Tag: bill clinton
Trump's 2017 tax cuts

Trump's Tax Cut Will Lead To Fiscal Disaster

First off, let's drop the Republican claim that not extending Trump's 2017 tax cuts is a tax increase.

Many of these tax cuts were purposely designed to expire and for a sneaky reason. Making them permanent would have hiked the bill's cost by more than $1.5 trillion over 10 years. Add to that the interest payments tied to the higher borrowing, and the number rises to $2 trillion.

The ugly bottom line is this: Trump's "big, beautiful" tax and spending bill is expected to tack another $3.8 trillion to budget deficits over the next decade.

Recall Elon Musk's vow to cut $2 trillion in spending a year ago? The amount actually cut was about $100 billion. Sorry to throw more numbers at you, but that's only 5% of $2 trillion.

Balancing the federal budget without added borrowing can be done. It was done when Bill Clinton, a Democrat, was president. Clinton had raised some taxes, notably on the wealthy, in his 1993 budget. Republicans demagogued those tax hikes, which helped them win big in the midterms that followed.

By 1998, the federal budget was in surplus. Republicans rightly insist that they helped by forcing lower spending. But the added tax revenue brought in more money than the spending cuts saved.

Most Americans got richer under Clinton. Despite higher tax bills, the rich got richer, too. They benefited from a stock market lifted in large part by the growing belief that the federal government had become a responsible financial steward.

During Clinton's presidency, the S&P 500 stock index rose a legendary 208 percent. Had dividends been included and reinvested, the total return would have been higher.

George W. Bush took over the presidency in January 2001 and squandered the surplus with tax cuts and dramatically higher spending. He also oversaw the reckless deregulation that led to the financial collapse at the end of his two terms — and a 40% drop in the S&P 500.

Anyone who has done a household budget knows that two numbers matter. One is for spending; the other is for money coming in. For the federal government, money coming in is the tax revenues.

Ronald Reagan bought into the idea that tax cuts would pay for themselves through greater economic growth. He quickly saw that his 1981 tax cuts didn't come close to covering the lost revenues plus higher defense spending. To his credit, Reagan acted to stabilize the financial picture by signing a tax increase the following year and then other increases in 1984 and 1986. Nonetheless, the national debt tripled during his eight years.

Trump is pushing hard for both tax cuts and higher spending. And that has the financial markets fearing a new era of financial irresponsibility. Moody's has just lowered its credit rating for the United States from triple-A to double-A. That's contributed to a global selloff of U.S. Treasury debt, as it is no longer seen as the ultra-safe investment it was. The U.S. must now offer higher returns to compensate for the higher risk. Our annual interest payments, meanwhile, now surpass the defense budget.

All this doesn't fully count the growth-killing effects of Trump's tariff plans. JPMorgan Chase chief executive Jamie Dimon says investors may not have fully digested how much of a threat to their portfolios the tariffs pose.

Trump's tax-and-spending bill has a long way to go — the Senate after the House. But the financial markets obviously don't like what they are seeing.

Republicans should not be extending and adding to the 2017 tax cuts. Responsible lawmakers would just let them expire as they were scheduled to do. Alas, they clearly don't have it in them to be responsible.

Reprinted with permission from Creators.

No, Donald Trump Didn't Win This Election By A 'Landslide'

No, Donald Trump Didn't Win This Election By A 'Landslide'

As the tallying of votes approaches finality, with no happy outcome for Democrats, the triumphal narrative proclaimed by Republican cheerleaders needs correction. There was no MAGA “landslide” on Election Night – unless, like so many other aspects of American life, we have decided to diminish what that term has always meant historically.

Donald Trump appears to have won the popular vote by just over two percent, according to the latest numbers published by the Cook Political Report, which netted him 312 electoral votes. While that represented a big improvement on Trump’s weak record in presidential runs (and certainly warrants deep Democratic introspection), it was far from anything that could be defined as a landslide. In California, where Kamala Harris won the state with nearly 60 percent, there are still more than three million votes yet to be tallied..

So let's nudge the Republicans and their media cheerleaders back toward reality.

The last time that a Republican presidential candidate achieved what we have traditionally called a landslide was in 1988, when George H. W. Bush defeated Michael Dukakis by eight percent of the popular vote and won more than 400 electoral votes. Ronald Reagan notched two landslide victories: the first in 1980, when he beat incumbent Jimmy Carter by more than nine percent in the popular vote and nabbed 489 electoral votes (although Carter was hobbled by the third-party candidacy of John Anderson, who got nearly seven percent); and the second four years later, when he crushed Walter Mondale with nearly 59 percent of the popular vote and carried every state except the Democrat’s Minnesota home.

And let’s not forget Richard Nixon’s similar trouncing of George McGovern in 1972, when the Republican won 520 electoral votes and 61 percent of the popular vote. (Tricky Dick resigned in disgrace two years later when after revelations about his cheating in that election and numerous other crimes.) Democrats have won big too, notably in 1964 when Lyndon Johnson won 486 electoral votes and more than 61 percent. The last Democratic victory that approached a landslide came in 1996, when Bill Clinton won reelection with 379 electoral votes and came in nine points ahead in the popular vote against the incumbent Bush (who also had to contend with self-funding third-party gadfly Ross Perot).

So no, Trump’s roughly two percentage points do not place him in that category. It’s scarcely more than half as big as President Joe Biden’s margin in 2020, which the MAGA Republicans have repeatedly insisted was no victory at all. Democrats are far more gracious losers (and winners) than the Trump Republicans, who don’t hesitate to threaten and employ violence when they don’t get their way. (Notice how all the pre-election claims of “fraud” suddenly vanish when they win?)

Whatever the final numbers say, this election was assuredly disastrous for the Democrats, the nation, and the world. The damage has only just begun and the recovery remains distant and uncertain. Yet there many signs that the Republican narrative is too simple and simply wrong – from the Senate races that Democrats won in four of the five battleground states to the ballot initiatives where Republican ideologues were defeated on paid family leave, private school vouchers, and especially abortion rights.

The other cliché that Republicans keep repeating as they yammer about their pseudo- landslide is “mandate.” But having lied about their intentions, pretending to disown the authoritarian Project 2025 agenda that they now openly embrace, they have no mandate.

Praising Biden, Bill And Hillary Clinton Vow To Elect Harris

Praising Biden, Bill And Hillary Clinton Vow To Elect Harris

Former President Bill Clinton and former Secretary of State Hillary Clinton have endorsed Vice President Kamala Harris for the Democratic nomination following President Joe Biden’s announcement that he is ending his campaign.

“We are honored to join the President in endorsing Vice President Harris and will do whatever we can do to support her,” the Clintons said in a joint statement.

Reprinted with permission from Daily Kos.

Ex-Treasury Chief Summers Warns Of 'Worldwide Economic Warfare' If Trump Wins

Ex-Treasury Chief Summers Warns Of 'Worldwide Economic Warfare' If Trump Wins

Lawrence Summers, who served as the 71st Secretary of the Treasury under former President Bill Clinton, warned of “worldwide economic warfare” if Donald Trump implements his policy proposalspolicy proposals, Bloomberg reports.

Summers spoke with Bloomberg Television’s Wall Street Week with David Westin on Friday, describing Trump’s policy ideas as “a prescription for the mother of all stagflations.

According to Bloomberg, Summers’ comments came on the heels of Trump, in a meeting with Republicans on Capitol Hill Thursday, floating “using tariff hikes as a way to pay for some income tax cuts.”

Trump in that meeting “also proposed a minimum 10 percent universal import levy and a punitive rate for China,” Bloomberg reports.

Speaking to Westin on Friday, Summers warned there’s never “been a more inflationary presidential economic policy platform in my lifetime,” comparing the proposal to “George McGovern in 1972.”

Though Summers conceded Trump could be following the time-honored tradition of presidential candidates “not [being] serious about the things they say,” the former Treasury secretary described Trump’s public policy platform as an “irresponsible set of proposals.” Between the former president's economic platform and anti-immigration rhetoric, Summers warned of “more wage inflation pressures” if Trump wins the 2024 election. Such pressures, according to Summers, could force another rate hike by the Federal Reserve.

“This could easily be a prescription for a 10 percent mortgage rate,” Summers said. “… This is really dangerous stuff.”

Trump campaign spokesperson Karoline Leavitt hit back at Summers’ assessment, claiming the former president’s “first-term pro-growth economic policies created record-low mortgage, interest and unemployment rates and made inflation virtually non-existent.”

“Americans can expect President Trump’s second-term economic agenda will have the same impact and end Joe Biden’s inflation crisis that continues to rob working families of thousands of dollars every month,” Leavitt said.

Reprinted with permission from Alternet.

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