Romney's plan only works if you assume he has a different plan or use a magic growth asterisk
Paul Ryan finally had enough time to go through the math of the Romney tax plan during the vice-presidential debate. He didn't use it. Ryan filibustered instead. About the most specific he got was citing "six studies" he said vindicate the plan's mathematical plausibility.
Except they don't.
Romney's tax plan is a three-legged stool that doesn't stand. Here's how it works -- or doesn't. Romney wants to 1) cut tax rates across the board by 20 percent, 2) cut tax expenditures to pay for these tax cuts, and 3) maintain progressivity. The problem, as the Tax Policy Center pointed out, is there aren't enough tax expenditures for the rich to pay for all the tax cuts for the rich. Romney's plan only works if he cuts out the tax cuts for the rich, raises taxes on the middle class, or explodes the deficit. In other words, Romney can pick two, and only two, of his tax goals -- what Matt Yglesias of Slate calls the "Romney Trilemma".
That sound you hear is the three-legged stool falling down.
All this hasn't stopped a fight against the tyranny of arithmetic. The defenses of the Romney tax plan generally fall into three broad categories. The first assumes the plan will set off magic growth of the monster variety; the second assumes Romney defines "middle-class" differently than he does; and the third assumes Romney would eliminate tax expenditures he has indicated he would not eliminate. Let's briefly consider the six such "studies" that Ryan cited -- most are actually blog posts -- in turn.
1. Harvey Rosen paper. Rosen, a professor at Princeton, assumed Romney's lower tax rates would kickstart enough growth to pay for the revenue hole those lower tax rates would create. This seems dubious. Alan Viard and Alex Brill of the conservative American Enterprise Institute (AEI) have argued that it seems unlikely revenue neutral tax reform would have big growth effects -- incentives don't change much if taxes don't even if tax rates do. And besides, the Tax Policy Center used aggressive growth estimates from Romney adviser Greg Mankiw's work to test Romney's plan. It still didn't add up.
2. Marty Feldstein Wall Street Journal op-ed. Former Reagan adviser and current Harvard professor Feldstein argued Romney's plan works if you assume growth would be much stronger and if you define middle class as households making less than $100,000 rather than households making less than $200,000. This latter figure is the one Romney has used when he has said his plan would not raise taxes on the middle class.
3. Marty Feldstein blog post. Feldstein was less aggressive with his growth estimates this time, but he stuck with his definition of middle class as households making less than $100,000. He also assumed Romney might cut tax preferences for employer health-insurance, make municipal bond interest taxable, and eliminate the child tax credit for households making more than $100,000.
4. Matt Jensen blog post at AEI. He argued Romney might cut tax preferences for municipal bonds and life insurance buildups. But this might go against Romney's promise not to cut tax preferences for savings and investment -- and would only pay for half of Romney's revenue hole, according to the Tax Policy Center.
5. Curtis Dubay blog post at Heritage. He argued Romney might cut tax preferences for municipal bonds and life insurance buildups -- yes, again -- and that Romney might tax inheritances on a "carryover basis" after eliminating the estate tax. In plain English, heirs would have to pay capital gains for the price an asset was bought for, rather than the price it was inherited at. But as Suzy Khimm of the Washington Post notes, Dubay overestimates how much revenue this change -- which, remember, is just a guess about what Romney would do -- would generate.
In other words, Romney's plan only works if you assume he has a different plan or use a magic growth asterisk. And that means we have no idea what he would do if he wins. Does he care more about his tax rate cuts, about not hiking taxes on the middle class, or not increasing the deficit? His adviser Kevin Hassett suggested they would back off the high-end tax rate cuts if it would increase the deficit, but Romney quickly denied that. He's also denied reality, by relying on studies that only prove his critics' point.
The Fox host’s insistence that black laborers building the White House were “well-fed and had decent lodgings” fits in a long history of insisting the “peculiar institution” wasn’t so bad.
In her widely lauded speech at the Democratic National Convention on Monday, Michelle Obama reflected on the remarkable fact of her African American family living in the executive mansion. “I wake up every morning in a house that was built by slaves. And I watch my daughters, two beautiful, intelligent, black young women, playing with their dogs on the White House lawn,” she said.
On Tuesday, Fox News host Bill O’Reilly discussed the moment in his Tip of the Day. In a moment first noticed by the liberal press-tracking group Media Matters, O’Reilly said this:
As we mentioned, Talking Points Memo, Michelle Obama referenced slaves building the White House in referring to the evolution of America in a positive way. It was a positive comment. The history behind her remark is fascinating. George Washington selected the site in 1791, and as president laid the cornerstone in 1792. Washington was then running the country out of Philadelphia.
Slaves did participate in the construction of the White House. Records show about 400 payments made to slave masters between 1795 and 1801. In addition, free blacks, whites, and immigrants also worked on the massive building. There were no illegal immigrants at that time. If you could make it here, you could stay here.
In 1800, President John Adams took up residence in what was then called the Executive Mansion. It was only later on they named it the White House. But Adams was in there with Abigail, and they were still hammering nails, the construction was still going on.
Slaves that worked there were well-fed and had decent lodgings provided by the government, which stopped hiring slave labor in 1802. However, the feds did not forbid subcontractors from using slave labor. So, Michelle Obama is essentially correct in citing slaves as builders of the White House, but there were others working as well. Got it all? There will be a quiz.
Does the Democratic Party—open to all immigrants, races, genders, and sexual orientations—have enough room for less educated white voters?
The evocative sound of barriers falling was the signal note during the Democratic National Convention’s first two nights.
First Lady Michelle Obama’s riveting Monday-night speech condensed the centuries of racial pain and progress bound up in her husband’s two victories into a single indelible phrase: “I wake up every morning in a house that was built by slaves.” One night later, Hillary Clinton shattered another ceiling when she became the first major-party female presidential nominee.
The delegates have displayed understandable pride in these twin social milestones. But there is also an undercurrent of concern that something old is being lost in this celebration of the new. The fear among some is that this polychromatic Democratic Party, open to all races, both genders, all sexual orientations, welcoming to immigrants, and championing diversity, may not have preserved enough room for the working-class white voters who anchored the party from Andrew Jackson through Lyndon Johnson.
Psychologists have long debated how flexible someone’s “true” self is.
Almost everyone has something they want to change about their personality. In 2014, a study that traced people’s goals for personality change found that the vast majority of its subjects wanted to be more extraverted, agreeable, emotionally stable, and open to new experiences. A whopping 97 percent said they wished they were more conscientious.
These desires appeared to be rooted in dissatisfaction. People wanted to become more extraverted if they weren’t happy with their sex lives, hobbies, or friendships. They wanted to become more conscientious if they were displeased with their finances or schoolwork. The findings reflect the social psychologist Roy Baumeister’s notion of “crystallization of discontent”: Once people begin to recognize larger patterns of shortcomings in their lives, he contends, they may reshuffle their core values and priorities to justify improving things.
The Republican presidential nominee appeared to suggest he’d recognize Russia’s annexation of the Ukrainian territory in 2014.
Donald Trump’s call on Russia to hack Hillary Clinton’s emails Wednesday resulted in widespread criticism. But his comments on Crimea, coupled with ones he made last week on NATO, are likely to have greater significance if he is elected president in November.
The question came from Mareike Aden, a German reporter, who asked him whether a President Trump would recognize Crimea as Russian and lift sanctions on Moscow imposed after its 2014 annexation of the Ukrainian territory. The candidate’s reply: “Yes. We would be looking at that.”
That response is likely to spread much cheer through Russia—already buoyant about the prospect of a Trump victory in November. But it could spread at least an equal amount of dread in the former Soviet republics. In a matter of two weeks, the man who could become the next American president has not only questioned the utility of NATO, thereby repudiating the post-World War II security consensus, he also has seemingly removed whatever fig leaf of protection from Russia the U.S. offered the post-Soviet republics and Moscow’s former allies in the Eastern bloc.
The billionaire former New York mayor denounced the Republican nominee as a “dangerous demagogue” and a “risky, reckless, and radical choice.”
Michael Bloomberg, a brand-name billionaire far wealthier than Donald Trump, a famously independent voter who derides both the Democratic and Republican parties, endorsed Hillary Clinton on Wednesday and called Trump a “risky, radical and reckless choice” for president.
“Let’s elect a sane, competent person,” he said.
The normally soft-spoken owner of Bloomberg financial-news service excoriated his fellow New Yorker, labeling him a “dangerous demagogue,” a hypocrite, a con, and—slashing at the core of Trump’s self-worth—a horrible businessman.
“Throughout his career,” Bloomberg said in his prime-time address. “Trump has left behind a well-documented record of bankruptcies and thousands of lawsuits and angry shareholders and contractors who feel cheated and disillusioned customers who feel ripped off. Trump says he wants to run the nation like he’s run his business. God help us!”
Biology textbooks tell us that lichens are alliances between two organisms—a fungus and an alga. They are wrong.
In 1995, if you had told Toby Spribille that he’d eventually overthrow a scientific idea that’s been the stuff of textbooks for 150 years, he would have laughed at you. Back then, his life seemed constrained to a very different path. He was raised in a Montana trailer park, and home-schooled by what he now describes as a “fundamentalist cult.” At a young age, he fell in love with science, but had no way of feeding that love. He longed to break away from his roots and get a proper education.
At 19, he got a job at a local forestry service. Within a few years, he had earned enough to leave home. His meager savings and non-existent grades meant that no American university would take him, so Spribille looked to Europe.
The Green Party candidate wants disillusioned Bernie Sanders supporters to join her—not Hillary Clinton.
PHILADELPHIA—Jill Stein takes public transportation to the Democratic National Convention. On the day after Hillary Clinton made history as the first woman to win a major party presidential nomination, the Green Party presidential candidate is on the subway en route to the Wells Fargo Center. Adoring fans spot her on the way over and demand selfies. A heavily tattooed woman complains to Stein: “It’s been a Hillary party the whole time. It’s like brainwash, like waterboarding. It’s awful.”
Stein is in high demand. The populist progressive tells me that after Bernie Sanders endorsed Clinton two weeks ago, effectively ending his insurgent campaign for president, a lot more people started paying attention to her campaign. “The floodgates opened,” Stein says. “I almost feel like a social-worker, being out there talking to the Bernie supporters. They are broken-hearted. They feel really abused, and misled, largely by the Democratic Party.”
His first Q&A on the site seemed free-wheeling and open to all, but it was actually obsessively controlled.
Cruising the skies above Ohio (and perhaps looking to take more attention away from the Democratic National Convention), Donald Trump tried a new publicity tactic Wednesday night. Instead of his typical podium-and-flag setup, he opened his MacBook and invited users of Reddit to ask him anything.
AMAs—that’s the popular abbreviation—are a staple of the free-wheeling forum site, which has hosted hundreds of celebrities and slightly less famous people who are willing put out a shingle and take questions from strangers on the internet. Reddit—part old-school forum, part meme-machine, part possible-future-of-human-society—prides itself on its community, which moderates itself and (in theory) highlights the best the internet has to offer. Barack Obama hosted his own AMA back in 2012; so have Bill Gates, Patrick Stewart, and a guy who fought off a bear.
With six adults per apartment, a new approach to building community in Brooklyn focuses on the “intentional” life.
Stare into another person’s eyes long enough, and you start to feel like you might be in love.
It worked for Ryan Fix and Poppy Liu. On their first date, they tried a two-hour eye gaze—a concerted effort to relate by sitting at arm’s length and silently staring at one another. Now they are partners in romance, and in business. They also live together as part of that business, along with around 20 other people, in what some might call a commune.
“It’s not a commune,” Fix explains, but rather a culmination of his life’s journey. He worked on Wall Street but left as he felt his soul corroding, to find a life that would prioritize human connection. Fix keeps his head shaved, and he was barefoot in a tunic when we met. The serenity he exudes is intense, if somewhere below guru-level. And if what he was running were a commune, the love seat we were sitting on wouldn’t be in a six-person apartment in the middle of Williamsburg, Brooklyn—one of the most densely populated places in the country, and among the most expensive.
His call on a foreign government to hack Hillary Clinton’s email account is a complete subversion of GOP ideals.
The first excuse for Donald Trump’s amazing press conference on Wednesday, in which he called on the Russians to hack and publish the 30,000 emails wiped from Hillary Clinton’s home server, was: He was only joking.
That excuse almost immediately dissolved. When Trump was asked by CNN’s Jim Acosta whether he would call on Vladimir Putin to stay out of U.S. elections, the presidential nominee answered that he would not tell Putin what to do. After the conference ended, Trump tweeted out a slightly tidied up request to the Russians to find Clinton’s emails—but to hand them over to the FBI rather than publish them.
The second excuse, produced on Twitter minutes later by Newt Gingrich, is that Trump’s remark, while possibly unfortunate, mattered less than Clinton’s careless handling of classified material on her server. That defense seems likely to have more staying power than the first—about which, more in a minute.