“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.”
“Kroger is the fourth-largest grocery store chain in America—behind Walmart, Amazon, and Costco—and Albertsons is the fifth-largest. Once merged, the combined company would rise to third on the list. On the surface, this may seem to provide some support for the FTC’s position, but American shoppers would be wise to read the fine print.
In truth, if the deal were to proceed, a merged version of Kroger and Albertsons would still only make up 9 percent of overall grocery sales. To put this in further perspective, consider that Walmart—the nation’s largest grocery provider—would continue to operate more stores (including its Sam’s Club outlets) than a Kroger-Albertson combo and maintain grocery revenue that is more than twice that of the merged company.”
“The transformation is clearest in the GOP, thanks to the elevation of Vance to the GOP presidential ticket. Vance, according to most accounts, was selected in a moment of confidence, as an heir apparent meant to extend and intensify Donald Trump’s core appeal rather than as a counterweight to the former president’s electoral weaknesses.
Vance spent the last half-decade transforming himself into one of the GOP’s most prominent neopopulists. He’s an advocate of tariffs and trade restrictions, a walker of auto-worker picket lines, and a harsh critic of foreign labor. He’s even complimented Lina Khan, the Federal Trade Commission chair who has helped lead the Biden administration’s newly aggressive (if mostly unsuccessful) approach to antitrust enforcement. Vance, who is among those who have a habit of taking swipes at libertarians, combines a rejection of individual liberty with a rejection of economic liberty—and he’s Trump’s newly anointed successor.”
…
“What’s striking about this particular political moment is that on both the left and the right, a new elite consensus appears to be forming, one that is skeptical of, and in some cases quite hostile to, free market ideals and principles.
The neopopulist consensus is still rough, but in broad terms, it favors propping up domestic labor, cracking down on immigration, using taxes and spending incentives to carry out industrial policy, and implementing tariffs and trade restrictions for reasons of national security, job creation, or international competitiveness. Notably, the Biden administration left most of Trump’s tariffs in place—and in some cases increased them.
Whatever their other disagreements, the leaders and rising intellectuals in both parties seem to agree that the important thing is to leave out classical liberals, libertarians, and believers in economic liberty.
It’s true that the parties have never fully embraced these values, and at times have distanced themselves from them. Sen. Bernie Sanders (I–Vt.), a self-described socialist, has long helped pull Democrats to the left on economics. Former President George W. Bush implemented tariffs on imported steel, and his brand of “compassionate conservatism” was partly an attempt to dampen the party’s libertarian tendencies.
Until recently, there was a place for those who prized individual freedom and markets. They were seen as valuable, or at least necessary, partners: As recently as 2012, none other than Democratic stalwart Sen. Elizabeth Warren (D–Mass.) pitched herself to libertarians. That same year, former House Speaker Paul Ryan (R–Wisc.), who was probably most well-known for proposals to reform entitlements, appeared on the GOP ticket. Trump’s first vice president, Mike Pence, was similarly a link to the GOP’s Reaganite past.
There may be some holdouts in the party who still embrace a more orthodox pro-market economics. Speaker of the House Mike Johnson’s Republican National Convention speech paid homage to the “core principles of American conservatism,” which included “fiscal responsibility,” “free markets,” and “limited government.” But with Trump and Vance as the party’s reigning avatars, it seems likely that these values will remain only as limp, legacy platitudes.
That’s a shame. Personal liberty and market freedom are bedrock American political and economic values: That synthesis is explicit in the American founding, and it has long been deeply embedded in American life. In the 1830s, when America was still a young nation, Alexis de Tocqueville wrote that “boldness of enterprise is the foremost cause of its rapid progress, its strength, and its greatness.” That boldness has made America wealthy on a scale that is almost taken for granted: Today, the vast majority of American states are richer than most European countries. The neopopulists take this wealth for granted, and then propose policies—tariffs, labor regulations, vast new spending programs—that would make America poorer, that would slow its progress, that would deplete its strength and greatness.”
“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.”
…
“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.”
“it’s misleading to suggest that the president—and by extension, the major political party to which the president belongs—is singularly or even primarily responsible for the success or failure of the job market. Rather, individuals in dynamic economies operate independently of the political party that happens to occupy the White House.
Clinton’s numbers are technically right: According to the U.S. Bureau of Labor Statistics, the economy added 2.63 million nonfarm private sector jobs while George H.W. Bush was president. During Clinton’s two terms, the economy added 22.9 million jobs. Only 1.37 million jobs were added during George W. Bush’s terms, with another 11.57 million during Barack Obama’s tenure. During Donald Trump’s single term, the economy lost 2.72 million jobs, and in Joe Biden’s term through July 2024, the economy has added 15.81 million.
In total, that equals 51.56 million net jobs added since January 1989—50.28 million under Democratic presidents and 1.28 million under Republican presidents. That’s not the whole story, though.
Many of the presidents’ terms coincided with substantial external forces. Trump left office during a recession caused by the COVID-19 pandemic: In his first three years in office, the economy actually added 6.4 million jobs. Similarly, George W. Bush left office amid the Great Recession, during which the economy shed nearly 7.4 million jobs. Calculating Bush’s term up to December 2007, the economy added 5.7 million jobs.
On the other hand, Clinton served during the dot-com boom. The tech-heavy Nasdaq composite more than doubled between January 1999 and March 2000. But then the bubble burst: The economy entered a recession in March 2001, just weeks after Clinton left office, and the Nasdaq would lose 78 percent of its value between its March 2000 high and October 2002.”
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“National economies—particularly those as large and complex as ours—are dynamic, with an infinite number of inputs and externalities. “Month-to-month job creation is just a function of the dynamic U.S. economy that’s bigger than one person,” Chris Douglas, associate economics professor at the University of Michigan–Flint, told Marketplace in 2022. Central planning fails for this reason: Dynamic economies are driven by individuals, each operating only with his or her own knowledge and interests in mind.”
“higher corporate taxes are passed along to consumers, employees, and investors in the form of high prices, lower wages, and lower investment returns. If you buy things, have a job, or save for retirement, higher corporate income taxes will fall on you”
…
“Saying that tariffs penalize only importers is almost exactly like saying that a corporate income tax affects only corporations. Both are deliberately myopic attempts to ignore the consequences of these policies. And in both cases, the candidates are assuring voters that someone else will pay the cost of these tax hikes—wealthy corporations or China—despite a well-established track record showing that both forms of taxes are passed along to consumers and workers in various ways.
You can try to tax corporations and you can try to tax imports, but all taxes are paid by people in the end—including lots of people who make less than $400,000 annually.”