“Dear Leader” Boehner And House Republicans Cave In Payroll Taxcut Fight
This morning, House Speaker John Boehner (R-Ohio) and other leading officials from his caucus told reporters that House Republicans would stick to their guns when it comes to extending the payroll tax break. If Democrats wanted to avoid a tax increase on the middle class, they would have to cave and make Boehner and his cohorts happy.
Not quite six hours later, Boehner and his cohorts threw in the towel.
House Republicans on Thursday crumpled under the weight of White House and public pressure and have agreed to pass a two-month extension of the 2 percent payroll-tax cut, Republican and Democratic sources told National Journal.
The House made the move after Senate Majority Leader Harry Reid, D-Nev., agreed to appoint conferees to a committee to resolve differences between the Senate’s two-month payroll-tax cut and the House’s one-year alternative.
Reid, you’ll remember, made this offer on Monday, and soon after Boehner said this morning that the deal wasn’t good enough, Senate Minority Leader Mitch McConnell (R-Ky.) endorsed Reid’s solution. President Obama backed the same approach shortly thereafter.
The House will reportedly make some technical changes to the Senate bill, and the Senate will approve that final bill by unanimous consent.
With nine days to go, it appears all but certain that the payroll tax break — as well as a clean extension of unemployment benefits — will be extended for two months. Between now and then, a conference committee will be tasked with working on a deal for a full-year extension.
What changed Boehner’s mind? Or more accurately, what changed Boehner’s mind again? The Speaker, as recently as Saturday, wanted to pass the Senate compromise and send his caucus home for the holidays. They rebelled and the leader quickly became the follower.
By some accounts, this happened again today. House Republicans —- Wisconsin’s Sean Duffy, Arkansas’ Rick Crawford, Pennsylvania’s Charlie Dent, among others — started breaking ranks after getting an earful in their local districts. GOP lawmakers who wanted to fight the Senate Braveheart-style came to the conclusion, “Maybe that Senate bill isn’t so bad after all.” When his members reversed course, the Speaker again took his cues from them, rather than the other way around.
If Boehner were a stronger, more effective House Speaker, this fiasco could have been easily avoided. He could have told his caucus this was a fight they were likely to lose, so passing the Senate bill quickly was the smart course of action. But he couldn’t — Boehner takes orders; he doesn’t give them.
It’s what helps make this story a disaster, not only for Republicans in general, but also for John Boehner personally. As he surrenders this afternoon, Boehner becomes The Speaker Who Has No Clothes.
He stuck out his neck, vowing not to cave, knowing he’d likely have to cave anyway. Boehner than waited until the pressure became unbearable — after he’d lost face and friends — and walked away with his tail between his legs.
Neither party has had a Speaker this feeble in modern times. His instincts told him to take the deal over the weekend, but Boehner allowed himself to be pushed around by his unhinged caucus, then get pushed around by Democrats, then get pushed around by his allies, then get pushed around by Senate Republicans.
How big a disaster was this for Boehner? Keep an eye on whether Eric Cantor’s travel schedule changes over the holidays.
By: Steve Benen, Contributing Writer, Washington Monthly Political Animal, December 22, 2011
On Tap: “Boehner The Barkeep” And The Radical Republican Winterfest
House Speaker John Boehner gave a spirited reply when asked recently about whether his party’s resistance to middle-class tax cuts risked making Republicans appear to be lackeys of the rich.
“I’ve got 11 brothers and sisters on every rung of the economic ladder, all right?” Boehner said. “My dad owned a bar. I know what’s going on out in America.”
So Boehner has his finger on the American pulse because his deceased father owned a saloon? What strange brew have they been pouring in the speaker’s office?
Whatever advice Earl Boehner has been giving his son from the grave, it doesn’t appear to be working. On Monday, the bar owner’s son aligned himself with House conservatives in opposition to a broadly bipartisan plan to extend a payroll tax cut for 160 million Americans.
This new position, essentially reversing the one Boehner voiced a mere three days earlier, proves anew that the old-school speaker is less a leader of his caucus than a servant of his radical backbenchers. Perhaps it would be more accurate to say he’s their barkeep.
Three times at a news conference on Friday, Boehner was asked whether he could support a two-month extension of the payroll tax cut, as Senate Democrats and Republicans were planning. Three times, Boehner declined to state an objection to the two-month extension (he objected to a different part of the agreement, about an oil pipeline, which the senators subsequently changed to his liking).
“I just gave you an answer. How much clearer can I be?” Boehner said, refusing to take issue with the two-month extension.
And so senators passed the extension, 89 to 10. Tea Party heroes Pat Toomey and Marco Rubio voted for the compromise. The fiercest budget cutter of them all, Sen. Tom Coburn, voted for it. Republican lions such as John Cornyn, Jon Kyl and Mitch McConnell voted for it. Only seven Republicans voted “no.”
McConnell, the Senate Republican leader who negotiated the compromise, kept Boehner informed at every step — and was confident enough in Boehner’s acquiescence that his office sent out a notice saying there would be no more legislative business in the Senate until 2 p.m. on Jan. 23. But Boehner’s backbenchers — particularly the Tea Party freshmen — had other ideas, and, in a Saturday teleconference, made clear to Boehner that he would have to abandon the compromise.
The House Republican freshmen have become a bit tipsy with power, and freshman Rep. Steve Womack (R-Ark.) on Tuesday boasted at a news conference that his class is “performing more like sophomores now than freshmen.” Actually, their performance is more sophomoric than anything, but they’ve been able to deliver a string of insults to Boehner, most notably the July revolt that forced the speaker to pull his debt-limit plan from the floor. If Boehner needs any more evidence he’s out of style in his party, he can ponder the rise in the presidential race of Newt Gingrich, the man Boehner tried to depose from the speakership 15 years ago, losing his leadership position in the process.
On Tuesday, Boehner had the unpleasant task of going before the cameras to explain why his House Republicans, after championing tax cuts for millionaires, would be voting against a tax cut for ordinary Americans.
“You know, Americans are tired of, uh, Washington’s short-term fixes and gimmicks,” Boehner began. Behind him in the hallway outside his office, four American flags provided patriotic cover for the reversal. He complained that “the Senate Democratic leaders passed a two-month extension” — omitting mention that Senate Republicans, with Boehner’s knowledge and tacit support, had agreed.
So rather than pass a two-month extension, he’s willing to have the tax cuts lapse entirely when they expire at year end?
“I don’t believe the differences between the House and Senate are that great,” Boehner said, by way of reassurance. But this only confirmed that his side was making a big stink over nothing.
Why didn’t he raise warnings earlier about the two-month extension? “Uh, we expressed our reservations about what the Senate was doing,” he said.
What did he make of the fact that 90 percent of the Senate supported the compromise? Boehner, in reply, demanded to know why “we always have to go to the lowest common denominator” — which is exactly what he had done in letting his backbenchers lead him.
The speaker denied the obvious truth that he had encouraged the compromise before opposing it. He licked his lips, gave a “thanks, everybody” and disappeared.
The sophomoric freshmen must have needed their barkeep to serve them another round.
By: Dana Milbank, Opinion Writer, The Washington Post, December 19, 2011
Mitch McConnell: GOP Isn’t “Here To Defend High-Income People”
The number two Senate Republican, Arizona Sen. Jon Kyl (R), last week decried attempts by Senate Democrats and President Obama to pay for a payroll tax cut extension with a surtax on millionaires. Despite the fact that payroll tax cut extension would keep an extra $1,000 in the pockets of the average American family, and despite the fact that the millionaire surtax would hit relatively few households, Kyl said he could only support extending the tax cut for working Americans if it was accompanied by massive tax cuts for the wealthy.
This morning on Fox News Sunday, host Chris Wallace asked Senate Minority Leader Mitch McConnell (R-KY) what he made of characterizations of the GOP as the party that defends millionaires, given that more than half of McConnell’s caucus has repeatedly voted against a tax cut for the middle class. McConnell laughed at the assertion before saying the GOP is “not here to defend high-income people.” As proof, McConnell told Wallace that the Republican plan took such drastic steps as to prevent millionaires from receiving unemployment benefits or food stamps:
WALLACE: Why are so many Republicans, including more than half of your Senate Republicans, why are they voting against the payroll tax cut?
MCCONNELL: Well the president’s comments, it’s hard not to laugh, because four out of five of the people they’re targeting, of “the rich people” they’re targeting, are actually business owners who create jobs. Look, we’re not here to defend high-income people. In this bipartisan package that we’re just discussing, we make sure millionaires don’t get unemployment, don’t get food stamps. […] It doesn’t do anything for millionaires, in fact, it goes after them on the benefits side.
McConnell’s assertions seem belied by the facts. Though he insists the payroll tax cut extension will pass, it was the GOP that opposed paying for it through a small surtax on the wealthiest Americans. It was the GOP that opposed any move to raise taxes on the wealthiest Americans in efforts to reduce the deficit — leading to the first credit downgrade in American history and ultimately dooming the super committee. It was his party that nearly shutdown the government in April over the same issue — even though the wealthiest Americans are paying historically low tax rates.
And while McConnell claims the GOP plan “goes after” millionaires “on the benefits side,” it “goes after” low- and middle-income Americans “on the benefits side” even harder. While the GOP opposes any tax increase on millionaires, the House plan to extend the payroll tax cut guts unemployment insurance — one of the most effective means of economic stimulus the government has — reducing the number of weeks one can remain on the program from 99 to 79, and then from 79 to 59.
McConnell’s claims that “four out of five people” Democrats are “targeting” are actually “business owners who create jobs” is equally laughable. NPR last week tested that claim, asking Republican Congressional offices to help them find business owners who opposed the millionaire surtax. Unsurprisingly, since only 2 percent of those with business income would be affected by the surtax, the Republican offices and business lobbying groups couldn’t find anyone for NPR to talk to.
By: Travis Waldron, Think Progress, December 11, 2011
How The Rich Created The Social Security “Crisis”
Now and then, George W. Bush told the unvarnished truth—most often in jest. Consider the GOP presidential nominee’s Oct. 20, 2000, speech at a high-society $800-a-plate fundraiser at New York’s Waldorf-Astoria. Resplendent in a black tailcoat, waistcoat and white bow tie, Bush greeted the swells with evident satisfaction.
“This is an impressive crowd,” he said. “The haves and the have-mores. Some people call you the elites; I call you my base.”
Any questions?
Eight months later, President Bush delivered sweeping tax cuts to that patrician base. Given current hysteria over what a recent Washington Post article called “the runaway national debt,” it requires an act of historical memory to recall that the Bush administration rationalized reducing taxes on inherited wealth because paying down the debt too soon might roil financial markets.
Eleven years later, the Post warns in a ballyhooed article, reading like something out of Joseph Heller’s “Catch-22,” that Social Security—the 75-year-old bedrock of millions of Americans’ retirement hopes—has “passed a treacherous milestone,” gone “cash negative,” and “is sucking money out of the Treasury.”
Anybody who discerns a relationship between these events, that is, between a decade of keeping the “have-mores’” yachts and Lear jets running smoothly and a manufactured crisis supposedly threatening grandma’s monthly Social Security check must be some kind of radical leftist.
That, or somebody skeptical of the decades-long propaganda war against America’s most efficient, successful and popular social insurance program. It’s an effort that’s falsely persuaded millions of younger Americans that Social Security is in its last days and made crying wolf a test of “seriousness” among Beltway courtier-pundits like the Post’s Lori Montgomery, who concocted an imaginary front page emergency out of a relatively meaningless actuarial event.
All in service, alas, of a single unstated premise: The “have-mores” have made off with grandma’s money fair and square. They have no intention of paying it back. That’s the only possible interpretation of the Post’s admonition that “the $2.6 trillion Social Security trust fund will provide little relief. The government has borrowed every cent and now must raise taxes, cut spending or borrow more heavily from outside investors to keep benefit checks flowing.”
Little relief? In fact, the law’s working precisely as intended. After 28 years of generating huge payroll tax surpluses to cover the baby boomers’ retirement benefits, the system must now begin to draw upon those funds to help pay current benefits—the vast majority still covered by current payroll tax receipts.
“Rather than posing any sort of crisis,” explains Dean Baker of the Center for Economic and Policy Research, “this is exactly what had been planned when Congress last made major changes to the program in 1983 based on the recommendations of the Greenspan commission.”
Again, this is the beneficiaries’ money, invested by the Social Security trustees in U.S. Treasury bonds drawn upon “the full faith and credit of the United States.” Far from being “meaningless IOUs” as right-wing cant has it, they represent the same legally binding promise between the U.S. government and its people that it makes with Wall Street banks and the Chinese government, which also hold Treasury Bonds.
A promise not very different, the Daily Howler’s Bob Somerby points out, from the one implicit in your bank statement or 401K (if you’re lucky enough to have one). Did you think the money was buried in earthen jars filled with gold bullion and precious stones?
Raise taxes, cut spending or borrow? What other options does the U.S. government, or any government, have?
On his New York Times blog, Paul Krugman dissects the Catch-22 logic behind the Post’s bogus crisis. You can’t simultaneously argue “that the trust fund is meaningless, because SS is just part of the budget, then claim that some crisis arises when receipts fall short of payments, because SS is a standalone program.” For practical purposes, it’s got to be one or the other.
So is Social Security a “Ponzi scheme”? No, it’s group insurance, not an investment. You die young, somebody else benefits. Its finances have been open public record since 1936. Do fewer workers support each beneficiary? Sure, but who cares? It’s denominated in dollars, not a head count. The boomers were nearing 40 when the Reagan administration fixed the actuarial tables. No surprises there.
Are longer life expectancies screwing up the numbers? Not really. Most of the rise is explained by lower infant and child mortality, not by old-timers overstaying their welcome. Kevin Drum points out that gradually raising the payroll tax 1 percent and doubling the earnings cap over 20 years would make Social Security solvent forever.
But that’s not good enough for the more hidebound members of the $800-a-plate set. See, over 75 years Social Security has provided a measure of dignity, security and freedom to working Americans that just annoys the hell out of their betters.
By: Gene Lyons, Salon, November 2, 2011
“Divided And Undisciplined”: The GOP Circus Is In Town
Even Republicans have to be laughing at the circus sideshow the GOP presidential candidates are putting on. The Mitt-Rick-Herman act was so comical this week it looks concerted, almost like they collaborated with the Democratic National Committee. Team Obama is grinning so hard its ears are hurting, because 10 weeks out from the Iowa caucuses, the Republican Party is divided, the candidates are undisciplined and the voters don’t love any of them. Just in time for the real ugliness to begin a few weeks from now.
The marquee moment belongs to Texas Gov. Rick Perry, of course, indulging in birtherism on Monday night so that he could step on Tuesday’s rollout of his flat-tax plan. Sure, Perry tried to discount the birth-certificate controversy — sort of — while throwing some greasy scraps to the Trumpsters who still believe a U.S. president has actually released a fake certificate.
“I’m not really worried about the president’s birth certificate,” Perry said in an interview with CNBC. “It’s fun to poke at him a little bit and say, ‘Hey, how about, let’s see your grades and your birth certificate.’ ” Perry made sure to mention that Donald Trump recently said he didn’t think the birth certificate was real. And he said it’s “a good issue to keep alive.”
Former Massachusetts Gov. Mitt Romney could have jumped all over that — if he hadn’t been busy shooting himself in the foot in the battleground state of Ohio. Yes, Romney decided a fresh flip-flop was in order, despite the fact that his critics are happy to savor his many others. While at a Republican call center in Ohio, he refused to comment on an Ohio law limiting collective bargaining that he had expressed support for months ago. After being pummeled by conservatives, Romney reiterated his, um, previous support.
Herman Cain, who tops the GOP field in a new CBS/New York Times poll, spent the last few days telling reporters who asked tough policy questions that he needed a little more time to think of an answer. He learned the hard way by saying on CNN that abortion is a family’s choice. Whoops — better to leave details out of this whole thing. Cain still can’t really be found on the campaign trail. No, the motivational speaker was in Texas selling books and giving a speech. And despite Perry’s attempt to beat Cain at his 9-9-9 game with a flat-tax plan, Cain-world still scored much buzz with a weirdo Web ad featuring his campaign manager Mark Block smoking into the camera. It already has more than 387,000 hits on YouTube.
With that kind of juice, who needs to endure the icy winds of the door-to-door campaigning Iowans demand of their caucus winners? If Cain continues to surge without leaving the book tour, then we will know that talking to voters in town-hall meetings and asking for their support is no longer necessary. In fact, perhaps televised debates aren’t, either. Perry told Bill O’Reilly in an interview on Fox News on Tuesday that while his debate performances have been disappointing, the debates themselves are a mistake. “If there was a mistake, it was probably ever doing one of the campaign [debates] when all they’re interested in is stirring up between the candidates instead of really talking about the issues that are important to the American people.” His campaign said Perry will attend one more in Michigan, but beyond that he might be a no-show.
That’s understandable. Questions at debates about serious policy matters — like what his response would be to the Taliban gaining control of Pakistani’s nuclear weapons — just aren’t Rick Perry’s idea of “fun.”
By: A. B. Stoddard, Associate Editor, The Hill, October 26, 2011
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