Obama Faces Widespread Public Distrust on Iran Deal
President Obama will try to drum up support for the U.S.-Iran nuclear deal Wednesday afternoon at a news conference. But with widespread public disdain and distrust of Iran, Obama may have trouble convincing Americans of the wisdom of dealing with a long-time arch enemy in the Middle East.
The U.S. and Iran on Tuesday announced an agreement that would potentially block Iran’s development of a nuclear weapon for at least a decade while lifting international economic sanctions against Tehran. However, a new AP-GfK poll that was conducted just ahead of the announcement found that Americans only narrowly back diplomatic relations with the hardline Islamic government, and many want to see the sanctions kept in place.
Related: The 8 Most Important Things to Know About the Iran Nuclear Deal
Just 51 percent of those interviewed said the U.S. should have diplomatic relations with Iran while 45 percent said it shouldn’t. At the same time, 77 percent of those interviewed said the harsh U.S. and international economic sanctions against Iran should be preserved at current levels or even increased.
Only 12 percent of those interviewed thought sanctions should be decreased and seven percent said they should be eliminated altogether.
The public’s wariness and distrust of dating back to the 1979 Iranian revolution and U.S. hostage crisis matches the reception the nuclear agreement has received on Capitol Hill where most Republicans and some Democrats say they fear Obama has conceded too much to a country that has fomented terrorist activities throughout the Middle East and has repeatedly vowed to destroy Israel.
Fifty-six percent of Americans consider Iran to be an enemy, according to the poll conducted last Thursday through Monday, while an additional 31 percent consider Iran to be unfriendly but not an enemy. More than 70 percent of Republicans, half of all independents and 45 percent of Democrats described Iran as the enemy.
Related: Clinton Cautious in Her Praise of a Nuclear Deal She Helped to Orchestrate
Before the agreement was announced, six in ten Americans said they disapproved of Obama's handling of the U.S. relationship with Iran, while just over a third approved.
Obama is likely to prevail in pushing the nuclear non-proliferation agreement through Congress over the next two months, despite near-unanimous opposition from Senate Majority Leader Mitch McConnell, House Speaker John Boehner and other leaders and rank and file Republicans. Still, he will need to hold in place at least 34 of the 46 Democrats in the Senate to create a veto-proof firewall in the event Republicans push through a resolution of disapproval of the nuclear deal.
That means that Obama cannot afford any more than 12 Democratic defections to keep the agreement alive. Yesterday, Obama and Vice President Joe Biden began working the phones to shore up support on Capitol Hill, and the president will continue that effort during this afternoon’s White House press conference.
During an interview yesterday with Tom Friedman of The New York Times, Obama stressed that the deal prevented a pathway for Iran to develop a nuclear weapon while making it clear he shared Americans’ distrust of the Iranian government and had limited expectations of improved relations down the road.
Related: Iran Agrees to Limit Nuclear Weapon in Historic Deal
When announcing the deal yesterday, Obama said, “This deal is not built on trust -- it's built on verification…. We will, for the first time, be in a position to verify that Iran is meeting all of these commitments. International nuclear inspectors will have access to Iran's nuclear program -- where necessary, when necessary. This is the most comprehensive and intrusive verification regime that we have ever negotiated. If Iran tries to divert raw materials to covert facilities, inspectors will be able to access any suspicious locations.”
Tweet of the Day: The Black Hole of Big Pharma
Billionaire John D. Arnold, a former energy trader and hedge fund manager turned philanthropist with a focus on health care, says Big Pharma appears to have a powerful hold on members of Congress.
Arnold pointed out that PhRMA, the main pharmaceutical industry lobbying group, had revenues of $459 million in 2018, and that total lobbying on behalf of the sector probably came to about $1 billion last year. “I guess $1 bil each year is an intractable force in our political system,” he concluded.
Warren’s Taxes Could Add Up to More Than 100%
The Wall Street Journal’s Richard Rubin says Elizabeth Warren’s proposed taxes could claim more than 100% of income for some wealthy investors. Here’s an example Rubin discussed Friday:
“Consider a billionaire with a $1,000 investment who earns a 6% return, or $60, received as a capital gain, dividend or interest. If all of Ms. Warren’s taxes are implemented, he could owe 58.2% of that, or $35 in federal tax. Plus, his entire investment would incur a 6% wealth tax, i.e., at least $60. The result: taxes as high as $95 on income of $60 for a combined tax rate of 158%.”
In Rubin’s back-of-the-envelope analysis, an investor worth $2 billion would need to achieve a return of more than 10% in order to see any net gain after taxes. Rubin notes that actual tax bills would likely vary considerably depending on things like location, rates of return, and as-yet-undefined policy details. But tax rates exceeding 100% would not be unusual, especially for billionaires.
Biden Proposes $1.3 Trillion Infrastructure Plan
Joe Biden on Thursday put out a $1.3 trillion infrastructure proposal. The 10-year “Plan to Invest in Middle Class Competitiveness” calls for investments to revitalize the nation’s roads, highways and bridges, speed the adoption of electric vehicles, launch a “second great railroad revolution” and make U.S. airports the best in the world.
“The infrastructure plan Joe Biden released Thursday morning is heavy on high-speed rail, transit, biking and other items that Barack Obama championed during his presidency — along with a complete lack of specifics on how he plans to pay for it all,” Politico’s Tanya Snyder wrote. Biden’s campaign site says that every cent of the $1.3 trillion would be paid for by reversing the 2017 corporate tax cuts, closing tax loopholes, cracking down on tax evasion and ending fossil-fuel subsidies.
Read more about Biden’s plan at Politico.
Number of the Day: 18 Million
There were 18 million military veterans in the United States in 2018, according to the Census Bureau. That figure includes 485,000 World War II vets, 1.3 million who served in the Korean War, 6.4 million from the Vietnam War era, 3.8 million from the first Gulf War and another 3.8 million since 9/11. We join with the rest of the country today in thanking them for their service.
Chart of the Day: Dem Candidates Face Their Own Tax Plans
Democratic presidential candidates are proposing a variety of new taxes to pay for their preferred social programs. Bloomberg’s Laura Davison and Misyrlena Egkolfopoulou took a look at how the top four candidates would fare under their own tax proposals.
