Institute for America's Future co-director Robert Borosage appeared on the Tavis Smiley Show on October 31 to discuss the tax and economic policies advanced by Republican presidential candidates and their impact on middle- and low-income people.
He calls the flat-tax proposals of candidates Rick Perry and Herman Cain, as well as the regressive tax changes offered by candidate Mitt Romney, “reverse Robin Hood plans” that take from the poor in terms of reduced government services and higher taxes, and give to the rich in the form of a lower overall tax burden. These plans come “at a time in which we're seeing extreme inequality and concentrated wealth we haven't seen since before the Great Depression.”
The flat-tax plans are particularly egregious, Borosage tells Smiley. In the case of Perry, his plan “eliminates taxes on wealth” and slashes government revenues by $5 trillion over 10 years, a deficit that has to be made up by a 25 percent cut in government spending, including “deep cuts in the basic promises we make to working Americans about their retirement.”
Cain's plan “is the worst,” Borosage says, because it would among other things impose a 9 percent national sales tax on top of the state and local taxes people pay on consumer goods. Because the lower the income a person makes the higher the percentage of that income is devoted to spending on consumer items, that means the Cain plan would fall the hardest on low-income and middle-income people.
Borosage also raises concerns about “a financialization of our economy that is having really disastrous effects on … our ability to ensure that the strength of our democracy, which is a strong middle class, is sustained.” Smiley responds, “It's not just that our economy is challenged by those kinds of numbers, but it's democracy as we know it. Some people might call that hyperbolic, but I don't. … I don't think the democracy can sustain itself long term with the kind of numbers you just laid out.”
Help us Prepare for Trump’s Day One
Trump is busy getting ready for Day One of his presidency – but so is Truthout.
Trump has made it no secret that he is planning a demolition-style attack on both specific communities and democracy as a whole, beginning on his first day in office. With over 25 executive orders and directives queued up for January 20, he’s promised to “launch the largest deportation program in American history,” roll back anti-discrimination protections for transgender students, and implement a “drill, drill, drill” approach to ramp up oil and gas extraction.
Organizations like Truthout are also being threatened by legislation like HR 9495, the “nonprofit killer bill” that would allow the Treasury Secretary to declare any nonprofit a “terrorist-supporting organization” and strip its tax-exempt status without due process. Progressive media like Truthout that has courageously focused on reporting on Israel’s genocide in Gaza are in the bill’s crosshairs.
As journalists, we have a responsibility to look at hard realities and communicate them to you. We hope that you, like us, can use this information to prepare for what’s to come.
And if you feel uncertain about what to do in the face of a second Trump administration, we invite you to be an indispensable part of Truthout’s preparations.
In addition to covering the widespread onslaught of draconian policy, we’re shoring up our resources for what might come next for progressive media: bad-faith lawsuits from far-right ghouls, legislation that seeks to strip us of our ability to receive tax-deductible donations, and further throttling of our reach on social media platforms owned by Trump’s sycophants.
We’re preparing right now for Trump’s Day One: building a brave coalition of movement media; reaching out to the activists, academics, and thinkers we trust to shine a light on the inner workings of authoritarianism; and planning to use journalism as a tool to equip movements to protect the people, lands, and principles most vulnerable to Trump’s destruction.
We urgently need your help to prepare. As you know, our December fundraiser is our most important of the year and will determine the scale of work we’ll be able to do in 2025. We’ve set two goals: to raise $125,000 in one-time donations and to add 1400 new monthly donors by midnight on December 31.
Today, we’re asking all of our readers to start a monthly donation or make a one-time donation – as a commitment to stand with us on day one of Trump’s presidency, and every day after that, as we produce journalism that combats authoritarianism, censorship, injustice, and misinformation. You’re an essential part of our future – please join the movement by making a tax-deductible donation today.
If you have the means to make a substantial gift, please dig deep during this critical time!
With gratitude and resolve,
Maya, Negin, Saima, and Ziggy