More stories

  • in

    Harris y Trump presentan un claro contraste sobre la economía

    Ambos candidatos abogan por ampliar el poder del gobierno para dirigir los resultados económicos, pero en ámbitos muy diferentes.[Estamos en WhatsApp. Empieza a seguirnos ahora]La vicepresidenta Kamala Harris y el expresidente Donald Trump volaron a Carolina del Norte esta semana para pronunciar lo que se anunciaron como importantes discursos sobre la economía. Ninguno de los dos expuso un plan detallado de políticas: ni Harris, que se centró durante media hora en la vivienda, los comestibles y los medicamentos con receta, ni Trump, que durante 80 minutos desperdigó varias propuestas entre reflexiones en voz alta sobre inmigrantes peligrosos.Pero ambos candidatos, cada uno a su manera, enviaron a los votantes mensajes claros e importantes sobre sus visiones económicas. Cada uno de ellos defendió la visión de un gobierno federal poderoso, uno que utilice su poder para intervenir en los mercados en busca de una economía más fuerte y próspera.Solo discreparon, casi por completo, sobre cuándo y cómo debe utilizarse ese poder.El viernes en Raleigh, Harris empezó a imprimir su propio sello a la economía progresista que ha dominado la política demócrata en la última década. Este pensamiento económico abraza la idea de que el gobierno federal debe actuar con agresividad para fomentar la competencia y corregir las distorsiones en los mercados privados.El planteamiento busca grandes subidas de impuestos a las empresas y a quienes obtienen ingresos altos, para financiar la ayuda a los trabajadores de ingresos bajos y de clase media que luchan por crear riqueza para sí mismos y para sus hijos. Al mismo tiempo, ofrece grandes exenciones fiscales a las empresas que se dedican a lo que Harris y otros progresistas consideran un gran beneficio económico, como la fabricación de tecnologías necesarias para luchar contra el calentamiento global o la construcción de viviendas asequibles.Esta filosofía anima la agenda política que Harris presentó el viernes. Se comprometió a entregar hasta 25.000 dólares en ayudas al pago inicial a cada comprador de primera vivienda durante cuatro años, al tiempo que destinaría 40.000 millones de dólares a empresas constructoras de primeras viviendas. Harris afirmó que reinstauraría de forma permanente el crédito tributario por hijos ampliado que el presidente Biden estableció temporalmente con su ley de estímulo de 2021, al tiempo que ofrecería aún más ayuda a los padres de recién nacidos.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Harris and Trump Offer a Clear Contrast on the Economy

    Both candidates embrace expansions of government power to steer economic outcomes — but in vastly different areas.Vice President Kamala Harris and former President Donald J. Trump flew to North Carolina this week to deliver what were billed as major speeches on the economy. Neither laid out a comprehensive policy plan — not Ms. Harris in her half-hour focus on housing, groceries and prescription drugs, nor Mr. Trump in 80 minutes of sprinkling various proposals among musings about dangerous immigrants.But in their own ways, both candidates sent voters clear and important messages about their economic visions. Each embraced a vision of a powerful federal government, using its muscle to intervene in markets in pursuit of a stronger and more prosperous economy.They just disagreed, almost entirely, on when and how that power should be used.In Raleigh on Friday, Ms. Harris began to put her own stamp on the brand of progressive economics that has come to dominate Democratic politics over the last decade. That economic thinking embraces the idea that the federal government must act aggressively to foster competition and correct distortions in private markets.The approach seeks large tax increases on corporations and high earners, to fund assistance for low-income and middle-class workers who are struggling to build wealth for themselves and their children. At the same time, it provides big tax breaks to companies engaged in what Ms. Harris and other progressives see as delivering great economic benefit — like manufacturing technologies needed to fight global warming, or building affordable housing.That philosophy animated the policy agenda that Ms. Harris unveiled on Friday. She pledged to send up to $25,000 in down-payment assistance to every first-time home buyer over four years, while directing $40 billion to construction companies that build starter homes. She said she would permanently reinstate an expanded child tax credit that President Biden temporarily established with his 2021 stimulus law, while offering even more assistance to parents of newborns.She called for a federal ban on corporate price gouging on groceries and for new federal enforcement tools to punish companies that unfairly push up food prices. “My plan will include new penalties for opportunistic companies that exploit crises and break the rules,” she said, adding: “We will help the food industry become more competitive, because I believe competition is the lifeblood of our economy.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Supreme Court Upholds Trump-Era Tax Provision

    The tax dispute, which was closely watched by experts, involved a one-time foreign income tax, but many saw it as a broader challenge to pre-emptively block Congress from passing a wealth tax.The Supreme Court on Thursday upheld a tax on foreign income that helped finance the tax cuts President Donald J. Trump imposed in 2017 in a case that many experts had cautioned could undercut the nation’s tax system.The vote was 7 to 2, with Justice Brett M. Kavanaugh writing the majority opinion. He was joined by Chief Justice John G. Roberts Jr., and the court’s three liberals. Justice Amy Coney Barrett wrote a concurring opinion, joined by Justice Samuel A. Alito Jr., and Justice Clarence Thomas dissented, joined by Justice Neil M. Gorsuch.The question before the justices appeared narrow at first glance: Is the tax in question allowed under the Constitution, which gives Congress limited powers of taxation?In the majority opinion, Justice Kavanaugh wrote that the tax fell within the authority of Congress under the Constitution.Many tax experts had warned that striking down the tax could have wide repercussions. Such a move could have threatened to fundamentally change how income is defined, block efforts to tax billionaires’ wealth and undermine enforcement for all sorts of other taxes, which amount to billions in revenue for the government.Among the defenders of the law was Paul Ryan, the Republican and former House speaker who helped write the legislation. Upending the tax, Mr. Ryan said, could endanger up to a third of the U.S. tax code. He joined the Biden administration and some other conservatives in seeking to keep the law intact.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Why Some Billionaires Will Back Trump

    Donald Trump’s campaign is reportedly strapped for cash. Small-dollar donations are running far behind their 2020 pace. Big Trump rallies aren’t yielding his biggest cash hauls. Some large-dollar donors are hesitant, in part because they worry (with good reason) that their money will be used not for the campaign but to pay his legal bills. So he has been wooing right-wing billionaires.I have no idea how successful he’ll be, but it seems highly likely that at least some billionaires will provide substantial sums to a man who tried to overturn the last election and has been open about his authoritarian intentions — using the Justice Department to go after his political opponents, rounding up millions of undocumented immigrants and putting them into detention camps and more.Which raises the question: Why would billionaires support such a person?After all, it’s not as if they’ve been suffering under President Biden. Economists, myself included, often remind people that the stock market is not the economy. Low unemployment and rising real wages — both of which, by the way, the Biden economy has delivered, even if many people don’t believe it — have much more relevance to most people’s lives.But stock prices are probably a much better indicator of how the very wealthy, who hold a lot of financial assets, are doing. And although in 2020 Trump predicted a stock crash if Biden won, the market has, in fact, been hitting record highs under the current administration.Why, then, back a candidate who more or less promises to unleash social and political chaos?One straightforward answer is that the wealthy will almost certainly pay lower taxes — and corporations will be less regulated — if Trump wins than if Biden stays in office.If you believe, like some leftists, that Republicans and Democrats are basically the same — that both serve the interests of corporations and the elite — you’re wrong. The modern Democratic Party isn’t, despite what prominent Republicans say, Marxist or socialist. It does, however, have a track record of raising taxes on the wealthy to pay for social programs. Notably, the Affordable Care Act used new taxes on high-income individuals to pay for health care subsidies.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    What to Know About Herschel Walker’s Residency Status in Georgia

    The Republican Senate candidate listed his Atlanta residence on public records as a rental property in 2021, while receiving a homestead exemption in Texas.Herschel Walker, the Republican candidate in Georgia’s Senate runoff, revealed in a financial disclosure statement that his Atlanta residence was being used as a rental property as recently as 2021. Tax and assessment records in Fulton County, Ga., listed Mr. Walker’s wife, Julie Blanchard, as the sole owner of the 1.5-acre property in northwest Atlanta, further undermining the candidate’s narrative about his Georgia residency in the fiercely contested Dec. 6 runoff against Senator Raphael Warnock, a Democrat.On a financial disclosure form required by the Senate for incumbents and candidates, Mr. Walker reported in May that the “Georgia residence” had generated between $15,001 and $50,000 in rental income in 2021 for his spouse. The revelations were reported earlier by The Daily Beast.Here is what to know about the questions surrounding where Mr. Walker lives:Does a candidate have to live in the state they are running to represent? No, though the Constitution requires senators to reside in the state they represent after they are elected.The details about the property in Georgia emerged one week after media reports that Mr. Walker received a tax exemption on his Texas home that is meant for primary residents of the state. Georgia Senate Runoff: What to KnowCard 1 of 6Another runoff in Georgia. More

  • in

    J.D. Vance’s First Attempt to Renew Ohio Crumbled Quickly

    In 2017, the Republican candidate for Senate started a nonprofit group to tackle the social ills he had written about in his “Hillbilly Elegy” memoir. It fell apart within two years.J.D. Vance was not running for office. He said it irked him when people assumed that. Instead, in 2017, he said he had come back to Ohio to start a nonprofit organization.Mr. Vance gave that organization a lofty name — Our Ohio Renewal — and an even loftier mission: to “make it easier for disadvantaged children to achieve their dreams.” He said it would dispense with empty talk and get to work fighting Ohio’s toughest problems: opioids, joblessness and broken families.“I actually care about solving some of these things,” Mr. Vance said.Within two years, it had fizzled.Mr. Vance’s nonprofit group raised only about $220,000, hired only a handful of staff members, shrank drastically in 2018 and died for good in 2021. It left only the faintest mark on the state it had been meant to change, leaving behind a pair of op-eds and two tweets. (Mr. Vance also started a sister charity, which paid for a psychiatrist to spend a year in a small-town Ohio clinic. Then it shuttered, too.)Mr. Vance is now the Republican nominee for Senate in Ohio, running on a promise to tackle some of the same issues his defunct organization was supposed to have. On the campaign trail, he has said his group stalled because a key staff member was diagnosed with cancer.“I saw that Ohio lacked a focused effort on solving the opioid crisis, even while so many Ohioans’ lives were devastated by addiction, my own family and mother included,” Mr. Vance said in a written statement. “While the group only ended up lasting for a short period of time, I’m proud of the work we did.”But some of the nonprofit group’s own workers said they had drawn a different conclusion: They had been lured by the promise of helping Ohio, but instead had been used to help Mr. Vance start his career in politics.During its brief life, Mr. Vance’s organization paid a political consultant who also advised Mr. Vance about entering the 2018 Senate race. It paid an assistant who helped schedule Mr. Vance’s political speeches. And it paid for a survey of “Ohio citizens” that several of the staff members said they had never seen.The collapse of Mr. Vance’s nonprofit group was first reported last year in Insider. Now, Ohio Democrats use the group as an attack line. “J.D. Vance was in a position to really help people, but he only helped himself,” says an ad created by Mr. Vance’s opponent, Rep. Tim Ryan.The New York Times examined federal and state records and talked to most of the people connected to the tiny nonprofit organization. That included 10 people who served as employees, board members or outside advisers for Our Ohio Renewal.The State of the 2022 Midterm ElectionsWith the primaries over, both parties are shifting their focus to the general election on Nov. 8.Standing by Herschel Walker: After a report that the G.O.P. Senate candidate in Georgia paid for a girlfriend’s abortion in 2009, Republicans rallied behind him, fearing that a break with the former football star could hurt the party’s chances to take the Senate.Wisconsin Senate Race: Mandela Barnes, the Democratic candidate, is wobbling in his contest against Senator Ron Johnson, the Republican incumbent, as an onslaught of G.O.P. attack ads takes a toll.G.O.P. Senate Gains: After signs emerged that Republicans were making gains in the race for the Senate, the polling shift is now clear, writes Nate Cohn, The Times’s chief political analyst.Democrats’ Closing Argument: Buoyed by polls that show the end of Roe v. Wade has moved independent voters their way, vulnerable House Democrats have reoriented their campaigns around abortion rights in the final weeks before the election.Mr. Vance started his group in November 2016, on the day after Donald J. Trump had won the presidency. At the time, Mr. Vance’s “Hillbilly Elegy,” about his troubled childhood in Ohio, was a surprise best seller. After Yale Law School and two years in Silicon Valley, Mr. Vance was returning to Ohio.A prayer in Norwalk, Ohio, in 2017 honoring those lost to opioid overdoses. Spencer Platt/Getty ImagesHe said his nonprofit group would seek to fix some of the social problems that he had described in his book.“I felt, you know, frankly a little bit of responsibility — now that I’ve been given this platform by the success of the book — to go and try to do at least a little something to help out,” Mr. Vance said in late 2016.His group was set up as a “social welfare organization” — called a 501(c)(4), after the relevant section of the federal tax code — that is allowed to do more political advocacy than a traditional charity. Politicians often treat these groups as a kind of incubator for their next campaigns, using them to attract donors, pay staff members and test out messages in between elections.Mr. Vance said his organization was not that. It was focused on something bigger. In its application for tax-exempt status, his group told the Internal Revenue Service it planned to increase its fund-raising to $500,000 a year by 2018 and to more than double its spending on personnel.In his statement to The Times, Mr. Vance said he had donated $80,000 of his own money to the nonprofit group, which was about a third of the $221,000 that it reported having raised over its lifetime. He declined to identify the group’s other donors.Mr. Vance said he did not take a salary. He did not have a formal leadership role but called himself “honorary chairman.”.css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-ok2gjs{font-size:17px;font-weight:300;line-height:25px;}.css-ok2gjs a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}How Times reporters cover politics. We rely on our journalists to be independent observers. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause.Learn more about our process.“I won’t promise anything for now, besides this: I will work hard to find solutions to the opioid and joblessness problems, and when we identify workable solutions, we’ll do something about them,” he wrote to members of his advisory board in 2017. He signed off, “Looking forward to doing some good, JD.”Mr. Vance wanted to help grandparents, like his, who stepped in to raise children when parents were absent or unable. The task of figuring out how to do so fell to Jamil Jivani, a friend of Vance’s from Yale Law School who had been hired as the group’s director of law and policy. Mr. Jivani and two researchers paid by Ohio State University — where Mr. Vance was a “scholar in residence” in the political science department — spent months researching family law, looking for policies that could be changed.At the time, Mr. Vance was traveling for speeches, working for an investment firm and splitting his time between Ohio and Washington, where his wife and young son lived. Mr. Vance was largely absent from the nonprofit group’s offices, according to an employee at the organization, who asked not to be identified while describing the group’s inner workings. The person often studied in Mr. Vance’s spacious and frequently empty office on campus. “It was very quiet,” the person said.Another person who worked for the nonprofit group said that, in hindsight, it had seemed aimed at serving Mr. Vance’s ambition by giving him a presence in a state where he had not lived full-time for several years. The person said it had felt as if much of the job involved giving outsiders the impression that Mr. Vance was in the state, said the person, who asked not to be identified for fear of antagonizing Mr. Vance and his supporters.In November 2017, the group’s research produced a result: an op-ed in The Cleveland Plain Dealer. In that piece, Mr. Vance urged the Ohio Legislature to adopt a bill that would help “kinship caregivers” like his grandparents.Mr. Vance’s group did not make much of an impact in the effort to pass the bill, said former State Representative Jeff Rezabek, a Republican who sponsored it. The legislation stalled that year, although similar legislation eventually passed later, after Mr. Vance’s group had become largely inactive.At the same time, in 2017 and early 2018, Mr. Vance was gradually starting to do the thing that he had said he wouldn’t: politics. He spoke at G.O.P. Lincoln Day dinners around Ohio. He publicly flirted with running for the Senate as a Republican in 2018 — even, reportedly, commissioning a poll to see if his attacks on Trump would hold him back.“J.D. is giving serious consideration toward this, because there are very serious people asking him to run,” Mr. Vance’s political adviser, Jai Chabria, told CNN in early 2018.Mr. Chabria’s firm Mercury L.L.C. was paid $63,425 by Our Ohio Renewal for “management services” in 2017. Although the group listed him in official documents as its executive director, Mr. Chabria says, he was only a consultant for the nonprofit. Mr. Jivani, the director of law and policy, actually ran the group.“Someone needed to get the paperwork started to launch it, but I was never tasked with running the day-to-day operations of the organization,” Mr. Chabria wrote in an email to The Times.He said the nonprofit group had never paid him to advise Mr. Vance personally during that time. He did that for free.Our Ohio Renewal also paid a salary to Mr. Vance’s personal assistant, who scheduled Mr. Vance’s appearances at events including Republican gatherings. Mr. Chabria defended that practice, saying that Mr. Vance had often mentioned Our Ohio Renewal at those talks.The assistant managed Mr. Vance’s calendar because he was a “central part” of the organization, Mr. Chabria wrote in an email, adding that Mr. Vance “was making regular public appearances in the media and at events to promote the activities of the group.”Tax-law experts said that was most likely permissible, given the looser rules around this type of nonprofit group.Also in 2017, Our Ohio Renewal said in annual filings that it had paid an unnamed pollster $45,000 for a survey “on social, cultural and general welfare needs of Ohio citizens.”That survey was one of the most expensive things Our Ohio Renewal ever paid for. But several employees said they had never seen it. “I don’t have any recollection of a survey and don’t have a copy of one,” Jennifer Best, who was both the group’s accountant and the treasurer of its board, said in an email message.Mr. Chabria saw the survey, but he said he no longer had a copy to share. He said it had tested messages about Our Ohio Renewal’s work and “did not ask questions on any potential candidacy” by Mr. Vance himself.In February 2018, Mr. Jivani — the director of law and policy who ran Our Ohio Renewal day to day — was diagnosed with cancer.Jamil Jivani at his family’s home in Toronto in 2018 after his cancer diagnosis.Andrew Francis Wallace/Toronto Star via Getty ImagesAfter that, Our Ohio Renewal seemed to freeze.It stopped tweeting. Its website trumpeted the same “Latest News” — a story from January 2018 — for nearly two years and then shut off, according to archived versions of the page (Ohio Democrats have taken over the group’s old domain and are using it to mock Mr. Vance). The group’s financial activity slowed sharply, and its bank account ran down to zero, according to Ms. Best, the treasurer.Finally, she told the Internal Revenue Service that the group was finished at the end of 2020.Mr. Jivani, whose cancer is now in remission, blames the group’s demise on his own bad luck.“As much as I wanted to, I could not take care of the day-to-day needs of this organization to help it scale,” he said.Mr. Vance did not respond to questions about why he had let the organization collapse after Mr. Jivani’s diagnosis.Now, Mr. Vance is in a tight Senate race, with Mr. Chabria as his chief strategist. In his most recent financial disclosures, Mr. Vance listed himself as “honorary chairman” of Our Ohio Renewal, even though it no longer existed. Under the time frame, he wrote, “Jan 2017 to present.” More

  • in

    Why Zombie Reaganomics Still Rules the G.O.P.

    What’s my plan for the next two years? I will be happy, healthy and successful. What will I do to achieve these things? What are you, a Marxist?I’ve now summarized the essence of the Commitment to America announced by House Republicans last week. This “plan” was obviously meant to evoke Newt Gingrich’s 1994 Contract With America, which was followed by a Republican takeover of Congress.But the Contract With America, love it or hate it — put me in the latter category — offered a fairly specific policy agenda, with a list of planned legislation. What Republicans have just released, by contrast, is mainly a list of good things they claim will happen, with barely a hint of how they propose to make them happen.If you squint hard at the economics section of the Commitment to America, however, you can see the faint outlines of a familiar set of ideas — zombie Reaganomics. Which raises a question: Why are deregulation, benefit cuts and tax breaks for the rich still the ruling ideology of a party that now claims to stand for the working class?Before I get there, a couple of notes on what the economics portion of the commitment actually says.First, it’s striking how many of the economic complaints are about things that are barely, if at all, affected by government policy, like the price of gas (which has come down a lot since its peak) and supply-chain disruptions (which have been diminishing).Second, immediately after declaring that “we have a plan to fix the economy,” House Republicans say that they will “curb wasteful government spending.” As anyone who follows budget debates knows, that’s the ultimate weasel phrase. What spending are we talking about, specifically?Bear in mind that the federal government is basically an insurance company with an army: The great bulk of spending is on health care, retirement and the military. You can’t meaningfully cut expenditure without attacking at least one of these. So which parts of that spending are wasteful?Well, Senator Rick Scott, the chair of the National Republican Senatorial Committee, has called for sunsetting all federal programs — including Social Security and Medicare — every five years, which would open the door to gutting America’s social safety net. Other Republicans have tried to distance themselves from that idea, although without removing Scott from his position. But again, what is this wasteful spending they propose to cut?But back to the commitment. Its economic program, such as it is, calls for “pro-growth tax and deregulatory policies.” No specifics, but this is clearly a call for zombie Reaganomics.Why “zombie”? Because we now have four decades’ worth of experience showing that deregulation and tax cuts for the rich do not, in fact, produce higher wages and faster economic growth. So the idea that tax cuts are the secret of prosperity should be dead, yet somehow it’s still shambling along, eating Republican brains.Of course, I’m just saying that because I’m a Marxist. (I’m not, but that’s what modern Republicans call anyone who supports progressive taxation and social insurance.) But for what it’s worth, financial markets share my skepticism. Look at what’s happening in Britain, where Prime Minister Liz Truss’s recent announcement of a Reaganite economic plan sent interest rates soaring and the pound plunging.Which brings me back to my original question: Why is the G.O.P. still committed to a failed economic ideology?For a long time, the G.O.P. seemed to fit the portrait famously drawn by Thomas Frank in his book “What’s the Matter With Kansas?” That is, it was a party mostly dedicated to making the rich richer that managed to win elections on social issues — which in practice meant catering to bigotry while campaigning, then pivoting to tax and benefit cuts immediately afterward.With the rise of MAGA, however, catering to bigotry is no longer a marketing device; it’s the party’s main agenda. In that case, however, why continue plutocrat-friendly policies? Why not add some actual populism to the mix? Why did Representative Kevin McCarthy, who will likely become speaker if Republicans take the House, declare that his first bill would be one to repeal additional funding for the Internal Revenue Service, allowing wealthy tax cheats to breathe easy?Part of the answer may be that anti-abortion, anti-L.G.B.T.Q., anti-immigrant warriors don’t know or care much about economic policy, so they’ve left it in the hands of the usual suspects — congressional staff members, conservative think tankers and other apparatchiks who’ve spent their whole careers promoting the tax-cut mystique.But there may also be a strategy here. Billionaires may no longer run the G.O.P. the way they used to, but the party still wants their money. So plutocrat-friendly policies may be a way of keeping wealthy donors and corporations on board, even if many of them are uncomfortable with the right-wing social agenda.This strategy depends, however, on working-class voters not realizing what Republicans are up to. Hence the vacuous nature of the Commitment to America; any acknowledgment of what the G.O.P. might actually do could be a big political problem.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More

  • in

    Jim Florio, New Jersey Governor Undone by Tax Hike, Dies at 85

    A Democrat, he had successes on gun control, the environment and property-tax relief, but after raising income and sales taxes, he lost a bid for re-election.Jim Florio, who was elected governor of New Jersey in 1989 by persuading voters that he would not raise state taxes but who then pushed through a record increase shortly after taking office, incurring public wrath that led to his defeat in his bid for a second term, died on Sunday. He was 85.His law partner Douglas Steinhardt announced the death on Twitter on Monday but did not specify the cause or place of death.The nation was facing a worsening economy and New Jersey the prospect of a yawning budget deficit when Mr. Florio, then an eight-term Democratic congressman, insisted during his campaign that he would balance the budget only by cutting waste in state spending.But two months after taking office in January 1990 he proposed a budget that called for sharp increases in income and sales taxes totaling more than $2.5 billion, in addition to deep cuts in most state services.He had no choice, he said. On taking a close look at the state’s books after he took office, he said, it was plain that just cutting spending would not be enough to balance the budget. Mr. Florio said tax-revenue projections by the previous Republican administration of Gov. Thomas H. Kean Sr. had been grossly overstated, even “phony,” and made even the deep spending cuts he proposed insufficient by themselves.Public reaction was harsh. Many New Jerseyans felt betrayed, asserting that Mr. Florio had broken a firm pledge not to increase taxes. Many fellow Democratic politicians expressed shock at the extent of the proposed increases, and some budget experts said that Mr. Florio had ignored evidence during the campaign that tax increases would be unavoidable.Ultimately, however, the Democratic-controlled State Senate and Assembly approved his plan by slim margins.More popular were his successes in enacting auto-insurance reform aimed at lowering the steep premiums that the state’s residents had been paying; pushing for property-tax relief for many middle-income homeowners, a measure approved by the State Legislature; and appointing an environmental prosecutor to crack down on the state’s notoriously polluting industries.Mr. Florio also won legislation to ban semiautomatic assault weapons, then prevailed over intense efforts led by the National Rifle Association to have the law repealed. And he successfully pushed a bill that shifted a substantial amount of state aid from affluent public school districts to lower and moderate-income ones — a measure that proved widely divisive.But the tax increases were his undoing. Feeding off voters’ anger, Republicans for the first time in two decades gained control of both houses of the legislature in 1991, and in a close election two years later, Mr. Florio was denied a second term by Christine Todd Whitman, a former Somerset County freeholder and scion of a prominent New Jersey family who became the state’s first woman governor.To his supporters, Mr. Florio — who preferred to be called Jim, and the news media obliged — was a tough-minded liberal with an independent streak. The John F. Kennedy Library Foundation gave him its Profile in Courage Award in 1993. Mr. Florio, the foundation said, had shown “courageous political leadership in gun control, education and economic reform,” including having “risked political and public criticism when he swiftly and boldly restructured the state’s income tax system.”Detractors called Mr. Florio stiff-necked. He shrugged off that assessment in his speech accepting the Profile in Courage Award, saying: “The first thing I learned as governor is that you can’t please everybody. The second thing I learned is some days you can’t please anybody. So be it.”Mr. Florio had won the governorship after two previously unsuccessful races for the office during the 15 years he served in Congress, where he made a name nationally as an environmental protection advocate. Most prominently, he helped spearhead the 1980 Superfund legislation to clean up dangerous toxic waste dumps and chemical spills across the country.In Congress, representing the Camden area, he gained a reputation as a hard worker and a frugal one.“My philosophy has always been, I have one pair of shoes because I have one pair of feet,” he said at the time. “My father always worked, always worked very hard. It is just beyond comprehension that anyone would not.”James Joseph Florio was born in Brooklyn on Aug. 29, 1937. His father was a shipyard painter.Mr. Florio dropped out of high school to serve in the Navy, where he earned a high school equivalency diploma. He was also an amateur boxer, an avocation that left him with a permanently sunken left cheekbone. He later served in the Navy Reserve for 17 years, rising to lieutenant commander.Mr. Florio graduated from Trenton State College (today the College of New Jersey) in 1962 and from Rutgers Law School in 1967. While in college he married Maryanne Spaeth. The marriage ended in divorce, and in 1988 he married Lucinda Coleman.Information about Mr. Florio’s survivors was not immediately available.Mr. Florio began practicing law in Camden, became active in local politics and served in the State Assembly in the 1970s. He lost a race for Congress in 1972 to the Republican incumbent, John E. Hunt. But in a return match two years later he defeated Mr. Hunt and served in the House until he was elected governor in 1989.He first ran for governor in 1977 as one of nine Democrats seeking to unseat a fellow Democrat, Gov. Brendan T. Byrne. Mr. Byrne defeated them in the primary and then prevailed in the general election.Mr. Florio ran again in 1981, winning the Democratic nomination but losing the general election to Mr. Kean, a moderate Republican, by a hair — fewer than 2,000 votes out of 2.3 million cast.In 1989, Mr. Florio easily won the Democratic nomination and then handily defeated his Republican opponent, Rep. James A. Courter. As the highly conservative Mr. Courter took a hard line against big government and taxes, Mr. Florio called himself part of “the sensible center” who would pursue policies like fighting pollution and steep auto insurance rates while holding the line on taxes.In seeking re-election in 1993, Mr. Florio had no Democratic primary opponent, even as polls had long suggested that he was unlikely to win in the general election. But as the race with Ms. Whitman heated up, polls showed it had tightened in the weeks before Election Day.Mr. Florio charged that Ms. Whitman, who had not held an elected post above the county level, was too inexperienced to run the state and that, coming from one of its wealthiest families, was out of touch with the needs of most residents. “There are no blue bloods” where he grew up in Brooklyn, Mr. Florio said time and again.Ms. Whitman hammered away at the Florio tax increases, pledged to cut income taxes by 30 percent over three years and accused the incumbent of waging a campaign based on class warfare.In the end, she narrowly won, with 49 percent of the vote to his 48 percent, while more than a dozen independent candidates shared the rest.It was not Mr. Florio’s last hurrah. In 2000 he ran for the Democratic nomination for the United States Senate seat being vacated by a fellow Democrat, Frank R. Lautenberg.Mr. Florio faced a Wall Street multimillionaire and novice politician, Jon S. Corzine, who maintained that Mr. Florio, with his sharp tax increases as the economy sank into a recession in 1990, “took a problem and made it a crisis.” Mr. Florio questioned his opponent’s qualifications for the office and accused him of sounding like a Republican.Mr. Corzine, who outspent Mr. Florio by 14 to 1 — $35 million to $2.5 million — won easily, and then won the general election. Mr. Corzine left the Senate in 2006 after being elected governor and served one term, defeated for re-election in 2009 by the Republican Chris Christie, a prosecutor at the time.After losing his bid for a second term as governor, Mr. Florio returned to private law practice. But he remained active in environmental matters. From 2002 to 2005 he served as chairman of the New Jersey Pinelands Commission, which works to preserve the state’s Pine Barrens, the 1.1 million acres of semi-wilderness spanning parts of seven counties. While in Congress, Mr. Florio had pressed for federal support of such efforts.Alex Traub More