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Our Narrow And Wrong Headed Economic Debate

There’s a janitor who lives in a studio apartment just outside of Stevens Point, Wis. He cleans the math and science buildings at a state university, a job he’s been doing for about 18 months, after a year of unemployment. He’s 43 and last year made $24,622. He doesn’t have kids, so he doesn’t qualify for a child-care tax credit. He doesn’t own a home or a hybrid car — those credits don’t apply to him, either. He hasn’t been enrolled in school since the 10th grade, so he definitely doesn’t qualify for any education credits or deductions. He just learned that Gov. Scott Walker’s new budget has slashed his benefits and that next year he’ll be bringing in about 16 percent less per month. And when he sits down to do his taxes next week, he’ll find that he paid the federal government around $1,400 in 2010.

 About a thousand miles to the east, in Fairfield, Conn., General Electric, one of the world’s largest multinational corporations, posted a $14.2 billion profit for 2010. When its accountants were finished working their magic, the company didn’t owe a single dollar in federal taxes.

“People can think what they think,” said Jeff Immelt, GE’s chief executive, in response to a growing anger to this story, first reported last week by the New York Times. What else is there to think, one wonders, but that with the muscle and money of lobbyists and lawyers, with the access and influence built over generations, GE has done not just the audacious but the outrageous. And it is not alone.

Exxon Mobil, for example, made $19 billion in profits in 2009 but paid no federal income taxes. In fact, it received a $156 million rebate from the IRS. Bank of America received a $1.9 billion tax refund from the IRS last year, even though it made $4.4 billion in profits and was handed a nearly $1 trillion bailout by taxpayers. The list, inconceivably, goes on.

And yet the conversation in Washington hasn’t turned to aggressively closing the loopholes that GE’s lobbyists created for its accountants to exploit. It hasn’t turned toward ending the ridiculous tax breaks on corporate dividends and capital gains that allow hedge fund managers and the very wealthy to pay the government a lower percentage than their middle-class employees. Instead, Congress is debating whether $33 billion in cuts to the social safety net is enough to make the Tea Party happy.

While Republicans in the House have stopped talking nearly altogether about jobs (and have embraced a budget that could cost the economy 700,000 of them, according to Moody’s chief economist Mark Zandi), the head of the President’s Council on Jobs and Competitiveness, someone charged with finding a way to sustained job growth, is none other than Jeff Immelt himself, tax evader in chief. This is a systemic problem that neither belongs to nor can be solved by a single man. But for Immelt to keep his post with the administration now would be bad politics, bad policy and bad messaging. Yet as I write this, it doesn’t look as if he will be asked to step down.

Still, I am hopeful.

I am hopeful because an incredible spirit and energy has been unleashed. It was first shown during the Wisconsin labor battle, and it is being sustained and nurtured, and broadened to communities across the country. People are showing that they will not abide a system that finances corporate greed on the backs of the poor and middle class.

On Monday, the nation commemorated the assassination of Martin Luther King Jr., who was killed in Memphis, where he had gone to fight for the rights of sanitation workers. Thousands gathered across America for a national day of action supporting public employees, other working people and trade unions in a common quest for jobs, justice and decency for all citizens. They participated in teach-ins, protests, demonstrations and vigils, all with a simple and deeply American message: It is time for the richest, most privileged among us to pay their fair share.

They spoke of the widening gulf in American politics, between the powerful and the powerless, between those who most need the government’s assistance and those most likely, instead, to receive it. They are not alone. For all the disappointment that progressives feel about this Congress, there are members who have been leaders and allies on Capitol Hill.

Consider Sen. Bernie Sanders (I-Vt.). Always the people’s champion, Sanders has called for closing corporate tax loopholes, which, if done, would raise more than $400 billion over a 10-year period. He’s also introduced legislation imposing a 5.4 percent surtax on millionaires that would yield up to $50 billion more a year — more than enough to protect Pell Grants and Head Start and other programs facing the chopping block.

He is joined by Rep. Jan Schakowsky (D-Ill.), who has introduced legislation to create a separate tax bracket for millionaires and billionaires — an option that garners the support of 81 percent of the American people, according to an NBC/Wall Street Journal poll.

The common sense, humane response at this moment is to fight to reset the terms of a suffocatingly narrow and wrongheaded debate. This is the heritage of the progressive movement and, indeed, our obligation. The best principles of our country have been trampled by corporate immorality and right-wing extremism. But they can be restored. Martin Luther King Jr. knew as much when he fought for the sanitation workers of Tennessee 43 years ago. Now, we must know it too.

By: Katrina Vanden Heuvel, Opinion Writer, The Washington Post, April 5, 2011

April 10, 2011 Posted by | Big Business, Budget, Class Warfare, Congress, Corporations, Democracy, Economy, General Electric, Ideologues, Jobs, Labor, Lawmakers, Middle Class, Politics, Public Employees, Right Wing, Tea Party | , , , , , , , , , , , | Leave a comment

Government Shutdown: It’s Not Really About Spending

If the federal government shuts down at midnight on Friday — which seems likely unless negotiations take a sudden turn toward rationality — it will not be because of disagreements over spending. It will be because Republicans are refusing to budge on these ideological demands:

• No federal financing for Planned Parenthood because it performs abortions. Instead, state administration of federal family planning funds, which means that Republican governors and legislatures will not spend them.

• No local financing for abortion services in the District of Columbia.

• No foreign aid to countries that might use the money for abortion or family planning. And no aid to the United Nations Population Fund, which supports family-planning services.

• No regulation of greenhouse gases by the Environmental Protection Agency.

• No funds for health care reform or the new consumer protection bureau established in the wake of the financial collapse.

Abortion. Environmental protection. Health care. Nothing to do with jobs or the economy; instead, all the hoary greatest hits of the Republican Party, only this time it has the power to wreak national havoc: furloughing 800,000 federal workers, suspending paychecks for soldiers and punishing millions of Americans who will have to wait for tax refunds, Social Security applications, small-business loans, and even most city services in Washington. The damage to a brittle economy will be substantial.

Democrats have already gone much too far in giving in to the House demands for spending cuts. The $33 billion that they have agreed to cut will pull an enormous amount of money from the economy at exactly the wrong time, and will damage dozens of vital programs.

But it turns out that all those excessive cuts they volunteered were worth far less to the Republicans than the policy riders that are the real holdup to a deal. After President Obama appeared on television late Wednesday night to urge the two sides to keep talking, negotiators say, the issue of the spending cuts barely even came up. All the talk was about the abortion demands and the other issues.

Democrats in the White House and the Senate say they will not give in to this policy extortion, and we hope they do not weaken. These issues have no place in a stopgap spending bill a few minutes from midnight.

A measure to prohibit the Environmental Protection Agency from regulating greenhouse gas emissions came up for a Senate vote on Wednesday and failed. If Republicans want to have yet another legislative debate about abortion and family planning, let them try to pass a separate bill containing their restrictions. But that bill would fail, too, and they know it, so they have chosen extortion.

The lack of seriousness in the House is reflected in the taunting bill it passed on Thursday to keep the government open for another week at an absurdly high cost of $12 billion in cuts and the ban on District of Columbia abortion financing. The Senate and the White House said it was a nonstarter. Many of the same House members who earlier had said they would refuse to approve another short-term spending bill voted for this one, clearly hoping they could use its inevitable failure in the Senate to blame the Democrats for the shutdown. What could be more cynical?

The public is not going to be fooled once it sees what the Republicans, pushed by Tea Party members, were really holding out for. There are a few hours left to stop this dangerous game, and for the Republicans to start doing their job, which, if they’ve forgotten, is to serve the American people.

By: Editorial, The New York Times, April 8, 2011

April 8, 2011 Posted by | Abortion, Congress, Conservatives, Consumers, Democrats, Economy, Federal Budget, GOP, Government Shut Down, Governors, Health Reform, Ideology, Lawmakers, Planned Parenthood, Politics, Public, Public Employees, Republicans, Right Wing, Senate, State Legislatures, Tea Party, Voters, Women's Health, Womens Rights | , , , , , , , | Leave a comment

Wisconsin Supreme Court Race Throws A Spanner In The Works Of Wisconsin Wingnuts

While Wisconsin Congressman Paul Ryan prepares to shut down the federal government to prove that government is bad, analysts say the radical agenda of Wisconsin Governor Scott Walker suffered a major set back today as his good friend incumbent Justice David Prosser was defeated for Wisconsin Supreme Court. The AP unofficial vote count, with 100 percent of the precincts reporting, puts challenger Joanne Kloppenburg ahead by slightly more than 200. A recount is doubtless on the way.

In a state that has never unseated a conservative Supreme Court justice, people power fueled a concentrated effort to deny the Imperial Walker one branch of government. Walker’s opponents hope a Kloppenburg victory will swing the Supreme Court in a more independent direction and set the stage for the court to strike down Walker’s controversial collective bargaining law. While the fate of the law is uncertain, Kloppenburg’s three week sprint from dead-in-the-water to victor may give Walker, Ryan and other Wisconsin politicians pause as they rush to radically reshape government to benefit the privatizers and profiteers. 

Sleepy Court Race Electrifies the State

While it may seem odd to many Americans, Wisconsinites like to elect their judges. Although an elected judiciary has its problems (namely, unseemly high-dollar elections), the ballot box sometimes hands citizens a rare opportunity to un-elect judges — and that is what many Wisconsinites decided to do today.  Prosser, a former Republican Assembly Speaker, stumbled when his campaign embraced Walker’s election.

The Kloppenburg victory is stunning. Six weeks ago, sitting Judge David Prosser was a shoo-in and the challenge by Assistant Attorney General Kloppenburg was a snooze fest. But something happened on the way to the high court. A governor, who was elected to create jobs, took office and quickly moved to disenfranchise voters and kneecap unions so they could no longer be a viable force in state elections. The raw power grab sparked a spontaneous uprising, the likes of which this state has never seen, and the Supreme Court race was the next vehicle for people to have their voices heard.

Proxy Fight Over Worker Rights

The whole country took notice when firefighters, teachers and cops stood with working families across Wisconsin to say ‘no’ to Walker’s radical plans to bust unions, cut $1 billion from schools and privatize the university system.

When his “budget repair bill” was passed March 9th, many national observers thought the fight was over.  With large margins in both houses, Walker’s stranglehold on government seemed invincible.

But irate Wisconsinites fought back on multiple fronts, filing lawsuits over the way in which Senate leaders rammed the bill through with less than the requisite notice required under the state open meetings law, blocking the bill’s implementation. They filed recall petitions against eight Wisconsin senators and this week delivered the requisite signatures for two of those recalls well ahead of schedule. They turned their attention to the heretofor unnoticed race for Wisconsin Supreme Court. Within days, handmade signs for Joanne Kloppenburg popped up across the state. Many voters understood that to win any of the battles ahead over worker rights, over the recalls, over redistricting and more, a more balanced judiciary was needed.

Kloppenburg went from being a long-shot to victory in a three-week sprint marked by huge independent expenditures on both sides. The anticipated recount will keep the juices flowing and will fuel the remaining recall fights.

Shock Doctrine at Work

While some voters believe the court will act as a check and balance on the madness at the state level, they are concerned that Paul Ryan continues to run amok at the federal level — threatening a complete government shut down. At the same time that Walker was working to obliterate unions and privatize public schools, Ryan, Chair of the House Budget Committee, decided to go after Grandma with the complete privatization of Medicare. His radical budget bill, unveiled this week, slashes trillions of dollars from America’s social safety net and throws the elderly into the private insurance market with a “voucher” in their pocket.

Less interested in balancing the budget than redistributing wealth, his budget plan would funnel billions into the pockets of big insurance firms while also giving a ten percent tax break to corporations and the very richest Americans.

What is really going on here? Naomi Klein warned in her groundbreaking book “Shock Doctrine” that the right-wing excels at creating crises, real and imagined, to viciously advance their pro-corporate anti-government agenda. She credits economist Milton Friedman who observed that “only a crisis—actual or perceived—produces real changes. When the crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is out basic function: to develop alternatives to existing policies to keep them alive and available until the politically impossible becomes politically inevitable.”

UW Professor Joel Rogers wrote recently:  “As explained by Grover Norquist and Karl Rove, this project aims at national repeal of most of democratic achievements of the 20th century, a return to business domination of public life not seen since the Gilded Age and McKinley.”

The Wall Street financial crisis caused by years of deregulation and lack of government oversight cost Americans eight million jobs, tanking federal and state tax receipts and creating budget shortfalls. Ryan and Walker are moving to take advantage this real jobs crisis to cook up a fake deficit crisis to advance a radical agenda that is hostile to the very idea of government – the idea that sometimes services are best provided and things are best accomplished collectively, for the public good, and not for corporate profit.

Today, many voters believe that this agenda was checked in Wisconsin. While another recount battle looms, voters of Wisconsin are pledging that they will not allow this victory to be stolen.

By: Mary Bottari, Center For Media And Democracy, April 6, 2011

April 6, 2011 Posted by | Banks, Collective Bargaining, Corporations, Debt Crisis, Deficits, Democracy, Economy, Elections, GOP, Gov Scott Walker, Government Shut Down, Labor, Medicare, Middle Class, Politics, Public Employees, Rep Paul Ryan, Republicans, Right Wing, Union Busting, Unions, Voters, Wisconsin, Wisconsin Republicans | , , , , , , , , , | Leave a comment

More Fallout From Gov Walker’s Overreach: Abele Defeats Stone For Milwaukee County Executive

Chris Abele – a 44-year-old philanthropist, scion of a wealthy Boston family and political neophyte – handily defeated state Rep. Jeff Stone (R-Greendale) at the polls Tuesday to become the next Milwaukee County executive.

Abele had 61% of the vote to 39% for Stone, according to unofficial results with all votes counted.

Abele said he would immediately tackle tough county problems and work cooperatively with Milwaukee Mayor Tom Barrett and other leaders in the county.

“It is time for a new approach,” Abele said from his election party at the historic Pabst Brewery. “It is time to stop working apart and to start working together.”

He pointed to the undeveloped Park East property nearby as something on which the city and county needed to collaborate.

“I don’t see the mayor as a competitor,” Abele said. “I see him as a partner and a friend.”

Stone conceded the race about 10:05 p.m., promising to work with Abele to help fix the county’s problems. Stone called the campaign an amazing race run in “an unusual environment.”

Abele campaigned with $1 million of his own money as someone with fresh ideas to tackle the county’s nagging financial problems. Though light on specifics, Abele outlined an approach that emphasizes efficiency moves. He put much of his advertising firepower into trying to fuse Stone with Gov. Scott Walker and his controversial push to end most collective bargaining for public employees.

Stone said his loss “reflects the divide we have right now in Wisconsin.” He also said the big turnout in Milwaukee “was a reflection of some of the unrest we had in Madison” over Walker’s union measure.

Walker held the county executive slot for eight years before his election as governor last fall when he defeated Barrett.

Stone in his campaign faulted Abele as inexperienced and callous to everyday concerns, pointing to a long-delayed resolution of Abele’s 1996 drunken driving case, his avoidance of state income taxes and his dispute with the IRS over a $2.3 million federal tax bill.

The win gives Abele the final year left in Walker’s county term. Abele has said he plans to run for a full four-year term as executive in spring 2012.

Though a longtime supporter of Democratic candidates and liberal causes, Abele ran for county executive – officially a nonpartisan office – often sounding like a conservative. Like Stone, Abele vowed not to raise taxes and said he’d work hard to attract new business. Abele said he’ll push to wipe out inefficiencies and service duplications and might turn to privatizations, selling off county assets and marketing park services to the suburbs.

He also hinted at layoffs as a way to bring the county’s budget into long-term balance, promising unspecified “tough cuts.”

He said he wouldn’t be surprised “if we end up with a government that looks smaller.”

Mix into that formula Abele’s frequent assertion that he’ll serve as a cheerleader for Milwaukee, whether stalking development and jobs or demanding a fairer shake for the area when lobbying the state.

Calls for cultural change

He’s vowed to bring on a culture change in county government, where getting results is rewarded and poor performers are called on the carpet.

“The real key here is changing the way we think about stuff, changing this notion that the only solution to everything is either cutting services or raising taxes,” Abele said.

Abele has never held a government job, in contrast to Stone, who has spent the past 17 years as a state and local official. Stone derided Abele as “an amateur” whose government inexperience would hurt the county.

Abele sought to make a virtue of his clean political slate and said he would apply what he’s learned over the past 15 years in running the Argosy Foundation, a family charity, and two small businesses. Argosy and Abele personally have given heavily to arts, environmental, civic and community groups and Abele has served on many local nonprofit agency boards.

Abele’s introduction to the county’s financial concerns came as a member of the Greater Milwaukee Committee and a task force that concluded in 2006 that county government could be phased out, its services parceled out to the state, other municipalities and newly formed parks and transit districts.

As a candidate for county office, however, Abele has been more cautious. He says he’ll put his faith in detailed studies and proven practices to fix what’s wrong with the county.

Restructuring the county’s mental health programs by shifting to smaller, community-based care is something Abele has identified for change. He also wants to push for creation of a local government insurance pool as a way to trim county health care costs. He says he’ll cut back on county employees’ use of cars and cell phones and will expand energy audits of county buildings.

Stone on defensive

Stone found himself on the defensive over Walker’s collective bargaining bill since voting twice for it in February, following a three-week period in which news coverage of protests in Madison overshadowed other political news.

While often protesting critic’s claims he’d be a carbon copy of Walker, Stone said he and Walker shared a similar conservative philosophy. Stone also advocated for county policies pioneered by Walker, including ruling out tax increases, pursuing a possible long-term lease of Mitchell International Airport to a private firm and relying on business expansion to drive a county financial resurgence.

A key part of Stone’s plan to fix the county’s long-term budget shortfall was to reform employee health care with a wellness incentives and primary care available in or near county offices.

The job pays $129,114 a year. Unlike Walker, who returned up to $50,000 in salary a year during his tenure, Abele says he’ll accept the full pay.

By: Amy Hetzer and Mark Johnson, Milwaukee Journal Sentinel, April 6, 2011

April 6, 2011 Posted by | Class Warfare, Collective Bargaining, Conservatives, Elections, GOP, Gov Scott Walker, Middle Class, Politics, Public Employees, Republicans, Wisconsin, Wisconsin Republicans | , , , | Leave a comment

Wisconsin Waterloo: Where The GOP Sees Demons To Attack, Voters See Themselves

Wisconsin Democrats are filing recall petitions that could result in the Wisconsin Senate being controlled by Democrats. Summer 2011 will bring white-hot midterm elections and a potential Wisconsin Waterloo for the GOP that is spreading to other states and could shift the tectonic plate of American politics.

In Wisconsin, Ohio and other states a powerful backlash is brewing from giant swaths of voters who failed to turn out for Democrats or regret their votes for Republicans in 2010. They feel demonized by GOP attacks and financially threatened by GOP policies. They will be highly motivated to vote.

Wisconsin Democrats could win the three state Senate seats necessary to turn control of the Wisconsin Senate to the Dems, because voters do not want political holy wars against teachers, public workers or anyone else. They do not want fanatics in politics, fiats by government, incendiary partisanship or crusades against collective bargaining, which voters widely believe is a valued part of the American system.

Recently the Polish trade union Solidarity, one of the great voices for freedom in modern history, endorsed the Wisconsin workers and condemned the attacks on them by GOP Gov. Scott Walker. More voters agree with Solidarity than with Wisconsin Republicans.

In Ohio, the widely unpopular Republican governor, John Kasich, who was caught on tape verbally abusing a police officer who gave him a ticket, has now added both police and firefighters to the list of enemies he attacked in legislation. Most Americans view firefighters and police as heroes who risk their lives to save their neighbors, not as demons to attack or targets to have their financial security threatened.

In Washington, the GOP has added the venerable AARP to its enemies list. AARP has long represented tens of millions of seniors with honor. For Republicans to launch a Nixonian attack against them is an act of political stupidity that will not be well-received by senior voters.

Republicans wage holy war against National Public Radio, one of the fairest media in the nation, and one that provides vital service to small-town America and includes many Republicans among its fans.

Republicans threaten to shut down the government to pursue their war against Planned Parenthood, which is supported by many Republican women, while they attack a long list of programs important to mainstream American women. Many Republicans oppose efforts to achieve pay equity for women.

House Republicans even want to cut programs that help homeless veterans, cuts that Sens. Harry Reid (D-Nev.) and Sherrod Brown (D-Ohio) speak eloquently against.

The Texas GOP is likely to attempt to cheat Hispanics out of representation in Congress through a gerrymander similar to that once orchestrated by disgraced former House Republican Leader Tom DeLay. Many Republicans use tactics on immigration that are anathema to many Hispanics.

House Republicans will be widely blamed for any government shutdown or economic collapse from a failure to extend the debt ceiling if they pursue their partisan and ideological vendettas and refuse to accept 50-50 offers from Democrats.

A Wisconsin Waterloo is a real danger to Republicans. Where the GOP sees demons to attack, many voters see themselves. 

By: Brent Budowsky, The Hill, April 4, 2011

April 5, 2011 Posted by | Class Warfare, Collective Bargaining, Elections, GOP, Gov Scott Walker, Governors, Middle Class, Politics, Public Employees, Republicans, States, Voters, Wisconsin, Wisconsin Republicans | , , , , , , , , , | Leave a comment