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Modern Snake Oil: “We Have No Revenue Problem”

OK, this is the day everyone hates. You have to pay your taxes. Who wants to write that check? Nobody, probably.

The truth, however, is that Rep. Paul Ryan, the Tea Party, and most politicians are not being honest when they tell us there is no revenue problem, only a spending problem.

The Associated Press reports today that an IRS analysis tells us that 45 percent of Americans will pay no federal income taxes for 2010. Plus, the 400 Americans with the highest adjusted gross incomes averaged $345 million for the year. Their average federal income tax rate was 17 percent, down from 26 percent in 1992. Wow, and they need another tax break?!

This confirms the Warren Buffett line that his secretary pays a higher percentage of her income in taxes than he does.

But here is our problem: We cannot come close to dealing with this deficit unless we both cut spending and raise revenue. We certainly won’t accomplish anything unless we deal with the tax problem and reform our tax code.

I firmly believe that every American who works or gets income should pay something in federal taxes. Even if it is a small amount. This by itself won’t do much to dent the deficit, but it would be important as a symbol that everyone is in this together. Second, and most important, the gap between rich and poor and the middle class is widening in this country. Those who earn over a million dollars did not deserve an average tax cut of $120,000 under George Bush; they certainly don’t need that raised to $200,000 under the Ryan plan.

We need to recognize that the richest 2 percent of Americans should pay more, but we also need to make this tax system make sense. How can you have a society where nearly half the income earners pay no income taxes, due to deductions, loopholes, and special deals? 

I am not arguing that struggling families should be hit with a whooping tax bill, but, rather, that our politicians should be honest with the American people. If you are fighting two wars, you have to pay for them. If you have to save the car companies and our financial institutions, you have to pay, at least initially. If you are going to provide Medicare, Medicaid, Social Security, education, bridges, roads, and air traffic controllers, for that matter, you have to have the revenue.

It is just plain dishonest to put forth a budget and a plan that says “we have no revenue problem.” That is modern snake oil. It is time that we dealt with our tax problem, otherwise we won’t really be dealing with our deficit at all.

By: Peter Fenn, U.S. News and World Report, April 18, 2011

April 18, 2011 Posted by | Budget, Congress, Deficits, Democracy, Economy, Government, Ideology, Income Gap, IRS, Lawmakers, Middle Class, Politics, Rep Paul Ryan, Right Wing, States, Tax Loopholes, Taxes, Tea Party, War, Wealthy | , , , , , , , , , , , , , | Leave a comment

The Irony Of Tax Day: The Dwindling, Victorious Tea Party

In case you didn’t notice, today is Tax Day, which means it’s also the second anniversary of one of the tea party movement’s biggest moments, April 15, 2009, when dozens, if not hundreds, of well-attended protests were held around the country.

It was a coming-out party of sorts for the movement. No one really knew what the tea party was at that point, and, as momentum built toward the Tax Day rallies, details began to emerge regarding just who they were, and who was organizing them.

Today, the movement seems to be dwindling.

Tax Day, 2011, came and has largely gone without the same kind of massive, irate throngs in every state and major city. We can attribute that, to some degree, to the scheduling shift of Tax Day to April 18 and the movement’s consequent dispersed focus, holding rallies on Friday, Monday, and over the weekend, rather than on just a single day. But you can’t deny that, as an activist movement, the tea party has lost some momentum, attendance-wise.

A Michele Bachmann rally in South Carolina Monday drew a measly 300 people. A few weeks ago, maybe a couple hundred showed up to a Capitol Hill protests held by Tea Party Patriots, the nation’s largest tea party membership group, which once estimated its membership at over 15 million. It was hard to tell how many were there to participate and how many were there to spectate and the tea partiers were almost outnumbered by the reporters.

A Virginia tea party activist told me recently that members of his group are spread too thin. “We’re kind of saturated right now,” he said, explaining that different people and groups ask them to do too many things. He showed me a few of the emails sent around to members, asking various things of them. It’s a problem, he said.

As the activist infrastructure has built up, so have the demands on individual activists. With the initial fervor wearing off, it makes for a tired bunch of crusaders.

And yet the tea party seems to have accomplished its main goal: bending the will of the Republican Party.

Republican politicians widely cater messages and platforms to a tea party audience. Listening to what is said by Republican presidential contenders, House members, and candidates for office, it’s tough to argue the tea party hasn’t left its mark. It’s taboo not to talk about drastic cuts to federal spending, whether or not one has a plan for the specifics.

During the midterms, Republican candidates met with tea party groups, seeking their approval. It became impossible to distinguish a “tea party” candidate from a regular Republican.

That effect has carried over into 2012. The Tea Party Express will partner with CNN to host a GOP presidential debate, and the movement’s influence will finally be institutionalized in the 2012 primary contest.

Perhaps most significantly, Washington is now engaged in a serious discussion of how to reduce spending levels over the long term. While President Obama rejected the House GOP’s drastic 2012 budget proposal out of hand, it’s safe to say he was forced by November’s results and the tea-party-fueled GOP House takeover to propose a big number, $4 trillion, of cuts from the deficit over the next 12 years.

The tea party movement can legitimately take some credit for that. We’ll find out, as the 2012 election approaches, just how much gas is left in the tea party’s tank. It’s likely that the GOP 2012 contest and the tea party’s rallies will blend into one continuous political event, with candidates taking turns on stage and with lots of people turning out.

But the movement is in an ironic place now. Without an election this year and with attendance tapering off, it’s also become institutionalized as a fixture in American politics, having possibly swayed enough 2012 candidates to preempt the presidential primary from even being a flashpoint in the GOP’s identity.

Apparently what we’re seeing now is what victory looks like.

By: Chris Good, The Atlantic, April 18, 2011

April 18, 2011 Posted by | Congress, Conservatives, Deficits, Economy, Elections, GOP, Government, Ideologues, Ideology, Liberty, Media, Politics, President Obama, Republicans, States, Taxes, Tea Party, Voters | , , , , , , , , , , | Leave a comment

Martial Law Now A Reality In Michigan:The Voter’s Voice Doesn’t Really Matter Anymore

Last week saw the layoff of every public school teacher in Detroit, and the initial fruition of the highly-contested bill that allows emergency financial managers to have unconditional control over a city in a financial emergency. The city of Benton Harbor, Michigan, declared to be in a financial emergency by Governor Rick Snyder, now knows that, according to Snyder, the voter’s voice doesn’t really matter anymore.
 
Joseph Harris, the city’s new Emergency Financial Manager (EFM), dismantled the entire government, only allowing city boards and commissions to call a meeting to order, approve of meeting minutes and adjourn a meeting.
 
The law that allows Harris to “exercise any power or authority of any office, employee, department, board, commission, or similar entity of the City, whether elected or appointed,” was passed in March after the urging of Gov. Snyder, and despite thousands of protesters who came to the Lansing capitol throughout February and March.
 
Michigan AFL-CIO released a press release in response to Benton Harbor: “This is sad news for democracy in Michigan. It comes after the announcement of Robert Bobb in Detroit ordering layoff of every single public school teacher in the Detroit Public School system,” says Mark Gaffney, President of Michigan AFL-CIO. “With the stripping of all power of duly elected officials in Benton harbor and the attack on Detroit school teachers, we can now see the true nature of the Emergency Manager system.”
 
Earlier in the week, TMP Muckraker reported that the Detroit Public Schools’ EFM, Robert Bobb, sent 5,466 unionized teachers layoff notices “in anticipation of a workforce reduction to match the district’s declining student enrollment.” The notices are a part of the Detroit Teachers Federation collective-bargaining contract. TPM also reported that “Non-Renewal notices have also been sent to 248 administrators, and the layoffs would go into effect by July 29.”

By: Jennifer Page, Center for Media and Democracy, April 18, 2011

April 18, 2011 Posted by | Collective Bargaining, Conservatives, Democracy, Education, Elections, GOP, Government, Governors, Ideology, Jobs, Lawmakers, Middle Class, Politics, Public Employees, Republicans, Right Wing, State Legislatures, States, Union Busting, Unions, Voters | , , , , , , , , , , , , | Leave a comment

Judicial Elections: You Get The Judges You Pay For

Legal elites must come to terms with a reality driven by the grass-roots electorate: judicial elections are here to stay. Given this reality, we should focus on balancing important First Amendment rights to financially support campaigns with due process concerns about fair trials.

An ugly, expensive campaign for a seat on the Wisconsin Supreme Court is but the latest example of what is now common in judicial elections: millions of dollars in misleading television ads, subsidized by lobbies that have cases before the bench.

In 39 states, at least some judges are elected. Voters rarely know much, if anything, about the candidates, making illusory the democratic benefits of such elections. Ideally, judges should decide cases based on the law, not to please the voters. But, as Justice Otto Kaus of the California Supreme Court once remarked about the effect of politics on judges’ decisions: “You cannot forget the fact that you have a crocodile in your bathtub. You keep wondering whether you’re letting yourself be influenced, and you do not know.”

The need to run multimillion-dollar campaigns to win election to the court in much of the country renders the crocodile ever more menacing.

For more than a quarter of a century, voters have rejected efforts to move from an elective to an appointive bench. Last year, despite a campaign led by Sandra Day O’Connor, Nevada voters became the latest to reject such a change.

Scholars, judges and advocates who find intellectual comfort in seeking to eliminate judicial elections are indulging a luxury that America’s courts can no longer afford. Instead they should focus on incremental changes to what Justice O’Connor bluntly calls the “wrong” of “cash in the courtroom.”

More than 7 in 10 Americans believe campaign cash influences judicial decisions. Nearly half of state court judges agree. Never before has there been so much cash in the courts. Measured only by direct contributions to candidates for state high courts, campaign fund-raising more than doubled in a decade.

But this is only part of the financial story. Nationally, in 2008, for the first time, noncandidate groups outspent the candidates on the ballot.

Perhaps most tellingly, a study of 29 campaigns in the 10 costliest judicial election states over the last decade revealed the extraordinary comparative power of “super spenders” in court races. The top five spenders in each of the elections laid out an average of $473,000.

In 2009, the United States Supreme Court dealt with this issue, holding that due process is violated when a judge participates in a case involving a party that spent a great deal of money on the judge’s election effort. The case before the court involved a West Virginia Supreme Court decision overturning a jury verdict that awarded a $50 million judgment against Massey Coal Company.

One of the justices in the majority of that 3 to 2 decision, Brent D. Benjamin, had been elected after Massey Coal’s chief executive spent $3 million on his campaign. The United States Supreme Court held, 5 to 4, that due process was violated because of the lack of an impartial decision-maker. The court made clear, however, that campaign spending requires the disqualification of a judge only rarely.

A year later, the high court held, in the Citizens United case, that corporations and unions have the First Amendment right to spend unlimited amounts of money in election campaigns. In light of these two decisions, corporate and union officials must engage in a perverse guessing game: they want to spend enough to get their candidate for the bench elected, but not so much as to require the judge’s disqualification if the campaign is successful.

Rigorous recusal rules are an important step, but merely disqualifying a judge on occasion is insufficient. The most obvious solution is to limit spending in judicial races. States with elected judges should restrict how much can be contributed to a candidate for judicial office or even spent to get someone elected.

That solution has long been assumed to be off the table, though, because the Supreme Court ruled in 1976 that while the government can limit the amount that a person gives directly to a candidate, it cannot restrict how much a person spends on his or her own to get the candidate elected. Nevertheless, large expenditures to get a candidate elected to the bench undermine both the appearance and reality of impartial justice.

The Supreme Court’s 2009 decision properly focused on the $3 million in campaign expenditures, not the $1,000 that was directly contributed. In the legislative and executive offices, it is accepted that special-interest lobbying and campaign spending can influence votes; but that is anathema to our most basic notions of fair judging.

Thus, the Supreme Court should hold that the compelling interest in ensuring impartial judges is sufficient to permit restrictions on campaign spending that would be unconstitutional for nonjudicial elections.

States should restrict contributions and expenditures in judicial races to preserve impartiality. Such restrictions are the only way to balance the right to spend to get candidates elected, and the due process right to fair trials.

By: Erwin Chemerinsky and James J. Sample, The New York Times, April 17, 2011

April 18, 2011 Posted by | Campaign Financing, Constitution, Corporations, Democracy, Elections, Lawmakers, Politics, States, Unions, Voters | , , , , , , , , , , , , , | Leave a comment

A Year After BP’s Oil Spill, Congress Sits Idly By: “It’s Not In The Headlines Anymore”

A year has passed since BP PLC’s Macondo well exploded in the Gulf of Mexico, killing 11 rig workers and launching the nation’s worst oil spill — and an all-encompassing environmental drama that played out for months as the oil industry and federal government struggled to contain the gusher.

But the heart-wrenching images of oil-slicked pelicans and the otherworldly videos of oil spewing from the seafloor largely seem to have faded from the minds of lawmakers on Capitol Hill. A year after the blowout, members of Congress have made little progress toward addressing the issues raised by the disaster.

The reasons for their lassitude are numerous.

Chief among them is the highly partisan environment on Capitol Hill, where a narrow Democratic majority in the Senate struggles to find common ground with the overwhelmingly Republican House.

“We haven’t responded because of the general polarization that has affected us in the last few months,” said Senate Energy and Natural Resources Chairman Jeff Bingaman (D-N.M.).

Also key is a shift in concern over offshore drilling safety, regulatory reform and coastal restoration to a closer-to-the-belt fear about the economic ramifications of escalating gasoline prices.

“It’s not in the headlines anymore,” said Rep. Joe Barton(R-Texas), the former ranking member of the House Energy and Commerce Committee who infamously apologized to BP’s then-CEO Tony Hayward last summer for having to endure what Barton characterized as a White House “shakedown.”

Indeed, in the months since BP contained the gusher, a nuclear crisis in Japan and political unrest in the Middle East have sparked a rapid rise in crude oil prices, shifting the energy conversation from one disaster to another. And a resumption of deepwater drilling in the Gulf of Mexico — albeit slowly — has dampened the urgency to pass a spill-response bill that would end the Obama administration’s ban on offshore exploration, a GOP priority.

Still, the lack of progress on a congressional spill response is not sitting well with many in the environmental community.

“I don’t think anybody in Congress has a legitimate excuse for the fact that they’ve done nothing to respond to the worst environmental disaster this nation has ever seen,” said Regan Nelson, senior oceans advocate for the Natural Resources Defense Council.

Nor has it quelled the concerns of some of the staunchest environmental Democrats on Capitol Hill.

“We should have moved last year. We need a response,” said Rep. Henry Waxman (D-Calif.), ranking member on the House Energy and Commerce Committee.

History repeating itself?

But there is historical context for the delay. Congress waited a year and a half after the Exxon Valdez oil tanker ran aground in Alaska’s Prince William Sound in March 1989 before taking legislative action.

That spill happened at the beginning of the 101st Congress, when Democrats held the majority in both chambers.

The Gulf of Mexico oil spill is different. The disaster occurred in an election year, and although the House was able to pass a Democrat-authored spill-response measure last summer, the Senate ran out of political steam to push a bill through in the weeks before the election or in the “lame duck” session last fall.

The House-passed measure (H.R. 3534 (pdf)), which incorporated Democratic language from three House committees, would have beefed up offshore worker and environmental safety standards, imposed new ethics standards on federal drilling regulators, created a restoration program to coordinate efforts to rehabilitate the Gulf of Mexico and created a new industry-funded endowment to protect oceans, among other provisions.

It also would have eliminated liability limits on companies drilling offshore, something most Republicans and oil-state Democrats are staunchly against because of the impact it could have on smaller and independent drillers. Despite GOP resistance to the liability language and other provisions — 193 Republicans and oil-state Democrats voted against the measure — the legislation was ultimately reported favorably. But talks quickly stalled in the Senate, where Democratic margins were smaller and resistance to the liability language from two moderate oil-state Democrats was too great to allow time for passage in the waning months of 2010.

The liability issue is complex and hearkens back to the legislation passed in response to the Exxon Valdez spill. Under that law, Congress capped oil companies’ liability for economic damages related to a spill at $75 million. Oil companies are still responsible for paying the full cost of containing and cleaning up a spill.

At the Obama administration’s prodding last summer — the “shakedown” Barton referred to — BP set up an independent $20 billion claims fund to pay for spill-related damages.

And even though BP agreed to pay for all the financial costs related to its spill — such as fishermen put out of work or empty hotels at the beach at high season — many Democrats in Congress watched in horror as the price tag of those damages escalated and called for a significant hike or complete elimination of the $75 million liability limit to protect coastal residents from a future spill where the companies involved might not have such deep coffers.

Republicans and the oil-state Democrats are not necessarily opposed to raising the cap. They just do not want to eliminate it outright. Doing so would shut out smaller producers and devastate an already battered coastal economy, they say.

“I think there’s widespread consensus among Democrats and Republicans that the liability limit is too low, that it needs to be raised,” said Sen. Mary Landrieu (D-La.), one of the chief opponents of the unlimited liability language. “We want to do that in a way … that keeps the industry as robust as possible between the large multinational companies and the smaller independent companies” (E&E Daily, Feb. 2).

Landrieu is working with Sen. Mark Begich (D-Alaska) on liability compromise language that would raise the initial cap to $250 million after which an industry-funded insurance pool would kick in. But the lawmakers have been negotiating on language since last September, with new promises each week that a bill is forthcoming. They have not introduced a compromise measure yet.

Other Democrats — and a lone Republican — have introduced new measures in both the House and Senate that would eliminate the liability cap entirely.

House focus on drilling

But none shows promise of moving any time soon. Republicans in the House appear poised to take up measures that would instead accelerate domestic oil and gas production, and Senate Democratic leaders have struggled to pass even slightly controversial bills.

Indeed, the House Natural Resources Committee this week marked up three measures from Chairman Doc Hastings (R-Wash.) that would force lease sales in new areas and compel the Interior Department to speed up drilling permit processing, among other provisions.

Such a stance is garnering criticism from Democrats on and off the Hill, like Interior Secretary Ken Salazar, whose agency is responsible for overseeing offshore drilling.

“Much of the legislation I’ve seen bandied around, especially with the House Republicans, it’s almost as if the Deepwater Horizon Macondo well incident never happened,” Salazar told reporters earlier this week. “Some people seem to have gotten amnesia of Deepwater Horizon and the horrific BP spill. I don’t have amnesia” (E&ENews PM, April 12).

Interior has taken great strides to boost its regulatory structure and offshore drilling safety in the months since the spill. The agency has imposed new, stricter permitting safety standards. And it has completely reorganized the beleaguered office that oversees offshore development.

But Hastings bristled at Salazar’s remarks, saying one of his measures would strengthen drilling safety.

“The Gulf bill does two things that’s not current in law: It puts in law the permitting process and it requires the secretary to do a safety review, cleanup review,” Hastings told reporters in the Capitol this week. “Now those two are significant reforms in my vision.”

Democrats have other reforms in mind.

“Here we are, one week removed from the first anniversary of the BP spill, and the Republican majority is marking up a trio of bills that will take us back to the days of rubber stamps and systemic failures,” said Rep. Ed Markey of Massachusetts, the leading Democrat on the resources panel, in a statement earlier this week. “This legislative package reflects a pre-spill mentality of speed over safety.”

Markey earlier this year introduced a new spill-response bill (H.R. 501 (pdf)) that largely mirrors the House-passed bill from last summer while incorporating some of the recommendations from the presidential commission tasked with investigating the causes of the disaster.

The seven-member commission issued its final report to the president in January, making a number of recommendations about how to improve offshore drilling safety and citing the BP incident as evidence of “systemic” problems within the industry.

But Republicans have bristled at that language and will likely ignore the commission’s findings — and Markey’s prodding.

Specifically, Markey’s bill includes the unlimited liability language and calls for a dedicated funding stream for the federal agencies overseeing the offshore drilling industry from user fees on the oil and gas industry.

Republicans and the oil industry have raised concerns about language in the bill that would impose new fees on the oil industry.

Legislation that imposes new fees “would not achieve the results that some of these members are trying to achieve. It would actually reduce investment, reduce revenues, harm jobs,” said Eric Wohlschlegel, a spokesman for the American Petroleum Institute, the industry’s main trade group.

Instead, he said the industry tends to sway toward Hastings’ approach. “Policies that allow for more access will actually accomplish a lot of goals currently on Capitol Hill, which is create jobs, increase revenues and increase energy security.”

Senate movement

On the Senate side, the Energy and Natural Resources Committee is prepping spill-response legislation that will likely look similar to the measure reported out of that committee last summer, with some inclusion of the presidential commission’s recommendations. But the measure won’t likely be as severe as Markey’s measure. For one, the energy panel does not have jurisdiction over liability; the Environment and Public Works Committee does. And Bingaman is known for crafting legislation that can get bipartisan support from many of his panel’s members, including Landrieu and Alaska Republican and oil-industry advocate Lisa Murkowski.

“One of the early bills will be a bill to ensure the Interior Department has the authority and resources they need to maintain proper regulation of oil and gas drilling on the outer continental shelf,” Bingaman said. “I think the American people support that, and I think we’ll have strong support again this year.”

Bingaman said he generally supports moving production and safety legislation separately.

“I don’t know why anyone in the Congress would not want to see us improve safety of drilling in the outer continental shelf,” he said. “I think that there ought to be bipartisan agreement to do whatever legislation needs to be done to improve safety and offshore drilling, and separate from that, we should have a full debate about the extent of increased production we want, things we want to do to encourage more production.”

Bingaman’s approach could gain modest support from environmentalists, who would likely still want to see further action on drilling reform.

NRDC’s Nelson called it “a great first step” and said she was looking forward to seeing the legislation.

Other measures she would like to see taken up include beefing up funding for the Interior agency that oversees offshore drilling, significantly raising the liability cap and sending a portion of the penalty money collected from BP for the spill to the Gulf region for coastal restoration work.

A rare area of consensus

The idea to use BP fines to pay for restoration of the coast has broad support among Republicans and Democrats both on and off Capitol Hill. The presidential panel called on the federal government to use 80 percent of the fines collected from BP for Clean Water Act violations to pay for coastal restoration in the Gulf. And Gulf Coast lawmakers are essentially unanimous in their support of such an idea.

Landrieu and Sen. David Vitter (R-La.) yesterday introduced legislation that would dedicate 80 percent of BP’s penalty fees to coastal restoration in the states affected by the disaster.

Specifically, the measure would send 35 percent of the penalty money to the five Gulf Coast states — Louisiana, Mississippi, Alabama, Florida and Texas — affected by the spill to be used specifically for ecosystem restoration and to support the travel, tourism and seafood industries. The measure would use 60 percent of the penalty money to establish a federal-state council to direct coastal restoration. And 5 percent of the funds would be used to create a science and technology program focused on coastal restoration, protection and research to improve offshore energy development safety.

The Clean Water Act allows U.S. EPA to collect $1,100 to $4,300 per barrel of oil spilled. Based on current federal estimates of 4.9 million barrels spilled, BP could face fines of $5.4 billion to $21.1 billion. Under current law, that money would be paid to the federal government.

“This is a great opportunity for the nation to do right by the Gulf Coast,” Landrieu said in a statement. “It’s a great opportunity for the polluters to step up and do the right thing.”

Rep. Steve Scalise, a Louisiana Republican, has also authored a measure in the House that would direct some of the funds to Gulf states. And according to Rep. Cedric Richmond, a Democrat from Louisiana, “everybody on the delegation is on board with the 80 percent.”

“It’s important to get it through now while you’re talking about deficit and the debt. You don’t want people to say ‘Oh, here’s this new pool of money, we should pay down the debt,'” Richmond said. “No, we should fix what was broken.”

But despite strong support for such a measure from Gulf state lawmakers, House leaders with jurisdiction do not appear anxious to move such legislation.

“I don’t want to act until all the information is in, and not all the information is in,” Hastings told reporters earlier this week. He wants to wait until all the investigations of the disaster — like the presidential commission’s study — are complete before moving any spill-response measures.

The joint Coast Guard and Interior Department board investigating the disaster recently pushed back the deadline for completing its inquiry until July.

But Hastings did not rule out all chances of movement on oil spill-response legislation this Congress.

“I want to get all the information,” he said, “and we’ll respond accordingly.”

By: Katie Howell, Greenwire; Contribution by John McArdel, The New York Times, Published in The New York Times, April 15, 2011

April 17, 2011 Posted by | Congress, Conservatives, Deep Water Horizon Oil Spill, Democrats, Economy, Energy, Environment, Environmental Protection Agency, GOP, Government, Politics, Regulations, Republicans, Senate, States | , , , , , , , , , , , , , | Leave a comment