The Daily Parker

Politics, Weather, Photography, and the Dog

Paying taxes will be less fun in Illinois next year

Due to a combination of city, county, regional, state, and federal policies, just about every tax and fee I pay is going up next year. My initial math suggests my Federal taxes will remain almost exactly the same, thanks to the increased individual exemption that covers my itemized deductions only because I'm renting out the flats I own. But my state taxes went up in July by 67%, my property taxes (on those flats) are going up, and even my gas bill is going up.

The Tribune explains how I'm not alone:

[T]he average property tax increase for the owner of a $250,000 home will be an estimated $97. Owners of a home worth $500,000 can expect a $369 tax hike. That’s because the larger homeowners’ exemption shifts the burden of paying property taxes to higher-priced homes and commercial properties.

  • Other tax and fee hikes start sooner. The CTA fare increase of 25 cents per bus and “L” ride goes into effect Jan. 7, raising the price of those rides to $2.25 and $2.50, respectively. For people commuting to and from work 50 weeks a year, that’s $125 more out of their pockets. The cost of a 30-day pass will go up by $5, to $105. Those increases will help fill a hole left by state public transportation funding cuts, CTA officials have said.
  • In February, Metra is boosting fares for one-way tickets by 25 cents. The cost of 10-ride tickets is going up by $4.25, to $7.75. Monthly passes will increase by $9 to $12.50, depending on the length of the trip. The price of $8 weekend passes will rise to $10.
  • Taking an Uber or Lyft in Chicago will cost more too. The start of the year brings a 15-cent increase to the 52 cents already charged for ride-sharing trips. The Emanuel administration expects to collect $16 million for CTA projects.
  • Also taking effect with the new year are higher fees charged to every cell and landline phone billed to a city address. Those fees are going up by $1.10 a month, to $5. The cost to a family with three phone lines is an extra $39.60 a year. The money will be used for emergency services costs and technology upgrades, freeing up about $30 million in general city funds for the city to spend as it sees fit.

Also going up: the city entertainment tax, city vehicle licenses, park and forest-preserve district taxes...the list goes on. It costs a lot to run a city the size of Chicago, and the Federal government under the Republican party is hosing us good. Subsidizing Mississippi and Alabama annoys me, especially when the people I'm subsidizing revere other people who tried to leave the United States so they could preserve human slavery.

A lot of people feel the way I do. My vote won't do much, because I live in a bright-blue state with Democratic representation in both the House and Senate; but in Ohio, Michigan, and Pennsylvania—states that went to Trump by the narrowest of margins—other people are going to be pissed off. The next election is in 313 days. Let's see how it goes.

Who will the Republican tax law help or hurt next November?

Both the WaPo's James Hohmann and TPM's John Judis believe the Republican Party won't suffer as much as people hope after passing their massive giveaway to big corporations. Judis:

I am not a fan of the new tax bill that the Republican Congress passed. It will widen the gap between the wealthy and everyone else and increase the likelihood over a decade or so of another crash. And it contains all kinds of unpleasant ancillary provisions, such as the one killing the Affordable Care Act’s mandate. But I don’t buy the argument – voiced by Democratic pundits, political consultants, and even a few economists – that the bill will doom the Republicans to defeat in 2018 and even 2020. Like many things I read or hear these days from liberals, it’s wish fulfillment disguised as analysis. 

Democrats argue that the bill will be unpopular because it increases inequality by giving huge tax breaks to the rich and corporations. But most American voters don’t object to inequality and to the rich per se. (I wrote a long essay for TPM arguing this two years ago, and it was borne out in the 2016 election.) They object to inequality when a policy is so skewed that everything goes to the rich – when there is nothing in it for them. And they object to inequality when, as in 1932 or 2008, they see it conveying favor on a group that is responsible for wrecking the economy. But neither condition is likely to hold in this case.

Hohmann, yesterday:

THE BIG IDEA: The best thing going for Republicans right now is low expectations.

[H]ere’s the truth: 8 in 10 Americans will pay lower taxes next year, according to the nonpartisan Tax Policy Center’s analysis of the final bill. Only 5 percent of people will pay more next year. Mostly, those are folks who earn six figures and own expensive houses in places with high local taxes, such as New York and California.

Bottom line: Nancy Pelosi says, “This is Armageddon.” But the sky will not fall. At least not next year.

To be sure, over the long-term, this bill may set in motion a fiscal disaster a la Kansas by exploding the national debt and forcing painful cuts to popular programs, including entitlements. The rich and corporations do get the vast majority of the benefits. The new code will cause confusion and uncertainty. It will also worsen income inequality. And there’s a chance that it gives the economy a sugar high that forces the Federal Reserve to raise rates faster than planned and hastens a recession.

Overnight, though, Hohmann got a lot of pushback from Democrats:

In the two-and-a-half years I’ve been writing the 202, I’ve never received so much pushback. Top operatives at all the relevant Democratic committees and outside groups, as well as the most prominent progressive pollsters in town and campaign managers in the states, argued passionately that the tax bill is not going to become a winner for the GOP. They shared a battery of private polling and reports on focus groups to make their case.

“Calling this thing a win because Republicans finally got something done is like saying the captain of the Titanic won when he successfully found that reclusive iceberg,” said Jesse Ferguson, the former director of the Democratic Congressional Campaign Committee’s independent expenditure arm. 

1. Most folks who pay lower taxes will not save enough to care.

I noted yesterday that 8 in 10 Americans will pay lower taxes next year, according to the nonpartisan Tax Policy Center’s analysis of the final legislation. Only 5 percent of people will pay more next year, and mostly those are folks who earn six figures and own expensive houses in places with high local taxes.

Democratic pollster Geoff Garin of Hart Research replied that 80 percent of taxpayers will see an increase of less than 2 percent in their after-tax income, and it is not until you get to the 95th percentile that the after-tax income benefits are much greater. “There is no history of voters being grateful for tax cuts that small,” he said.

One thing is certain: Nobody knows nothing. But I'm pretty optimistic about November 6th.

Welcome to the 2010s!

I'm on a train, using my mobile phone to tether my laptop to the Intertubes. I know this is an old technology, and also the reason I have unlimited data on my mobile, but I still love this stuff.

Things I'm reading:

Now approaching...Highwood! And soon off to my meeting.

Blah day

I'm under the weather today, probably owing to the two Messiah performances this weekend and all of Parker's troubles. So even though I'm taking it easy, I still have a queue of things to read:

I will now...nap.

Too dishonest even to evaluate

As the Washington Post rounds up their biggest Pinocchios of 2017, they've encountered an unprecedented problem:

Usually, this is an easy task, as we sort through the craziest Four-Pinocchio claims on issues of substance made by members of both parties. But this is the era of Trump, and nothing is ever easy. If we were not careful, we’d end up with an all-Trump list.

After all, there has never been a serial exaggerator in recent American politics like the president. He not only consistently makes false claims but also repeats them, even though they have been proved wrong. He always insists he is right, no matter how little evidence he has for his claim or how easily his statement is debunked. Indeed, he doubles down when challenged.

When we last updated our database of false or misleading claims made by the president, the number stood at 1,628 after 298 days. That’s an average of 5.5 per day.

Given the profusion of Trump claims, in two cases we have wrapped some of his statements into all-around categories: flip-flops and taking all credit. Even so, he still ended up with six of the “biggest Pinocchios,” topping his 2016 record (when he received five.)

That makes their inclusion of a few Democrats seem even more like false equivalence, which is how we got here to begin with.

Occam's razor

I keep wondering if the Trump administration keeps doing the things its doing to destroy the Republican Party because they're secretly Democrats. Mark Theissen hints at this, but sarcastically:

Stephen K. Bannon and his alt-right movement have helped accomplish something no one in a quarter-century has been able to do: get a Democrat elected in the state of Alabama.

Alabama is one of the most reliably Republican states in the country. The last time a Democrat was elected was in 1992, and no Democrat has won more than 40 percent of the vote in a Senate race there since 1996. The closest election in recent memory was in 2002, when Jeff Sessions won reelection by a razor-thin margin of 19 points. Sen. Richard Shelby has won his last three elections by 35 points, 30 points and 28 points, respectively. So it takes a special kind of stupid to pick a candidate who can lose to a Democrat in Alabama.

Not just any Democrat, but an uncompromising pro-abortion Democrat.

Ah, but you see the last sentence of the second paragraph. And that hits on the logical test wherein you pick the simplest explanation for the facts at hand. In this case, it's what my Wills professor called "the omnibus explanation," or the thing that explains everything when other explanations come up wanting.

Stupidity.

Think about previous intellectual midgets who have served as President and the current occupant shows up impressively. Harding? A giant by comparison. Buchanan? Brilliant. McKinley? Magisterial.

What irony if we avoid Armageddon because Donald Trump is the stupidest person ever elected President of the United States.

The threats to our democracy

New Republic has excerpted How Democracies Die, by Steven Levitsky and Daniel Ziblatt, to be published this January. Salient points:

If constitutional rules alone do not secure democracy, then what does? Much of the answer lies in the development of strong democratic norms. Two norms stand out: mutual toleration, or accepting one’s partisan rivals as legitimate (not treating them as dangerous enemies or traitors); and forbearance, or deploying one’s institutional prerogatives with restraint—in other words, not using the letter of the Constitution to undermine its spirit (what legal scholar Mark Tushnet calls “constitutional hardball”).

Donald Trump is widely and correctly criticized for assaulting democratic norms. But Trump didn’t cause the problem. The erosion of democratic norms began decades ago.

In 1979, newly elected Congressman Newt Gingrich came to Washington with a blunter, more cutthroat vision of politics than Republicans were accustomed to. Backed by a small but growing group of loyalists, Gingrich launched an insurgency aimed at instilling a more “combative” approach in the party.

Though few realized it at the time, Gingrich and his allies were on the cusp of a new wave of polarization rooted in growing public discontent, particularly among the Republican base. Gingrich didn’t create this polarization, but he was one of the first Republicans to sense—and exploit—the shift in popular sentiment. And his leadership helped to establish “politics as warfare” as the GOP’s dominant strategy.

If, 25 years ago, someone had described to you a country where candidates threatened to lock up their rivals, political opponents accused the government of election fraud, and parties used their legislative majorities to impeach presidents and steal Supreme Court seats, you might have thought of Ecuador or Romania. It wouldn’t have been the United States of America.

The rest is history. Let's just hope that it's the history of a successful republic, not a Weimar one.

Stuff to review

I've been in frenetic housecleaning mode today, since it's the first work-from-home Wednesday I've had in...let me see...10 weeks. And apparently I last had my housekeeping service here 16 weeks ago. (It wasn't that bad; I do clean up occasionally.)

The activity and actually having to do my job has led me to miss a couple of news stories, which I will now queue up to read:

  • Former President Obama spoke at the Economic Club of Chicago last night, and said, at one point, "American democracy is fragile, and unless care is taken it could follow the path of Nazi Germany in the 1930s."
  • Citylab outlines how the tax bill now working its way through reconciliation between the House and Senate will be really, really bad for cities. As if we didn't know. As if that wasn't a feature, rather than a bug.
  • And it doesn't take a Nobel-winning economist to understand the chutzpah behind the Republican Party's bait-and-switch on taxes and deficits. "Now, to be fair, there are some people in America who get lots of money they didn’t lift a finger to earn — namely, inheritors of large estates." How true.
  • In more neutral news, the Atlantic has the the year in photos (part 1), with more on the way later this week. I especially like the Turkish seagull (#22).
  • Finally The Daily WTF has an example of life imitating satire, and it's sad and funny all at the same time.

I'm now going to throw out all the empty boxes in my office closet, though it pains me to do so. After all, someday I might need to return this pair of wired headphones from 1998...

Shut up about impeachment

Jeet Heer states what should be obvious: if Democrats try to impeach the president and fail, it will completely legitimize his presidency.

The practical problem is that for impeachment to be meaningful, Trump would not just have to be impeached by the House of Representatives (which requires a simple majority) but also removed by the Senate (requiring a two-thirds vote). It’s easy to imagine a scenario where the Democrats win the House of Representatives in 2018 and have the necessary votes for impeachment. But even in that best-case scenario, in which Democrats win every toss-up race for the Senate, they would still be well short of the votes they need in the Senate. Which means that kicking Trump out of the White House by necessity has to be a bipartisan effort with significant Republican buy-in.

The Republican Party has proven that they will tolerate just about anything from Trump. They continue to stand with him despite his demented tweeting, the political support he’s given to Roy Moore, his repeated expressions of contempt for the justice system, and his cavalier threats to launch a nuclear war. Unless Robert Mueller finds the possibly apocryphal “pee tape,” Republicans are likely to remain loyal to Trump. In fact, there’s a real possibility that even if the “pee tape” is real and widely viewed, Trump would still remain politically sacrosanct among his own party.

The most promising route for stopping Trump, then, is through the ballot box.

This means that we're probably stuck with him for 1142 more days, but if we win back the legislature, we can thwart him nearly completely.

Really, he's nuts

I'd rather have an incompetent, sane person as president (see, e.g., most of the past Republican presidents) than an incompetent, insane one. But ya gotta dance with the one that brung ya:

And why would the Republican Party allow all of this to continue? Gosh, who can say.