Democrats Add Tax Cuts To Affordability Agenda

0:00It's Wednesday, March 25th, I'm Jane Kostin, and this is what a day. I'll show that just once President Donald Trump to tell us whatever he told Secretary of War slash little boy Pete Higgs F. Here's Higgs F on Tuesday. This is not a rack in Afghanistan. This is not a president who's interested in vague and states. He's been very clear with us about what we need to accomplish. If he's been very clear with you about the war in Iran, could he be clear with us? On today's show, new polling shows Trump's approval rating is on the decline. Shocking. And the Wall Street Journal's March Madness bracket is AI Amazing. But let's start with taxes, one of the two certainties in life. A new report published by Fortune Magazine on Tuesday found that Americans paid more

1:00than $140 billion in out-of-pocket expenses and spend more than 11 billion hours just to fill out their individual tax returns. And that's before they actually, you know, pay their taxes. In 2022, for example, Americans paid more than $2 trillion in individual income taxes. That's a ton of money. And at a time when, according to the Guardian, nearly half of Americans think their financial security is getting worse, not better. And the richest people in America often pay remarkably little in income taxes. Some after decades of Republicans using the opportunity to promote lower taxes to voters, Democrats are getting in on the action and talking lower taxes themselves. New Jersey Senator Cory Booker and Maryland Senator Chris Van Hollen have put together separate measures aimed at using the tax burden on middle and lower income people. Here's Senator Booker discussing his legislation. So here's the big idea I want to share with you. No household in America should pay federal income tax on their first $75,000 of earnings. Keep your money.

2:00But here's my issue with this. It sounds incredibly basic to say, but taxes pay for public goods, as in goods that everyone gets to enjoy, from parks to roads to schools. I had a lot of questions about how taxing rich people to lower taxes on less rich people ensures we have the money we need for the buses, trains, public pools, and traffic lights we all rely on. So I spoke with Maryland Democratic Senator Chris Van Hollen about his plan. Senator Van Hollen, welcome back to what a day. Jane, great to be with you. You introduced a bill this month that would eliminate federal income taxes for people making less than $46,000 a year and lower taxes for anyone making less than about $80,000 per year. It would also gradually raise taxes on Americans who earn more than a million dollars annually. What else should people know about this proposal? Well, it's good to be with you. The key idea behind this proposal is we have millions of Americans who are working hard every day just to make ends meet. And we decided as part of this bill that if you're just at the cost of living expenses,

3:03in other words, if your income is essentially matching your basic cost of living expenses, then you should be able to keep more of what you earn. So you're right. Single individual who makes $46,000 a year, they would pay no federal income tax. And then we adjusted for households and couples and it's paid for as you indicate by a surtax on people who make more than $1 million a year. So that the first dollar over a million dollars would have a five cent surtax and then it's graduated from there. So it completely pays for itself. It gives working people a little bit more breathing room and it says to folks who are doing very well, making over a million dollars a year that they should chip in more so that all of us can do better. Now I have a bunch of questions about this and I'm sure you've gotten a ton of questions about this. First and foremost, Democrats are obviously not in control of Congress or the White House right now. So why did you decide to introduce this bill now? Well, because I think it speaks to the concerns Americans are feeling.

4:05I mean, we've seen in many of these recent elections at the state and local level that affordability is top of mind for Americans. And there's two sides to the affordability coin, right? One is we should try to contain costs, electricity prices are going up, grocery prices are going up and we should do what we can to prevent those costs from going up further. But the other side of the coin is how much money you have in your pocket to pay for your basic living expenses and that's where this bill comes in. It says if you're in that category of people who's essentially going paycheck to paycheck, meeting your basic expenses, that you'll be able to have a little bit more money in your pocket. So it benefits about 130 million Americans and again, it's financed by this surtax on people who make over a million a year. Ben Ritz from the Progressive Policy Institute think tank, he criticized your bill in the Atlantic and he said, quote, if the entire universe of plausible tax hikes on the top two percent

5:06is spent cutting taxes for the other 98 percent, no money will be left to pursue other goals. What's your response to that argument that taxing the rich should not just be used as a way to fund tax cuts for everybody else? Well, I disagree with this premise, which is there is additional revenue that we can achieve. For example, by the wealth tax, I mean, I support Senator Sanders proposal for a wealth tax and Senator Sanders supports this proposal that we're talking about right now to provide middle income workers with tax relief. So it's not either or we can provide working Americans with a little tax relief and provide revenue for these other priorities as well. Is that also how you're thinking about addressing funding issues for social security and Medicare? Ben Ritz as well as Eric Levitts and Vox, both of them point out that unless significant revenue is raised, social security and Medicare will face budget shortfalls within the next decade. Is the wealth tax something that you and Senator Sanders are talking about? Is that how we solve that problem?

6:07Yes, I think it is. I mean, there are a number of wealth tax proposals. Senator Sanders has one, Senator Warren has one, Senator Wyden has one. I support them all because I support the concept. As we have it today, as you know, people can pass on large fortunes from one generation to another, tax-free because of what we call stepped up basis at death. And it's really leading us to more and more of an American aristocracy. So I do believe, Jane, that is a source of funds to address some of these other issues. So for example, in Senator Sanders' wealth tax bill, he also covers a gap in Medicare to provide coverage for dental services, for seeing for glasses, as well as for hearing. While you're here, I have to ask about the Department of Homeland Security. Senators from both parties are starting to sound more optimistic this week about the prospect of a deal to fund most of DHS. Do you expect Republicans to eventually agree to some of the restrictions on ICE officers

7:11that Democrats have called for? Well, I think all of this is premature. I know Republicans have been making positive soundings about this. In my view, there are still really important gaps between Republicans, what they say they'll support, and what I think we need to do. Just one example. In my view, we need to ensure that we have credible independent investigations when we have wrongdoing by DHS officials. After all, we saw two American citizens killed in Minneapolis, and the Homeland Security Department, the former secretary, said that the victims were domestic terrorists, and yet they refused to share that information with state and local authorities, and so it's outrageous they accused the victims of being domestic terrorists, and so I ask, how can we expect DHS to conduct a credible independent investigation? In my view, we can't, and that's not dealt with.

8:11In my view, Jane is for now. We should support what Democrats have been calling for for weeks now, which is let's just fund TSA, get those agents paid, make sure people are at the airports and getting paid. Let's fund the Coast Guard, let's fund FEMA, and then we can continue to discuss meaningful reforms to ICE and customs and border patrol. I thought it was very telling Senator that the White House proposal included a line saying we won't deport U.S. citizens, which is a funny thing for someone to need to say that, oh no, we won't do the thing that is actually illegal for you to be doing. But to that point, Mark Wayne Mullen was confirmed to lead DHS this week in a mostly party line vote. You told Fox News this weekend that you have, quote, no confidence and his ability to do this job. Do you expect DHS to look any different under Mullen than it did under Christina? Other than a different face, I don't see any differences. I mean, they're going to continue to follow the Trump policies, which will remain the

9:15same despite some changes in rhetoric. You probably saw the White House sent, you know, Hill Republicans, some memo saying, don't talk about mass deportations, you know, the American people don't like mass deportations. They didn't say they were going to end mass deportations. They just don't talk about it. Yeah. And so, you know, they've said from the beginning they were going to go after the so-called worst of the worst. We know that they're focused not just on the worst to the worst. They're engaged in these mass deportations. And to your point about simply saying they're going to do what's already required, I mean, I saw Mullen saying, you know, we're going to agree that you need a search warrant before you go into someone's house. That's what the Constitution says, right? This is the fourth amendment. This is playing constitutional law. So, you know, when they say, well, you know, we're going to finally agree to obey the law. We're not going to deport American citizens, we're not going to bash down your door without a warrant. It's like, that is not enough. We want to really fundamentally and meaningfully reign in ice.

10:17Right. It, again, if you're saying we're finally going to obey the bill of rights, I feel like that says more than you're intending to say, lastly, I have to ask you about Iran. It's being reported that the Trump administration is planning to send 3,000 more troops to the Middle East. It would not be boots on the ground, and I'm using air quotes. But what are your biggest concerns about the war in Iran at the moment? Well, my biggest concern is that it's making America less safe. It's making the region less stable. I mean, the region is on fire now. And the administration entered this war without a clear explanation as to why constantly shifting explanations, right? At one point, it was to get rid of Iran's nuclear program. And Tulsi Gabbard admits in public testimony that they assessed that Iran was nowhere near a nuclear weapon. Then Donald Trump changes a story again. They have no end game. We have lost 13 American service members, hundreds wounded, over 2,000 civilians killed

11:22in the region, including over 100 Iranian schoolgirls. Because we're talking about $2 billion a day in American taxpayer money, plus rising in oil and gas prices. This was a huge miscalculation. It's a war of choice. It's an illegal war, and we should end it now. Senator Van Holland, as always, thank you so much for joining me. It's great to be with you. Thanks, Jane. That was my conversation with Maryland's Democratic Senator, Chris Van Holland. Some like death and taxes, listening to what a day is actually pretty enjoyable. So if you like the show, make sure to subscribe, leave a five star review on Spotify and podcasts, watch us on YouTube, and share with your friends, more to come after some ads. What a day is brought to you by Factor. It's finally getting hot again, and cooking is looking less enjoyable. But there's no excuse not to get the protein and nutrients you need to reach your goals.

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14:26Hey, lover, leave it listeners. It's me, the titular John Love It. Here to tell you that I'm coming back to Washington, DC for Love It or Leave It Live at the Lincoln Theater on April 23rd. That's right. Spring in DC is all about cherry blossoms, and Love It or Leave It bringing you a stack lineup of guests. That's what makes it America's number one late-night gay live comedy political podcast. We're so excited to be back in DC. It's a tradition now that we come around the time of the car response, and even though the car response center really no longer has comedians, I believe there's going to be some kind of a magician or a mind-milder. Yes, a magician. Yeah. I'm a mentalist. A mentalist, because I guess Trump wouldn't know. And Trump's also going. Yeah. Yeah. That's right there. Yeah. There's a mental case, and then Trump is also going. That's right. Tickets won't last long. They're selling pretty fast. So get yours now while you still can. Crooked.com slash events. Very excited for the DC show. Got some big guests. I'm pretty exciting, maybe. Crooked.com slash events. This is Bired Winthrop, founder of American Giant.

15:28I started this company because I was fed up with cheap clothes that didn't last, and companies that shipped manufacturing overseas. We believed we could still make incredible clothing right here in the U.S. with American cotton and American workers earning real wages. That's what we stand for. Making clothes that actually last. Get 20% off your first order when you use code giant20 at American-giant.com. Here's what else we're following today. Headlines. I am once again joined by Crooked's Washington correspondent, Matt Berk, to talk about the big stories. Hey, Matt. Hey, Jay. Matt, do you remember how we were wondering? Actually, I wasn't wondering. But some people were wondering whether or not we were at war with Iran a few weeks ago. Yeah. And that feels like years ago, honestly. Weird, because it's been like three weeks. But now we have a new problem. The world is still trying to figure out whether the U.S. is actually in talks with Iran

16:29to end the war that is a war. Here's what President Donald Trump had to say on Tuesday. They're going to make a deal. They're going to make a deal. They did something yesterday that was amazing, actually. They gave us a present. And the president arrived today. There was a very big present worth a tremendous amount of money. And I'm not going to tell you what that present is, but it was a very significant prize. I'm just going to say it. Whatever it is. Don't open it. I've seen movies. Don't open it. But this present, Matt, isn't the only thing Trump's being vague about. Actually, he's being vague about the whole thing. He keeps saying, for example, the U.S. is in talks with Iran. But there's still no clear indication of what he's talking about or what the talks would be doing. Right. And despite all this vagueness from Trump, he keeps saying that things are just going great. On Tuesday, he spoke about Iran's military capabilities, telling a reporter, quote, can you name one thing that's not gone? Let's contrast that with what the administration is actually doing.

17:30There's news on Tuesday that the Pentagon reportedly plans to deploy 3,000 more troops in the Army's elite 82nd Airborne Division to support war efforts. And none of that sounds quite like peace to me. No, none of this sounds like peace. It definitely sounds like war. And at the same time, Americans are not happy at home. They are extremely pessimistic about the job market according to new polling from Gallup that was taken at the end of 2025. According to Gallup, only 28% of people said it's a good time to look for a new job versus 72% who said it's rough out there. In 2022, 70% of people said it was a good time to look for a job. Remember, 2022, when people were quiet quitting and it felt like employers needed to do everything possible to keep their employees? Yeah, that was four years ago. Believe it or not, it has been a very long four years. There's other polling out today from Reuters and Ipsos, showing that only 29% of the country, approves of how Trump is handling the economy. That's the lowest number in either of his terms, which is pretty shocking.

18:34A more important number, maybe to Trump, is that that is lower than any point in Joe Biden's presidency, which I'm sure he's still going to find a way to blame Joe Biden for the economy, but the numbers here don't lie. And Reuters also reports that Trump's overall approval rating is dropping now at 36%. So I mean, you could say that things are looking great for him. It's also funny because we heard throughout 2024 that the reason people were voting for Trump was because of the economy and that somehow we could magically bring us back to the economy of 2019, which I don't remember being that great, but I guess people do. And that's not happening. But what is happening is basketball. We're in the thick of March madness and robots are playing this year, sort of. They are not playing college basketball, which is good. But they are taking part in the Wall Street Journal's bracket tournament. According to the outlet, reporters trained Claude Gemini in chat GPT on how to find the best way to win a March madness pool, and then secretly entered them into the bracket. Claude is currently in the lead, despite picking Illinois to win a national championship,

19:37and that one of the number one seeds like Michigan, for example, just picking one out of a hat. Interestingly, all of the large language models, which include Claude Gemini in chat GPT, were initially confused by the concept of a bracket. But actually, I'm fine with the fact that they couldn't figure this out. The more stuff AI figures out, the more scared I get. I feel these act the same way. I mean, now AI is coming for things that are actually just fun for humans to do, like the community building aspect. I love that March madness, and now AI is going to be involved. And I personally do not want robots involved in my community activities. But I mean, this just goes a show, like you said. That AI is involved in not just writing and editing resumes and coding, but now it's getting good at betting, which could bring up a lot of other problems. I mean, we're seeing all this news about prediction markets in the different problems caused there, and could people use AI to make good bets in prediction markets? Like, is that being regulated?

20:39How is Congress going to regulate this? It's also interesting, because AI models are good at probability and they're good at understanding metrics. After getting past their initial confusion, the models are now doing better than most humans in the Wall Street Journal bracket. They all avoided picking Florida, the number one seed that lost this past weekend. So, to our viewers who are you rooting for in March madness, you already know who I'm rooting for in March madness, because come on, you watch the show. But Matt, I'm always rooting for you. Thanks for having me, and please do not replace me with the claw to anytime soon. And we have an update to a story we brought you yesterday. In a landmark decision on Tuesday, a New Mexico jury found that social media conglomerate meta harmed children's mental health and violation of the state's consumer protection law. Jones found that there were thousands of violations, mandating meta to pay a $375 million penalty. A spokesperson for meta said in a statement quote, we respectfully disagree with the verdict and will appeal. And that's the news.

21:45Before we go, this week on Podsave the World, Tommy Vittor and Ben Rhodes break down the latest on Iran and Lebanon as the fallout from this escalating conflict keeps spreading across the region and into global politics. They'll also dig into the latest EU election shakeups and what they mean for the future of the West. Plus, they sit down with Edward Fishman from the Council on Foreign Relations to talk through the long-term economic consequences of the Iran crisis. If you want a clear-eyed breakdown of what's happening and what it means down the line, listen to Podsave the World wherever you get your podcasts. That's all for today. If you like the show, make sure you subscribe, leave a review, congratulate Egyptian, clean hot chef sit on getting some worthy reconsideration from the historical record and tell your friends to listen. And if you're into reading, I'm not just about how the ancient queen was positioned by 19th century historians as an evil usurper. But new research shows she was a diplomatic super power who led an era of prosperity during the 15th century BC. Like me, what today is also a nightly newsletter. Check it out and subscribe at crooked.com slash subscribe.

22:45I'm Jane Kostin and a woman being miscast by male historians? Ground breaking. What today is a production of crooked media. It's recorded and mixed by Desmond Taylor. Our associate producer is Emily Ford. Our producer is Caitlin Plummer. Our video editor is Joseph Dutra. Our video producer is Johanna Case. We have production help today from Greg Walters, Matt Berg, and Ethan Oberman. Our senior producer is Eric Morrison and our senior vice president of News and Politics is Adrian Hill. Our theme music is by Kyle Murdock and Jordan Cantor. We have helped today from the Associated Press. Our production staff is proudly unionized with the writer's guild of America East. Hey, love it or leave it listeners. It's me, the titular john love it. Here to tell you that I'm coming back to Washington DC for Love it or leave it live.

23:47It'll link in theater on April 23rd. That's right. Spring and DC is all about cherry blossoms and Love it or leave it bringing you a stack lineup of guests. That's what makes it America's number one late night gay live comedy political podcast. We're so excited to be back DC. It's a tradition now that we come around the time of the car response and or even though the car response center really no longer has comedians. Probably there's going to be some kind of a magician or a mind, mind melder. Yes, a magician. Yeah, I'm a mentalist. A mentalist, because I guess Trump wouldn't go. It's also going. Yeah, yeah, that's it. Yeah, there's a mental case and then and Trump is also going. That's right. That's tickets won't last long. They're selling pretty fast. So get yours now while you still can at crooked.com slash events. Very excited for the DC show. Got some big guests. Pretty exciting maybes. Crooked.com slash events.