Suckers!

Although Trump voters, on average, had higher incomes than Clinton voters, many of his supporters were and continue to be working class or even poor (and predominantly white, of course). He may have been rich, the epitome of a city slicker, but millions of average people (also known as “suckers”) believed that he’d fight for them.

From Ezra Klein of Vox:

Tax cuts for wealthy Americans have long been the fulcrum atop which Republican Party politics rests. But Donald Trump was supposed to be a different kind of Republican. On 60 Minutes, for instance, Trump said he would raise taxes on “the very wealthy,” and warned that the plan would cost him “a fortune” in higher taxes.

“My whole life I’ve been greedy, greedy, greedy,” Trump said in January of 2016. “I’ve grabbed all the money I could get. I’m so greedy. But now I want to be greedy for the United States.”

The whole Trump pitch was that he was a cutthroat businessman who knew the tricks, had paid off the politicians, had made his billions, and now was going to use his accumulated knowledge to unrig the system, to make it benefit you, the little guy. American politics, he said, was corrupted — by special interests, by self-dealing politicians, by weak negotiators. He was going to fix it all. And many believed him.

In Trump’s inaugural address he said, “What truly matters is not which party controls our government, but whether our government is controlled by the people. January 20, 2017, will be remembered as the day the people became the rulers of this nation again. The forgotten men and women of our country will be forgotten no longer.”

This rhetoric continued after the election: Both Trump’s Treasury secretary and the director of his National Economic Council said the plan wouldn’t cut taxes on the rich. As recently as a few weeks ago, Trump told Senate Democrats, “The deal is so bad for rich people, I had to throw in the estate tax just to give them something.”

In reality, by 2027, 62.1 percent of the tax bill’s benefits go to the top 1 percent, and 42.3 percent of the benefits go to the top 0.1 percent [while millions of lower income taxpayers will see their taxes increase].

The moral of this story is: Never trust a con man when he says he’s on your side.

(But if you insist on trusting a con man, don’t inflict him on the rest of us.)

One of Those Charts

The last time we had a big overhaul of the federal tax code was in 1986. Back then, the poorest 90 percent of the population owned 3 1/2 times as much as the richest 1/10th of 1 percent. I’ll say that again. In 1986, the net worth of the least wealthy 90% of Americans was 3.5 times the net worth of the richest 0.1%.

That’s not the America we live in today. As of 2013, the richest 1/10th of 1 percent owned as much as the poorest 90 percent. To repeat: the net worth of the richest 0.1% was the same as the net worth of the poorest 90%. 

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I’m sure the red line goes even higher now and the blue line goes lower. We should keep this astounding economic inequality in mind when we have the opportunity to vote eleven months from now. That will be eleven months after the Republicans ram through another overhaul of the tax code, one that helps the richest Americans get even richer.

The Truth Still Matters

Will be going to North Dakota today to discuss tax reform and tax cuts. We are the highest taxed nation in the world – that will change.

— Donald J. Trump (@realDonaldTrump) September 6, 2017

But the truth still matters:

oecd tax burdens

The chart includes individual and corporate taxes, as well as local taxes, as reported by the 35-nation Organisation for Economic Co-operation and Development.

For some historical perspective, consider “When the Rich Said No to Getting Richer” by from David Leonhardt of The New York Times:

A half-century ago, a top automobile executive named George Romney — yes, Mitt’s father — turned down several big annual bonuses. He did so, he told his company’s board, because he believed that no executive should make more than $225,000 a year (which translates into almost $2 million today).

He worried that “the temptations of success” could distract people from more important matters, as he said to a biographer, T. George Harris. This belief seems to have stemmed from both Romney’s Mormon faith and a culture of financial restraint that was once commonplace in this country.

Romney didn’t try to make every dollar he could, or anywhere close to it. The same was true among many of his corporate peers. In the early 1960s, the typical chief executive at a large American company made only 20 times as much as the average worker, rather than the current 271-to-1 ratio. Today, some C.E.O.s make $2 million in a single month.

The old culture of restraint had multiple causes, but one of them was the tax code. When Romney was saying no to bonuses, the top marginal tax rate was 91 percent. Even if he had accepted the bonuses, he would have kept only a sliver of them.

The high tax rates, in other words, didn’t affect only the post-tax incomes of the wealthy. The tax code also affected pretax incomes. As the economist Gabriel Zucman says, “It’s not worth it to try to earn $50 million in income when 90 cents out of an extra dollar goes to the I.R.S.”

The tax rates helped create a culture in which Americans found gargantuan incomes to be bizarre.

A few years after Romney turned down his bonuses from the American Motors Corporation, Lyndon B. Johnson signed legislation that lowered the top marginal tax rate to 70 percent. Under Ronald Reagan, it dropped to 50 percent and kept falling. Since 1987, the top rate has hovered between 30 percent and 40 percent.

For more than 30 years now, the United States has lived with a top tax rate less than half as high as in George Romney’s day. And during those same three-plus decades, the pay of affluent Americans has soared. That’s not a coincidence. Corporate executives and others now have much more reason to fight for every last dollar.

And fight they do (it’s called “class warfare”).

Meanwhile, the president* is unnecessarily threatening hundreds of thousands of young people brought to this country by their parents and another extremely dangerous hurricane is on its way. This is further evidence that Republicans are evil and global temperatures are rising, but you already knew that.

Update:  John McCain, the Republican senator who talks a good game but can’t be relied on, has changed his mind about repealing the Affordable Care Act. He now says he’d vote Yes on what is “in may ways … the most radical” repeal bill yet. Further evidence for [see above]. 

2nd Update: McCain now says he would only vote for repeal if the legislation survived committee hearings and was subject to amendments proposed by both sides. That’s not what the 81-year old senator implied earlier today. This latest announcement is good news, because the repeal legislation is extremely unlikely to pass if it’s subject to “normal order” in the Senate instead of being rushed through.