By: Eugene Robinson, Opinion Writer, The Washington Post, September 19, 2011
Obama’s Tax Plan Is Common Sense, Not Class warfare
“Class warfare!” scream the Republicans, in a voice usually reserved for phrases such as “Run for your lives!”
Spare us the histrionics. The GOP and its upper-crust patrons have been waging an undeclared but devastating war against middle-class, working-class and poor Americans for decades. Now they scream bloody murder at the notion that long-suffering victims might finally hit back.
President Obama’s proposal to boost taxes for the wealthy by $1.5 trillion over the next decade is a good first step toward reforming a system in which billionaire hedge-fund executives are taxed at a lower rate than are their chauffeurs and private chefs.
Republicans whine that, since they oppose raising taxes on the rich — and control the House of Representatives, which can block such legislation — Obama’s proposal should be seen as political, not substantive. This is just a campaign initiative, they say, not a “serious” plan to address the nation’s financial and economic woes.
But that’s pure solipsism: Whatever does not fit the GOP’s worldview is, by definition, illegitimate. By this standard, Obama could propose only measures that are in the Republican Party’s platform — which obviously would defeat the purpose of being elected president as a progressive Democrat in the first place.
Outside of the Republican echo chamber, polls consistently show the American people consider unemployment to be the nation’s most urgent problem, not deficits and debt. Obama was on target with the American Jobs Act he proposed this month; the only question was what took him so long.
Americans do have long-term concerns about debt, however, and by large margins they see an obvious solution: a balanced combination of spending cuts and tax increases. In other words, they want precisely the kind of approach that House Speaker John A. Boehner (R-Ohio) rejected during the debt-ceiling fight — and that he vows to reject again.
Why did Republicans begin squawking about class warfare even before Obama had a chance to announce his proposals? Because by calling on the rich to pay “their fair share” of taxes, the president has hit upon a clear and simple way to illustrate how unequal and unfair our society has become.
Since the beginning of the Reagan years, the share of total income captured by the top 1 percent of earners has doubled while the share taken by the bottom 80 percent has fallen. The rich are getting richer at the expense not only of the poor but of the middle class as well.
Studies demonstrating this trend tend to be dry and, let’s face it, sleep-inducing. But the perverse disparity in tax rates between the super-rich and the rest of us is enough to grab anyone’s attention.
The very wealthy earn much of their income through dividends and capital gains, which are taxed at 15 percent. This low rate would apply specifically to a wildly successful hedge-fund manager who made, say, $50 million last year. By contrast, an insurance company executive who made $500,000 — just 1 percent of what the hedge-fund manager took home — would pay a top marginal income tax rate of 35 percent. Even a teacher who made just $50,000 — 0.1 percent of the hedge-fund haul — would pay a top marginal rate of 25 percent.
Obama proposes tax legislation that would erase this disparity. He also vows that, unless Congress enacts comprehensive — and fair — tax reform, he will allow the Bush tax cuts for households earning more than $250,000 a year to expire at the end of 2012.
The overall plan that Obama announced Monday would cut deficits by about $4 trillion over the next 10 years — without gutting programs that bolster the middle class and aid the poor. New tax revenue and money saved from ending the wars in Iraq and Afghanistan make up most of the total.
Obama’s proposed savings in Medicare and Medicaid are modest and tailored so that their impact is progressive. The president correctly decided that ensuring Social Security’s long-term solvency should proceed on a separate track. All this should be heartening to those who really want to preserve these vital programs.
The headline from Obama’s plan, though, is the call for wealthy Americans to pay taxes like everybody else. If Republicans believe the current system is fine, Obama said, “they should be called out. They should have to defend that unfairness. . . . They ought to have to answer for it.”
We’ve already heard their answer.
And we’ve heard Obama’s retort: “This is not class warfare. It’s math.”
If Republicans Love States’ Rights So Much, Why Do They Want to Be President?
Whatever their differences, the leading Republican candidates all swear that they love states’ rights. If elected president, Rick Perry vows to “try to make Washington as inconsequential as I can.” Mitt Romney declares his faith in the Constitution, which, he says, declares that the government “that would deal primarily with citizens at the local level would be local and state government, not the federal government.” Michele Bachmann “respect[s] the rights of states to come up with their own answers and their own solutions to compete with one another.” With lots of help from the Tea Party, the Tenth Amendment which, not so long ago was familiar mainly to constitutional lawyers and scholars, may now be as popular as the First or the Second. But, what this resurgence of federalism overlooks is not just the historical consolidation of federal power but also the inanity of attempts to reverse it.
For most of U.S. history, the primacy of federalism was taken for granted. Except during major wars, states exerted far more power over the daily lives of their residents than did any of the three branches of a national government located in a swampy river city on the Mid-Atlantic seaboard that most Americans had never visited. In the nineteenth century, as the historian Gary Gerstle explains, states funded canals, highways, and railroads. They decided which groups could vote and which could not. Some tried to regulate working hours. Others outlawed a variety of private acts—interracial marriage, drinking, and theater-going. In 1837, Illinois even forbade “playing at ball or flying of kites” as public nuisances.
All these policies fell under the legal sanction of “the police power,” which one influential Massachusetts judge in 1851 defined broadly as insuring the “good and welfare of the Commonwealth.” For its part, the Supreme Court, until after World War I, rather consistently ruled that the celebrated protections of the Bill of Rights—from the freedom of speech and the press to the right to a speedy trial—applied only to acts by the federal government and not to those of the states.
But, by the middle of the twentieth century, this arrangement no longer served the needs or desires of most Americans. During the Great Depression, state revenues, based mainly on property taxes, plummeted. The federal government stepped in to provide relief, and citizens everywhere began to count on Washington to keep the economy afloat and their Social Security checks arriving promptly. Then World War II and the cold war bound Americans to a national-security state that financed education for veterans and interstate highways as well as aircraft carriers and nuclear weapons. In the 1960s and ’70s, Congress passed laws to safeguard the civil and voting rights of every citizen, regardless of where he or she might live. Policies to protect the environment and regulate hazards at the workplace further diminished the sway of state governments. The Supreme Court, even with a conservative majority, has done little to reverse these changes.
Yet, states’ rights never lost its appeal to that minority of Americans who are ideologically committed to lambasting the federal state as both overweening and ineffective. (It should come as no surprise that these conservatives were so alarmed at the emergency measures taken by the Bush and Obama administrations to address the financial meltdown of 2008: the formation and rapid growth of the Tea Party was the predictable result.) However, any Republican elected to the White House in 2012 will find it impossible to lead a headlong charge back to the past, and not just because of the difficulty of undoing a half-century of tradition and Supreme Court precedent.
Voters unhappy with the inability of the federal government to restore prosperity may like the sound of “states’ rights.” But how many would trust their governors and state legislators to pay their Medicare and Social Security checks on time and at current or higher levels? How many really want 50 separate immigration policies or 50 different standards for what constitutes clean air and clean water? Or the possibility that state, seeking to lure business away from its neighbors, could cut the minimum wage in half and not requiring employers to pay for overtime?
When you look more broadly at their promises, the GOP hopefuls reveal the emptiness of their own rhetoric. Bachmann, never a paragon of consistency, supports a federal constitutional amendment banning gay marriage, as well as the right of individual states to legalize it. In 2007, before Romney got in trouble for his Massachusetts health care law, he predicted, “that all these states … who follow the path that we pursued will find it’s the best path, and we’ll end up with a nation that’s taken a mandate approach.” Rick Perry favors federal action to stop gay marriage and restrict abortion—and, last month, asked President Obama to speed up aid to stop wildfires from burning up whole sections of his vast state. Like a lot of other Americans, these ambitious conservatives like to rail against Washington in the abstract but cannot imagine how the nation would operate without a strong central government. And the specifics of their smaller hypocrisies are underscored by one giant irony: They’re all running for president.
The U.S. has long ceased to be a country in which most people look to their state instead of to the national government to address and solve their most vital problems. State pride is pretty rare these days, except for residents and alumni who dress in the old-school colors and root hard for a college football or basketball team from a major public university.
Of course, state governments still perform a vital role in education and economic development and can still be “laboratories of democracy,” sites for testing out new policies that aren’t yet ready for national consumption. Progressives who cheered when New York legalized gay marriage and look forward to the day when Vermont begins operating the single-payer health care system it passed this spring can hardly object, at least in principle, when red states pass laws they abhor. But, as an alternative philosophy of governance in a modern nation, states’ rights is very wrong. In fact, it’s ridiculous.
By: Michael Kazin, The New Republic, September 20, 2011
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
How Southern Republicans Aim To Make White Democrats Extinct
State Rep. Stacey Abrams serves as the Georgia House Minority Leader.
Across the state, legislative maps are drawn to split voters along artificial lines to isolate them by race. Legislators see their districts disappear, themselves the target of racial gerrymandering. Citizens rise up in protest and demand the right to elect the candidate of their choice, but the ruling party ignores them. Racial groups are identified and segregated; their leadership eliminated. It is the way of the South. Only this isn’t 1964, the year before the signing of the Voting Rights Act. This is Georgia in 2011.
But this time, the legislators at risk are white men and women who have had the temerity to represent majority African-American districts, and Latino legislators who spoke up for their growing Hispanic population. In crossover districts, where whites and blacks have worked together for decades to build multi-racial voting coalitions, the new district maps devised by the Republican majority have slashed through those ties with speed and precision. If the maps proposed by the GOP in Georgia stand, nearly half of the white Democratic state representatives could be removed from office in one election cycle. Call it the “race card”—in reverse.
Reapportionment is a dangerous business. Once every 10 years, the naked ambition of political parties wars with the dwindling hope of voters that this time their voices will be heard. In the South, the voting lines traditionally aimed for specific targets—racial discrimination that purged minorities, diminishing their numbers and political power. If a legislator had the poor fortune to be of the wrong race, that district would disappear for a decade or more. The voters who relied on you would find themselves isolated and polarized, the victims of racial gerrymandering.
For most of the nation, the battle lines are drawn by partisan leaders who search for the sinuous lines that will connect like-minded voters to one another and disadvantage those who have shown a preference for the other side. That, as they say, is Politics 101.
But for a handful of states, the stakes are higher. Below the Mason-Dixon Line and scattered across the country, a legacy of poll taxes and literacy tests required a special remedy—Section 5 of the Voting Rights Act of 1965. The Voting Rights Act has a simple goal—integrate the voting of minorities into the fabric of our democracy. For any state held to its obligations, no changes can be made to election laws without pre-clearance by the Justice Department. In the last decade, the minority population across the South has increased, and by any measure, the Voting Rights Act has been the engine of racial progress.
In Georgia, the gains made under the Act are undeniable. Districts populated predominately by African-Americans have routinely elected white legislators to speak for them. In enclaves across the state, white voters have punched their ballots to elect African-American and Latino representatives. Crossover districts, where blacks and whites and Latinos co-mingle, have grown in prominence–combining with majority-minority districts to comprise nearly 35 percent of the House of Representatives.
In 2011, Georgia should stand as a model for the South and a beacon for those who believe in the rights of voters. However, based on the maps passed last week by the Republican majority, we are in danger of returning to 1964.
Redistricting is fundamentally about voters, and in Georgia, minority voters comprise fully 42 percent of the population. More importantly, these populations have aligned themselves with majority white constituents to demonstrate political power. Under the proposal, Republicans will pair 20 percent of Democrats and 7 percent of Republicans in the state House and eliminate the sole remaining white Democrat in Congress from the Deep South. The House pairings pit black Democrats against white Democrats in four contests, white against white in another and eliminate multi-racial coalition voting across the state. When the dust settles, between pairings and the creation of GOP-leaning districts, Republicans stand to knock off 10 white Democrats—half the total number. They will pick up seven new seats, for a total of 123 Republican seats, 56 Democratic seats and one Independent. This will give Republicans a constitutional majority in the state of Georgia; in other words, they will be able to pass any piece of legislation without opposition.
Let’s be clear. It is absolutely the prerogative of the majority party to maximize its political gains. No one questions the right of the GOP to draw as many districts as it can legally muster. The issue is not whether the GOP can increase its hold, but how.
The GOP’s newly drawn voting lines in the state of Georgia reveals a pernicious new cynicism in our politics—the use of the Voting Rights Act as a weapon to destroy racial, ethnic, and gender diversity. It is no consolation if individual black legislators benefit in the GOP’s new scheme. The Voting Rights Act was never intended to protect a particular minority. Indeed, the highest goals of the Act, one of modern America’s most progressive pieces of legislation, was to encourage multi-racial cooperation and understanding. Precisely, what we in Georgia have begun to achieve. More alarmingly, this new strategy targeting white legislators is not limited to our state. If effective here, the cradle of the civil rights movement, the strategy is expected to be implemented in mid-term redistricting across the South. Republican lawmakers in Alabama, Louisiana, North and South Carolina, Mississippi, and Virginia are watching closely.
Today, we all decry a national partisanship that seems unhealthy and corrosive. But there is nothing wrong with partisanship, when it is a battle of ideas. The Voting Rights Act is intended to ensure that differing ideas be heard, that no single voice drown out the rest. Sadly, that is not what we see rising in the South. The Voting Rights Act is in danger of not protecting the promise of a new day, but becoming a new tool in the politics of destruction.
By: Stacey Abrams, Georgia House Minority Leader, Published in U. S. News and World Report, September 19, 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