Sunday School 8/7/22: Extra Credit

The Sunday School lesson came from Meet the Press, winner of the lucky classroom drawing. For today's Extra Credit, we're wandering down the hall to the CNN State of the Union classroom to catch Dana Bash and Sens. Dick Blumenthal (D-CT) and Lindsay Graham (R-SC).  I know, I'm breaking with my new 'one classroom policy' but I thought this one was interesting.

Bash asked Blumenthal how the Inflation Reduction Act would help Americans. He spoke about cuts in drug costs, energy costs, and "greater tax fairness" because corporations with assets or earnings of more than a billion dollars "currently paying nothing will have to pay at least 15%." He said gas prices will continue going down, and "necessities" will also decline. Altogether, he said, "I think Americans will see historic results."

Graham chimed in, saying "this is not the bipartisan part of the interview," and proceeded to slam the American Rescue Plan ("it became a recession plan") and the new bill, which he said "is going to make everything worse." And even though he voted for the bipartisan infrastructure bill and the gun bill, he's a no on this.

... If a company buys a piece of equipment, they could expense it under the 2017 tax cut in the same year they bought it. That goes away. So, CBO says it disincentivizes companies for building factories, buying equipment, which would help us get out of recession. There's a 16.4% tax on imported barrels of oil that are going to increase cost at the gas pump. Subsidies for Obamacare go to families making $304,000 a year, which I think is ill-conceived. And the bottom line, it's not going to help inflation.

Bash didn't question Graham's claim on the subsidies, nor did she ask if the Rs have an alternative for the estimated 3 million people who would lose insurance, or the 10 million who would see a sharp increase in their premiums this fall.

Graham is upset that the deficit is only being reduced by $100B, while the spending is about $750 trillion. And, about the subsidies, he said "we all know they're not going to go away. So, if they stayed in place for 10 years, it would add $280 billion to the deficit. So, it's a gimmick.... no Republican is going to vote for it."

Blumenthal said "one thing where I think we can agree... is the IRS is going to have resources it needs to go after the highest-income Americans that are cheating on their taxes right now. And that will mean more money for the government." And, he continued,

 ... the average American sitting at their kitchen table deciding whether they can buy medicine, pay their mortgage, or go to the grocery store and get the food they need, they're going to be able to get that medicine much more cheaply…Overwhelmingly, the American people want to cut the cost of prescription drugs. This measure does it through enabling Medicare to do what the VA does, what the Department of Defense does, negotiate for lower prices. And that will affect the entire course of inflation.

 Graham wasn't having it.

... They take 15 drugs, and they put a limit on what you can charge. That sounds good, until pharmaceutical companies invent less new drugs. Remember COVID? Well, it was the American pharmaceutical industry that got us the drugs that keep us out of the hospital and keep a lot of us alive. This is price-fixing. It has never worked for us. It's not going to work now. Hiring 86,000 more IRS agents, if that makes you feel better, you have missed a lot. They're coming after waitresses, Uber drivers and everybody else to collect more taxes. So, if you think growing the IRS is good for you, you're wrong.

Blumenthal thinks that's just silly. Uber drivers and "everybody else" is going to be OK, because the IRS will be targeting the "highest-income Americans." 

The idea that there's going to be this army of IRS agents defending -- descending on the average American is just preposterous. Tax fairness is what we need. And for the biggest corporations in this country to pay no taxes, for them to do stock buybacks that benefit the shareholders, but, for example, in the case of oil companies, they are making three to four times what they did just last year. What are they doing with those excess windfall profits? Lowering gasoline prices? No. They aren't doing stock buybacks. They ought to pay a tax on it. And I think there ought to be rebates to consumers from those excess profits.

Let's move to the bipartisan part of the interview, where there's agreement that:

• we should label Russia a state sponsor of terrorism, that we need to provide more military and humanitarian aid to Ukraine, and we need more sanctions on Russia. 
• Nancy Pelosi's trip to Taiwan wasn't a mistake; Blumenthal said "...the Chinese can't tell our legislators or any American citizens where to travel." Graham suggested her visit sends a message to Iran and Russia, not just China, adding we need Taiwan economically, and we need to provide it more economic and military support.
• we need to keep guns out of the hands of dangerous people, but not with a national red flag law, with incentives to states to help them to what they need to do - and due process must be a part of whatever that looks like.
• they'll both support their team's presidential candidate in '24; Graham wants Trump to be the candidate, as long as he doesn't talk about 2020, while Blumenthal wasn't definitive in whether he wanted Biden to run.

I'll leave it here

Graham: So, there are plenty of us up there (DC) who fight and work together. I just want the country to know that all is not lost in Washington.

Bash: Well, that's why we have you on... we all agree this is good for the country to see that you can disagree without being disagreeable, but also work together where you see those issues.

Blumenthal: And working together is what the American people really want. 

That's it, in a nutshell: work together, on behalf of the American people, not on furthering you party's interests.

See you around campus.