But it helps the rich

It seems the Trump administration is contemplating a tax break so corporations will repatriate cash:

Drug makers are promising to create tens of thousands of American jobs if President Donald Trump follows through on his promise to give them a big tax break if they “repatriate” cash they’ve stashed overseas.

The article points to a Senate report: repatriatingoffshorefundsreportoct202011wexhibitsfinal. Here are the conclusions in the executive summary:

1. U.S. Jobs Lost Rather Than Gained. After repatriating over $150 billion under the 2004 American Jobs Creation Act (AJCA), the top 15 repatriating corporations reduced their overall U.S. workforce by 20,931 jobs, while broad-based studies of all 840 repatriating corporations found no evidence that repatriated funds increased overall U.S. employment.
2. Research and Development Expenditures Did Not Accelerate. After repatriating over $150 billion, the 15 top repatriating corporations showed slight decreases in the pace of their U.S. research and development expenditures, while broad-based studies of all 840 repatriating corporations found no evidence that repatriation funds increased overall U.S. research and development outlays.
3. Stock Repurchases Increased After Repatriation. Despite a prohibition on using repatriated funds for stock repurchases, the top 15 repatriating corporations accelerated their spending on stock buybacks after repatriation, increasing them 16% from 2004 to 2005, and 38% from 2005 to 2006, while a broad-based study of all 840 repatriating corporations estimated that each extra dollar of repatriated cash was associated with an increase of between 60 and 92 cents in payouts to shareholders.
4. Executive Compensation Increased After Repatriation. Despite a prohibition on using repatriated funds for executive compensation, after repatriating over $150 billion, annual compensation for the top five executives at the top 15 repatriating corporations jumped 27% from 2004 to 2005, and another 30%, from 2005 to 2006, with ten of the corporations issuing restricted stock awards of $1 million or more to senior executives.
5. Only a Narrow Sector of Multinationals Benefited. Repatriation primarily benefited a narrow slice of the American economy, returning about $140 billion in repatriated dollars to multinational corporations in the pharmaceutical and technology industries, while providing no benefit to domestic firms that chose not to engage in offshore operations or investments.
6. Most Repatriated Funds Flowed from Tax Havens. Funds were repatriated primarily from low tax or tax haven jurisdictions; seven of the surveyed corporations repatriated between 90% and 100% of their funds from tax havens.
7. Offshore Funds Increased After 2004 Repatriation. Since the 2004 AJCA repatriation, the corporations that repatriated substantial sums have built up their 5 offshore funds at a greater rate than before the AJCA, evidence that repatriation has encouraged the shifting of more corporate dollars and investments offshore.
8. More than $2 Trillion in Cash Assets Now Held by U.S. Corporations. In 2011, U.S. corporations have record domestic cash assets of around $2 trillion, indicating that that the availability of cash is not constraining hiring or domestic investment decisions and that allowing corporations to repatriate more cash would be an ineffective way to spur new jobs.
9. Repatriation is a Failed Tax Policy. The 2004 repatriation cost the U.S. Treasury an estimated net revenue loss of $3.3 billion over ten years, produced no appreciable increase in U.S. jobs or research investments, and led to U.S. corporations directing more funds offshore.

So it worked very well for the rich. I can see why the Trump administration would be for it.

Let’s cut jobs so we can increase pollution

In a shocking move (or, you know, the opposite of that), the Trump administration has already taken down the page on climate change at whitehouse.gov (I’m taking this from the Vox article, because I’m not going to link to a Trump anything today):

For too long, we’ve been held back by burdensome regulations on our energy industry. President Trump is committed to eliminating harmful and unnecessary policies such as the Climate Action Plan and the Waters of the U.S. rule. Lifting these restrictions will greatly help American workers, increasing wages by more than $30 billion over the next 7 years.

Sound energy policy begins with the recognition that we have vast untapped domestic energy reserves right here in America. The Trump Administration will embrace the shale oil and gas revolution to bring jobs and prosperity to millions of Americans. We must take advantage of the estimated $50 trillion in untapped shale, oil, and natural gas reserves, especially those on federal lands that the American people own. We will use the revenues from energy production to rebuild our roads, schools, bridges and public infrastructure. Less expensive energy will be a big boost to American agriculture, as well.

The Trump Administration is also committed to clean coal technology, and to reviving America’s coal industry, which has been hurting for too long.

Well, let’s look at the job report for the energy sector:

The 2017 U.S. Energy and Employment Report (USEER) finds that the Traditional Energy and Energy Efficiency sectors today employ approximately 6.4 million Americans. These sectors increased in 2016 by just under 5 percent, adding over 300,000 net new jobs, roughly 14% of all those created in the country.

Hmm, looks like the energy sector is doing ok already.

Electric Power Generation and Fuels technologies directly employ more than 1.9 million workers. In 2016, 55 percent, or 1.1 million, of these employees worked in traditional coal, oil, and gas, while almost 800,000 workers were employed in low carbon emission generation technologies, including renewables, nuclear, and advanced/low emission natural gas. Just under 374,000 individuals work, in whole or in part, for solar firms, with more than 260,000 of those employees spending the majority of their time on solar. There are an additional 102,000 workers employed at wind firms across the nation. The solar workforce increased by 25% in 2016, while wind employment increased by 32%.

The 2017 USEER also shows that 2.2 million Americans are employed, in whole or in part, in the design, installation, and manufacture of Energy Efficiency products and services, adding 9133,000 jobs in 2016. (Energy Efficiency employment is defined as the production or installation of energy efficiency products certified by the Environmental Protection Agency’s ENERGY STAR® program or installed pursuant to the ENERGY STAR® program guidelines or supporting services thereof). Almost 1.4 million Energy Efficiency jobs are in the construction industry. In addition, construction firms involved in the Energy Efficiency sector have experienced an increase in the percentage of their workers who spend at least 50% of their time on Energy Efficiency-related work, rising from 64.8 percent in 2015 to 74.0 percent in 2016. Finally, an improved USEER survey methodology identified almost 290,000 manufacturing jobs, producing Energy Star® certified products and energy efficient building materials in the United States.

Hmm, it looks like clean energy production is doing really well. It seems to be the wave of the future. Of course, this means Trump will concentrate on oil and gas, thus not only increasing the amount of pollution but allowing other countries to jump ahead in the sectors of energy production that are growing by leaps and bounds. Good job.

Republicans want to cut, Medicare, ACA, Medicaid, and Social Security

Let’s see what Republicans plan now that they hold the three parts of government:

Amid all the hand-wringing over Republican plans to eviscerate Medicare and Medicaid and repeal the Affordable Care Act, it shouldn’t be overlooked that the GOP has the knives out for Social Security too.

Johnson’s “Social Security Reform Act” changes the program’s benefit formula to provide modest benefit increases for the lowest-earning workers in the system— those who earned up to an annual average of about $22,105 over their lifetimes in inflation-indexed pay — with cuts for everyone else ranging from 17% to as much as 43%, compared with currently scheduled benefits, by 2080.

The act would cut way back on cost-of-living increases for retirees. It would do this by cutting out cost-of-living raises entirely for retirees earning adjusted gross income of more than $85,000 ($170,000 for couples) starting in December 2018, and using the chained consumer price index to calculate the COLA for all others. (The income threshold would be adjusted for inflation.)

Finally, the measure also raises the full retirement age, which is now pegged to reach 67 by 2022, to 69 by 2030. this means that workers taking early retirement, which is permitted as soon as age 62, would face a steeper cut in annual benefits for starting early.

Hey, that’s great news for all the working-class people that were so upset that they voted for Trump … if they wanted to make their lives worse.

Anyway, let’s move on to Russia:

Trump’s team lashed out at the agencies after The Washington Post reported that the CIA believed that Russia had intervened to undercut Clinton and lift Trump, and The New York Times reported that Russia had broken into Republican National Committee computer networks just as they had broken into Democratic ones, but had released documents only on the Democrats.

There are even some Republicans who say this is a bad thing:

The Republicans who lead the congressional committees overseeing intelligence, the Pentagon and the Department of Homeland Security take the opposite view. They say that Russia was behind the election meddling, but that the scope and intent of the operation need deep investigation, hearings and public reports.

“We cannot allow foreign governments to interfere in our democracy,” Rep. Michael McCaul, R-Texas, who is the chairman of the Homeland Security Committee and was considered by Trump for secretary of Homeland Security, said at the conservative Heritage Foundation. “When they do, we must respond forcefully, publicly and decisively.”

Of course Trump hasn’t been going to many of the intelligence briefings so he knows more about what’s going on than those that actually go. I assume that’s his argument.

Fun time to be an American and Trump isn’t even President yet.

What cutting costs means

I can see that people on the MBTAs Control Board don’t know how things work:

When the two cleaning companies contracted by the Massachusetts Bay Transportation Authority cut costs this fall, they slashed the hours — and in the process, health insurance — for dozens of their employees, the agency’s general counsel said Monday.

For months, workers have protested the changes before the MBTA’s fiscal and management control board, saying many of their fellow employees have lost health benefits and don’t have enough cleaning supplies to do their job.

John Englander, general counsel for the MBTA and the state Transportation Department released figures confirming that close to 80 workers for the two companies, about 25 percent of the staff, were laid off or lost health insurance when their hours were reduced.

This came out of this:

Shortsleeve told Boston Public Radio Friday that he believes the administration of Charlie Baker’s predecessor, Deval Patrick, overpaid the companies the MBTA contracts with to clean its stations. He thinks the stations can be maintained for $36.5 million, instead of the $53.1 million that has actually been paid out.

“For the last three years, the prior administration, for a variety of reasons, had been overpaying against those contracts as opposed to enforcing them on a performance basis,” Shortsleeve said. “What we’ve done, and what we’ll start on August 31, is simply to enforce those contracts on a performance basis, which means those companies are on the hook.”

Shortsleeve said that the MBTA does not employ janitors directly, and so any resulting layoffs will be the decision of the cleaning companies the agency contracts with and their labor unions–not the MBTA’s.

The reason they added money to the contract the last time was the private companies made big cuts in pay and benefits last time. This means that Brian Shortsleeve agreed to these cuts knowing it would lead to layoffs and cuts in benefits and he didn’t care.

It also comes straight out of the attitude of one Charlie Baker:

“I don’t care if a service is provided publicly or privately. What I care about is performance, productivity,” and that public money is “well spent,” Baker said.

Notice there’s nothing about treating employees well. He doesn’t care.

Corruption, Donald Trump style

This past week has been a showcase for how Donald Trump does business. He settled in the suit against Trump University:

Phony is right; one pillar of Schneiderman’s lawsuit was that Trump had not even bothered to get his “university” licensed by New York state as a bona fide educational institution.

Trump University, it will be recalled, was pitched to the unwary as an opportunity to learn “the Trump process for investing in today’s once-in-a-lifetime real estate market” from a cadre of Trump’s “hand-picked” instructors. Schneiderman alleged that this was false. Of the instructors, “not a single one was ‘handpicked’ by Donald Trump.” Some had little real-estate experience at all, and some actually had gone bankrupt in the business.

We also find that his ‘charity’ broke the law:

President-elect Donald Trump’s charity has admitted that it violated IRS regulations barring it from using its money or assets to benefit Trump, his family, his companies, or substantial contributors to the foundation.

The admissions by the Donald J. Trump Foundation were made in a 2015 tax filing made public after a presidential election in which it was revealed that Trump has used the charity to settle lawsuits, make a $25,000 political contribution and purchase items such as a painting of himself that was displayed at one of his properties.

We also find the Donald thinks that Presidents are allowed to be corrupt:

He declared that “the law’s totally on my side” when it comes to questions about conflict of interest and ethics laws. “The president can’t have a conflict of interest.”

He said it would be extremely difficult to sell off his businesses because they are real estate holdings. He said that he would “like to do something” to address ethics concerns, and he noted that he had turned over the management of the businesses to his children.

But he insisted that he could still have business partners into the White House for grip-and-grin photographs. He said that critics were pressuring him to go beyond what he was willing to do, including distancing himself from his children while they run his businesses.

“If it were up to some people,” he said, “I would never, ever see my daughter Ivanka again.”

Trump rejected the idea that he was bound by federal anti-nepotism laws against installing his son-in-law, Jared Kushner, in a White House job.

And it seems that the people with him are following his lead:

Donald Trump’s chief White House strategist Stephen K. Bannon accepted $376,000 in pay over four years for working 30 hours a week at a tiny tax-exempt charity in Tallahassee while also serving as the hands-on executive chairman of Breitbart News Network.

During the same four-year period, the charity paid about $1.3 million in salaries to two other journalists who said they put in 40 hours a week there while also working for the politically conservative news outlet, according to publicly available documents filed with the Internal Revenue Service.

Donald Trump does corruption bigly.

A conundrum

The conventional wisdom (which is often wrong, but I’m too lazy to look this up) is that Donald Trump did well among people who are worried about stagnant wages, loss of benefits, and the loss of jobs overseas. This is why he did better with union households than the last few Republican candidates.

There is one set of groups whose purpose is to protect workers–unions.

And Donald Trump and the newly ascendant Republican Party are anti-union:

Trump has expressed support for so-called right-to-work legislation, which allows workers to avoid paying union dues. Republican leaders in Congress have consistently sought such a change at the national level.

Among his concerns, he listed a Supreme Court case this year in which public-sector unions scored a victory related to funding organized labor – but only because the court deadlocked 4-4. The appointment of a new conservative judge by Trump to replace the late Justice Antonin Scalia could change that.

in September the Obama administration finalized an executive order requiring federal contractors to provide sick leave to workers, as well as rules expanding the types of data employers are required to provide on pay. A separate Labor Department rule expanding which employees are eligible for overtime pay is scheduled to take effect next month.

Those actions drew criticism from business groups, and all could be reversed under a Trump administration.

Steven Bernstein, a partner at law firm Fisher Phillips, which represents employers, said the Trump administration and Congress may also target recent NLRB rulings that allowed workers to picket on private property, expanded the type of worker activity protected by federal labor law and gave graduate students the right to unionize.

“It’s also fair to assume that Trump will be inclined to repeal a host of executive orders supporting unions,” particularly rules that apply to federal contracts, Bernstein said in a statement.

I guess I don’t understand how these people think: they are worried about their jobs, benefits, and pay so they vote for someone who is against the groups that are fighting for workers? Do they think that businesses will just give them higher pay and better benefits out of the goodness of their hearts?

How could anyone have foreseen these things?

Donald Trump put xenophobia at the center of his campaign and was explicitly racist and sexist. If you voted for him, you voted for things like this:

In the wake of Donald Trump’s election, reports of racist incidents are emerging from the nation’s schools and universities, including students who chanted ‘‘white power’’ and called black classmates ‘‘cotton pickers.’’

Reporting by The Associated Press and local media outlets has identified more than 20 such encounters beginning on Election Day, many involving people too young to cast a ballot.

Who could have guessed that many of Trump’s supporters were racists and xenophobes? I’m sure you’ll be surprised to learn that all of the senior executives on his transition team are white.

This is also in the category of the obvious:

The new inner circle at the transition offices will direct the activities of dozens of corporate consultants, lobbyists, and other specialists who will be responsible for recommending candidates for agency jobs across the breadth of the federal government. Some of those advisers come from industries for which they are now in charge of finding top regulators.

Go back to that list of people on the transition team:

Ms. Mercer, the daughter of hedge-fund executive Robert Mercer

Mr. Mnuchin, the chief executive of the Dune Capital Management fund, is a longtime banker and former Goldman Sachs executive who has since helped arrange billions in financing for studios in Hollywood.

Mr. Scaramucci is the founder of a hedge fund called SkyBridge Capital

Mr. Thiel is a Silicon Valley billionaire and co-founder of PayPal.

Now look at this:

A member of the Trump transition team told Reuters there were more than 100 people now involved in developing “white papers” on what regulations to roll back after Jan. 20. Some environmental measures and a rule requiring retirement advisers to act in their clients’ interests could be among the first on the chopping block, an industry lobbying source said.

People voted for Trump because he was anti-establishment and would go harder against the moneyed groups than Hillary Clinton. Donald Trump is PART of the moneyed establishment, so, of course, he’s going to help the moneyed establishment. People are such idiots.

Previous Older Entries

%d bloggers like this: