Bloomberg View (Opinion)
By Al Hunt
February 28, 2016
A
powerful force driving Donald Trump and Bernie Sanders in the
presidential race is the frustration of grass-roots voters that
politicians in Washington haven't kept
their promises.
How the U.S. Elects Its Presidents
Democrats,
though still high on President Barack Obama, are upset about an
economic recovery that benefited Wall Street more than Main Street, top
executives more than
workers.
The
anger is more palpable among Republican voters, who ushered in big
congressional majorities for the party, expecting to end Obamacare,
reduce the size of government,
cut taxes and bolster national security. None of it happened.
With
that track record of broken promises and with Trump emerging as the
likely Republican presidential nominee, it's good to look at his
prominent promises and the critiques:
National
Security: Trump has pledged to be tough, to defeat the Islamic State by
bombing oil fields, which he would then turn over to U.S. oil
companies. He would force
Arabs to do the fighting against the Islamic State. He says he would
"get along very well" with the Russian strongman Vladimir Putin, whom he
has praised as a strong leader. He gets his foreign policy advice from
watching television news programs, he says.
This
doesn't impress many foreign policy experts. "He has said very little
of substance," says former Senator Richard Lugar, an Indiana Republican
who was chairman of
the Foreign Relations Committee. "It appears he doesn't have a real
grasp of the range of complex issues or hasn't done his homework."
Adds
Leon Panetta, who served as defense secretary and Central Intelligence
Agency director in the Obama administration: "It's the sort of stuff you
expect to hear at
the bar at the country club."
Mass
Deportations: Trump proposes removing 11 million undocumented
immigrants within two years. He poses the challenge in simple terms:
"They say you have to go through
a huge legal process. You don't. They are illegal."
The
American Action Forum, a right-of-center research organization run by
Douglas Holtz-Eakin, a prominent Republican economist, will soon release
a study on the economic
impact of Trump's plan: The number of personnel devoted to
apprehensions would soar to 90,582 from 4,844; the number of attorneys
and courts would increase twentyfold; the number of detention beds would
have to increase tenfold and almost 100,000 chartered
buses and flights would be required. American Action estimates that the
cost to the economy would be $1 trillion.
The
nonpartisan Pew Research Center calculates that the deportations would
cause big job losses in sectors of the economy: 26 percent of farming,
fishing and forestry
workers; 17 percent of building maintenance and cleaning personnel, 14
percent of construction workers. The liberal Center for American
Progress says studies show that many of these jobs would go unfilled,
devastating the economy.
The
Border Wall: Trump vows to build a wall along the Mexican border that
would cost about $8 billion and that would be paid for by Mexico.
Experts
ridicule that possibility. "The Mexicans treat this with total
disdain," says Alex Nowrasteh of the libertarian Cato Institute. "I
don't know any policy people
that take this seriously."
Trade:
Trump would impose tariffs on some goods from Mexico and huge penalties
on imports from China, from 25 percent to 45 percent. These countries
are cheating America
on trade, he charges.
But
trade specialists note that he couldn't do this unilaterally. "No
president in our lifetime has ever contemplated anything like this, but I
believe Congress would
have to act," says Susan Schwab, who was U.S. trade representative
under President George W. Bush. Moreover, she says this would be in
violation of international trade rules and Mexico and China would
respond by going to the World Trade Organization, where
they would win a judgment. Or they could retaliate against U.S. goods,
such as agricultural products, which would "inflict great damage."
Taxes:
Trump proposes a huge across-the-board tax cut that he says would make
the U.S. more competitive, take 75 million people off the tax rolls and
create more equity.
It would pay for itself by eliminating some deductions and credits.
Expert
analysis shows that it would indeed take tens of millions off the tax
rolls. But little else holds up. Both the left-of-center Tax Policy
Center and the right-of-center
Tax Foundation agree that the Trump plan doesn't come close to paying
for itself, and would cost more than $9 trillion in revenue over the
first decade. Both concur that it's heavily skewed in favor of the
wealthiest taxpayers.
Even
Trump's promise to crack down on hedge-fund and private-equity
executives who benefit from a lower tax rate on capital gains, instead
of the top ordinary income rate
on carried interest, doesn’t hold up. Many of these arrangements are
partnerships and Trump's plan also calls for the top corporate rate to
drop to 15 percent, a little lower than the top capital gains rate.
To
date, Trump has been immune from substantive criticism, and he may have
answers to these complaints, though he has been questioned passively.
His Republican rivals
began to grill him on issues such as health care; that should be just
the start.
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