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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"These deaths are not an accident nor a tragedy," said the ship's crew. "They are wanted."
Mar 27, 2023
Italian authorities on Sunday seized a migrant aid ship financed by renowned British street artist Banksy after the vessel allegedly violated a decree by Italy's far-right cabinet by refusing to head to port following a rescue operation.
Reutersreports the Italian coast guard instructed the MV Louise Michel—named after the French "grande dame of anarchy"—to dock at Trapani in Sicily after rescuing migrants in the Libyan search and rescue zone. Instead, the ship went to aid distressed migrants in Malta's search and rescue area. The 30-meter vessel, painted bright pink and white, ultimately docked in Lampedusa Saturday with 178 rescued migrants aboard.
Louise Michel's Twitter account said Monday that the ship's crew "received official notification that the ship is detained for 20 days due to violation of the new Italian decree law" and that "we will take all necessary steps to fight this detention."
Last month, Italy's parliament codified a December 2022 decree by Italian Prime Minister Giorgia Meloni and her neo-fascist Brothers of Italy cabinet requiring ships to proceed immediately to an assigned port after a rescue instead of providing aid to other distressed vessels, as is commonly done. Critics say humanitarian vessels are being assigned to distant ports in order to keep them from rescue zones for as long as possible.
Under the new law, migrants must also declare while aboard a rescue ship whether they wish to apply for asylum, and if so, in which European Union country. Captains of civilian vessels found in violation of the law face fines of up to €50,000 ($53,900) and confiscation and impoundment of their ships. Migrant rights advocates have slammed the new legislation as "a call to let people drown."
Following the drowning of more than 60 migrants whose boat broke apart just off the Calabrian coast last month, Meloni's cabinet approved another decree establishing a new crime—death resulting from people smuggling—punishable by up to 30 years in prison.
On Sunday, Tunisia's coast guard said it recovered the bodies of at least 29 migrants from Sub-Saharan Africa who were attempting to cross the Mediterranean Sea to Italy when three boats capsized. There has been an increase in violence against Black people and spike in migrant departures from the North African nation since its president, Kais Saied, delivered an inflammatory speech earlier this month blasting what he called "hordes of illegal immigrants from sub-Saharan Africa" who bring "violence, crime, and unacceptable practices" to Tunisia and threaten its "Arab and Islamic" character.
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Mar 27, 2023
Residents of Philadelphia and the surrounding area demanded clarity about the safety of their drinking water from city officials on Monday, three days after chemicals leaked from a plant into a tributary of the Delaware River, which provides water for about 14 million people in four states.
About 8,100 gallons of acrylic polymer solution leaked from a burst pipe at the chemical plant Trinseo PLC in Bucks County, Pennsylvania late Friday, entering Otter Creek, which flows into the Delaware.
The solution contained butyl acrylate, ethyl acrylate, and methyl methacrylate, which are used in paints and adhesives.
Exposure to butyl acrylateand ethyl acrylate is associated with breathing difficulties, and the latter is listed as a "potential occupational carcinogen" by the Centers for Disease Control and Prevention.
Despite the leak of the chemicals, city officials did not alert residents until Sunday morning, when they said people in Philadelphia should use bottled water to prevent exposure and warned that although contamination had not yet been detected in the drinking supply, water from Otter Creek could have traces of chemicals.
Hours later, Michael Carroll, the city's deputy managing director for transportation, infrastructure, and sustainability said residents no longer needed to buy bottled water—which had rapidly sold out at stores across Philadelphia following the earlier warning—and that the chance of contamination was diminishing over time.
"In a matter of days, the water in the Delaware should be okay," Carroll said, noting that tap water which had gone through the city's Baxter Water Treatment Plant had been determined to be free of contaminants as of Sunday.
Carroll said the city's drinking water had been confirmed to be safe to consume until at least Monday at 11:59 pm; the Baxter treatment facility took in new water overnight, which still has to be tested, according toThe Philadelphia Inquirer.
Democratic mayoral candidate and former city council member Helen Gym accused officials of "haphazardly" communicating with residents about the safety of their drinking water.
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She added that Trinseo PLC must be held accountable for the pipe rupture.
Business owners and residents echoed Gym's concern about being forced to wait for information about whether the water will be safe to drink after Monday night.
Scott Coudriet, a co-owner of Lloyd Whiskey Bar, closed his restaurant temporarily on Sunday, telling the Inquirer that the cocktail-focused business relies heavily on ice and that he didn't want to risk serving contaminated drinks.
"We didn't feel equipped to make any other choice than to close," Coudriet told the newspaper Monday. "But if anything, today I'm still confused about the language that 'You're safe through 11:59 p.m'... I don't know what happens at midnight."
Helicopter surveillance on Sunday did not show visual evidence of a chemical contaminant plume in Otter Creek or the Delaware River, and a water quality expert at Drexel University, Charles Haas, told the Inquirer that his concern level about contamination was "fairly low" based on the information provided by Carroll and other city officials.
The chemicals would be highly diluted in the river, Haas told the newspaper, and a reservoir at the Baxter plant could close off intake of new water from the river if necessary.
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Consumer rights and environmental justice advocate Erin Brockovich denounced officials' assurances of the safety of the water as "bullshit... from the 'stay calm and carry on' folks."
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"We are all joining hands to shut down the State of Israel," said the head of Israel's largest trade union federation. "The malls and the factories will close."
Mar 27, 2023
Update:
In the face of massive public backlash, Israeli Prime Minister Benjamin Netanyahu has reportedly agreed to delay his proposed judicial overhaul legislation until at least early May as part of a deal with the far-right party of National Security Minister Itamar Ben-Gvir.
Under the deal, according toThe Times of Israel, Netanyahu "agreed that the formation of a civil 'national guard' sought by Ben-Gvir to boost public safety will be approved in the upcoming cabinet meeting."
Ben-Gvir is a right-wing extremist who has previously been convicted of incitement to racism against Arabs and supporting a terrorist organization.
CNNreported that Ben-Gvir "insisted Monday that the judicial overhaul legislation would still come to a vote in parliament’s summer term," which runs from April 30 to July 30.
The far-right national security minister said he had Netanyahu's "commitment that the legislation will be brought to the Knesset for approval in the next session if no agreements are reached during the recess."
Earlier:
Chaos continued to spread across Israel on Monday as flights were grounded, cargo shipments were halted, schools were closed, and mass protests and strikes erupted over far-right Prime Minister Benjamin Netanyahu's plan to overhaul the nation's judicial system, an effort that opponents have decried as a brazen coup attempt.
Netanyahu, who is currently on trial for corruption charges, was reportedly considering whether to delay the legislative push on Monday as opposition intensified, but such a move would risk fracturing his far-right governing coalition—which the judicial overhaul would give more power to choose new judges and override Supreme Court decisions.
National Security Minister Itamar Ben-Gvir, a far-right extremist who has called for counterprotests to support the judicial overhaul, said Monday that he will resign if the proposal is put on hold.
As the prime minister weighs his next steps, protests against his plan in the streets and among Israeli officials are expanding.
By Monday afternoon and early evening in Israel, tens of thousands of demonstrators had gathered outside the Knesset to protest the judicial overhaul.
Histadrut, Israel's largest trade union federation, called a historic general strike earlier Monday to build pressure on the Netanyahu government to withdraw the judicial overhaul. As a result, many businesses shut their doors and El Al, Israel's largest airline, announced a halt to all flights departing from Ben Gurion Airport.
"We are all joining hands to shut down the State of Israel," Histadrut chief Arnon Bar-David said during a press conference on Monday. "The malls and the factories will close."
The Financial Timesreported Monday that "Israeli diplomatic staff at overseas embassies have joined strikes to protest against the far-right government's judicial reforms."
In a joint statement on Monday, American Federation of Teachers president Randi Weingarten and Stuart Appelbaum—head of the Retail, Wholesale, and Department Store Union and president of the Jewish Labor Committee—said that they "strongly back the general strike called by the Israeli trade union federation Histadrut."
"All trade unionists know that it is nothing but an illusion that unions can cooperate with an autocratic government while retaining their independent power," the U.S. union leaders said.
The protests have been building for months, but they erupted with fresh urgency late Sunday after Netanyahu fired Defense Minister Yoav Gallant following his comments in support of pausing attempts to ram through the proposed changes.
But the demonstrations,
frequently cast as part of a fight to preserve Israeli "democracy," are rife with underlying tensions and contradictions. As American-Israeli journalist Mairav Zonszein wrote for The Daily Beast last week:
The occupation is inseparable from Israel. The same government that operates Israel's liberal democratic mechanisms presides over millions of stateless Palestinians, who are effectively barred from protesting their condition. The same Supreme Court that struck down a law legalizing Jewish settlement on private Palestinian land has given the green light to Israel's continued transfer of citizens to occupied territory and to the siege on Gaza. That is why the Israeli human rights group B'Tselem defines Israel as an apartheid regime, and why Human Rights Watch and Amnesty International have accused Israel of committing the crime of apartheid.
MSNBC's Mehdi Hasan expressed a similar sentiment in a tweet on Sunday, writing: "On the one hand, I'm glad to see so many Israelis protesting their far-right government's attempt to turn Israel into a dictatorship. On the other hand, I wonder where all their protests were over West Bank Palestinians living under an Israeli dictatorship for over 50 years."
During a demonstration in Jerusalem on Monday, police were seen confiscating a protester's lonely Palestinian flag amid a sea of Israeli flags and banners:
The growing demonstrations against Netanyahu's right-wing government have raised concerns about potentially violent attacks from supporters of the judicial overhaul.
Haaretzreported Monday that "right-wing WhatsApp groups and social media are buzzing with calls from activists to demonstrate across Israel in defense of the Netanyahu government's judicial coup, with some activists calling on supporters to take up arms— 'tractors, guns, knives'—and attack anti-government protesters."
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