on this day 3/16 1964 – U.S. President Lyndon B. Johnson submitted a $1 billion war on Poverty program to Congress.


1190 – The Crusaders began the massacre of Jews in York, England.

1521 – Portuguese navigator Ferdinand Magellan reached the Philippines. He was killed the next month by natives.

1527 – The Emperor Babur defeated the Rajputs at the Battle of Kanvaha in India.

1621 – Samoset walked into the settlement of Plymouth Colony, later Plymouth, MA. Samoset was a native from the Monhegan tribe in Maine who spoke English.

1802 – The U.S. Congress established the West Point Military Academy in New York.

1836 – The Republic of Texas approved a constitution.

1850 – The novel “The Scarlet Letter,” by Nathaniel Hawthorne, was published for the first time.

1871 – The State of Delaware enacted the first fertilizer law.

1882 – The U.S. Senate approved a treaty allowing the United States to join the Red Cross.

1883 – Susan Hayhurst graduated from the Philadelphia College of Pharmacy. She was the first woman pharmacy graduate.

1907 – The world’s largest cruiser, the British Invincible was completed at Glasgow.

1908 – China released the Japanese steamship Tatsu Maru.

1909 – Cuba suffered its first revolt only six weeks after the inauguration of Gomez.

1913 – The 15,000-ton battleship Pennsylvania was launched at Newport News, VA.

1915 – The Federal Trade Commission began operation.

1917 – Russian Czar Nicholas II abdicated his throne.

1918 – Tallulah Bankhead made her New York acting debut with a role in “The Squab Farm.”

1926 – Physicist Robert H. Goddard launched the first liquid-fuel rocket.

1928 – The U.S. planned to send 1,000 more Marines to Nicaragua.

1935 – Adolf Hitler ordered a German rearmament and violated the Versailles Treaty.

1939 – Germany occupied the rest of Czechoslovakia.

1945 – Iwo Jima was declared secure by the Allies. However, small pockets of Japanese resistance still existed.

1946 – Algerian nationalist leader Ferhat Abbas was freed after spending a year in jail.

1946 – India called British Premier Attlee’s independence off contradictory and a propaganda move.

1947 – Martial law was withdrawn in Tel Aviv.

1950 – Congress voted to remove federal taxes on oleomargarine.

1964 – Paul Hornung and Alex Karras were reinstated to the NFL after an 11-month suspension for betting on football games.

1964 – U.S. President Lyndon B. Johnson submitted a $1 billion war on poverty program to Congress.

1968 – U.S. troops in Vietnam destroyed a village consisting mostly of women and children. The event is known as the My-Lai massacre.

1978 – Italian politician Aldo Moro was kidnapped by left-wing urban guerrillas. Moro was later murdered by the group.

1982 – Russia announced they would halt their deployment of new nuclear missiles in Western Europe.

1984 – Mozambique and South Africa signed a pact banning the support for one another’s internal enemies.

1984 – William Buckley, the CIA station chief in Beirut, was kidnapped by gunmen. He died while in captivity.

1985 – “A Chorus Line” played its 4,000 performance.

1985 – Terry Anderson, an Associated Press newsman, was taken hostage in Beirut. He was released in December 4, 1991.

1987 – “Bostonia” magazine printed an English translation of Albert Einstein’s last high school report card.

1988 – Indictments were issued for Lt. Colonel Oliver North, Vice Admiral John Poindexter of the National Security Council, and two others for their involvement in the Iran-Contra affair.

1988 – Mickey Thompson and his wife Trudy were shot to death in their driveway. Thompson, known as the “Speed King,” set nearly 500 auto speed endurance records including being the first person to travel more than 400 mph on land.

1989 – In the U.S.S.R., the Central Committee approved Gorbachev’s agrarian reform plan.

1989 – The Soviet Communist Party’s Central Committee approved large-scale agricultural reforms and elected the party’s 100 members to the Congress of People’s Deputies.

1993 – In France, ostrich meat was officially declared fit for human consumption.

1994 – Tonya Harding pled guilty in Portland, OR, to conspiracy to hinder prosecution for covering up the attack on her skating rival Nancy Kerrigan. She was fined $100,000. She was also banned from amateur figure skating.

1994 – Russia agreed to phase out production of weapons-grade plutonium.

1995 – NASA astronaut Norman Thagard became the first American to visit the Russian space station Mir.

1998 – Rwanda began mass trials for 1994 genocide with 125,000 suspects for 500,000 murders.

1999 – The 20 members of the European Union’s European Commission announced their resignations amid allegations of corruption and financial mismanagement.

trumps “NEW tax plan” will add to the $19 trillion U.S. debt.


Updated August 10, 2016.

Donald Trump - Photo by Al Bello/Getty Images
Presidential candidate Donald Trump attends a boxing match on October 17, 2015 in New York City.  Photo by Al Bello/Getty

Donald Trump’s 2016 economic plan focuses on “making America great again.” He is negotiating “the biggest deal of my life” with voters who feel they have lost the American Dream. Keep in mind that most of his promises require Congressional approval. There’s no indication that he’ll get it. Here are Trump’s economic plans, and how they would impact you if they did pass.

“5-Part Tax Plan”

On August 8, 2016, Trump modified his tax plan to appease Republicans in Congress. He raised the top income tax rate to reduce the deficit compared to his previous plan. That original plan would have increased the debt by $10 in the next ten years. That’s because today’s top tax rate is 39%. Trump’s new plan still lowers taxes from today’s level. That means it will add to the $19 trillion U.S. debt.

Trump would also add a childcare deduction. It would allow parents to deduct the average cost of childcare expenses. (Source: “An America First Economic Plan,” Donald J.

Trump. “Donald Trump Just Made Major Changes to His Tax Plan,” CNBC, August 8, 2016.)

Eliminate the marriage penalty, the Alternative Minimum Tax, and the inheritance tax. Quadruple the standard deduction. Simplify tax preparation by reducing the current 7 tax bracket to three. Create the following tax schedule:

Trump. “Donald Trump Just Made Major Changes to His Tax Plan,” CNBC, August 8, 2016.)

Eliminate the marriage penalty, the Alternative Minimum Tax, and the inheritance tax. Quadruple the standard deduction. Simplify tax preparation by reducing the current 7 tax bracket to three. Create the following tax schedule:

Tax Rates Income Levels for Those Filing As:
Current Plan Prior Plan Today’s  Rate Cap Gains/ Dividends Single Married Head of Household
0%  0% 10% – 15% 0% $0 – $25,000 $0 – $50,000 $0 – $37,500
12%  10% 15% – 25% 0% $25,000-$50,000 $50,001 – $100,000 $37,501 – $75,000
25%  20% 25% – 28% 15% $50,000 – $150,000 $100,000 – $300,000 $75,001 – $225,000
33%  21% 33% – 39% 20% $150,001 + $300,001 + $224,001+

 

Lower the maximum small business and corporate tax rate from 38% to 15%.  Get corporations to bring money back into the United States. Keep companies in this country. The United States is the highest taxed nation in the world.  He would get the right people into the room and all agree how to do it. The effective tax rate is only 15%. That’s because most corporations have figured out how to avoid it. Nearly half pay no taxes at all since they pass those taxes to their shareholders. A lower corporate tax rate would increase profits without necessarily creating new jobs. That’s because supply-side economics doesn’t work at today’s relatively low tax rates. (Source: “Donald Trump Tax Reform,” OnTheIssues.org.)

The taxes for the rich would go up somewhat. If I increase it on the wealthy, they’re still going to pay less than they pay now. Trump has given conflicting statements on how his tax plan will affect high-income taxpayers (the top 20%). They would receive a 9.5% decrease in the tax rate. (Source: “Donald Trump Tries to Clean Up Economic Comments,” CNN, May 10, 2016.)

Trump also says tax cuts would be offset by eliminating loopholes. The Tax Policy Center says it would add nearly $1 trillion a year to the debt. That’s because capital gains tax cuts stimulate investment more than it does economic growth as measured by the GDP growth rate. Lower income taxpayers spend a greater proportion of their income, boosting Gross Domestic Product. Trump only gives the middle class a 4.9% increase in after-tax incomes.  (Source: “An Analysis of Donald Trump’s Tax Plan,” Tax Policy Center, December 22, 2015. “Indecent Disclosure,” The Economist, January 2, 2015.)

End tax deferral on the $5 trillion in corporate cash held abroad. Allow a one-time repatriation that will be taxed 10%. Eliminate loopholes available to the very rich and corporations, such as the exemption on life insurance interest. Steepen the curve of the Personal Exemption Phaseout and the Pease Limitation on itemized deductions. Phase in a cap on business interest expenses. (Source: CNBC Interview, March 10, 2016. “Tax Reform,” DonaldJTrump.com.  )

Eliminate the “carried interest” deduction.  It allows managers of hedge funds and private equity funds to be taxed at  the capital gains tax rate (15%) instead of the income tax rate (39.6%). (Source: “Hedge Fund Managers Are Getting Away With Murder,” Fortune, August 24, 2015.)

“Cut Government Spending”

Make the U.S. military so strong no one will mess with us. Get more equipment. Bomb ISIS and send troops to Syria. Cancel Iran nuclear deal. Use Russia as an ally in Syria. Use waterboarding. Use military force against terrorists’ families. Opposed Iraq war. (Source: “Donald Trump on War & Peace,”  “Donald Trump on Homeland Security,” OntheIssues.org. “Donald Trump and the Defense Budget,” National Interest.org, December 30, 2015.)

Cut defense spending, but 3% of GNP for military spending is too low, it should be 6.5%. U.S. military spending is almost $800 billion a year. It’s larger than anything other government expenditure except Social Security at $967 billion. It’s bigger than the deficit of $503 billion. It’s greater than those of the next 10 largest spenders combined. It’s four times larger than China’s military budget of $216 billion. It’s almost ten times bigger than Russia’s budget of just $84.5 billion.

Reform the Veteran’s Administration. Give veterans vouchers to use either with the VA or their own doctor. That competition would give the VA an incentive to improve service. The VA would provide transitional benefits, such as business loans, job training, and placement services, to help veterans find jobs. Increase funding for battle-related mental and chronic illness. Add OBGYN and other women’s health services to every VA hospital. Fire corrupt VA executives. Change the culture of the VA to reduce inefficiencies. These programs would work and are sorely needed. The VA budget ($75.1 billion) is only 10% of total military spending. (Source: “Veteran’s Administration Reforms,” DonaldJTrump.com.)

Update medical technology. That’s happening anyway. It’s one of the three largely unknownbenefits of Obamacare.

Reduce the deficit by cutting waste. He would have to cut $500 billion in waste to eliminate thecurrent budget deficit. That’s a 12% cut in the $4.147 trillion budget he will inherit from President Obama. As any business owner knows, a 12% cut is doable but extremely painful.  For more, see 5 Myths About Cutting Government Spending.

Eliminate the Departments Education and the Environmental Protection Administration. That might save $69.4 billion for Education, unless Trump reprogrammed the funds for education block grants for the states, as he mentioned elsewhere. Defunding the EPA would only save $8.3 billion and who would enforce the existing laws?

Keep existing Medicare and Social Security benefits intact. These benefits were created by prior Acts of Congress and cannot be changed by a President. Social Security is self-funded until 2035. Medicare is only 53% self-funded. These two programs cost $1.565 trillion, or 38% of total spending. For more, see Mandatory Budget.

Repeal Obamacare. Allow health insurance companies to operate across states lines. Remove the mandate to buy insurance. Allow tax deduction for health insurance premiums and Health Savings Accounts. Expand Medicaid to all states by making it a block grant program. Allow consumers to purchase drugs overseas. Offer a universal “market-based” plan that would offer a range of choices similar to that offered by the Federal Employees Health Benefits Program. Trump’s plan is what Obama initially proposed, and Congress rejected. For more, see Obama’s Original Health Care Reform Plan. (Source: “Healthcare Reform,” DonaldJTrump.com. “Donald Trump Health Care,” OnTheIssues.org. “Donald Trump Hates Obamacare,” July 31, 2015.)

“Smart Trade, Not Stupid Trade”

Do a better job of negotiating trade and trade agreements. China taxes our exports, but we don’t tax its exports. That’s true to some extent. China requires American companies to set up factories to hire and train local workers before they can sell to its market. The United States could easily do the same thing. See more about China’s economy.

Renegotiate NAFTA and the Trans-Pacific Partnership with smart and cunning people. If Trump re-opens negotiations on NAFTA, the Mexican government would immediately require that the United States allow Mexican trucks on its roads. That was promised in the first NAFTA agreement but withdrawn by Congress. Mexico is in much better economic shape now than when NAFTA was first negotiated. A new agreement would probably be worse for the United States, no matter how smart and cunning Trump’s people are. (Source: “Trump: NAFTA Trade Deal a Disaster ,” AP, September 25, 2015.)

Label China a currency manipulator. Trump claims that China artificially undervalues its currency, the yuan, by 15% to 40%. Part of China’s cost advantage is its cheaper standard of living that allows lower wages. Trump ignores that. He incorrectly rails against the yuan’s fixed exchange rate that’s pegged to the dollar. In 2000, the yuan was undervalued by 30%. But a lot has changed since then. First, former Treasury Secretary Hank Paulson convinced the People’s Bank of China (PBOC) to increase the yuan’s value against the dollar. It increased 2-3% annually between 2000 and 2013. Second, the dollar has strengthened by 25% since 2014, taking the Chinese yuan with it. Now China’s products cost that much more than its Southeast Asian competitors. In August 2015, the PBOC began to carefully let the yuan/dollar exchange rate float in the free market. The yuan immediately plummeted. If the yuan were undervalued, as Trump claims, it would have risen instead. Now, China’s central bank is forced to take extreme steps to keep it propped up. That’s why many economists now think China’s currency is over-valued, not under-valued as Trump claims. For more, see Dollar to Yuan Conversion and History.

Impose countervailing duties on all imports from China. The United States imports $481.9 billion in consumer electronics, clothing, and machinery from China. A lot of those “imports” are from U.S. companies that ship raw materials to China, and ship them back when they are completed. Trump’s tariffs would reduce profits for these American companies and raise prices for American consumers. China might retaliate, raising its tariffs on imports from U.S. companies. For more, see U.S. Trade With China.  (Source: “U.S.-China Trade Reform,” DonaldJTrump.com.)

Hit Mexican imports with a 35% tariff. The United States imports $294.7 billion from Mexico, nearly as much as from China. Trump’s tariffs would raise prices of the manufactured products, fruits, vegetables, coffee, and cotton we import from Mexico. Tariffs would benefit U.S. oil companies by raising prices on imported Mexican oil. By law, President Trump could only raise tariffs by 15 percent for 150 days without Congressional approval. For more, see U.S. Imports by Year by Country. (Source: “Trump’s Trade Policy Is a Big Loser,” USNews, April 19, 2016. “So What Exactly Is Donald Trump’s Economic Policy?” CNN Money.)

Trump advocates a protectionism that does not work in today’s globally integrated economy. Other countries would retaliate, reducing American exports. It would also raise prices for American consumers. One reason for slow U.S. growth since the recession is that international trade hasn’t rebounded. Tariffs and a trade war would only worsen that.

“Be the Greatest Job-Producing President in U.S. History”

Trump would have to create at least 21.5 million jobs to take that title. That’s how many jobs President Clinton created in his eight years in office. That was a 19.6% increase. Trump would have to create at least 29.3 million jobs to beat that record. For more, see Job Creation by President.

Create jobs by eliminating outsourcing and bringing jobs back from Japan, China, and Mexico. Trump correctly identifies the problem. The U.S. lost 34% of its manufacturing jobs between 1998 and 2010. Many were outsourced by U.S. companies to save money. Others were eliminated by new technology, including robotics, artificial intelligence, and bio-engineering. Government-sponsored training for these specialties might create more jobs for U.S. workers than Trump’s trade war.  For more, see 3 Ways to Fix IT Outsourcing.

The National Association of Manufacturers recommends lowering U.S. manufacturing costs, which are 20% higher than other countries. First, reduce regulations that cost $180 billion a year. Second, lower the corporate tax rate (which Trump wants to do.) Third, expand (not end) free trade agreements.

Keep the U.S. minimum wage where it is so U.S. companies can compete. The dollar rose 25% since 2014. That automatically makes U.S. workers 25% more expensive than those in India, Mexico, and other countries whose currencies have fallen. Since China’s currency is fixed to the dollar, its labor costs have also gone up 25%. Although this situation is temporary, it is still a bigger drag on U.S. competitiveness than raising the minimum wage. The U.S. minimum wage is $7.25 an hour, although many states with higher cost-of-living have mandated a higher wage. Ireland, the UK, Australia, and six European Union countries have a higher minimum wage than the United States. For more, see Minimum Wage Pros and Cons.

The U.S. jobs report is not a real number. The true unemployment rate is 18%, not 5%. The real unemployment rate includes those who are marginally attached or discouraged and part-time workers who would prefer full-time jobs. As of February 2016, that rate was 9.9%, not the widely-reported 4.9%. The worst real unemployment rate was 16.7% in January 2010, compared to 9.8% for the widely-reported rate. The real unemployment rate is typically double the widely-reported current unemployment rate.

“Reduce the Debt by Growing the Economy 6%”

Grow the economy by 6% annually to increase tax revenues. That’s too fast for healthy economic growth. It would create inflation, a boom-bust cycle, and then a crash. For more, seeWhat Is the Ideal Growth Rate?

Reduce the debt by eliminating waste and redundancy in federal spending. He uses this in his campaign by using Twitter instead of expensive PR campaign. His emphasis on finding ways to contain the costs is one of his strategies outlined in his book The Art of the Deal. (Source: “Donald Trump’s Campaign Blueprint: His Own Book,” WSJ, Monica Langley, March 2, 2016.)

Borrow knowing that if the economy crashed, you could make a deal. U.S. will never default because you can print the money. These are the most alarming statements Trump has made. The first one is blatantly untrue. If the economy collapsed, there would be no one to make a deal with. It would send the dollar into a collapse. That would send the entire world into anotherGreat Depression. The second comment would send the dollar back into decline. Interest rates would rise as creditors lost faith in U.S. Treasuries. That would create a recession.(Source: “U.S. Will Never Default Because You Print the Money,” CNN, May 10, 2016. “Donald Trump’s Economic Plans Would Destroy the Economy,” The Atlantic, May 8, 2016.)

Perhaps former Vice-Presidential candidate Sarah Palin, who endorsed him in January 2016, would be a good running mate. She achieved a balanced budget while Governor of Alaska.

“Send Illegal Immigrants Back”

Erect a wall on the Mexican border, and force Mexico to pay for it. Open a door for legal immigrants.  As Mexico’s economy improves, it’s begun gaining immigrants itself. Since 2000, more Americans have immigrated to Mexico than the reverse. For more, see Mexico’s Economy. (Source: “If Donald Trump Was President, Here’s What Would Happen to the U.S. Economy,” The Street, March 3, 2016.)

Compare Trump’s Plan to Hillary Clinton’s Economic Plan

Lonnie G. Bunch III, Founding Director of the NMAAHC


Take a tour of the Museum!
TAKE A TOUR OF THE MUSEUM!

Next week we will be celebrating six months of the National Museum of African American History and Culture being open and over 1,000,000 visitors have already come through our doors! If you’ve already visited the Museum, then you understand the groundbreaking significance of this remarkable institution that you helped to build. If you have not had a chance to visit, join as a Charter Member now to receive a downloadable map of the Museum experience.

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The journey through the Museum's 11 interactive galleries mirrors the upward progress of African Americans in our country
starting 70 feet below ground on the building's lower level exploring slavery and the Jim Crow era
moving upward to African Americans' historic achievements in science, music, sports, military service, and other fields ... and ascending to modern-day challenges and triumphs.
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In case you haven’t yet visited the Museum, there is a special map available if you join as a Charter Member today. It depicts visitors’ progression through Museum’s galleries and highlights some of thousands of objects featured in our exhibitions — from an old slave cabin and Harriett Tubman’s shawl, to Chuck Berry’s Cadillac and a robe worn by Muhammad Ali.

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dd-sustainerlanding-2014-lonnie-bunch.jpg All the best,
DD YE year end 1 signature
Lonnie G. Bunch III
Founding Director

Photographs by Benjamin G. Sullivan for the NMAAHC