{"id":7324,"date":"2024-08-29T07:32:58","date_gmt":"2024-08-29T11:32:58","guid":{"rendered":"https:\/\/dahlman.online\/?p=7324"},"modified":"2024-08-29T07:33:01","modified_gmt":"2024-08-29T11:33:01","slug":"red-right","status":"publish","type":"post","link":"https:\/\/dahlman.online\/index.php\/2024\/08\/29\/red-right\/","title":{"rendered":"Red Right"},"content":{"rendered":"\n

A very \u201cRepublican\u201d friend sent me an article from a group called \u201cRed Right Updates<\/a>\u201d<\/em>. It called the Harris economic plans a \u201cdisaster\u201d and a \u201ccollection of misguided policies that threaten to stifle investment, cripple our economy, and ultimately weaken America\u2026\u201d.   He challenged me to explain \u201cthe Left\u2019s\u201d position.  So here\u2019s my point-by-point \u201crebuttal\u201d.  My guess is that we won\u2019t ever agree, but we can have a civil discussion. (Note \u2013 section headings are from the Red Right article).<\/em><\/p>\n\n\n\n

A National Debt Nightmare<\/h3>\n\n\n\n

Red Right<\/em>\u00a0predicts that the Harris program will create a $1.7 trillion deficit over ten years.\u00a0\u00a0According the them, \u201c\u2026(That) represents a massive burden on future generations and a dire threat to the economic stability of the United States\u201d.\u00a0<\/p>\n\n\n\n

A $1.7 trillion increase in the National debt over ten years is hardly staggering.\u00a0\u00a0In the last Administration, Trump raised the debt by at least $6.5 Trillion in four years (Heritage Foundation<\/a>), and as much as $8.<\/strong>4 Trillion (Newsweek<\/a>).\u00a0\u00a0Biden added $4.3 Trillion in his term (Newsweek<\/a>) .\u00a0\u00a0So $170 Billion a year really isn\u2019t quite as \u201cstaggering\u201d versus $1.1 Trillion a year under Biden or $2.2\u00a0<\/em>trillion a year under Trump.\u00a0\u00a0And Trump\u2019s alma mater, the Wharton School, predicts that his program for the next four years would add another $6 Trillion to the deficit (Wharton<\/a>).<\/p>\n\n\n\n

Stifling Investment and Economic Growth<\/h3>\n\n\n\n

Red Right<\/em> is troubled that \u201c\u2026Harris\u2019s plan (will) stifle investment\u201d.<\/p>\n\n\n\n

Red Right\u00a0<\/em>seems concerned that if lower income workers get an increase in the Child Tax Credit and the Earned Income Credit, that would somehow remove incentives for them to \u201cwork\u201d and cause them to\u00a0\u00a0\u201c\u2026drag down economic output\u201d.\u00a0\u00a0It\u2019s as if folks wouldn\u2019t work as hard if they had some more of their earnings instead of losing them to taxes.\u00a0\u00a0There\u2019s a basic fallacy here:\u00a0\u00a0that the government somehow needs to hammer the working class to pay for something so they \u201cwork hard\u201d.\u00a0\u00a0But the reality is, that, according to the\u00a0Tax Foundation<\/a>, the bottom half of income earners paid only 2.3% of taxes anyway.\u00a0\u00a0So those that would benefit most from child and earned income credits, don\u2019t impact the amount of taxes collected.\u00a0\u00a0<\/p>\n\n\n\n

Is opposition to this is really about making sure workers have to \u201cstruggle\u201d to take care of their kids and their insurance?\u00a0\u00a0As you know, there are lots of people who are working hard just to make it at all.\u00a0\u00a0If they have some additional amounts of their own earned money, they\u2019ll likely spend it, encouraging\u00a0\u00a0economic growth.\u00a0\u00a0Why should those people pay what turns out to be a small fraction of the overall tax load?\u00a0\u00a0Is that what this is about \u2013 keeping the poor impoverished?<\/p>\n\n\n\n

The $25000 First-Time Homebuyer Incentive is a Vote-Buying Scheme<\/h3>\n\n\n\n

First, let\u2019s be clear.  Both Harris and Trump are proposing ideas that would be, in their view, good for the country.  They hope that voters agree, and show that agreement by casting their ballot for one or the other.  So, in a sense, it\u2019s all \u201cvote buying\u201d. <\/p>\n\n\n\n

Harris is proposing a $25000 first time home buyer credit.  She\u2019s also proposing government incentives to build three million new homes (National Low Income Housing<\/a>). The reality is, that the entry cost into the housing market is so high, a substantial number of Americans can\u2019t look forward to ever owning a home. A \u201cstarter\u201d home here in Pataskala, is well over $200,000 (Rocket<\/a>).  <\/p>\n\n\n\n

Instead, they are locked into a cycle of rental, putting money into something that has no financial return. Here in Pataskala, rent is over $1300\/month, a mortgage payment\u2019s worth for a two bedroom apartment that used to cost $700 (Apartment Guide<\/a>) .\u00a0\u00a0It used to be that parents would help their children with down payments.\u00a0\u00a0It was a way to pay their wealth \u201cforward\u201d.\u00a0\u00a0But, with\u00a0\u00a0current housing costs and inflation, for many it’s not possible.\u00a0\u00a0Owning a home is a way to create generational wealth, that can change the financial life for whole generations of people.\u00a0\u00a0<\/p>\n\n\n\n

The Absurdity of Taxing Unrealized Gains<\/h3>\n\n\n\n

Speaking of generational wealth \u2013 let\u2019s talk about \u201cunrealized gains\u201d. (Unrealized gains example:  when a stock is bought at $100, but goes up to $1000. The \u201cgain\u201d of $900 is only realized when it\u2019s sold).  Before we go farther, put that into context:  this is an issue for those with over $100 million in wealth (Smart Asset<\/a>): serious \u201cgenerational wealth\u201d.  <\/p>\n\n\n\n

Having gains of multiple millions in stock or real estate (or art or old Babe Ruth jerseys) is not really \u201cunrealized\u201d, even if it\u2019s not sold.  The value is used to leverage other profit-making measures (as collateral for example).  The point is pretty simple:  we have a tax system designed to allow \u201chiding\u201d of wealth.  So those in the $100 million plus category might have to pay a bit more of their fair-share.  \u201cUnrealized gains\u201d is an income \u201chiding\u201d scheme, that should be \u201couted\u201d.    One of the folks that agree with that is Warren Buffett, with a net worth over $142 Billion (White House \u2013 The Buffett Rule)<\/a>.<\/p>\n\n\n\n

Raising the Corporate Tax Rates \u2013 A self-inflicted Wound<\/h3>\n\n\n\n

The corporate tax rate is currently 21%, a percent less than the rate paid by families making from $100,000 to $200,000.\u00a0\u00a0Raising the corporate tax rate, especially when some of the inflationary pressure was caused by corporations taking windfall advantage of our economy, not only seems \u201cright\u201d, but also fair.\u00a0\u00a0The corporate tax rate was in the 50%\u00a0<\/strong>range in the 1950\u2019s, and even 30% in the Reagan era (Economic Policy Institute<\/a>).\u00a0<\/p>\n\n\n\n

Corporations, benefit from living and operating in the United States.  They should share in the tax burden .The United States did well over the last half of the twentieth century with higher rates; 28% isn\u2019t a \u201cload\u201d too great to bear.  Corporations making millions and billions shouldn\u2019t pay a rate less than a middle class family.<\/p>\n\n\n\n

Stealing Trump\u2019s Proposal:  Eliminating Taxes on Tips<\/h3>\n\n\n\n

\u00a0Yes, I\u2019ll admit it, Trump actually did have a decent idea; not taxing tips (though that certainly looks like a \u201cvote getting scheme\u201d, especially Nevada’s votes).\u00a0\u00a0It is important to note that the Trump proposal might include lawyers and hedge fund managers as \u201ctipped\u201d workers, folks \u201clooking for a loophole\u201d.\u00a0\u00a0\u00a0But\u00a0\u00a0for lower paid workers who depend on tips, it could be a good idea, especially as they are still being taxed on their base wages.\u00a0\u00a0So Harris stealing it doesn\u2019t make it a bad idea, as long as my lawyer and broker can\u2019t call their fees \u201ctips\u201d too (Axios<\/a>).<\/p>\n\n\n\n

Price Controls on Food:  A Communistic Approach<\/h3>\n\n\n\n

What Red Right<\/em> (and others) calls price controls, Harris calls anti-price gouging.  This has happened especially in the grocery industry, where prices climbed 25% post-Covid, helping drive inflation without a commensurate increase in the supply cost.  Harris is not calling for \u201cprice controls\u201d like the 1970\u2019s, Richard Nixon style. (The Republican President actually issued an order freezing prices and wages \u2013 what Red Right <\/em>would call a \u201cCommunistic Approach\u201d). <\/p>\n\n\n\n

But she is calling for Post-Covid profiteers to be reined in, through \u201canti-gouging\u201d legislation (CBS<\/a>).  A huge share of the grocery market is down to just four stores:  Walmart, Kroger, Costco, and Albertsons control over 50% (and Kroger and Albertson\u2019s want to merge).   They can get away with gouging because there\u2019s not enough competition to pressure prices down.  Red Right <\/em>complains that this kind of legislations \u201cstifles competition\u201d, but that competition already is stifled for much of the country with access to only one \u201cbrand\u201d of grocery.<\/p>\n\n\n\n

Final Thoughts<\/h3>\n\n\n\n

People of \u201cgood faith\u201d can have different views on American economics.  Hyperbole like \u201cCommunistic\u201d, \u201cdisaster\u201d, and \u201ccrippling\u201d doesn\u2019t further the discussion, it just enflames passions.  As I see it, the Trump plan is for unfettered capitalism, with corporations and the wealthy \u201ccashing in\u201d.  Harris tries to temper that capitalism and direct some of that wealth to the lower and middle classes, so they can share in the economic prosperity.  <\/p>\n\n\n\n

Democrats and Republicans have had this same argument since the 1960\u2019s; without Communism, or crippling disasters.  America will survive either way, economically.   While I clearly favor the Democratic economic view, the more important issues this year are about Democracy and Freedom.  <\/p>\n\n\n\n

But that\u2019s for a different discussion.<\/p>\n","protected":false},"excerpt":{"rendered":"

A very \u201cRepublican\u201d friend sent me an article from a group called \u201cRed Right Updates\u201d. 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It called the Harris economic plans a \u201cdisaster\u201d and a \u201ccollection of misguided policies that threaten to stifle investment, cripple our economy, and ultimately weaken America\u2026\u201d.   He challenged me to explain \u201cthe Left\u2019s\u201d position.  So here\u2019s my point-by-point \u201crebuttal\u201d.  My guess is that … Continue reading \"Red Right\"","og_url":"https:\/\/dahlman.online\/index.php\/2024\/08\/29\/red-right\/","og_site_name":"Our America - Essays on Politics and American Life","article_publisher":"https:\/\/m.facebook.com\/Dahlmanonline-610417212502642\/","article_author":"https:\/\/m.facebook.com\/Dahlmanonline-610417212502642\/","article_published_time":"2024-08-29T11:32:58+00:00","article_modified_time":"2024-08-29T11:33:01+00:00","og_image":[{"width":480,"height":640,"url":"https:\/\/i0.wp.com\/dahlman.online\/wp-content\/uploads\/2017\/03\/IMG_3564-e1488996194684.jpg?fit=480%2C640&ssl=1","type":"image\/jpeg"}],"author":"Marty Dahlman","twitter_card":"summary_large_image","twitter_creator":"@martydahlman","twitter_site":"@martydahlman","twitter_misc":{"Written by":"Marty Dahlman","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/dahlman.online\/index.php\/2024\/08\/29\/red-right\/#article","isPartOf":{"@id":"https:\/\/dahlman.online\/index.php\/2024\/08\/29\/red-right\/"},"author":{"name":"Marty Dahlman","@id":"https:\/\/dahlman.online\/#\/schema\/person\/5fa8c1b0305cf5f1f3633225843e621c"},"headline":"Red Right","datePublished":"2024-08-29T11:32:58+00:00","dateModified":"2024-08-29T11:33:01+00:00","mainEntityOfPage":{"@id":"https:\/\/dahlman.online\/index.php\/2024\/08\/29\/red-right\/"},"wordCount":1443,"commentCount":0,"publisher":{"@id":"https:\/\/dahlman.online\/#\/schema\/person\/5fa8c1b0305cf5f1f3633225843e621c"},"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/dahlman.online\/index.php\/2024\/08\/29\/red-right\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/dahlman.online\/index.php\/2024\/08\/29\/red-right\/","url":"https:\/\/dahlman.online\/index.php\/2024\/08\/29\/red-right\/","name":"Red Right : Our America - Essays on Politics and American Life","isPartOf":{"@id":"https:\/\/dahlman.online\/#website"},"datePublished":"2024-08-29T11:32:58+00:00","dateModified":"2024-08-29T11:33:01+00:00","breadcrumb":{"@id":"https:\/\/dahlman.online\/index.php\/2024\/08\/29\/red-right\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/dahlman.online\/index.php\/2024\/08\/29\/red-right\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/dahlman.online\/index.php\/2024\/08\/29\/red-right\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/dahlman.online\/"},{"@type":"ListItem","position":2,"name":"Red Right"}]},{"@type":"WebSite","@id":"https:\/\/dahlman.online\/#website","url":"https:\/\/dahlman.online\/","name":"Trump World - Essays on Politics and the Trump Administration","description":"Essays on Politics and Life in Our America","publisher":{"@id":"https:\/\/dahlman.online\/#\/schema\/person\/5fa8c1b0305cf5f1f3633225843e621c"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/dahlman.online\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":["Person","Organization"],"@id":"https:\/\/dahlman.online\/#\/schema\/person\/5fa8c1b0305cf5f1f3633225843e621c","name":"Marty Dahlman","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/i0.wp.com\/dahlman.online\/wp-content\/uploads\/2017\/03\/IMG_3564-e1488996194684.jpg?fit=480%2C640&ssl=1","url":"https:\/\/i0.wp.com\/dahlman.online\/wp-content\/uploads\/2017\/03\/IMG_3564-e1488996194684.jpg?fit=480%2C640&ssl=1","contentUrl":"https:\/\/i0.wp.com\/dahlman.online\/wp-content\/uploads\/2017\/03\/IMG_3564-e1488996194684.jpg?fit=480%2C640&ssl=1","width":480,"height":640,"caption":"Marty Dahlman"},"logo":{"@id":"https:\/\/i0.wp.com\/dahlman.online\/wp-content\/uploads\/2017\/03\/IMG_3564-e1488996194684.jpg?fit=480%2C640&ssl=1"},"description":"I'm Marty Dahlman. After forty years of teaching and coaching track and cross country, I've finally retired!!! I've also spent a lot of time in politics, working campaigns from local school elections to Presidential campaigns.","sameAs":["https:\/\/www.dahlman.online","https:\/\/m.facebook.com\/Dahlmanonline-610417212502642\/","https:\/\/x.com\/martydahlman"]}]}},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dahlman.online\/index.php\/wp-json\/wp\/v2\/posts\/7324","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dahlman.online\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dahlman.online\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dahlman.online\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dahlman.online\/index.php\/wp-json\/wp\/v2\/comments?post=7324"}],"version-history":[{"count":2,"href":"https:\/\/dahlman.online\/index.php\/wp-json\/wp\/v2\/posts\/7324\/revisions"}],"predecessor-version":[{"id":7326,"href":"https:\/\/dahlman.online\/index.php\/wp-json\/wp\/v2\/posts\/7324\/revisions\/7326"}],"wp:attachment":[{"href":"https:\/\/dahlman.online\/index.php\/wp-json\/wp\/v2\/media?parent=7324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dahlman.online\/index.php\/wp-json\/wp\/v2\/categories?post=7324"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dahlman.online\/index.php\/wp-json\/wp\/v2\/tags?post=7324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}