thanksgiving is a rather transparent effort to avoid that sort of public outrage, an effort to change the rule while people are otherwise occupied.

Let’s not allow that strategy to work. I encourage everyone to click through, watch Oliver’s explanation of what’s at stake–and then call the FCC.

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Corporations Will Use Their Windfalls To Create Jobs. NOT.

Part of the mantra obediently recited by advocates of the mis-named “tax reform” bill is their touching (or feigned) belief that corporations will use the funds being repatriated and/or saved from the tax collector to create jobs.

Brings to mind the old adage about the triumph of hope over experience.

Ed Brayton relays the recent, eye-opening response by corporate CEOs to a speech by Gary Cohn, Trump’s chief economic advisor.

Trump’s chief economic adviser, Gary Cohn, took part in an event hosted by the Wall Street Journal that featured an audience full of CEOs, and when a Journal editor asked for a show of hands by those leaders who would invest in new capacity if their taxes were cut, very few hands went up. Cohn seemed shocked.

Cohn really shouldn’t have been shocked. We’ve been here before, and there is no reason to believe that the fundamentals–or the economic incentives– have changed. As Brayton notes, corporate profits are already at record highs, and credit is very cheap and readily available.

If those businesses believed that investing in new factories or equipment that might create more jobs would result in higher profits for them, they would already be doing it. But they’re not. Indeed, while this poll was an informal one, formal surveys of CEOs find the same result.

This summer, Bank of America Merrill Lynch asked 300 companies what they would do if Congress passed a “tax holiday” that allowed them to bring back massive amounts of money being held overseas at a lower tax rate. 65% said they would pay down their debt. Second most popular option? Stock buyback. Neither of those things creates new jobs. Indeed, when George W. Bush did the same thing in 2004, about $300 billion in cash kept in overseas subsidiaries was brought back at a ridiculous 5.25% tax rate. 80% of it was used to buy back stock. Why? Because it makes the shares of CEOs, which are a huge part of their compensation package, much more valuable. So the rich people benefit but no one else does.

I don’t know whether the lawmakers who continue to push this theory have convinced themselves of its credibility through constant repetition, or whether they are knowingly putting the best possible spin on an economic policy that repeated experience tells us is bogus. It probably doesn’t matter whether they are venal or stupid (not that the two categories are mutually exclusive); the outcome is the same: the rich get richer, and their political donations reward the lawmakers who’ve carried their water. Economic inequality and popular resentments continue to grow, along with political cynicism and social distrust.

It’s a prescription for upheaval, for further splintering of our already strained social fabric–and plenty of wealthy people understand that social unrest shrinks, rather than grows, the economy. As the contours of the tax “reform” bill  have become known, more than 400 American millionaires and billionaires have signed a letter to Congress demanding that Republican lawmakers not cut their taxes.

These wealthy Americans argue that reducing taxes on the richest families at a time when the the nation’s debt is high and inequality is at the worst level since the 1920s would be a colossal mistake.

The letter calls on Congress to not to pass any tax bill that adds to the debt and that “further exacerbates inequality.” Instead of cutting taxes of the wealthy, the letter tells Congress to raises taxes on rich people like them.

If money talks, theirs is the money Congress should listen to.
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How Stupid Do They Think We Are?

I really wasn’t going to write any more about the GOP tax plan, at least until we’ve seen whether it is likely to pass in anything like its current form. But I was on the treadmill yesterday morning and, as usual, was watching television to take my mind off the fact that I was exercising. I was absolutely astonished to see a political advertisement touting the tax plan’s benefits to “ordinary middle-class Americans,” who would see an “average” tax saving of over 1,100.

The voice-over went on to reassure listeners about the fairness of the measure, asserting that the tax brackets for the rich weren’t being lowered, and implying–without actually saying it– that the tax liability of the top 1% would not decrease.

The blatant dishonesty of this ad appalled me.

Let’s just examine that bit about the “average middle-class taxpayer.” (Ignore, for the moment, the fact that Congressional Republicans at one point defined an annual income of 450,000 as “middle class”–I don’t know whether the criticism that little item generated has caused them to back off that particular bit of nonsense.) Let’s just talk about averages.

What’s the average of a mouse and an elephant?

More to the point, if my income is “averaged” with the income of Bill Gates, the resulting number is going to be pretty misleading about both of us.

Every analysis I have seen–even those produced by right-leaning think tanks–shows wealthy individuals getting the lion’s share of the tax “relief” under both the House and Senate  versions. According to Politifact,

  • The highest-income 0.1 percent of taxpayers — those who had an income of over $3.7 million in 2015 — would get an average tax cut of more than $1.3 million in 2017.
  • That same group would receive 18 percent of the tax reduction, while the bottom 60 percent of taxpayers would receive 16.4 percent of the reduction.

Credible sources analyzing the plan’s consequences quibble on some of the details, but all of them agree on two points: the cuts disproportionately benefit the rich, and they will add somewhere between 1.5 and 1.7 trillion dollars to the current deficit.

A deficit of that magnitude would be unsustainable, and the result would be savage cuts in social welfare programs like Social Security, Medicare and Medicaid. (Those cuts, of course, would come later–In the time-honored practice of politicians everywhere, the bill pushes the most noticeable negative consequences to a future election cycle.)

I was flabbergasted at the out-and-out dishonesty of the television spot. I’ve seen plenty of spin, but this went far beyond that–it took flat-out lying to an entirely new level. The extra adrenaline probably improved my workout, but all I could think of was “how stupid do the people who created this ad think Americans are?”

And then all I could think about was, what if they’re right?

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This Is Why We Can’t Have Nice Things….

Economists like to talk about “opportunity costs”–if you do X, you’ve lost the opportunity to do Y. I’ve been thinking about what we could do with the taxes we don’t get on the funds rich people hide from the IRS in those tempting tax havens, as disclosed by the Paradise Papers.

A column in the New York Times explained

A treasure trove of documents given the name of the Paradise Papers was unveiled last week, giving us a clearer idea of how rich people and powerful companies keep their money from the prying eyes of the Internal Revenue Service.

It seems that–if you are rich enough to afford the right law firm and tax haven–you can navigate the Internal Revenue Code in such a way as to legally evade lots and lots of taxes. It turns out that sixty-three percent of foreign profits made by American multi-national corporations are squirreled away in those hideouts, out of the sight of those pesky IRS agents.

That disclosure was annoying enough, but what really pissed me off were a couple of estimates of what those evaded taxes might have paid for.

We worry a lot about the cost of social programs in this country, saying we simply can’t afford many things that we know could bring big rewards. But that missing $70 billion from corporate offshore tax avoidance would go a long way. A mere $140 million could replace the lead water pipes poisoning children in Flint, Mich. It would cost just an estimated $22.5 billion to end homelessness by providing all needy families with rental assistance. President Barack Obama asked Congress for $75 billion for his initial universal preschool plan; universal preschool for all 3- and 4-year-olds would cost $98.4 billion over 10 years.

Senator Bernie Sanders’s College for All Act doesn’t even require the federal government to cover the entire $70 billion cost of public college tuition, but it could if this money were available to the government. Divvying up $70 billion a year to each parent in the country would be a huge step toward ending childhood poverty. And the available pot of money, were offshore tax avoidance not an option, would be even larger if rich individuals were taxed at the rates we all face here at home.

According to The Hill, if those writing our tax laws didn’t prefer letting their donors off the hook for their fair share, we could afford pretty much anything. Here are just a few of the things The Hill says we could pay for if we weren’t rushing a $1.5-trillion debt-financed gift to billionaires through the legislative process:

What makes this effort to take from the poor to give to the rich especially galling is the hypocrisy of the GOP “deficit hawks.”

 After spending eight years railing against the evils of deficits, after blocking numerous important investments because we “couldn’t afford it” and after swearing time and again that debt was our No. 1 enemy, most Republican representatives have tossed their anti-deficit positions aside in the blink of an eye. That is galling, yes.

But perhaps even more galling is that, having thrown their fiscal caution to the wind and having decided that now, with a Republican in the White House, debt is no longer a concern, their best idea for spending hundreds of billions of dollars is to give it all to the rich. For that, they should be truly ashamed of themselves.

When you wonder why Americans can’t have universal health care, or great trains that run every 20 minutes on tracks that are smooth and well-maintained, or other public services and amenities that citizens of other developed countries enjoy, just remember: we give  money to our billionaires instead.

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