Morally Inept: The New GOP Resentment Of The Poor
In a decade of frenzied tax-cutting for the rich, the Republican Party just happened to lower tax rates for the poor, as well. Now several of the party’s most prominent presidential candidates and lawmakers want to correct that oversight and raise taxes on the poor and the working class, while protecting the rich, of course.
These Republican leaders, who think nothing of widening tax loopholes for corporations and multimillion-dollar estates, are offended by the idea that people making less than $40,000 might benefit from the progressive tax code. They are infuriated by the earned income tax credit (the pride of Ronald Reagan), which has become the biggest and most effective antipoverty program by giving working families thousands of dollars a year in tax refunds. They scoff at continuing President Obama’s payroll tax cut, which is tilted toward low- and middle-income workers and expires in December.
Until fairly recently, Republicans, at least, have been fairly consistent in their position that tax cuts should benefit everyone. Though the Bush tax cuts were primarily for the rich, they did lower rates for almost all taxpayers, providing a veneer of egalitarianism. Then the recession pushed down incomes severely, many below the minimum income tax level, and the stimulus act lowered that level further with new tax cuts. The number of families not paying income tax has risen from about 30 percent before the recession to about half, and, suddenly, Republicans have a new tool to stoke class resentment.
Representative Michele Bachmann noted recently that 47 percent of Americans do not pay federal income tax; all of them, she said, should pay something because they benefit from parks, roads and national security. (Interesting that she acknowledged government has a purpose.) Gov. Rick Perry, in the announcement of his candidacy, said he was dismayed at the “injustice” that nearly half of Americans do not pay income tax. Jon Huntsman Jr., up to now the most reasonable in the Republican presidential field, said not enough Americans pay tax.
Representative Eric Cantor, the House majority leader, and several senators have made similar arguments, variations of the idea expressed earlier by Senator Dan Coats of Indiana that “everyone needs to have some skin in the game.”
This is factually wrong, economically wrong and morally wrong. First, the facts: a vast majority of Americans have skin in the tax game. Even if they earn too little to qualify for the income tax, they pay payroll taxes (which Republicans want to raise), gasoline excise taxes and state and local taxes. Only 14 percent of households pay neither income nor payroll taxes, according to the Tax Policy Center at the Brookings Institution. The poorest fifth paid an average of 16.3 percent of income in taxes in 2010.
Economically, reducing the earned income tax credit and the child tax credit — which would be required if everyone paid income taxes — makes no sense at a time of high unemployment. The credits, which only go to working people, have always been a strong incentive to work, as even some conservative economists say, and have increased the labor force while reducing the welfare rolls.
The moral argument would have been obvious before this polarized year. Nearly 90 percent of the families that paid no income tax make less than $40,000, most much less. The real problem is that so many Americans are struggling on such a small income, not whether they pay taxes. The two tax credits lifted 7.2 million people out of poverty in 2009, including four million children. At a time when high-income households are paying their lowest share of federal taxes in decades, when corporations frequently avoid paying any tax, it is clear who should bear a larger burden and who should not.
By: Editorial, The New York Times, August 30, 2011
Hurricane Irene And The Benefits Of Big Government
Don’t expect anybody to throw a tea party, but Big Government finally got one right.
On Monday, six years to the day after Hurricane Katrina destroyed New Orleans and obliterated the notion of a competent federal government, Federal Emergency Management Agency (FEMA) Administrator Craig Fugate offered an anecdote that showed just how different things were with Hurricane Irene.
On the podium in the White House briefing room, he recalled the satellite images of Irene’s path. “Do you remember seeing the satellite, how big that storm was and how close it was to the state of Florida?” he asked. Fugate, the former emergency management chief in Florida, said that a decade or so ago, “Florida would have had to evacuate based upon this track.”
Instead, the National Oceanic and Atmospheric Administration’s improved models predicted landfall in North Carolina, and, in fact, “the track was only about 10 miles off of where they actually thought it was going to come ashore.”
This was just one piece of the overall anticipation of Irene and response to the storm that has earned high marks for FEMA and NOAA. Like the killing of Osama bin Laden, it was a rare reminder that the federal government can still do great things, after all other possibilities have been exhausted.
Such successes might provide an antidote to the souring of the public’s confidence in government. By coincidence, a Gallup poll released Monday showed that only 17 percent of Americans have a favorable view of the federal government, a new low.
More likely, however, Americans won’t have long to savor this new competence in government. NOAA has already been hit with budget cuts that will diminish its ability to track storms, and FEMA, like much of the federal government, will lose about a third of its funding over the next decade if Tea Party Republicans have their way.
In the spending compromise for this year worked out between congressional Republicans and the White House, NOAA’s budget was cut by about $140 million (House Republicans had sought much larger cuts) and money for new satellites was cut by more than $500 million from President Obama’s request. NOAA Administrator Jane Lubchenco warned in May, “we are likely looking at a period of time a few years down the road where we will not be able to do the severe storm warnings . . . that people have come to expect today.”
Congressional Democrats and the White House were somewhat more successful this year in resisting cuts to FEMA that Republicans had proposed. But under the House Republicans’ plan to freeze discretionary spending at 2008 levels over a decade, FEMA cuts are inevitable. According to an analysis by the Center for American Progress’s Scott Lilly that takes into account inflation and population, this amounts to a 31 percent cut in real per capita spending on discretionary functions such as FEMA.
Tea Partyers who denounce Big Government seem to have an abstract notion that government spending means welfare programs and bloated bureaucracies. Almost certainly they aren’t thinking about hurricane tracking and pre-positioning of FEMA supplies. But if they succeed in paring the government, some of these Tea Partyers (particularly those on the coasts or on the tornadic plains) may be surprised to discover that they have turned a Hurricane Irene government back into a Katrina government.
The Irene government would seem to have its benefits. Before the storm struck, 18 FEMA teams deployed from Florida to Maine, repositioning as the emphasis moved to New England. Food, water, generators and tarps were in place along the storm’s path. In Vermont, when the storm forced evacuation of the state emergency operations center, the workers relocated to a FEMA facility. In North Carolina, FEMA provided in-the-dark local authorities with generator power. And everywhere, FEMA, given new authority by Congress after Katrina, didn’t have to wait for states to request help.
“We have to go fast; we have to base it upon the potential impacts,” Fugate said Monday, describing the Irene response. “That’s why we look at these forecasts we get from the hurricane center, and we make the decisions based upon what the potential impacts could be. If you wait till you know how bad it is, it becomes harder to change the outcome.”
That’s one model. The other model is to have a weak federal government, without the funds to forecast storms or to launch a robust emergency response in time to do any good.
You might call that the Tea Party model.
By: Dana Milbank, Opinion Writer, The Washington Post, August 29, 2011
The GOP Assault On Voting Rights: A Poll Tax By Another Name
AS we celebrate the Martin Luther King Jr. Memorial, we reflect on the life and legacy of this great man. But recent legislation on voting reminds us that there is still work to do. Since January, a majority of state legislatures have passed or considered election-law changes that, taken together, constitute the most concerted effort to restrict the right to vote since before the Voting Rights Act of 1965.
Growing up as the son of an Alabama sharecropper, I experienced Jim Crow firsthand. It was enforced by the slander of “separate but equal,” willful blindness to acts of racially motivated violence and the threat of economic retaliation. The pernicious effect of those strategies was to institutionalize second-class citizenship and restrict political participation to the majority alone.
We have come a long way since the 1960s. When the Voting Rights Act was passed, there were only 300 elected African-American officials in the United States; today there are more than 9,000, including 43 members of Congress. The 1993 National Voter Registration Act — also known as the Motor Voter Act — made it easier to register to vote, while the 2002 Help America Vote Act responded to the irregularities of the 2000 presidential race with improved election standards.
Despite decades of progress, this year’s Republican-backed wave of voting restrictions has demonstrated that the fundamental right to vote is still subject to partisan manipulation. The most common new requirement, that citizens obtain and display unexpired government-issued photo identification before entering the voting booth, was advanced in 35 states and passed by Republican legislatures in Alabama, Minnesota, Missouri and nine other states — despite the fact that as many as 25 percent of African-Americans lack acceptable identification.
Having fought for voting rights as a student, I am especially troubled that these laws disproportionately affect young voters. Students at state universities in Wisconsin cannot vote using their current IDs (because the new law requires the cards to have signatures, which those do not). South Carolina prohibits the use of student IDs altogether. Texas also rejects student IDs, but allows voting by those who have a license to carry a concealed handgun. These schemes are clearly crafted to affect not just how we vote, but who votes.
Conservative proponents have argued for photo ID mandates by claiming that widespread voter impersonation exists in America, despite overwhelming evidence to the contrary. While defending its photo ID law before the Supreme Court, Indiana was unable to cite a single instance of actual voter impersonation at any point in its history. Likewise, in Kansas, there were far more reports of U.F.O. sightings than allegations of voter fraud in the past decade. These theories of systematic fraud are really unfounded fears being exploited to threaten the franchise.
In Georgia, Florida, Ohio and other states, legislatures have significantly reduced opportunities to cast ballots before Election Day — an option that was disproportionately used by African-American voters in 2008. In this case the justification is often fiscal: Republicans in North Carolina attempted to eliminate early voting, claiming it would save money. Fortunately, the effort failed after the State Election Board demonstrated that cuts to early voting would actually be more expensive because new election precincts and additional voting machines would be required to handle the surge of voters on Election Day.
Voters in other states weren’t so lucky. Florida has cut its early voting period by half, from 96 mandated hours over 14 days to a minimum of 48 hours over just eight days, and has severely restricted voter registration drives, prompting the venerable League of Women Voters to cease registering voters in the state altogether. Again, this affects very specific types of voters: according to the nonpartisan Brennan Center for Justice, African-Americans and Latinos were more than twice as likely as white voters to register through a voter registration drive.
These restrictions purportedly apply to all citizens equally. In reality, we know that they will disproportionately burden African Americans and other racial minorities, yet again. They are poll taxes by another name.
The King Memorial reminds us that out of a mountain of despair we may hew a stone of hope. Forty-eight years after the March on Washington, we must continue our work with hope that all citizens will have an unfettered right to vote. Second-class citizenship is not citizenship at all.
We’ve come some distance and have made great progress, but Dr. King’s dream has not been realized in full. New restraints on the right to vote do not merely slow us down. They turn us backward, setting us in the wrong direction on a course where we have already traveled too far and sacrificed too much.
By: Rep John Lewis, Op-Ed Contributor, The New York Times, August 27, 2011
Just Plain Sinful: GOP Hostage Taking Now Extends To Disaster Relief
Hurricane Irene made landfall this morning, hitting North Carolina with sustained winds of 90 miles per hour. Irene was downgraded overnight to a Category 1 hurricane, but it remains a powerful storm capable of doing serious harm.
Obviously, we can all hope the severity of the damage is limited. Regrettably, though, the line on federal disaster aid from congressional Republicans has not changed.
This week, House Majority Leader Eric Cantor (R-Va.) said the GOP approach would break from how U.S. policymakers have operated. Whereas Congress used to provide emergency funds after a disaster, without regard for budget caps or offsets, Republicans have said they will no longer accept such an approach — if Democrats want emergency assistance in the wake of a natural disaster, Republicans will insist on attaching some strings to the relief funds.
In this case, the strings are cuts elsewhere in the budget. Or as Cantor’s spokesperson put it, GOP leaders expect “additional funds for federal disaster relief” to be “offset with spending cuts.”
The Republican position is already drawing fire.
“It is sinful to require us to cut somewhere … in order to provide emergency disaster assistance for American citizens,” Rep. Cedric Richmond (D-La.) told The Huffington Post on Friday.
The Louisiana Democrat pointed out that this weekend is the sixth anniversary of Hurricane Katrina, which devastated his district and cost the federal government more than $100 billion. That recovery effort would have been delayed “by years” if Congress had required the same kind of spending cuts to offset aid, he said.
“I have been one who has been preparing for the hurricane, trying to give people some comfort. One thing they need to know is the federal government can come to their aid,” Richmond said. “I don’t think we’re in a position, given the rules set up by the majority, that we’re going to be able to come to their aid quickly.”
Perhaps realizing the potential for a political nightmare — Republicans are already unpopular; just wait until they hold hostage relief funds for communities hit by a hurricane — GOP leaders weren’t eager to talk about their position yesterday.
But they didn’t disavow it, either. Cantor’s office rejected questions about “hypothetical federal aid caused by hypothetical damage,” despite the fact that the Majority Leader and his spokesperson were more than willing to discuss the position 24 hours earlier.
House Speaker John Boehner’s (R-Ohio) office was also cagey, saying policymakers will “discuss costs when and if they occur.”
Neither Republican leader offered the correct response, which is, “Of course we’ll do whatever it takes to help the affected communities.”
With any luck, this will be a moot point. If the damage isn’t severe, Congress won’t have to approve emergency relief. At this point, we just don’t know.
But in the event of extensive damage, there’s a real possibility that the first question from congressional Republicans won’t be, “How can we help?” but rather, “What will Democrats give us in exchange for disaster aid?”
By: Steve Benen, Contributing Writer, Washington Monthly Political Animal, August 27, 2011
Religion, Patriotism And Freedom: Ayn Rand Vs. America
Ayn Rand has a large and growing influence on American politics. Speaking at an event in her honor, Congressman Paul Ryan said, “The reason I got involved in public service, by and large, if I had to credit one thinker, one person, it would be Ayn Rand.”
A few weeks ago, Maureen Fiedler, the producer of the weekly radio show, Interfaith Voices, asked me to participate in a debate with Onkar Ghate, a senior fellow at the Ayn Rand Institute. I eagerly accepted. I wanted to hear how a follower of Rand would defend proposals to cut Medicare, Medicaid, and food stamps while exempting the wealthy from paying their fair share.
In one sense there was agreement. Maureen, a Sister of Loretto, argued that Republican budget proposals turned their back on Christ’s admonition to care for “the least among us,” the hungry, the sick, the homeless. Ghate did not dispute that. Rand, he said, was an atheist who did not believe in government efforts to help those in need.
Ghate countered Sister Maureen’s religious position with a moral argument. He maintained that redistribution of wealth was unfair to the rich and weakened the ambition of the rest. I wasn’t surprised by this position, since I’d heard it repeatedly during the fight on welfare reform.
What I did find startling was Ghate’s insistence that just as there should be a separation of church and state, so there should be a separation of economics and state. That notion really got me thinking.
I’ve always understood that one’s loyalty to God should take precedence over one’s patriotic duty. Churches are exempt from taxation, and conscientious objectors aren’t required to serve in war. Our high regard for the First Amendment shows the preeminence of faith in the American consciousness.
But to place economics on the same level as religious freedom seemed to me almost blasphemous. Are we really to believe that the freedom to make money should stand on the same level of religious liberty? Are the words of Milton Friedman equal to the Sermon on the Mount? I don’t think so. But maybe in the eyes of Ayn Rand and Paul Ryan, they are.
Ayn Rand’s biography goes a long way toward explaining her animus to government. Her first-hand experience of communism showed her how the state can crush people, kill dissent, and exile lovers of freedom to the gulag. Horrified by what government power could do, she was determined to shrink it to the point of impotence.
America was the perfect place for Rand’s single-minded celebration of the individual. After all, this was the nation that inspired intrepid emigrants to leave behind country, family, and friends with little more than the shirt on their back to make a new life. Here they wouldn’t be judged by what they were before or who their parents were but by what they could made of themselves.
America was a beacon of freedom from its earliest days. But the freedom to earn one’s living is not the same as the freedom to emasculate government. It’s a mistake to enshrine individual liberty without acknowledging the role that a good government plays in preserving and promoting it. Look at places like Haiti, Somalia, and the Congo to see what happens when governments aren’t around much.
When government is marginalized, it’s not just individual freedom that suffers; the economy suffers too. A vibrant capitalism requires a legal system: contracts must be honored, fraud punished. Markets have to work, and for that we need a strong infrastructure of roads, rail, energy, and water and sewage systems.
Good government sets us free to spend our days in fruitful endeavors, not evasive action motivated by fear and distrust. Government regulations reassure us that speeding drivers will be arrested, that the financial products we buy won’t cheat us, and that it will be safer to put our money in banks than under our pillows. If we can’t trust our food to be healthy, our drugs to be safe, or our planes to fly without crashing, we’ll waste a lot of productive time.
During the debate, I also raised the point that the separation of economics and state implies that businesses and the people who run them are under no obligation to be patriotic.
In the 19th century, the Rockefellers, Carnegies, Fricks, and J.P. Morgans wanted America to do well because their own fortunes were tied to American prosperity. They made America a great economic power by creating jobs and technological advances right here at home. They knew that their own fortunes were bound up with the well-being of their fellow Americans.
In Ayn Rand’s America, the first obligation of CEOs is to their shareholders, not to citizens. Their business is global, not local. Why should they care if they send jobs overseas? Why should they be concerned if American kids can’t do math or write a sentence? They’ll just outsource the work. Why should they worry that the next generation of Americans is going to have a tough time? Their own kids will do just fine. And in the meantime, they’re doing just fine themselves.
Andy Grove, the former CEO of Intel, sees a problem with this view. He writes, “You could say, as many do, that shipping jobs overseas is no big deal because the high-value work–and much of the profits–remain in the U.S. That may well be so. But what kind of a society are we going to have if it consists of highly paid people doing high-value-added work–and masses of unemployed?”
Don Peck makes a similar point in his new book, Pinched, and in an Atlantic cover story. “Arguably,” he writes, “the most important economic trend in the United States over the past couple of generations has been the ever more distinct sorting of Americans into winners and losers, and the slow hollowing-out of the middle class.”
Besides this economic problem, I also see a moral issue with Ayn Rand’s insistence that all of us, CEOs included, should be totally free of the ties that bind. I especially disagree when it comes to CEOs. As I wrote here a few months ago, the wealthy have a special responsibility. Much will be asked of those to whom much has been given. Participating in government and civic life, serving in war, helping the less fortunate, and–yes–paying a fair share of taxes are inescapable responsibilities for all Americans, especially for those who have realized the American dream that inspires us all.
I doubt there was anything I could have said in the debate that would have induced Onkar Ghate to view the meaning of freedom in a different light. I suppose he might say the same of me. Still, I can’t see how one can be free in a vacuum. Freedom takes work, by each of us, and by our government, to create the place where each of us can prosper. The freedom to sleep under a bridge is no freedom at all. We can only be free when we work together for the well-being of all Americans–including the least among us.
By: Kathleen Kennedy Townsend, The Atlantic, August 23, 2011
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