“exempting tips from income taxes would increase the deficit, create some weird economic incentives, and unfairly cut taxes for a small subset of workers while not doing much to help the majority of Americans or grow the economy.”
…
“Alex Muresianu, a senior policy analyst at The Tax Foundation, spells out in detail why that’s the case. He compares two hypothetical low-income service sector workers: a cashier and a waitress, both of whom earn $34,000 annually. Under the current tax code, both have the same baseline tax liability (roughly $2,000) even though about half of the waitress’s earnings are via tips.
If those tips are exempted from income taxes, the cashier still owes that $2,000. The waitress, meanwhile, owes just $600.
Harris should have to explain why she thinks it’s fair to ask some low-income workers to pay tax bills that will be two or three times higher than other workers who earn the same amount—because that’s what she is proposing here.”
“Those laws create a black market in which the composition and potency of drugs is uncertain and highly variable. They also push traffickers toward highly potent drugs such as fentanyl, which are easier to conceal and smuggle. As a result, drug users like Gentili typically don’t know exactly what they are consuming, which magnifies the risk of a fatal mistake. The “poisoning” that Peace and Caban decried therefore is a consequence of the policies they were proudly enforcing in this very case.”
“trade policy. Trump’s protectionist stance is well-known, with his administration imposing tariffs on a wide range of goods, particularly from China. He has since announced that he would like to impose an across-the-board 10 percent and then 20 percent tariff on imports to the U.S., on top of the those already in place.
But Harris’ stance is hardly better. She has embraced a “worker-centered” trade policy that looks suspiciously similar to Trump’s “America First” approach. Both emphasize protecting existing American jobs and industries, even at the cost of higher prices for beleaguered consumers, fewer resources to start new firms that will lead to more opportunity for the next generation of workers, and reduced economic efficiency. And let’s not forget that during the last four years, the Biden-Harris administration has imposed its fair share of tariffs while keeping many of Trump’s.”
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“Both sides want to subsidize homeownership. The Republican platform advocates for the government to “promote homeownership through Tax Incentives.” The Harris campaign has announced a $25,000 subsidy for first-time homebuyers. Both plans would subsidize housing demand, thus putting upward pressure on housing prices. Great for people who already own homes; not so great for the new homebuyers themselves.”
…
“Both Harris and Trump represent variations on a theme of big, fiscally irresponsible, hyper-interventionist government.”
“Donald Trump called for rolling back part of his signature tax law Tuesday, suggesting he would seek to reinstate the state and local tax deduction, commonly known as SALT, that he controversially capped in the 2017 legislation.
In a Truth Social post ahead of his trip to New York’s Long Island, the former president wrote that he would “get SALT back” and “lower your Taxes” if he returns to the White House in January.
Trump didn’t elaborate or get specific. But the statement appears to be the first time that Trump has called for rolling back a piece of his biggest legislative achievement, a law that he has also called for extending next year when major portions of it are set to expire.
The 2017 law capped the previously unlimited federal deduction for state and local taxes at $10,000 per filer. The policy hit hardest for Americans in high-tax blue states — especially New York, New Jersey and California — who itemize their deductions. Democrats, who represent most of those areas, fiercely objected at the time, accusing the GOP of using tax policy to wage a culture war. Some Republicans in those states also say the $10,000 cap should be lifted.
Trump’s comment marked the latest in a series of seemingly impulsive policy comments that have turned heads within his party. Most Republicans oppose an expansion of the “SALT” deduction and have criticized Democrats for pushing to lift the $10,000 cap.”
…
“Despite Trump’s comments, it’s far from clear a Republican-led Congress would lift the SALT cap. Earlier this year, a group of House Republicans blocked their party from allowing a vote pushed by New York GOP members to expand the SALT deduction.”
“GOP state attorneys general, as well as many of their Democratic counterparts, have moved to stop companies from charging what they view as exorbitant increases in the cost of some goods in certain circumstances.
In Texas, Attorney General Ken Paxton, a Republican, sued a large egg supplier for raising prices by about 300 percent at the height of the pandemic lockdowns in 2020.
Kris Kobach, the Republican attorney general of Kansas, is suing a large natural gas supplier over allegations that it gouged consumers in the aftermath of a 2021 winter storm. And in storm-prone Florida, state officials widely publicize a law that prohibits sharp price increases in essential items during emergencies.
“Nobody likes to be gouged when they’ve lost their roof,” said Trish Conners, a former chief deputy attorney general of Florida now in private practice at the firm Stearns Weaver Miller. The state laws address the “fundamental public safety role that state AGs have, and it’s largely bipartisan. You don’t see too much difference between AGs in that regard.”
The state laws underscore some of the benefits and challenges that Harris may face in selling her plan. It is broadly popular for politicians to shield consumers from excessive prices — even if many economists disagree with the approach. But at the same time, most states have limited their intervention in the market to a far narrower set of circumstances, and Harris’ plan for a national approach would likely represent a major expansion of the role of government in prices.
Some 37 states have laws to address price gouging, according to the National Conference of State Legislatures. Most of the laws have specific triggers — such as a state of emergency or disaster — and prohibit sellers of certain essential goods from jacking up prices beyond a certain threshold. Some states have a numerical threshold of, say, 15 or 25 percent, while others have vaguer prohibitions on “excessive” or “unconscionable” increases.
Florida Republican Attorney General Ashley Moody vowed to vigorously enforce the price gouging law as hurricane season began earlier this year. Her office has a dedicated hotline, app and website for consumers to report instances of gouging during emergencies.”
“Trump’s first-term record on reproductive rights is clear: His three Supreme Court picks led directly to the overturning of Roe vs. Wade. But as that record has become a political liability, the former president has been evasive about how far he’d go to curtail abortion access in a post-Roe United States.”
“Many other developed countries with established pharmaceutical industries such as Japan, Canada, and the UK have implemented or are working to roll out their own incentives to spur antibiotic development. The Pasteur Act dwarfs these. This could potentially drive pharmaceutical companies to flock to the US market to make drugs deemed important there and not in other places.
“The size of the Pasteur Act is going to be so large that it ultimately draws developers to only focusing on the United States, only developing the drug so that it can be used appropriately in the United States, and only registering the drug in the United States, because that’s ultimately going to be sufficient revenue and incentive for what otherwise is not a very profitable market,” explained Rohit Malpani, a senior policy advisor at the Global Antibiotic Research and Development Partnership, or GARDP.
Cirz added that with a steady influx of Pasteur Act funds, pharmaceutical companies may be less interested in investing additional funds to figure out ways to manufacture their antibiotics more cheaply. Usually companies would continue investing so they can increase their profit margins by lowering manufacturing costs, but if profit margins are set by the US government, then there’s less incentive to make an approved drug cheaper, when it can divert attention to making even more drugs. Without that innovation for affordable production, the act may unintentionally prohibit developing countries such as India from being able to independently manufacture the drug.
Finally, while Americans with federal health insurance plans are guaranteed access to antimicrobials that receive support from the act, the proposed legislation does not provide any stipulations or guidance for ensuring global access to these drugs. Pharmaceutical companies are left to make decisions regarding pricing, manufacturing, and distribution of whatever antibiotics might be funded by the program, argued Ava Alkon, global health advocacy and policy adviser at Doctors Without Borders.
“What the act doesn’t do is attach any meaningful conditions to facilitate affordable access to people outside of those federal programs, and certainly not outside of the US,” said Alkon.
“From our years of work on access issues around the world, this generally results in products being sold to the highest bidder and being inaccessible in many contexts where they’re needed,” she said.”
“Former President Donald Trump has lately been trying to distance himself from Project 2025, claiming it was cooked up by the “severe right” and that he doesn’t know anything about it.
But it turns out the severe right is coming from inside the house.
Kevin Roberts, the self-proclaimed “head” of Project 2025, has a book coming out in September — and the book’s foreword is written by Trump’s vice presidential candidate, J.D. Vance, who lavishly praises its ideas.
“Never before has a figure with Roberts’s depth and stature within the American Right tried to articulate a genuinely new future for conservatism,” Vance writes, according to the book’s Amazon page. “We are now all realizing that it’s time to circle the wagons and load the muskets. In the fights that lay ahead, these ideas are an essential weapon.”
What ideas? Like Vance, Roberts is obsessed with the idea that the left controls major American institutions — he lists Ivy League colleges, the FBI, the New York Times, the National Institute of Allergy and Infectious Diseases, the Department of Education and even the Boy Scouts of America. The book argues that “conservatives need to burn down” these institutions if “we’re to preserve the American way of life.” (Vox has requested a copy of the book, but has not yet received one at the time of this writing.)
Obviously, this poses a problem for Trump’s attempts to distance himself from the virally unpopular Project 2025 and its lengthy agenda for what he should do if he wins, which includes proposals to restrict abortion access and centralize executive power in the presidency.
And it’s one more indication that Trump’s pick of Vance might be politically problematic for him. Vance has a fascination with provocative and extreme far-right thinkers, and a history of praising their ideas. He is not a running mate tailored to win over swing voters who are concerned Trump might be too extreme — quite the opposite.
The book was written and announced before Vance was chosen as Trump’s running mate. But there’s some indication that people involved had some late second thoughts about it. It was originally announced as “Dawn’s Early Light: Burning Down Washington to Save America,” with a cover image showing a match over the word “Washington.”
More recently, though, the subtitle has been changed to “Taking Back Washington to Save America,” and the match has vanished from the cover.”
…
“Project 2025 contains a multitude of proposals in its 922-page plan, not all of which J.D. Vance necessarily supports.
But he’s on record backing ideas similar to those put forth in two of Project 2025’s most controversial issue areas.
The first is abortion. Project 2025 lays out a sweeping agenda by which the next president could use federal power to prevent abortions, including using an old law called the Comstock Act to prosecute people who mail abortion pills, and working to prevent women from abortion-banning states from traveling out of state to get abortions.
Vance is on record supporting these ideas. Last year, he signed a letter demanding that the Justice Department prosecute physicians and pharmacists “who break the Federal mail-order abortion laws.” In 2022, he said he was “sympathetic” to the idea that the federal government should stop efforts to help women traveling out of their states to get abortions. That year, he also said: “I certainly would like abortion to be illegal nationally.”
At other points, Vance has struck a different tone. ““We have to accept that people do not want blanket abortion bans,” he said last December. And this month he said he supported a Supreme Court decision that allowed the abortion bill mifepristone to remain available. Here, Vance is trying to align with Trump, who — fearing political blowback — argues he merely wants abortion to be a state issue, despite his long alliance with the religious right. But Vance’s record implies his true agenda might be otherwise.
The second controversial area where Vance is sympatico with Project 2025 is centralizing presidential power over the executive branch. The project lays out various proposals to rein in what conservatives view as an out-of-control “deep state” bureaucracy — mainly, by firing far more career civil servants and installing far more political appointees throughout the government.
Vance, as I wrote last week, has backed a maximalist version of this agenda. In 2021, Vance said that in Trump’s second term, Trump should “fire every single midlevel bureaucrat, every civil servant in the administrative state, replace them with our people.” The courts would try to stop this, Vance continued, and Trump should then “stand before the country like Andrew Jackson did, and say, ‘The chief justice has made his ruling. Now let him enforce it.’”
So it’s no big surprise that Vance would write the foreword for a book by Project 2025’s architect. They fundamentally agree on how they see the world, and in much of what they want out of politics: a battle against the left for control of institutions, and expanded government power to stop abortions.”
“Vance is an outspoken protectionist, nationalist, and anti-corporate hawk who’s bound to shift any future Trump administration in an anti-trade, anti-immigration, and anti-market direction. That can only mean bad things for the cost and availability of housing.”
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“The federal government hasn’t regulated rents at private buildings since World War II. There’s a good reason for that. A mountain of economic evidence suggests rent control is a terribly counterproductive policy.
The research couldn’t be clearer that where rent control policies suppress rents, they also suppress the supply of rental housing (by reducing construction or encouraging conversion of rental units to for-sale units) and reduce the quality of rental housing (by limiting investment).
The people who get a rent-controlled unit pay lower prices and stay in their units longer. The people who don’t get a rent-controlled unit end up paying higher prices. Cities as a whole suffer from declining investment and economic growth.
A rent control policy adopted in St. Paul, Minnesota, saw an exodus of developers from the city. New York City’s long-standing “rent stabilization” policy is producing vacant, dilapidated buildings that no one has the money to fix or redevelop.”
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“Vance is an arch-protectionist who’s endorsed Trump’s call for 10 percent tariffs across the board. Slapping taxes on imported materials needed for housing construction would make the costs of construction higher, lower housing production, and ultimately raise costs for consumers.
The Republican Party’s 2024 platform calls for deporting immigrants as a means of making housing more affordable.
Vance has been an outspoken proponent of this idea, saying on X last month that “not having 20 million illegal aliens who need to be housed (often at public expense) will absolutely make housing more affordable for American citizens.”
There’s a certain chilling logic to this idea: Lowering housing demand through mass deportations will lower housing prices as well.
New research however suggests the negative supply effects of kicking immigrants out of their homes outweigh any price declines caused by falling demand for housing. While immigrants consume housing, they also build housing. A recent study found that increased immigration enforcement creates a shortage of construction labor that lowers housing production and increases housing costs.”