Self-Interest Properly Understood–and Taxes

Since at least the late 1980s, policy disputes in the United States have largely revolved around the actual and perceived deficiencies of government. It has been an article of faith among self-styled fiscal conservatives that wasteful state and federal governments are imposing excessive and unnecessary tax burdens on the American public.

Engaging in this line of argumentation is particularly  appealing to candidates for public office, since it plays to widespread resentment of the obligation to pay taxes while avoiding the pesky need to identify specific instances of the “fraud and waste” that are widely supposed to exist.

There are certainly situations where tax dollars are misspent. Most of those situations involve poor management practices, since voters tend to base their support for political candidates on ideology rather than perceived managerial competence. But more often than not, assertions of “waste” are based upon disagreement with something that government is doing–a belief that services being provided or programs being supported are unnecessary (especially when such services or programs are primarily seen to benefit others).

What government should do, and how it should fund what it does, are persistent and entirely legitimate issues. The problem is, too many of us have imbibed the Kool-aid; we want the services, we want to live in thriving communities with a good quality of life, but we don’t want to pay for the services and amenities necessary to produce that quality of life.

Worse, we frequently don’t recognize the ways in which we benefit even from government programs and services we don’t personally use. A couple of examples:

When voters are asked to support bond issues or tax increases for public education, people who do not have children in the system (usually a majority of those voting) often oppose the measures, because they see no personal benefit, no immediate “return on investment.” What they fail to recognize is that the quality of local public education systems affects their property values, enhances (or diminishes) job creation efforts, and makes their communities safer and more attractive. In the long run, good schools are in their personal self-interest.

Similar metrics apply to taxes for public transportation. Even people who will never use transit benefit personally from public transportation systems that reduce congestion, improve air quality, connect low-income workers to their places of employment, and improve mobility for the elderly and disabled.

Even people who care only about minimizing their personal tax burden will ultimately benefit, because long-term, the ability to hold down tax rates  (especially here in Indiana, where constitutionally-imposed tax caps severely restrict municipal governments’ revenue options) will depend upon a city’s ability to grow its tax base–its ability to entice people to move in, buy homes and start businesses. Cities that successfully market themselves do so based upon quality of life measures–good schools, well-maintained parks, excellent public transportation.

Often, sound investments take time to generate returns. That’s particularly true of investments in our communities.

Sometimes, “self-interest properly understood” (as De Tocqueville noted many years ago) is the opposite of immediate gratification. That doesn’t mean the investments aren’t necessary and worthwhile.

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What To Do, What To Do…

I’ve told this story before, but it bears repeating.

I teach my law and public policy classes through a constitutional “lens,” because I am convinced that students must understand America’s fundamental legal framework and philosophy if they are to approach policy proposals with the necessary analytic tools.

I often introduce the Free Speech provisions of the First Amendment with a purposely silly question: “What did James Madison think about porn on the Internet?” Usually, the student I’ve asked will laugh and respond that Madison never encountered the Internet; that then allows us to discuss the expressive values Madison and other Founders were trying to protect, and the ways in which modern courts attempt to protect those values in a world that the Founders could never have envisioned.

But several years ago, when I asked a student that question, she looked at me blankly and said “Who’s James Madison?”

That experience–unfortunately, not an outlier–led to the establishment of the Center for Civic Literacy at IUPUI, (CCL) and research to determine how much Americans really know–or don’t– about the country’s history, economy and legal system, and the political and social consequences of low levels of civic knowledge.

If anyone doubts the corrosive effect of civic ignorance, I suggest watching this year’s political campaigns.

There is clearly little we can do that would immediately improve the abysmal state of public discourse as it is practiced today, but in addition to research into the causes and consequences of civic ignorance, CCL has been working with the League of Women Voters and the Indiana Bar Foundation, among others, to produce materials that we hope will help address the issue going forward.

The Center and the Bar Foundation have published a book called “Giving Civics a Sporting Chance.” The book points to the pervasive social and cultural supports that reward knowledge of sporting events and trivia, and makes the argument that we need to institute similar mechanisms that would reward and increase civic knowledge.

Young Americans who can tell you who threw out the winning pitch in the 1939 World Series are capable of answering equally obscure questions about the Articles of Confederation, but American culture privileges sports knowledge over civic literacy. The book suggests a number of mechanisms for bringing civics “into the sunlight”–from relatively “do-able” measures like increasing participation in the excellent “We the People” curriculum and competition, to “wouldn’t it be wonderful” suggestions for a new GI Bill that would reduce student debt while increasing civic information and engagement.

Information about the book’s availability will be posted to the Center’s website shortly.

Another publication–originally an ebook, but just this month available in paperback--is a mere 36 pages of essential civic information. Titled Talking Politics? What You Need to Know Before Opening Your Mouth, it includes “What everyone should know about the Constitution and American legal system,” “What everyone should know about the American economic system,” “What everyone should know about science,” and “What everyone should know about politics.”

Obviously, all of those subjects cannot be comprehensively covered in 36 pages, but the book provides basic facts and settled definitions that can allow people to argue for their policy preferences more productively and convincingly.

I encourage readers of this blog to examine these two products, and if you find them useful–and I think you will–disseminate them broadly. Discuss the recommendations in “Giving Civics a Sporting Chance”with school curriculum officials. Read Talking Politics in your book club. Whatever.

I think thoughtful Americans of every party and political philosophy will agree that–whatever else America’s current election campaign may signify–the nomination of Donald Trump by a major party could only occur in a country where significant numbers of citizens have no understanding of the way their nation’s government works, or the rules that constrain elected officials.

That nomination should be a wake-up call.

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Deplorable

Pundits on the left and right have been clutching their pearls over Hillary Clinton’s remark that roughly half of Trump’s supporters belong in a “basket of deplorables.”

Supporters worry about the political fallout ( given the media’s tendency to hold Clinton to a far higher standard than Trump, from whom they expect outrageous insults), while Clinton opponents claim to be “shocked, shocked” at the political incorrectness of it all. (Ignore those pictures of Trump supporters wearing tee-shirts saying things like “Trump the bitch” and  the videos from his rallies where supporters liberally used the “n word.” Ignore, too, the calls to “jail her” at the Republican convention. Unlike those appealing political messages, calling any voters “deplorable” is simply unforgivable.)

“Politically correct” or not, the statement was objectively inarguable. (Perhaps the percentage was off; I personally would have placed it above 50%.) A few “factoids”

Much like Trump’s alleged opposition to the Iraq War, this not an impossible claim to investigate. We know, for instance, some nearly 60 percent of Trump’s supporters hold “unfavorable views” of Islam, and 76 percent support a ban on Muslims entering the United States. We know that some 40 percent of Trump’s supporters believe blacks are more violent, more criminal, lazier, and ruder than whites. Two-thirds of Trump’s supporters believe the first black president in this country’s history is not American. These claim are not ancillary to Donald Trump’s candidacy, they are a driving force behind it.

Then there was the survey that found twenty percent of Trump supporters agreeing with the statement that Lincoln was wrong to have freed the slaves.

And there was this screenshot of Trump voters in the South Carolina primary…

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There are academic studies finding that Trump’s support is “driven by racial anxiety.” As well as several reports confirming that Trump voters disproportionately dislike minorities of any variety.

And then there are his fans in the Klan and assorted hate groups, and the White Supremacists who claim he is channeling their message….

Even if a given Trump voter isn’t actively or overtly invested in these attitudes, Charles Blow’s observation in the New York Times is on point:

Donald Trump is a deplorable candidate — to put it charitably — and anyone who helps him advance his racial, religious and ethnic bigotry is part of that bigotry. Period. Anyone who elevates a sexist is part of that sexism. The same goes for xenophobia. You can’t conveniently separate yourself from the detestable part of him because you sense in him the promise of cultural or economic advantage. That hair cannot be split.

As I have previously blogged, I’m hard-pressed to identify any Trump supporters who don’t belong in the “deplorables” basket…
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Media Matters

If there is one observation about American politics that everyone agrees on–whether they are left, right or center–  it’s that the electorate is deeply polarized.

There are a number of theories about why political actors are unable to agree on even the most pedestrian and formerly uncontroversial issues. A recent study suggests that our fragmented media environment has a lot to do with it.

In “Income Inequality, Media Fragmentation, and Increased Political Polarization,” published in Contemporary Economic Policy, August 2016, two economists at the Federal Reserve Bank of Dallas looked for evidence that media fragmentation plays a bigger role in polarization than income inequality. They looked at variables across six decades: indexes of polarization in the U.S. House and in the Senate, family income data from the Census Bureau and the percentage of Americans with cable or satellite television. The data confirmed that polarization has increased rapidly since the 1980s, but did not point to a cause.

Two of their findings:

  • The growing plurality of news sources as well as the increasing access to cable television made the greatest contribution to political polarization. Two phenomena, or a combination of the two, are responsible: Individuals seek out “self-reinforcing viewpoints rather than be exposed to a common ‘nightly news’ broadcast” — this is sometimes called siloing. Also, individuals are jettisoning news programming for entertainment, “thereby reducing incidental or by-product learning about politics.”
  • The decreasing exposure to alternative views and the increasing buttressing of one’s own views has combined to create less sympathy for others’ views and less of an ability to understand others’ views. “This may be reinforced by a tendency for political differences to be decreasingly addressed through genuine debate and increasingly replaced with media coverage of political vilification or grandstanding.”

Other research has reached similar conclusions.The Pew Research Center published an extensive investigation into political polarization and media habits in 2014, including five key takeaways. In 2016, Pew also looked at ideological gaps between people with different education backgrounds.

As the Journalists’ Resource notes,

Harvard University Professor Thomas Patterson’s book, Informing the News: The Need for Knowledge-Based Journalism (Vintage 2013), describes, among other things, how in 1987 the Federal Communications Commission (FCC) rescinded the Fairness Doctrine, giving rise to extremely slanted radio and then cable news talk shows. The Fairness Doctrine, Patterson writes, “had discouraged the airing of partisan talk shows by requiring stations that did so to offer a balanced lineup of liberal and conservative programs. Once the requirement was eliminated, hundreds of stations launched talk shows of their choosing, the most successful of which had a conservative slant.”

People who consume sharply partisan news coverage are less likely to believe the truth even when they are presented with clear evidence they are wrong, according to research published in 2016 in the Journal of Computer-Mediated Communication and flagged by the Poynter Institute.

When America is going through a particularly nasty period, it’s often comforting to remind ourselves that “we’ve been here before.” (Think civil war, the 60s, etc.) But we haven’t had social media and the internet during previous rough patches. We haven’t been able to choose our realities, insulate ourselves in our preferred “bubbles” and shut out inconvenient facts.

I hope I’m wrong, but I think that makes a big difference….

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One Mystery (Possibly) Solved…

None of the theories to date about the reason for Trump’s refusal to release his tax returns have seemed very persuasive, but when I read this reporting by the Washington Post’s David Fahrenthold, I had an “ah ha” moment. 

Apparently, “deadbeat Don” has reported–and presumably deducted– charitable gifts that he didn’t actually make. Multiple charities are telling Fahrenthold that they never received donations that the Trump Foundation listed and claimed on IRS submissions.

One can see how the disclosure of tax returns reporting non-existent donations might be…embarrassing.

Of course, even if the existence of improper deductions does solve one mystery– the reason for Trump’s refusal to share his tax returns–it leaves us with a number of others. Why, for instance, would a man who clearly has no interest in public policy or administration run for public office? Why would a candidate who is totally ignorant of the basics of constitutional government refuse to inform himself about those basics? Why would someone who has never run in a political campaign ignore all advice from people who understand what such campaigns require?

The answers to those and similar questions are probably only obtainable on a psychiatrist’s couch. And ultimately, unless he wins (which, thankfully, is unlikely) the idiosycrasies of a self-obsessed megalomaniac will ultimately be matters of only passing interest.

The more pressing question–the question that keeps me up nights and consumes reasonable Americans, Republicans and Democrats alike–is why would anyone vote for this man?

In any sane universe, Donald Trump is a joke: a tacky, ignorant narcissist who communicates at a third-grade level, lies compulsively (and not very convincingly) and thinks childish insults and ad hominem attacks are debate points.

The reason for some portion of his support is abundantly clear. (Despite walking her comments back, Clinton quite accurately described these voters as belonging in a “basket of deplorables.”) White supremacists, anti-Semites, racists, sexists and xenophobes see him–probably accurately– as one of them. But other people, who don’t appear to fall into those categories and who don’t appear to belong in the basket, also tell pollsters they support him.

I assume some number of die-hard Republicans will vote for the party’s candidate no matter what–although Trump has made it clear that he has no respect for longstanding Republican positions (assuming he even knows what those are). And I suppose there must be some people who are so horrified at the prospect of a woman in the Oval Office that they will opt for any male, no matter how unfit and/or dangerous. But beyond those (hopefully small) categories, I am hard-pressed to understand why any voter would see this repulsive ignoramus as remotely Presidential.

I know I’ll hear from readers who hate Hillary and who will claim that Trump is no worse; however, even they know that is manifest nonsense. Even if you believed every accusation that has been thrown at her (despite the innumerable investigations that have come up empty), there is still no equivalence. Besides, large numbers of critics who detest her have publicly confirmed that they won’t vote for Trump. They’ll vote for third-party candidates or leave the Presidential line blank. Depending on the state the voter lives in, those actions do help Trump, but they aren’t the same as affirmatively supporting him.

I want to know about the people who actually plan to cast a vote for him. Who are they? What am I missing?

Why would anyone who isn’t a White Nationalist vote for an unstable, demonstrably unfit blowhard whose election would quite obviously pose a clear and present danger to the nation and the planet?

Inquiring minds really want to know.

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