RUTHFULLY YOURS

Lowering taxes, as presidents Kennedy and Reagan demonstrated, boosts economic growth. What is important is not that some rich people get richer, but that the vast majority of people benefit. How many Americans who despise Trump will revel in the extra wealth he has now allowed them to retain?

In Australia, and I suspect the UK and in Western Europe more generally, Donald Trump is widely despised. I try to cajole people. OK, I say, you don’t and never will like him, but can you at least look to see whether you like any or some of his policies. It is a forlorn endeavour. I will tell you why.

The vast majority of people get their news and views from the mainstream media or, if younger, from social media. Thus, the tax-reduction Christmas present that he and the US Congress are delivering to the American people (alas we are not getting one) is portrayed as benefiting the rich at the expense of the poor. That this is complete and utter tendentious drivel is by the way. Repeated often enough, it is a factoid in the making.

In fact, all but a few American taxpayers will benefit. Some with very high deductions which have now been removed or capped might not but, in the main, this will affect only the well-heeled. But here comes the rub. Those now paying most tax will on the whole gain the most benefit in absolute dollar terms. That’s the awesome power of arithmetic which so befuddles leftist minds.

In the United States, according to the Tax Policy Centre, 45% of households pay no federal income tax and, therefore, will not benefit from rate reductions. To illustrate the picture differently, the top 20% of individual income earners pay 87 percent of federal income taxes while the next 20 percent pay the rest. The bottom 60% pay a net zero percent.

For the edification of the left, halving taxes for those who pay little gives them little. Taking just five percent off taxes for those who pay an awful lot gives them much more. Democrats being Democrats, leftists being leftists, resist this unavoidable outcome with as much sanctimony as they can muster.

The real problem, of course, is that those on the left live in a static world of haves and have-nots, within which the division of the pie is the be-all and end-all. Once you are stuck in this world; as, say, is Bill Shorten, there is no exit point and around and around in circles you go preoccupied with inequality. In the end result, forcing more equal outcomes undermines market forces. The pie never grows to its potential.

The prime purpose of lowering taxes, as presidents Kennedy and Reagan argued, is to boost economic growth. What is important is not that some rich people get a lot richer out of this, but that the vast majority of people benefit.

Business taxes fall on owners or shareholders, on employees, and on customers. The incidence of benefit for any reduction in such taxes is hard to gauge. But rich and not-so-rich owners and shareholders are likely to benefit as are customers. Importantly, workers will potentially benefit though the creation of more jobs and higher pay. This is the main game. When it comes to lowering business taxes, the only question worth asking is how much lift will it likely give to jobs and economic growth. Unless you detest Trump, of course.

Nothing has been more tedious over the last year than the constant reminders that good journalism is “now more important than ever.” The implication, of course, is that solid, groundbreaking reporting was not as essential so long as a liberal Democrat was in power. I’ve long assumed that the factotums mouthing such clichés lack the self-awareness to understand the true import of their words. But maybe I’ve been wrong. Recent days brought evidence that, no, liberals really mean it: The only meaningful investigative work is that which reflects poorly on Republicans.

Earlier this week, for example, Politico Magazine published a story by Josh Meyer headlined “The secret backstory of how Obama let Hezbollah off the hook.” This epic and copiously sourced piece relates how, “in its determination to secure a nuclear deal with Iran, the Obama administration derailed an ambitious law enforcement campaign targeting drug trafficking by the Iranian-backed terrorist group Hezbollah, even as it [Hezbollah, not the Obama administration] was funneling cocaine into the United States.”

The law-enforcement program in question is called Project Cassandra, which for eight years “used wiretaps, undercover operations, and informants to map Hezbollah’s illicit networks, with the help of 30 U.S. and foreign security agencies.” However, as investigators came closer to unraveling the globe-spanning conspiracy, “the Justice Department declined requests by Project Cassandra and other authorities to file criminal charges against major players such as Hezbollah’s high-profile envoy to Iran, a Lebanese bank that allegedly laundered billions in alleged drug profits, and a central player in a U.S.-based cell of the Iranian paramilitary Quds force.” Linger over that last item for a second.

Meyer cites “dozens” of interviews and documents as evidence. He quotes a veteran U.S. intelligence operative — the sort of guy whose every utterance is anonymously paraded in the newspapers and magazines so long as it’s anti-Trump — who says, “This was a policy decision, it was a systematic decision.” And the reason for this systematic decision, presumably, was to make Hezbollah’s Iranian backers more willing to deal with the Obama administration on nukes.

Meyer points to congressional testimony from former Treasury official Katherine Bauer, who said last February, “These investigations were tamped down for fear of rocking Iran and jeopardizing the nuclear deal.” President Obama, in other words, slow-walked counter-narcotics efforts for the inane “greater good” of paying Iran billions to pretend to shut down its nuclear program for ten years. This is the very definition of “stupid stuff.”

Meyer is not an ideologue, not a partisan, not a quack. He worked for the Los Angeles Times, for NBC News, and for the Medill National Security Journalism Initiative before joining Politico as a senior investigative reporter. His Twitter feed contains plenty of criticisms of President Trump and congressional Republicans. And his story is solid. He explores different angles and gives his subjects fair comment. He’s produced a classic example of the good journalism that our betters tell us we need more than ever.

The FBI’s deputy director Andrew McCabe testified Tuesday at a marathon seven-hour closed-door hearing of the House Intelligence Committee. According to the now-infamous text message sent by FBI agent Peter Strzok to his paramour, FBI lawyer Lisa Page, it was in McCabe’s office that top FBI counterintelligence officials discussed what they saw as the frightening possibility of a Trump presidency.

That was during the stretch run of the 2016 campaign, no more than a couple of weeks after they started receiving the Steele dossier — the Clinton campaign’s opposition-research reports, written by former British spy Christopher Steele, about Trump’s purportedly conspiratorial relationship with Vladimir Putin’s regime in Russia.

Was it the Steele dossier that so frightened the FBI?

I think so.

There is a great deal of information to follow. But let’s cut to the chase: The Obama-era FBI and Justice Department had great faith in Steele because he had previously collaborated with the bureau on a big case. Plus, Steele was working on the Trump-Russia project with the wife of a top Obama Justice Department official, who was personally briefed by Steele. The upper ranks of the FBI and DOJ strongly preferred Trump’s opponent, Hillary Clinton, to the point of overlooking significant evidence of her felony misconduct, even as they turned up the heat on Trump. In sum, the FBI and DOJ were predisposed to believe the allegations in Steele’s dossier. Because of their confidence in Steele, because they were predisposed to believe his scandalous claims about Donald Trump, they made grossly inadequate efforts to verify his claims. Contrary to what I hoped would be the case, I’ve come to believe Steele’s claims were used to obtain FISA surveillance authority for an investigation of Trump.

There were layers of insulation between the Clinton campaign and Steele — the campaign and the Democratic party retained a law firm, which contracted with Fusion GPS, which in turn hired the former spy. At some point, though, perhaps early on, the FBI and DOJ learned that the dossier was actually a partisan opposition-research product. By then, they were dug in. No one, after all, would be any the wiser: Hillary would coast to victory, so Democrats would continue running the government; FISA materials are highly classified, so they’d be kept under wraps. Just as it had been with the Obama-era’s Fast and Furious and IRS scandals, any malfeasance would remain hidden.

The best laid schemes . . . gang aft agley.

Why It Matters
Strzok’s text about the meeting in McCabe’s office is dated August 16, 2016. As we’ll see, the date is important. According to Agent Strzok, with Election Day less than three months away, Page, the bureau lawyer, weighed in on Trump’s bid: “There’s no way he gets elected.” Strzok, however, believed that even if a Trump victory was the longest of long shots, the FBI “can’t take that risk.” He insisted that the bureau had no choice but to proceed with a plan to undermine Trump’s candidacy: “It’s like an insurance policy in the unlikely event you die before you’re 40.”