Trump and conservatives in Congress are planning a big tax cut for millionaires and billionaires. To justify it they’re using the oldest song in their playbook, claiming tax cuts on the rich will trickle down to working families in the form of stronger economic growth.
Baloney. Trickle-down economics is a cruel joke. Just look at the evidence:
1. Clinton’s tax increase on the rich hardly stalled the economy. In 1993, Bill Clinton raised taxes on top earners from 31 percent to 39.6 percent. Conservatives predicted economic disaster. Instead, the economy created 23 million jobs and the economy grew for 8 straight years in what was then the longest expansion in history. The federal budget went into surplus.
2. George W. Bush’s big tax cuts for the rich didn’t grow the economy. In 2001and 2003, George W. Bush lowered the top tax rate to 35 percent while also cutting top rates on capital gains and dividends. Conservative supply-siders predicted an economic boom. Instead, the economy barely grew at all, and then in 2008 it collapsed. Meanwhile, the federal deficit ballooned.
3. Obama’s tax hike on the rich didn’t slow the economy. At the end of 2012, President Obama struck a deal to restore the 39.6 percent top tax rate and raise tax rates on capital gains and dividends. Once again, supply-side conservatives predicted doom. Instead, the economy grew steadily, and the expansion is still continuing.
4. The Reagan recovery of the early 1980s wasn’t driven by Reagan’s tax cut. Conservative supply-siders point to Ronald Reagan’s 1981 tax cuts. But the so-called Reagan recovery of the early 1980s was driven by low interest rates and big increase in government spending.
5. Kansas cut taxes on the rich and is a basket case. California raised them and is thriving. In 2012, Kansas slashed taxes on top earners and business owners, while California raised taxes on top earners to the highest state rate in the nation. Since then, California has had among the strongest economic growth of any state, while Kansas has fallen behind most other states.
So don’t fall for supply-side, trickle-down nonsense. Lower taxes on the rich don’t generate growth and jobs. They only make the rich even richer, at a time of raging inequality, and they cause bigger budget deficits.
[*Our thanks to Alexandra Thornton and Seth Hanlon from the Center for American Progress]
Critics lament as 126 House Democrats join forces with GOP to hand Trump ‘terrifying’ mass domestic spying powers
Privacy advocates and civil liberties defenders are expressing outrage after the Democratic-controlled U.S. House of Representatives on Tuesday night voted down a bipartisan amendment designed to end, as one group put it, the U.S. government's "most egregious mass surveillance practices" first revealed by National Security Agency whistleblower Edward Snowden.
In a final vote of 253-175, it was 126 Democrats who joined with 127 Republicans to vote against an amendment introduced by Rep Justin Amash (R-Mich.) and Rep. Zoe Lofgren (D-Calif.) that would have closed loopholes in Section 702 of the Foreign Intelligence Surveillance Act that critics charge has allowed the NSA to abuse warrantless surveillance capabilities and target the emails, text messages, and internet activity of U.S. citizens and residents. See the full roll call here.
The real threat to America isn’t Trump’s ‘deep state’ — it’s Trump’s corrupt state: Robert Reich
Trump has been ramping up his “Deep State” rhetoric again. He’s back to blaming a cabal of bureaucrats, FBI and CIA agents, Democrats, and “enemies of the people” in the mainstream media, for conspiring to remove him from office in order to allow the denizens of foreign shi*tholes to overrun America.
But with each passing day it’s becoming clearer that the real threat to America isn’t Trump’s Deep State. It’s Trump’s Corrupt State.
Not since Warren G. Harding’s sordid administration have as many grifters, crooks and cronies occupied high positions in Washington.
Why is America’s suicide epidemic hitting Trump’s base so hard?
In 2017, 47,173 Americans killed themselves. In that single year, in other words, the suicide count was nearly seven times greater than the number of American soldiers killed in the Afghanistan and Iraq wars between 2001 and 2018.