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Is There a Doctor in the House: Biden the Bold vs. Joe the Timid Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=54251"><span class="small">Andrew Bacevich, TomDispatch</span></a>   
Wednesday, 19 May 2021 13:10

Bacevich writes: "Is President Biden afflicted with the political equivalent of a split personality?"

President Biden. (photo: Getty)
President Biden. (photo: Getty)


Is There a Doctor in the House: Biden the Bold vs. Joe the Timid

By Andrew Bacevich, TomDispatch

19 May 21

 


Andrew Bacevich’s latest book, After the Apocalypse: America’s Role in a World Transformed — a must-read, says his editor (me) — will officially be published on June 8th. Of it, Adam Hochschild writes, “In a sane country, the estimable Andrew Bacevich would be secretary of a much-shrunken Defense Department. Deepened by his sense of history, this up-to-the-minute book is his answer to the big question: why is the most powerful nation on earth so ill-prepared to deal with the world it faces?” Make sure to order it ahead of time, but for Bacevich fans, I have a special, limited offer as well. Go to the TomDispatch donation page and give a minimum of $100 ($125 if you live outside the USA) and you’ll get a signed, personalized copy of the book from him as soon as it’s available. It’s a deal of deals: you receive a genuine must-read book with the author’s signature and TomDispatch is assured of the sort of money we eternally need simply to chug on in this strange, disturbing world of ours. Tom]

“A United States Coast Guard cutter fired 30 warning shots after 13 Iranian fast patrol boats menaced a group of American Navy ships sailing in the Strait of Hormuz, the Pentagon said on Monday…” — so began a minor piece in the New York Times last week. Hmmm… Did you even know that the U.S. Coast Guard was patrolling in the Persian Gulf? Does that seem even faintly strange to you? And this isn’t the first such encounter, nor is the Persian Gulf the only place on this planet of ours where Washington all too often edges close to some kind of conflict that would hold dangers for the future of any administration, no less Joe Biden’s with its ambitious domestic plans.

Thought of another way, what a curiously stacked world the political inhabitants of Washington live in. Consider a recent report by Joe Cirincione at the Quincy Institute’s Responsible Statecraft website on a congressional hearing in which every witness seems to have urged the further funding of the endless “modernization” of the American nuclear arsenal (just to ensure that, at any moment, in any administration, we could blow this planet sky-high). As he put it, “A panel of old white men spent 90 minutes hectoring Congress to replace every weapon in the U.S. arsenal and to maintain the Cold War policies that repeatedly brought us to the brink of nuclear war.”

Sadly, we’ve been living in such a world for decades now. In fact, today, TomDispatch regular Andrew Bacevich, author of the soon-to-be-published After the Apocalypse: America’s Role in a World Transformed, reminds us of just how war, or the threat of war, has regularly challenged presidential domestic policy goals and what it might do to Joe Biden’s fondest dreams. Though it’s never thought of that way, you might even argue that Barack Obama’s domestic hopes went down in his Afghan surge (that Biden opposed), which left 100,000 U.S. troops (not to speak of scads of contractors, CIA operatives, and the like) in a country already known as the graveyard of empires.

And we’re in a world where, from the waters off Iran to those off China, cold wars could turn hot all too quickly. If only retired colonel and historian Bacevich were being called to Congress to testify on such subjects — or those who mattered in Washington were to read his new book! And yes, hope does spring eternal, doesn’t it? Tom

-Tom Engelhardt, TomDispatch



Is There a Doctor in the House?
Biden the Bold vs. Joe the Timid

s President Biden afflicted with the political equivalent of a split personality? His first several months in office suggest just that possibility. On the home front, the president’s inclination is clearly to Go Big. When it comes to America’s role in the world, however, Biden largely hews to pre-Trumpian precedent. So far at least, the administration’s overarching foreign-policy theme is Take It Slow.

“Joe Biden Is Electrifying America Like F.D.R.” So proclaimed the headline of a recent Nicholas Kristof column in the New York Times. Even allowing for a smidgen of hyperbole, the comparison is not without merit. Much like President Franklin Delano Roosevelt during his famous First Hundred Days in office in the midst of the Great Depression, Biden has launched a flurry of impressively ambitious domestic initiatives in the midst of the Great Pandemic — an American Rescue Plan, an American Jobs Plan, an American Families Plan, and most recently an environmental restoration program marketed as America the Beautiful.

Biden’s Build Back Better domestic campaign qualifies as a first cousin once removed of Roosevelt’s famed New Deal. To fix an ailing nation, FDR promoted unprecedented federal intervention in the economy combined with a willingness to spend lots of money. As then, so today, details and specifics took a back seat to action, vigorous and sustained, not sooner or later but right now.

Of course, FDR’s Hundred Days did not actually end the Great Depression, which lingered on for the remainder of the 1930s. From the outset, however, the New Deal captured imaginations, especially among progressives. It invested national politics with a sense of hope and excitement. As historians subsequently came to appreciate, the New Deal was also rife with internal contradictions. Nevertheless, in terms of both style and substance, Roosevelt became and remains the beau ideal of the activist president. As press depictions of Joe Biden as our latest FDR proliferate, one can easily imagine the president happily filling his scrapbook with newspaper clippings.

That said, any political leader who embarks on an aggressive domestic reform program has to prevent the outside world from getting in the way. Roosevelt largely succeeded in doing so through his first two terms. Activism at home did not translate into activism abroad. Eventually, however, the outbreak of war in Europe and in the Far East famously prompted FDR to retire “Dr. New Deal” and don the mantle of “Dr. Win-the-War.” In doing so, he was bowing to the inevitable. The New Deal was already running out of gas when the danger posed by a global struggle against Nazi Germany and Imperial Japan brought it to a screeching halt. FDR wisely chose to accommodate himself to that reality.

In the ultimate irony, defeating those enemies made good on various unfulfilled New Deal aspirations, restoring both American prosperity and self-confidence. Yet war inevitably imposes its own priorities and creates its own legacies. World War II did so in spades. If postwar America bore the imprint of the New Deal, it also differed substantially from what New Dealers back in the 1930s had envisioned as the purpose of their enterprise.

Not least of all, during the ensuing Cold War, standing in immediate over-armed, over-funded readiness for the next war became a permanent priority. As a consequence, domestic matters took a backseat to a fundamentally militarized conception of what keeping Americans safe and guaranteeing their freedoms required. As the self-designated guardian of the “Free World,” the United States became a garrison state.

“That Bitch of a War”

A generation later, a reform-minded president fancying himself FDR’s rightful heir faced a variant of Roosevelt’s dilemma, but demonstrated far less skill in adapting to it.

In the mid-1960s, Lyndon Baines Johnson conceived of a domestic reform plan that would, he believed, out-do the New Deal. His vision of a Great Society would guarantee “abundance and liberty for all,” while ensuring “an end to poverty and racial injustice.” And that, Johnson insisted, would be “just the beginning”:

“The Great Society is a place where every child can find knowledge to enrich his mind and to enlarge his talents. It is a place where leisure is a welcome chance to build and reflect, not a feared cause of boredom and restlessness. It is a place where the city of man serves not only the needs of the body and the demands of commerce but the desire for beauty and the hunger for community.”

Here was a promise of nothing less than a federally designed and federally funded utopia. And for a brief moment, it even seemed plausible.

Winning the presidency in his own right in 1964 — he had first gained it as vice-president when John F. Kennedy was assassinated — elevated LBJ to a position in American politics not unlike FDR’s 30 years earlier. Senator Barry Goldwater’s abysmal showing as the Republican presidential candidate that year left his party in disarray. Democrats enjoyed clear majorities in both houses of Congress. Assuming he could steer clear of complications related to the ongoing Cold War, the way seemed clear for LBJ to Go Big as a domestic reformer.

As it turned out, this was not to be. Within a year of unveiling his Great Society, Johnson made a fateful decision to escalate U.S. military involvement in an ongoing war in Vietnam. In effect, LBJ laid down a huge bet, calculating that Going Big on the home front would prove compatible with fighting a major war in Southeast Asia. He wagered that “Dr. Great Society” could simultaneously serve as “Dr. Win-the-War,” so long as that war remained manageable.

Over the course of several agonizing years, Johnson discovered that the two roles were incompatible. The conflict he came to call “that bitch of a war” doomed his Great Society, destroyed his presidency, and left a legacy of bitterness and division from which the nation has yet to fully recover. Rather than ranking alongside his hero FDR, Johnson ended up being roundly despised by conservatives and liberals alike, by those who had served in Vietnam and those who had opposed the war. In the estimation of many, “Dr. Great Society” ended up as “Dr. Callous and Cruel.”

Recall, however, that Johnson chose to go to war in Vietnam, even while persuading himself that politically he had little choice but to do so. The trivial Tonkin Gulf Incident of August 1964 did not even faintly replay Pearl Harbor, yet LBJ pretended otherwise. His misguided decision to use that pseudo-event as a pretext for armed intervention stemmed from a wildly ill-advised reading of contemporary politics. An ostensibly savvy pol, Johnson backed himself into a corner from which he could find no escape.

The imperatives of the Cold War seemingly dictated that, if the United States allowed Vietnam to “go Communist,” the sitting commander-in-chief and his party would incur unacceptable political damage. In Washington and across much of the country, the prevailing mood demanded toughness in confronting the Red Threat. Better to fight them in the jungles of Indochina than in the suburbs of San Francisco — so went the thinking at the time.

That a conflict between two recently minted Southeast Asian nations, neither of them democratic but each claiming to represent the Vietnamese people, could determine the fate of the entire Free World will strike most readers today (schooled by more recent debacles like the invasion and occupation of Iraq) as preposterous. In the mid-1960s, however, Lyndon Johnson judged the risks of saying so out loud too great for him to chance. So he sent hundreds of thousands of G.I.s off to fight an unwinnable war and put the torch to his own presidency.

Will Joe Biden Be Dr. Build Back Better?

To most Americans today the Vietnam War has become a distant memory. Let me suggest that its lessons remain notably relevant to our reform-minded administration of the present moment.

Johnson’s mistake was to defer to an entrenched but deeply defective national security paradigm when the success of his domestic reforms demanded that he reject it. President Biden should take heed. To preserve his status as the latest reincarnation of FDR, Biden will have to avoid the errors in judgment that consigned LBJ’s Great Society to history’s junkheap.

On the foreign-policy front, the Biden team can already claim some modest, if tentative achievements. President Biden has indeed preserved the New Start nuclear agreement with Russia. Unlike his predecessor, he acknowledges that climate change is an urgent threat requiring concerted action. He has signaled his interest in salvaging the Joint Comprehensive Plan of Action, more commonly known as the Iran nuclear deal. Perhaps most notably, he has ordered the complete withdrawal of U.S. forces from Afghanistan, ending the longest war in American history. Implicit in that decision is the possibility of further reductions in the U.S. military footprint across the Greater Middle East and much of Africa, all undertaken pursuant to a misguided post-9/11 Global War on Terror.

That said, so far President Biden has left essentially untouched the core assumptions that justify the vast (and vastly well funded) national security apparatus created in the wake of World War II. Central to those assumptions is the conviction that global power projection, rather than national defense per se, defines the U.S. military establishment’s core mission. Washington’s insistence on asserting global primacy (typically expressed using euphemisms like “global leadership”) finds concrete expression in a determination to remain militarily dominant everywhere.

So far at least, Biden shows no inclination to renounce, or even reassess, the practices that have evolved to pursue such global military dominion. These include Pentagon expenditures easily exceeding those of any adversary or even plausible combination of adversaries; an arms industry that corrupts American politics and openly subverts democracy; a massive, essentially unusable nuclear strike force presently undergoing a comprehensive $1.7 trillion “modernization”; a network of hundreds of bases hosting U.S. troop contingents in dozens of countries around the world; and, of course, an inclination to use force unmatched by any nation with the possible exception of Israel.

Military leaders like to say that the armed services exist to “fight and win the nation’s wars,” a misleading claim on two counts. First, based on the results achieved since 9/11, they rarely win. Second, their actual purpose is to satisfy various bureaucratic and corporate interests, not to mention ideological fantasies, all captured in the awkward but substantively accurate phrase military-industrial-congressional-think-tank complex.

Put simply, ours is a nation in which various powerful and influential institutions are deeply invested in war. If President Biden genuinely aspires to be “Dr. Build Back Better,” he would do well to contemplate the implications of that fact, lest he willy-nilly find himself sharing LBJ’s sad fate.

In Washington and various quarters of the commentariat, an eagerness to get tough with China and/or Russia and/or Iran — a veritable Axis of Evil! — is palpable. Biden ignores these tendencies at his peril. Indeed, if genuinely committed to prioritizing domestic reforms, he should actively resist those intent on diverting him onto a path pointing to military confrontation.

Jake Sullivan, Biden’s national security adviser, says that his boss has “tasked us with reimagining our national security.” Of course, reimagining presumes a high level of creativity along with an ability to cast aside obsolete habits of mind. Whether Sullivan, Secretary of State Antony Blinken, Pentagon chief General Lloyd Austin, or Biden himself possesses the requisite level of imagination remains, at best, an open question. Little in their collective backgrounds suggests that they do. In the meantime, somewhere out there in the South China Sea, the Donbas region of Ukraine, or the Persian Gulf, some variant of a Tonkin Gulf event lurks, ready to sink the administration’s domestic agenda.

If Biden wants to be “Dr. Build Back Better,” he should assume the additional role of “Dr. Curb the War Habit.” That means rejecting once and for all the illusions of military dominion to which too many in Washington still pay tribute, whether cynically or out of misguided conviction. Doing so will require not only imagination but gumption. Still, if President Biden intends to Go Big at home, he will need to Go Big in changing U.S. policies abroad as well.



Follow TomDispatch on Twitter and join us on Facebook. Check out the newest Dispatch Books, John Feffer’s new dystopian novel Frostlands (the second in the Splinterlands series), Beverly Gologorsky’s novel Every Body Has a Story, and Tom Engelhardt’s A Nation Unmade by War, as well as Alfred McCoy’s In the Shadows of the American Century: The Rise and Decline of U.S. Global Power and John Dower’s The Violent American Century: War and Terror Since World War II.

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RSN: "Vengeance Is Mine ..." Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=54565"><span class="small">Stephen Eric Bronner, Reader Supported News</span></a>   
Wednesday, 19 May 2021 11:36

Bronner writes: "Israelis and Palestinians are two nations with two cultures and two very different histories: that of the colonizer and that of the colonized."

A Palestinian mother walks through a bombed out neighborhood in Gaza. (photo: Khalil Hamra)
A Palestinian mother walks through a bombed out neighborhood in Gaza. (photo: Khalil Hamra)


"Vengeance Is Mine ..."

By Stephen Eric Bronner, Reader Supported News

19 May 21

 

ull disclosure: I was born a German-Jew, but I have never been a Zionist, nor have I shied away from criticizing Israeli policies. I feel the deepest sorrow for the Palestinian people, but I am also sharply critical of their leadership and its political choices. Forty thousand Palestinians have just turned into “internally displaced persons” (IDPs) in their own land, and Israeli settlements have invaded their territory, but I do not view a one-state solution as realistic. Fashionable talk about its being the “only” solution seems to always avoid specifying the institutions it will require, plausible policies focusing on complex problems like “the right of return,” and ideas for dealing with majorities on both sides who understandably distrust each other and harbor deep historical resentments. That is why formal negotiations must take place between organizations of civil society in Israel and Palestine, perhaps using the Geneva Initiative of 2003 as a model, if only so that politicians on both sides can see what the people really want.

Israelis and Palestinians are two nations with two cultures and two very different histories: that of the colonizer and that of the colonized. In a world averse to explaining the logic of events, the great Tunisian-Jewish thinker Albert Memmi has much to teach. His use of the “Nero complex” explains how colonizers take over a land, proud of exporting the benefits of civilization, while the colonized resist such beneficence. In quelling the resistance, however, the “civilized” colonizer feels an unconscious guilt as well as resentment against the ingratitude of the colonized. The “necessity” of violence tempers the guilt. With each uprising, therefore, the colonizer’s repression will intensify, leading to more intense resistance by the colonized – and so on.

That is what we see in the Israeli-Palestinian conflict. Pogroms and concentration camps from the Jewish past, as Karl Marx would have put it, “weigh like nightmares on the brains of the living.” They feel themselves victims, and enough Israelis are still amazed at the Palestinians’ refusal to acknowledge the modern advances that Jewish settlers brought to supposedly nomadic tribes. So, the old Zionist slogan: “a land without a people for a people without a land.” The mixture of guilt and resentment expresses itself in the blending of Israel’s occasional humanitarian actions with the inhuman brutality of its military attacks. In any event, through this cycle of violence, which is buttressed by $4 billion in yearly aid from the United States, Israel has turned into the hegemonic power in the region. Its participation in the Nero complex, however, has completely destroyed its moral capital. No longer is it the band of heroes memorialized in tendentious works like Leon Uris’s novel Exodus, and its film application. Just as Israel possesses overwhelming military power, while ostracized by the world community, Palestinian sovereignty has been recognized diplomatically, even while its people have been reduced to supplicants.

In keeping with this contradictory situation, Palestinian policy has recently assumed that pressure by the world community would somehow change the outlook of Israeli politicians. But this mistaken view ignores Israel’s self-perceptions as the historical victim of global indifference and anti-Semitism. Meanwhile, President Donald Trump’s “Abraham Accords” mistakenly assumed that the Palestinians were no longer relevant and that they had given up the cause. Yet, conflicts don’t simply fade away. Trump’s overwhelmingly pro-Israel policy and his blindness toward the Palestinians’ plight while negotiating with other Arab states showed a remarkable lack of intelligence and foresight.

That the Arab world has become sick of the Palestinian struggle and its cynically incompetent leadership was already clear to me in 2007 when, while engaging in civic diplomacy in Sudan and Darfur with Conscience International, two ranking Sudanese politicians asked what I thought about their country (then under Sharia law) improving its ties with Israel. Their frustration with Palestinian politics was obvious, and I don’t believe that was an anomaly. Under pressure from below in the face of the Israeli war machine, however, Arab states must show their public support for the Palestinian rebellion. Nevertheless, what this means in terms of their long-term foreign policy interests is unclear, and whether their outrage will remain six months from now is highly doubtful – at least to me.

Shattering the impact of ideology means beginning from the bottom up rather than the top down. Like some schoolyard brawl, only with more drastic consequences, it doesn’t matter who started the fight. What does matter is that provocation from one side draws in the other. Hamas has now fired 3,000 missiles, mostly supplied by Iran, almost all of which are intercepted by an “iron dome” anti-missile system supplied by the United States. Meanwhile, Israeli missiles destroy the dense cities of Gaza. The radical imbalance of destruction and death heightens unity among Israelis at home and sympathy for Palestinians abroad.

Negotiations between the United States and Iran that focus solely on the Israeli-Palestinian conflict are obviously necessary. Calling for this, however, does not sell newspapers or lift ratings. The mainstream media always insist that this rebellion will prove decisive, that this one is different. Of course it never is, but the audience forgets. Uprising after uprising, intifada after intifada, has produced roughly the same disparate result: hundreds of Palestinians and about a dozen Israelis killed, Israeli cities threatened, its borderline settlements bombed, while large-scale buildings and Palestinian infrastructure are wrecked, later to be rebuilt, before they are wrecked again. Seven hundred Gazan buildings have been destroyed or damaged while up to 800,000 Palestinians might well lack drinking water due to an Israeli bombing of a desalination plant. This time the battle between Arabs and Jews has struck Israeli cities like Lod and Haifa, which were once considered happily integrated. A third intifada is in the making, but the end result will undoubtedly prove the same: unequal costs paid by innocent Palestinians, reaffirmation of imbalances of power that favor Israel, and legitimation of perhaps the most short-sighted, self-serving, and corrupt political leadership in the global community.

Einstein was surely right when he noted that insanity comes down to doing the same thing over and over while expecting a different result. Prime Minister Binyamin Netanyahu is desperate to win yet another election, if only to avoid jail-time for bribery and other crimes, in a deeply fractured country. It is meanwhile common knowledge that Khaled Meshal and Hamas along with their rivals, Mahmoud Abbas and the Palestinian Authority, are robbing their people blind. Still, it’s a basic rule of politics that the nation rallies around its leaders in a time of war.

If the violence continues, domestic disagreements will probably make way for “Jewish” unity against the nation’s Arab citizens and the Palestinians. As for Meshal and Abbas, however, unity between their organizations seems much more elusive: each would need to compromise his power, and both have seemingly been in power forever. Hamas enjoys the spotlight while leading the fight – whatever the collateral damage to its own people – and who cares if it takes the opportunity to crack down on dissidents. The activism of Hamas stands in contrast to the paralysis displayed by the Palestinian Authority, which can neither negotiate, since it does not speak for its rival in Gaza, nor fight since it has been given administrative authority and receives financial support from Israel.

Palestine is now comprised of two competing sovereigns: one in the West Bank and the other in Gaza. Simmering conflict between them has created a situation in which, even if Israel were willing to deal, neither competing sovereign actually represents the Palestinian nation and neither is in the position to pursue serious negotiations – which, again, is why representatives of civil society, across borders, need to have their voices heard.

Crisis and violence enable Hamas to avoid recognizing the state of Israel and tempering its anti-Semitic propaganda and charter even while appearing flexible. As far as Israel is concerned, meanwhile, Netanyahu is solidifying his far-right credentials by appearing as a tough-guy who won’t relent on what has become merciless bombing. He needs those far-right parties in the short run, if he is to form a government. In the long run, however, contradictions fester between center-left mainstream parties and an intransigent minority composed of settler fanatics and orthodox extremists. The need for an alternative voice, the voice of civil society, has never been more pressing.

Starting small on negotiations before tackling serious issues has proven a disaster. Civil war remains a real possibility on both sides of the barricades. Talks on yet another “cease-fire” are underway. But they will need to deal with events that have served no purpose other than to breed paranoia concerning “security” – and justify stockpiling new missiles. The prospects for a lasting peace are dim. Yet another circle of senseless violence awaits Israel and Palestine. That is because leaders don’t lead in this conflict, and they take the easy way out. They don’t consult civil society, which remains mute on its demands beyond ending hostilities. Activists must find ways for their voices to be heard. The status quo is untenable yet desirable for politicians on both sides. A temporary truce presupposes an ongoing conflict. The world cannot afford yet another crisis of the same sort, and neither can the innocent citizens of Israel and Palestine.


Stephen Eric Bronner is Board of Governors Distinguished Professor Emeritus at Rutgers University and Co-Director of the International Council for Diplomacy and Dialogue. His most recent book is The Sovereign.

Reader Supported News is the Publication of Origin for this work. Permission to republish is freely granted with credit and a link back to Reader Supported News.

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Seriously, Just Tax the Rich Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=54074"><span class="small">Emily Stewart, Vox</span></a>   
Wednesday, 19 May 2021 08:34

Stewart writes: "What the debate about paying for infrastructure misses."

A mobile billboard calling for higher taxes on the ultra-wealthy, to mark Tax Day, parked near the US Capitol on May 17. (photo: Drew Angerer/Getty Images)
A mobile billboard calling for higher taxes on the ultra-wealthy, to mark Tax Day, parked near the US Capitol on May 17. (photo: Drew Angerer/Getty Images)


Seriously, Just Tax the Rich

By Emily Stewart, Vox

19 May 21


What the debate about paying for infrastructure misses.

hether the government should tax rich people more to pay for spending priorities is a source of endless debate. Here’s another idea: Tax the rich because it’s the right thing to do.

Most recently, this debate has popped up around President Joe Biden’s aspirations to invest in infrastructure, jobs, child care, and other items. The White House and many Democrats in Congress are wondering how (and whether) to pay for it. Some are pushing to increase taxes on the wealthy and corporations, arguing that they at least need to raise some revenue if they want to send so much money out the door.

Others in the more progressive vein, however, question whether Democrats need to bother to come up with “pay-fors” at all. After all, Republicans didn’t worry much about the deficit when they passed a $1.5 trillion tax cut back in 2017. Plus, they note, concerns about the debt can be widely overblown; interest rates are low and may be for a while, so if there’s a moment to take on debt, it’s now. It’s a politically useful stance because some moderate Democrats are reportedly nervous about the idea of raising taxes.

Sometimes, the haggling and hemming and hawing over what to do about the debt overshadow a point that many Americans find obvious: It’s simply a good, fair idea to tax the wealthy. They have disproportionately reaped the benefits of economic growth and the stock market in recent years, contributing to increasing inequality in the United States. The divide has become even more obvious during the Covid-19 pandemic, during which billionaires have managed to add heaps of dollars to their wealth even as millions of people were knocked on their heels. Some ultra-rich people in the US keep getting richer no matter how much of their money they give away. They literally cannot stop adding to their coffers.

“The market has produced an increasingly unequal distribution of income, and tax policy — and spending as well — are the way that we use government policy to push back and restrain those market-driven increases in inequality,” said David Wessel, a senior fellow in economic studies at the Brookings Institution and the director of the Hutchins Center on Fiscal and Monetary Policy. “The fact is that the market forces producing more inequality seem to be growing, and the government’s willingness to use its power to push against that seems to be waning.”

The chips of the economy are stacked in rich people’s favor, and they’re getting handed more chips constantly. So why not take a few chips away?

The wealthy are grabbing a big share of prosperity. The government can grab it back.

Rich people have done very well in the economy in recent decades. According to the Congressional Budget Office, the share of before-tax income captured by the richest 20 percent of households increased from 46 percent in 1979 to 54 percent in 2016. For the top 1 percent, income share went from 9 percent to 16 percent — more than the entire income brought in by the bottom 40 percent of households. The 2017 tax cut bill disproportionately benefited rich people and corporations. During the pandemic, many high-income Americans say that their financial situation has improved over the past year. They saved money they would have ordinarily spent on vacations and going out to eat, and as the stock market soared, so did their net worth.

The wealthy are simply the group best able to afford to pay higher taxes. (Though to be sure, most people define the wealthy as “people who make more than me.”)

“We ought to start with the people who have benefited the most over the last couple of decades,” Wessel said.

The US tax code is already somewhat progressive, though several other rich countries have significantly higher top income tax rates, and the top income tax rate in the US used to be much higher, too. According to a recent report from the Joint Committee on Taxation, people making more than $1 million in 2018 paid an average tax rate of 31.5 percent, and those making upward of $500,000 paid an average rate of 28.9 percent, combining income, payroll, excise, and corporate taxes. Still, there are plenty of ways that the wealthy use the tax code to their advantage — an advantage the White House is seeking to cut off.

As it stands currently, long-term capital gains on investments such as stocks are taxed at a lower rate than income. In other words, if you make money off of the sale of a stock you’ve had for a while, it’s taxed at a lower rate than if you’d made the same amount of money through working. The Biden administration is eyeing overhauling the capital gains rate for people making $1 million or more, so that those gains would be taxed at the highest individual rate, which the president’s tax plan would put at 39.6 percent. (The 2017 tax bill lowered the highest rate to 37 percent). The White House is also pushing Congress to close the carried interest loophole that lets private equity and hedge fund managers have their gains taxed at a lower rate.

Democrats are also looking at changing how inherited wealth is taxed, including the “stepped-up basis” tax code provision. As it stands, if a rich person sees their wealth go up by $1 billion in, for example, stock, when they sell that investment, they’ll be taxed on their $1 billion gain. But if they never sell and the investment gets passed to their heirs when they die, their heirs are taxed at the baseline of what it’s worth when they get it. If and when they sell, they’re only taxed on new gains.

“We don’t collect as much as we ought to from rich guys because they could hold their stock until death, and then their heirs get a stepped-up basis, and all the gains, all the appreciation over their lifetimes, is simply income taxes avoided,” said Steve Rosenthal, a senior fellow at the Urban Institute’s Tax Policy Center.

Biden has also proposed trying to raise taxes on the wealthy without really touching the tax code and just trying to more fully collect what they already owe. He wants Congress to direct some $80 billion to the IRS over the next decade to try to beef up enforcement and close the “tax gap” — the difference between what the IRS gets in taxes versus what it is owed. IRS chief Charles Rettig has estimated that it could amount to $1 trillion every year.

A 2019 paper from Natasha Sarin, now deputy assistant secretary at the Treasury Department, and economist Larry Summers estimated that the tax gap would total $7.5 trillion from 2020 to 2029, with most benefits going to the wealthy. (Official IRS estimates from 2011 to 2013 put the tax gap at about $441 billion each year.)

In March this year, the Washington Center for Equitable Growth published a paper on tax evasion that estimated the top 1 percent of earners underreport about one-fifth of their income. The research suggested that collecting all unpaid federal income tax from the richest Americans would increase revenues by $175 billion each year. However, tax enforcement is difficult and takes a long time. (Remember Donald Trump’s taxes and endless audits?) IRS agents with the adequate experience and know-how to deal with complex audits can take years to train and replace. And even once the IRS is staffed up, it’s unlikely it will be able to capture all the money that’s owed.

Rosenthal has expressed concerns about the estimates from the Washington Center for Equitable Growth paper and says he believes the answer is to beef up the tax code with simpler laws that require additional reporting. It is true that the IRS could collect more in taxes, but rich people are pretty good at avoiding that. He prefers to raise taxes on corporations — Biden has proposed increasing the corporate tax rate from 21 percent to 28 percent — as a way to tax the rich. Wealthy people and foreigners disproportionately own stocks and benefit from slashes to the corporate tax rate.

“When we increase taxes on corporations, which falls on shareholders, it falls on those who have already benefited from Trump’s tax cuts and who have overwhelmingly benefited from the run-up in the stock market,” Rosenthal said.

Beyond what’s on the White House’s agenda, there is a plethora of proposals for taxing the wealthy. Sen. Elizabeth Warren (D-MA) ran on a wealth tax, which would tax the fortunes of the super-rich, though Biden has not embraced it. Senate Budget Committee Chair Bernie Sanders (I-VT) recently rolled out his own proposal to tax corporations and the rich as well.

One challenge to making any changes to the tax law is making sure they are robust enough that people don’t just find a way to avoid them. “If you spend a lot of political capital on taxing the rich and you spend a lot of time setting up something … and then you discover the people you want to tax are extremely good at finding ways not to pay the tax, then have you really accomplished anything?” Wessel said.

Some Republicans and business leaders fear that if the US taxes rich people and companies too much, it will make the country less competitive, or the wealthy will flee. Democrats pushing to get rid of the cap on the state and local tax deduction — which generally impacts well-off people in blue states — argue that the cap will encourage wealthy people to go to lower-tax states. But there’s not a lot of evidence of millionaire migration from blue states to red states over the tax code. And many rich people and corporations prefer to live and do business in the US, even if it means a slightly higher tax liability.

“The Republicans think every time you tax someone who’s rich ... somehow, they’ll work less hard, invest less, and we’ll all suffer. And Democrats say that’s simply not true,” Wessel said. “I think the evidence is on the Democrats’ side, as long as you don’t overdo it.”

Taxing the rich makes the economy feel fairer

Lots of people right now say the economy seems unfair. It feels like the system is rigged in favor of the people who need help the least. And that makes many people lose faith in the economy — it’s easier to believe in America when you feel like America isn’t stacked for winners.

That’s part of why taxing rich people and corporations is so popular. Like, really, really popular. Eight in 10 Americans say they are bothered by some corporations and the wealthy not paying their fair share in taxes, according to Pew Research Center. A recent Morning Consult/Politico poll found that paying for infrastructure by increasing taxes on those groups made Biden’s infrastructure plan more popular, not less.

Taxing rich people can’t pay for everything Democrats would perhaps like to, but for many progressives, that’s beside the point.

“We do not have to tax to have nice things, we tax for predistribution and redistribution. In order to have nice things, we print money and we invest in the things that we need,” said Solana Rice, co-founder and co-executive director of Liberation in a Generation, which pushes for economic policies that reduce racial disparities. “We almost couldn’t tax enough to really pay for all the things that we need, so it’s a ruse.”

With money comes power, and taxing those who can afford it more fairly could result in a more even distribution of that. “When you have such a massive concentration of wealth in the hands of so few, that ultimately leads to a greater concentration of power in the hands of so few,” said Dana Bye, campaign director of the Tax March, a progressive tax group. Overhauling the tax code won’t fix all of the country’s issues, but it might not hurt, either, and could address some egregious imbalances. Billionaire investor Warren Buffett claimed to pay a lower tax rate than his secretary for years; former President Donald Trump bragged about his low tax liability.

What happens to revenue from potential tax increases matters — if Democrats want to tax the wealthy in order to help people at the bottom of the income spectrum or pay for infrastructure, it is important that they’re deliberate about that. And raising taxes is never easy: There are plenty of constituents, from business groups to lobbyists to voters, who push back.

“That’s why Congress has been doing all of these deficit spending bills,” Rosenthal said. “It’s hard to get anyone to agree on taxes.”

But just because it is hard to tax rich people doesn’t mean Democrats shouldn’t do it. Biden has promised to go big and bold on the economy and push the country in a more progressive, broadly beneficial direction. This is a way to help him get there.

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The Secret Tax Loophole Making the Rich Even Richer Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=51635"><span class="small">Robert Reich, Robert Reich's Blog</span></a>   
Tuesday, 18 May 2021 12:35

Reich writes: "How do we prevent America from becoming an aristocracy, while also funding the programs that Americans desperately need?"

Former Clinton labor secretary Robert Reich. (photo: Steve Russell/Toronto Star)
Former Clinton labor secretary Robert Reich. (photo: Steve Russell/Toronto Star)


The Secret Tax Loophole Making the Rich Even Richer

By Robert Reich, Robert Reich's Blog

18 May 21

 

ow do we prevent America from becoming an aristocracy, while also funding the programs that Americans desperately need?

One way is to get rid of a tax loophole you’ve probably never heard of. It’s known as the “stepped-up basis" rule.

Here’s how the stepped-up-basis loophole now works. Take a man named Jeff. At his death, Jeff owns $30 million-worth of stocks he originally bought for a total of $10 million. Under existing law, neither Jeff nor his heirs would owe federal tax on the $20 million of gains because they’re automatically “stepped up” to their value when he dies — $30 million.

Under Biden’s proposal, Jeff’s $20 million of gains would be taxed. And don’t worry: Biden’s proposal doesn’t touch tax-favored retirement accounts, such as 401-Ks, and it only applies to the very richest Americans.

As it is now, the stepped-up basis loophole enables the super-rich, like Jeff, to avoid paying more than $40 billion in taxes each year. It has allowed them to skip taxes on the increased values of mansions and artworks as well as shares of stock.

In fact, it’s one of the chief means by which dynastic wealth has grown and been passed from generation to generation, enabling subsequent generations to live off that growing wealth and never pay a dime of taxes on it.

Unless the stepped-up basis loophole is closed, we will soon have a large class of hugely rich people who have never worked a day in their lives.

Over the next decades, rich baby boomers will pass on an estimated $58 trillion of wealth to their millennial children — the largest intergenerational transfer of wealth in history.

Closing this giant tax loophole for the super-rich is how Biden intends to fund part of his American Families Plan, which would provide every child with 2 years of pre-school and every student with 2 years of free community college, as well as provide paid family and medical leave to every worker.

Close this stepped-up basis loophole, and we help finance the programs the vast majority of Americans desperately need and deserve. We also end the explosion of dynastic wealth. It should be a no-brainer.

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How Dems Can Force Manchin and Sinema to Put Up or Shut Up Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=59471"><span class="small">Max Burns, The Daily Beast</span></a>   
Tuesday, 18 May 2021 12:35

Burns writes: "Senator Kyrsten Sinema is confused. At a private caucus meeting last week, she pointedly asked Senate Majority Leader Chuck Schumer why Democrats can't overcome Republican opposition to the major ethics and voting rights reforms that Joe Biden promised voters, and that over 60 percent of Americans across party lines support."

Senators Kyrsten Sinema and Joe Manchin. (photo: Getty Images)
Senators Kyrsten Sinema and Joe Manchin. (photo: Getty Images)


How Dems Can Force Manchin and Sinema to Put Up or Shut Up

By Max Burns, The Daily Beast

18 May 21


opener If those two really think bipartisan compromise remains possible, all they need to do is bring 10 Republican senators with them. If not, it’s time to take down the filibuster.

enator Kyrsten Sinema is confused. At a private caucus meeting last week, she pointedly asked Senate Majority Leader Chuck Schumer why Democrats can’t overcome Republican opposition to the major ethics and voting rights reforms that Joe Biden promised voters, and that over 60 percent of Americans across party lines support. But Sinema wasn’t talking about the For the People Act that Schumer hopes to squeak through. She was referring to her own competing legislation.

Not to be outdone, last week Senator Joe Manchin announced his own plan to address the GOP’s nationwide war on voting rights, a not-so-subtle way of saying he won’t be signing on to Schumer’s consensus bill, either.

If Sinema and Manchin breaking ranks didn’t complicate matters enough, neither is willing to end or even modify the filibuster to get voting rights passed. Instead, they’re telling Democrats—and the millions of Americans at risk of losing their votes in 2022 and beyond—to trust in the myth of Senate bipartisanship. So Schumer should issue an ultimatum: find 10 Republicans to pass your bill or Democrats are taking down the filibuster.

Without any modifications to the filibuster, Manchin and Sinema will need to come up with 10 Republican senators willing to oppose the GOP’s sweeping attempts to gut the right to vote. Good luck—almost 90 percent of all voting-related legislation in the states this year has come from Republican lawmakers.

Spoiler alert: Those bills aren’t about helping voters, but stopping them. In Georgia, Republicans remain so traumatized by Biden’s upset victory that they’re now considering targeting the same suburbs that once elected Newt Gingrich with a new round of Trump-inspired voter suppression laws.

Voter suppression is one of the few unifying ideas left in a Republican Party hollowed out and pillaged by Trumpism. Manchin has as much chance at persuading them to undermine their own electoral fortunes as he does at convincing Elizabeth Warren to pass a tax cut for Big Tech.

Manchin made media hay of a joint statement calling for the reauthorization of the Voting Rights Act that he authored with GOP Senator Lisa Murkowski, but Murkowski has pointedly not signed on to any of the voting rights bills before the Senate. And even if she did, Senate Republicans have abandoned Murkowski for her insufficient loyalty to Donald Trump.

“Inaction is not an option,” Manchin and Murkowski wrote. “Congress must come together—just as we have done time and again—to reaffirm our longstanding bipartisan commitment to free, accessible, and secure elections for all.”

Left unsaid in that soaring rhetoric is the fact that the Senate that voted 77-19 to pass the Voting Rights Act of 1965 was not in thrall to a far right as dominant as today’s MAGA movement. Manchin doesn’t seem to notice or care that the broad bipartisan coalition of Rockefeller Republicans and progressive Democrats who passed the original VRA hasn’t existed for over 40 years. Those critical liberal Republicans, now entirely extinct, didn’t even survive the GOP’s rightward lurch at the end of the 1970s.

For his part, Biden seems committed to fostering some kind of progress on voting rights. The president has lavished attention on both Manchin and Sinema, despite or because of their resistance to both his infrastructure plan and other Democrats’ dream of ending the filibuster. He doesn’t have much of a choice. Biden has excoriated Republican voter suppression efforts in Georgia, calling them “Jim Crow in the 21st century” and arguing that “we have a moral and constitutional obligation to act.”

Biden is acutely aware that Black voters—more than any other single group—are responsible for installing him in the White House. He also knows that as Manchin and Sinema go speed-dating for GOP votes, Republicans in the states are busy chipping away at what few voter protections remain.

When Sinema and Manchin fail to deliver on their big talk about the power of bipartisanship, Schumer and Senate Democrats must be prepared to force a serious effort to kill the filibuster. Without it, GOP efforts to undermine the vote in 2022 and 2024 will proceed with impunity, undermining the marginalized communities that delivered a Democratic Senate and White House on the explicit promise that they would be protected from Republican reprisals.

Those reprisals are now here, and Senate Democrats are nowhere to be found.

Earlier this month Florida Governor and rumored 2024 presidential candidate Ron DeSantis signed a sweeping voter suppression law restricting the use of vote-by-mail and ballot drop boxes, both of which helped Black Democrats in Georgia overcome intentionally long lines and shuttered polling places in 2020. DeSantis made sure his supporters saw his attack on voting rights by arranging to sign the legislation live on Fox & Friends, a right-wing morning show that now explicitly serves as the GOP press office. And that was just one of the nearly 3,000 draconian voter suppression bills introduced this year.

Every day of inaction to protect voting rights is another day for Republican operatives in Congress and in the states to purge voter lists, as Mississippi is doing, or enact tough new voter ID requirements while closing DMVs, as North Carolina Republicans did. Voters can’t afford to wait while Manchin talks up his role as the Great Compromiser—without ever striking a compromise in Democrats’ favor.

The activist base of the Democratic Party has reached its boiling point with Sinema and Manchin’s empty promises that bipartisan victories are just around the corner. If moderate Democratic senators can create a viable voting rights plan with Republican buy-in, it will deserve high praise for achieving the impossible.

But if they fail, Schumer and Biden must be prepared to take all steps necessary to ensure the right to vote is protected from unprecedented Trumpist attacks. At least Sinema and Manchin can say they tried.

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