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“Co-Opted By The Extremists”: John Boehner And The GOP Choose The Tea Party Over The Middle Class

The Republicans, now led from behind by House Speaker John Boehner, are painting themselves into a tiny corner. Boehner may have secured his job as speaker but he has categorically rejected any hope of a grand bargain, thereby leading his party in a rejection of America’s middle class. Unless he can be persuaded by Republican senators and a few dozen of his House colleagues to accept a balanced deal with the president and the Democrats he will severely harm his party by appealing only to the Tea Party.

Leaving the White House after the meeting with the president, Speaker Boehner dug in his heels against the closing of any tax loopholes or raising any revenue. Hasn’t he learned anything since the election?

Look at what has happened to the Republicans. Democrats have a 22 point advantage (according to the NBC/Wall Street Journal poll) on who would look out for the middle class, the largest margin in 20 years. The same poll found that 36 percent of the public viewed the Republicans favorably in October of 2012, only 29 percent view them favorably today—a remarkable drop in just four months.

And there are very good reasons why House Republicans, who really are the current face of the party, are tanking. They are completely out of touch with the American people on the critical issues. Putting aside votes on the Violence Against Women Act or relief for Hurricane Sandy or averting the “fiscal cliff” or even gay rights, choice, and immigration, they are digging a huge hole for themselves on economic issues.

Right now, 76 percent of Americans want a balanced approach to cutting the deficit, only 19 percent support the Republican position of “cuts only.” By over 2 to 1, voters think the sequester is a bad idea. If the House Republicans and John Boehner continue down their radical path of refusing to negotiate, threatening government shutdowns, and not raising the debt limit, their public standing will continue to erode.

According to a National Journal survey, four-fifths of Americans want to completely exempt Social Security and Medicare from any deficit reduction.

With entitlements making up two-thirds of the budget and growing, it doesn’t take Willie Sutton to figure out that’s where the money is! In order to get Democrats to take on entitlements and the political heat that would bring, the Republicans need to acknowledge that the wealthy must pay their fair share, that hedge fund managers and corporate jet owners shouldn’t be getting more tax breaks. Real tax reform means that we have a fairer and more equitable system. That really is only common sense.

But right now, if Boehner continues to march in lock step with his right flank, there will be no grand bargain, there will be no tax reform, there will be no stabilizing of future budgets. Boehner caved during the last grand bargain negotiations in 2011, according to this week’s New Yorker, because Eric Cantor and the Tea Party forced him to pull out of the deal.

Now, he refuses to negotiate, to work across the aisle, to even work with Senate Republicans. This is not the mark of a leader but someone who has been co-opted by the extremists in his party.

 

By: Peter Fenn, U. S. News and World Report, March 1, 2013

March 3, 2013 Posted by | Sequester | , , , , , , , , | Leave a comment

“Vulnerability Of The Vote”: Insurance Against Racial Suppression Should Not Be On A Backwards Slide

An odd scene unfolded in Washington on Wednesday: as the president and leaders of Congress were dedicating a statue to Rosa Parks, the lifelong activist whose defiance on a Montgomery, Alabama, bus helped spark the Civil Rights Movement, across the street the Supreme Court heard oral arguments on one of the signature piece of civil rights legislation, the Voting Rights Act.

Specifically, the court heard the case of Shelby County v. Holder, in which that Alabama county seeks to overturn Section 5 of the Voting Rights Act, which was passed in 1965. That section requires states — and some municipalities — to get pre-clearance from the Justice Department or the District of Columbia federal court before making any changes to voting laws.

The fundamental question is whether states that have a history of voter suppression should forever have to live with the legacy of that past.

The problem with the law, in my mind, is that it should be expanded rather than struck down.

The Brennan Center for Justice at New York University maintains that “Section 5 is an essential and proven tool.” According to the center:

“Although progress has been made since the Voting Rights Act passed in 1965, voting discrimination still persists. Between 1982 and 2006 (when Congress overwhelmingly renewed the law), the Voting Rights Act blocked more than 1,000 proposed discriminatory voting changes. Without Section 5’s protection, these changes would have gone into effect and harmed minority voters.”

The center calls the passage of the Voting Rights Act “a reflection of the promise of our Constitution that all Americans would truly have the right to vote without facing discrimination, poll taxes, and other abuses,” and I wholeheartedly agree with that point of view.

The problem that the law may run into is that it’s too narrow.

In a 2009 ruling questioning the constitutionality of Section 5, Chief Justice John G. Roberts Jr. wrote:

“The evil that Section 5 is meant to address may no longer be concentrated in the jurisdictions singled out for preclearance. The statute’s coverage formula is based on data that is now more than 35 years old, and there is considerable evidence that it fails to account for current political conditions. For example, the racial gap in voter registration and turnout is lower in the States originally covered by Section 5 than it is nationwide.”

If the Voting Rights Act covered all states and not just some, Justice Roberts’s argument would be null. In fact, there is growing evidence that such a national requirement would be prudent. Many of the states that sought to install voter suppression laws leading up to last year’s election were in fact not covered by Section 5.

Roberts hammered this point home Wednesday during oral arguments, asking, “Is it the government’s submission that the citizens in the South are more racist than the citizens in the North?”

Seven of the nine states covered by Section 5 are in the south (Alabama, Georgia, Louisiana, Mississippi, South Carolina, Texas and Virginia). The other two states are Arizona and Alaska. Some counties and townships are covered in other states.

The Southern states that Section 5 applies to span the Black Belt of the south, a region with the most glaring electoral abuses in the 1960s.

A November Pew Research Center report points out the obvious: blacks were the largest minority group in 1960, but that is no longer the case.

According to the report, blacks were 11 percent of the population, while Hispanics were 3.5 percent and Asians were .6 percent. Since then, the demographics of the country have changed dramatically. According to Pew, in 2011 blacks were 12 percent of the population, while Hispanics were 17 percent and Asians were 5 percent. And the numbers are projected to change even more. By 2050 Pew estimates that blacks will be only 13 percent of the population, while Hispanics will be 29 percent and Asians 9 percent.

To boot, Hispanics and Asians geographically dispersed differently than blacks.

We not only need to keep Section 5 in place, we also need to consider expanding it so that every voter has fair and equal access to the ballot. There are hurdles to achieving this goal, of course. The court might also find that it’s unconstitutional to broaden that section of the law, deeming it too onerous and an infringement on states’ rights — particularly those states that don’t have a demonstrable, endemic, systematic history of discrimination.

Still, it’s worth some thought.

During oral arguments, Justice Antonin Scalia went so far as to call Section 5 the “perpetuation of racial entitlement.” (That guy…) It’s not a racial entitlement, sir, but insurance against racial suppression.

In the president’s remarks at the statue dedication, he rightfully hedged his words. Instead of saying that because of people like Parks our children grow up in a land that is free and fair and true to its founding creed, he said that because of them it is “more free and more fair; a land truer to its founding creed.” (Emphasis mine.)

We’ve come a long way, but we’re not there yet, and the last thing we want or need now is to slide backward.

 

By: Charles M. Blow, Op-Ed Columnist, The New York Times, February 27, 2013

March 3, 2013 Posted by | Civil Rights, Voting Rights | , , , , , , , | 2 Comments

“Insurance Against Need, Guaranteed Return”: Why Democrats Must Get Smart On “Entitlements”

In a season of depressing budget news, the worst may have been that a majority of U.S. House Democrats signed a letter urging President Barack Obama to oppose any benefit cuts to Social Security, Medicare, Medicaid and other entitlements. That’s the last thing we need.

To hold the line on harmful cuts to discretionary spending, Obama and the Democrats must educate the public about the necessity of entitlement reform. Otherwise, the poor and needy — largely spared by the automatic reductions under sequestration — will get hit much harder down the road.

Liberals are right to reject Republican proposals that would slash social-welfare programs even as they refuse to consider closing tax loopholes for the wealthy. And I agree that the sequestration will cut into the bone of important government functions and investments in the future.

That makes two more reasons to start talking seriously about how we will pay for the insanely expensive retirement of the baby boomers.

How expensive? Anyone reaching retirement age in the next 20 years (including me) will take more than three times as much out of Medicare as he or she contributed in taxes. By 2030, the U.S. will have twice as many retirees as in 1995, and Social Security and Medicare alone will consume half of the federal budget, with the other half going almost entirely to defense and interest on the national debt. It’s unsustainable.

If Democrats don’t want to talk about these programs, they can say goodbye to every other pet program. We can preserve Medicare in amber only at the expense of investments in pre-kindergarten programs or cancer research.

To reform entitlements, we should assess what these programs were meant to do in the first place.

For starters, Presidents Franklin D. Roosevelt and Lyndon B. Johnson didn’t call them entitlements. Jimmy Carter’s administration borrowed the term from Anarchy, State and Utopia, a 1974 book by Robert Nozick, a political philosopher. “Entitlement” sounds selfish and at odds with the dignity and peace of mind that Social Security and Medicare are meant to provide.

It distorts the animating idea behind these programs, which is social insurance.

FDR didn’t have strong feelings about benefit levels, retirement ages or eligibility standards. He focused on what he called guaranteed return. By that he meant that having paid into the system through a kind of insurance premium (though in fact it was merely a payroll tax), Americans should rest easy that some money would be there for them if they lived long enough to need it. The whole point was “insurance against need.”

“Guaranteed return” and “insurance against need” should continue to be the two guiding principles of social-insurance reform.

“Guaranteed return” means no privatization or voucher system for these programs. FDR would have strongly opposed President George W. Bush’s plan to allow Social Security contributions to be invested in the stock market. He thought subjecting retirement income to what he called “the winds of fortune” was a breach of the social contract. Imagine what would happen to someone who retired in 1929 or 2008? No guaranteed return.

“Insurance against need” suggests keeping the focus on poor and middle-class recipients who depend on the money most. That means means-testing, giving wealthier retirees less. FDR, who favored high levels of taxation on the rich, would have been fine with taxing their benefits, too, as long as they were guaranteed to get at least something back.

Liberals generally oppose means-testing social-insurance programs. For decades they’ve argued that if the wealthy don’t get a heaping portion of Social Security and Medicare, it will undermine the political support of the programs and turn them into a form of welfare. Once that happens, the theory goes, the programs will be ended.

Like the word “entitlements,” this hoary idea should be retired. Social Security and Medicare are now so deeply in the marrow of the American middle class that they will never be seen as welfare. The question is not whether to reform them, but how.

Roosevelt structured Social Security as an insurance program with “contributions” through the tax code “so no damn politician can ever take it away.” He didn’t specify anything about the level of taxation or cost-of-living increases, which weren’t an issue in the 1930s but would become one shortly after World War II.

Today, only the first $110,000 in income is subject to the 7.65 percent tax that pays for Social Security and Medicare. Lifting the cap to higher income levels (say $250,000 or $400,000) could eventually generate hundreds of billions of dollars.

Republicans consider this a tax increase. That’s only true outside the context of these programs. The change could be structured so that no one paid in more than actuarial tables say they would take out. That would still raise billions and be consistent with the idea of paying for your own retirement if you can afford it.

For lifting the cap to have any chance, it would have to be matched by reforms such as adopting the chained consumer-price index, a new way to measure cost-of-living adjustments that Obama apparently favors. Liberals oppose chained CPI because it would theoretically result in lower benefits. But less frequent cost-of-living increases aren’t the same as cuts, especially if the current system is, as many experts believe, based on an inaccurate assessment of inflation.

Maybe there are better ideas for reforming social insurance. The point is, we better start talking about them. Otherwise, grandpa and grandma and their fellow Grateful Dead fans are going to eat all the food on the table.

 

By: Jonathan Alter, The National Memo, March 1, 2013

March 3, 2013 Posted by | Medicare, Social Security | , , , , , , , | Leave a comment

“No Good Choices”: Sequestration Is Here And Danger Lies Ahead

At midnight, $85 billion in federal budget funds will be sequestered (that is, held back) by the Treasury Department, with the potential to cause real pain for the economy and many Americans if Republicans and Democrats can’t agree to some sort of solution. (For an explainer about how this all came about, see here.)

The two sides are, naturally, quite far apart. The White House has offered a sequester replacement plan that it touts as “balanced” and thus ostensibly palatable to Republicans, though the administration is actually selling itself short: the plan should be quite appealing to the GOP exactly because it is unbalanced. The plan offers $930 billion in budget cuts with only $680 billion in revenue ($100 billion of which comes from Chained CPI, anathema to most progressives).

Republicans, meanwhile, want a sequester solution with no new revenue whatsoever—“The revenue issue is now closed,” House Speaker John Boehner said on Thursday—and many Republicans would like the sequester cuts rejiggered to spare defense spending and hit domestic and entitlement programs even harder.

So both sides are now playing the blame game, hoping that the public will get seriously angry about the disruptions caused by the sequester and blame the other side, thus bringing them to the table ready to give concessions.

There is substantial reason to be optimistic that Obama has the upper hand and will “win” this battle. The public appears to be on his side, and serious fractures within the GOP may soon emerge—defense hawks who cannot abide the Pentagon cuts much longer, and rationalists within the party who think the brand is being irreparably damaged.

But for progressives, is it really a win for Obama’s preferred approach to prevail? The emerging consensus is ‘no.’ Some of the cuts Obama offers are plain bad, like his offer to “reform” federal retirement programs and save $35 billion, which means in essence to take $35 billion from the pensions of public workers. Many cuts are inoffensive, and some are good cuts: like reducing certain agricultural subsidies and reducing Medicare payments to big drug companies.

The revenue would mainly be taken from the wealthy via capping deductions and closing loopholes that benefit top earners. But there’s that Chained CPI bit (or “superlative CPI,” as the White House refers to it) that really troubles progressives—and should. It represents a tangible cut to the safety net: seniors already living on $1,200 per month would see $1,000 less per year under the new formula. Disabled veterans would lose $1,400 per year, and middle-class taxes would be hiked on top of it. (The increased tax revenue is, I suppose, why the White House has classified Chained CPI as new revenue, but on the benefit side of Social Security and other programs, this is clearly a cut.)

Cutting entitlements for any reason is a no-go for many Democrats in Congress, especially when coupled with nearly a trillion dollars in budget cuts. That’s what would happen if Obama’s plan wins, and it’s what worries liberals. “There’s a broader concern about the fact that entitlements may get ensnared when we go to an alternative fix, [that] they won’t escape,” Representative Jerry Nadler told BuzzFeed.

The AFL-CIO issued a statement this week that didn’t back Obama’s “balanced” approach, but called for the sequester to be straight-up repealed. “There’s no need to replace the sequester in full or in part. We don’t need it. Republicans are saying we need to address the source of the problem as leverage to get entitlement cuts,” it read. The Congressional Progressive Caucus has also called for sequestration to be completely repealed.

That’s the best-case solution for progressives. (Realistically speaking, of course. The actual best-case solution is the comprehensive plan released by the Congressional Progressive Caucus.) But Boehner probably won’t be able to sell a full repeal of spending cuts in exchange for exactly nothing to his rambunctious hard-core caucus in the House. There might not be any deal to be had here.

In that case, sequestration stays in place. That’s definitely worse than repealing it, but is it really worse than Obama’s grand bargain? Under sequestration half of the cuts come from defense spending; Medicare is protected except for a 2 percent cut to doctor reimbursements, and Social Security, Medicaid, the Children’s Health Insurance Program and food stamp programs are protected entirely.

The other domestic cuts are no doubt painful and bad policy, but progressives have a tough choice in weighing that against what Obama’s proposing. And this of course assumes Obama gets everything he wants, which will not happen. Whatever bargain Congress and Obama strike out, if they manage to get something done, will almost certainly be worse.

There are real dangers to enacting some kind of bargain with Republicans to end the sequester—clearly on policy, but also on the politics, even though the administration seems to think otherwise. If White House aides truly believe that achieving a “grand bargain” that includes chained CPI will yield some sort of political victory, they ought to pay closer attention to the blame game now happening around the sequester.

One of Bob Woodward’s central claims, and the one that spurred the now-infamous pushback from the White House, is that Obama’s team came up with the sequester. This has been relentlessly pushed by Republicans (who invented a corny #Obamaquester hashtag) and by far too many mainstream media journalists.

This is plainly ridiculous—Obama wanted a clean debt-ceiling hike in 2011, and Republicans denied it and forced a showdown. Republicans were not enticed by what the White House offered to end the standoff and demanded some kind of guarantee of budget reductions, and at that point an administration official proposed sequestration as a tool. To strip that final piece of the timeline of all preceding context, and say that somehow Obama wanted the sequester, is exactly backwards—but it’s what is happening.

This is identical to what would likely happen to Chained CPI. Sure, this whole showdown was created by Republicans. And everyone understands the GOP to be the party that wants to cut “entitlement” programs. But Republicans have very deftly avoided proposing specific cuts to Social Security or Medicare in this debate; only Obama has with his Chained CPI proposal. Does anybody really think that two years from now, Republicans wouldn’t pull the exact same parsing of history as they did with the sequester, and blame Obama for cutting Social Security, which an overwhelming amount of Americans oppose? (Remember too that this is exactly what the Romney-Ryan ticket did with the $700 million in Medicare cuts included in the Affordable Care Act.)

In short, the sequester is a disaster, but a potentially worse disaster may lie ahead. There are no good choices here, only less-bad ones, and progressives should be wary about confusing political victory with a policy victory.

 

By: George Zornick, The Nation, March 1, 2013

March 3, 2013 Posted by | Sequester | , , , , , , , , | 1 Comment

“The Hostage Takers”: Blame Eric Cantor And Paul Ryan For The Sequester

John Boehner’s laughably weak leadership as House Majority Leader surely must be seen as being partly to blame for the sequester — the Tea Party caucus in Congress clearly has a tight leash on the Speaker.

But at least Boehner tried for a “Grand Bargain” with President Obama in 2011, only to be reined in by Eric Cantor and Paul Ryan, according to a recent interview Cantor conducted with The New Yorker‘s Washington correspondent, Ryan Lizza. Cantor admitted that there was a final meeting with Boehner, Ryan and himself where Boehner wanted to accept the president’s $1.2 trillion offer, but was talked out of it by Cantor and Ryan.

“The reason why we said no in that meeting, ‘don’t do this deal,’ was because what that deal was, was basically going along with this sense that you had to increase taxes, you had to give on the question of middle-class tax cuts prior to the election,” said Cantor. “And you knew that they had said they weren’t giving in on health care.”

So basically, this was about the 2012 election. Cantor and Ryan wanted to let the voters decide on taxes and health care instead of preempting it with the Obama-Boehner Grand Bargain. Then in November, the American public overwhelmingly voted for President Obama and his balanced approach to deficit reduction and growing the economy through a mix of spending cuts, tax revenues and closing corporate loopholes — a result that has been confirmed in repeated polls. The American people also doubled down on Obamacare by re-electing the president.

Cantor concluded the interview with Lizza with this telling remark: “That’s why we said, ‘Let’s just get what we can now, abide by our commitment of dollar-for-dollar, and we’ll have it out, as the president said, on these two issues in the election”.

The failure of the Grand Bargain resulted in the Budget Control Act of 2011, which included the automatic budget sequestration.

So it is now clear that Cantor and Ryan killed the Grand Bargain, leading to the sequester and the onset of European-style austerity and possibly another recession, and their basis for that was their supreme confidence that they would win the election. What is unclear is why, after their ideas were thoroughly rejected, they are defying the will of the American people and a popular president by refusing to compromise.

Could it be that they wanted this all along? Here is what Ryan said after the law putting the sequester in place was passed in August, 2011:

“What conservatives like me have been fighting for, for years, are statutory caps on spending, legal caps in law that says government agencies cannot spend over a set amount of money. And if they breach that amount across the board, sequester comes in to cut that spending, and you can’t turn that off without a supermajority vote. We got that in law. That is here.”

By: Josh Marks, March 1, 2013, The National Memo

March 2, 2013 Posted by | Sequester | , , , , , , , , | Leave a comment