“A Holiday Wish List For Congress”: Work In The Spirit Of The Season And Help Get The Country Back On Track
For many of us who give gifts at this time of year, the rituals put in perspective the differences between what we can afford, what we need, and what we want. Considering the nation is more than $16 trillion in debt and facing the so-called fiscal cliff of automatic across-the-board spending cuts and tax hikes, lawmakers need to concentrate on doing just what is needed.
With that in mind, here’s my suggested holiday wish list for Congress:
For many of us who give gifts at this time of year, the rituals put in perspective the differences between what we can afford, what we need, and what we want. Considering the nation is more than $16 trillion in debt and facing the so-called fiscal cliff of automatic across-the-board spending cuts and tax hikes, lawmakers need to concentrate on doing just what is needed.
With that in mind, here’s my suggested holiday wish list for Congress:
1. Peace and harmony. We can’t afford for the ideological differences between the political parties to paralyze us. Make a short term deal to prevent us from going over the fiscal cliff and set up the 113th Congress to succeed where the 112th Congress fell short. Here’s a suggestion on how to do that.
2. Fund only the defense we need. Every year, the defense budget is full of weapons and programs someone in Congress wants but that the Pentagon doesn’t need or want. Leaders as diverse as former Secretaries of State Henry Kissinger, Madeline Albright, and James Baker, along with former Defense Secretary Robert Gates say we can spend less on national security. And working with others, we at Taxpayers for Common Sense have provided a set of suggestions on where to cut defense spending.
3. Be good shepherd. The Farm Bill is one of the best examples of programs some people want, but we don’t need right now. It is hard to argue that with farm country seeing record profits the last few years we need to continue to provide massive crop insurance subsidies and other subsidy programs for farmers. What we absolutely don’t need is to have a trillion dollar farm bill shoe-horned into the last days of the 112th Congress.
4. Listen to the wise men—and women. In the last two years, wise men and women from former Sen. Alan Simpson and Erskine Bowles to former Sen. Pete Domenici and Alice Rivlin have laid out plans for long term restructuring of our budget and reduction of our debt. It’s time to listen to those ideas and set the stage for solving our fiscal problems.
5. Gold, frankincense, and myrrh. The tax code is riddled with loopholes and breaks that total more than $1 trillion in forgone revenue every year. It’s time for lawmakers to give taxpayers the gift of flatter, simpler, and fairer tax code that eliminates most of the breaks and generates the revenue to fund the government we need.
We know that Congress will be back at work even as many of us are enjoying time off with our families and we hope that each and every one of them can work in the spirit of the season and help get the country on track for a brighter fiscal future. That’s what America needs.
By: Ryan Alexander, Washington Whispers, U. S. News and World Report, December 24, 2012
“We The People Are Watching”: It’s Time For The GOP To Stop Saying ‘No’ And Start Compromising
New polls have bad news for the GOP when it comes to the so-called “fiscal cliff.”
The public is more interested in the budget negotiations than any other news story—even the Petraeus sex scandal, according to a recent PEW survey.
Americans have also decided in advance who will be to blame if the budget negotiations fail and we enter 2013 without a deal to avoid across-the-board tax increases and spending cuts—the GOP.
According to a new CNN poll, 45 percent of Americans say they will blame the Republicans–compared to the 34 percent who would blame President Obama. That margin of 11 percent is nearly four times the edge that gave the president his re-election. And 53 percent have an unfavorable view of the Republican Party.
Why is the public so prone to blame Republican members of the House and Senate?
Maybe they’ve been paying attention.
Indeed, 7 out of 10 say the GOP has not done enough to compromise with the president. They made stonewalling their strategy in 2009 and have basically not any made exceptions since — except when they were tricked into doing so. A vast majority of Republicans in Congress have signed Grover Norquist’s pledge that basically means they’re unwilling to compromise—though some senators have started to back away from that once-firm commitment.
Voters also agree with Democrats on the issues — 56 percent say taxes on the wealthy should be kept high. And even Republicans agree by an 8-percent margin that any deal should include tax increases along with spending cuts.
“77% believe that their personal financial situation will be affected if the government goes off the fiscal cliff,” said CNN polling director Keating Holland.
Four years of Republicans hyping the fear that the deficit will personally hurt individual Americans has been effective. But, as The New York Times‘ Paul Krugman writes, “…the clear and present danger to the American economy isn’t that we’ll fail to reduce the deficit enough; it is, instead, that we’ll reduce the deficit too much.”
The president has the upper hand in the negotiation and the GOP’s weakness is demonstrated by the fact that they have a member of the losing Republican ticket on their negotiating team.
But will that be enough? Can this GOP say “yes” to a deal that doesn’t punish the middle class? If past is prologue, the odds aren’t good.
By: Jason Sattler, The National Memo, November 26, 2012
“Just Get Out Of The Way”: Obama’s Electoral Mandate And Where It Leaves Republicans
Sunday’s morning shows featured some astoundingly stupid comments from Republicans who claim to believe that on Election Day voters gave them a “mandate” to continue their attempts to obstruct President Obama’s agenda.
Apparently some Republican pundits are still living in the same parallel universe that allowed them to convince themselves that by now, President-elect Mitt Romney would be organizing his transition.
It really is mind-boggling. Notwithstanding all of the available evidence, they still believe that the American people want them to stand in the way of increases in taxes for the wealthiest 2 percent and to cut Medicare and Social Security benefits for future retirees.
Who got a mandate for his policies on Election Day?
The presidential campaign focused like a laser on the question of whether tax rates should be increased for the top 2 percent of Americans or whether we should adopt Romney’s proposal to lower tax rates for the wealthy by another $5 trillion, and inevitably increase taxes on the middle class.
The campaign centered on the Ryan-Romney budget that would have slashed spending on critical services for the poor and middle class, reduce funding for education, do away with Medicare and replace it with a voucher program that would increase out-of-pocket costs for seniors by $6,500 per year.
And it was clear throughout, that the Republicans continued to favor privatizing Social Security.
- The Republican presidential ticket lost by 332 electoral votes to 206 electoral votes.
- Obama got 50.6 percent of the popular vote and Romney got 47.6 percent of the popular vote.
- Democrats took two additional seats in the Senate and now hold a 55-45 edge.
- The Senate Democratic caucus now includes more Progressive members and fewer Conservative members.
- Democrats picked up at least 7 and probably 8 seats in the House, and nationwide got over a half a million more votes for their House candidates than did the Republicans — even though the Republicans continued to control the chamber.
And the verdict that was rendered at the ballot box could be seen in virtually every national opinion survey.
The election was a battle over the future of the middle class, and Obama won that battle.
A Greenberg-Quinlan Research poll found that by 51 to 42 percent the voters said Obama would do a better job restoring the middle class.
They found that by almost two-thirds, voters believed Social Security and Medicare should not be cut as part of a deficit reduction deal.
A November 15, 2012 Hart Research poll for Americans for Tax Fairness found that:
- By a strong 17-point margin, voters favor ending the Bush tax cuts on incomes over250,000 (56 percent) rather than extending the tax cuts for all taxpayers (39 percent).
- President Obama now holds a commanding position in the debate over tax policy. When voters hear President Obama’s position on the Bush tax cuts — that he will sign a bill continuing them for 98 percent of Americans but will veto a bill continuing them for incomes over 250,000 — fully 61 percent agree with this stance. By contrast, when voters are read congressional Republicans’ position — that they will pass a bill continuing the cuts for all income levels, but will block any bill ending the cuts for those making over 250,000 — only 42 percent agree while a 53 percent majority rejects its plan.
NBCNews.com’s First Read, November 15, 2012 — more autopsy 2012— additional analysis of exit polls in battleground states:
- Support for raising taxes for 250K+ earners or everyone — Nevada 64 percent, Wisconsin 64 percent, Virginia 63 percent, Iowa 63 percent, New Hampshire 61 percent, Ohio 57 percent, Florida 57 percent — national average 60 percent.
Greenberg-Quinlan found in a November poll that Americans reject austerity in favor of investment that creates jobs. They were asked to choose between two statements:
We should avoid immediate drastic cuts in spending, and instead, we need serious investments that create jobs and make us more prosperous in the long-term that will reduce our debt, too.
Or…
The only way to restore prosperity and market confidence is to dramatically reduce government spending and our long-term deficits.
The statement favoring investments was chosen by 51 percent compared to 42 percent for the statement favoring cuts.
In fact, there is little question that voters understand better than many commentators and pundits that the budget battle in Washington is not mainly about ratios of revenue to cuts, or “reining in entitlements” — it is about who pays.
Will the wealthy, who have siphoned off all of the economic growth of the last 15 years, be asked to pay to fix the deficit that resulted from the Bush Tax cuts, and two unpaid-for wars? Or will the middle class — whose income has been stagnant or declining — be asked once again to foot the bill?
Voters get it. Time for D.C. pundits to get it as well.
Voters did send a mandate to Republicans on November 6th — a mandate to wake up and smell the coffee.
Here are a few of the mandates the voters gave Republicans:
- Bad idea to be viewed as a party who mainly represents the interests of the 1 percent and has candidates that were born on third base and think they hit a triple.
- Bad idea to insult almost half of the voters with comments about the 47 percent who can’t be convinced to “take responsibility for their lives.”
- Bad idea to insult the fastest growing ethnic group in America with your plans for “self deportation” and vetoing the Dream Act.
- Bad idea to patronize American women — who incidentally represent about 52 percent of the electorate — by telling them that government must intervene in the reproductive choices that should be left entirely to them and their doctors.
- Bad idea to believe you can any longer win national races in America by insulting and alienating people of color.
- Bad idea to ignore the persistent march of demographic changes that are transforming the American electorate. In addition to the growing proportion of people of color, the millennial generation — the most consistently progressive generation in recent American history — is becoming a larger portion of the overall electorate with every passing day.
Finally, the voters sent a loud and clear message that it is a bad idea for the GOP to continue to be the party that opposes traditional progressive American values.
They voted to confirm their view that they want a society where we have each others’ backs — where we’re all in this together, not all in this alone. They voted for a society where everyone does his or her fair share, gets a fair shake and plays by the same rules. They want a society that is hopeful and vibrant and celebrates its diversity — a society where it doesn’t matter whether you are a man or woman, gay or straight — a society where it doesn’t matter where you were born, or how much money your parents had when you grew up.
In short the voters showed once again that they want the kind of a society that Barack Obama described in his first major national speech — to the Democratic Convention in 2004 — a society where there are no blue states or red states — just the United States.
Now it’s time for the Republicans to lead, follow or get out of the way.
By: Robert Creamer, The Huffington Post Blog, November 19, 2012
“Politics Over People”: Romney Endorses Mass Public-Sector Layoffs
Mitt Romney chatted with Bloomberg Businessweek Editor Josh Tyrangiel for a good-but-brief interview, which was published today, and which turned out to be quite informative (thanks to Tricia McKinney for the heads-up).
Tyrangiel asked, for example, about the famous Bain Capital photo featuring Romney and his colleagues posing with cash, and what Romney thinks of the image now. “Oh, that was a moment of humor as we had just done what we thought was impossible,” he said.
The editor also tried to ask the tax-return issue in a new way: “If you’re an investor and you’re looking at a company, and that company says that its great strength is wise management and fiscal know-how, wouldn’t you want to see the previous, say, five years’ worth of its financials?” Romney dismissed the comparison, saying, “I’m not a business.”
I was also delighted to see Tyrangiel ask how Romney intends to balance the budget without raising taxes, without cutting defense, and without touching Social Security. Romney responded by talking about eliminating “Obamacare,” which, of course, would make the deficit worse, not better.
But what I found most interesting was an exchange that probably won’t get as much attention. Tyrangiel asked a fantastic question about the economy: “One thing that distinguishes this recovery is that public sector jobs, government jobs, have already fallen by 650,000. Given the conservative goal of shrinking government, is this a positive development or a negative one?” Romney didn’t give a straight answer, but his take was nevertheless illustrative of a larger point.
“Well, clearly you don’t like to hear [about] anyone losing a job. At the same time, government is the least productive — the federal government is the least productive of our economic sectors. The most productive is the private sector. The next most productive is the not-for-profit sector, then comes state and local governments, and finally the federal government. And so moving responsibilities from the federal government to the states or to the private sector will increase productivity. And higher productivity means higher wages for the American worker. All right?
“America is the highest productivity nation of major nations in the world, and that results in our having, for instance, an average compensation about 30 percent higher than the average compensation in Europe. A government that becomes more productive, that does more with less, is good for the earnings of the American worker, and ultimately it will mean that our taxes don’t have to go up, that small businesses will find it easier to start and grow, and we will be able to add more private sector jobs.”
It’s far from clear that Romney’s correct about the federal government being the “least productive of our economic sectors,” but for the sake of conversation, let’s say that’s true. Let’s just assume that those rascally federal bureaucracies are just too darned “unproductive.”
This is still a deeply misguided policy position.
Remember, the question from Tyrangiel has to do with the economic recovery: is it good or bad that America has been trying to dig itself out of a brutally-deep economic hole while simultaneously laying off 650,000 public-sector workers — on purpose.
Romney’s response is about a long-term vision — a more efficient and productive federal sector will eventually be good for the private sector. That may or may not be true, but the Republican is badly missing the point: how can the economy get better in a hurry if we’re deliberately putting 650,000 out of work? The answer is, we can’t, but apparently Romney doesn’t much care.
For that matter, Romney may struggle with the details of basic economics, but it’s disconcerting that he doesn’t realize who these people are. “The federal government is the least productive of our economic sectors”? What does that have to do with school teachers, police officers, and firefighters who’ve been laid off in droves in communities nowhere near the Beltway?
By: Steve Benen, The Maddow Blog, August 9, 2012
“Ignoring The Facts”: Romney’s Fiscal Fantasy Plan
Political arithmetic is always suspect, and one should always examine carefully the claims of those seeking votes. Smart observers have learned to distinguish between the claims of political candidates and their advisers and proposals that have been evaluated by independent scorekeepers such as the Congressional Budget Office (CBO).
This principle was aptly illustrated by the “budget analysis” Mitt Romney’s chief economic adviser, Glenn Hubbard, recently put forward. In a Wall Street Journal op-ed this week, Hubbard constructs a budget plan that he imagines President Obama might propose someday, engages in a set of his own extrapolations and then makes assertions about it. He does not discuss the actual Obama plan or how it has been evaluated by the CBO. Nor does Hubbard invest his credibility in defending the claims that Romney has made about his own fiscal plans. He simply states that “Yes, President Obama and Mitt Romney have budgets with competing visions. But Gov. Romney’s budget makes tough choices” — without delving into the specifics or trade-offs that Romney’s “tough choices” entail.
The president put forward a plan this year that would reduce deficits by more than $4 trillion over the next decade. It would bring federal discretionary spending to its lowest levels since the 1960s. It includes $2.50 in spending cuts for every $1 in additional revenue. It also asks everyone to pay his or her fair share of taxes, repealing the Bush tax cuts for families making more than $250,000 a year and closing loopholes and shelters such as preferences for private jets, hedge fund managers and offshore investments.
The independent CBO confirms that the Obama budget would stabilize the debt as a share of the economy — returning us to a tenable fiscal path. It would do that while allowing increased investments in education, research and infrastructure that are critical to stronger, shared economic growth in the years to come. By focusing on building a strong economy, the budget expands the tax base and reduces pressures for future tax increases.
Rather than criticize this approach, Hubbard ignores it — and instead chooses to invent assumptions that bear no relationship to the president’s actual policies. His figures are not explained, but they apparently arbitrarily assume that the president must raise taxes to pay for spending above a level of Hubbard’s choosing.
Rather than filling imaginary gaps in the president’s budget, which has been spelled out in sufficient detail to permit evaluation by independent experts, Hubbard should perhaps address some of the many gaps in Romney’s plans.
Start with the taxes. The Romney campaign has been very clear about what the former governor is promising: $5 trillion in tax cuts on top of extending the Bush tax cuts, with those benefits heavily weighted toward the country’s wealthiest taxpayers. Romney himself has acknowledged the lack of details, stating in reference to his tax plan that “frankly, it can’t be scored.” I have been party for many years to searches for “high-income tax shelters” that can feasibly be closed. I know of no reputable expert in either political party who would find that there is anything even approaching $5 trillion in potential revenue to be generated from this source.
Romney has also proposed a massive defense buildup, even while he says he will cut spending deeply enough to balance the budget. I think it’s clear why he won’t tell voters which cuts he would make: In the past, disclosing his planned budget cuts was politically damaging.
We have seen this movie before. When President Bill Clinton left office, our country was paying down its debt on a substantial scale. I was privileged as secretary of the Treasury to be buying back federal debt. George W. Bush campaigned on a program of tax cuts supported by economic advisers who were not subject to the rigors of official budget scorekeeping. The results — trillions of dollars of budget deficits — speak for themselves.
This is a consequential presidential election. As the country continues to recover from the largest economic crisis in generations, we need to strengthen the job market, address big fiscal challenges and build an economy that is based on sustainable, shared economic growth. Voters should have a chance to choose between clear alternatives. Obama — consistent with his obligations as president — has laid out a multiyear budget embodying his vision for the future, and it has been evaluated by independent experts. It is time for Romney to do the same.
By: Lawrence Summers, Opinion, The Washington Post, April 26, 2012
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