My colleague The Moose did a post this morning playing off fresh charges by the former deputy director of the White House Office of Faith-Based and Community Initiatives that the administration took the whole faith-based project about as seriously as, well, “compassionate conservatism” in general.But nestled in the post was another subject on which The Moose and I share a healthy obsession: the scheduled demise of the federal estate tax, a.k.a, in Republican-speak, the “death tax.”The Moose specifically proposed reinstating a reformed version of the estate tax and dedicating the money to a real faith-based initiative. But aside from that particular idea, I think Democrats, as a matter of basic principle, ought to single out the estate tax repeal as a Bush/GOP outrage that must not be allowed to stand.This happens to be one issue where the standard lefty critique of centrist Democrats has some merit. At some point during the 1990s, the GOPers did some focus groups and discovered that sizeable majorities of voters didn’t like the idea of family farmers and small business owners getting hit with high-rate federal inheritance taxes when they were struggling to keep the farm or business in the family for the next generation. They also discovered that calling the inheritance tax a “death tax” pushed even more buttons. Nothing excites Republicans more than finding an issue where they can simultaneously win votes and richly reward their richest constituencies. So not suprisingly, abolishing the “death tax” became a standard feature of GOP tax proposals in the Age of Newt, bearing poisonous fruit when Bush took office amidst spectacular budget surpluses and got the chance to cut taxes.A goodly number of Democrats–especially those from marginal and/or rural districts–saw those polls and just flat-out caved (for the record, the DLC never did so, and in fact made the “death tax repeal” an object of particular hostility and derision). In fact, other than the so-called “marriage penalty” adjustment, repeal of federal inheritance taxes probably got more Democratic support in Congress than any other feature of the Bush tax package. That was then. This is now. And now Democrats should seriously consider making opposition to a permanent “death tax repeal” a signature issue. Why? Well, for one thing, repealing inheritance taxes strikes at the very heart of a long–and until recently, bipartisan–American tradition of progressive taxation in which the burden of self-government falls on wealth as well as work. (As The Moose often points out, Teddy Roosevelt was the father of the federal estate tax). There are three ways to get very, very rich. One is to earn it with actual work (a rare but not impossible feat). A second is to earn it through investment income. And a third is to inherit it. (A fourth, I suppose, is to marry it, perhaps more than once, but we’re not talking about Sen. John Warner here). A broad-based tax system should not mysteriously exempt the third source of enormous wealth, especially since it is the one that rewards birth-status rather than effort or initiative or good judgment, and that serves virtually no economic purpose. Moreover, truly dangerous and immoral concentrations of wealth often take generations to accumulate, with inheritances serving as the crucial link between economically rational and irrational–indeed, anti-competitive–consolidations of market power. To put it another way, accepting the abolition of inheritance taxes makes any consistent and progressive fiscal philosophy incoherent. We’re gonna tax high earners and small investors, but not big fat trust fund babies? Oh, really? Aside from the principles involved, I am convinced Democrats can turn public opinion around on the estate tax. The extremist abolitionism of the GOP on this issue makes it easy for Democrats to be reasonable, in a way that’s far more difficult in the complicated world of marginal rates on income. For years, most Democrats have supported a reform of the federal estate tax that would raise the threshold for applying it high enough to exempt virtually every legitimate small family farm or small business, and perhaps even lower the rates, which are significantly higher than for corporate or personal incomes. That would essentially return the estate tax to a simple, progressive purpuse: a tax on the inheritence of very large personal fortunes–a “billionaire’s tax,” to demagogue it just a little, in the spirit of “death tax.” Let the GOPers defend that, for a change. Pivoting public opinion on inheritence taxes will require the kind of sustained, loud Democratic attention that is currently being paid to Social Security privatization. But it’s worth it, both morally and politically. Repealing the estate tax is a central pillar of the GOP’s plan to eventually shift the federal tax base entirely from wealth to work, with the goal of not only “starving the beast” of government, but of turning heavily taxed people of modest means into anti-tax zealots while solidifying the Republican Party’s iron pact with the most privileged and powerful economic interests in the country. So: if and when the Beast of Bush’s SocSec proposal is slain or at least firmly caged, I nominate “death to the death tax repeal” as a Big Fight worth having, and winning.
TDS Strategy Memos
Latest Research from:
Editor’s Corner
By Ed Kilgore
-
June 18: Mass Deportation Now Officially a Partisan Weapon
Keeping up with the norms being violated by the second Trump administration is tough, but I did write about an important one this week at New York:
Donald Trump and Stephen Miller have an arithmetic problem with their mass-deportation initiative. They appear frantic to ramp up deportations. Miller reportedly chewed out ICE brass (“Why aren’t you at Home Depot? Why aren’t you at 7-Eleven?”) on the numbers not long before the agency launched its fateful raids in Los Angeles. But at the same time, the administration has been getting major heat from certain industries — particularly agriculture and hospitality — that going after their workforces would be a really bad idea. Indeed, according to the New York Times, Agriculture secretary Brooke Rollins lobbied her boss to ease up on farmworkers. Then, suddenly, Trump was expressing a change of heart on Truth Social. He wrote on June 12:
“Our great Farmers and people in the Hotel and Leisure business have been stating that our very aggressive policy on immigration is taking very good, long time workers away from them, with those jobs being almost impossible to replace. In many cases the Criminals allowed into our Country by the VERY Stupid Biden Open Borders Policy are applying for those jobs. This is not good. We must protect our Farmers, but get the CRIMINALS OUT OF THE USA. Changes are coming!”
This wasn’t just loose talk. While border czar Tom Homan denied that any policy change on deportation targeting was underway, ICE itself took the hint, as Axios reported:
“Tatum King, a senior ICE official, sent an email to agency officials nationwide, telling them to ‘please hold on all worksite enforcement investigations/operations on agriculture (including aquaculture and meatpacking plants), restaurants, and operating hotels.’”
So what’s the focus now? Trump made no bones about it in a Truth Social post on June 15:
“[W]e must expand efforts to detain and deport Illegal Aliens in America’s largest Cities, such as Los Angeles, Chicago, and New York, where Millions upon Millions of Illegal Aliens reside. These, and other such Cities, are the core of the Democrat Power Center, where they use Illegal Aliens to expand their Voter Base, cheat in Elections, and grow the Welfare State, robbing good paying Jobs and Benefits from Hardworking American Citizens. These Radical Left Democrats are sick of mind, hate our Country, and actually want to destroy our Inner Cities — And they are doing a good job of it! There is something wrong with them. That is why they believe in Open Borders, Transgender for Everybody, and Men playing in Women’s Sports — And that is why I want ICE, Border Patrol, and our Great and Patriotic Law Enforcement Officers, to FOCUS on our crime ridden and deadly Inner Cities, and those places where Sanctuary Cities play such a big role. You don’t hear about Sanctuary Cities in our Heartland!”
There you have it: The president of the United States is very clearly telling his deportation shock troops to wage partisan war on cities that are the “Democrat Power Center,” based on the hallucinatory idea — a MAGA staple — that “Radical Left Democrats” are herding millions of undocumented workers to the polls to “cheat in Elections and grow the Welfare State.” It’s all a crock, but reflects a distinctly Trumpian mash-up of the “great replacement theory” and crime-wave myths. And the targeting of blue cities seems to have already taken place, Axios recently reported, especially in red states where state law-enforcement officials have encouraged maximum cooperation with ICE:
“Efforts to arrest and remove unauthorized immigrants appear most aggressive in five southern states with Democratic-leaning cities, while deeply red, rural states are seeing less activity, according to an Axios analysis. …
“[L]ocal law enforcement agencies in Texas, Florida, Georgia, North Carolina and Virginia have been most cooperative with Immigration and Customs Enforcement (ICE) through deals known as 287 (g) agreements. There are 629 such agreements now in place across the country. About 43% of them are in Florida, followed by 14% in Texas and 5% in Georgia.
“The GOP-led state governments in Florida, Texas and Virginia also have made a point of pushing local agencies to partner with federal agents, leading to a series of high-profile, mass raids in those states.”
In effect, Republican state administrations are working with the Feds to come down on Democratic-run cities to scourge immigrant populations. And in blue states like California, the mass deportations feel more like all-out partisan war. Certainly the federalization of National Guard units and planned deployment of Marines to Los Angeles — a place Homeland Security secretary Kristi Noem called a “city of criminals” that the administration would “liberate” from its “socialist” elected leadership — signaled an armed takeover more than any sort of law-enforcement initiative. And now Trump is making the partisanship behind it all too explicit for anyone to miss or deny. While this overt politicization of mass deportation may please Trump’s MAGA base, it will likely erode his popularity more generally.
For now, Trump-friendly industries in Trump-friendly parts of the country need not worry so much, but all those radical-left hellholes better prepare for the onset of fire and ICE. After all, Stephen Miller has quotas to meet.