The Disappointing Joe Manchin

Senator Joe Manchin (D, WV) seemed, initially, like a center-left Democrat and a man who was capable of bipartisan work when he came on the scene a few short years ago.  Recall, for instance, his firm support of our 2nd Amendment and his opposition to much of Obamacare and to then-President Barack Obama’s (D) war on coal.

Now, though, he’s a proud member of the Progressive-Democratic Party’s caucus in the Senate, and the conflict between his claimed values and his voting against the just passed tax reform bill is showing.

“There’s some good in this bill. I acknowledge that,” Manchin said, when West Virginia radio talk show host Hoppy Kercheval asked the senator why he opposed legislation that will benefit the “vast majority” of taxpayers and businesses in the state.

“The things that you mention are correct. Initially people will benefit and see some changes in their taxes[.]”

But

Manchin blamed his opposition on projections from some analysts that the tax overhaul would increase the national debt, and that cuts directed at individuals and married couples is temporary and sunset in 2025 without further action from Congress, versus the corporate cuts, which are permanent.

And

Why did the permanency have to go on the big end, and not on the individuals who really got left behind?

He’s carefully eliding a number of things, though, with his rationalization.  One is that if he’s truly concerned about the national debt, he should get out of the way of Congressional efforts to cut Federal spending.  But he’s a Party man.  And the only way those temporary cuts actually will expire is if he and his fellow Progressive-Democrats go against Party tenets and prevent their extension or being made permanent rather than demanding the tax increases expiration would create.  But he’s a Party man; so are Progressive-Democrats all, all Party men.

Further, businesses plan—must plan—farther into the future than do us individual citizens.  They are far less agile than we can be; their costs for things like production supplies and for labor, to name just two factors, have to be planned for far in advance.  Businesses need the stability of permanence far more than we do; eight years is close enough to permanent for us.  Manchin knows this, or he’s too economically ignorant for national office.

And

He [Manchin] also complained of a coming increase in health care costs because the legislation repealed Obamacare’s individual mandate to purchase insurance.

He’s eliding another fact here, too.  Health coverage (not care) costs have been skyrocketing under Obamacare since the first months after it was enacted.  All that repealing the penalty for disobeying the Individual Mandate is doing is freeing up 13 million Americans—especially those at the lower end of the economic scale—from having to buy an Obamacare plan they can’t afford or that the rest of us can’t afford to subsidize.  Those health care costs have been sky-high all along—due to the lack of a free market in that particular industry; Obamacare only exacerbated this.  Manchin knows—or should know—this, as well.

Keep this in mind as this Progressive-Democrat runs for reelection in West Virginia next fall.

There’s More To It

As part of the (actually quite minor) snafu wherein the House and Senate passed trivially different versions of the tax reform bill, the Senate’s Parliamentarian ruled that 529 Savings Plans—modified by the tax bill to be usable for K-12 as well as secondary education expenses—cannot be used, on a straight majority vote, for K-12 homeschooling, even though formally schooled K-12 children and their parents can use the Plans.  Two icons of Progressive Democracy, Senators Bernie Sanders (I, VT) and Ron Wyden (D, OR), had objected and raised the matter to the Parliamentarian.

The Senate passed its version of the tax reform bill minus the protection for homeschooled children, since there weren’t going to be eight (or even one) Progressive-Democratic Party Senators who would vote for tax reform or lower taxes in any form and sent it back to the House where the bill was passed again and then sent to the White House for the President’s signature.

Senator Ted Cruz (R, TX, and whose 529 amendment was cut back by this maneuver) expressed his dismay.

What the Democrats did is they carved out one group, they carved out just homeschoolers, and they cut homeschoolers out. It really was shameful.
…
The Democrats view is they want control. They want control over everything, whether it is control over regulating an industry, control over the internet or, in this instance, control in how you educate your students.  The reason the Democrats don’t like homeschoolers is if you’re spending the time, investing the time at home teaching your kids, they can’t mandate what you’re teaching them.

Cruz is right, but that’s not all of it.  The Progressive-Democratic Party also is in the tank for the teachers unions, and homeschoolers are beyond the reach of those unions.  The Sanders-Wyden move also was in service to their unions.

In either case, or both of them, the Progressive-Democrats used children as political weapons.  That’s despicable.

Progressive-Democrats and Taxes

The Wall Street Journal asked in their Sunday op-ed how it came to be that

the party of the Kennedy tax cuts of the 1960s and the co-writers of the Reagan reform in the 1980s [became] implacably opposed to pro-growth tax policy?

The WSJ‘s editorialists should know better.  This isn’t their (or your or my) grandfather’s Democratic Party.  This is the Progressive-Democratic Party of Hillary Clinton, Barack Obama, Chuck Schumer, Elizabeth Warren, Nancy Pelosi, Steny Hoyer, and all of its rank-and-file politico members.

These politicians and their nine-year-old Progressive-Democratic Party that is the inevitable evolution of that prior entity do not want the folks who earned the money to be able to keep it and spend it IAW their own needs and wants and imperatives.  The Progressive-Democratic Party and its members need to have control over our money, and they are thoroughly dismayed over the loss to their political power that’s represented by the reduction in the amount of our money they’ll be able to control.  That’s power they’ll have much less of.

It has nothing to do with ideology.  It has nothing to do with income inequality.  It has only to do with political power.  It’s that nakedly simple.

“major distortive impact on international trade”

That’s the claim of European nations–Germany, France, Italy, Spain, and the UK—as they worry about the drop in corporate tax rates that the House and Senate bills propose.

Well, of course.  They also don’t like the highly competitive tax rates applied by Ireland and Luxembourg and routinely excoriate those nations for having the temerity of competing via tax treatment for business.  While the nations bleat about double taxation and how European businesses operating in the US would be at a tax disadvantage compared to US companies operating in the US, here’s the nub of the thing:

Even without those provisions, the reform would leave US businesses facing lower domestic-tax rates than some of their European peers, putting governments under pressure to reciprocate.

The horror.  And those nations—and the EU generally—still have not justified either their high tax rates or their high spending rates that underlie those tax rates.  The nations also have exposed their hypocrisy:

[T]he proposed “base erosion and anti-abuse tax provision” contained in the Senate bill could harm international banking and insurance businesses because it would treat cross-border financial transactions between a company and a subsidiary as nondeductible, subjecting it to a 10% tax[.]

Never mind that the EU already is attacking the international banking industry (and the insurance industry won’t be far behind) by demanding a tax on all financial transactions (currently masqueraded as a tax on investment transactions, but what else does an international bank do?), which itself can only depress international banking.  But hey, it’s a tax, so it’s all good.  Or so insist the Know Betters of EU Big Government.

The UK’s concern is especially interesting both as that nation drifts away from Thatcherism, even in its allegedly Conservative coalition and as the UK stands to make out like bandits in international trade following Brexit and the loss of EU fetters on its economy (always assuming the timid May government doesn’t surrender the farm in the face of EU intransigence).

Minimum Wage in San Francisco

City Supervisor Jane Kim, in a recent Letter to the Wall Street Journal Editor sang huzzahs for the city’s $15/hr minimum wage and touted a tax on robots that were replacing those low-skilled workers priced out of the labor market by that minimum wage.

The minimum wage isn’t a pathway to the middle class; it is a safety net to prevent destitution.

And

[A] “robot tax” is a practical way to smooth the transitions caused by automation….

She’s wrong.

I’m sure the robots and kiosks that are replacing those low-skilled workers appreciate being saved from destitution.

However, a true safety net would be a vasty reduction in San Francisco’s runaway regulatory regime and usurious tax scheme.  Then one of the most expensive cities in the nation could become affordable for the low-skilled and other poor.

Instead, the Supervisor wants to tax those robots and reduce them to similar jobless poverty.