Kansas’s Trickle Down “Experiment” Is Officially a Failure

Anybody want to buy a flag?

Anybody want to buy a flag?

The thing about trickle down economics is that it doesn’t work. Period. We’ve seen this time and again.  Cutting taxes for the wealthy doesn’t result in a stronger middle class. It results in states suffering from lack of revenue, which invariably results in unnecessary burdens on the middle class. How many times do we have to see this situation play out before we stop buying the trickle down narrative?

Kansas Governor Sam Brownback has been a proponent of trickle down economics for decades now. As Bloomberg View’s Barry Ritzholtz points out, Brownback even signed Grover Norquist’s idiotic pledge to never raise taxes. (Future history books will very likely remember Norquist’s pledge as the document that prematurely ended dozens of political careers, for reasons I am about to explain.) So as governor, Brownback slashed taxes, promising that lost revenue would trickle back down to the little people his constituents in the form of a reinvigorated business environment. Guess what happened next?

+ Read More

Is the Trans-Pacific Partnership a lose-lose situation for Clinton?

According to Bill Schneider at Reuters, the TPP trade deal poses a difficult political situation for Hillary Clinton. Schneider believes that Hillary is stuck between appealing to the Democratic base (who are solidly opposed to the TPP) or appeasing the Obama administration, independent voters, and Wall Street by embracing the trade deal.

It’s not an easy decision for the Clinton camp to make. As Schneider notes,

“If Hillary Clinton comes out for fast track, it might get just enough Democratic support to pass. If she opposes fast track, it’s probably doomed. The fate of the measure very likely rests in her hands.”

That’s a lot of responsibility for someone who wants to remain coy on policy specifics this early in the campaign season. However, the TPP could offer Clinton an opportunity to flip the narrative of the anti-TPP crowd from moral outrage to economic outrage – much like how Robert Reich has been talking about the issue. Like Reich, Clinton should instead frame her opposition to the TPP on the economic shortcomings of the agreement. For example, the TPP isn’t bad because it is unfair to U.S. workers, it is bad for the U.S. because it will result in fewer American middle-class jobs which in turn will reduce consumer demand and dampen economic growth in the U.S.

Although she has yet to offer her support or opposition on the TPP, today she made clear that “any trade deal [must] produce jobs and raise wages and increase prosperity and protect our security.” Such language represents a rather banal platitude, but it is a prudent political move.

Daily Clips: April 21st, 2015

Poll: Economic optimism hits new peak under Obama
CNN – Jennifer Agiesta.

52 percent of respondents said that the economy was somewhat or very ‘good’, while 48 percent said the economy was somewhat or very poor. This is the first time in Obama’s presidency that more people describe the economy as good than poor. The economic prospects look good for a Democratic nominee in 2016 as well, with 62 percent of respondents believing that in a year’s time the economy will still be in good shape. This is a very important metric for the success of the Democratic nominee, as suggested in yesterday’s Daily Clip’s article by Jonathan Chait.
Reuters – Amanda Becker

Although she’s talking policy in broad brushstrokes, Clinton is offering hints as to where she will focus her attention. In a quote from an event yesterday, she said, “I think that what we have to do is look at the whole tax system and try to figure out what is an economic investment as opposed to one without economic purpose.”
Politico – Mike Allen

It’s incredible that so few Republicans don’t see this corrupt aspect of our politics as a necessary evil that must be overturned, but as a staple in our democratic process. Lindsey Graham is the only one so far in the (potential) GOP field who has voiced support for a full repeal of Citizens United. It’s terribly depressing that we, as a people, have become so conditioned to political corruption and headlines like this one.
Seattle Times – Joseph O’Sullivan

State Treasurer Jim McIntyre has put forward a tax plan that would institute a 5 percent personal income tax with some exemptions, eliminate the state property tax, reduce business taxes and lower the sales tax from 6.5 percent to 5.5.
McIntyre would make many of these tax changes via a proposed amendment to the state Constitution he wants on an already loaded 2016 ballot.

Jeb Bush’s Catastrophic Health Care Plan Would Be Catastrophic for Americans

The good news is that Jeb Bush agrees with us that income inequality is one of the biggest problems America is facing today. He’s so concerned about income inequality, in fact, that he’s named his presidential PAC Right to Rise, supposedly to honor his belief that Americans should be able to transcend class through hard work and dedication. That’s the good news. The bad news is that Jeb Bush doesn’t seem to understand what income inequality is.

Don’t believe me? Politico’s Jennifer Haberkorn recently published a piece recounting Jeb Bush’s thoughts on the Affordable Care Act. Unsurprisingly, Bush calls Obamacare a “monstrosity.” This is not a surprise; Republicans have been battering their thesauri into coughing up synonyms for “Nazism” ever since the Affordable Care Act was first proposed. But Bush’s proposed replacement for Obamacare–remember, his team wants us to believe he’s supposedly the smart one in his family–is jaw-droppingly dumb. Get a load of this:

“The effort by the state, by the government, ought to be to try to create catastrophic coverage, where there is relief for families in our country, where if you have a hardship that goes way beyond your means of paying for it, the government is there or an entity is there to help you deal with that,” Bush said in Iowa last weekend. “The rest of it ought to be shifted back where individuals are empowered to make more decisions themselves.”

There’s so much to unpack in this statement that I’m not even sure where to begin. First of all, I guess, let’s be clear that catastrophic coverage for the poor is exactly the health care system we had before Obamacare passed. Health care for poor people meant that they only went to the emergency room when they absolutely had to, when their health became a matter of life and death, and then they had to skip out on the bills because they couldn’t afford them. This made everyone’s health care bills higher. So to formalize catastrophic care into the standard health care for America’s poorest citizens would mean we’d be denying a huge percentage of the population access to preventative care, to basic check-ups, to screenings and vaccinations and all the medical care that every single American should be allowed to enjoy.

Jeb Bush's Official PortraitSecondly, it sounds to me that in the above quote, Bush is suggesting that we ought to adopt some sort of single-payer catastrophic health care plan, which is in some ways an even more liberal concept than Obamacare. If we establish a safety net of catastrophic coverage for every American citizen—albeit a safety net that hangs about two feet above an unforgiving concrete floor—does that mean we’ll have catastrophic death panels to determine when to cut coverage off? Will there be a catastrophic tax to pay for the catastrophic coverage? What’s to stop some future Democratic president from upgrading catastrophic single-payer coverage into Canadian-style single-payer coverage? Did Bush think this idea through at all?

The questions keep hurtling into my head faster than I can process them. Does Bush think he’ll actually be able to sell this idea—and it’s frankly charitable to even call it an “idea”—to the American voting public? Is America ready for a health care system as horrifically imbalanced in favor of the wealthy as our economic system is? Does Bush really expect poor people to swallow this? Is his message of hope for the poor people of America really going to be “you’re only allowed to visit a doctor on the single worst day of your life?”