Every new Administration follows its traditional tax policy. New Republican Presidents or Republican controlled Congresses try to cut taxes on the rich and cut costs by restricting entitlements for the poor. Democratic Administrations or Congress's try to do the reverse: raise taxes for the rich and expand entitlements for the poor. Despite Trump’s outrageous and unprecedented assaults on permanent government structures, such as USAID and the Treasury Department payment system, Trump is following the playbook of Republican tax policy. There will be a fight in Congress in early March about how many taxes and programs to cut.
That is at least one of the key issues in any government whether or not such negotiations on either side is corrupt or self-serving rather than crafting tax policy for the interests of the people. Tax policy is an essential part of all governments. Just as businesses all engage in producing products or services such as lawn care or automobiles to be sold to individual consumers, just as they also package and advertise their wares, and also collect and monitor their receipts, all governments engage in parallel functions. They provide social services such as welfare and agricultural price supports and maintain defense departments and food safety; they appeal to their constituents for votes, which is the equivalent of purchases, and engage in campaigning, which otherwise is advertising, and they do the equivalent of getting remuneration by getting taxes. Ever has it been since governments began. The elders (but maybe not the old men) got the best parts of the giraffes the Pygmies had slain.
Here, however, is a problem faced by modern societies as that was outlined in the Fifties in John Kennnethj Galbraith’s “The Affluent Society”, those ideas still central to my thinking. The United States was very successful at providing individually produced privately owned goods and services. Competition might be redundant but effective at getting better products and services cheaper-- though I wonder about the entertainment industry which now, through streaming and cable, charges people to watch baseball and football when they used to be free. Clearly, though, Galbraith claimed, collective goods and services such as fire departments and police departments, which make better sense to buy as a group rather than individually, because your house can get fire from an adjacent house that does not individually buy fire department services, the same true of regulations on clean air or defense establishments and the NLRB, are undersubscribed, even if some people conceive of how to package individual purchases of old age pensions and FEMA services. Taxes are not sufficiently raised to deal with the levels of demand needed by collective purchases. So American health care and education and struggling populations in Appalachia and the inner cities are not well serviced. And so there is a real fight in every Administration over whether to change the balance between collective and individual services and congresspeople are very articulate about this real issue, some finding the private or the public sector at fault, business ripping off consumers or government lazy and incompetent. These are rock bottom perceptions, Trump or not.