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GOP Tax Plan V

Fully parsing the Republican tax plan is going to take some time, since they only released it yesterday (they want it fully passed in two weeks, even though a lot of the details aren’t even written out yet). But a few things are very clear. There is no doubt who overwhelmingly benefits, even if people are still trying to figure out by how much. The very rich make out like bandits, and people whose parents are...

GOP Tax Plan IV

The US corporate tax rate is currently 35% (on profits of more than $335,000). That is before deductions and loopholes. The after loophole rate is effectively about 18%. 18% is what corporations are actually paying, on average. Some pay zero, or even a negative rate (GE is famous for this). Some pay the full rate. And many very large corporations pay nothing, because they book all of their profit offshore in a jurisdiction...

Trump and the Foreign Agents Registration Act

Why is Manafort and the Trump campaign in trouble? Let’s go back to the basics. The law in question is the Foreign Agents Registration Act (FARA) of 1966. It bans foreign nationals from providing “anything of value… in connection with” an election. And it makes soliciting or accepting such contributions a crime. Below is the FEC page on the act. A lot of people are arguing that since we are just talking about...

Why Trump is still in office

Why is Trump still in office? Tax cuts. “The nonpartisan Tax Policy Center estimates that almost 80 percent of the Trump tax cut would go to people with incomes over $1 million; these people would get an average cut of around $230,000 a year.” And who has been buying politicians for decades with the express aim of winning majorities in order to cut taxes? People with incomes over $1 million. And why the hurry to...

The GOP and the Next Recession

So here’s an angle to policy that I’m not hearing discussed much. Pretty much everything Republicans are pushing as far as domestic policy will make the next recession a lot worse. How? While there are a lot of moving parts, the basic principle is simple. When the economy goes bad, a lot of people lose their jobs. What happens next either makes even more people lose their jobs, or not. If the jobless have access...