Taxes

The first PMQs of the year gave us a preview of the political debate we’ll be having for the next few months. Labour went after the government on inflation. Angela Rayner asked Boris Johnson why he had dismissed fears over it as unfounded back in October: Johnson denied he had said it — which is an odd claim given what he said in that interview. She then punched the Tory bruise, by asking why Johnson wasn’t cutting VAT on fuel, as he had said he would do during the EU referendum. Johnson made the point that this help wouldn’t be well targeted, which is true. But the political pressure for this from Labour and his own backbenchers are going to make it very hard for him to resist.

By removing Donald Trump from social media and New York governor Andrew Cuomo from office, progressives unwittingly gave an opening to a largely unheralded candidate in New Jersey. That’s why the newspaper headlines on the Wednesday morning after the election all declared the governor’s race in the Garden State “too close to call,” which in itself is a victory for beleaguered Republicans from the northeast. And even if Democratic governor Phil Murphy does pull it off, as now looks likely, this election portends serious headaches for Democrats.

The Tory party has reached a fork in the road, I say in the Times today. One path involves sticking to the spending plans, hoping to cut taxes before the next election and getting rid of the new perception of them as tax raisers. The other drags them into ever more spending, led by big increases in public sector pay, and ends with them going to the country as a high-tax party. In his Budget speech and his address to Tory MPs, Rishi Sunak made clear that his preference was for the former approach, which should cut taxes before the country goes to the polls again. But sticking to even the spending limits set out this week will require tough choices that the Tories have not wanted to make in recent years.

Is Rishi Sunak a low tax chancellor? He certainly likes to tell anyone who will listen that he is. Yet his actions tend to suggest the opposite. The tax burden is currently on track to reach its highest level since the early 1950s, and while Sunak unveiled one big tax slash in the Budget in the universal credit taper rate cut, the main thrust of Sunak's announcements was spend, spend, spend. Tonight Sunak addressed Tory MPs at a meeting of the 1922 committee. After announcing £150 billion in extra public spending, Sunak sought to convince his party that, despite this, he was committed to lowering taxes.

There is a spot of Washington DC, a few blocks of downtown not far from the White House, where a cigarette is your only hope. The buildings are garish blocks of glass — 'like someone overturned a giant ice cube tray,' as one wag put it — while the color palette runs from charcoal gray to navy gray. The place can feel like ennui embodied, and all the worse when rain darkens the air and the streets fill with the soulless din of tires swishing through puddles. It can wear on you, this drab slice of middle-managerial noir. But at least for me, there is one thing that can brighten it up: cigarette smoke. I might catch it off a passerby or light up a Marlboro myself. But either way I feel paradoxically improved. I think, at least someone here is having a good time.

President Joe Biden just proposed the largest budget (as a percentage of America’s economy) since the country was fighting Nazi Germany, Imperial Japan and Fascist Italy. He’s doing it when there is no emergency, only an overweening desire to pass progressive programs quickly, before they lose their legislative majority. The best historical analogue to his proposed budget increase is Lyndon Johnson’s cradle-to-grave Great Society Program. It has the same flaws. In fact, Biden’s program is best understood as the next step in a long political arc, extending from Franklin Roosevelt to LBJ to Obamacare. All of them proposed centralized government solutions to almost every social problem, particularly endemic problems among the poor.

Mark Sanford might not eat brains, but he is the closest thing in American politics to the living dead, an authentic Zombie Republican. His career died a decade ago when he was governor of South Carolina and absented himself from office for a few days to go off hiking the Appalachian Trail – or rather boffing the Argentinian mistress. He was censured, nearly impeached, but clung to office anyway until his term expired in 2011. And then, two years later, he shambled back to a familiar haunt, the US House of Representatives. Sanford began his brief national career as a Class of ’94 House Republican insurgent. And there he was again, nearly a decade later, after winning a 2013 special election.

Here’s a wild idea: what if Congressmen and women weren’t allowed to hire accountants or lawyers, use software or go to H&R Block to fill out their tax returns? What if, like that brave 10 percent who do their taxes themselves, Congress had to sit down and do their taxes on their own? Their first time would be atrocious: wading through hundreds of pages of tax code, endless provisions, starting their forms out from scratch when they got something wrong. All this with the fear of making a mistake and getting audited, with nobody to blame but themselves. It would be glorious: our legislators would be forced to acknowledge how monstrous the tax system is.