Indiana–Always Last

The Hill recently reported on a number of states where 2018 will see raises in the minimum wage. Indiana, of course, was conspicuously absent from their list.

The lowest wage workers in 18 states will get a boost in their paychecks starting on New Year’s Day, as minimum wage hikes take effect.

Many of the wage hikes are phased-in steps toward an ultimately higher wage, the product of ballot initiatives pushed by unions and workers rights groups over the last few years.

The minimum wage in Washington state will rise to $11.50 an hour, up 50 cents and the highest statewide minimum in the nation. Over the next three years, the wage will rise to $13.50 an hour, thanks to a ballot measure approved by voters in 2016.

Mainers will see their minimum wages rise the most, from $9 an hour to $10 an hour, an 11 percent increase. Voters approved a ballot measure in 2016 that will eventually raise the wage to $12 an hour by 2020.

Arizona, California, Colorado, Hawaii, New York, Rhode Island and Vermont will see their minimum wages increase by at least 50 cents an hour. Smaller increases take effect in Alaska, Florida, Michigan, Minnesota, Missouri, Montana, New Jersey, Ohio and South Dakota.

Our overlords at the Indiana Statehouse like to brag that keeping Indiana a “low wage” “right to work” state means we are attractive to businesses looking to relocate. What they don’t seem to understand is the flip side of the equation, beginning with the state’s inability to provide the quality of life amenities (not to mention smooth highways)  that appeal to businesses proposing to relocate. Higher wages would generate more tax dollars. Higher wages would also reduce the number of people who–despite working full-time–must depend upon social welfare programs funded by tax dollars simply to make ends meet.

I have posted before about the ALICE study, conducted a couple of years ago by Indiana’s United Ways. That study found

  • More than one in three Hoosier households cannot afford the basics of housing, food, health care and transportation, despite working hard.
  • In Indiana, 37% of households live below the Alice threshold, with some 14% below the poverty level and another 23% above poverty but below the cost of living.
  • These families and individuals have jobs, and many do not qualify for social services or support.
  • The jobs they are filling are critically important to Hoosier communities. These are our child care workers, laborers, movers, home health aides, heavy truck drivers, store clerks, repair workers and office assistants—yet they are unsure if they’ll be able to put dinner on the table each night.

Here in Indiana, we don’t seem to find ALICE poverty problematic or immoral, despite the fact that virtually all of us who are more privileged depend upon the services these people provide.

Even more immoral, in my humble opinion, is having my tax dollars effectively paying a portion of the wages of Walmart, McDonalds and other big employers’ workers. As I have previously posted,

Walmart generates nearly $500 billion in revenue annually; over the past five years, its yearly profits have averaged $15.5 billion dollars, and the family that owns it has a net worth of $129 billion dollars.

Despite its obvious ability to do so, the company declines to pay its employees a living wage, instead relying upon government programs–taxpayer dollars– to make up the difference between its workers’ paychecks and what they need to make ends meet. In essence, when a Walmart employee must rely on food stamps or other safety-net benefits, taxpayers are paying a portion of that employee’s wages.

Walmart (including its Sam’s Club operation) is currently the largest private employer in the country–and one of the largest recipients of corporate welfare. Walmart employees receive an estimated $6.2 billion dollars in taxpayer-funded subsidies each year. Money not paid out in salary goes directly to the shareholders’ bottom line.

The Indiana legislature declines to offer even a modicum of help to the third of Hoosiers who are working for below-subsistence wages, but they are evidently happy to continue subsidizing the wealthy.

The Hoosier bottom line.

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More Bad News About The Tax “Reform” Bill

I have a feeling I should keep the title of this post for repeated future use.

It’s hard to know which of the damaging provisions of the tax bill were intentional, and which were the result of the unseemly haste and secrecy that marked its passage. As I have previously noted, scholars of philanthropy have predicted that it will cause a significant decline in charitable giving. (And yes, it would be nice if people gave money because they simply felt generous, but in the real world, deductibility that makes the gift less costly to the giver is a pretty important factor.)

Now we have reports that the tax bill will dramatically reduce the production of (much needed) low-income housing and the preservation of historic structures.

According to the New York Times

SAN FRANCISCO — The last time that Congress approved a sweeping overhaul of the federal tax code, in 1986, it created a tax credit meant to encourage the private sector to invest in affordable housing. It has grown into a $9 billion-a-year social program that has funded the construction of some three million apartments for low-income residents.

But the Republican tax plan approved last month amounts to a vast cutback, making it much less likely that such construction will continue apace. Because the tax rate for corporations has been lowered, the value of the credits — which corporations get in return for their investments — is also lower.

“It’s the greatest shock to the affordable-housing system since the Great Recession,” said Michael Novogradac, managing partner of Novogradac & Company, a national accounting firm based in San Francisco.

According to an analysis by his firm, the new tax law will reduce the growth of subsidized affordable housing by 235,000 units over the next decade, compounding an existing shortage.

Then there’s a report from Shelterforce about the effect of the tax bill on a Chicago neighborhood revitalization project and other projects like it.

Urban and rural communities throughout the country have historic buildings that can be preserved and repurposed for multiple community needs. 

In addition to revitalizing communities such as Uptown and spurring local economic growth, the HTC returns more to the U.S. Treasury than it takes. According to a study commissioned by the National Park Service, since inception, $25.2 billion in federal tax credits have generated more than $29.8 billion in federal tax revenue from historic rehabilitation projects. The credit generates new economic activity by leveraging private dollars that not only preserve historic buildings but also create jobs; through 2016, the rehabilitation of 42,293 historic buildings has created more than 2.4 million jobs, according to the Historic Tax Credit Coalition.

Though HTCs were preserved in the tax bill passed by Congress, its value was diminished. Instead of allowing investors to take the full value of the credit when a building opens, as they can now, it parcels out the credit over five years. Historic preservationists fear this change will decrease the attractiveness of the credit and consequently negatively impact its pricing. A project seeking $2 million of Historic Tax Credit investments could lose as much as $400,000 in valuable capital. Historic rehabilitation projects frequently have higher costs, greater design challenges, and weaker market locations—all of which can already cause lender and investor bias against such investments.

Another casualty of tax reform is the demise of tax credit bonds. While Private Activity Bonds survived the final assault, new key tools such as Qualified Energy Conservation Bonds (QECB) did not.

Yessir. Some tax “reform.”

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Oh Canada..

What wouldn’t I give to trade Trump for Justin Trudeau …And not just for looks, civility and intellect!

This text was posted to Facebook, under a photograph of the Canadian Cabinet:

O Canada…..What a cabinet:
Minister of Health is a doctor.
Minister of Transport is an astronaut.
Minister of National Defense is a Sikh Veteran.
Minister of Youth is under the age of 45.
Minister of Agriculture and Agri-Food is a former farmer.
Minister of Public Safety and Emergency Preparedness was a Scout.
Minister of Innovation, Science and Economic Development was a financial analyst.
Minister of Finance is a successful businessman.
Minister of Justice was a crown prosecutor and is a First Nations leader.
Minister of Sport, and Persons with Disabilities is a visually impaired Paralympian.
Minister of Fisheries and Oceans, and Canadian Coastguard is Inuit.
Minister of Science is a medical geographer with a PhD.

New titles include
Minister of Immigration, Citizenship and Refugees was an Immigration critic.
There are scientists in the cabinet, and it is made up of 50% women.

And then, of course, there’s the Trump Cabinet….

Betsy DeVos (one of only 3 women) is a religious zealot; she had never set foot in a public school classroom, nor sent her own children to a public school. The effects of that lack of familiarity were in abundant display at her confirmation hearing, where she proved embarrassingly ignorant of Department responsibilities and policies.

It wasn’t that long ago that Jeff Sessions was deemed too racist to be a federal judge by his Republican colleagues. He has reinstituted policies that decades of research have demonstrated are counterproductive.

Scott Pruitt (aka Mr. Fossil Fuels) has done his best to destroy the environment and roll back regulations meant to safeguard clean air and water.

Ben Carson doesn’t seem to know what time it is, let alone what housing policy is. Ditto Rick Perry over at the Department of Energy–the name of which he forgot during the GOP primary debates.

Rex Tillerson may have run an oil company, but management experience hasn’t kept the seasoned veterans who have fled the State Department in droves, or kept the President from ignoring him. (In typical Trump fashion, the President says his is the only voice that matters anyway.)

Tom Price is already gone–too extravagant even for Mr. Gold Toilet.

Ryan Zinke wants to sell off National Monuments and remake Interior into a paramilitary something or other….

I could go on. And on. Even the less horrifying nominees have mostly come to their positions with absolutely no background in public service and no obvious aptitude for it.

Not only do we not have a cabinet that looks like America, we don’t have a cabinet that gives a rat’s patootie about America, or Americans, or the common good.

We’ve all seen better cabinets at IKEA.

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Our “Seamless Garment” Problem

When I was a very new academic, I loved attending conferences and listening to scholars from various institutions deliver papers that illuminated issues with which I’d struggled.

One of those issues was my puzzlement about why some religious folks seemed unable to “live and let live”–to understand the Bill of Rights as a list of things that government wasn’t supposed to decide. You go to XYZ church, I go to ABC–government shouldn’t be involved in those choices. I read such-and-such books, you consider them evil. Not government’s concern. Etc.

I certainly understood that people of good faith could disagree on where lines got drawn, but I lacked a description for those insisting that government use its power to impose their religious beliefs on everyone else. Then I attended a conference presentation that gave those people and that insistence a label: the “seamless garment” folks.

Seamless garment folks are people who see government and religion as one inseparable authority; when government won’t legislate their beliefs, they experience that refusal as discrimination.

The frustration of the Seamless Garment folks is arguably what has led Evangelical Christians to support Donald Trump (and especially his Seamless Garment Vice President, Mike Pence.) Their insistence on using government to require others to act (or not) in accordance with their beliefs has now eclipsed their attention to such biblical admonitions as caring for the widow and orphan and adhering to the Golden Rule.

What have we seen from these folks during Trump’s first year? A writer for Vox supplies a list.

In my first year at Vox, I’ve covered a range of religion stories — from witches casting spells against Trump to controversial debates over the alt-right at the annual Southern Baptist Convention conference. In that time, I’ve noticed a few distinct, related patterns emerging. Most notably, Christian nationalism is getting stronger — even as that nationalism has both caused divisions within the evangelical community and led to wider politico-religious divisions in America, cleaving white evangelicals, from, well, everybody else.

The article lists five “take-aways”:

  • Religious minorities are experiencing a spike in discrimination. Muslim communities have been particularly hard-hit; anti-Islamic incidents have soared.   There’s been a 44 percent rise in anti-Muslim hate crimes and a 57 percent increase in Islamophobia overall. Anti-Semitism has increased as well.
  • Evangelical solidarity is showing fissures. Their demographics are changing and their communities are becoming more diverse; like other young people, young evangelicals have different priorities than seniors, and are significantly less anti-gay. Many of them are uneasy being tied to the Trump presidency– the Southern Baptist Convention, a body that represents nearly 40 percent of evangelical Protestants in America, passed a near-unanimous resolution condemning the alt-right.

And, of course, there was Roy Moore. His Alabama special election campaign, late in 2017, seemed to capture the religious zeitgeist, as evangelicals wrestled with the question of whether to support a man who had been accused of molesting teenage girls if it also meant supporting a pro-life, even theocratic candidate. The reasons for white evangelical support of Moore were varied, but the outcome of the election — which showed the growing influence of evangelicals of color — revealed that changing demographics, not changed minds, were responsible for Democrat Doug Jones’s victory.

  • Spiritual but not religious is becoming a significant voting bloc. The author noted that many of the people she interviewed said that the need for inclusive, LGBTQ-affirming spaces had alienated them from the religions they had grown up in or near, and left them in search of something different.
  • On the other hand, Christian Nationalism is on the rise. The prominent Evangelicals around Trump believe Christians should take over America, and run it in accordance with biblical law. (In fairness, many other evangelicals see them as charlatans.)

The article ended with speculation about the role Evangelicals will play in 2018. This  paragraph, especially, struck a chord:

The greatest trick Christian nationalists — or their more explicit cousins to the right, white nationalists — have up their sleeve is to claim they are being persecuted. Central to the narrative of Christian nationalism in the White House, no less than the explicitly white nationalist protests in Charlottesville, is the idea that the “liberal media” and “PC police” have banded together to silence the “true” speakers of truth — a dynamic that, in the rhetoric of Christian nationalism, turns into a full-on war between good and evil (just consider how Roy Moore’s defenders compared him to Jesus during the last days of his campaign).

Unfortunately for the Seamless Garment members of the Christian Taliban, the U.S. Constitution specifically rejects the “seamlessness” they seek, and leaves matters of religious belief and observance to our individual consciences.

Fortunately for the rest of us, His Trumpness can’t change that.

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Will Our Barriers To Chaos Hold?

A couple of weeks ago, I read a column by Catherine Rampell that I can’t get out of my mind. Rampell began by recounting a remark by a Chinese venture capitalist who had opined that America was going through its own “Cultural Revolution.”

I remember China’s Cultural Revolution: Ushered in during the late 1960s by Chairman Mao, it was an incredibly tumultuous, traumatic period of political turmoil, supposedly intended to cleanse the People’s Republic of “impure and bourgeois” elements.

Universities were shuttered. Public officials were purged. Youth paramilitary groups, known as Red Guards, terrorized civilians. Citizens denounced teachers, spouses and parents they suspected of harboring capitalist sympathies.

Millions were uprooted and sent to the countryside for reeducation and hard labor. Millions more were persecuted, publicly humiliated, tortured, executed.

As Rampell notes, the reality of what happened in China seemed so remote from our current, relatively tame upheavals in the U.S., she laughed.

And yet I haven’t been able to get the comment out of my head. In the weeks since I’ve returned stateside, Li’s seemingly far-fetched analogy has begun to feel . . . a little too near-fetched.

Li said he saw several parallels between the violence and chaos in China decades ago and the animosity coursing through the United States today. In both cases, the countries turned inward, focusing more on defining the soul of their nations than on issues beyond their borders….

“Virtually all types of institutions, be it political, educational, or business, are exhausting their internal energy in dealing with contentious, and seemingly irreconcilable, differences in basic identities and values — what it means to be American,” he said in a subsequent email exchange. “In such an environment, identity trumps reason, ideology overwhelms politics, and moral convictions replace intellectual discourse.”

We may not be exiling our academic “elites” to rural farms, as the Chinese did, but higher education is being demonized. Suddenly, what Rampell calls “cultural artifacts”– the Statue of Liberty and the American flag–have become politicized. Specific words and ideas–climate change, fetus– are stricken or banned from government communiqués.

Both Mao’s decade-long tumult and today’s Cultural Revolution with American characteristics also feature cults of personality for the national leader, who thrives in the surrounding chaos. Each also gives his blessing, sometimes explicitly, for vigilantes to attack ideological opponents on his behalf.

But the most troubling parallel is the call for purges.

Then, Mao and his allies led purges of political and military ranks, allegedly for seditious or just insufficiently loyal behavior. Today, White House officials, right-wing media hosts and federal lawmakers have called for a “cleansing” of the nation’s top law-enforcement and intelligence agencies, because the “deep state” is conspiring against the president.

Rampell ends her column with an observation that I have made on this blog more than once: our institutional arrangements–Separation of Powers, federalism, etc.– have thus far kept America from engaging in truly cataclysmic behaviors. I would add to that list respect for political “habits not embedded in the law, but compelling enough to be considered democratic norms.”

What differentiates the (fully cataclysmic) China then from the (only relatively chaotic) United Status now is, among other things, our political institutions. Our system of checks and balances. And perhaps a few statesmen willing to keep those institutions, checks and balances in place — occasionally turning their backs on their own political tribe.

The question we face is pretty obvious: will those institutions and norms hold?

The answer, unfortunately, is less obvious.

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