• The Republican Tax Proposal: A Quick Summary

    Articles chosen with care. Your comments welcomed.
    Linked articles in bold purple

    ◆ Republicans roll out their tax plan. Here are the key provisions

    The Wall Street Journal (subscription) reports:

    Business: 

    • Rates permanently drop from 35% to 20%, with lots of other changes in deductibility
    • One-time tax of 12% to repatriate overseas profits, returning them to US

    Individuals:

    • Reduces seven individual income tax brackets to four at 12%, 25%, 35% and 39.6%.
    • Top tax bracket set for married couples earning $1,000,000 per year and individuals earning $500,000.
    • Bottom tax bracket extends up to $90,000 for couples and $45,000 for individuals.
    • The proposal doesn’t change the top tax rates on capital gains and dividend income.
    • Keeps 401(k) rules intact
    • Nearly doubles individual standard deduction to $24,400 for married couples and $12,200 for singles in 2018.
    • Increases child tax credit from $1,000 in 2017 to $1,600 plus $300 for each taxpayer, spouse and non-child dependents.
    • Places new limit on home mortgage-interest deduction at loans up to $500,000, down from $1,000,000, but existing loans would be grandfathered.
      • Comment: Big impact on expensive homes, especially hitting NYC, San Francisco, Boston, and wealthy suburbs
    • Keeps estate-tax. Sets exemption at $5.6 million per person and $11.2 million per married couple. Repeals the tax in 2024.
    • Repeals the alternative minimum tax
    • Repeals an itemized deduction for medical expenses.
    • Repeals deduction for student-loan interest.
    • State tax deduction eliminated; local tax deduction changed (link here)

    Families would also no longer be able to deduct their state income taxes from their federal taxable income, another change that would have a particular impact on places like New Jersey and New York, where state taxes are higher than in other areas. Taxpayers will be able to deduct their property taxes up to $10,000. –Washington Post

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  • ZipDialog Roundup for Saturday, May 27

    Articles chosen with care. Comments welcomed. Linked articles in bold purple

    ◆ Comment: Trump’s Trip in a Nutshell 

    • Saudi: Completely reverses Obama’s disastrous tilt toward Iran, reorients US policy to fight Iran and terrorism, makes a promising effort to incorporate a large coalition of Muslim states in the fight; good speech, too
    • Israel: Hard to say whether the Palestinian-Israel talks will go anywhere; what Trump did in Saudi does set a positive context, but it is still a stretch; the negatives are that Iran, Hezbollah, and Hamas will do everything they can to stop it, and the Palestinians have no effective government to make peace with, nor has their population come to grips with the far-reaching and permanent concessions they will have to make; the Israelis have no confidence that a peace deal would be adhered to or give them more security
    • NATO: Telling the Europeans the hard truth that they need to pay up is good. What’s bad is Trump’s failure to restate the core principle of NATO, that an attack on one is an attack on all (Article 5). That omission could send a catastrophic signal to Russia about the vulnerable Baltic states, which are NATO members. The only reasonable explanation is that Trump is signaling the Europeans that, if you don’t pay up, you cannot expect us to treat you as full alliance partners. Very risky business.

     Jared Kushner’s talk with Russians during transition included possibility of establishing back channel to discuss issues such as Syria  (Washington Post)

    Jared Kushner and Russia’s ambassador to Washington discussed the possibility of setting up a secret and secure communications channel between Trump’s transition team and the Kremlin, using Russian diplomatic facilities in an apparent move to shield their pre-inauguration discussions from monitoring, according to U.S. officials briefed on intelligence reports. . . .

    The meeting also was attended by Michael Flynn, Trump’s first national security adviser.

    The White House disclosed the meeting only in March, playing down its significance. But people familiar with the matter say the FBI now considers the encounter, as well as another meeting Kushner had with a Russian banker, to be of investigative interest.

    Kislyak reportedly was taken aback by the suggestion of allowing an American to use Russian communications gear at its embassy or consulate — a proposal that would have carried security risks for Moscow as well as the Trump team. –Washington Post

    Comment: Initial public interest has focused on the idea of a “back channel.” That’s not what’s important here; back channel communications are common. What’s important here is two things. First, the idea of using the Russians’ equipment to communicate this is amazingly amateurish and reckless (or at least at seems that way to me, as a non-professional in secret communications with adversaries). This scheme was probably Flynn’s misjudgment and Kushner’s inexperience. Second, it says the Trump team was extremely concerned the Obama administration was monitoring everything they had to figure out a different way to communicate securely.

    A third issue is bound to come up. What did they want to talk about? If they were talking about Syria, you could criticize them for undermining the sitting president. If they were doing anything that affected the business interests of private parties–and there is no indication they were–then that would be corruption.

     Hillary reappears at Wellesley Commencement, bitter, and attacking Trump (Washington Post)

    Comment: This has to be a Republican plot. It has to be.

    Only the Republicans could possibly gain from having Hillary out there hectoring the crowds, her shrill voice and tone-deaf delivery proving she still cannot give a decent speech, despite her having received tens of millions for giving them. (That’s a cruel joke, of course. She was paid because she and Bill provided access to power. It was a corrupt, rent-extraction game on a vast scale.)

    For Democrats, the real problem is that she reminds people of the none-too-glorious past and makes it harder for the party to develop new faces for the future. To recharge things, the Democrats need some new voices. It would help if they were not yet living in a retirement community on Social Security and a Reverse Mortgage.  

     US, worried about North Korea, plans a test shoot-down of ICBM  (ABC)

    Comment: The dangers from North Korean nukes are real and present. Their last test was a solid-fuel rocket (which means it can be launched quickly) and went to a very high altitude (which means it can already hit targets as far away as Guam).

    To kill these intercontinental missiles, which leave the atmosphere, is different from killing shorter-range missiles.

    The US has been working on this incredibly complex technical task since Reagan proposed the Strategic Defense Initiative (Star Wars). The latest iteration is what they will be testing.

    There is a partisan-political dimension here, too, aside from the need to fund the program. Now that America needs a serious anti-missile defense to protect against a North Korean attack on the continental US, people might want to look back and ask who has opposed, undermined, and underfunded that research at every stage over the past three decades. These political opponents, unlike North Korean missiles, won’t be especially hard to identify.

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