Tag Archives: GOP

It Isn’t Just Tax Rates

A new study has found that at least 55 of America’s largest companies paid zero taxes last year, despite making billions of dollars in profits. It’s infuriating.

As the New York Times reports, that 2017 tax bill eagerly passed by Republicans in Congress and signed with great fanfare by the former guy, reduced the corporate tax rate to 21 percent from 35 percent. On top of that gift,

dozens of Fortune 500 companies were able to further shrink their tax bill — sometimes to zero — thanks to a range of legal deductions and exemptions that have become staples of the tax code, according to the analysis…

Twenty-six of the companies listed, including FedEx, Duke Energy and Nike, were able to avoid paying any federal income tax for the last three years even though they reported a combined income of $77 billion. Many also received millions of dollars in tax rebates.

As Bernie Sanders has reportedly noted, if you paid 135 for a pair of Nike shoes, you paid more for them than Nike paid in taxes.

The Times article has a list of the most profitable companies that paid no taxes last year.

Publicly traded corporations have to file financial reports, and those reports include the amounts they’ve paid in federal income taxes. When challenged about their ability to avoid paying taxes, most respond that they “fully comply” with the laws. Which is undoubtedly true. (Okay, maybe not for those with accounts in offshore tax havens…Although that tactic is more common among filthy rich individuals than corporations…)

It’s relatively simply to “fully comply” with tax provisions (aka “loopholes”) that are  intended to encourage socially useful behaviors like investing in clean energy or modernizing aging equipment.

The $2.2 trillion CARES Act, passed last year to help businesses and families survive the economic devastation wrought by the pandemic, included a provision that temporarily allowed businesses to use losses in 2020 to offset profits earned in previous years, according to the institute.

Several of these deductions and credits are justifiable. Others, much less so.

I agree with Elizabeth Warren, who has been quoted as saying that giant corporations with billions of dollars of profit shouldn’t be able to pay $0 in federal taxes. According to the Times, today’s tax avoidance strategies include a mix of old standards and what the report calls “new innovations”. It’s hard to argue, for example, for the social benefit of allowing companies to save billions of dollars by characterizing the purchase of discounted stock options by their top executives as a loss, which they then deduct.

The Biden administration announced this week that it planned to increase the corporate tax rate to 28 percent, and establish a kind of minimum tax that would limit the number of zero-payers. The White House estimated that the revisions would raise $2 trillion over 15 years, which will be used to fund the president’s ambitious infrastructure plan.

Supporters say that in addition to yielding revenue, the rewrite would help make the tax code more equitable, requiring individuals and companies at the top of the income ladder to pay more. But Republicans have signaled that the tax increases in the Biden proposal — which Senator Mitch McConnell of Kentucky, the minority leader, called “massive” — will preclude bipartisan support.

Individual taxpayers have long had to contend with the Alternative Minimum Tax. That provision was created in the 1960s, with the goal of preventing high-income taxpayers from using various deductions and credits to avoid the individual income tax. There’s no reason why a similar mechanism shouldn’t apply to corporate giants using provisions of the tax code to avoid paying any taxes on massive profits.

Meanwhile, It would be illuminating if a Congressional committee were to examine the credits and deductions allowed by the current tax code, and eliminate those that no longer make much sense. (Some never did.)

If nothing else, it would be interesting to see how the Republican supporters of these provisions would defend them.

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An Intriguing Analysis

Paul Krugman recently had a column that–almost incidentally–amplified the findings I reported on yesterday from Democracy Corp’s focus groups.

He began by noting that Biden simply doesn’t arouse the same degree of animosity that Obama did. Krugman leaves it there, but the reason for the moderation of vituperation is pretty obvious: Biden’s a White guy. Yes, he’s a hated Democrat/Socialist/Leftie/Whatever, but at least he’s not Black.

Krugman focused on the lower level of animus and hostility aimed at Biden by Republicans, and speculated over what that “low energy” opposition might mean for the prospects of upcoming legislative proposals.

Just about every analyst I follow asserted, almost until the last moment, that $1.9 trillion was an opening bid for the rescue plan and that the eventual bill would be substantially smaller. Instead, Democrats — who, by standard media convention, are always supposed to be in “disarray” — held together and did virtually everything they had promised. How did that happen?

Much of the post-stimulus commentary emphasizes the lessons Democrats learned from the Obama years, when softening policies in an attempt to win bipartisan support achieved nothing but a weaker-than-needed economic recovery. But my sense is that this is only part of the story. There has also been a change on the other side of the aisle: namely, Republicans have lost their knack for demonizing progressive policies.

Krugman is careful to note that the decrease in demonization applies to policies (after all, lots of Republicans still believe that Democrats managed to steal a federal election at the same time they were sexually exploiting and then feasting on small children…) But as he notes, there’s been an absence of “bloodcurdling warnings about runaway inflation and currency debasement, not to mention death panels.”

True, every once in a while some G.O.P. legislator mumbles one of the usual catchphrases — “job-killing left-wing policies,” “budget-busting,” “socialism.” But there has been no concerted effort to get the message out. In fact, the partisan policy critique has been so muted that almost a third of the Republican rank and file believe that the party supports the plan, even though it didn’t receive a single Republican vote in Congress.

Krugman notes a number of possible explanations: the obvious hypocrisy of screaming about deficits under Obama and then incurring huge ones via tax cuts for the rich; the fact that none of their past, dire warnings of inflation under Obama–or their rosy predictions of a boom under Trump–materialized (although, as he points out ” inconvenient facts haven’t bothered them much in the past.”)

Or perhaps Republicans no longer know how to govern. They are trapped in a culture war of their own creation. As Krugman notes, while the Democrats were fashioning legislation and hammering out policy compromises, Republicans were screaming about Dr. Seuss and Mr. Potato Head.

In short, the prospects for a big spend-and-tax bill are quite good, because Democrats know what they want to achieve and are willing to put in the work to make it happen — while Republicans don’t and aren’t.

I have been extremely happy with what the Biden Administration has done–and failed to do–thus far. This is a highly competent operation. What is undoubtedly true, however, is that one reason the path has been smoother for Joe Biden is simply because his skin is white.

And that is an incredibly sad commentary on the current state of America.

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Those Trump Loyalists

One problem with political discourse these days is the participation of many truly nice people in those discussions. They are horrified by those of us who characterize today’s GOP as a racist mob. They (quite properly) note that such characterizations are far too broad-brush, and they insist that a continued effort to engage Republicans in civil conversation will often yield results.

Unfortunately, they are far too kind.

I will grant that stereotyping entire groups of people is both dangerous and inaccurate, but I also recall Maya Angelou’s advice to believe people when they show you who they are. So I was intrigued by a report from Talking Points Memo on a series of focus groups with Trump loyalists.(Note, this is a “members only” article that may not be readable if you aren’t a “member.” A link to the study itself is here.)

Democracy Corps conducted a series of focus groups with Trump supporters and various other GOP conservatives. They evidently had considerable difficulty recruiting volunteers– it took a long time to recruit people to constitute representative groups because, as a Democracy Corp representative noted, Trump voters seemed particularly distrustful of outsiders.

Once they were in a Zoom room with all Trump voters, however, they apparently let it all hang out. Here are the “takeaways.”

The Trump loyalists and Trump-aligned were angry, but also despondent, feeling powerless and uncertain they will become more involved in politics;

Trump’s base saw Biden, as a white man, as not threatening, controlled by others, unlike Obama who represented everything Tea Party-Republicans were determined to fight;

Even Trump’s base is curious about the extent to which they benefit from the American Rescue Plan (ARP) and Biden’s signature program, compared to Obamacare that they viewed as a new entitlement for Blacks and immigrants that must be stopped;

The Trump loyalists and the Trump aligned are animated about government taking away their freedom and a cancel culture that leaves no place for white Americans and the fear they’re losing “their” country to non-whites;

They were angered most of all by Black Lives Matter (BLM) and Antifa that were responsible for a full year of violence in Democratic cities that put white people on the defensive – and was ignored by the media;

The Trump loyalists and those who are aligned rooted for the anti-lockdown protestors in Michigan and saw the violence and disruption of the legislature as justified. Some pulled back when the guns threatened innocent civilians, and more when their methods seemed to be losing support for the Trump movement;

A handful of the Trump loyalists supported the January 6th insurrectionists, but most quickly concluded it was really Antifa or an inside job to make Trump supporters look bad. They normalized the insurrection, suggesting it was no different than the violence carried out by BLM and Antifa;

They worry now that it is the government that has taken the initiative on the use of force, increasing their sense of powerlessness;

It is difficult, if not impossible, to look at these findings and not see how deeply racism motivates support for Trump and his GOP. Nice people don’t want to recognize the extent to which White Nationalism affects and distorts American political life–and the extent to which bigotry and racial grievance has assumed control of one of the country’s major political parties.

I don’t want to admit it either–but some 74 million people voted for that President and that party. I don’t know how we combat hatred, but I do know that we can’t address a problem we refuse to see.

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Stop The World…But Then What?

Every once in a while, I come across an article or column which doesn’t convey anything particularly new or earth-shattering, but that sets out conventional wisdom in a way that makes a light-bulb come on. I had that “aha” experience when I read an opinion piece in the New York Times titled “Trumpism Has No Heirs.

The author, Jane Coaston, pointed out that–at least for the next two years–the Republican Party is ideally positioned.

As the opposition party, it will not be expected to offer solutions to the country’s myriad problems, much less introduce substantive legislation. It will not be expected to do anything except what it does best — oppose the Democratic administration and the Democratic Party.

Coaston’s observation isn’t new, of course–anyone who can spell “Mitch McConnell” or  has followed national politics even superficially over the past few years will agree that “even when holding power, movement conservatism is fundamentally an opposition movement.”

However, Coaston suggests that this “spirit of opposition” is the GOP’s Achilles’ heel –a weakness that will doom Republican efforts to “move on” from Donald Trump. Over the past few years, “conservatism” has become an empty label; as she notes, although many people  call themselves conservatives, they mostly agree about what conservatism isn’t. There is no consensus on what conservatism in the 21st Century is. And she says that Donald Trump’s candidacy and presidency exploited conservatism’s glaring lack of a central motivating vision.

The conservatism that was seemingly agreed upon by the Heritage Foundation and the American Enterprise Institute and National Review was not the conservatism that Mr. Trump sold to the American people.

Mitt Romney campaigned in 2012 on being “severely conservative” and lost. Mr. Trump campaigned on a self-serving redefinition of what it even means to be conservative and won. After all, as Mr. Trump told ABC News in early 2016, “this is called the Republican Party, it’s not called the Conservative Party.”

But what Mr. Trump was for, and what his voters supported, was not the populist nationalism generally associated with “Trumpism.” Populist nationalism has a long history in this country. Paleoconservatives like Pat Buchanan, the former Nixon assistant and political commentator, have espoused a blend of America First isolationist foreign policy rhetoric and distrust of perceived culture and political “elites” for decades.

Pundits who see Trumpism as a form of populist nationalism miss the fact that such nationalism doesn’t depend on any one individual. Trumpism does, which is why no one will pick up the “mantle.” There is no mantle, no program or philosophy of governance. Trumpism is simply the “middle finger to perceived enemies and the bulwark against real or imagined progressive assault.”

The central motivating impulse of today’s GOP is grievance and an overwhelming desire to “own the libs.” What Coaston has identified–and what I previously failed to focus on–is the essential weakness of using opposition as an organizing principle over time.

In the short term, of course,  being against something or someone generates energy and turnout. (A significant portion of the 81 million Americans who voted for Joe Biden would have voted for Daffy Duck if Daffy was running against Trump.) But for the longer term, it’s not enough.

At some point, being against everything–having no programs, no coherent political philosophy, no vision–will fail to energize enough voters to keep a party in power. That recognition is behind the formidable assault the GOP is currently mounting against voting rights.

The question is: when does disillusionment kick in? Until 2022, being against everything the Democrats want to accomplish is likely to be seen by the Republican base as a valiant effort to stop the modernity and social change that so deeply threatens them. Only if they are successful in retaking the House or Senate (or both) will citizens recognize that they have nothing positive to offer.

And by then, it might be too late.

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They Aren’t Even Pretending Anymore

Over the past few years, I have become increasingly convinced that a variety of seemingly unrelated political attitudes and allegiances can only be explained by a deep-seated underlying racism. That conclusion doesn’t require us to disregard the complexities that dictate individual world-views and predict their saliency; I don’t mean to imply that individual circumstances are irrelevant–but the racist element is inescapable. History teaches us that previously suppressed bigotries  emerge and find expression when people are insecure,  financially or otherwise.

We are seeing that emergence play out in today’s Republican Party.

In the 1970s and 80s, when I was active in the GOP, I encountered people who expressed racist , anti-Semitic and homophobic opinions, but they were a distinct minority. If others with whom I worked shared those prejudices, they kept them to themselves; furthermore,  a significant number of  Republicans–including then-mayor Bill Hudnut– were vocal proponents of inclusion and anti-discrimination policies.

Maybe acceptance of diversity was easier at the time because most Americans didn’t anticipate the demographic changes that are now seen to threaten continued White Christian dominance–or maybe the current crop of GOP “leaders” is genuinely representative of the Republicans who remain after the “good guys” have mostly headed for the party exits.

Whatever the reason, those who are left in the GOP no longer feel the need to be coy about their White Nationalist beliefs. The recent CPAC meeting was held on a stage modeled on a recognizable Nazi symbol, and ABC’s recent report on the CPAC meeting was titled, “GOP congressman headlines conference where organizers push White Nationalist rhetoric.”

GOP Rep. Paul Gosar of Arizona was the surprise keynote speaker at a conference Friday night in Orlando, Florida, where speakers spread white nationalist rhetoric, organizers railed about the U.S. losing its “white demographic core,” and some called for further engagement like the ire that drove the Capitol attack on Jan. 6.

Gosar wasn’t the only “usual suspect” who appeared at the meeting. Others included former Iowa Representative Steve King, whose most notable “achievement” in the House was a long history of explicitly racist comments, and the equally offensive conservative commentator Michelle Malkin.

Gosar’s keynote was followed by a speech by a man named Nick Fuentes, identified as  founder of the America First PAC, who filled his talk with white grievance and anti-immigration rants. He is quoted as telling the crowd that “If [America] loses its white demographic core … then this is not America anymore.”

Fuentes went on to praise the Capitol attack, boasting about it leading to a delay in the certification of the election results.

“While I was there in D.C., outside of the building, and I saw hundreds of thousands of patriots surrounding the U.S. Capitol building and I saw the police retreating . I said to myself: ‘This is awesome,'” Fuentes said to the applause of the crowd….

“To see that Capitol under siege, to see the people of this country rise up and mobilize to D.C. with the pitchforks and the torches — we need a little bit more of that energy in the future,” he said.

The most terrifying part of that description is the sentence recording “the applause of the crowd.” The attendees applauded the perpetrators of the treasonous January 6th insurrection that left five people dead and did thirty million dollars of damage to the nation’s capitol.

The entire event revolved around fidelity to Donald Trump and acceptance of his Big Lie–from the “Golden Calf” Trump statue (which was reportedly made in Mexico…), to Trump’s willingness to make his first post-Presidency appearance at a meeting of far-right, proudly racist extremists.

I find admiration–let alone fidelity–to Donald Trump incomprehensible–but then I consider the effect of tribalism and political polarization. I still remember my long-ago discussion with a party “regular” about a Republican candidate that we all knew to be incompetent and probably corrupt. He didn’t disagree with my evaluation, but he smiled. “He may be a son-of-a-bitch,” he said, “but he’s our son-of-a-bitch.”

Trump may be the antithesis of the “family values” these good “Christians” claim to be about, but he hates and fears the same people they do. He’s their White Nationalist.

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