“The Langoliers Are Coming”: What Boehner Faces In 2012 After Payroll Tax Debacle
In the immediate aftermath of the GOP’s payroll tax debacle, a handful of conservative House Republicans publicly attacked their leaders — particularly Speaker John Boehner (R-OH).
“I am disappointed that our Republican leadership in both the House and Senate chose a course of political expediency rather than standing on conservative principle,” said Rep. Todd Akin (R-MO) in an official statement.
Others appealed to Fox News, where conservatives and Republicans feel more comfortable expounding on party/movement contretemps.
“He’s (Boehner) got a big problem when he comes back,” one anonymous congressman claimed. “He may have a hard time keeping his Speakership after this.”
“We were hung out to dry by our leadership,” said another unnamed member.
The list goes on. But the holidays calmed the backlash, and with a week’s hindsight a consensus of sorts has emerged among party strategists, aides (current and former) and congressional scholars. Not all agree on the question of how well or poorly Boehner handled the situation. But though Boehner’s 2012 won’t be easy, those House conservatives who were seeing blood last week are likely to be disappointed again.
“I don’t think his leadership is going to be taken away from him over the course of the next year,” said Norm Ornstein — a Congress expert at the right-leaning American Enterprise Institute. “But I’m expecting a pretty difficult year ahead for him next year.”
“Going into next year he has to reassert his authority going into the payroll tax debate, and frankly other debates,” said a former senior House aide. “In addition to that he will most likely take a conference-wide stance on the payroll tax fight and will work to fight and win.”
Boehner’s 2012 depends to a huge extent on how much the GOP conference is still spoiling for a fight. If they’re chastened by the horrendous month they had — and thus resigned to ceding the payroll tax issue to the Democrats — then Boehner will have it pretty easy. The payroll tax cut will be extended through the end of the year, and, in a sense, his original judgment will have been vindicated. His members won’t lead the party astray again. But if a substantial number of Republicans return from recess breathing fire, and try once again to use the expiring payroll tax cut to extract massive concessions from Democrats then Boehner and the rest of the GOP are likely in for a politically costly battle.
“When you start with the Republicans rejecting even a dime of taxes on millionaires and you want to take money out of other programs that benefit the middle class or poor people, you’re going to have a tough time doing this,” Ornstein said. “The other part is the Republicans in the House settled on a narrative to justify their action. They said they want a full year payroll tax cut. The fact is a very substantial share of those Rs don’t want anything. They don’t want any payroll tax cut.”
This is correct — and it’s worth recalling that GOP leaders originally solved that problem by tying the payroll tax cut to the Keystone XL oil pipeline. But they already got that — and now that Republicans have built a consensus for a yearlong payroll tax cut almost by accident, it’s unlikely Democrats are going to be willing to concede much of anything to them.
“He tried to throw in this lever, which was this pipeline. Well, they got it,” Ornstein said. “The incentive for Obama to give in more is pretty much zero.”
Despite the unfavorable dynamic for the GOP, most see the worst-case scenario for him as a leadership challenge … in 2013 (assuming the GOP retains its majority in the 2012 elections).
“[Y]ou’re always going to have squeaky wheel members who are never going to be satisfied,” the senior aide said. “And there may be some members who don’t like Boehner who are using it as a way to complain.” However, if the dissent starts creeping beyond that rump in the next couple weeks, “then he’s got a big problem,” the aide says. “[But] I doubt that’s going to happen.”
By: Brian Beutler, Talking Points Memo, December 29, 2011
Why GOP Collapse On The Payroll Tax Could Be A Turning Point
In recent American politics, every major shift in political momentum has resulted from an iconic battle.
In 1995 the tide of the 1994 “Republican Revolution” was reversed when Speaker Newt Gingrich and his new Republican House majority shut down the government in a battle over their attempts to cut Medicare to give tax breaks to the rich (sound familiar?). The shutdown ended with — what pundits universally scored — as a victory for President Clinton. That legislative victory began Clinton’s march to overwhelming re-election victory in 1996.
In 2010, Democrats passed President Obama’s landmark health care reform. But they lost the battle for public opinion — and base motivation. That turned the political tide that had propelled President Obama to victory in 2008 and ultimately led to the drubbing Democrats took in the 2010 midterms.
The Republican leadership’s collapse in the battle over extending the payroll tax holiday and unemployment benefits could also be a turning point moment that shifts the political momentum just as we enter the pivotal 2012 election year.
Here’s why:
1) Since the president launched his campaign for the American Jobs Act, he has driven Congressional Republicans into a political box canyon with very few avenues of escape. The jobs campaign has made it clearer and clearer to the voters that the “do nothing Republican Congress” bears responsibility for preventing the President from taking steps that would create jobs.
Until the payroll tax/unemployment victory, the president had failed to persuade the Republican dominated Congress to pass any provision of the bill — save one aimed at helping veterans. But the polling shows that the public has become more and more disgusted by Congressional intransigence. Since 64% of Americans believe that Congress is run entirely by the Republicans (and from the stand point of stopping legislation it is managed entirely by Republicans), the overall unhappiness with Congress has translated into distain for the “do nothing Republican Congress.”
Congress now has lower approval ratings (11% in the latest poll) than at any time in modern history. Senator Michael Bennett presented data on the Senate floor that showed that Congress is less popular than BP during the gulf oil spill. It is way less popular than Nixon during Watergate. About the same number of Americans have a positive view of Congress as support America becoming a Communist nation. That makes it the worst time imaginable for House Republicans to throw a political tantrum that threatened to increase the tax burden of everyday Americans by $40 per paycheck — $1,000 next year — right after Christmas.
Last weekend, the Senate Republican Leader thought he had blazed a path for Republicans that led out of that political box canyon — at least in so far as the extension of the payroll tax holiday and unemployment. The bipartisan agreement to temporarily extend the payroll tax holiday and unemployment insurance seemed to give Republicans a face saving option that — at least temporarily — took them off the political hook. But Tea Party stalwarts in the House threatened to mutiny if Boehner went along — and all week — there the House Republicans sat, at the bottom of that canyon with no escape.
House Republicans bet that the president and Democrats were desperate enough to extend the payroll tax and unemployment that they could hold those provisions hostage the way they had held hostage the debt ceiling in August. In an act of unfathomable political ineptitude, they failed to appreciate that this time, Democrats occupied vastly higher political ground.
Failure to continue the payroll tax holiday would have immediately decreased the take home pay of 160 million Americans. By refusing to agree to the compromise that had passed the Senate with an overwhelming bipartisan majority, House Republicans made it certain that they would have been held responsible.
They might as well have hung out a huge flashing sign in Times Square that said: “Republicans are responsible for cutting your take home pay and eliminating your unemployment benefits.”
Even the conservative editorial page of the Wall Street Journal called on them to throw in the towel.
Democrats had every incentive to hang tough. In the end by refusing to take the escape hatch opened for them by McConnell, the nation watched House Republicans dragged kicking and screaming to support the president’s popular payroll and unemployment extensions.
The outcome of the battle was unambiguous. No one could doubt who stood up for the economic interests of the middle class and who did not. And no one could doubt who won and who lost.
National Journal reported that, “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 two percent payroll-tax cut, Republican and Democratic sources told National Journal.”
In the end, Republican intransigence transformed a moment that would have been a modest win for President Obama into an iconic victory.
2) Strength and victory are enormous political assets. Going into the New Year, they now belong to the president and the Democrats.
One of the reasons why the debt ceiling battle inflicted political damage on President Obama is that it made him appear ineffectual — a powerful figure who had been ensnared and held hostage by the Lilliputian pettiness of hundreds of swarming Tea Party ideological zealots.
In the last few months — as he campaigned for the American Jobs Act — he has shaken free of those bonds. Now voters have just watched James Bond or Indiana Jones escape and turn the tables on his adversary.
Great stories are about a protagonist who meets and overcomes a challenge and is victorious. The capitulation of the House Tea Party Republicans is so important because it feels like the beginning of that kind of heroic narrative.
Even today most Americans believe that George Bush and the big Wall Street banks — not by President Obama — caused the economic crisis. Swing voters have never lost their fondness for the President and don’t doubt his sincerity. But they had begun to doubt his effectiveness. They have had increasing doubts that Obama was up to the challenge of leading them back to economic prosperity.
The narrative set in motion by the events of the last several weeks could be a turning point in voter perception. It could well begin to convince skeptical voters that Obama is precisely the kind of leader they thought he was back in 2008 — a guy with the ability to lead them out of adversity — a leader with the strength, patience, skill, will and resoluteness to lead them to victory.
That now contrasts with the sheer political incompetence of the House Republican leadership that allowed themselves to be cornered and now find themselves in political disarray. And it certainly contrasts with the political circus we have been watching in the Republican Presidential primary campaign.
3) This victory will inspire the dispirited Democratic base.
Inspiration is the feeling of empowerment — the feeling that you are part of something larger than yourself and can personally play a significant role in achieving that goal. It comes from feeling that together you can overcome challenges and win.
Nothing will do more to inspire committed Democrats than the sight of their leader — President Obama — out-maneuvering the House Republicans and forcing them into complete capitulation.
The events of the last several weeks will send a jolt of electricity through the progressive community.
The right is counting on progressives to be demoralized and dispirited in the coming election. The president’s victory on the payroll tax and unemployment will make it ever more likely that they will be wrong.
4) When you have them on the run, that’s the time to chase them.
The most important thing about the outcome of the battle over the payroll tax and unemployment is that it shifts the political momentum at a critical time. Momentum is an independent variable in any competitive activity — including politics.
In a football or basketball game you can feel the momentum shift. The tide of battle is all about momentum. The same is true in politics. And in politics it is even more important because the “spectators” are also the players — the voters.
People follow — and vote — for winners. The bandwagon effect is enormously important in political decision-making. Human beings like to travel in packs. They like to be at the center of the mainstream. Momentum shifts affect their perceptions of the mainstream.
For the last two years, the right wing has been on the offensive. Its Tea Party shock troops took the battle to Democratic members of Congress. In the mid-terms Democrats were routed in district after district.
Now the tide has turned. And when the tide turns — when you have them on the run — that’s the time to chase them.
We won’t know for sure until next November whether this moment will take on the same iconic importance as Clinton’s battle with Gingrich in 1995. But there is no doubt that the political wind has shifted. It’s up to progressives to make the most of it.
By: Robert Creamer, The Huffington Post, December 23, 2011
What Happens To The Economy If The Payroll Tax Cut Expires?
Yesterday, House Speaker John Boehner (R-OH) threw cold water on a temporary extension of the soon-to-expire payroll tax cut that had passed overwhelmingly in the Senate on Friday. “Well, it’s pretty clear that I and our members oppose the Senate bill,” Boehner said, despite the fact that on Friday he had called it a “good deal” and a “victory.”
House Republicans intend to vote down the Senate’s bill tonight, leaving the issue unresolved. But what happens if the payroll tax cut is allowed to expire? According to several economic analysts, it would severely affect growth and job creation next year:
– According to Macroeconomic Advisers, allowing the payroll tax cut to lapse “would reduce GDP growth by 0.5 percent and cost the economy 400,000 jobs.”
– Barclay’s estimated that letting the cut expire would knock 1.5 percent off of first quarter growth next year.
Meanwhile:
– Ameriprise Financial Services estimated that extending the cut “is likely to add between 750,000 to 1 million jobs.”
– Susan Wachter, a finance professor at the University of Pennsylvania’s Wharton School, calculated that the payroll tax cut “would add 1 percentage point to economic growth and create 1 million jobs next year.”
– Regional Economic Models Inc. estimated that the cut would pump “$120 billion into U.S. households in 2012.”
“If the Europe mess weren’t there, there would be a good case for letting taxes go back up,” said Joel Prakken, the chairman of Macroeconomic Advisers. “But a combination of a big tax increase plus the threat from Europe, when the economy is still in the doldrums — why take that risk?” If the House does vote down the Senate’s bill, the Senate will have to come back into session in order to craft a final agreement.
By: Pat Garofalo, Think Progress, December 19, 2011
The Pointlessness Of Being A Republican House Speaker
It appears that the House will vote later today on a plan to extend payroll tax cuts for two more months that breezed through the Senate by an 89-10 margin over the weekend. But there’s no suspense: Speaker John Boehner even says it’s going to fail. So why go ahead with the vote? There are some technical and procedural reasons, but it probably has more to do with an attempt at face-saving on the speaker’s part.
The problem for Boehner, as has been amply demonstrated this year, is that he’s a speaker who lacks the muscle typically associated with his title. This really isn’t his fault. The GOP’s House membership can roughly be divided into two groups: 1) Conservative true believers (many of whom won their seats in 2010) who embody the Tea Party’s anti-Washington, anti-Obama, anti-compromise absolutism; and 2) conservatives who have some pragmatic instincts but who are terrified of acting on them in the Obama era, lest it prompt a primary challenge from a Tea Party purist.
Now consider what Boehner, an 11-term House incumbent who led the GOP in the lower chamber during the final few years of the Bush presidency, represents to the average Tea Party activist: the exact sort of entrenched D.C. insider who spent the Bush years signing off on W’s big government agenda and giving conservatism a bad name, thereby abetting the rise of Obama in 2008. He managed to secure the speaker’s gavel for the 112th Congress mainly by being in the right place at the right time, but he’s had to wield it with the knowledge that scores of his members (along with the conservative activists and media personalities who have credibility with the Tea Party base) are ready to punish him the minute he sells them out. Add in the presence of an ambitious No. 2 House GOP leader who isn’t very fond of Boehner and who enjoys far more trust from the Tea Party crowd, Eric Cantor, and it becomes clear that Boehner is essentially a speaker-in-name-only.
Which makes situations like the payroll tax debate painful to watch. The rate is set to rise to 6.2 percent unless an agreement can be reached by the end of the year, and after some intense posturing, it seemed like one had been struck over the weekend, with Senate Democrats and Republicans voting nearly unanimously to extend it through February and to pay for it with a series of small cuts previously agreed to by both parties during deficit reduction talks. To mollify Republicans, a provision was included to force Obama to decide on the Keystone XL pipeline by February. The deal could hardly have been described as a big win for either side. It was what it was: a way to prevent a tax increase on millions of middle class Americans that neither party wants to be blamed for.
Boehner was well aware of this. Senate Minority Leader Mitch McConnell kept him in the loop as he negotiated with Majority Leader Harry Reid, with Boehner saying then: “If the Senate acts, I’m committed to bringing the House back — we can do it within 24 hours — to deal with whatever the Senate does.” But when McConnell and Reid struck their deal and the Senate approved it on Saturday, Boehner took part in a conference call with the House’s GOP members. According to numerous reports, he started out by calling it a “good” deal and expressing his support. But then Cantor and his allies trashed it, and so did numerous other members on the call. A strong speaker, one who isn’t constantly on guard against potential mutinies, might have laid down the law at this point and leaned on his leadership team to twist arms and bring the membership into line. But Boehner was in no position to do that, and he hasn’t been all year.
So that was that. By Sunday, Boehner was on television calling the deal unacceptable, vowing that the House GOP wouldn’t approve it, and raising the possibility that the tax cuts will expire at the end of the year. Which brings us to today’s pointless vote. Asked by Greg Sargent to reconcile Boehner’s eagerness to move on a McConnell-Reid deal last week with his new position, Boehner’s spokesman claimed there was no inconsistency because the speaker had only said that the House would act on it — not that the vote would turn out a certain way.
Believe that if you want, but this sure feels like only the latest episode in which Boehner wanted to protect his party from inflicting political damage on itself but had no standing to do so.
By: Steve Kornacki, Salon War Room, December 19, 2011
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