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Grover Norquist, The GOP, And The Payroll Tax Cut

For the last day or so, a few of us have been trying to get Grover Norquist’s group to say whether GOP opposition to extending the payroll tax cut — which Obama wants — constitutes a “tax increase” and a violation of Norquist’s infamous anti-tax pledge.

Norquist’s spokesman is now clarifying that the group isn’t yet willing to say.

Norquist’s pledge not to raise taxes has been signed by virtually every Republican in Congress, and Norquist has clearly stated that the failure to extend the Bush tax cuts would constitute a “tax increase.” The question now is this: With Republicans now opposing an extension of the payroll tax cut, which impacts workers but not employers, will Norquist’s group also declare the GOP opposition tantamount to a tax increase that violates the pledge?

John Kartch, a spokesman for Americans for Tax Reform, tells me that “one would have to see the final legislation” before making the call one way or the other, in order to determine ”what is the net effect on total taxes.”

The problem here, though, is that this doesn’t deal with the possibility of the payroll tax cut simply expiring through Congress doing nothing. If Congress doesn’t extend the payroll tax cut, as Republicans want, it will simply expire on January 1st.

So it’s fair to ask whether Norquist’s group — which wields great influence over Republicans in Congress — thinks that Republicans who favor doing nothing and letting the payroll tax cut expire are hiking taxes and violating the group’s pledge. And for now, the group isn’t prepared to say.

By: Greg Sargent, The Washington Post Plum Line, August 23, 2011

August 24, 2011 Posted by | Class Warfare, Congress, Conservatives, Democracy, Economic Recovery, Economy, Elections, GOP, Government, Ideologues, Ideology, Income Gap, Labor, Lawmakers, Middle Class, Minimum Wage, Politics, Republicans, Right Wing, Tax Evasion, Tax Increases, Tax Liabilities, Tax Loopholes, Taxes, Teaparty, Wealthy | , , , , , , , | Leave a comment

Populist Sen Mitch McConnell: “I Think Everyone Should Pay Their Fair Share, Including The Rich”

Today, Senate Minority Leader Mitch McConnell (R-KY) named three Republicans to the fiscal super committee that was created by the debt ceiling deal. All three have taken the Americans for Tax Reform anti-tax pledge and support a cockamamie constitutional balanced budget amendment. “What I can pretty certainly sayto the American people, the chances of any kind of tax increase passing with this, with the appointees that John Boehner and I are going to put on there, are pretty low,” McConnell has said.

But McConnell has not always been so virulently anti-tax. In fact, in a 1990 campaign ad, McConnell said that “everyone should pay their fair share, including the rich,” prompting the Associated Press to say that he sounded like a “populist Democrat”:

“Many Republican candidates are, in fact, holding fast to the no-new-taxes position that Bush embraced and then abandoned, even as they try to portray themselves as friends of senior citizens and the disadvantaged. Others are sounding more and more like populist Democrats. ‘Unlike some folks around here, I think everyone should pay their fair share, including the rich,’ Sen. Mitch McConnell, R-Ky., says in a campaign ad.” [Associated Press, 10/28/90]

“A twist of untraditional Republicanism is added to McConnell’s message when he says, ‘Unlike some folks around here, I think everyone should pay their fair share, including the rich. We need to protect seniors from Medicare cuts too,’” wrote Roll Call reporter Steve Lilienthal. “After proclaiming his independence from the President and Congressional leaders, McConnell reassures voters that he will back a ‘fair deal for the working families of Kentucky.’” [“Democrats Flood Airwaves Charging GOP Party of Rich,” Roll Call, 11/5/1990]

If McConnell truly believes this, he should be appalled by current conditions. Tax rates on the richest Americans have plunged in recent years, and millionaires today pay tax rates that are 25 percent lower than they were in 1995. Meanwhile, income inequality is the worst its been since the 1920s, with the top 1 percent of Americans taking home 25 percent of the country’s total income. Just the richest 400 Americans hold more wealth than the bottom 50 percent of Americans combined, and the richest 10 percent of Americans control two-thirds of the country’s net worth.

From the sounds of it, once upon a time McConnell would have found this troublesome. It’s a shame that he doesn’t any longer.

By: Pat Garafalo, Contribution by: Sarah Bufkin; Think Progress, August 10, 2011

August 11, 2011 Posted by | Class Warfare, Congress, Conservatives, Debt Ceiling, Debt Crisis, Democracy, Economic Recovery, Economy, GOP, Ideologues, Ideology, Income Gap, Medicare, Middle Class, Politics, Populism, Republicans, Right Wing, Seniors, Tax Increases, Tax Loopholes, Taxes, Teaparty, Wealthy | , , , , , , , , , , | Leave a comment

How The Budget Deal Affects The Affordable Care Act

So how does this mammoth budget-cutting deal, with its congressional “supercommittee” affect health reform?

Good question, because lots of people in Washington are asking it too.

More specific answers will become clearer in the next few weeks, but here’s a first version of the road map to both the policy and the politics.

First, understand there are two different processes – and each, separately, aims at cutting more than $1 trillion over the next decade.

The one that you’ve probably heard most about is the “supercommittee” of 12 members of Congress. They are supposed to identify savings by Thanksgiving. Entitlements – Medicare, Medicaid, Social Security and aspects of the Affordable Care Act – are part of their turf. So are taxes and revenue – at least in theory. It’s not so clear that the Republicans see it that way given the public statements of Congressional leaders.

If they agree on some kind of grand deal by Thanksgiving, Congress has to take it or leave it by the end of December, eliminating the usual congressional dilly-dallying. (It looks like dilly-dallying to the casual observer or much of the public, but remember that all that arcane, tedious process IS policy in Congress. If you slow something down, make it go through hoops, amend it, hold it up, etc., it doesn’t become law. That may be good or, depending on your point of view, bad politics.)

If Congress takes any recommendations that the supercommittee agrees on, that’s the law. If the committee fails, or Congress rejects it, then the “trigger” gets pulled. The official name is “sequestration.” That’s a fancy name for automatic cuts – 2 percent across-the-board cuts in Medicare, for instance, affecting all health care providers, doctors, hospitals, etc. It won’t affect beneficiaries – at least not directly.

Medicaid is not subject to the trigger. Neither, according to the preliminary interpretations I’ve received from analysts and congressional staff, are the big, key subsidies in the health care reform law – the Medicaid expansion and the subsidies that will help low-income and middle-income people afford health care in the new state exchanges.

Other parts of the health reform law are, however, subject to automatic cuts. Among them: Cost-sharing subsidies for low-income people. This isn’t the help paying the premium; this is the help with the co-pays when people do get care. But the payments are made to health plans, not directly to beneficiaries so it won’t have the direct impact of discouraging care. It may affect how health plans make decisions about what markets to participate in. Gary Claxton and Larry Levitt at Kaiser Family Foundation explain here.

Also, the supercommittee could have a partial deal – meaning there’s still a trigger, but a smaller one. Maybe they won’t reach agreement on $1.2 trillion to $1.5 trillion in savings, which would avoid the trigger. But maybe they could agree on, say, $500 billion. That means a trigger wouldn’t have to go as deep because some of the savings would already be identified.

To recap – before we go on to the second stage of this process: The “super-committee” can do whatever it wants to health care, Medicare, Medicaid, Social Security, etc. – if it can agree, if it can get the rest of Congress to agree and if the president doesn’t veto it.

Will the Democratic Senate and the Obama White House agree to cuts that eviscerate health reform? Not likely. In fact, the Democrats “won” on very few aspects of the budget/debt deal. Walling off Medicaid and key parts of the health coverage expansion were two of the “wins.” That’s a bright line worth paying attention to as this moves forward.

Does that mean other health-reform related spending will be untouched? Given how many moving parts there are to any spending deal, and the fact that defense and tax policy are also part of the mix, chances are it will be affected. But expect to see that bright line remain visible – maybe not quite as bright, but visible. (The CLASS Act, the voluntary long-term care program created under health reform, is a different story; it’s quite vulnerable.)

The second part is the annual appropriations process. The budget deal provides for cuts – real cuts in spending, not just slowing the rate of growth. Health programs (aspects of the health reform legislation touching on exchange creation, prevention, community clinics, etc., and just about everything else at the Department of Health and Human Services – the FDA, NIH, CDC, etc. – will be subject to these cuts. But this isn’t an across the board process, it’s a line-by-line, or at least category/agency-by-category/agency, process. And there is some horse trading.

It’s safe to say that the Republicans will try to cut discretionary portions of the new health law. That’s not a new political dynamic, it doesn’t arise out of the debt ceiling or the Wall Street woes. It’s what we’ve seen since last fall’s elections and the repeal/defund fights of the past few months. And House Budget Chairman Paul Ryan has publicly tried to insert health care into any potential deal. So expect to see more Republican push to cut, and continued Democratic push back. Will health spending emerge unscathed? It’s too soon to know but, given the amount of savings Congress needs to find –both in this budget deal and in the perennial quest to fund the “doc fix” payments – some cuts are clearly possible. Some of it may affect aspects of exchange establishment, regulation, prevention, public health, etc. But it’s hard to see the Democrats allowing cuts so deep that they basically constitute a side door to repeal.

One further twist – some Republicans are calling for a delay in health reform implementation to save money.”Delay” may sound better to an ambivalent public worried about spending than “repeal.” What’s delayed (if anything), how it’s delayed, how long it’s delayed, and what stopgaps are created in the meantime could have an impact on how many people get covered in 2014.

Assorted committees and government agencies are still examining the new budget law and how it will affect … everything. So the perspective I’ve outlined here – and I’m writing amid all the market turbulence – may change as the economic and political climates change. But the lines in the sand around the trigger – health reform, Medicaid and Social Security – tell us something about where the White House will come down.

By: Joanne Kenen, Association of Health Care Journalists, August 10, 2011

August 11, 2011 Posted by | Affordable Care Act, Budget, Congress, Conservatives, Debt Ceiling, Debt Crisis, Deficits, Democrats, Economy, GOP, Government, Health Care, Health Reform, Ideologues, Ideology, Individual Mandate, Insurance Companies, Journalists, Lawmakers, Medicaid, Medicare, Politics, Public Health, Republicans, Right Wing, Social Security, Tax Increases, Tax Loopholes, Taxes, Teaparty | , , , , , , , , , , , , , , , , , , | 1 Comment

An American Hijacking: Eric Cantor Acknowledges S&P’s Warnings But Urges Colleagues To Ignore Them

Standard & Poor’s decision to downgrade the United States’ credit rating Friday night came with clear shots at congressional Republicans who had refused to consider tax increases in the deal to raise the debt ceiling. S&P criticized Congress for allowing new revenues to drop from the “menu of policy options,” criticizing “the majority of Republicans in Congress [who] continue to resist any measure that would raise revenues.” The National Journal proclaimed it “hard to read the S&P analysis as anything other than a blast at Republicans.”

Unlike his party’s presidential candidates and several of his congressional colleagues, House Majority Leader Eric Cantor (R-VA) seems to have heard that blast, as he sent a memo to congressional Republicans today acknowledging S&P’s calls for tax increases. Despite hearing those calls, however, Cantor is urging his colleagues to ignore them:

Over the next several months, there will be tremendous pressure on Congress to prove that S&P’s analysis of the inability of the political parties to bridge our differences is wrong. In short, there will be pressure to compromise on tax increases. We will be told that there is no other way forward. I respectfully disagree.

As we have said from the beginning of the year, the new Republican Majority was elected to change the way Washington does business. We were not elected to raise taxes or take more money out of the pockets of hard working families and business people. People understand Washington can’t keep spending money that it doesn’t have. They want to see less government – not more taxes.

Not only has Cantor chosen to ignore S&P, he has his facts wrong about the American people. Polling conducted by the New York Times and CBS News found last week that half of Americans did, in fact, support the inclusion of new revenues in the debt deal, and numerous polls have shown wide support for ending the Bush tax cuts for the wealthy, a proposal that would reduce the federal deficit by $830 billion over the next decade. S&P today called the full expiration of the Bush tax cuts, which would save $4 trillion in the next decade, one of the major steps in restoring the nation’s AAA credit rating.

Given that S&P downgraded the U.S. in part because of political instability brought on by the GOP taking the economy hostage, Cantor urging his colleagues to ignore the agency’s warning likely won’t help the government’s attempts to avoid yet another downgrade in the future.

By: Travis Waldron, Think Progress, August 8, 2011

August 9, 2011 Posted by | Class Warfare, Congress, Conservatives, Consumer Credit, Debt Ceiling, Debt Crisis, Democracy, Economic Recovery, Economy, Elections, GOP, Government, Government Shut Down, Ideologues, Ideology, Lawmakers, Politics, Republicans, Right Wing, Standard and Poor's, Tax Increases, Tax Loopholes, Taxes, Teaparty, Terrorism, Voters | , , , , , , , | Leave a comment

“Day Of Prayer And Fasting”: Rick Perry’s Houston Dog Whistle

The definition of a political “dog whistle” is a communication (or series of communications) that convey to key members of an interest or constituency group gratifying but potentially controversial affirmations of their views without the mainstream media or the broader electorate catching on. By that standard, Rick Perry’s big “day of prayer and fasting” in Houston over the weekend was a very successful dog whistle.

Mainstream and secular-conservative media coverage of the event (dubbed “The Response,” itself a dog whistle reference to an ongoing series of dominionist events operating under the brand of “The Call” aimed at mobilizing conservative evangelicals to assume leadership of secular society) generally concluded that it was a largely “non-political” gathering–just some Christians upset about the bad economy and their own moral failings who got together to pray over it.

A few reporters who watched and listened more carefully, and had a Christian Right decoder ring on hand, had a very different take. Religion Dispatches’ Sarah Posner, who knows the ins and outs of dominionist thinking exceptionally well, and who attended the Houston event, explained its intent as an act of political mobilization:

“[C]ommand” and “obedience” were the day’s chief buzzwords for many speakers, as repentance was required on behalf of yourself, your church, and your country for having failed to commit yourself to Jesus, for having permitted abortion and “sexual immorality,” for failing to cleanse yourself of “filthiness,” and to repent for having “touched what is unclean….”

The people who gathered at Reliant Stadium are not just Rick Perry’s spiritual army, raised up, as Perry and others imagine it, in the spirit of Joel 2, to sound an alarm and prepare the people for Judgment Day. They are the ground troops the religious right set out four decades ago to create, and duplicate over generations, for the ongoing culture wars. One part of that army is people like Perry himself, supported by religious right political elites who aimed to cultivate candidates, advocates, and political strategists committed to putting God before government.

That a sitting governor would laugh off charges that his “instigation” of an exclusively Christian–and, more specifically, a certain kind of Christian–event is proof of the success of the cultural and spiritual warriors, who believe they are commanded to “take dominion” over government and other spheres of influence. Perry is their man in a high place, in this case an especially courageous one, willing to rebuff charges from the “radical secularists” that he’s crossed the line between church and state. That makes him something much more than just a political or spiritual hero; he is an exemplar.

Slate’s Dave Weigel was also in Houston, and his report debunks the talk of the event being “nonpolitical” by understanding, like Posner, the political freight of the particular strain of evangelical Christianity mostly represented there:

[According to] Pete Ortega, one of dozens of people who’s come up from San Antonio on buses from John Hagee’s church…there is nothing political about the event, he says. He just wants to praise Perry.

“If this is successful here,” he says, “I think other governors, or other politicians, will come out of the closet. Christianity is under attack, and we don’t speak out about it.”

That’s the brilliance of what Perry has done here: These ideas don’t contradict each other at all. He doesn’t need to talk about politics, or do anything besides be here and understand this event. The religion is the politics. These worshippers understand that if they can bring “the kingdom of God” to Earth, economic problems, even macroeconomic problems, will sort themselves out….

The soon-to-be Republican presidential frontrunner, who is best known among liberal voters for raising the prospect of secession and for presiding over hundreds of executions, has just presented himself as a humble messenger of obvious biblical truth. “Our heart breaks for America,” he says. “We see discord at home.

We see fear in the marketplace. We see anger in the halls of government.” It’s one day since S&P downgraded America’s bond rating, in part because the agency worried that conservative Republicans had proved that they would never agree to a debt-reducing bargain that included tax increases. Perry was pulling off an impressive act of transference.

Observers who don’t get any of what Posner and Weigel are talking about are in effect assisting him in the effort to execute his dog whistle appeal to activists whose world-view is entirely alien to nearly all secular Americans and most mainstream Christians. But just because much of the country can’t hear it doesn’t mean it cannot serve as a powerful inducement to political activity in a presidential nominating process where small determined groups of people can have a big impact.

By: Ed Kilgore, The Democratic Strategist, August 8, 2011

August 9, 2011 Posted by | Class Warfare, Conservatives, Democracy, Elections, GOP, Government, Governors, Ideologues, Ideology, Journalists, Media, Politics, Press, Pundits, Republicans, Right Wing, Tax Increases, Tax Loopholes, Taxes, Teaparty, Voters | , , , , , , , , , , , , , , , | 1 Comment