Pence and Taxes

By GENE NICHOL

Recently, North Carolina was blessed with a visit from Vice President Mike Pence. Speaking in Charlotte, Pence lavished praise on the Trump tax cut. The tax law, he claimed, “was nothing short of remarkable.” The “largest tax cut and tax reform in American history – promises made, promises kept.” Say glory.

Oddly, though, Pence is finding that the pitch faces tough sledding. Forbes reported last month most Americans still oppose the massive cuts. Gallup just released a study concluding 32% of adults said they had seen an increase in take home pay, but 64% said they had not. Pence was effectively asked to convince doubting Tar Heels that they should believe him rather than their own lying pay stubs.

The stubborn ambivalence about the tax cut, however, is not all-encompassing.

The Associated Press just released a detailed study of the impact of the Trump tax cut on the nation’s six biggest Wall Street banks – JP Morgan Chase, Citigroup, Wells Fargo, Goldman Sachs, Morgan Stanley and Bank of America. Combined, the six mega-banks saved at least $3.6 billion in the first quarter of 2018. Their tax rate dropped, collectively, from about 29% to roughly 17%. Bank of America had earlier disclosed that Trump’s cut had reduced its first quarter taxes by $500 million. The reports seemed to ratify industry predictions that the Trump program would bestow about $20 billion a year on the six banks. The Washington Post made the point differently. Thanks to Donald Trump, the six banks now receive 40 million new dollars a day. Consider the swamp drained.

It is painful duty, but a couple of days ago I forced myself to re-read Donald Trump’s inaugural address. It was easy to recall why George W. Bush had reportedly said, upon hearing Trump’s speech, “that was some weird shit.” Still, the new president said this:

“January 20th 2017 will be remembered as the day the people became the rulers of this nation again. The forgotten men and women of the country will be forgotten no longer. You will never be ignored again.”

Goldman Sachs apparently sighed in relief. And donated a couple of cabinet members.

These giant banks, it will be recalled, had demanded, and purchased, massive deregulation from the federal government. Then they wrecked the world economy with their frauds. They next insisted that waitresses, cops and coal miners bail them out, which they did. In return, the banks used the bailout funds to pay for gigantic bonuses to be given to their thieving executives. They said if we tried to claw any of that money back, the nation would perish as a viable economic entity. No wonder they believed they had the right to expect that their clown prince would direct the bulk of his tax cut their way.

Of course Trump and Pence weren’t done. They followed the tax legislation with a budget proposal designed to hit the poorest Americans in crushing fashion – slashing hundreds of billions of dollars from the food stamp budget, eliminating health care for millions of vulnerable low income citizens, drastically cutting federal housing subsidies, taking the axe to national disability programs and reducing Pell Grants for the neediest college students. The Center on Budget and Priority Policies said, “taken together, the (Trump budget) cuts are far deeper than any ever enacted and would (significantly increase) poverty and swell the ranks of the uninsured.”

Now, I’ll concede, this set of moves probably necessitated no great swivel for Donald Trump and his followers. Trump is a perpetual liar, grifter and con man. I can’t imagine anyone ever expected him to do anything other than feather his own nest and those of his buddies. Why would he? Trump is literally incapable of escaping his own solipsism.

But the “remarkable” tax reform narrative is a good deal tougher for Pence. He is, above all, the much advertised dutiful and obedient Christian. His stern, haloed and sanctimonious face must reveal somehow, even if implicitly, that “Jesus too would have lied relentlessly if that was required to give massive tax cuts to billionaires and throw millions of poor people off the health care rolls.” Deception is demanded, on occasion, to meet the longed-for higher purpose. Besides, as it’s said in Matthew 6:24: “No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one and despise the other.”

The Vice-President must manage, daily, a bold and intensely wearying slalom. There are many challenges in this life. But imagine trying to square Donald Trump and Jesus of Nazareth.

Gene Nichol is Boyd Tinsley Distinguished Professor of Law and in 2015 started the Poverty Research Fund at the University of North Carolina School of Law after the UNC Board of Governors closed the state-funded Poverty Center. He is also President Emeritus of College of William & Mary.

From The Progressive Populist, June 1, 2018

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