Underdeveloped, Underwater, Undertaxed
With summer well underway, several million American tourists will visiting Europe, more than a few for the first time. Many will return in slack-jawed wonder, awed by the immaculate roads, the fast and efficient trains and trams, the sprawling parks, the vast public spaces, and the magnificent monuments and museums that adorn the great cities of the continent. They will come home, asking themselves why we, who live in the richest country on earth, cannot achieve something similar?
Why are our roads and bridges crumbling? Why are we condemned to waste hundreds of hours stuck in traffic on highways riddled with potholes? Why are the few trains we have little more than slow, lumbering hulks that lurch their way along miles of decrepit and dangerous track? Why are so many of our largest cities blighted by trash, mile upon mile of cheap strip malls, and sheer ugliness?
There are other, less obvious, questions that might be asked, about the wretched state of our social as well as our physical assets. Why, for example, does the United States of America have the most expensive healthcare system in the world but some of the worst health statistics? Why does the quality of our educational system lag behind nearly every major European country, not to mention Asian dynamos like Singapore? Why do the Europeans, and particularly the Scandinavians, appear to be so much happier and satisfied by their lives?
These are complex and vexing questions, of course, and simplistic answers would be misleading. Nonetheless, one of the principal answers is a subject that we Americans are reluctant to discuss. That answer is taxation.
We are constantly told that we pay some of the highest taxes in the world, that our tax dollars are being wasted, that cutting taxes would unleash entrepreneurial energy and lead to an economic boom, that such a boom would not only provide greater prosperity for everyone but solve much of what seems to ail the country.
Right-wing ideologues have been spinning this fairly tale for at least 30 years. Indeed, the major rationale for the disastrous health care proposal now on offer in the Senate is that tax cuts for the richest Americans will somehow unfetter the free market, improve healthcare, lower medical costs, and drive down insurance premiums. How all this is supposed to work in the real world is never explained. Rather, it is asserted as a self-evident truth.
Every time this fairy tale has been put into practice, however, it has proved to be hopelessly and disastrously wrong. There is little historical evidence that lower taxes fuel economic growth, and there is no evidence whatsoever that the free market is capable of providing quality health care at an affordable price. If that were the case, then such a system would now be at work somewhere in the world. No such system exists.
Although Republicans are correct when they say that our three principal “entitlement” programs—Medicaid, Medicare, and Social Security—may someday become unsustainable, the problem doesn’t lie with the programs themselves. It lies with the shop-worn “solutions” Republicans invariably propose: (1) cut benefits to “rein in spending”; (2) cut taxes to “boost the economy”; (3) privatize government programs to produce more “efficiency”. The heretical thought never seems to occur to these ideologues that a simpler, far more “efficient” solution would simply be to raise taxes and generate more revenue.
The main reason our physical and social infrastructure is such bad shape is that, far from paying some of the highest taxes in the world, we pay some of the lowest. The Organization for Economic Cooperation and Development—OECD, for short—is a body of the 35 most advanced economies in the world, of which we are one. The average tax burden in those countries—including all national, state, regional, and local taxes—is 36 percent of GDP. The tax burden in the United States is 27 percent. The only countries with lower tax burdens are Turkey, Chile, and Mexico, which scarcely qualify as models to be emulated.
At the opposite end of the spectrum, with a total tax burden of 50 percent, is Denmark. Despite this “burden,” per capita wealth in Denmark is considerably higher than in the United States, that wealth is distributed more equitably, and in study after study, the egalitarian Danes declare themselves to be far more satisfied with the quality of their lives.
It is not my intention to suggest that a small, homogenous country of scarcely six million people at the northern edge of Europe can fairly be compared with a nation of more than three hundred million sprawling across an entire continent. Denmark is not the United States of America.
But neither is the United States of America in any sense “normal”. On the contrary, our fixation with cutting taxes at the expense of the most basic public investments is decidedly abnormal when compared with other advanced nations. If we raised our taxes, not to the level of Denmark, but merely to the OCED average, we would produce an additional two trillion dollars a year: enough to slash the national debt, balance the budget, rebuild our physical infrastructure, and secure the future of Social Security, Medicare, and Medicaid.
We can continue to bemoan the fact that our crumbling infrastructure and inadequate public services resemble those of backward and underdeveloped nations, all the while we refuse to invest in them. We can continue to lament the fact that we are financially underwater, all the while we refuse to pay down our deficits and debts. We can continue to pretend that we are overtaxed, all the while we are woefully undertaxed.
As the old saying goes, you get what you pay for. As long as we refuse to pay the price of living in a modern, decent society, we will get what we deserve. Which is exactly nothing.
As the nightmare of Donald Trump’s demented presidency drags on, one increasingly painful day at a time, we are constantly confronted by evidence of the fractious polarization of our society: political and informational “bubbles” that not only divide one part of the nation from another but alter their very perceptions of reality; social and economic enclaves that pit haves against have-nots; not merely disagreement, but outright hostility, between liberals and conservatives, Democrats and Republicans, white Americans and everyone else.
After weeks of secret scheming, hidden away from the public, the press, and their Democratic colleagues, Senate Republicans just released an outline of their proposal to replace the Affordable Care Act. They are calling their bill the “Better Care Reconciliation Act”. It is impossible to imagine a more ironic and deeply cynical title.
If the storm of scandal swirling around Donald J. Trump ever leads to the downfall of his presidency, the week just ended will be remembered as the moment in time when the storm clouds burst. The first thunderclap came Tuesday, when the Jefferson Beauregard Sessions III testified before the Senate Intelligence Committee. Sputtering with outrage, he condemned as an “appalling and detestable lie” any suggestion that he might have had something to do with Russia’s attack on the 2016 election. Apart from this hissy-fit and pompous pronouncements about his personal “honor,” Sessions served up no credible defense for his previous lies. He declined to answer straightforward questions about his interactions with president on the flimsy ground that Trump might someday wish to invoke “executive privilege”. When that excuse ran out of gas, he slunk behind the arras of faulty memory, invoking the phrase, “I can’t recall,” more than 25 times.
Amidst all the chaos and incompetence roiling the White House, it is all too easy to lose sight of the enormous damage that Donald Trump and his minions are all too effectively bringing about behind the scenes. It seems likely, for example, that Trump will soon issue an executive order rolling back a central pillar of Barack Obama’s Affordable Care Act—the requirement that employer-funded health insurance plans provide a uniform package of basic preventive services to their employees.
Of all the deplorable things Donald Trump has done in his utterly despicable personal and public life—the incessant lying, the serial marital infidelities, the predatory sexual misbehavior, the bankruptcies and shady business dealings, the hateful rhetoric of his presidential campaign—his decision to withdraw from the Paris Climate Accord, announced just a few hours ago, is by far the most shameful and consequential.
Toward the end of his long, eventful, and momentous public life, Great Britain’s greatest prime minister, Sir Winston Churchill, made this observation: “To build may have to be the slow and laborious task of years. To destroy can be the thoughtless act of a single day.” Little more than a day ago, such an act—an act that threatens to destroy the slow and laborious task of years—was committed by Donald J. Trump.
In 1927, the British novelist E. M. Forster delivered a renowned series of literary lectures at Trinity College, Cambridge, which were ultimately published under the title, Aspects of the Novel. His fifth lecture, called “The Plot,” described the basic structure of fiction as a logical sequence of causes and effects—necessary for any novel to make sense but also potentially deadening to the creation of interesting and unpredictable characters.
Three times this week, I have begun this essay, only to stop and start over, because new events popped up out of nowhere. It is becoming all but impossible to keep up, let alone cope with, the crescendo of chaos swirling around, and within, the White House—or to see how it all will end.
The most fundamental principle of our system of justice is that anyone who is accused of a crime must be presumed innocent until proved guilty. Donald J. Trump’s behavior has turned this principle on its head. Trump began lying to the American people from the day he entered the race to become President of the United States. After he became president, many hoped that his lies would stop. They did not. On the contrary, they escalated, and they escalated at a breathtaking pace. It is no longer possible to give Donald Trump the benefit of the doubt, to presume that he is innocent until he is proved to be guilty. Too much is at stake. For the sake of our republic, we must now presume that Donald Trump is guilty until he is able or willing to prove otherwise.