The GOP’s Latest Tax Gimmickry: Soak The Poor
It’s one of the strangest things in our politics: The only “big” ideas Republicans and conservatives seem to offer these days revolve around novel and sometimes bizarre ways of cutting taxes on rich people.
Given all the attention that Herman Cain’s nonsensical and regressive 9-9-9 tax plan has received, the Republican debates should have as their soundtrack that old Beatles song that droned on about the number nine.
Now, Texas Gov. Rick Perry hopes to pump up his campaign with a supposedly bold proposal to institute a flat tax, which would also deliver more money to the well-off. Perry plans to outline his proposal this week, but he has already touted it as a sure-fire way of “scrapping the 3 million words of the current tax code.”
There is absolutely nothing new about this idea, and candidates who pushed flat taxes in the past saw their campaigns flat-line, most prominently businessman Steve Forbes in 1996 and again in 2000. Politically, the idea falls apart rather quickly when middle-income voters realize that its main effect is to cut taxes on the financially privileged while usually raising them on Americans who have more modest incomes.
Note to Perry: Voters are shrewd in figuring out whether tax proposals really benefit them. That’s why raising taxes on millionaires — the exact opposite of what Cain and Perry want to do — wins support from a broad majority.
But the more interesting question is: Why are today’s Republicans so enthralled by tax gimmicks? Their party, after all, was once innovative in thinking about affirmative uses of government. The Grand Old Party instituted the Homestead Act and created land-grant colleges, the interstate highway system, student loans, the Pure Food and Drug Act and even a prescription drug benefit under Medicare.
It was Richard Nixon who supported laws establishing the Environmental Protection Agency and the Occupational Safety and Health Administration. In signing the OSHA bill, Nixon called it “one of the most important pieces of legislation, from the standpoint of 55 million people who will be covered by it, ever passed by the Congress of the United States, because it involves their lives.” Yes, government regulations save lives, a view now heretical in the GOP.
Republicans have boxed themselves into a rejection of both their own traditions and the idea that government can do any good. Thus they have confined themselves to endless fiddling with the tax code. Almost everything conservatives suggest these days is built around the single idea that if only government took less money away from the wealthy, all our problems would magically disappear.
There is a history to this. The Republican fixation on taxes dates to the mid-1970s, when supply-side economics began taking hold. The late Jude Wanniski, an editorial writer for the Wall Street Journal who campaigned indefatigably on behalf of lower marginal tax rates, came up with the “Two Santa Clauses” theory. He argued that if Democrats earned support by giving voters benefits through government programs, Republicans should play Santa by giving people tax cuts.
Wanniski sold his tax ideas to Jack Kemp, one of the most ebullient political figures of his generation, who in turn sold them to Ronald Reagan. Reagan made Kemp’s 30 percent tax cut (co-sponsored with Sen. Bill Roth) a centerpiece of his 1980 campaign. The political scientist Wilson Carey McWilliams perfectly described the result in a 1981 essay. “After years of learning that ‘you don’t shoot Santa Claus,’ ” he wrote, “the Republicans decided to nominate him.”
But Republicans have a problem now. In the Kemp-Reagan days, they were selling across-the-board tax cuts. Most of their benefits flowed to the rich, but almost everyone got a piece. Today, many Republicans complain resentfully that less prosperous Americans don’t pay enough in taxes — overlooking the fact that citizens who don’t pay income taxes still shell out a significant share of their earnings in payroll, sales and (directly or through their rents) property taxes.
Reagan’s optimism has thus been replaced by crabby put-downs of the less affluent. Perry said it directly in his announcement speech: “We’re dismayed at the injustice that nearly half of all Americans don’t even pay any income tax.” Considering the other injustices in our society, this seems an odd and mean-spirited obsession.
“Tax the poor” is a lousy political slogan. That’s why Cain’s 9-9-9 plan and Perry’s flat tax are doomed to fail. Among conservatives, Santa Claus has given way to Scrooge.
By: E. J. Dionne, Opinion Writer, The Washington Post, October 21, 2011
If Only Sen Snowe’s Actions Met Her Misplaced Rhetoric
Treasury Secretary Timothy Geithner talked to the Senate Small Business Committee, urging its members to approve jobs measures proposed by the White House. Sen. Olympia Snowe (R-Maine), ostensibly Congress’ most moderate Republican and the member most likely to listen to reason, went on quite a tirade.
“Your primary mission is to craft the economic policy of this country, and at this point, it simply isn’t working,” she told Geithner. “Something’s gone terribly wrong, and what I hear over and over again is that there is no tempo, a tempo of urgency.”
“I don’t know who you’re talking to…but you need to talk to the average person,” she said later in a testy back and forth with Geithner. “Rome is burning.”
I’m delighted Snowe is pretending to care about the economy. I’m also delighted she thinks she’s in touch with what “average” people want, and would like to see policymakers to act with “urgency.”
But if Olympia Snowe thinks her actions are consistent with her rhetoric, she’s sadly mistaken.
We are, after all, talking about the alleged moderate from Maine who, just last week, voted with right-wing senators to refuse a debate on the popular and effective American Jobs Act. She’s the same senator who’s refused to endorse any of the provisions in the bill, no matter how much they’d help. What was that she was saying about “urgency”?
Snowe thinks Geithner is responsible for crafting the nation’s economic policy? Here’s a radical idea: maybe if Snowe could bring herself to stop filibustering worthwhile economic legislation, Geithner might have more success.
“Rome is burning”? And who, exactly, does Snowe believe is responsible? The party with good economic ideas that can’t overcome Republican obstructionism, or the party engaged in the obstructionist tactics, offering ideas that would make the economy worse, and by some accounts, holding back the nation deliberately?
Snowe seems to believe the status quo isn’t working. On this, she’s correct. But it’s not working because Republicans are getting their way.
In what universe does it make sense for Snowe to blame Geithner? Snowe and Republicans got the tax cuts they demanded; Snowe and Republicans saw the stimulus spending evaporate, just as they wanted; Snowe and Republicans are watching the public sector lay off hundreds of thousands of workers, just as GOP policy dictates; and Snowe and Republicans have forced the White House to accept massive spending cuts, which takes money out of the economy on purpose.
And now she’s complaining? Why, because her party is getting what it wants and she doesn’t like the results?
Arguably one of the most dramatic Democratic dilemmas of 2011 and 2012 is overcoming the realization that Republicans are getting their way on economic policy and then denying any responsibility for the results. Indeed, it’s a rather extraordinary con: GOP officials see much of their agenda implemented, then see it fail, and then blame Obama when their policies don’t work.
The nation is reading from the Republicans’ economic playbook, and thanks in part to Snowe’s filibusters, that’s not likely to change anytime soon. When the GOP agenda fails, Republicans should be prepared to accept responsibility for the consequences, instead of pretending they’re not getting their way.
By: Steve Benen, Washington Monthly Political Animal, October 18, 2011
What If Working Class Americans Actually Like Occupy Wall Street?
It’s become an article of faith among some on the right, and even among some neutral commentators, that Obama and Dems risk losing the support of blue collar whites in swing states if they dare to whisper a word of praise for Occupy Wall Street.
But what if the opposite is true — what if working class white voters actually like and agree with Occupy Wall Street’s message, if not always with the cultural and personal instincts of its messengers?
The movement is still very young, and it’s very hard to gauge support for it. But one labor official shares with me a very interesting data point: Working America, the affiliate of the AFL-CIO that organizes workers from non-union workplaces, has signed up approximately 25,000 new recruits in the last week alone, thanks largely to the high visibility of the protests.
Karen Nussbaum, the executive director of Working America, tells me that this actually dwarfs their most successful recruiting during the Wisconsin protests. “In so many ways, Wisconsin was a preview of what we’re now seeing,” Nussbaum says. “We thought it was big when we got 20,000 members in a month during the Wisconsin protests. This shows how much bigger this is.”
The cultural fault line and tensions between blue collar whites and liberal activists is a well established storyline in American history. But Working America — which organizes in industrial battlegrounds like Michigan, Wisconsin, Ohio and Pennsylvania and other swing states — is having a new burst of success among precisely the sort of working class voters who are supposed to be culturally alienated by the excesses of the Occupy Wall Street protestors.
Nussbaum says that her organizers report that new recruits often mention the protests in a positive light, even though they have very little in common in cultural terms.
“These are not the folks who normally wear dreadlocks and participate in drum circles,” Nussbaum says. “They’re working class moderates who work as child care employees or in cafeterias or in construction. They’re people who work in lower middle class suburbs around the country.” Pressed on whether the movement’s excesses and lack of a clear agenda risk alienating such voters, Nussbaum said: “We’re proving every day that that’s not the case.”
I don’t want to overstate the case that can be made off of this kind of anecdotal evidence. And I’m sympathetic to the case made by some conservatives that it’s way too early to place stock in polls showing the movement is well received by the public. But as new polling emerges, it will be very interesting to track how it’s received by working class Americans who conservatives insist will be repulsed by it.
At a minimum, the question of whether Occupy Wall Street can forge any kind of meaningful bond with blue collar whites and moderates will be seen by both sides as a crucial one going forward. Nussbaum acknowledges that conservatives might have some success discrediting the movement “if they can change the subject to what the occupiers are wearing.”
“But if we keep the subject on jobs and democracy, we’ll keep those working class moderates in this fight,” she concludes. “It’s crucial that we not let this moment evaporate, and we can do that if we tie the movement to a working class constituency.”
By: Greg Sargent, The Plum Line-The Washington Post, October 17, 2011
Mainers Ask “What Side” Sens. Snowe And Collins Are On
The votes by Maine Republican Senators Olympia Snowe and Susan Collins against the American Jobs Act, which Moody’s Analytics estimated would create nearly 2 million new jobs, have sparked protests in Augusta:
The ongoing series of Wall Street protests moved to Maine’s capital Thursday as about two dozen trade workers, state employees and residents held a rally calling for passage of a federal jobs bill and a new tax to pay for it.
“They got bailed out, we got sold out,” the protesters chanted from under their umbrellas as they left the State House in the rain for the federal building a couple of blocks away to deliver their demands to the offices of U.S. Sens. Olympia Snowe and Susan Collins. Those demands included lists of projects that could be funded in Maine. […]
“Workers like us didn’t crash the economy; Wall Street did,” said Dawn Frank of Oxford, an electrician who has had difficulty finding work. “It’s been rough. It’s been rough for everybody. Let’s get Maine workers like me rebuilding our country.”
Donna Dachs, a retired teacher from Readfield, said the state’s schools, roads, bridges and ports urgently need upgrades.
And the protesters aren’t just unhappy with Wall Street — they want some answers from their senators, too:
The folks here, like Cokie Giles, President of the Maine State Nurses Association, say they want congress to pass legislation to create jobs. “The first one is good jobs with livable wages. There’s a difference between having a job and having livable wages,” Giles said. […]
Senators Olympia Snowe and Susan Collins both voted against the president’s jobs bill earlier this week. A move that angered the people gathered in Augusta. “What we’re gonna do is ask Senators Snowe and Collins what side they’re on. Are they on Wall Street’s side or are they on Main street?” Giles asked the supporters.
That’s a good question — but Snowe has already answered it. In her five-paragraph statement about her vote against the jobs bill, Snowe indicated an objection to only one of the bill’s provisions: the surcharge on adjusted gross income in excess of one million dollars a year, which would affect only one-tenth of one percent of Maine residents.
So it’s pretty clear what side Snowe is on: She sides with the richest one-tenth of one percent of Mainers, and against 99.9 percent of her constituents. It really doesn’t get much clearer than that. But just to drive the point home, Snowe spoke to group of businessmen this morning, where she courageously told themtheir taxes are too high and they are over-regulated. That probably played better with the financial elites who fund her campaigns than with the struggling working-class voters who elect her, but it is neither the problem with the economy nor the solution to its problems. Snowe also backed a balanced budget amendment, which, according to Gus Faucher, Moody’s Analytics’ director of macroeconomics, “is likely to push the economy back into recession.” Naturally, Snowe didn’t explain how she’d balance the budget — she likes to leave the solutions to others.
Jamison Foser, Media Matters, October 14, 2011
The Tea Party Chronicles
Raising Cain
Herman Cain, the former CEO of Godfather’s Pizza is rolling in dough and rising in the polls. A new national survey of primary voters by the Wall Street Journal and NBC News has the Hermanator in first place ahead of Mitt Romney and all the other Tea Party types. The question is whether working families will support Cain’s plan for a national sales tax to pay for lower taxes for bankers and billionaires? I don’t think so.
Don’t Know Much about History
The Tea Party takes its name from the Americans who dumped British tea into Boston Harbor to protest taxation without representation in 1773. The Tea Partyers profess great reverence for the founders but the Tea Party candidates are clueless about the founding of our nation. Tuesday Rick Perry placed the American Revolution in the 16th century which would have given our founders only a few years to get things rolling after Columbus came to town. Previously, Michele Bachmann described the founders as abolitionists, a portrayal which would have greatly surprised the hundreds of slaves owned by George Washington and Thomas Jefferson. By the way, Representative Bachmann, the Boston Tea Party, like the battles of Lexington and Concord, was in Massachusetts, not New Hampshire.
Greed is Good
Greed is good should be the motto for the Party of Tea, the party formerly known as the GOP. Tuesday, Every POT member of the United States Senate opposed the president’s proposal to reduce payroll taxes and provide tax breaks for small businesses which hire people without jobs. Why did the POT spit the bit on the issue that Americans care most about? Because Democrats would pay for the tax cuts for working families and small businesses by making millionaires and billionaires pay their fair share of taxes. Greed is good for the Tea Partyers and their billionaire buddies who bankroll their big budget campaigns. Because the POT blocks action in Washington on jobs, thousands of Americans occupy Wall Street and streets across the country to protest corporate greed. Will the numerical advantage that the 99 percent have triumph over the money muscle of the 1 percent. Yes, it will.
ObamaCares
Time magazine released a new national survey yesterday that shows Barack Obama beating all his POT challengers. The secret of the president’s success is Obama’s caring. A clear majority (57 percent) of likely voters believe that Barack Obama cares about the problems of people like themselves. It’s not surprising that Americans feel that the president cares about them when the Party of Tea goes out of its way to cut Medicare and Social Security benefits for seniors but fights to the death to protect federal tax freebies for bankers, billionaires, hedge fund managers, and corporate jet setters.
It’s about Time
The same Time magazine national survey indicates that two of every three Americans believe the rich should pay more taxes. Which explains why more than half (54 percent) of the likely voters have a favorable opinion of the protesters against corporate greed while only one of four people (27 percent) have a favorable opinion of the Tea Party. The Tea Party has been replaced by the new kid on the block. Far be it for me to give advice to Republicans but they better quickly take back their party from the extremists before voters dump the old GOP into the harbor with the Tea Party.
By: Brad Bannon, U. S. News and World Report, October 13, 2011
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