For a century the GOP has been bankrolled by big business and Wall Street. Trump wants to keep the money rolling in. His signature tax cut, two years old last Sunday, has helped U.S. corporations score record profits and the stock market reach all-time highs. To spur even more corporate generosity for the 2020 election, Trump is suggesting more giveaways. Chief of staff Mick Mulvaney recently told an assemblage of CEOs that Trump wants to “go beyond” his 2017 tax cut.
Trump also wants to expand his working-class base. In rallies and countless tweets he claims to be restoring the American working class by holding back immigration and trade. Incumbent Republicans and GOP candidates are mimicking Trump’s economic nationalism. As Trump consigliore Stephen Bannon boasted recently, “we’ve turned the Republican party into a working-class party.”
Keeping the GOP the Party of Big Money while making it over into the Party of the Working Class is a tricky maneuver, especially at a time when capital and labor are engaged in the most intense economic contest in more than a century because so much wealth and power are going to the top.
Armed with deductions and loopholes, America’s largest companies paid an average federal tax rate of only 11.3 percent on their profits last year, roughly half the official rate under the new tax law—the lowest effective corporate tax rate in more than eighty years.
Yet almost nothing has trickled down to ordinary workers. Corporations have used most of their tax savings to buy back their shares, giving the stock market a sugar high. The typical American household remains poorer today than it was before the financial crisis began in 2007.
Trump’s giant tax cut has also caused the federal budget deficit to balloon. Even as pretax corporate profits have reached record highs, corporate tax revenues have dropped about a third under projected levels. This requires more federal dollars for interest on the debt, leaving fewer for public services workers need.
The Trump administration has already announced a $4.5 billion cut in food stamp benefits that would affect an estimated 10,000 families, many at the lower end of the working class. The administration is also proposing to reduce Social Security disability benefits, a potential blow to hundreds of thousands of workers.
The tax cut has also shifted more of the total tax burden to workers. Payroll taxes made up 7.8 percent of national income last year while corporate taxes made up just 0.9 percent, the biggest gap in nearly two decades. All told, taxes on workers were 35 percent of federal tax revenue in 2018; taxes on corporations, only 9 percent.
Trump probably figures he can cover up this massive redistribution from the working class to the corporate elite by pushing the same economic nationalism, tinged with xenophobia and racism, he used in 2016. As Steve Bannon has noted, the formula seems to have worked for Britain’s Conservative Party.
But it will be difficult this time around because Trump’s economic nationalism has hurt American workers, particularly in states that were critical to Trump’s 2016 win.
Manufacturing has suffered as tariffs raised prices for imported parts and materials. Hiring has slowed sharply in Pennsylvania, Michigan, and other states Trump won, and in states like Minnesota that he narrowly lost.
The trade wars have also harmed rural America, which also went for Trump, by reducing demand for American farm produce. Last year China bought around $8.6 billion of farm goods, down from $20 billion in 2016. (A new tentative trade deal calls for substantially more Chinese purchases.)
Meanwhile, health care costs continue to soar, college is even less affordable, and average life expectancy is dropping due to a rise in deaths from suicide and opioid drugs like fentanyl. Polls show most Americans remain dissatisfied with the country’s direction.
The consequences of Trump’s and the Republicans’ excessive corporate giveaways and their failure to improve the lives of ordinary working Americans are becoming clearer by the day.
The only tricks left to Trump and the Republicans are stoking social and racial resentments and claiming to be foes of the establishment. But bigotry alone won’t win elections, and the detritus of the tax cut makes it difficult for Trump and the GOP to portray themselves as anti-establishment.
This has created a giant political void, and an opportunity. Democrats have an historic chance to do what they should have done years ago: Create a multi-racial coalition of the working class, middle class, and poor, dedicated to reclaiming the economy for the vast majority and making democracy work for all.
Here are 7 hilarious videos about wearing COVID-19 masks to send people who won’t wear them
While late-night shows are off for a Summer break, Americans are glued to TikTok and Twitter for their humor and every folks have delivered.
The latest trend is to mock fools who refuse to wear masks. While many people who refuse to wear a mask tuck their tails and sulk as they walk away, some take it to a whole new level of fury. Those precious souls are being mocked and shamed all around the world.
Here are seven videos that are hilarious or adorable that encourage wearing masks during the COVID-19 pandemic:
Wearing a mask is like wearing a lifejacket.https://twitter.com/mattbooshell/status/1280933495674732544
Ted Cruz mocked for tantrum about Gorsuch siding with Native American rights: ‘Way to channel Andrew Jackson’
In a surprise move on Thursday, Trump-appointed Justice Neil Gorsuch sided with Native American rights, ruling that Oklahoma must honor a treaty granting tribal sovereignty over much of the eastern portion of the state.
Sen. Ted Cruz (R-TX) took to Twitter to vent his outrage over the decision.
Neil Gorsuch & the four liberal Justices just gave away half of Oklahoma, literally.
Manhattan is next. https://t.co/Ic9gqqznJp
Trump is cracking as his distraction superpowers falter amid the coronavirus pandemic
Donald Trump is dumb — so dumb he literally suggested on live television that scientists should explore injecting household cleaners into people's lungs to cure the coronavirus. But due to what appears to be a serious and undiagnosed personality disorder — his niece Mary Trump, who is a clinical psychologist, suggests it's likely narcissism or sociopathy — Trump managed to stumble backwards into a strategy that works well with the 24-hour cable news ecosystem of national politics. Actually, "strategy" may be too strong a word, but it's inarguable that Trump's short attention span, impulsive nature and all-consuming corruption have meant a constant deluge of scandals and outrages, with each one knocking the last one out of the headlines.