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112th Congress Is One Of The Least Productive In Years

Freshman Republican Sen Kelly Ayotte is often asked what surprises her most about serving in the esteemed upper chamber of Congress. The earnest, 43-year-old conservative from New Hampshire has come up with an uncomplicated reply:

“I thought that we would vote on a lot more bills.”

She most recently offered this answer from her Senate office at 3:45 on a Thursday afternoon. Senate Majority Leader Harry Reid (D-Nev.) had just announced that the Senate was done voting for the week. Senators wouldn’t be needed until the following Tuesday.

In the lobby outside Ayotte’s office, a television tuned to C-SPAN was showing an empty Senate chamber. In offices up and down the hallway, aides were booking flights home.

So it goes these days on Capitol Hill, a place of many headlines and much drama but not a whole lot of legislating.

The 112th Congress is on pace to be one of the least productive in recent memory — as measured by votes taken, bills made into laws, nominees approved. By most of those metrics, this crowd is underperforming even the “do-nothing Congress” of 1948, as Harry Truman dubbed it. The hot-temper era of Clinton impeachment in the 1990s saw more bills become law.

There is no shortage of explanations for the apparent lack of legislative success. Political observers see hyperpartisanship and perpetual campaigning that makes once-routine steps politically perilous.

Experts cite the rise of a brand of conservatism that aims for a government that governs least. Historians note that it’s not unusual for Congress to take a breather after a period of hyperactivity like the one Washington completed last year.

Lawmakers have a long list of politically tinged reasons: Republicans who control the House blame Democratic leaders in the Senate for refusing to hold votes that might prove problematic for members up for election next year; Democratic leaders in the Senate blame Republicans in both chambers for not working with them on legislation that has a shot of winning a presidential signature.

Perhaps the only group seeing a bright side is the Democratic minority in the House, which supports virtually none of the bills voted on in that chamber but doesn’t have to worry about them ever becoming law.

President Obama called out Congress when he argued last week that members have to “be here” to make progress on its top priority: negotiating a deal on the debt that can pass the Republican-led House and Democratic-led Senate.

But it’s not necessarily time spent in Washington where this Congress is falling behind. It’s how little it accomplishes when it’s here.

“I put it this way: no harm done yet,” said Rep. Henry A. Waxman (D-Beverly Hills). “But nothing accomplished yet — with a lot of ominous things that still may happen.”

To be sure, lawmakers are grappling with big issues, such as the Aug. 2 deadline to raise the government’s debt ceiling. Action on that front, however, has been behind closed doors in on-again off-again budget negotiations. Nearly all other major priorities — tax reform or a 2012 budget — have been delayed while lawmakers work on a deal.

And so the legislative trickle has slowed to a drip. From January until the end of May, the last date for which comparable statistics are available, 16 bills had become law — compared with 50 during that period last year, or 28 in 2007, also a time of divided government.

The Senate has taken 84 “yea and nay” votes and the House 112, roughly half the number as in 2007. The Senate by the end of May had confirmed just over half the administration’s nominees; recent congresses typically have been near the end of the list by this point.

The bills that have passed this year largely have been extensions of expiring laws. Also on this year’s list was a must-pass deal to keep the government from shutting down, which essentially was a piece of unfinished business from the previous Congress.

Then there were three laws naming public buildings, a resolution appointing a member of the Smithsonian Institution and one extending the life of the Ronald Reagan Centennial Commission.

The inertia might be best observed at the Senate Budget Committee.

When Ayotte was named to the committee after Sen. John Ensign (R-Nev.) abruptly resigned in April, it was a coveted “get” for a conservative who won office by promising to cut spending. She came out of her first planning meeting with a list of proposals, only to hear Reid say Democrats would not introduce a budget until after the deficit talks.

“I got appointed. I was excited about it. I had one good meeting and then it was done. That’s been my experience on that committee,” Ayotte said. The committee has not met since April 5.

But it’s not just Democrats putting a drag on legislative activity. Republicans on Thursday boycotted a hearing on a series of free trade deals, derailing what was considered a bipartisan effort.

Meanwhile, Sen. Ron Johnson (R-Wis.) held his own protest to highlight the Democrats’ missing budget. Although Democrats say a budget plan is coming next week, Johnson used a procedural move to keep Reid from scheduling a vote on a resolution authorizing military involvement in Libya — the rare issue likely to find bipartisan agreement.

The “tea party” freshman, who says he’s used to working in business “where you focus on accomplishing things,” said he realized he was stalling “a very important issue.”

“But the fact of the matter is it simply doesn’t address the fact that we’re bankrupting this nation,” he said.

Much of this has been taken in stride by folks who’ve been around for a while.

“If you’re not comfortable with delay, frustration and impatience, get out of the Senate,” said Sen. Richard J. Durbin (D-Ill.). “It’s the nature of the institution, but I think we’ve taken it to an art form.”

At the other end of the building, the House isn’t exactly breaking records.

The 50 bills it has passed in the first five months of 2011 represent the lowest such number in more than 15 years. Republicans’ anti-Washington rhetoric translated into a schedule intended to keep lawmakers out of Washington. The result has been fewer days in session and fewer votes.

Reid, borrowing the critique usually aimed at him, recently complained that Senate bills — a patent reform measure and reauthorization of the Federal Aviation Administration — had fallen into the “big black hole” of the House.

In fact, each side is piling bills on the other’s doorstep while they wait for a deal to come out of the debt talks.

That package could prove that legislative activity doesn’t necessarily correspond to substance.

“Obviously, if they reach some kind of deal that results in a sweeping change in the scope of government and the tax rates, they don’t have to do much else to go down as a consequential Congress,” said Norman Ornstein, an expert on Congress at the American Enterprise Institute for Public Policy Research. “Most everywhere else, their influence is puny.”

With an Aug. 2 deadline, it may take much of the summer to find out. After that, both bodies leave for a long summer break and return after Labor Day.

 

By: Kathleen Hennessey, Staff Writer, Chicago Tribune, July 3, 2011

July 6, 2011 Posted by | Congress, Conservatives, Debt Ceiling, Debt Crisis, Democracy, Democrats, Economy, GOP, Government, Government Shut Down, Ideologues, Ideology, Jobs, Lawmakers, Politics, Republicans, Right Wing, Tea Party, Wealthy | , , , , , , , , , , , | Leave a comment

Justifying Cuts: A Well-Used But Misleading Medicaid Statistic

“Cash-strapped states are also feeling the burden of the Medicaid
entitlement. The program consumes nearly 22 percent of states’ budgets today, and things are about to get a whole lot worse.”

— Sen. Orrin Hatch (R-Utah), June 23, 2011, at a hearing of the Senate Finance Committee

“Medicaid is the lion’s share of that spending burden as it now consumes about 22 percent of state budgets now and will consume $4.6 trillion of Washington’s budget over the next ten years.”

— Former Kentucky governor Ernest Lee Fletcher (R), June 23, 2011, at the same hearing

“Across the country, governors are concerned about the burgeoning cost of Medicaid, which in fiscal 2010 consumed nearly 22 percent of state budgets, according the National Association of State Budget Officers. That’s larger than what states spent on K-12 public schools.”

Washington Post front page article, June 14, 2011

When a statistic is universally tossed around as a certified fact, it’s time to get suspicious.

Such is the case with this oft-cited statistic that 22 percent of state budgets is being gobbled up by Medicaid, the state-federal program that provides health coverage for the poor and the disabled. Medicaid supposedly is even dwarfing what is spent on educating children and teenagers.

But note the phrase “state-federal.” There’s billions of dollars in federal money involved, and the “22-percent” statistic obscures that fact. Let’s dig a little deeper into the numbers.

The Facts

Medicaid was a central part of President Lyndon Johnson’s “Great Society” initiative in the mid-1960s. Each state administers its own Medicaid program, but with federal oversight, federal requirements—and plenty of federal dollars. On average, the federal government provides 57 percent of Medicaid funds.

Initially, Medicaid was focused low-income Americans, but elderly nursing home care has also become a big part of it. The new health care law would also greatly expand eligibility to people up to 133 percent of the official poverty line.

There’s no question that the recession has put pressure on Medicaid spending, as more people lost jobs or income and so became eligible for coverage. The new requirements of the health care law also will boost Medicaid spending.

The assertion that Medicaid is 22 percent of state spending, and thus now exceeds education spending, comes from an annual survey of the National Association of State Budget Officers (NASBO). But if you dig into the report — if you just go to page
one — you will see that this number includes the federal contribution, in what
is known as “total funds.”

If you want to see what states themselves are spending on Medicaid —“general funds” — you have to use another set of statistics.

As NASBO says on page one, “For estimated fiscal 2010, components of general fund spending are elementary and secondary education, 35.7 percent; Medicaid, 15.4 percent; higher education, 12.1 percent; corrections, 7.2 percent; public assistance, 1.9 percent; transportation, 0.8 percent; and all other expenditures, 27.0 percent.”

In other words, without the federal dollars included, Medicaid falls to second place, far behind education. It turns out that on average, states spend 15.4 percent of their funds on Medicaid — not 22 percent.

Brian Sigritz, NASBO’s director of state fiscal studies, said, “You are correct that there are several different ways of looking at Medicaid spending that you can use. If you consider just general funds, K-12 easily remains the largest component of general fund spending, as it historically has been.”

Indeed, when you look at NASBO’s historical data (table three of this report), it becomes clear that Medicaid spending, as a proportion of general funds, has remained relatively consistent since 1995 — about 15 percent — in contrast to the popular image of being a drain on state budgets.

Sigritz said that the two figures provide a different picture of state spending. “General funds gives you a sense of spending deriving from state revenue, while total funds gives you a sense of total state expenditures,” he said.  “Typically when you discuss overall state budgets you examine the various funding sources that go into them including general funds, other state funds, bonds, and federal funds.”

The Office of the Actuary for Medicare and Medicaid makes this distinction. The 2010 Actuarial Report for Medicaid notes the broad figure, but then takes pains to add: “This amount, however, includes all Federal contributions to State Medicaid spending, as well as spending from State general revenue funds and other State funds (which for Medicaid consists of provider taxes, fees, donations, assessments, and local funds).” The report concludes: “When only State general revenues are considered, however, Medicaid spending constitutes an estimated 16.2 percent of expenditures in 2009, placing it well behind education.”

Antonia Ferrier, a spokeswoman for Hatch, defended the 22-percent figure, noting its wide use. “It is part of their budgets, and there are many different streams of funding that fund those state budgets (including federal funding, taxes, etc.) that fund their many programs,” she said.

But Colleen Chapman, a spokeswoman for the Georgetown University Center for
Children and Families
, a policy and research center, said, “In the current budget debate, the data are being misused to argue that the Medicaid program in states is out of control and needs to be cut dramatically, when in fact, Medicaid is still much less of state spending than education and has not grown, as a portion of state budgets, in any way close to the mammoth way that others argue it has.”

The Pinocchio Test

We will label this with one of our rarely used categories: TRUE BUT FALSE.
(We still need to get an appropriate icon for this one — suggestions are welcome.)

Yes, the 22-percent figure is a valid number. But it is being used in an inappropriate way, and therefore is misleading. Hatch and Fletcher are only the latest in a long line of public figures — and news outlets — who have seized onto this number without apparently realizing that it is the wrong statistic to use. If people want to understand the impact the Medicaid is having on state budgets, politicians should begin to use the 15-percent figure — or at the least offer a caveat to the 22-percent number. Otherwise, there might be some Pinocchios in their future.

 

By: Glenn Kessler, The Fact Checker, The Washington Post, July 5, 2011

July 5, 2011 Posted by | Conservatives, Deficits, Economy, Education, GOP, Health Care, Ideologues, Ideology, Lawmakers, Medicaid, Middle Class, Politics, Republicans, State Legislatures, States | , , , , , , , , , , , , | Leave a comment

“You Talkin’ To Me?”: Obama Calls The GOP’s Bluff

Here’s how to negotiate, GOP-style: Begin by making outrageous demands. Bully your opponents into giving you almost all of what you want. Rather than accept the deal, add a host of radical new demands. Observe casually that you wouldn’t want anything bad to happen to the hostage you’ve taken — the nation’s well-being. To the extent possible, look and sound like Jack Nicholson in “The Shining.”

This strategy has worked so well for Republicans that it’s no surprise they’re using it again, this time in the unnecessary fight over what should be a routine increase in the debt ceiling. This time, however, something different is happening: President Obama seems to be channeling Robert De Niro in “Taxi Driver.” At a news conference last Wednesday, Obama’s response to the GOP was, essentially, “You talkin’ to me?”

Obama’s in-your-face attitude seems to have thrown Republicans off their stride. They thought all they had to do was convince everyone they were crazy enough to force an unthinkable default on the nation’s financial obligations. Now they have to wonder if Obama is crazy enough to let them.

He probably isn’t. But the White House has kept up the pressure, asserting that the real deadline for action by Congress to avoid a default isn’t Aug. 2, as the Treasury Department said, but July 22; it takes time to write the needed legislation, officials explained. Tick, tick, tick . . .

“Malia and Sasha generally finish their homework a day ahead of time,” Obama said, gratuitously — but effectively — comparing his daughters’ industry with congressional sloth. “It is impressive. They don’t wait until the night before. They’re not pulling all-nighters. They’re 13 and 10. Congress can do the same thing. If you know you’ve got to do something, just do it.”

Obama’s pushing and poking are aimed at Republicans who control the House, and what he wants them to “just do” is abandon the uncompromising position that any debt-ceiling deal has to include big, painful budget cuts but not a single cent of new tax revenue.

The president demands that Congress also eliminate “tax breaks for millionaires and billionaires . . . oil companies and hedge fund managers and corporate jet owners.” Without these modest increases in revenue, he says, the government will have to cut funding for medical research, food inspection and the National Weather Service. Also, presumably, whatever federal support goes to puppies and apple pie.

In truth, some non-millionaires who never fly on corporate jets would also lose tax breaks under the president’s proposal. And it’s hard to believe that the first thing the government would do, if Congress provides no new revenue, is stop testing ground beef for bacteria. But Obama is right that the cuts would be draconian — and he’s right to insist that House Republicans face reality.

My view, for what it’s worth, is that now is the wrong time for spending cuts or tax increases — that it’s ridiculous to do anything that might slow the lumbering economic recovery, even marginally. But if there have to be cuts, then Republicans must be forced to move off the no-new-revenue line they have drawn in the sand.

Even if they move just an inch, the nation’s prospects become much brighter. This fight is that important.

Every independent, bipartisan, blue-ribbon panel that has looked at the deficit problem has reached the same conclusion: The gap between spending and revenue is much too big to be closed by budget cuts alone. With fervent conviction but zero evidence, Tea Party Republicans believe otherwise — and Establishment Republicans, who know better, are afraid to contradict them.

The difficult work of putting the federal government on sound fiscal footing can’t begin as long as a majority in the House rejects simple arithmetic on ideological grounds.

“I’ve met with the leaders multiple times,” Obama said, referring to House Speaker John Boehner and Senate Minority Leader Mitch McConnell. “At a certain point, they need to do their job.” The job he means is welcoming fantasy-loving Republicans to the real world, and it has to be done.

The stakes are perilously high, but Obama does have a doomsday option: If all else fails, he can assert that a section of the 14th Amendment — “The validity of the public debt of the United States, authorized by law . . . shall not be questioned” — makes the debt limit unconstitutional and instructs him to take any measures necessary to avoid default.

Maybe that’s why, in this stare-down, the president doesn’t seem inclined to blink.

 

By: Eugene Robinson, Opinion Writer, The Washington Post, July 4, 2011

July 5, 2011 Posted by | Class Warfare, Congress, Conservatives, Constitution, Corporations, Debt Ceiling, Debt Crisis, Democracy, Democrats, Economic Recovery, Economy, Federal Budget, GOP, Government, Government Shut Down, Ideologues, Ideology, Lawmakers, Middle East, Politics, President Obama, Public, Republicans, Right Wing, Tax Evasion, Tax Increases, Tax Loopholes, Taxes, Tea Party, Voters, Wealthy | , , , , , , , , , , , | Leave a comment

“We Hold These Truths To Be Self Evident”: Real Patriots Pay Taxes

Some of our nation’s biggest corporations are planning a tax holiday and they want you to pick up the tab.

Actually, you already pay for their routine tax avoidance through the use of tax havens in Bermuda, the Cayman Islands and elsewhere. These accounting acrobatics cost the U.S. Treasury $100 billion a year. Now they want Congress to pass a special tax holiday for money they “repatriate” back to the United States.

There’s nothing patriotic about this repatriation being pushed by Google, Cisco, Pfizer and other companies in the Win America campaign. To sell the tax holiday, they claim it will produce a burst of jobs and investment. In fact, Congress passed a “one-time-only” tax holiday in 2004 with similar promises. Instead, it produced a burst of shareholder dividends and stock buybacks, which goosed the pay of CEOs.

Corporations laid off workers and shifted even more income and investment to offshore tax havens in the wake of the 2004 tax holiday.

“Why should we reward firms for successfully gaming the tax system when we in turn are called on to make up the missing tax revenues?” Edward Kleinbard, former chief of staff of Congress’s Joint Committee on Taxation, told Bloomberg. “Much of these earnings overseas are reaped from an enormous shell game: Firms move their taxable income from the U.S. and other major economies — where their customers and key employees are in reality located — to tax havens.”

A favorite accounting trick is transferring a patent from the U.S. parent company to a subsidiary — often a shell company — in a tax haven. Profits from the patent go largely untaxed offshore while the costs of development, marketing and management remain in the U.S., where they are taken as tax deductions.

Pfizer was the largest beneficiary of the last tax holiday, bringing $37 billion back to the United States and paying just $1.7 billion in federal corporate income taxes. It laid off 10,000 American workers in the following months. The U.S. is the world’s most profitable drug market and yet over the last three years, Pfizer — maker of Lipitor, Viagra and much more — has reported $7.9 billion in U.S. losses while claiming $37.8 billion in profits in the rest of the world. Pfizer, like the rest of Big Pharma, is heavily subsidized by taxpayer-funded research at the National Institutes of Health and elsewhere. It should not be rewarded with another tax holiday.

Bloomberg reported that “Google reduced its income taxes by $3.1 billion over three years by shifting income to Ireland, then the Netherlands, and ultimately to Bermuda.” What a corporate ingrate. Google would not exist without the Internet, and the Internet grew out of U.S. government research beginning in the 1960s. In the 1990s, the U.S. National Science Foundation funded the Digital Library Initiative research at Stanford University that Larry Page and Sergey Brin, now billionaires, developed into Google. Brin was also supported by an NSF graduate student fellowship.

Increasingly, U.S. multinational corporations want to benefit from government spending on education, infrastructure, research, health care and so on without paying for it. Today, large corporations pay, on average, 18 percent of their profits in federal income taxes and as a group contribute just 9 percent toward federal government bills, down from 32 percent in 1952. The Congressional Joint Committee on Taxation says a new tax holiday would cost $79 billion.

A dozen national and state business organizations led by Business for Shared Prosperity recently wrote members of Congress urging them to oppose the tax holiday. The letter said, “When powerful large U.S. corporations avoid their fair share of taxes, they undermine U.S. competitiveness, contribute to the national debt and shift more of the tax burden to domestic businesses, especially small businesses that create most of the new jobs.”

There is no excuse for repeating a policy that’s a proven failure. It would be even worse this time around, as corporations would redouble their efforts to shift profits overseas in anticipation of the next tax holiday. Congress should close the tax loopholes that reward companies for transferring U.S. profits, jobs and investment abroad — not encourage them.

Real patriots pay their fair share of taxes. They don’t run out on the bill.

 

By: Holly Sklar and Scott Klinger, CommonDreams.org, July 4, 2011

July 4, 2011 Posted by | Big Business, Big Pharma, Capitalism, Class Warfare, Congress, Conservatives, Corporations, Deficits, Democracy, Economic Recovery, Economy, GOP, Government, Jobs, Lawmakers, Middle Class, Offshore Accounts, Politics, Republicans, Tax Evasion, Tax Liabilities, Tax Loopholes, Taxes, Wealthy | , , , , , , , , , , | Leave a comment

“In The Course Of Human Events”: The Declaration Of Interdependence

 

When, in the course of human events, it becomes necessary for one people to dissolve the political bonds which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness.

Okay, the Declaration of Interdependence sounds a lot like the Declaration of Independence.

By saying that it is a self-evident truth that all humans are created equal and that our inalienable rights include life, liberty, and the pursuit of happiness, our Founding Fathers were telling us that we are all in this together, that we are interdependent, that we have a moral duty to protect these inalienable rights for all humans. President Lincoln, perhaps above all others, was instrumental in making clear that the second sentence of the Declaration was “a moral standard for which the United States should strive,” as Wikipedia puts it.

The double appeal to “Nature” — including the explicit appeal to “the laws of Nature” in the first sentence — is particularly salient. For masters of rhetoric like the authors of the Declaration, a repeated word, especially in an opening sentence, is repeated for the singular purpose of drawing attention to it (see “Why scientists aren’t more persuasive, Part 1“).

Yes, the phrase “laws of nature” meant something different to Jefferson than it does to us (see here). But as a living document, and as a modern Declaration of Interdependence, the words have grown in meaning.

It is the laws of Nature, studied and enumerated by scientists, that make clear we are poised to render those unalienable rights all but unattainable for billions of humans on our current path of unrestricted greenhouse gas emissions. It is the laws of Nature that make clear Americans can’t achieve sustainable prosperity if the rest of the world doesn’t, and vice versa.

Ironically — or perhaps intentionally — the toughest inalienable right to maintain is “the pursuit of happiness.” Certainly, the catastrophic global warming we know we face (thanks to our understanding of the laws of nature) threatens life and liberty (see “Memorial Day, 2030“).

But if we keep listening to the deniers and delayers, if we fail to sharply reverse our current emissions path nationally and globally, then we are headed toward 5°C (9°F) planetary warming by century’s end and 850+ ppm — with sea level rise of 4 to 6 feet or higher, rising perhaps a foot a decade or more for centuries, the U.S. Southwest and one third of the Earth’s habited land a permanent Dust Bowl, half or more species extinct, and much of the ocean a hot, acidic dead zone (see “Intro to global warming impacts: Hell and High Water“).

Not bloody many people will be pursuing “happiness” under those conditions. They will be desperately trying to avoid misery, when they aren’t cursing our names for betraying our moral values.

If we don’t aggressively embrace the clean energy transition starting immediately with the climate bill in front of Congress — and help lead the entire world to a similar transition — then the Ponzi scheme we call the global economy will probably be in some stage of obvious collapse by our 250th anniversary, July 4, 2026.

That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.

And so “happiness” is repeated also, underscoring its importance to the Founders. “Life” and “Liberty” are really the very minimum we owe our fellow humans. We have a moral obligation to work toward freedom from want and care for all.

The party of Lincoln has, tragically, abandoned the values embraced and articulated by its greatest thinker and rhetorician — and those embraced and articulated by our Founders in the Declaration see (WashPost: “The GOPs climate-change denial may be its most harmful delusion”).

When is the last time a major conservative politician ever talked about “a decent respect to the opinions of mankind” except to mock the entire notion (see Gingrich sums up GOP ethos: “I am not a citizen of the world! I think the entire concept is intellectual nonsense and stunningly dangerous”).

We live in unique times. We must all hang together or we will surely all hang separately.

Happy Interdependence Day Century!

 

By: Joe Romm, Think Progress, July 4, 2011

July 4, 2011 Posted by | Congress, Conservatives, Constitution, Corporations, Democracy, Economy, Environment, Freedom, Global Warming, GOP, Government, Ideologues, Ideology, Liberty, Politics, Republicans, Right Wing | , , , , , , , , , , | Leave a comment