Wednesday, December 20, 2017

THIS WEEK IN POLITICAL NEWS -- 12/20/17

End of 2017 Edition
This is brief; there’s obviously a lot more going on (ie, Mueller) that I didn’t have time to get to. Oh well! See you in 2018!

WELL, THEY PASSED THIS CRAP: Without a single Democratic vote, the GOP rammed through Congress its massive transfer of wealth plan, what the folks at Pod Save America have taken to calling the Donor Relief Act of 2017. A few of the most egregious provisions (like the taxation on grad students’ tuition waivers) were removed, but the tax cut law will dramatically compound America’s already staggering inequality. (In fact, the final bill is worse in that respect than the House or Senate versions that preceded it.) It violates the clear and specific promises Trump and the GOP made throughout the last two years about their tax plan: (1) that it would be revenue neutral (in fact, it costs at least $1.5 trillion, and maybe many billions more); (2) that it would raise taxes on the rich, including Trump (in fact, the plan overwhelmingly benefits the rich and specifically real estate owners and developers like Trump; it even decreased the top tax bracket); (3) that it would simplify the tax code (in fact, it removes only one of the hundreds of tax expenditures in the tax code and adds dozens of new ones); (4) that it would close the hedge fund manager/carried interest loophole (the loophole remains). Jonathan Chait points to a small upside of this fiasco: It has brought all of congressional Republicans’ liabilities to Trump, and Trump’s to congressional Republicans, where both sides had tried to distinguish themselves during the 2016 campaign: “The regular Republican Party of tax cuts for the rich and deregulation of polluters and the financial industry once seemed to be set apart from its clownish demagogue presidential candidate. In rapid order, the strands have merged together into a party disdainful of transparency and united in self-enrichment.”

GOOD READS ON A SHIT BILL: You should read every word of this Yglesias piece on “the wholesale looting of America,” of which the tax bill plays a central but not singular role. Please go read it. Charles Pierce has a barnburner on Paul Ryan and his lifelong drive to establish a plutocracy. Chait writes that the GOP’s professed desire for “tax reform” was a lie all along. Dylan Scott at Vox explains how the bill worsens inequality. Sarah Anderson and Chuck Collins at the Nation lay out bunch of ideas for how to “make a ‘yea’ vote on this stinker a mark of shame for candidates trying to get reelected in 2018 and 2020.”

9 MILLION KIDS IN PERIL: In October, Congress let funding for the Children’s Health Insurance Program run out. CHIP provides health insurance to kids whose parents make too much money to qualify for Medicaid but do not get insurance from their employer. Everyone purported to agree that funding CHIP was a priority and would be dealt with immediately, and yet somehow, “immediate” never arrived. Now it looks like Congress won’t take up a funding bill until next month -- even as states are starting to shut down their programs as they run out of funding. “On January 2, Alabama will stop allowing new children to enroll in its CHIP program. Connecticut and Colorado will shutter their programs on January 31, if Washington does not provide new funds before then. Meanwhile, other states are already wasting money and personnel hours on contingency plans for CHIP’s demise. Last month, The Atlantic’s Annie Lowrey reported that West Virginia had stopped pushing eligible families to sign up for the program, a development that could lead to many more low-income children going without coverage, even if the program gets reauthorized in early January.” A Georgetown study found that 1.9 million children will lose their insurance by the end of next month, when 25 states run out of funding. But hey -- heirs will no longer have to pay taxes on their multi-million-dollar estates! So at least we have that.

Endorsements
  • These 30 seconds of gape-mouthed silence when Roy Moore surrogate Ted Crocket is informed that, who knew?!, non-Christians are allowed to be elected officials in the U.S.
  • Horn-tooting alert: Our firm won a good and righteous case today that I was involved in, and the AP wrote it up.
  • In honor of end-of-year lists, here are the best books I read this year. (To be clear, these are just books I read this year, not ones that were necessarily published this year).
    • Best novels I read for the first time: Little Fires Everywhere (Celest Ng); The Immortalists (Chloe Benjamin)
    • Best novels I re-read: The Handmaid’s Tale (Atwood -- even better on re-read); The Harry Potter books (essential self-care in the Trump era); Anna Karenina (better and better with each re-read)
    • Best nonfiction: The Prize (Dale Russakoff); Giant of the Senate (Al Franken -- yes, yes, but this book was still THE BEST).

Monday, December 11, 2017

THIS WEEK IN POLITICAL NEWS -- 12/11/17

Ed. Note: I am clearly struggling to get this out on any sort of schedule. I’m not sure whether this will be the last edition of 2017 (if so, good riddance to a truly terrible year -- though considerably brightened by the birth of one freakishly adorable kid), and I’m not sure what the schedule will be in 2018, when I return to work. Just a warning!

THE TAX CUTS ARE NOT A DONE DEAL: Folks, the tax cut plan is far from being a sure thing. That’s because the GOP put so little time and thought into their bill that they accidentally saddled it with all sorts of errors, contradictions, and confusions that undercut their primary aim of slashing taxes for rich people and companies. (For example, by reinstating the corporate alternative minimum tax at the last second, the GOP “nullified all of their corporate donors’ favorite deductions.”) The Wall Street Journal reported yesterday that some high income earners could even face a 100% marginal rate on some of their income. “As income climbs and those breaks phase out, each dollar of income faces regular tax rates and a hidden marginal rate on top of that, in the form of vanishing tax breaks. That structure, if maintained in a final law, would create some of the disincentives to working and to earning business profit that Republicans have long complained about, while opening lucrative avenues for tax avoidance.” “Some provisions are so vaguely written they leave experts scratching their heads, like a proposal to begin taxing the investment earnings of rich private universities’ endowments. The legislation doesn’t explain what’s considered an endowment, and some colleges have more than 1,000 accounts.” Obviously, most of this crap will remain in the final bill; only the stuff that actively hurts rich people and corporations will be “fixed.” Which is to say that this bill will perform “the opposite function of tax reform,” as Chait puts it. “It is, at best, a messy helicopter drop of cash on corporate America.” But as long as the bill has to go up for a vote in both chambers again, it’s not a done deal -- especially as the promises extracted to get some senators’ votes reveal themselves to be as empty as Mike Pence’s cranium. In particular, Susan Collins said that McConnell promised her that two important health care bills to shore up the individual markets would be passed first, before the final tax bill. This was her price to support a tax bill that will blow up the individual market by repealing the individual mandate, which will cause 13 million people to lose their insurance and will likely cause premiums to skyrocket. But of course, McConnell cannot force the House to pass anything, and Paul Ryan has said he does not support the bills Collins wants passed. And Jeff Flake’s vote was obtained with a promise that DACA Dreamers would be protected. So the question is, as these promises fail to come to fruition, whether those senators will fall into line or hold onto their supposed principles. Maine voters, Arizona voters, and the rest of us -- to the phones!

P.S. The Trump Treasury Department finally admitted today that the tax plan won’t pay for itself (duh): “For months now, top leaders in the Trump administration have been promising to produce a dynamic economic analysis that shows the growth-boosting powers of its tax plan are so impressive that they will negate any revenue loss. But the report — published by an agency overseen by Trump appointees and using methods Republicans say they favor — found that they have to assume large numbers of additional policy changes to get the growth they’ve promised.”

RIGHT WING ASSAULT ON MUELLER: As many of us wait with nervous anticipation for the fruits of Mueller’s investigation (which has already borne some incredible fruit -- more on that below), the other half of the country -- and its leaders and media figures -- are working tirelessly to undercut the investigation. Fox News is in overdrive, parroting a party line that the investigation is “corrupt” and that the entire FBI is tainted. It is truly incredible, and frightening. The Right has latched onto specious claims of bias because a single FBI investigator, who also worked on the Clinton email server investigation and helped edit Comey’s remarks in which he announced there would be no criminal charges, expressed anti-Trump views in private text messages to friends. Mueller removed him from the investigation in August. When the Times reported this last week, the Right wing wasted no time climbing up Bullshit Mountain, expressing shock and outrage that someone with private views was allowed to work in law enforcement. (It seems to me that saying anyone with a private bias is automatically disqualified from law enforcement is a dangerous precedent the Right will have a hard time actually following.) Mainstream Republicans are screaming for an investigation into Mueller and his team. The irony of the GOP’s attacks -- that the FBI and Comey and Mueller are all in some conspiracy against Trump, when it is only because of the FBI and Comey that Trump is even president -- sends me into paroxysms of incredulous rage. ARE THESE PEOPLE EFFING SERIOUS? Regardless, we need to take this line of attack extremely seriously. Paul Waldman argues that this is a massive PR campaign to immunize half of the public against any findings Meuller might make, by convincing them that this is all just a partisan witch-hunt. As Dahlia Lithwick puts it, “[I]t often feels like it wouldn’t be enough for Mueller to hand us a smoking gun and an indictment. What if they threw a conviction and nobody came?” Jonathan Chait argues that the GOP’s response to Roy Moore -- rapid disavowal, followed by silence, followed by newfound partisan acceptance and open endorsement -- shows that Mueller’s investigation is now in “mortal danger”:

This was the dynamic last year, when a tape revealed Trump casually confessing to sexual assault, and it was briefly impossible to imagine that he could continue the campaign. Reince Priebus urged him to quit; Mike Pence reportedly offered his services to the RNC as a substitute. Then the incomprehensible became inevitable. The same thing happened in May when a Republican House candidate, Greg Gianforte, assaulted a reporter and then lied about it. Would Republicans denounce him? Expel him? It turned out they would do nothing. By the time Moore came along, the party’s moral sensibilities had been worn to a nub.

The next step in the sequence is almost insultingly obvious. Trump is preparing to shut down Robert Mueller’s investigation of Russian intervention in the 2016 election.

And the GOP won’t do a damn thing about it.

FRANKEN, MOORE, AND THINGS THAT AREN’T THE SAME: So last week, Al Franken announced his impending resignation, and Donald Trump doubled down on his support for Roy Moore. I really hate talking about these men in the same sentence, because what they are accused of (even ignoring every non-sexual terrible thing about Moore) is not even remotely similar. But still, we should discuss them both. First, on Franken: The last time I addressed him here, there was a story of a single incident, from years before he was a senator, in which he took a humiliating and unacceptable “funny” photo pretending to grope a sleeping woman. I said that he should not resign. In the past few weeks, multiple other women have come forward to say that he groped them, often while posing for photos, including while he was a senator. This behavior is insane and gross and pathetic. There is no reason to grab a woman’s ass during a photo except to show her that she is less than, that her humanity is subservient to your prurient gratification. It is a subtle but effective way of demonstrating that a woman’s autonomy need not be respected. So in my mind, the allegations are pretty serious. I am furious and disappointed. And so I think Franken did the right thing in stepping down. It’s inraging because he is a great senator, and because a serial sexual abuser is sitting in the oval office, and because we know there are far worse sexual harassers (men who abuse women who work for them) sitting in Congress today. (One of those men, John Conyers, was thankfully pressured into resigning. The allegations against him are truly gross.) But it was the right thing to do. (What is NOT right and is insanely politically stupid would be for the Democratic governor to appoint a “place-holder” who would not run for election, making the seat wide open in 2018. That’s just dumb. Appoint a good person who will run. Why make our job that much harder in 2018, when we already have to defend Amy Klobuchar’s seat?) For a contrary view, or at least a take that gives me great pause, read Dahlia Lithwick on the Democrats’ unilateral disarmament (and don’t miss her fabulous kicker).  
Okay, on to Roy Moore. The idea that Alabama is about to elect this man is so abhorrent and revolting it’s hard to do anything but laugh. What’s so particularly craven is that, since this is a special election, he will only hold the seat until 2020, when he would have to run again. Which means that Republicans would only have to deal with Doug Jones for 2 years before being able to run a sane and normal (or more normal) Republican who would almost certainly handily defeat him in 2020. So when Republicans are choosing party over normal decency, it is only in service of avoiding two years of a Democratic senator. TWO YEARS. Mitch McConnell and the RNC’s caving is particularly egregious, given that McConnell has stated that he believes the women’s allegations against Moore, and the RNC was so disturbed that it pulled its funding from the campaign -- only now, a few weeks later, for McConnell to declare that “the voters should decide” and the RNC to re-enter the race with guns blazing. Thus, these people believe Moore preyed on young girls and are openly supporting him anyway. And again, to beat a dead hore, the allegations of child abuse are really not the worst things about Moore, when it comes to being a senator. Just this weekend, CNN reported that Moore declared a few years ago that nullyfing all the amendments after the 10th Amendment -- including, you know, the 13th (abolishing slavery), the 14th (incorporating the Bill of Rights against the states), the 15th (guaranteeing the right to vote regardless of race), and the 19th (granting women the right to vote) -- “would eliminate many problems.” This is a person who claims to steadfastly support the Constitution. He is a cave-dwelling cretin of the first order.

DEMOCRATS NEED TO WORK THIS SHUT-DOWN: Along with all the other things they are trying to do, the GOP was supposed to fund the government by last Friday. At the last second, they passed a temporary stop-gap, funding the government at current levels through December 22, avoiding a shutdown. But now Congress must pass a full spending bill -- and they need Democratic votes. This is both because they’ll need 60 votes in the Senate and because the far-right flank in the House is likely to oppose the bill because they don’t like spending or whatever. So if the GOP needs the Dems to help, despite their unified control of government, then Democrats need to extract important concessions for that help. The most important would be a DREAM Act, which many Republicans purport to support, and full funding of the Children’s Health Insurance Program (“CHIP”), another bipartisan bill that supposedly everyone is for and yet whose funding the GOP allowed to lapse earlier this fall. Of course, Democrats are struggling to figure out their strategy and stay united behind it. I guess we’ll see what happens.

Endorsements:

  • You’ve probably heard about this awful and dispiriting and straight-up bananas Times story about Trump. But you really should read the whole thing.
  • I don’t know how I got through all of law school and 5 years into my legal career before hearing that Judge Kozinski, a conservative on the 9th Circuit who is super high-profile and sends a ton of his clerks on to clerk for the Supreme Court, was a shocking creep and harasser. That news broke this week, but it was supposedly another one of those “open secrets,” one that I was just entirely oblivious to. You really need to read this former clerk’s account of the disgusting and downright terrifying harassment she suffered at his hand.
  • ...I guess I didn’t read that much great stuff last week. Sorry!

Sunday, December 3, 2017

THIS WEEK IN POLITICAL NEWS -- 12/3/17

The This-Is-Why-We-Won’t-Be-Able-to-Have-Nice-Things-Ever-Again Edition

TAX BILL -- THE POLITICS: At 1:30am on Saturday, the Senate voted on party lines (with exactly one Republican defector, Bob Corker) to pass a gigantic tax cut after exactly zero hearings, with last minute changes released literally hours before the vote, with changes literally written in by hand in the margins. This bill represents an astounding denigration of democracy, more damaging to our governing norms and structures than anything we have yet seen in the Trump era. “On Friday, at lunchtime, Mitch McConnell, the Senate Majority Leader, announced that he had the votes to pass a bill, but what bill? A final version, which ran to more than five hundred pages, didn’t emerge until about 6 p.m. , and some of the pages had inserts scrawled in ink.” Senator McCaskill tweeted out a photo of a list of amendments that, as of early Friday afternoon, she had found out about only through lobbyists and whose substance remained a mystery. When Democrats moved to adjourn until Monday to give senators time to read the bill, every Republican voted against it. Before the final draft was even released, John McCain announced his support of the bill, revealing once and for all that he has no principles. Recall that he voted against the 2001 and 2003 Bush tax cuts because their benefits skewed too heavily to the rich. This time around, with income inequality dramatically more serious than in 2001, the GOP plan not only directs the vast majority of its benefits at the wealthy, but it actually raises taxes on many poor and middle class families -- a perversion not even the Bush tax cuts attempted. Eric Levitz tallies up the many ways McCain has shown himself to be a fraud, among them, his early insistence that the GOP take a “bipartisan approach” to the tax bill. And let’s not forget his relief, expressed THURSDAY, that the bill had proceeded via “regular order” -- just hours before the GOP scrapped the bill and started redrafting a new version -- and then replaced that version with an entirely new draft, with handwritten amendments, just hours before the dead-of-night vote.
So why are they doing this? Why is the GOP dead set on passing an historically unpopular tax cut that goes against every idea Trump ran on (recall, for example, that he promised to do away with the hedge fund manager “carried interest” loophole)? Well, Orrin Hatch gave up the whole game in the middle of debate Friday night. When asked if the Senate could renew the Children’s Health Insurance Program -- a bipartisan program, originally co-drafted by Hatch himself, that insures 9 million children and whose funding expired on October 1 -- before rushing through this tax cut, Hatch responded: “[T]he reason CHIP’s having trouble is because we don’t have money anymore.” That’s the real plan: Drain the public coffers with these insane tax cuts for the wealthiest and most privileged members of our society (labeling them “job creators” all the way) and then throw up their hands that we can’t afford the social safety net because we ran out of money. And they’ve already started moving to Phase 2: “High-ranking Republicans are hinting that, after their tax overhaul, the party intends to look at cutting spending on welfare, entitlement programs such as Social Security and Medicare, and other parts of the social safety net. . . . As Republicans advocate spending cuts, they have frequently cited a need to reduce the national deficit while growing the economy.” (Side note: Recall that the Obama administration proposed free a community college and universal pre-K program, which would have cost $130 billion over ten years. The GOP shot it down because it was too expensive. That’s about 8% of the cost of this tax bill. (HT Drausin for the math.))
The House and Senate still needs to work out some significant differences in their bills, particularly to the deficit implications (the House version costs way more because it makes the individual tax cuts permanent, while the Senate sunsets them in 2026) and the way they’ve dealt with taxation of pass-through entities, businesses in which the income is attributed to the owners and taxed at the individual tax rates (like LLCs and partnerships). So there’s still time to lobby and push and press and cajole. Already, the American people appear to see through this scam for what it is: a massive transfer of wealth from the vast majority of the people to the tiny few at the very top. Our only hope to defeat this is to continue mobilizing people against this monstrosity. (Chait is almost giddy at the political boon this deeply unpopular plan presents: “Their ‘fix’ [to the tax code] is a cash grab. It is ‘permanent’ only until Democrats regain control of government. And thanks to the Trump tax cuts, that day will come sooner.”)

TAX BILL -- THE POLICY: Given the dark hole of its passage, it warrants taking some time to talk about what is actually in this bill. I recommend starting with this the New York Times piece, laying out in searing detail just how radical the GOP’s tax plan is. The upshot: “The result is a behemoth piece of legislation that could widen American economic inequality while diminishing the power of local communities to marshal relief for vulnerable people.” “In 2019, a person in the bottom 10 percent gets a $50 tax cut and a person in the top 1 percent gets a $34,000 tax cut.” The middle 20% of taxpayers can expect an $850 tax cut, while the top 0.1% will get $85,640. By 2025, the middle 20%’s tax cut remains about the same -- $880 -- while the share going to the top 0.1% balloons to $121,060, more than twice the total median household income. “And by repealing Obamacare’s individual mandate, an estimated 13 million fewer Americans are expected to have insurance and federal spending on Medicaid and other subsidies would drop.” All in all, as this Vox piece illustrates in detail, this tax plan will overwhelmingly exacerbate America’s already enormous and growing income inequality.
Roger Low comes through with the math, looking at the Joint Committee on Taxation’s report, available here. He sent me this analysis, which I am quoting:

All these numbers came from just 3 pages in the report: pages 1, 4 and 7 -- and some simple arithmetic. Note these numbers don't even get into 2027, when a number of the provisions expire and things get even shittier for the middle class:
  • in 2019, $34 Billion goes to taxpayers earning $1 million or more. There are only 572,000 such taxpayers. With basic math: that represents an average tax cut of over $59,000 per millionaire in that year.
  • In 2019, $118 Billion goes to taxpayers earning $200,000 or more. There are fewer than 10.9 million such taxpayers. That represents an average tax cut of over $10,800 per taxpayer earning over $200,000.
  • In 2019, $14 billion goes to all taxpayers earning $50,000 or less. That represents just over half of all taxpayers, over 90 million taxpayers. The average tax cut these families get in one year is $156. Or, about $6 in a 2 week paycheck.
It gets worse. By 2025, as some provisions phase in and others phase out, here's where we stand:
  • In 2025, $15.4 billion goes to taxpayers earning $1 million or more. That's an average tax cut of over $25,000 per millionaire.
  • In 2025, $89 billion goes to taxpayers earning $200,000 or more. That's a tax cut of over $7,000 per wealthy taxpayer.
  • By contrast, in 2025, believe it or not, taxes would actually be raised in total by $5 billion in total on 92 million taxpayers earning $50,000 or less -- again, about half of all taxpayers. That's an average tax increase of just over $50 per year.

Pretty incredible. Thanks Rog!
A few other nuggets: Orrin Hatch snuck in a last minute amendment that would make tuition for religious private schools deductible -- while making the money that funds public schools (state and local taxes) taxable. (What’s more, the amendment appears to single out religious school tuition for this preferential treatment, raising some serious First Amendment issues.) Pat Toomy inserted an amendment that seemed aimed to exempt a single religious college (in Michigan, not even Toomey’s Pennsylvania!) that has extensive ties to Besty DeVos’s family from the new provision taxing college endowments. That amendment was defeated. Both the House and Senate bills drop the tax rate for corporate income made overseas all the way down to 14%, under the rationale that it will encourage companies to bring jobs back to the United States. As NPR points out, we already tried this, in 2004, and it didn’t work: “According to a 2011 audit by the Senate, the companies that made the most use of the tax holiday ended up cutting, not growing, their American workforce.”

UNDER THE RADAR OUTRAGE OF THE WEEK: There were a lot of outrageous things that happened this week. Like when Trump tweeted out fake anti-Muslim videos propagated by a far-right British group, prompting an official denunciation from the leader of our most important ally. (But let’s clutch our collective pearls in remembrance of the time Barack Obama moved a bust of Churchill!) But here’s another outrageous tale of disgusting awfulness that you may have missed: The North Carolina state legislature passed an anonymously-drafted law that essentially bans judges from waiving court fines and fees imposed on poor people for offenses,even as minor as seat belt violations. The staggering number and amount of these fees -- “from $5 for being arrested to $200 for failing to appear[,] . . . $7.50 to underwrite the police and sheriff retirement funds and . . . up to $40 a day for taking up space in jail,” not to mention the $50 fee for failing to pay a fee -- can quickly add up for poor people, saddling them with massive debts that lead to the suspension of their driver’s licenses (and thus their ability to get to work) and even to jail time, despite the Supreme Court’s proscription of debtors’ prisons.

Endorsements: