Roads, Taxes and Rationality

There’s no shortage of news being made and problems to be addressed, but the world seems a bit quite these days. Maybe the president has something to do with it:

Biden’s words . . . have been counted along with his on-camera appearances and total one-third of those notched up by the previous president at the equivalent stage (The Guardian).

It clearly helps that there are rational people in charge of the federal government for a change, “rational” in the sense that they’re trying to fix problems instead of ignoring them or making them worse. 

An excellent example is the problem of America’s “crumbling infrastructure”. The two words, “crumbling” and “infrastructure”, have been tied together for decades, like “manicured lawns”, “well-heeled lobbyists”, “potent symbols” and “hot topics”. Everybody agrees the country’s roads, bridges, dams, school buildings, electrical grid, etc. need work and it will cost a lot of money to modernize them. I just typed in “infrastructure” and got:

The cost to fix America’s crumbling infrastructure? Nearly $2.6 trillion, engineers say (CNN).

So it isn’t a surprise that Biden is announcing a big infrastructure plan tomorrow (unlike his predecessor, the orange guy, who kept promising a tremendous infrastructure plan to go along with his miraculous health insurance plan, neither of which ever materialized.)

Nor is it a surprise that Republicans won’t want to pay for it. From the Washington Post’s “Plum Line” blog:

New details are emerging about the massive infrastructure plan that Democrats will present this week, and it poses a problem for Republicans. This is exactly kind of government spending voters from both parties support — every member of Congress would happily have a new bridge in their district.

But if it passes, it will be another victory for President Biden. So Republicans have to find a way to convince voters it’s a terrible idea, which they’ll attempt through a series of misleading arguments.

Here’s the latest on the package, from The Post:

Biden’s plan will include approximately $650 billion to rebuild the United States’ infrastructure, such as its roads, bridges, highways and ports, the people said. The plan will also include in the range of $400 billion toward care for the elderly and the disabled, $300 billion for housing infrastructure and $300 billion to revive U.S. manufacturing. It will also include hundreds of billions of dollars to bolster the nation’s electric grid, enact nationwide high-speed broadband and revamp the nation’s water systems to ensure clean drinking water, among other major investments, the people said.

Those all seem like worthy goals. So how will Republicans argue against them?

One way will revolve around fearmongering about deficits and tax hikes. Another will seek to cherry-pick from the package to portray it as stuffed with wasteful boondoggles.

On the first, Biden is expected to ask congressional Democrats to roll back parts of his predecessor’s tax cuts for the wealthy and corporations, and to increase taxes on profits that corporations shelter offshore.

And Senate Minority Leader Mitch McConnell (R-Ky.) is already balking. “If you want to do an infrastructure bill, let’s do an infrastructure bill,” is McConnell’s latest line. “Let’s don’t turn it into a massive effort to raise taxes on businesses and individuals” [i.e. corporations and rich people].

The Republican game runs as follows. They say they support infrastructure repair in principle (which is true of some). But, they add, they don’t support paying for it either by driving up the deficit or with tax hikes that will kill jobs (as McConnell suggested).

Never mind that Republicans exploded the deficit with the very tax cuts for the rich and corporations that Democrats want to partly reverse, or that Republicans are pretending doing this would raise taxes on workers, or that the claim that tax hikes kill jobs has been perpetually proven wrong. . . .

Meanwhile, you will surely hear the name “Solyndra” bandied about, in reference to what happened the last time a Democratic administration boosted green energy infrastructure (an even bigger component of Biden’s plan).

Republicans are already making the case that last time millions in taxpayer dollars were squandered on green energy jobs that never materialized. They are road-testing a new slogan about what’s coming: “Solyndra Syndrome.”

But that actually points to how Democrats should respond to this attack. Because the truth is very different from what Republicans would have you believe.

Solyndra was indeed a failure: As part of a federal program to support promising companies, the Obama administration gave a $535 million loan to the firm. But their solar panel technology struggled to compete against low-cost panels from China, and the company eventually went bankrupt.

But the whole point of the loan program was to take risks, in the knowledge that some of them wouldn’t work out. And other loans paid off spectacularly well.

You may have heard of another up-and-coming green tech company that got a $465 million loan at around the same time, enabling it to start making passenger cars. It’s called Tesla. It paid back its loan with interest, and today has more than 70,000 employees.

Republicans spent years trying to turn the Solyndra failure into a scandal. What they didn’t mention is that despite the loss the government took on it, the program that funded that loan quickly turned a profit, eventually earning billions.

So that part of the Obama Recovery Act was a success, even though Republicans convinced many people it was a failure. The reality tells the opposite story, and Democrats should say so.

Beyond all that, . . . Democrats have a good way to call the Republicans’ bluff: Renew the push for a boost in funding for the Internal Revenue Service, so it can start hauling in the huge piles of revenue that will likely to go uncollected in coming years — much from the wealthy and corporations.

Tax experts say that due to IRS budget cuts and resulting lax enforcement, as much as $7.5 trillion in revenue could go uncollected over the next decade, a good deal of it from wealthy actors who are well resourced to evade payments. They also say netting even a fraction of that could bring in gobs of new revenue.

Sen. Ron Wyden (D-Ore.), the chairman of the Finance Committee, says Democrats should renew this push, tied to the debate over infrastructure, by arguing for more funding for IRS enforcement, and for reforms improving its efficacy:

The absolute bare minimum Republicans should get behind is ensuring the IRS has resources and trained staff to collect taxes that are currently owed. They won’t have any credibility if their position is that not only can there be no new revenue, but we also can’t do significantly more to collect revenue that’s owed.

Unquote.

Republicans won’t have any credibility? That’s never bothered them before.

Today’s Screwed Up America Roundup, With a Glimmer of Hope at the End

New York Magazine says they’re going to provide a weekly inventory of T—p’s “affronts to liberal democracy”. Their first batch includes nine items, the worst of which was his announcement that he’s appointing: an anti-semitic propagandist as his chief strategist; a Southerner so racist that Republicans (!) refused to make him a Federal judge as Attorney General; and a dangerous nut job who was fired from his last government job as his National Security Advisor.

But what did we expect? The heads of organized crime families value loyalty above all else, and these three individuals were among T—p’s most fervid supporters. On the other hand, the Tea Party Congressman he wants as Director of the Central Intelligence Agency wasn’t initially a T—p supporter. He does, however, want to cancel the Iran nuclear arms deal and bring back waterboarding.

Next, two articles from The Washington Post. Ronald Klain, who was Chief of Staff for Vice Presidents Gore and Biden, warns that T—p’s so-called “infrastructure” plan is a trap. It isn’t a plan to fix what’s known as our “crumbling” infrastructure or create lots of jobs. It’s a way to raid the Treasury on behalf of selected investors. There will be no requirement that any particular work will be done or any jobs will be created. Nevertheless, the recipients of the tax breaks will be guaranteed a profit.

Again, what would we expect from a shady real estate developer whose fortune heavily relied on a billion dollars in tax breaks from New York City?

To understand how T—p plans to profit from being President, read “Welcome to the T—p Kleptocracy”. The T—p family business will keep going but with inside information and influence peddling as profit enhancers:

The irony is that so many of Trump’s supporters believed his preposterous claim that he would be the one to banish corruption from Washington, that he’d “drain the swamp” and send that crooked establishment packing. He’ll do nothing of the sort, of course; his transition team is drowning in corporate lobbyists, and among his first priorities are cutting taxes for the wealthy and removing oversight from Wall Street… what’s different and probably unprecedented is the way Trump will increase his fortune by hundreds of millions or even billions of dollars while he’s president.

Finally, there’s an article at the Time magazine site called “The Electoral College Was Created to Stop Demagogues Like Trump”. Actually, one of the reasons the Electoral College was created was to protect the institution of slavery in the South. But protecting us from demagogues and the obviously unfit was another big part of its appeal. Today, the Electoral College serves two purposes:

One of them is to give small states power as well as big states and the cities. The other is to provide a mechanism where intelligent, thoughtful and statesmanlike leaders could deliberate on the winner of the popular vote and, if necessary, choose another candidate who would not put Constitutional values and practices at risk.

The Electoral College was designed to avoid Presidents “with talents for low intrigue” and to interfere with “the desire in foreign powers [you know, like Russia!] to gain an improper ascendant in our councils”!

Can you therefore imagine Alexander Hamilton jumping up and down somewhere in the great beyond, desperately trying to get our attention? “See, see, this brightly-colored personage of low character and little understanding is precisely the type who must never become President of our fair nation. We gave you the Electoral College, fools! Now employ it!”

(And after that glimmer of hope: Will the con man break one of his biggest campaign promises and allow the Republicans to privatize Medicare and Social Security? I mean, Jesus H. Christ!)

Some Progress, But We Could Be Doing Much More

Jonathan Chait of New York Magazine sums up the continuing success of the Affordable Care Act here :

The Commonwealth Fund has a new survey showing that the proportion of adults lacking health insurance has fallen by a quarter, from 20 percent of the population to 15 percent. (Most respondents, including 74 percent of newly-insured Republicans, report liking their plan.) Also, this week, the Congressional Budget Office again revised down its cost estimates for Medicare, which now spends $50 billion a year less than it was projected to before Obamacare passed. Also, the New England Journal of Medicine recently estimated that 20 million Americans gained insurance under the new law.

Just think what we’d be able to do in this country if the Republicans were reasonable or if there were fewer of them in office. We could have boosted the economy, for example, by investing in our infrastructure during this terrible recession instead of going crazy about the deficit. Below is a chart from Paul Krugman’s blog showing the “Great Disinvestment”, how public spending on construction has dropped in the past four years when it should have increased:

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