Good News!: If Top Tax Rates Return To Reagan Era, Bill O’Reilly Might Quit
Fox News’ Bill O’Reilly boasted the other day that he enjoys “more power than anybody other than the president.”
Apparently, though, this rather extraordinary degree of influence over national affairs isn’t quite enough for the conservative media personality. In fact, O’Reilly is so concerned about his potential tax burden under the “Buffett Rule,” he told his television audience last night he might just quit working altogether.
“I must tell you I want the feds to get more revenue. I don’t want to starve them as some people do. We need a robust military, a good transportation system and protections all over the place.
“But if you tax achievement, some of the achievers are going to pack it in. Again, let’s take me. My corporations employ scores of people. They depend on me to do what I do so they can make a nice salary. If Barack Obama begins taxing me more than 50 percent, which is very possible, I don’t know how much longer I’m going to do this. I like my job but there comes a point when taxation becomes oppressive. Is the country really entitled to half a person’s income?”
In case anyone’s interested in the relevant details, let’s clarify a few things.
First, we don’t know if President Obama is eyeing a top rate of 50%, and even if he did, the likelihood of congressional passage would be roughly zero.
Second, a top rate of 50% does not mean O’Reilly would lose “half” his income. I know this can seem a little complicated, but that’s just not how marginal tax rates work.
And third, a 50% top rate for millionaires and billionaires would be a departure from the recent past, but to describe it as “oppressive” is to forget much of the 20th century.
In Ronald Reagan’s first term, for example, the top rate was — you guessed it — 50%. Did Reagan’s “oppressive” tax rates prevent robust economic growth? Did “the achievers” decide to “pack it in”? No and no.
For nearly all of Dwight Eisenhower’s presidency, the top rate was 91%. That’s not a typo. Did this Republican president’s “oppressive” tax policy prevent the U.S. economy from growing in the 1950s? Apparently not.
That said, if O’Reilly is contemplating retirement to avoid helping America pay its bills, I’m not inclined to discourage him.
By: Steve Benen, Contributing Writer, Washington Monthly Political Animal, September 20, 2011
Coddled Long Enough: The “Buffett Rule” Vs “Class Warfare”
Over the weekend, the White House leaked word that President Obama will push a new debt-reduction idea: the “Buffett Rule.” Named after Warren Buffett, the chairman and chief executive of Berkshire Hathaway, who’s been urging policymakers to raise taxes on the very wealthy. As Buffett recently explained, millionaires and billionaires “have been coddled long enough.”
We don’t yet know the details of the proposal — most notably, what the new millionaires’ minimum tax rate would be — but Republicans are already responding with predictable disgust.
Here, for example, was House Budget Committee Chairman Paul Ryan (R-Wis.) yesterday on Fox News, making the case for coddling millionaires and billionaires for a while longer. See if you can pick up on the subtlety of his talking points.
“Class warfare, Chris, may make for really good politics but it makes a rotten economics. We don’t need a system that seeks to divide people. […]
“[I]t looks like the president wants to move down the class warfare path. Class warfare will simply divide this country more. It will attack job creators, divide people and it doesn’t grow the economy. […]
“[I]f we are just going to do class warfare and trying to get tax increases out of this, and I don’t think much will come of it…. He’s in a political class warfare mode and campaign mode.”
So, I guess I’ll put him down as a “maybe” on the Buffett Rule?
By any reasonable measure, Ryan’s arguments aren’t just wrong, they’re borderline offensive.
For a generation, Republican policymakers have rigged national tax policy to reward the wealthy, and then reward them some more. We’ve seen the class gap reach Gilded Era levels, only to hear GOP officials again demand that working families “sacrifice” while lavishing more breaks on the very wealthy.
Remind me, who’s engaged in “class warfare” and “dividing people”?
Also note the larger policy context here. President Obama wants the richest of the rich to pay a little more, but keep tax breaks in place for the middle class. Paul Ryan and his cohorts want the polar opposite — more breaks for the very wealthy and higher taxes for the middle class.
Let’s also not forget that one of the GOP’s more common tax-policy arguments is that nearly half the country doesn’t have any federal income tax burden — and they see that as a problem that needs fixing. As a practical matter, the Republican argument on this is practically the definition of “class warfare.”
I realize much of the political establishment has come to look at Paul Ryan as a wise wonk who deserves to be taken seriously, but it really doesn’t take much to realize how spectacularly wrong the far-right Wisconsinite really is.
By: Steve Benen, Washington Monthly Political Animal, September 19, 2011
The Candidates Weren’t The Only Ones On Display In Tampa
The point of presidential candidate debates is to offer the public a chance to scrutinize and evaluate those seeking national office. Occasionally, though, voters get the chance to scrutinize and evaluate those in the audience, which is nearly as interesting.
The candidates seeking the Republican presidential nomination are a pretty scary bunch — remember, one of them stands a reasonably good chance of becoming the leader of the free world in about 17 months — and the two-hour display on CNN last night was a depressing reminder of what’s become of the GOP in the 21st century. That said, maybe it’s just me, but I’m starting to find the audiences for these debates even more disconcerting.
Wolf Blitzer posed a hypothetical scenario to Ron Paul, asking about a young man who makes a good living, but decides to forgo health insurance. Then, tragedy strikes and he needs care. Paul stuck to the libertarian line. “But congressman,” the moderator said, “are you saying that society should just let him die?”
And at that point, some in the audience shouted, “Yeah,” and applauded.
Earlier in the debate, Blitzer asked Rick Perry about his attacks on Federal Reserve Chairman Ben Bernanke. “I said that, if you are allowing the Federal Reserve to be used for political purposes, that it would be almost treasonous,” Perry said. “I think that is a very clear statement of fact.”
The audience loved this, too.
What’s more, note that in last week’s debate, the mere observation that Perry has signed off on the executions of 234 people in Texas, more than any other governor in modern times, was enough to generate applause from a different GOP audience.
Taken together, over the last five days, we’ve learned that the way to impress Republican voters, at least the ones who show up for events like these, is to support letting the uninsured die, accusing the Fed of treason for trying to improve the economy, and executing lots of people.
There’s a deep strain of madness running through Republican politics in 2011, and it appears to be getting worse. Those wondering why the GOP presidential field appears weak, insipid, and shallow need look no further than the voters they choose to pander to.
By: Steve Benen, Contributing Writer, Washington Monthly Political Animal, September 13, 2011
Fact Checking The CNN And Tea Party Express Debate In Tampa
The Republican presidential debate in Tampa, Fla., co-hosted by CNN and the Tea Party Express, was feisty and provocative, with many of the candidates relying once again on bogus “facts” that we have previously identified as faulty or misleading.
The debate marked a remarkable shift in tone by Texas Gov. Rick Perry on the issue of Social Security, barely five days after he labeled the venerable old-age program “a Ponzi scheme” doomed to fail. This week, he said it was a “slam dunk guaranteed” for people already on it.
Last week, we explained why the Ponzi scheme label was not true — and also provided readers with a primer on Social Security for those who want to learn more. In Monday night’s debate, Perry and former Mass. Gov. Mitt Romney tangled over the issue again, and Romney had better command of the facts, as far as the two men’s books were concerned.
“The real issue is that in writing his book Governor Perry pointed out that, in his view, that Social Security is unconstitutional, that this is not something the federal government ought to be involved in, that instead it should be given back to the states … . Governor Perry, you’ve got to quote me correctly. You said ‘it’s criminal.’ What I said was Congress taking money out of the Social Security Trust Fund is like criminal, and that is, and it’s wrong.”
— Mitt Romney
Romney gets points for correctly quoting both Perry’s book, “Fed Up,” and his own book, “No Apology.” On page 58, Perry labels Social Security, Medicare, Medicaid and even unemployment insurance as “unnecessary, unconstitutional programs.” While promoting his book last year on MSNBC’s “Morning Joe,” Perry went further, suggesting Social Security should be dismantled and simply become a state responsibility.
“Get it back to the states. Why is the federal government even in the pension program or the health-care delivery program?” Perry said on Nov. 5, 2010. He said that ending the federal government’s role in Social Security would be “one of the ways this federal government can get out of our business.”
(Perry also added: “I wouldn’t have written that book if I wanted to run for presidency of the United States. … I have no interest in going to Washington.”)
Romney’s book, by contrast, contains mostly a sober description of various ways to fix the long-term funding problems of Social Security, with the exception of the suggestion that members of Congress are doing something criminal with Social Security funding (page 158). People can differ, but we think comparing Social Security (a government retirement and disability insurance program) to a trust fund managed by a bank is an inappropriate analogy.
“We know that President Obama stole over $500 billion out of Medicare to switch it over to Obamacare.”
— Rep. Michele Bachmann (Minn.)
“He cut Medicare by $500 billion. This, the Democrat president, the liberal, so to speak, cut Medicare — not Republicans, the Democrat.”
— Romney
Bachmann in particular loves to make this claim, but we have repeatedly explained why it just isn’t correct.
Under Obama’s health-care law, Medicare spending continues to go up year after year. The law tries to identify ways to save money, and so the $500 billion figure comes from the difference over 10 years between anticipated Medicare spending (what is known as “the baseline”) and the changes the law makes to reduce spending.
The savings actually are wrung from health-care providers, not Medicare beneficiaries. These spending reductions presumably would be a good thing, since virtually everyone agrees that Medicare spending is out of control.
In fact, in the House Republican budget this year, lawmakers repealed the Obama health-care law but retained all but $10 billion of the nearly $500 billion in Medicare savings, suggesting the actual policies enacted to achieve these spending reductions were not that objectionable to GOP lawmakers. So it is misleading for Romney to say that Republicans did not make these cuts.
For a more detailed explanation, please see our longer examination of this subject in June, when we gave Bachmann two Pinocchios for making this claim at the first GOP debate.
“Let me say I helped balance the budget for four straight years, so this is not a theory”
— Former House Speaker Newt Gingrich (Ga.)
Gingrich at least indicates there was a president — Bill Clinton — when the nation briefly began to run budget surpluses. And certainly the Republican Congress led by Gingrich prodded Clinton to move to the right and embrace such conservative notions as a balanced budget.
But the budget was balanced in part because of a gusher of tax revenues from Clinton’s 1993 deficit-reduction package, which raised taxes on the wealthy and which Gingrich vehemently opposed. The budget was also balanced because the Democratic White House and Republican Congress were in absolute legislative stalemate, so neither side could implement grand plans to increase spending or cut taxes.
Gingrich is wrong to suggest there were four years of balanced budgets when he was speaker. He left in January 1999; the budget ran a surplus in the fiscal years 1998, 1999, 2000 and 2001. So he can at best claim two years.
During the surplus years, moreover, the gross debt (including bonds issued to Social Security and Medicare) rose by $400 billion. Gross debt is the figure that conservatives tend to use. During Gingrich’s time as speaker, the public debt was essentially flat and the gross debt rose $700 billion.
Obama “had $800 billion worth of stimulus in the first round of stimulus. It created zero jobs.”
— Perry
Perry is wrong. The surplus created jobs; it also saved jobs. But there has not been a net gain in jobs because so many jobs were lost early in Obama’s presidency. Since the stimulus bill was signed, the number of overall jobs in the United has declined by about 1.9 million.
Economists differ on the effectiveness of the stimulus, but most say it has at least some effect (ie, created at least some jobs.) A recent review of nine different studies on the stimulus bill found that six studies concluded the stimulus had “a significant, positive effect on employment and growth,” and three said the effect was “either quite small or impossible to detect.”
“I was one of the only people in Washington that said: Do not raise the debt ceiling. Don’t give the president of the United States another $2.4 trillion blank check. You’ve got to draw the line in the sand somewhere and say: No more out-of-control spending.”
— Bachmann
Ever hear of a “blank check” with a number attached to it? In any case, Congress has already committed to spend much of this money, under budgets passed in previous years. Lifting the debt ceiling merely means that the Treasury now has the authority to make good on bills that are coming due.
“We have cut taxes by $14 billion, 65 different pieces of legislation.”
— Perry
That’s one side of the ledger. We are not sure if Perry’s figure is correct but as Politifact Texas has documented, he has also raised taxes repeatedly, including on cigarettes, to make up revenue for cuts in local property taxes.
“What we saw with all of the $700 billion bailout is that the Federal Reserve opened its discount window and was making loans to private American businesses, and not only that, they were making loans to foreign governments. This cannot be.”
— Bachmann
Bachmann is significantly overstating the case. Bloomberg News, which filed the Freedom of Information Act request that resulted in the disclosure of the Fed loans to foreign banks (some of which had had some government ownership), noted: “The Monetary Control Act of 1980 says that a U.S. branch or agency of a foreign bank that maintains reserves at a Fed bank may receive discount-window credit.” All of the loans were paid back, according to Fed officials.
“And I happen to think that what we were trying to do was to clearly send the message that we’re going to give moms and dads the opportunity to make that decision with parental opt-out. Parental rights are very important in the state of Texas. We do it on a long list of vaccines that are made.”
— Perry
Perry skated close to the edge of the truth here as he tried to defend his controversial order to require the vaccine that is said to prevent cervical cancer. As Politifact Texas reported in 2010, Perry “ordered the Department of State Health Services to allow parents dissenting for philosophical or religious reasons from all immunizations — not just this one — to request a conscientious objection affidavit form.”
Just 0.28 percent of students filed such forms, which must be updated every two years to remain viable — and not all private schools accept the form. So as many as 15 percent of girls did not have the possibility of opting out of the requirement to receive the vaccine if they wanted to continue in their schools.
While Romney denied Bachmann’s charge that there was a connection between his order and a $5,000 campaign donation, Texas media reported that Perry’s chief of staff held a meeting on the vaccine plan on the same day the donation was received. Perry’s aides said the timing was a coincidence.
“This is the election that’s going to decide if we have socialized medicine in this country or not. This is it. Why? I just have to say this. It’s because President Obama embedded $105,464,000,000 in Obamacare in postdated checks to implement this bill.”
— Bachmann
It’s wrong to say the health-care law — which builds on the existing private system — will result in socialized medicine, but apparently some people will never be convinced.
But Bachmann’s assertion of $105 billion “embedded” in the health-care law is another bogus claim for which she has previously earned four Pinocchios. We looked closely at her assertion in March and concluded that her charge that this money was “hidden” does not have credibility. The money for these programs was clearly described and analyzed by the Congressional Budget Office before the legislation was voted into law. And since then, the Obama administration has issued a new release every time it spent some of the funds.
By: Glenn Kessler, The Fact Checker, The Washington Post, September 13, 2011
George W. Bush Says “Most Nervous Moment” Of His Presidency Is When He Threw A Ball
Former U.S. president George W. Bush. (REUTERS) Former President George W. Bush might want to drop the superlatives.
In what is at least his second foot-in-the-mouth moment recalling the toughest moments of his presidency, Bush has said “the most nervous moment” of his presidency was throwing the ceremonial first pitch at the 2001 World Series.
According to an interview Bush gave to the producers of “Beyond 9/11: Portraits of Resilience,” a TIME documentary that aired over the weekend, and a clip provided by Gawker, the former president said:
The adrenaline was coursing through my veins, and the ball felt like a shotput. And Todd Greene, the catcher, looked really small. Sixty feet and six inches seemed like a half-mile. And anyway, I took a deep breath and threw it, and thankfully it went over the plate. The response was overwhelming. It was the most nervous I had ever been. It’s the most nervous moment of my entire presidency, it turns out.
The statement was reminiscent of another by Bush last year, in which he said the worst moment of his presidency is when rapper Kanye West called him a racist. “It was a disgusting moment, pure and simple,” Bush had said. “I didn’t appreciate it then [and] I don’t appreciate it now.”
Bush was referring to a Hurricane Katrina live telethon appearance by West in 2005, in which the performer launched into a an angry diatribe about race and aid efforts, including the accusation: “George Bush doesn’t care about black people.”
The Guardian pointed out at the time that the comment came in spite of Bush having led “the U.S. into war and presiding over the beginnings of one of the greatest financial disasters in history.”
This time, Gawker provides a laundry list of things Bush should have found more nerve-wracking than a baseball pitch, including receiving a warning that Osama bin Laden was going to strike the United States or authorizing the torture of detainees in U.S. custody. “That was some … pitch, though,” Gawker writes sarcastically.
Watch the video of Bush’s statement here or his full “Beyond 9/11” video here.
By: Elizabeth Flock, The Washington Post, September 12, 2011
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