“Exposing Republican Intransigence”: John Boehner Rejects Obama’s Offer To Cut Social Security
House Speaker John Boehner (R-OH) preemptively rejected President Barack Obama’s upcoming budget proposal Friday, slamming the president’s offer to cut Social Security as “only modest entitlement savings.”
President Obama’s budget plan, which he will send to Capitol Hill on Wednesday, will reportedly seek $1.8 trillion in deficit reduction through a combination of new revenues and spending cuts. The most controversial cut is the move to the chained consumer price index (“chained CPI”) for Social Security, which would significantly reduce annual cost-of-living adjustments for Social Security beneficiaries. President Obama has long suggested that he could support the measure, which would cut federal spending by about $130 billion over the next decade, only if Republicans agree to raise new tax revenues.
To many of the president’s liberal allies, such a proposal has been a non-starter. When he floated the idea in late 2012, many House Democrats warned that they would rather go over the “fiscal cliff” than accept the cut. Similarly, in an exclusive interview with The National Memo in March, AFL-CIO president Richard Trumka vowed that America’s largest labor federation would oppose any budget deal that included chained CPI, saying the index is “another example of how Washington creates fancy-sounding phrases to mask stupid policies that only work for the rich.”
The public seems to stand with Trumka; recent polling suggests that Americans strongly oppose any Social Security cuts.
The budget reportedly includes several other cuts, such as $400 billion in health care savings (including additional means-testing for Medicare,) and $200 billion in cuts to farm subsidies, federal employee retirement programs, and unemployment compensation. Obama’s budget also aims to raise $600 billion in new revenues, including an increased cigarette tax, which would be used to finance the president’s proposal for universal pre-K.
“While this is not the president’s ideal deficit-reduction plan, and there are particular proposals in this plan like the CPI change that were key Republican requests and not the president’s preferred approach, this is a compromise proposal built on common ground, and the president felt it was important to make it clear that the offer still stands,” a senior Obama administration official told The Hill.
Obama’s offer to meet in the middle has already failed to move House Republicans, however. Not waiting for the full proposal to be released, House Speaker John Boehner quickly released a statement Friday blasting Obama’s plan.
“Despite talk about so-called balance, the president’s last offer was significantly skewed in favor of higher taxes and included only modest entitlement savings,” Boehner said. “In the end, the president got his tax hikes on the wealthy with no corresponding spending cuts. At some point we need to solve our spending problem, and what the president has offered would leave us with a budget that never balances.”
“If the president believes these modest entitlement savings are needed to help shore up these programs, there’s no reason they should be held hostage for more tax hikes,” Boehner added.
Although Boehner’s statement still completely ignores the $2.5 trillion in deficit reductions to which the White House has agreed since 2010, it does at least acknowledge that Obama is offering “entitlement savings” — even if Boehner rejects the compromise out of hand. This is a modest step in the right direction, considering that until this budget, Republicans have consistently denied that Obama has offered them anything at all.
In the end, that subtle shift may end up as the most significant result of Obama’s budget deal. Although the proposal has no real chance of becoming law — as evidenced by Boehner’s immediate rejection — making a highly publicized compromise offer will further expose the Republicans’ intransigence.
In March, President Obama reportedly offered congressional Republicans a choice: accept a deal that raised revenue in exchange for chained CPI and means-testing of Medicare, or walk away with no budget deal at all. In April, it appears that Boehner has made his decision.
By: Henry Decker, The National Memo, April 5, 2013
“Changnesia”: The Man With The Worst Memory In American Politics
No wonder he looks surprised so often.
There’s something that’s been bugging me for a while about House Budget Committee Chairman Paul Ryan (R-Wis.), but I haven’t been able to put my finger on it. Until now, that is.
The congressman talked to Bloomberg TV this morning, and reporter Peter Cook raised the prospect of some kind of compromise with Democrats, in light of Sen. Patty Murray’s (D-Wash.) Senate Democratic budget. Take a look at Ryan’s response:
“Well, I would say to the Patty Murray school of thought to the President Obama school of thought, they’ve got their tax increases. They got $1.6 trillion in tax increases that are just now starting to hit the economy. But we have yet to get the spending cuts.”
Now, right off the bat, it’s important to note that Democrats didn’t get $1.6 trillion in tax increases. Earlier this year, they got about $600 billion in new revenue — Ryan is only off by $1,000,000,000,000 — which Republicans on the House Budget Committee found so offensive, they included the money in their own budget plan. Maybe Ryan forgot about this?
But even if we put that aside, there’s the matter of Ryan’s assertion that Republicans haven’t already successfully received spending cuts. The problem, of course, is that Ryan seems to have forgotten 2011, when Democrats accepted nearly $1.5 trillion in spending cuts, with no accompanying revenue, as part of the GOP’s debt-ceiling hostage strategy.
At the time, Ryan boasted about all the spending cuts he and his party had won by threatening to hurt Americans on purpose. Less than two years later, the far-right Wisconsinite appears to have forgotten about the policy altogether. How is that possible?
It’s not just today, either. Ryan keeps reinforcing suspicions that his memory is alarmingly bad.
Ryan doesn’t remember that he used to refer to his own plan to end Medicare as “vouchers.”
Ryan doesn’t remember taking credit for the sequestration policy he later condemned.
Ryan doesn’t remember learning about Democratic alternatives to the sequester.
Ryan doesn’t remember what happened with the 2011 “super committee.”
Ryan doesn’t remember Bill Clinton’s tax increases.
Ryan doesn’t remember the times he condemned social-insurance programs as “taker” programs.
Ryan doesn’t remember all of the times he appealed to the Obama administration for stimulus funds for his congressional district.
Ryan doesn’t remember his marathon times.
Ryan doesn’t remember how much he was inspired by Ayn Rand.
Ryan doesn’t remember his own speeches.
Everyone can be forgetful once in a while, but the Republican Budget Committee chairman seems to forget rather important details and developments so often, it’s rather unsettling.
The alternative, of course, is that Ryan’s memory is fine and he shamelessly lies when it suits his purposes, but why be uncharitable? Let’s instead just assume that the poor congressman suffers from a terrible memory.
Maybe it’s some weird political version of Changnesia?
By: Steve Benen, The Maddow Blog, March 19, 2013
“After The Flimflam”: Little By little, Washington’s Fog Of Fiscal Austerity Seems To Be Lifting
It has been a big week for budget documents. In fact, members of Congress have presented not one but two full-fledged, serious proposals for spending and taxes over the next decade.
Before I get to that, however, let me talk briefly about the third proposal presented this week — the one that isn’t serious, that’s essentially a cruel joke.
Way back in 2010, when everybody in Washington seemed determined to anoint Representative Paul Ryan as the ultimate Serious, Honest Conservative, I pronounced him a flimflam man. Even then, his proposals were obviously fraudulent: huge cuts in aid to the poor, but even bigger tax cuts for the rich, with all the assertions of fiscal responsibility resting on claims that he would raise trillions of dollars by closing tax loopholes (which he refused to specify) and cutting discretionary spending (in ways he refused to specify).
Since then, his budgets have gotten even flimflammier. For example, at this point, Mr. Ryan is claiming that he can slash the top tax rate from 39.6 percent to 25 percent, yet somehow raise 19.1 percent of G.D.P. in revenues — a number we haven’t come close to seeing since the dot-com bubble burst a dozen years ago.
The good news is that Mr. Ryan’s thoroughly unconvincing policy-wonk act seems, finally, to have worn out its welcome. In 2011, his budget was initially treated with worshipful respect, which faded only slightly as critics pointed out the document’s many absurdities. This time around, quite a few pundits and reporters have greeted his release with the derision it deserves.
And, with that, let’s turn to the serious proposals.
Unless you’re a very careful news reader, you’ve probably heard about only one of these proposals, the one released by Senate Democrats. And let’s be clear: By comparison with the Ryan plan, and for that matter with a lot of what passes for wisdom in our nation’s capital, this is a very reasonable plan indeed.
As many observers have pointed out, the Senate Democratic plan is conservative with a small “c”: It avoids any drastic policy changes. In particular, it steers away from draconian austerity, which is simply not needed given ultralow U.S. borrowing costs and relatively benign medium-term fiscal projections.
True, the Senate plan calls for further deficit reduction, through a mix of modest tax increases and spending cuts. (Incidentally, the tax increases still fall well short of those called for in the Bowles-Simpson plan, which Washington, for some reason, treats as something close to holy scripture.) But it avoids large short-run spending cuts, which would hobble our recovery at a time when unemployment is still disastrously high, and it even includes a modest amount of stimulus spending.
So we could definitely do worse than the Senate Democratic plan, and we probably will. It is, however, an extremely cautious proposal, one that doesn’t follow through on its own analysis. After all, if sharp spending cuts are a bad thing in a depressed economy — which they are — then the plan really should be calling for substantial though temporary spending increases. It doesn’t.
But there’s a plan that does: the proposal from the Congressional Progressive Caucus, titled “Back to Work,” which calls for substantial new spending now, temporarily widening the deficit, offset by major deficit reduction later in the next decade, largely though not entirely through higher taxes on the wealthy, corporations and pollution.
I’ve seen some people describe the caucus proposal as a “Ryan plan of the left,” but that’s unfair. There are no Ryan-style magic asterisks, trillion-dollar savings that are assumed to come from unspecified sources; this is an honest proposal. And “Back to Work” rests on solid macroeconomic analysis, not the fantasy “expansionary austerity” economics — the claim that slashing spending in a depressed economy somehow promotes job growth rather than deepening the depression — that Mr. Ryan continues to espouse despite the doctrine’s total failure in Europe.
No, the only thing the progressive caucus and Mr. Ryan share is audacity. And it’s refreshing to see someone break with the usual Washington notion that political “courage” means proposing that we hurt the poor while sparing the rich. No doubt the caucus plan is too audacious to have any chance of becoming law; but the same can be said of the Ryan plan.
So where is this all going? Realistically, we aren’t likely to get a Grand Bargain any time soon. Nonetheless, my sense is that there is some real movement here, and it’s in a direction conservatives won’t like.
As I said, Mr. Ryan’s efforts are finally starting to get the derision they deserve, while progressives seem, at long last, to be finding their voice. Little by little, Washington’s fog of fiscal flimflam seems to be lifting.
By: Paul Krugman, Op-Ed Columnist, The New York Times, March 14, 2013
“Explain That Budget, Please”: Let’s Have Less Sanctimonious Talk About Your Principles And Vision Mr. Ryan
Today’s opening meditation, coinciding with the beginning of that annual speechapaloosa of the Right, CPAC, is from a belligerant remark made by Paul Ryan in an interview with National Review‘s Andrew Stiles, responding to incredulity that he’s back with more or less the same old budget for the third time:
Even some conservatives have questioned the idea of refighting old battles, as opposed to confronting the new reality with new solutions. But Ryan is sticking to his guns. “So just because the election didn’t go our way, that means we’re supposed to change our principles? We’re supposed to just go along to get along? We reject that view,” he tells National Review Online in an interview at his Capitol Hill office. “A budget is supposed to be a display of your vision,” he adds. “Our vision is a world without Obamacare.”
Ryan points out that Obama was not the only one who was returned to power in 2012; House Republicans maintained their majority. “We’re here, and we won our elections based on limited government, economic freedom, and we should not shy away from espousing those views,” he says.
If you’re like me, you’ve heard those words expressed by conservative ideologues so many times you barely register their content anymore: conservative principles, conservative principles, limited government, freedom, bark bark woof woof. Ryan may rely for his reputation in D.C. on a perception that he is some sort of genius-wonk, but the reason “the base” went nuts with joy when Mitt Romney lifted him to the national ticket last year is that right-wing activists believe he’s found a way to reflect their “conservative principles” in a blizzard of numbers.
But if you get out of the trance-state of believing everything Ryan says, and that his fans say about him, do his budgets actually reflect, or disguise, his “principles?”
Let me once again quote a key paragraph of Ryan’s speech last November at the Jack Kemp Foundation dinner wherein he discussed his “vision,” which is a world not only without Obamacare, but without any real public safety net:
Not every problem disappears through the workings of the free market alone. Americans are a compassionate people. And there’s a consensus in this country about our obligations to the most vulnerable. Those obligations are beyond dispute. The real debate is how best we can meet them. It’s whether they are better met by private groups or by government – by voluntary action or by government action.
Think about this approach for a minute. Ryan begins from the premise that the free market will if left alone solve most social and economic problems; you don’t even get into the discussion of a public role until we’re talking about “the most vulnerable.” And once we are there, the conservative side of the argument is to press for “voluntary action” by “private groups”–i.e., public abandonment, perhaps with a tax credit and hearty good wishes, but abandonment all the same.
Is that what you get when you peel back all the numbers and look for Ryan’s “principles?” I guess so, since the numbers themselves are actually pretty opaque. Why won’t Ryan specify the impact his spending assumptions would have on non-defense discretionary spending? Why won’t he address what happens to the Medicare “premium support” payment if all the market magic he’s assuming does not radically reduce health care inflation? If his “vision” is that federal support for and regulation of the program we now call Medicaid is to whither away, why not say so? Why go through the subterfuge of a “block grant” if the idea is that states would eventually liberate the poor from dependence on this program as they compete to cut costs and reduce eligibility?
And why, in the third iteration of his budget, why does Ryan remain unwilling to specify the content of that vast magic asterisk he identifies as “tax reform?”
Sure, all these evasions can be justified on Machiavellian grounds, but I thought we were talking about a bold expression of “conservative principle,” a “vision” here, not some mendacious effort to sneak “principle” through the bedroom window!
But this should come as no surprise after a 2012 campaign in which Ryan outdid Romney in posing as the maximum champion of Medicare because he opposed reductions in provider payments even though he included those same reductions in his own budget, and is doing so again today. What “principles” did that Medagoguery reflect? What “vision” are we supposed to glimpse? A world in which wealthier people over 55–which also happen to be the most pro-Republican group of people in the electorate–are insulated from any budget cuts while mothers with children under the poverty line are asked to make “sacrifices?” Spell it out, Paul Ryan!
It’s not just Ryan, of course. Republican pols generally are reluctant to tell us how they envision the country’s future. This is why when they occasionally let the mask slip and attack the New Deal or “government schools” or the very idea of income taxes or popular election of senators or any limitation on property rights or any concept of reproductive rights or any “entitlement” to public resources among those people–they are greeted with a feral roar of recognition and joy from the activist base for telling it like it is.
That is precisely what Paul Ryan won’t do. So love him or hate it, but let’s have less sanctimonious talk from him and his conservative fans about his “principles” and “vision.” He’s hiding both.
By: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, March 14, 2013
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