Blog on the Run: Reloaded

Sunday, November 27, 2016 2:05 pm

You go to war with the president-elect you have

Fourth in a series (first installment, second installment, third installment)

So we’re left not only with an illegitimate president-elect, but also, by temperament, background and training, the least qualified man ever to win, or “win,” the office.  He simply doesn’t know things a president ought to know. Worse, he either doesn’t know or doesn’t care that he doesn’t know them; he is proudly, aggressively ignorant and incurious, Idiot America incarnate.

He understands nothing about the economy. His tax plan would raise taxes on many middle-income Americans, including a majority of single-parent households and most married-couple households with three or more children,  while giving breaks averaging $317,000 to millionaires. His plan also will add more than $7 trillion to the national debt over the next decade.

He understands nothing about foreign relations, particularly the crucial role of NATO in maintaining peace since World War II.

He knew nothing about the nuclear triad, something I read about in seventh grade. And his other comments on the subject of nuclear weapons — asking why we have nukes if we can’t use them, suggesting that nuclear proliferation is not something to worry about — should have been disqualifying.

He had telephone conversations with foreign officials on unsecured phone lines in Trump Tower without having been briefed by the State Department.

He either doesn’t know or doesn’t care anything about global warming, a position that puts him at odds not only with most climate scientists but also with most of the world’s leaders.

He has invited with open arms into American discourse a way of thinking and of treating others that we spent 425,000 American lives to purge, and 50 million lives worldwide, within the lifetimes of many now still living.

His business affairs appear to conflict, at times sharply, with the nation’s best interests, if not with statutory law and the Emoluments Clause of the Constitution. His involvement with Russia includes both loans from Russian banks and Russian payments to his de facto campaign manager, Paul Manafort. His overall indebtedness, including loans from the state-owned Bank of China, totals more than $650 million, twice what he reported earlier on his federal disclosure form.

Trump displays a smug contempt for the very idea of constitutional law, as legal scholar Garrett Epps summarizes:

Donald Trump ran on a platform of relentless, thoroughgoing rejection of the Constitution itself, and its underlying principle of democratic self-government and individual rights. True, he never endorsed quartering of troops in private homes in time of peace, but aside from that there is hardly a provision of the Bill of Rights or later amendments he did not explicitly promise to override, from First Amendment freedom of the press and of religion to Fourth Amendment freedom from “unreasonable searches and seizures” to Sixth Amendment right to counsel to Fourteenth Amendment birthright citizenship and Equal Protection and Fifteenth Amendment voting rights.

And, finally, he sees and treats other people, whether employees, business partners, customers, or voters, purely as marks to be grifted.

So this is the person who is going to become our 45th president. Whether he will try to do everything he says, no one knows: Trump has said he likes being unpredictable, but how does that manifest? He “can be swayed by the last person he talked to.”

But as Ronald Reagan regularly said, people are policy, meaning that the people Trump is appointing to various positions in his administration are likely to have a big influence on policy, given Trump’s incurious approach to it. That prospect ought to keep you up nights, and I’ll talk more about that in the next installment.

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Monday, July 5, 2010 11:48 am

The rigged energy game

Filed under: We're so screwed — Lex @ 11:48 am
Tags: , ,

My friend Taft Wireback had a depressing article published in today’s News & Record about an entrepreneur facing the loss of his business because Congress has failed to extend a tax break that makes that business — Greensboro’s only biodiesel plant — financially feasible.

This is bad enough on its own. Biodiesel represents one small step toward both energy independence and reduced impact of energy consumption on the environment. And it’s ideal for concentrated urban areas such as Greensboro where vehicle fleets — GTA and PART buses, Postal Service vehicles and so on — could provide a reliable base of demand for this alternative energy source.

But, as always, context makes things even worse. As this report in yesterday’s New York Times makes clear, the energy game is rigged, heavily, in favor of oil:

When the Deepwater Horizon drilling platform set off the worst oil spill at sea in American history, it was flying the flag of the Marshall Islands. Registering there allowed the rig’s owner to significantly reduce its American taxes.

The owner, Transocean, moved its corporate headquarters from Houston to the Cayman Islands in 1999 and then to Switzerland in 2008, maneuvers that also helped it avoid taxes.

At the same time, BP was reaping sizable tax benefits from leasing the rig. According to a letter sent in June to the Senate Finance Committee, the company used a tax break for the oil industry to write off 70 percent of the rent for Deepwater Horizon — a deduction of more than $225,000 a day since the lease began.

With federal officials now considering a new tax on petroleum production to pay for the cleanup, the industry is fighting the measure, warning that it will lead to job losses and higher gasoline prices, as well as an increased dependence on foreign oil.

But an examination of the American tax code indicates that oil production is among the most heavily subsidized businesses, with tax breaks available at virtually every stage of the exploration and extraction process.

According to the most recent study by the Congressional Budget Office, released in 2005, capital investments like oil field leases and drilling equipment are taxed at an effective rate of 9 percent, significantly lower than the overall rate of 25 percent for businesses in general and lower than virtually any other industry.

And for many small and midsize oil companies, the tax on capital investments is so low that it is more than eliminated by var-ious credits. These companies’ returns on those investments are often higher after taxes than before.

If there is one benefit from the misbegotten elevation of Sarah Palin to the national political scene, it is that more Americans became aware of the fact that not only do Alaskans not pay state income taxes, they get a check from the state every year, their share of the proceeds from Alaskan oil production. That’s in stark contrast to how taxpayers in the other states fare:

The federal government is on the verge of one of the biggest giveaways of oil and gas in American history, worth an estimated $7 billion over five years.

New projections, buried in the Interior Department’s just-published budget plan, anticipate that the government will let companies pump about $65 billion worth of oil and natural gas from federal territory over the next five years without paying any royalties to the government.

Granted, $7 billion over five years would represent neither a huge windfall for individuals nor much help with the deficit. But it would be better than nothing.

And more broadly, we need to identify and enact the kinds of economic incentives that will move us significantly in the direction of energy independence even if, realistically, we may never get there. Every step we take in that direction is a step we take away from being held hostage and even forced into unnecessary wars, and may be a step toward saving our own hides by not destroying the environment we rely upon for life itself.

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