May, 20 2019, 12:00am EDT
For Immediate Release
Contact:
Chris Fleming,Email:,chris@redhorsestrategies.com
Trump's Infrastructure Plan Not Possible Without Major Tax Increases
Trump Supposed to Reveal Funding Proposal to Democrats at Wednesday Meeting
WASHINGTON
A $2 trillion plan to rebuild the nation's crumbling infrastructure and create millions of good-paying jobs cannot be funded without a major increase in taxes, according to Frank Clemente, executive director of Americans for Tax Fairness.
As Congressional Democrats prepare to meet with Trump on Wednesday to hear details of his proposal to pay for the $2 trillion infrastructure outlay they agreed to earlier this month, Clemente said any plan that does not include the revenue needed to pay for it will be meaningless and doomed to failure.
"If major tax increases are off the table, there is no way to pay for a $2 trillion infrastructure plan, it's that simple," he said. "Other options, such as raising the gas tax, might be part of the package, but by themselves won't come close to reaching the $2 trillion that's needed to fully address the poor state of the nation's infrastructure."
While Senate Democrats have proposed funding a $1 trillion infrastructure plan by rolling back Trump-GOP tax breaks that benefited the wealthy and corporations, President Trump has not yet identified funding sources. But Republican leaders in Congress have already stated that rolling back some of the tax cuts in the 2017 Tax Cuts and Jobs Act is "a non-starter." Others have said borrowing to pay for infrastructure is also off the table.
"None of these objections were raised by Republicans when they passed their tax cuts for the wealthy and big corporations that weren't paid for and added nearly $2 trillion to the debt," Clemente said. "They continue to insist that the tax cuts will pay for themselves, but that won't happen."
Clemente said that if Congress doesn't want to roll back or repeal the TCJA, there are numerous other ways to close loopholes and end special tax breaks for the wealthy and corporations that pre-date the TCJA. A recent report by Americans for Tax Fairness, Fair Taxes Now identified around 40 options that would raise trillions of dollars and include:
- Assessing an annual tax on extreme wealth: Sen. Elizabeth Warren (D-MA) has proposed an "Ultra-Millionaires Tax" of 2% on the portion of a household's net worth exceeding $50 million, and a 3% tax on the portion exceeding $1 billion, which could raise $2.75 trillion.
- Taxing wealth more like work: Ending or reducing the tax discount on certain investment income so the tax rate paid by the rich on their income from stocks (currently about 24%) more closely matches the 37% top tax rate paid on wages and salaries along with other investment-income reforms could raise up to $2.4 trillion.
- Placing a surtax on super-high incomes: A 10% surtax on that part of a couple's income above $2 million could raise up to $800 billion.
- Making corporations, who arguably benefit most from public infrastructure spending, pay more by increasing their income tax rate from the current 21% (Senate Democrats proposed to 25%). Every 1 percentage point increase raises about $100 billion - a 25% rate would raise about $360 billion; a 28% rate would raise nearly $700 billion and a 35% rate restoration would collect about $1.3 trillion.
- Taxing Wall Street trades: A tax of just 10 cents on every $100 in trades could raise $777 billion, according to CBO. It would also slow the high-frequency trading of stock market speculators that destabilizes markets for long-term investors.
Other options for paying for an ambitious infrastructure plan are inadequate. The gas tax, which has been 18.4-cents a gallon since 1993, is a diminishing resource. Better mileage cars and electric vehicles have been shrinking Highway Trust Fund gas tax revenues for the last 20 years. Increasing the motor fuel tax by 35 cents a gallon--effectively tripling it--would raise just $515 billion over 10 years, according to the Congressional Budget Office, far short of what's needed.
Public-private partnerships, in which private investment is leveraged to fund public projects, have also been mentioned as ways to pay for infrastructure improvements. But only about 12% of infrastructure projects offer a return that would attract private investment, and the tolls and fees necessary to make the projects viable would disproportionately tax working families while providing long-term guaranteed profits for big corporations and Wall Street.
During the 2016 campaign, Trump promised to spend $1 trillion on infrastructure, but no workable plan emerged. According to Democrats, it was Trump who proposed boosting the amount to $2 trillion at their meeting in the White House, but funding options weren't mentioned.
"It will be interesting to see what the president comes up with," said Clemente. "But without asking more from the wealthy and corporations, the plan will be just another empty promise while our roads, bridges, rail lines and public buildings continue to deteriorate."
Americans for Tax Fairness (ATF) is a diverse campaign of more than 420 national, state and local endorsing organizations united in support of a fair tax system that works for all Americans. It has come together based on the belief that the country needs comprehensive, progressive tax reform that results in greater revenue to meet our growing needs. This requires big corporations and the wealthy to pay their fair share in taxes, not to live by their own set of rules.
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'Racist POS' Mike Collins Cheers Video of Ole Miss Mob Attack on Black Student
"This is not about Israel, Palestine, or Gaza. This is old-fashioned American racism and misogyny," said one observer. "These are the types of young white men who will grow up to be Republican governors, senators, and members of Congress."
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Republican Georgia Congressman Mike Collins came under fire Friday over a social media post applauding video of white University of Mississippi students racially abusing a Black woman participating in a campus protest for Palestine.
Collins posted the video—in which numerous people can be heard grunting like apes and one young man is seen jumping up and down like a monkey in front of the Black woman—with the caption, "Ole Miss taking care of business."
Collins—or whoever's in charge of his social media accounts—sparred with Black leaders who called out his racism. When former Democratic Ohio state senator Nina Turner said the video showed "anti-Blackness," the congressman shot back, "*Anti-terroristness."
When Rep. Jamaal Bowman (D-N.Y.) accused Collins of "fueling white supremacy," the Republican retorted, "Don't take down any more signs at our workplace, please" along with a photo of the Democrat triggering a fire alarm in a House of Representatives office building last year.
Around 30 protesters were rallying in support of Palestine in the Ole Miss Quad when counter-protesters gathered near the demonstrators. Some booed and chanted, "We want Trump!" Others singled out the Black woman—who NBC Newssaid is a graduate student at the school—chanting "Lizzo, Lizzo, Lizzo," "take a shower," "your nose is huge," "fuck you, fat bitch," and "lock her up!"
The counter-protesters also sang the "Star-Spangled Banner." Republican Mississippi Gov. Tate Reeves shared a separate video of the singing students on social media, captioning his post, "Warms my heart" and "I love Mississippi."
No racist language can be heard in the video shared by Reeves.
The Daily Mississippianreports the demonstrators were escorted off the Quad after counter-protesters threw water bottles at them.
Collins is no stranger to accusations of racism. Earlier this year, he suggested murdering migrants by throwing them from helicopters into the sea, in the manner of U.S.-backed South American dictators in the 1970s.
He also
introduced the Restricting Administration Zealots from Obliging Raiders (RAZOR) Act, which would ban the federal government from removing or altering "any state-constructed barriers installed to mitigate illegal immigration," such as the razor buoys installed in the Rio Grande by Republican Texas Gov. Greg Abbott.
Collins was also
accused of antisemitism after he amplified an anti-semitic social media post by an avowed neo-Nazi targeting a Washington Post reporter for being Jewish.
Ole Miss said Friday that "statements were made at the demonstration on our campus Thursday that were offensive and inappropriate."
"We cannot comment specifically about that video, but the university is looking into reports about specific actions," the school added. "Any actions that violate university policy will be met with appropriate action."
The Ole Miss incident comes amid rapidly spreading campus protests across the U.S. and around the world in response to Israel's genocidal assault on Gaza, which has killed, maimed, or left missing around 5% of the embattled strip's 2.3 million people, most of them civilians, while forcibly displacing nearly 9 in 10 people and driving hundreds of thousands to the brink of starvation.
While numerous Ole Miss students said they did not understand what the pro-Palestine protesters hoped to accomplish, others voiced support for the demonstrators—and for Palestine.
"As we've seen throughout history, time and time again, the student movement is never wrong. Time and time again, anytime there's a student protest, and you're against it, you're on the wrong side of history," Xavier Black, a junior majoring in international studies, told
The Daily Mississippian. "So I would like to be on the right side."
One Palestinian American Ole Miss student was teary-eyed as she thanked the protesters.
"Hey guys, I know that what just happened was really intimidating, and it was a little scary, but I just want to say I'm so proud of you guys," the student—who gave only her first name, Jana—said,
according toMississippi Today. "This wasn't going to happen... without all of you guys. Palestine was being heard. And I just want to thank you guys so much."
"I know that was such a big risk, but this is the most that people have ever thought for us, so don't give up," she added. "I know that was really hard, but we need to keep fighting. This was just the start of it, okay?"
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UK Voters Send 'Shout' for Change to Tories as Labour Sweeps in Local Elections
"We are probably looking at certainly one of the worst, if not the worst, Conservative performances in local government elections for the last 40 years," said one analyst.
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Nearly two weeks after the British Conservative Party pushed through a proposal to deport asylum-seekers to Rwanda in what one lawyer called "performative cruelty" in the name of winning the general election expected later this year, the local election results announced throughout the day Friday made increasingly clear the ploy hadn't worked.
Elections expert John Curtice projected the Tories could ultimately lose up to 500 local council seats as vote counting continues into the weekend, following elections in which voters cast ballots for 2,661 seats.
The Conservatives have lost around half of the seats they are defending Curtice told BBC Radio.
"We are probably looking at certainly one of the worst, if not the worst, Conservative performances in local government elections for the last 40 years," the polling expert said.
Curtice added that if the results were replicated in a general election, Labour would likely win 34% of the vote, with the Tories winning 25%—five years after the right-wing party won in a landslide in the last nationwide contest.
Labour leader Keir Starmer said the results represented a decisive call for "change" from British voters, particularly applauding the results of a special election in Blackpool South, where Labour candidate Chris Webb won nearly 11,000 votes while Conservative David Jones came in a distant second with just over 3,200.
Webb's victory represented a 26% swing in favor of Labour.
"That's the fifth swing of over 20% to the Labour party in by elections in recent months and years. It is a fantastic result, a really first class result," Starmer said. "And here in Blackpool, a message has been sent directly to the prime minister, because this was a parliamentary vote, to say we're fed up with your decline, your chaos... your division and we want change. We want to go forward with Labour."
"That wasn't just a little message," he added. "That wasn't just a murmur. That was a shout from Blackpool. We want to change. And Blackpool speaks for the whole country in saying we've had enough now, after 14 years of failure, 14 years of decline."
The Conservatives also lost ground in the northern town of Hartlepool, where they lost six council seats. The region swung toward the Tories after the party led the push for Brexit, the U.K.'s exit from the European Union.
A similar result was recorded in York and North Yorkshire, which includes the area Conservative Prime Minister Rishi Sunak represented as a member of Parliament.
"Yorkshire voted for Brexit in 2016," wrote William Booth, London bureau chief for The Washington Post. "But long gone are the days when many Conservatives want to stand before the voters and extol the advantages of leaving the European Union, which has been, in most sectors, a flop."
Sunak, added Booth, is "betting that immigration is still an issue with resonance and has promised to 'stop the boats,' the daily spectacle of desperate migrants risking their lives on rubber rafts trying to cross the English Channel. Sunak's government plans to fly asylum seekers arriving by boat to Rwanda. No flights have taken off yet. But the Home Office last week began a self-proclaimed 'large scale' operation to detain asylum seekers destined for removal."
The Labour Party has called Sunak's Rwanda plan a "gimmick" and said it would reverse a Tory policy blocking refugees from applying for asylum.
Average wages in the U.K. last year were "back at the level during the 2008 financial crisis, after taking account of inflation," according toThe Guardian.
"This 15 years of lost wage growth is estimated by the Resolution Foundation thinktank to have cost the average work £10,700 ($13,426) a year," reported the newspaper in March. "The performance has been ranked as the worst period for pay growth since the Napoleonic wars ended in 1815."
Analysts noted one setback for Labour in Oldham, where the party lost some seats in areas with large numbers of Muslim voters to independent candidates, costing it overall control of the council.
Arooj Shah, the Labour leader of the Oldham Council, told the BBC that the party's support for Israel in its bombardment of Gaza was behind its losses.
"Gaza is clearly an issue for anyone with an ounce of humanity in them, but we've asked for an immediate cease-fire right from the start," said Shah. "We have a rise of independents because people think mainstream parties aren't the answer."
The losses "should be a wake-up call for the Starmer leadership: Every vote must be earned," said the socialist and anti-racist group Momentum. "That means calling for an immediate arms ban to Israel, calling out Israeli war crimes, and delivering real leadership on climate."
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Israel Briefs US on Plan for 'Ethnic Cleansing' of Rafah
"A military invasion in Rafah would be CATASTROPHIC... There can be no more 'evacuations.' There is no safe place to go," said Oxfam, calling for an immediate cease-fire.
May 03, 2024
Israeli officials have told the Biden administration and humanitarian organizations how they plan to start forcibly expelling Gazans from Rafah ahead of a likely ground invasion—a move critics have likened to the ethnic cleansing of Palestine's Arabs during the establishment of the modern state of Israel.
Politicoreported Friday that Israel Defense Forces (IDF) officials informed the U.S. government and aid agencies that a plan is in place to remove Palestinians from Rafah, where approximately 1.2 million refugees forcibly displaced from other parts of Gaza are precariously sheltering alongside around 280,000 local residents in the embattled strip's southernmost city.
According to an unnamed U.S. official and two other people familiar with the plan, Israel would "move people out of Rafah, the main humanitarian hub in the enclave, to al-Mawasi, a small strip of land on the southern Gaza coast." Politico also obtained a copy of a map containing some details of the plan.
The Wall Street Journalreported Friday that Israel has given Hamas until next week to submit to a cease-fire proposal or face an invasion of Rafah.
"Such an invasion could lead to horrific massacres and raise scenarios of a second Nakba," the Gaza-based Palestinian Center for Human Rights said recently. "After 200 days of horrific genocidal acts in Gaza, the real objectives of the attack are the continuation of the 76-year-long ongoing Nakba and the erasure and genocidal destruction of the Palestinian people in Gaza. Israel is laying the groundwork to fulfill its settler-colonial plan of colonizing Gaza."
Human rights defenders have warned that Israel may ultimately seek to ethnically cleanse as many Palestinians as possible from Gaza.
The situation in Rafah is already dire. Water and other necessities are in desperately short supply. According to James Elder, the global spokesperson for the United Nations Children's Fund (UNICEF), there is approximately one toilet for every 850 people in Rafah and one shower for every 3,500 people.
On Friday, Jens Laerke, a spokesperson for the United Nations Office for the Coordination of Humanitarian Affairs, told reporters in Geneva that an Israeli ground invasion of Rafah would put hundreds of thousands of Palestinians "at imminent risk of death."
"Any ground operation would mean more suffering and death," Laerke said, warning of not only "a slaughter of civilians, but also at the same time an incredible blow to the humanitarian operation in the entire strip, because it is run primarily out of Rafah."
Around 5% of Gazans have been killed, maimed, or left missing by Israel's genocidal assault on Gaza, according to a report published Wednesday by the U.N. Development Program and the U.N. Economic Commission for Western Asia. That's more than 120,000 people, the vast majority of whom are innocent civilians, according to Palestinian officials and international human rights groups.
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