Jeb Bush Wants Me to Do More What?
Yesterday, Republican hopeful Jeb Bush ticked off hard-working Americans everywhere when he said that in order to grow the economy, people had to work longer hours. Here’s the skinny:
What He Said: “My aspiration for the country--and I believe we can achieve it--is 4 percent growth as far as the eye can see. Which means we have to be a lot more productive. Workforce participation has to rise from its all-time modern lows. It means that people need to work longer hours and, through their productivity, gain more income for their families. That’s the only way we’re going to get out of this rut that we’re in.”
This Is All We Heard: “People need to work longer hours.” And “Let them eat cake.” Then we played Hall & Oates “Out of Touch” a few times.
Related: Microsoft Hangs Up on Nokia, Cuts 7,800 Jobs
Then He Talked Some More. Later Bush clarified that his remarks really were in reference to underemployment and part-time workers. His campaign cited stark statistics of falling workforce participation, which are currently at their lowest level since October 1977. It also was a dig at Obamacare, which had previously defined the work week for a full-time employee at 30 hours, causing many employers to cap work weeks at 29 hours.
Who’s right? Well, as it turns out, both are. Workforce participation in the U.S. is at 62.6 percent. The Bureau of Labor says there are 6.5 million people in the U.S. who are working part-time because they can’t find full-time employment.
But it’s also true that many Americans are already putting in longer hours, and taking fewer and shorter vacations. A recent Time cover story called out, “Save the American Vacation” and referred to us as a “no-vacation nation.” A 2014 Gallup poll claims the average work week for many Americans who work full-time is more like 47 hours (not 40), and 21 percent report they work between 50 to 59 hours per week. Another 18 percent said they work 60 hours or more. (Only the South Koreans work harder, but we really don’t want to emulate them.)
That didn’t stop Democratic rivals from hollering back. Presidential candidate Hillary Clinton Tweeted: “Anyone who believes Americans aren’t working hard enough hasn’t met enough American workers.”
So there—for now.
Quote of the Day: A Big Hurdle for the Tax Cuts
“He goes in and campaigns on an issue, and the challenge is he then talks about executing drug dealers. Why do you think the press is going to cover the tax cuts if you’ve given them the much more exciting issue?”
-- Grover Norquist, president of tax-cutting advocacy group Americans for Tax Reform, on President Trump’s failure to sell the tax law.
The Obamacare Mandate That Could Produce $12 Billion in Fines in 2018
Republicans effectively eliminated the individual Obamacare mandate in the tax package signed late last year. Although the new regulation reducing the mandate penalty to zero doesn’t take effect until 2019, President Trump has cited the rule change as a victory over the health law so many conservatives oppose. “Essentially, we are getting rid of Obamacare. Some people would say, essentially, we have gotten rid of it," Trump told a crowd in Michigan two weeks ago.
However, many parts of the Affordable Care Act are still in effect and will continue to operate even after the individual mandate is eliminated in 2019.
In particular, the employer mandate, which requires companies with more than 50 employees to offer health benefits or face fine of roughly $2,000 per worker, will continue to play a significant role in the Obamacare system. The Congressional Budget Office estimates that the mandate will produce more than $12 billion in fines in 2018 alone.
Some conservative groups are pushing lawmakers to stop enforcing the employer mandate, but the IRS is still working to enforce the law. According to The New York Times Monday, the IRS is sending out notices to more than 30,000 businesses that have failed to comply.
Chart of the Day: It’s Still the Economy, Stupid
Security may be the top policy issue for Republican voters, but the economy is the top concern for Democrats, independents and voters overall, according to Morning Consult’s latest polling on the midterm elections. Health care is third on the list, followed by “seniors’ issues.” The results are based on surveys with more than 275,000 registered U.S. voters from February 1 to April 30.
Number of the Day: $13 Billion
An analysis by Bloomberg finds that the roughly 180 companies in the S&P 500 that have reported earnings for the first three months of the year saved almost $13 billion thanks to the corporate tax cut enacted late last year. Those companies’ effective tax rate dropped by more than 6 percentage points on average. About a third of the tax savings went to 44 financial firms.
How a Florida Doctor with Social Ties to Trump Delayed a $16B Billion VA Project
A West Palm Beach doctor who is friends with Ike Perlmutter, the chairman of Marvel Entertainment and an informal adviser to President Trump on veterans’ issues, has held up “the biggest health information technology project in history — the transformation of the VA’s digital records system,” Politico’s Arthur Allen reports. Dr. Bruce Moskowitz “objected to the $16 billion Department of Veterans Affairs project because he doesn’t like the Cerner Corp. software he uses at two Florida hospitals, according to four former and current senior VA officials. Cerner technology is a cornerstone of the VA project. … Moskowitz’s concerns effectively delayed the agreement for months, the sources said.” Read the full story.