“Hijacked By Ideologues”: The Republicans Have Now Agreed To Raise Taxes For The Entire Country
The inside line from Washington is that there will be no Fiscal Cliff deal before the end of the year.
That’s not surprising. Unfortunately, it always seemed unlikely that our politicians would agree to any vote that could be framed as them having voted to “raise taxes” — which any deal before December 31 could have been framed as.
The more likely scenario seemed to be that politicians would wait until taxes increased automatically on January 1 and then heroically vote to cut them — at least some of them.
And that’s still my bet about what will happen in January.
But just because it seemed likely that politicians would be ruled by “politics” instead of pragmatism doesn’t mean this is something to be proud of.
And let’s be clear about what has happened in the past two months.
What has happened is that the political party that has based its entire existence on never agreeing to a tax hike of any kind has essentially agreed to tax hike for the entire country.
By not accepting the Democrats’ offer to extend the Bush tax cuts for ~98% of Americans, the Republicans have agreed to let taxes rise on ALL Americans.
The Republicans have done this, it appears, only (or at least mainly) in a stubborn attempt to preserve lower tax rates on the highest-earning Americans.
And now those tax rates, too, will go up.
And the economy will slow down.
The Republicans have tried to pin the blame for the tax hikes on the Democrats, but most Americans have seen through this. And rightly so. The Republicans agreed to the coming tax hikes when they voted for the legislation in the summer of 2011. And now, by refusing to extend the tax cuts for all Americans but the richest 2%, the Republicans have tacitly once again agreed to raise taxes on all Americans.
This is what happens when a party that used to be known for pragmatism and responsibility allows itself to be hijacked by ideologues.
A deal to mute the impact of the Fiscal Cliff and raise the debt ceiling should be within easy reach of reasonable people on both sides of the aisle.
Unfortunately, our government isn’t run by reasonable people anymore. Especially on the Republican side.
NOTE: This is my personal view, not “Business Insider’s” So if you want to lecture someone about how the Republicans are absolutely right to agree to raise taxes on the entire country just to avoid voting to increase taxes on the highest-earning Americans, please direct those notes to me.
By: Henry Blodgett, Business Insider, December 27, 2012
“A Very Naughty Boy”: John Boehner Gets More Than 2,000 Lumps Of Coal For Christmas
House Speaker John Boehner will be greeted by more than 2,000 pieces of coal when he returns to Washington after what was unlikely to have been a relaxing vacation in Ohio amid the standoff over the fiscal cliff.
The coal is being delivered by The Action—a campaign to end the Bush-era tax cuts for the wealthiest 2 percent—which says Boehner has been extra “naughty” this year.
Last week, Boehner proposed legislation called “Plan B” that would have ended the Bush-era tax cuts on those with income of up to $1 million, but some House Republicans refused to support it. Democrats and Republicans disagree over whether the nation’s wealthiest taxpayers should see higher rates, but both parties agree they want to avoid tax increases for the middle class.
On NaughtyBoehner.com, The Action entreats supporters to call Boehner’s office because he “is desperate to protect the richest Americans at the expense of the rest of us.” For each call made, the campaign promises to hand deliver one lump of coal to Boehner’s office. As of this writing, the campaign counts 2333 pieces of coal as ready for delivery.
President Barack Obama will be back in Washington Thursday to try to negotiate once more with Congress to avoid the fiscal cliff before tax increases and spending cuts kick in at the end of the year.
By: Elizabeth Flock, Washington Whispers, U. S. News and World Report, December 26, 2012
“Rejecting Their Own Ideas”: Republicans Are Creating Needless Difficulties For Themselves And The Country
We know that the House of Representatives has been unable to reach a sensible deal to avoid unnecessary fiscal trouble at the first of the year because of right-wing Republicans’ aversion to tax increases.
But there is another issue on which conservatives are creating needless difficulties for themselves and the country: It’s harder and harder for politicians on the right to think straight about health care.
Conservatives once genuinely interested in finding market-based ways for the government to expand health insurance coverage have, since the rise of Obamacare, made choices that are dysfunctional, even from their own perspective.
Start with the decision of the vast majority of Republican governors to refuse to set up the state insurance exchanges required under the law. The mechanisms would allow more than 20 million Americans to buy coverage. They were originally a conservative idea for large, trustworthy marketplaces where individuals and families could buy plans of their choice.
Many liberals preferred a national exchange, in which the federal government could institute strong rules to protect consumers and offer broader options. This was the path the House took, but the final Senate-passed law went with state-level exchanges in deference to Republican sensibilities.
To ensure that governors could not just prevent their residents from having access to the new marketplaces, the bill required the federal government to run them if states defaulted. So, irony of ironies, in declining to set up state exchanges, conservative governors are undermining states’ rights and giving liberals something far closer to the national system they hoped for. As Robert Laszewski, an industry critic of Obamacare, told The Post’s N.C. Aizenman, conservative governors are engaging in “cut-off-your-nose-to-spite-your-face” behavior.
This is one of many forms of conservative health-care unreason. The “fiscal cliff” debate has been distorted because the problems confronting federal finances are consistently misdescribed. We do not have “an entitlement problem.” We have a giant health-care cost problem.
Our major non-military fiscal challenges lie in Medicare and Medicaid. In principle, conservatives should seek to find ways of holding down health-care inflation in both the private and public sectors. In practice, they see most efforts to take on this issue system-wide as examples of big government run wild. They seem to have a vague idea that markets can yet solve a problem that markets have not been very good at solving.
The result is that conservatives would either let government get bigger, or they’d save money by throwing ever more risk onto individuals by undercutting core government guarantees.
Their most outrageous move was the big lie that the original health-care bill included “death panels.” This would have been laughable if it had not been so pernicious. The provision in question would simply have paid for consultations by terminally ill patients — if they wanted them — with their physicians on their best options for their care. Few things are more important to the future of health care than thinking straight about the costs and benefits (to patients and not just the system) of end-of-life treatments. For those of us who oppose physician-assisted suicide, it’s urgent to promote, rather than block, serious, moral and compassionate discussions of the difficult issues raised by high-tech medicine.
Or take the health-care law’s creation of the Independent Payment Advisory Board, known as IPAB. It’s a 15-member body charged with finding ways of cutting the costs of treatment under Medicare. Congress would have the final say, but through a fast-track process. Yet the ink was barely dry on Obama’s signature of the Affordable Care Act (ACA) when a group of Republican senators introduced what they called the Health Care Bureaucrats Elimination Act, to get rid of IPAB. Thus did an innovative effort to save money meet with a slap in the face. Conservatives barely acknowledge other cost-saving experiments in the ACA.
Is it any wonder that our fiscal politics are so dysfunctional? Yes, we liberals are very reluctant to cut access to various government health-insurance programs. With so many Americans still uninsured, we are wary of depriving more people of coverage. But we fully accept the need to contain government health spending.
Yet given the conservatives’ habit of walking away even from their own ideas (the exchanges, for example) and of rejecting progressive efforts to save money, is it any wonder that liberals suspect them of greater interest in dismantling programs than in making them more efficient? We won’t find genuine common ground on deficits until we resolve this dilemma.
By: E. J. Dionne, Jr., Opinion Writer, The Washington Post, December 26, 2012
“John Boehner’s Christmas Gift”: A Guarantee That The Republican House Will Destroy The Economy
Last week, we learned that Speaker of the House John Boehner has no control over his majority. We’ve seen Boehner have trouble with his caucus before, of course — a significant portion of these people are crazy — but the failure of “Plan B” was different. In the past Boehner has had trouble whipping votes to support things that were destined to become law. Boehner couldn’t get his caucus to support TARP because TARP was awful and was also definitely going to happen. Boehner couldn’t get the votes for the 2011 debt deal because conservatives thought they’d eventually force an even better deal. But this was a totally symbolic gesture that never had any shot at passing the Senate or getting signed by the president. Boehner’s “Plan B” was a stupid pointless empty gesture, and that is why its failure is actually slightly scary, in addition to being hilarious.
The point of “Plan B” was to give Republicans a means of blaming Democrats when everyone’s taxes go up next year, while also giving them an opportunity to claim that they supported raising taxes on rich people. The problem was, Republicans really don’t support raising taxes on rich people, and they feel so strongly about this that they didn’t want to pretend to support a tax increase.
What is especially silly about all of this is that in any sort of sensible political system none of it would be happening. A majority of Americans just voted for Democrats to control the White House, Senate and House of Representatives, which would seem to indicate that a majority of American voters would just prefer it if Barack Obama, Harry Reid and Nancy Pelosi decided all of this for themselves. But that’s not the way our archaic political system works, and instead we will watch this unpopular anthropomorphic Camel 100 carefully negotiate a compromise with the president that his party will refuse to support, until we either extend all tax cuts forever or “go over the cliff” and cause every Sunday show panelist in the country to hyperventilate until losing consciousness.
How did we get here? Keep in mind, your average congressperson is as dumb as your average regular person, and Republican members listen to the same talk radio and read the same right-wing blogs and watch the same Fox News as every other conservative. It’s always been comforting to imagine that canny evil masterminds huddle in backrooms plotting how to use the right-wing media machine to manipulate the rubes into accepting whatever the corporate elites want, but the story now is that the canny masterminds have no control over the media operation they’ve built and the “grownups” cannot convince the true believers to do shit. There’s really no talking sense into Michele Bachmann and Steve King, and every two years gerrymandered ultra-conservative districts send more and more Kings and Bachmanns to the House. And Republicans know that their safe districts are only safe from Democrats, not even-crazier Republicans.
John Boehner will probably be fine. He’ll likely remain speaker even, mostly because no one else wants that horrible job. America might not be fine.
“Going over the fiscal cliff” will be a fun adventure at first, especially because it has been so long since America has had any sort of tax hike or defense budget cut, but shortly after the “cliff” comes the debt ceiling increase vote, and there is really no chance, at all, of the House raising the debt ceiling, under any circumstance. Maybe if the president agrees to block grant Medicare and return America to the gold standard. And promises to personally fire 100 teachers.
The idea that “going over the cliff” would give the president enough leverage to get a halfway decent deal — with some stimulus up front and everything! — depended on a House of Representatives capable of acting rationally. It’s apparent that they are in fact prepared to intentionally tank the entire American economy.
By: Alex Pareene, Salon, December 24, 2012
“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
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