Obama And The Art Of Rational Choices
If you keep trying something and it doesn’t work and you are a rational person, you change course. President Obama is a rational person. His rip-roaring budget speechwas a rational response to the failures of the past eight months. Republicans accused him of “class warfare” because he said the rich should pay more in taxes. When Republicans start saying “class warfare,” it almost always means that a Democrat is doing something right.
Obama’s aides insist that the president had little choice until now but to try to conciliate with the Republicans because they held in their hands the power to cause enormous damage. Obama made the budget deal early this year, they say, because he thought it would be bad for the economy to start off the new Congress with a government shutdown. And he had to make a debt-ceiling deal because the country couldn’t afford default. Now, they say, he has the freedom to bargain hard, and that’s what he doing.
There is something to this, although it doesn’t take into account other moments when the president engaged in a strategy of making preemptive concessions, giving away stuff before he even negotiated. (I’d argue that this tendency goes all the way back to the stimulus package.) But for now, it’s simply a relief for many — especially for the people who support the president — to see him coming out tough and casting himself as someone with a set of principles. And it was a political imperative, too. His image as a strong leader was faltering, and he was starting to lose support within his own party. He can’t win in 2012 (or govern very effectively before the election) if he looks weak and if his own party is tepid about him. On Monday, he began to solve both problems.
And as Ezra Klein and Greg Sargent point out, Obama may get more done by starting from a position of strength — by stating flatly and clearly what he’s seeking — instead of beginning with concessions and then having to concede even more. In the recent past, he allowed Republicans to control the terms of the debate. This time, he’s trying to set them. That’s usually a better way to get something closer to what you actually want. The Republican cries about “class warfare” reflect their awareness that if Obama can get them into an argument over why they don’t want to raise taxes on the wealthy, the GOP starts out behind.
Obama will get grief in some quarters over two decisions for which I think he deserves credit. The first was his giving up, for now at least, on the idea of raising the age at which Americans are eligible for Medicare to 67 from 65. The original rationale was that Americans in the age category who could not get private coverage would pick it up through the Affordable Care Act and its subsidies.
Put aside that (1.) it’s very hard for anyone to get affordable health insurance coverage once they pass 55 or 60, and (2.) we shouldn’t be doing anything that risks increasing the number of uninsured. The fact is, we don’t even know yet if the Affordable Care Act will survive long enough to take effect in 2014. We don’t know what the courts will do. And we don’t know if the president will be reelected. A Republican president with a Republican Congress will certainly try to repeal the law.
If the new health system takes effect, and if it can be strengthened with time, it may well make sense to move the younger and more affluent among the elderly to the new plan. (And who knows? Someday we may have a comprehensive national insurance plan.) In the meantime, let’s keep people in that category covered by keeping them in Medicare. There will be plenty of time to revisit the issue of health-care costs. It’s an issue we’ll be revisiting for years, maybe decades, anyway.
Obama is also getting hit for using the end of the wars in Afghanistan and Iraq to count up $1.1 trillion in savings. You can argue about how the math works, but I like the fact that this makes clear that there are big costs to continuing our interventions. It challenges those who say we should draw down our troops more slowly to come up with ways of paying for the wars. We should have passed a temporary war tax long ago. Obama is once again making clear that the days of putting wars on a credit card are over.
By: E. J. Dionne, Opinion Writer, The Washington Post, September 20, 2011
Good News!: If Top Tax Rates Return To Reagan Era, Bill O’Reilly Might Quit
Fox News’ Bill O’Reilly boasted the other day that he enjoys “more power than anybody other than the president.”
Apparently, though, this rather extraordinary degree of influence over national affairs isn’t quite enough for the conservative media personality. In fact, O’Reilly is so concerned about his potential tax burden under the “Buffett Rule,” he told his television audience last night he might just quit working altogether.
“I must tell you I want the feds to get more revenue. I don’t want to starve them as some people do. We need a robust military, a good transportation system and protections all over the place.
“But if you tax achievement, some of the achievers are going to pack it in. Again, let’s take me. My corporations employ scores of people. They depend on me to do what I do so they can make a nice salary. If Barack Obama begins taxing me more than 50 percent, which is very possible, I don’t know how much longer I’m going to do this. I like my job but there comes a point when taxation becomes oppressive. Is the country really entitled to half a person’s income?”
In case anyone’s interested in the relevant details, let’s clarify a few things.
First, we don’t know if President Obama is eyeing a top rate of 50%, and even if he did, the likelihood of congressional passage would be roughly zero.
Second, a top rate of 50% does not mean O’Reilly would lose “half” his income. I know this can seem a little complicated, but that’s just not how marginal tax rates work.
And third, a 50% top rate for millionaires and billionaires would be a departure from the recent past, but to describe it as “oppressive” is to forget much of the 20th century.
In Ronald Reagan’s first term, for example, the top rate was — you guessed it — 50%. Did Reagan’s “oppressive” tax rates prevent robust economic growth? Did “the achievers” decide to “pack it in”? No and no.
For nearly all of Dwight Eisenhower’s presidency, the top rate was 91%. That’s not a typo. Did this Republican president’s “oppressive” tax policy prevent the U.S. economy from growing in the 1950s? Apparently not.
That said, if O’Reilly is contemplating retirement to avoid helping America pay its bills, I’m not inclined to discourage him.
By: Steve Benen, Contributing Writer, Washington Monthly Political Animal, September 20, 2011
Coddled Long Enough: The “Buffett Rule” Vs “Class Warfare”
Over the weekend, the White House leaked word that President Obama will push a new debt-reduction idea: the “Buffett Rule.” Named after Warren Buffett, the chairman and chief executive of Berkshire Hathaway, who’s been urging policymakers to raise taxes on the very wealthy. As Buffett recently explained, millionaires and billionaires “have been coddled long enough.”
We don’t yet know the details of the proposal — most notably, what the new millionaires’ minimum tax rate would be — but Republicans are already responding with predictable disgust.
Here, for example, was House Budget Committee Chairman Paul Ryan (R-Wis.) yesterday on Fox News, making the case for coddling millionaires and billionaires for a while longer. See if you can pick up on the subtlety of his talking points.
“Class warfare, Chris, may make for really good politics but it makes a rotten economics. We don’t need a system that seeks to divide people. […]
“[I]t looks like the president wants to move down the class warfare path. Class warfare will simply divide this country more. It will attack job creators, divide people and it doesn’t grow the economy. […]
“[I]f we are just going to do class warfare and trying to get tax increases out of this, and I don’t think much will come of it…. He’s in a political class warfare mode and campaign mode.”
So, I guess I’ll put him down as a “maybe” on the Buffett Rule?
By any reasonable measure, Ryan’s arguments aren’t just wrong, they’re borderline offensive.
For a generation, Republican policymakers have rigged national tax policy to reward the wealthy, and then reward them some more. We’ve seen the class gap reach Gilded Era levels, only to hear GOP officials again demand that working families “sacrifice” while lavishing more breaks on the very wealthy.
Remind me, who’s engaged in “class warfare” and “dividing people”?
Also note the larger policy context here. President Obama wants the richest of the rich to pay a little more, but keep tax breaks in place for the middle class. Paul Ryan and his cohorts want the polar opposite — more breaks for the very wealthy and higher taxes for the middle class.
Let’s also not forget that one of the GOP’s more common tax-policy arguments is that nearly half the country doesn’t have any federal income tax burden — and they see that as a problem that needs fixing. As a practical matter, the Republican argument on this is practically the definition of “class warfare.”
I realize much of the political establishment has come to look at Paul Ryan as a wise wonk who deserves to be taken seriously, but it really doesn’t take much to realize how spectacularly wrong the far-right Wisconsinite really is.
By: Steve Benen, Washington Monthly Political Animal, September 19, 2011
Recovering The Constitution From Conservatives
Tea Party types and other conservatives talk about how they’d like their country back.
I’d like my Constitution back.
The rise of these self-proclaimed constitutional conservatives is an ominous development that has received too little notice — and too little push-back.
Until now. Under the banner of “Constitutional Progressives,” a coalition of liberal groups has begun making an important, two-part argument: first, that a progressive government agenda is consistent with constitutional values; and second, that the constitutional conservative approach represents a dangerous retrenchment of the government’s role.
This bid to “rebut the constitutional fairy tales being peddled by the Tea Party,” as Douglas Kendall of the Constitutional Accountability Center put it, could not be more timely, with the dizzying rise of Texas Gov. Rick Perry (R).
The constitutional conservative critique, as articulated by Perry, Rep. Michele Bachmann (R-Minn.) and others, goes far beyond the familiar laments about activist judges. It is, at bottom, an argument against the 20th century — specifically against the notion that the Constitution envisions and empowers a muscular federal government able to ensure that its citizens have clean air, healthy food and safe workplaces.
To grasp the radical nature of the constitutional conservative approach, consider the record of every Republican president since the New Deal.
Richard Nixon ran on the pledge of appointing “strict constructionist” judges, but he created the Environmental Protection Agency, telling Congress that “our national government today is not structured to make a coordinated attack on the pollutants which debase the air we breathe, the water we drink and the land that grows our food.” Nixon didn’t doubt — as do the modern constitutional conservatives — that environmental regulation was an appropriate and constitutional role for the federal government.
Likewise, George W. Bush inveighed against judges “legislating from the bench.” Yet he presided over the largest expansion of Medicare — the addition of a prescription drug benefit — in the history of the program and oversaw a sweeping new role for the federal government in assuring quality education by local schools. Bush didn’t question — as do the constitutional conservatives — whether these were permissible activities for the federal government.
The constitutional conservative vision is dramatically different. It sees a hobbled federal government limited to a few basic activities, such as national defense and immigration. The 10th Amendment, reserving to states the powers not granted to the federal government, would be put on steroids. The commerce clause, giving the federal government the authority to regulate commerce among the states, would be drastically diminished.
Certainly, there’s a legitimate debate about the proper role of the federal government and the scope of federal vs. state power. But that is a different argument than the one long thought settled during the New Deal: that the Constitution grants the federal government power to regulate a broad array of activities in the national interest.
The danger posed by the constitutional conservative approach is to attempt to lash together debates about what the federal government should do and what the Constitution allows it to do.
A white paper by the liberal Center for American Progress spells out the potential consequences of the constitutional conservative vision. Programs such as Social Security, Medicare and Medicaid would be deemed to exceed the federal government’s enumerated powers.
The federal government would cease to have any role in education, eliminating funding for public schools and college financial aid, and in combating poverty, ending food stamps and unemployment insurance. Laws on everything from child labor to food safety would be overturned.
None of this is likely to happen, of course, for the simple reason that most Americans don’t want it to. When Perry was pushed during a debate about the implications of his views on the constitutionality of Social Security, for example, he waved off the question as an interesting intellectual exercise.
But the emergence of the constitutional conservative argument has real-world consequences — even without a constitutional conservative in the White House. It shifts the legal debate significantly rightward, energizing and empowering conservative judges and justices. And it changes the nature of the political debate as well by narrowing the turf on which, at least in the view of some lawmakers, the federal government is deemed authorized to operate.
“This is a way to weaponize the Constitution to prevent a real debate about how the government can solve national problems,” Kendall told me.
Strong words, but the constitutional conservative vision is too extreme to continue to ignore it in the hope that it will fade on its own.
By Ruth Marcus, Opinion Writer, The Washington Post, September 18, 2011
A Hack On The Stomp: Lindsey Graham Forgets What “Everything” Means
Lindsey Graham sure does sound confident about 2012.
South Carolina Republican Sen. Lindsey Graham says the 2012 presidential election is the GOP’s to lose.
“President Obama has done everything he knows how to do to beat himself,” Graham said on CNN’s “State of the Union.” “The reason people have little [confidence] in President Obama’s policies is they’re just not working. Everything is worse.”
Now, as I recall, Graham’s record of election predictions isn’t exactly sterling. A week before the 2008 election, Graham was in North Carolina touting John McCain’s chances. “[McCain] fits North Carolina like a glove…. I’ll beat Michael Phelps in swimming before Barack Obama wins North Carolina.”
A week later, Obama won North Carolina. Michael Phelps was unavailable for comment.
The senator’s track record notwithstanding, I still think Republicans are making a mistake with this “everything is worse” nonsense. Sure, Graham’s a hack, more concerned with cheap shots than telling the public the truth, but he should nevertheless realize he’s making the wrong argument.
“Everything is worse”? That might make more sense were it not for the fact that:
* American job creation is better now than when Bush left office.
* American economic growth is better now than when Bush left office.
* Al Qaeda is dramatically weaker now than when Bush left office.
* The American automotive industry is vastly stronger now than when Bush left office.
* The struggle for equality of the LGBT community is vastly better now than when Bush left office.
* The U.S. health care system is better and more accessible than when Bush left office.
* The federal budget deficit is better now than when Bush left office.
* The major Wall Street indexes and corporate profits are better now than when Bush left office.
* International respect for the United States is better now than when Bush left office.
Want to try that again, Lindsey?
Whether Graham realizes it or not, he and his cohorts are inadvertently making President Obama’s pitch to voters significantly easier. By that I mean, they’re creating a standard for the debate: either conditions have improved since Obama took office or they haven’t. What the right still doesn’t understand is that this is the best of all possible standards for Democrats.
If the message to voters is, “The status quo stinks,” that’s a tough message for Dems to argue against, because as much progress as there’s been since late 2008, conditions are still awful for much of the country. We were in a very deep hole, and we’re not done climbing out.
But if the pitch is, “Obama made it worse,” that’s a much easier message for Dems to argue against because it’s demonstrably ridiculous.
Republicans, who are usually better at messaging than this, are setting up the wrong question. Instead of asking, “Did Obama make things good?” they’re urging voters to ask, “Did Obama make things worse?” Democrats much prefer the latter for a reason.
If all Obama has to do is prove he didn’t make things worse, he stands a much better chance.
By: Steve Benen, Washington Monthly Political Animal, September 18, 2011