Trump Tax Plan: All that Glitters is not Bold

 Trump's plan is a sham.   Using branded water does not make trickle down better.  Benefits flow disproportionally to the wealthiest.  The plan could cost as much as 10 trillion over the next decade, depending on the scope of, as yet unspecified, reduction of deductions.  If implemented, the plan would be funded through deficits, and reductions in spending.  Spoiler alert:  spending reductions reduce benefits to the lower and middle class.

The marquee feature is no tax below 50,000 for married couples, and below 25000 for singles.  Because of various credits and the standard deduction, many in this segment already pay little if any taxes.  Oddly, a single parent with two children making 35,000 will pay tax but a childless couple will not.   Whether the poor and lower middle class benefit will depend on what, if any, changes are made in the earned income tax credit.  At best, some will see a benefit of a few hundred dollars.

Another distraction is eliminating the carried interest exemption for hedge fund managers  The reduction is almost meaningless from a 23.8% marginal rate to Trump's new top ordinary income rate of 25%.  The few impacted will be mildly annoyed, but the treasury will see little benefit.

Which brings us to the heart of the plan,  three massive tax cuts for the wealthiest.  First, the maximum rate drops from 39.8% to 25%.  Stated simply someone making 10 million dollars a year saves nearly 1.5 million.  Cutting back deductions cannot cover the difference.

Second, the top corporate rate is reduced from 35% to 15%.  Taxing a small business grossing under a million at the same rate as Apple or Exxon is absurd.  A rational plan could provide a revenue neutral combination of rate cuts and elimination of deductions.  But parity cannot be achieved at 15%.

The final cut benefits only the 5,000 richest families in America.  Trump ends the estate tax which only applies to estates over 10 million for married couples and 5 million for singles.  This multi-billion dollar giveaway, ensures that the elite maintain a stranglehold on power and political influence.

Return of the Know Nothings

The party known for trickle down economics has blossomed with bottom up politics.   Prior to the 2010 census, masterfully targeted contributions carried the majority of state legislatures for the GOP. With the upper hand in redistricting, a Republican House was guaranteed.  In the last election, Democrats got the majority of the votes for Congress, but the GOP added seats to its existing majority.  In Senate elections, with Montana and Wyoming having as many Senators as California and New York, Republicans have a natural edge.

With this historic advantage, what have the Republicans gotten?   Join me in the chorus,  "Absolutely nothing."  Promises that could never survive a filibuster or presidential veto, whipped the base into a frenzy.  With pitch forks at their back legislators were forced to take all or nothing positions.  Predictably they got nothing.

Longstanding GOP goals were within their grasp if they did not mistake the art of compromise for gang graffiti.  To ensure failure, they have forced out  Boehner, who had the skill to maximize GOP leverage.  The GOP advantage will shrink in 2016, and may vanish after 2020.

The GOP presidential nominating process fueled by anti-immigrant hysteria and failed establishment promises, is a reembodiment of the  Know-Nothing Party.  Trump knows nothing about foreign policy, Carson knows nothing about foreign or domestic policy,  and Fiorina only knows how to lie.

Republicans have squandered their advantage, and are diligently forming a circular firing squad.

Eli Broad Museum Parts 1 and 2

The Broad Museum will be widely visited as part of one of Los Angeles' premier tourist destinations. When opened in September it will join MOCA, the Walt Disney Concert Hall, the Cathedral of the Lady of our Angels, and the Music Center atop Bunker Hill.  Part 1 below is from the sneak preview.

Roslyn and I were able to get tickets for the sneak preview Sunday February 15th.

We returned on September 23rd to enjoy the collection.  My camera was chip less, so I relied on my phone.   Part 3 will feature pictures from our next visit with my new Canon 6D.

Of the many Lichtenstein's this was my clear favorite.

 I loved this fanciful room featuring a Japanese artist.

This is but a small sampling of the admirable collection.  The museum was well curated and had perfect lighting.

As you can see it is close theWalt Disney Music Hall.

Low Taxes Have Crushed the Middle Class

Although social, and wedge issues often grab the headlines, two fundamental differences separate the parties.  Republicans are more willing to go to war, while ensuring that they, and theirs, never see a battle field.  Republicans believe that lower taxes raise the tide that lifts all ships, ignoring the leaky dinghies of the lower and middle class.

The GOP favors wealth accumulation by the strong, unfettered by a puny, tax starved government.  Democrats believe that the purpose of government is to lift up the weak, secure in the knowledge that the strong will take care of themselves.

In the 1950's the top marginal tax rate was 90%, kicking in at about 2.5 million in today's dollars.  Although deductions significantly lowered the effective rate, it was much higher than today.  The term progressive tax rate is accurate.  Government programs provide proportionally more for the middle class and the poor than for the wealthy.  An increase in social security benefits is a godsend at the bottom, but a mere pittance at the top.

The real hatred for Obamacare is not imaginary death panels, or phantom government take over of medical care, it is the subsidization of insurance.  Obamacare redistributes wealth to the middle, and particularly, to the lower middle class.

Lower tax rates have gone hand in hand with a redistribution of wealth to the upper class.  Wealth begets power and influence which begets more wealth.  The system is rigged when a CEO of a public company makes 300 times more than the average employee.

Lower taxes and cotton candy are both filled with hot air, and do more harm than good.

Whale Watching in Newport Beach

Roslyn and I went whale watching.  After spending a week blogging about the party of pachyderms, it was a wonderful change of pace to see these majestic creatures.

Boalt Law School 40th Reunion

This blog went dark while I enjoyed the light of my 40th law school reunion.  We stayed a few extra days to enjoy the Bay Area.   We took the Golden Gate Bridge to Half Moon Bay.

 We ate on the bay.  Sam's Chowder House had great chowder, but otherwise was just OK.

 In Marin we enjoyed a black art exhibit at hanger 5.  The exhibit included Pirkle Jones Black Panther pictures, circa 1968,

The building was a wonderfully converted airplane hanger.

Another art site in Marin.

The program was exceptional.  https://www.law.berkeley.edu/alumni-weekend/schedule-2015/  The morning program featured Ted Olson, class of 1965.  He was the winning attorney in Bush v. Gore, Citizens United, and most recently the gay marriage decision.

Lunch was in the University Club, with stunning views of the campus, bay and stadium.

The afternoon program was scintillating.  The Huey Newton trial was dissected and its lessons applied.  Participating were the Honorable D. Lowell Jensen, class of '52 who prosecuted at the first trial and the public defender Penny Cooper class of '64.  Also participating were Rodney King's attorney John Burris, '73 and the Honorable Lise Pearlman '74.

It was a chance to renew acquaintances.  Pictured above is professor and former dean Jesse Choper who was celebrating his 80th birthday.  We have a shared interest in horse racing.

Dinner was back at the University Club, where I was joined by my wife, Roslyn.

The night concluded with drinks and dancing.

The Case for Kasich

Like wondering what loser your friend will date next,  I admit a morbid curiosity about who the GOP will nominate.  The answer is Kasich.

Fearing that Trump and Carson are uncontrollable, and perhaps, unelectable, the money and muscle of the Republican establishment will coalesce behind a single candidate.  Cruz does not pass the smell test since he has positioned himself to pick up the droppings if the Trump campaign dumps.

Walker looked good on paper, but he lives in a world of scissors.  Everything he says gets cut to pieces.  Even for the ardent midlevel shopper, Kohl's is wearing thin.  The Bush campaign is so covered in rust that it cannot get off the tarmac.  He is flying commercial  because the smart money is always the first to bail.

It comes down to Kasich and Rubio.  Rubio is attractive, articulate in both English and Spanish, has a positive generational message and hails from the key state of Florida.  His past stands on immigration are at odds with the current state of GOP xenophobia, but it is Kasich's strength not Mario's weakness, that will be determinative.

Kasich has an amazing 60% per cent approval rating as governor of the must win purple Ohio.  After nine terms in Congress, including heading the Budget Committee, he is comfortable with any policy question.  Despite his establishment ties, he always seems authentic.  Finally, he is a key tactician.  When approving the expansion of Medicare under Obamacare, he did it on biblical grounds.  Brilliant!

Hillary's Bimbo Crisis

Clinton's campaign is being busted up by a story with long legs but no substance.  Drawn in by unrelenting Republican wolf calls, the press wags its tongue and breathlessly reports each  e-mail non-event.  Unlike Republican paradigms of virtue, Hillary neither mislead this nation into a costly war, nor shared classified information with a lover/biographer.

Hillary's sin is an understandably excessive concern for her privacy, after decades of false scandals with names like Whitewater and  the death of Vince Foster.   Hopefully the voting public will not dance to the constant drumbeat of challenges to Clinton's integrity.  Let them instead march to the poles to vote for the most qualified candidate to run for the presidency  in my lifetime.

Gehry at LACMA

Roslyn and I attended the opening of the Frank Geary exhibit at the Los Angeles County Museum of Art.  As angelenos we take great pride in our LA based, world-class architect.  I have had the joy of seeing the Guggenheim in Bilbao, Spain as well as the similar design of the Walt Disney Concert Hall.

Since Roslyn was driving, I had the green light to take this picture of the dusk sky.

The exhibit featured models of many completed, in progress and proposed structures.

Also featured was art recently contributed in honor of LACMA's 50th anniversary.