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.
In his first extended press conference at the White House, the president railed against his critics and unspooled a series of bitter complaints.
Have you ever had a job you loved, but one where you felt like you’d achieved everything you could? So you looked for a new job, went through a fairly grueling application process, if you do say so yourself, got the offer. Then you started the job, and you hated it. Worse, all the tricks you’d learned in your old job seemed to be pretty much useless in the new one. Did you ever have that experience?
The president of the United States can sympathize.
Donald Trump held the first extended press conference of his presidency on Thursday, and it was a stunning, disorienting experience. He mused about nuclear war, escalated his feud with the press, continued to dwell on the vote count in November, asked whether a black reporter was friends with the Congressional Black Caucus, and, almost as an afterthought, announced his selection for secretary of labor.
Plagues, revolutions, massive wars, collapsed states—these are what reliably reduce economic disparities.
Calls to make America great again hark back to a time when income inequality receded even as the economy boomed and the middle class expanded. Yet it is all too easy to forget just how deeply this newfound equality was rooted in the cataclysm of the world wars.
The pressures of total war became a uniquely powerful catalyst of equalizing reform, spurring unionization, extensions of voting rights, and the creation of the welfare state. During and after wartime, aggressive government intervention in the private sector and disruptions to capital holdings wiped out upper-class wealth and funneled resources to workers; even in countries that escaped physical devastation and crippling inflation, marginal tax rates surged upward. Concentrated for the most part between 1914 and 1945, this “Great Compression” (as economists call it) of inequality took several more decades to fully run its course across the developed world until the 1970s and 1980s, when it stalled and began to go into reverse.
Neither truck drivers nor bankers would put up with a system like the one that influences medical residents’ schedules.
The path to becoming a doctor is notoriously difficult. Following pre-med studies and four years of medical school, freshly minted M.D.s must spend anywhere from three to seven years (depending on their chosen specialty) training as “residents” at an established teaching hospital. Medical residencies are institutional apprenticeships—and are therefore structured to serve the dual, often dueling, aims of training the profession’s next generation and minding the hospital’s labor needs.
How to manage this tension between “education and service” is a perennial question of residency training, according to Janis Orlowski, the chief health-care officer of the Association of American Medical Colleges (AAMC). Orlowski says that the amount of menial labor residents are required to perform, known in the profession as “scut work,” has decreased "tremendously" since she was a resident in the 1980s. But she acknowledges that even "institutions that are committed to education … constantly struggle with this,” trying to stay on the right side of the boundary between training and taking advantage of residents.
It’s a great physics thought experiment—and an awful accident in 1978.
What would happen if you stuck your body inside a particle accelerator? The scenario seems like the start of a bad Marvel comic, but it happens to shed light on our intuitions about radiation, the vulnerability of the human body, and the very nature of matter. Particle accelerators allow physicists to study subatomic particles by speeding them up in powerful magnetic fields and then tracing the interactions that result from collisions. By delving into the mysteries of the universe, colliders have entered the zeitgeist and tapped the wonders and fears of our age.
The preconditions are present in the U.S. today. Here’s the playbook Donald Trump could use to set the country down a path toward illiberalism.
It’s 2021, and President Donald Trump will shortly be sworn in for his second term. The 45th president has visibly aged over the past four years. He rests heavily on his daughter Ivanka’s arm during his infrequent public appearances.
Fortunately for him, he did not need to campaign hard for reelection. His has been a popular presidency: Big tax cuts, big spending, and big deficits have worked their familiar expansive magic. Wages have grown strongly in the Trump years, especially for men without a college degree, even if rising inflation is beginning to bite into the gains. The president’s supporters credit his restrictive immigration policies and his TrumpWorks infrastructure program.
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By excusing Donald Trump’s behavior, some evangelical leaders enabled the internet provocateur’s ascent.
The Conservative Political Action Conference (CPAC) takes place this week near Washington, D.C., the first such gathering since Donald Trump took office. The conference purports to be a gathering for like-minded folks who believe, generally, in the well-established principles of the conservative movement, as enunciated by the American Conservative Union.
This year, aside from President Trump himself, activist Milo Yiannopoulos was briefly granted a featured speaking slot, and it caused a lot of disruption, garment-rending, gnashing of teeth, and in-fighting on the right.
Yiannopoulos, who prefers to go by MILO (yes, capitalized), is a controversial figure with dubious conservative credentials, most famous for being outrageous during speeches on his college campus tour, soberly called the “Dangerous Faggot” tour. Throughout the 2016 election, Yiannopoulos seemed to enjoy nothing quite so much as the crass, antagonistic side of candidate Trump. He didn’t just celebrate it; he rode it like a wave to greater stardom.
The provocateur at the center of the controversy that engulfed the right this weekend offers a qualified mea culpa.
NEW YORK — Milo Yiannopoulos has a new mode, and it’s contrition.
Yiannopoulos appeared before reporters on Tuesday in a rented Soho loft to announce his resignation from Breitbart News and apologize to abuse victims for over-a-year-old remarks on pedophilia that incited a political firestorm over the weekend. Wearing a conservative navy blue suit and sunglasses, which he switched to regular glasses shortly into the conference, Yiannopoulous read a prepared statement in which he said he had been the victim of sexual abuse between the ages of 13 and 16. Yiannopoulos said he was “partly to blame” for the remarks on the tape and that he was “certainly guilty of imprecise language.”
“I haven’t ever apologized before,” Yiannopoulos said. “I don’t anticipate ever doing it again. Name-calling doesn’t bother me, misreporting doesn’t bother me. But to be a victim of child abuse and for the media to call me an apologist for child abuse is absurd. I regret the things I said. I don't think I've been as sorry about anything in my whole life.”
The Italian philosopher Julius Evola is an unlikely hero for defenders of the “Judeo-Christian West.”
In the summer of 2014, years before he became the White House chief strategist, Steve Bannon gave a lecture via Skype at a conference held inside the Vatican. He spoke about the need to defend the values of the “Judeo-Christian West”—a term he used 11 times—against crony capitalism and libertarian capitalism, secularization, and Islam. He also mentioned the late Julius Evola, a far-right Italian philosopher popular with the American alt-right movement. What he did not mention is that Evola hated not only Jews, but Christianity, too.
References to Evola abounded on websites such as Breitbart News, The Daily Stormer, and AltRight.com well before The New York Timesnoted the Bannon-Evola connection earlier this month. But few have discussed the fundamental oddity of Evola serving as an intellectual inspiration for the alt-right. Yes, the thinker was a virulent anti-Semite and Nazi sympathizer who influenced far-right movements in Italy from the 1950s until his death in 1974, but shouldn’t his contempt for Christianity make him an unlikely hero for those purporting to defend “Judeo-Christian” values?
Trump’s attacks on the free press don’t just threaten the media—they undermine the public’s capacity to think, act, and defend democracy.
Are Donald Trump’s latest attacks on the press really that bad? Are they that out-of-the-ordinary, given the famous record of complaints nearly all his predecessors have lodged? (Even George Washington had a hostile-press problem.)
Are the bellows of protest from reporters, editors, and others of my press colleagues justified? Or just another sign that the press is nearly as thin-skinned as Trump himself, along with being even less popular?
I could prolong the buildup, but here is the case I’m going to make: Yes, they’re that bad, and worse.
I think Trump’s first month in office, capped by his “enemy of the people” announcement about the press, has been even more ominous and destructive than the Trump of the campaign trail would have prepared us for, which is of course saying something. And his “lying media” campaign matters not only in itself, which it does, but also because it is part of what is effectively an assault by Trump on the fundamentals of democratic governance.