“An Issue Of Fairness”: Suddenly America’s Top Corporate Leaders Are Shunning Tea Party Extremism
Leaders of the American business community, who have long indulged the Republican far right as an instrument toward their own ends, seem to be growing weary of its political excesses. Recognizing the public verdict of last month’s election, corporate officialdom is moving toward moderation on taxes and other issues, showing support for the Obama White House and edging away from congressional Republicans.
The latest top executive to endorse the president’s position on rescinding the Bush tax cuts for the top two percent is Fred Smith, CEO of Federal Express and a former economic advisor to Senator John McCain — who denounced as “mythology” the notion that raising the top rate would damage the U.S. economy.
Smith joined a lengthening queue of business leaders from all sectors who have stepped up over the past week to voice their acceptance of increased taxes as part of a budget agreement to break the stalemate on Capitol Hill — not only to avoid the so-called fiscal cliff on December 31, but because fairness requires the wealthy to pay their fair share. Randall Stephenson, chief executive of AT&T, the nation’s largest telecom company, told Business Week that higher taxes and more revenue must be part of any budget agreement. So did Lloyd Blankfein, the CEO of Goldman Sachs. And so did a group of defense industry executives from companies such as United Technologies, RTI International, TASC and Northrop Grumman.
Income tax rates “need to go up some,” said David Langstaff, the CEO of TASC, at a Washington press event organized by the Aerospace Industries Association, a defense lobby. “This is a fairness issue — there needs to be recognition that we’re not collecting enough revenue. In the last decade we’ve fought two wars without raising taxes. So I think it does need to go up.”
Indeed, the president was warmly received this week when he visited the Business Roundtable, a powerful Washington lobbying group that officially prefers Republican policy on maintaining the Bush tax cuts unchanged. “This room likes a winner,” said Roundtable chairman James McNerney, the CEO of Boeing, as his members applauded the president, who worked the room as if among old friends. They didn’t seem terribly upset when the president told them that tax rates — their tax rates — would have to go up, and in fact, they are reportedly supporting him on the need to avoid another destructive struggle with Congress over the debt ceiling. Evidently they won’t go along with the kind of blackmail game that congressional Republicans played with the debt ceiling in the summer of 2011, leading to a credit downgrade and slower growth for months afterward.
The suddenly sensible sounds emanating from the business community are astonishing when contrasted with the anger displayed toward the president by many of these corporate suits only weeks ago, when they berated Obama as “anti-business” and loudly yearned for a corporate-style Romney presidency. Resoundingly rebuked by the electorate, which overwhelmingly favors Obama’s positions on taxes and entitlements — and stands ready to blame the Republicans if no budget agreement is achieved — the business leaders are backing ever so subtly away from their traditional alliance with the GOP.
These brand-conscious executives suddenly have realized that the Republican brand, especially at the congressional level, is politically toxic. And they would rather not be too closely identified with it at this dangerous moment.
Remarkably, the Tea Party Republicans have now alienated their party’s most important constituency — the upper echelon of the business community. It is a profound irony that the issue raising friction between these politicians and their erstwhile backers is a fanatical partisan determination to defend the tax benefits enjoyed by those same wealthy executives.
The president’s opponents are backing themselves into a corner where even their own old friends cannot defend them. Meanwhile Obama may finally have learned that if he stands firm and refuses to negotiate with himself, he can win over public opinion and break the partisan obstructionism.
By: Joe Conason, The National Memo, December 7, 2012
“The Big Budget Mumble”: Republicans Can’t Play Their Usual Con Game Of Just Saying No
In the ongoing battle of the budget, President Obama has done something very cruel. Declaring that this time he won’t negotiate with himself, he has refused to lay out a proposal reflecting what he thinks Republicans want. Instead, he has demanded that Republicans themselves say, explicitly, what they want. And guess what: They can’t or won’t do it.
No, really. While there has been a lot of bluster from the G.O.P. about how we should reduce the deficit with spending cuts, not tax increases, no leading figures on the Republican side have been able or willing to specify what, exactly, they want to cut.
And there’s a reason for this reticence. The fact is that Republican posturing on the deficit has always been a con game, a play on the innumeracy of voters and reporters. Now Mr. Obama has demanded that the G.O.P. put up or shut up — and the response is an aggrieved mumble.
Here’s where we are right now: As his opening bid in negotiations, Mr. Obama has proposed raising about $1.6 trillion in additional revenue over the next decade, with the majority coming from letting the high-end Bush tax cuts expire and the rest from measures to limit tax deductions. He would also cut spending by about $400 billion, through such measures as giving Medicare the ability to bargain for lower drug prices.
Republicans have howled in outrage. Senator Orrin Hatch, delivering the G.O.P. reply to the president’s weekly address, denounced the offer as a case of “bait and switch,” bearing no relationship to what Mr. Obama ran on in the election. In fact, however, the offer is more or less the same as Mr. Obama’s original 2013 budget proposal and also closely tracks his campaign literature.
So what are Republicans offering as an alternative? They say they want to rely mainly on spending cuts instead. Which spending cuts? Ah, that’s a mystery. In fact, until late last week, as far as I can tell, no leading Republican had been willing to say anything specific at all about how spending should be cut.
The veil lifted a bit when Senator Mitch McConnell, in an interview with The Wall Street Journal, finally mentioned a few things — raising the Medicare eligibility age, increasing Medicare premiums for high-income beneficiaries and changing the inflation adjustment for Social Security. But it’s not clear whether these represent an official negotiating position — and in any case, the arithmetic just doesn’t work.
Start with raising the Medicare age. This is, as I’ve argued in the past, a terrible policy idea. But even aside from that, it’s just not a big money saver, largely because 65- and 66-year-olds have much lower health costs than the average Medicare recipient. When the Congressional Budget Office analyzed the likely fiscal effects of a rise in the eligibility age, it found that it would save only $113 billion over the next decade and have little effect on the longer-run trajectory of Medicare costs.
Increasing premiums for the affluent would yield even less; a 2010 study by the budget office put the 10-year savings at only about $20 billion.
Changing the inflation adjustment for Social Security would save a bit more — by my estimate, about $185 billion over the next decade. But put it all together, and the things Mr. McConnell was talking about would amount to only a bit over $300 billion in budget savings — a fifth of what Mr. Obama proposes in revenue gains.
The point is that when you put Republicans on the spot and demand specifics about how they’re going to make good on their posturing about spending and deficits, they come up empty. There’s no there there.
And there never was. Republicans claim to be for much smaller government, but as a political matter they have always attacked government spending in the abstract, never coming clean with voters about the reality that big cuts in government spending can happen only if we sharply curtail very popular programs. In fact, less than a month ago the Romney/Ryan campaign was attacking Mr. Obama for, yes, cutting Medicare.
Now Republicans find themselves boxed in. With taxes scheduled to rise on Jan. 1 in the absence of an agreement, they can’t play their usual game of just saying no to tax increases and pretending that they have a deficit reduction plan. And the president, by refusing to help them out by proposing G.O.P.-friendly spending cuts, has deprived them of political cover. If Republicans really want to slash popular programs, they will have to propose those cuts themselves.
So while the fiscal cliff — still a bad name for the looming austerity bomb, but I guess we’re stuck with it — is a bad thing from an economic point of view, it has had at least one salutary political effect. For it has finally laid bare the con that has always been at the core of the G.O.P.’s political strategy.
By: Paul Krugman, Op-Ed Columnist, The New York Times, December 2, 2012
“Pretending To Negotiate”: Basic Arithmetic For Republicans Just Doesn’t Add Up
If President Obama honestly wants to negotiate an agreement with Republicans before the year-end fiscal deadline, he must be deeply frustrated. And if he doesn’t really want to negotiate with them, then he should be delighted, for the same reason: Their latest “offer” laid before him by House Speaker John Boehner demonstrates again their refusal to reveal their true intentions — and their inability to do simple arithmetic.
Consider their treatment of Medicare, the popular social insurance program for seniors that Republicans have always despised. They have just emerged from a long national campaign in which they repeatedly and falsely claimed to “protect” Medicare from the president — whom they accused of wanting to slash $716 billion from the program — but now they complain that he won’t cut it enough. The Obama cuts were mythical, but the Boehner budget proposal includes at least $600 billion in Medicare and Medicaid reductions.
Worse still, the Republicans propose to perform this crude surgery on Medicare without the slightest explanation of where they would cut. Washington rumors suggest that they would achieve some of those cuts over the next 10 years by raising the eligibility age by two years to 67 and by increasing premiums for more affluent beneficiaries.
As Robert Greenstein of the Center on Budget and Policy Priorities pointed out on Tuesday, however, those changes would not begin to achieve the savings required by the Boehner proposal.
The same problem undermines the other aspects of Boehner’s proposal, which includes $600 billion in additional unspecified cuts. Either their arithmetic doesn’t work — or, as Greenstein worries, they mean to inflict severe cuts in health and other services that would harm elderly and poor Americans, but want to conceal those consequences from the public.
Yet there is an even deeper problem with Boehner’s arithmetic. The Republicans are fighting to extend all the Bush tax cuts to the wealthiest two percent along with everyone else — but their alternative proposals are utterly inadequate to compensate for the $1.3 trillion in revenues lost by continuing those cuts for the rich. To “offer” $800 billion in new “revenues” obtained by eliminating deductions rather than raising rates simply doesn’t work, as a matter of basic math. It isn’t nearly enough money.
If Republican leaders cannot do the arithmetic, then it is impossible to negotiate with them. If they can do the arithmetic but insist on falsifying the answers, then it is both unwise and impossible to negotiate with them.
Unless and until the Republicans start talking about real numbers that can actually add up, there is nothing to be gained from pretending to negotiate. Nor should the president start negotiating with himself, as he has sometimes done in the past. Instead, he ought to make sure that the opposition understands what will happen when they fail to act responsibly. After January 1, he will bring them an offer they cannot refuse, to restore cuts for the 98 percent — and they will be held accountable for any consequences caused in the meantime by their stalling.
By: Joe Conason, The National Memo, December 5, 2012
“A Slow Death March”: The NFL And The Republican Party Are Sinking
Did you know in medical circles there’s talk the NFL will only last another 15 years or so?
The medical evidence linking professional football’s furious, jarring hits to the head and brain injury is that strong and overwhelming. Later in life, it all catches up to a guy, who succumbs to being a shell of himself. For wives, it’s incredibly painful to witness their strong and mighty men become lost and weak, day by day, weeks giving way to months and years, relentlessly. Like a slow death march.
The NFL is so rich and powerful it’s hard to imagine that happening, isn’t it? With all the stadiums they made cities build for them, their dominance over network television schedules, their carefully cultivated rivalries, their gleaming Super Bowl half-time shows, their spiffy uniforms and grumpy coaches—how do we go on without all that? The NFL has so much control over American lives, aspirations, and social mixing that it is practically a shadow government.
The NFL has faced litigation over brain injuries and is bracing for many more lawsuits as its first generation of former players reach old age.
But some say a tipping point will emerge, a consensus that an entire swath of football players—past and present—will almost certainly deal with brain damage. And all the NFL’s lavish compensations will not be enough lucre to prod players to keep playing the game as it is now played: brutally. The whole sport is a gaming of war, after all. Organized violence is what we collectively come to see.
These experts think the NFL will be suddenly forced to switch to a game like soccer. I’d love to see that, but I can’t fathom the NFL buckling to sweet reason so soon. Football is so much part of the Americana male archetype. Soccer is so lightweight, literally.
Well, guess what. Political observers are saying the same thing about the walking-wounded Republican Party. They say the game it’s playing is moribund. The party Lincoln joined when it was young is foundering, according to the Washington pundits, not all of them Democratic observers. The 2012 election showed that the party has white men squarely on its side, but the electorate is not all white men anymore.
Meanwhile, the party lost the Latino vote, the black vote, and of course, the women’s vote after its visceral attack on reproductive rights. Who did they think would vote for their ticket other than well-off white men? The quintessentially privileged candidate, Mitt Romney, could not connect across class and lines of life experience. And he really was the best the party had. Think of how Rick Perry, Michelle Bachmann, Rick Santorum—anyone else in the primary—would have been an international disgrace. They need new fresh faces.
The Republicans seem to be at a loss for new ideas as well. Cutting Medicare is as popular as a skunk about a garden party. They should have more garden parties and fewer skunks—do I need to name them? They are all there on camera every day, looking dour and angry that the wealthiest 2 percent of Americans are going to see their Bush-era tax cuts expire. Too bad!
The NFL and the GOP: what a plight. I feel so sorry for them. But let’s say it clear here. They deserve to have their game and party sink into the mud if they can’t freshen up.
By: Jamie Stiehm, U. S. News and World Report, December 4, 2012
“It’s Just A Matter Of Math”: President Obama Rejects John Boehner’s “Out Of Balance” Fiscal Cliff Proposal
Sitting down for his first interview since the election, President Barack Obama remained optimistic about reaching a deal on the fiscal cliff, but not before rejecting House Speaker John Boehner’s “out of balance” proposal.
Obama reiterated the need for a balanced approach, dispelling the notion that he was driven by politics—“It’s not me being stubborn, not me be partisan; it’s just a matter of math,” Obama told Bloomberg News’ Julianna Goldman. The full interview can be viewed here.
The president said he was “prepared to make some tough decisions on this issue,” and allowed that he would not get “100 percent” of his demands, but stated that he would not “agree to a plan in which we have some revenue that is vague and potentially comes out of the pockets of middle-class families in exchange for some very specific and tough entitlement cuts that would affect seniors or other folks who are vulnerable.”
Speaker Boehner’s proposal yesterday called for slashing $600 billion in federal health care programs—driven partly by increasing the Medicare eligibility age from 65 to 67—$200 billion in savings by modifying how the government calculates inflation estimates for increasing Medicare and Social Security benefits, and extending the Bush tax cuts for the wealthy.
Obama restated the need for increasing top tax rates, while maintaining current rates for those making less than $250,000. “We’re going to have to see the rates on the top 2 percent go up, and we’re not going to be able to get a deal without it,” he said. The Republican plan proposed generating new revenue by closing special-interest loopholes and deductions while lowering rates. But Obama soon rejected that approach. “If you do not raise enough revenue by closing loopholes and deductions, it’s going to be the middle-class families that make up the difference,” the president said. “And that would be bad for business.”
By: Axel Tonconogy, The National Memo, December 4, 2012
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 