“GOP Deficit Scolds”: By All Means, Cut Social Security, But Don’t Tax The Rich
If the White House’s political goal in calling for Social Security cuts in its budget was to reveal the GOP as the intransigent, uncompromising party in Washington, it’s having the desired effect.
The statements from Republican leaders today in response to the budget are noteworthy, though not surprising: They say we should proceed with Obama’s proposed entitlement cuts but not raise any new revenues by closing any millionaire loopholes. Oh, they don’t put it in those terms. But here’s John Boehner:
While the president has backtracked on some of his entitlement reforms that were in conversations that we had a year and a half ago, he does deserve some credit for some incremental entitlement reforms that he has outlined in his budget. But I would hope that he would not hold hostage these modest reforms for his demand for bigger tax hikes. Listen, why don’t we do what we can agree to do? Why don’t we find the common ground that we do have and move on that?
And here’s Eric Cantor:
If the President believes, as we do, that programs like Medicare, Medicaid and Social Security are on the path to bankruptcy, and that we actually can do some things to put them back on the right course and save them to protect the beneficiaries of these programs, we ought to do so. And we ought to do so without holding them hostage for more tax hikes.
In other words, let’s only do the thing where there’s common ground (entitlement cuts) and not do the thing where there is disagreement (tax hikes).
Now in one sense, this can be seen to validate some of the left’s worst fears about what would happen if Obama offered entitlement cuts. Now that he’s formally proposed cutting Social Security benefits, Republicans can describe that proposal as the one area of agreement between the two parties. And it’s true Obama will probably take a political hit for the proposal.
At the same time, though, it’s worth noting that this doesn’t put Republicans in the greatest political position, either. The GOP position — revealed with fresh clarity today — is that we should only cut entitlements but not raise a penny in new revenues by getting rid of any loophole enjoyed by millionaires. GOP leaders try to compensate for this by robotically repeating the phrase “tax hikes” as a negative, but polls show that majorities already understand that Republican policies are skewed towards the rich. The use of the phrase “tax hikes” to obscure what Dems are really calling for — new revenues from the wealthy — didn’t fare too well in the 2012 elections.
And so, if the White House budget was partly intended as a trap, Republicans walked into it, revealing themselves as the only real obstacle to compromise. Indeed, as Steve Benen points out, Paul Ryan helped underscore the point when he struggled to name anything Republicans could support that their base wouldn’t like.
Now, maybe you don’t believe that there’s much political value in staking out the compromising high ground in this debate, because the Very Serious Deficit Scolds in Washington won’t ever award Obama any real credit for doing this. And maybe you believe that offering Chained CPI will do nothing more than make it easier for Republicans to attack Dems for cutting Social Security in 2014 and 2016.
All I can say to that is that the White House views things differently. Obama advisers believe Republicans could just as easily attack him this cycle for cutting Social Security based on his previous support for Chained CPI. They think the lesson of 2012 (remember the failed “he raided Medicare to pay for Obamacare” talking point?) is that Dems can fend off this attack with relative ease. And from what I have been told, they are looking beyond just getting the approval of the Very Serious People. They want to establish a Beltway narrative that GOP devotion to protecting the wealth of the rich is what’s preventing a deal to replace the sequester, in hopes that it will seep into local news coverage of the cuts around the country as the pain of those cuts sinks in, weakening Republicans further.
Chained CPI is awful policy, and I oppose it. On the raw politics of all this, however, only time will tell who is right.
By: Greg Sargent, The Plum Line, The Washington Post, April 10, 2013
“Republicans Are Out Of Excuses”: President Obama’s Budget And The Put-Up-Or-Shut-Up Challenge
As promised, President Obama sent Congress his budget for the 2014 fiscal year this morning, and there’s just enough in it to make everyone unhappy from a variety of directions.
Republicans won’t like everything about this plan that makes it progressive: it expands Medicaid, undoes sequestration cuts while ignoring Paul Ryan’s demands to slash public investments, pursues a universal-preschool initiative though new tobacco taxes, expands the Earned Income Tax Credit, invests another $50 billion in job-creating infrastructure, gives a big boost to federal R&D, and takes away breaks for Big Oil.
Democrats won’t like everything about this plan that makes it conservative: it includes additional Medicare reforms, it adopts chained-CPI to lower Social Security benefits, and it focuses more on the spending side of the ledger than the revenue side. On a fundamental level, Obama’s budget starts in the middle, rather than the left, making negotiations that much more difficult.
But whichever side you fall on, there’s an underlying strategy here. Ezra Klein’s summary sounds right to me:
Today’s budget is the White House’s effort to reach the bedrock of the fiscal debate. Half of its purpose is showing what they’re willing to do. They want a budget compromise, and this budget proves it. There are now liberals protesting on the White House lawn. But the other half is revealing what the GOP is — or, more to the point, isn’t — willing to do. Republicans don’t want a budget compromise, and this budget is likely to prove that, too.
As the White House sees it, there are two possible outcomes to this budget. One is that it actually leads to a grand bargain, either now or in a couple of months. Another is that it proves to the press and the public that Republican intransigence is what’s standing in the way of a grand bargain.
So, which of these two outcomes is more likely?
I think the smart money is on the latter. The president has called every GOP bluff and put his cards on the table — Republicans said Obama wouldn’t have the guts to go after entitlements and isn’t tough enough to risk the ire of his base. And now we know these assumptions were wrong — the president has presented a White House budget that includes the very entitlement “reforms” GOP leaders asked for, and liberals are furious.
It is, in other words, “put up or shut up” time. Republicans, out of excuses, can either meet Obama half-way or they’ll be exposed as craven. And if the last several years are any indication, GOP lawmakers will chose the latter without a moment’s thought.
Indeed, as Greg Sargent noted, congressional Republican leaders have already spent the afternoon arguing that Obama should simply give the GOP what it wants, and abandon the Democratic priorities, reinforcing the perception that Republicans still do not yet understand the difference between an offer and a gift.
In fact, I should mention that I received an email the other day from a long-time reader asking why I don’t seem more worked up about chained-CPI. The reader asked whether I support it (I don’t) and whether I’ve been relatively quiet about it out of some ideological or partisan predisposition.
I’ll tell you what I told him: I’m not worked up about it because I don’t see the scenario in which Republicans get chained-CPI by giving Obama hundreds of billions of new revenue. It’s easy to remain detached about a bad idea that seems highly unlikely to go anywhere. As Kevin Drum added today, “I don’t doubt that Obama’s offer is sincere, but it doesn’t matter. Republicans aren’t going to take it. Obama will get his proof that Republicans simply aren’t willing to negotiate seriously, and who knows? Maybe it will do him some good. But that’s all he’ll get.”
For me, the more interesting question is how the political world will process these developments when they occur. The Beltway said Obama needed to reach out to Republicans, so he reached out to Republicans. The Beltway said Obama needed to schmooze Republicans in a more personal way, so he did that, too. The Beltway said Obama needed to be willing to alienate his own supporters, and the president’s base has been duly outraged. The Beltway said Obama needed to put Medicare and Social Security on the table, and they’re on the table.
Will pundits who continue to blame “both sides” for partisan gridlock look ridiculous in the coming months? I sure as hell hope so.
By: Steve Benen, The Maddow Blog, April 10, 2013
“Exposing Republican Intransigence”: John Boehner Rejects Obama’s Offer To Cut Social Security
House Speaker John Boehner (R-OH) preemptively rejected President Barack Obama’s upcoming budget proposal Friday, slamming the president’s offer to cut Social Security as “only modest entitlement savings.”
President Obama’s budget plan, which he will send to Capitol Hill on Wednesday, will reportedly seek $1.8 trillion in deficit reduction through a combination of new revenues and spending cuts. The most controversial cut is the move to the chained consumer price index (“chained CPI”) for Social Security, which would significantly reduce annual cost-of-living adjustments for Social Security beneficiaries. President Obama has long suggested that he could support the measure, which would cut federal spending by about $130 billion over the next decade, only if Republicans agree to raise new tax revenues.
To many of the president’s liberal allies, such a proposal has been a non-starter. When he floated the idea in late 2012, many House Democrats warned that they would rather go over the “fiscal cliff” than accept the cut. Similarly, in an exclusive interview with The National Memo in March, AFL-CIO president Richard Trumka vowed that America’s largest labor federation would oppose any budget deal that included chained CPI, saying the index is “another example of how Washington creates fancy-sounding phrases to mask stupid policies that only work for the rich.”
The public seems to stand with Trumka; recent polling suggests that Americans strongly oppose any Social Security cuts.
The budget reportedly includes several other cuts, such as $400 billion in health care savings (including additional means-testing for Medicare,) and $200 billion in cuts to farm subsidies, federal employee retirement programs, and unemployment compensation. Obama’s budget also aims to raise $600 billion in new revenues, including an increased cigarette tax, which would be used to finance the president’s proposal for universal pre-K.
“While this is not the president’s ideal deficit-reduction plan, and there are particular proposals in this plan like the CPI change that were key Republican requests and not the president’s preferred approach, this is a compromise proposal built on common ground, and the president felt it was important to make it clear that the offer still stands,” a senior Obama administration official told The Hill.
Obama’s offer to meet in the middle has already failed to move House Republicans, however. Not waiting for the full proposal to be released, House Speaker John Boehner quickly released a statement Friday blasting Obama’s plan.
“Despite talk about so-called balance, the president’s last offer was significantly skewed in favor of higher taxes and included only modest entitlement savings,” Boehner said. “In the end, the president got his tax hikes on the wealthy with no corresponding spending cuts. At some point we need to solve our spending problem, and what the president has offered would leave us with a budget that never balances.”
“If the president believes these modest entitlement savings are needed to help shore up these programs, there’s no reason they should be held hostage for more tax hikes,” Boehner added.
Although Boehner’s statement still completely ignores the $2.5 trillion in deficit reductions to which the White House has agreed since 2010, it does at least acknowledge that Obama is offering “entitlement savings” — even if Boehner rejects the compromise out of hand. This is a modest step in the right direction, considering that until this budget, Republicans have consistently denied that Obama has offered them anything at all.
In the end, that subtle shift may end up as the most significant result of Obama’s budget deal. Although the proposal has no real chance of becoming law — as evidenced by Boehner’s immediate rejection — making a highly publicized compromise offer will further expose the Republicans’ intransigence.
In March, President Obama reportedly offered congressional Republicans a choice: accept a deal that raised revenue in exchange for chained CPI and means-testing of Medicare, or walk away with no budget deal at all. In April, it appears that Boehner has made his decision.
By: Henry Decker, The National Memo, April 5, 2013
“Low Information Republicans”: What We Have Here Is More Than A Failure To Communicate
One of the more common areas of discussion among political professionals is the phenomenon of low-information voters. These are folks who care about the country and its future, but choose not to keep up on current events, due to some combination of feeling busy, apathetic, and frustrated. Political pros find these Americans difficult to reach — and at times, easy to manipulate — precisely because they’re disengaged and far behind the curve.
The point isn’t that low-information voters are dumb, but rather, that they’re ignorant. In focus groups, you’ll hear these same folks express poorly thought out opinions based on vague “something I heard on the news” observations.
But what happens when we move past low-information voters and start looking at low-information politicians? Ezra Klein relayed an incredible exchange from last week about the ongoing fiscal debate in Washington.
Would it matter, one reporter asked the veteran legislator, if the president were to put chained-CPI — a policy that reconfigures the way the government measures inflation and thus slows the growth of Social Security benefits — on the table?
“Absolutely,” the legislator said. “That’s serious.”
Another reporter jumped in. “But it is on the table! They tell us three times a day that they want to do chained-CPI.”
“Who wants to do it?” said the legislator.
“The president,” replied the reporter.
“I’d love to see it,” laughed the legislator.
In other words, an elected member of Congress — a “veteran legislator,” not some freshman who’s only been in office a couple of months — wants to see President Obama endorse a “serious” policy like chained-CPI as part of a larger debt-reduction package, but the lawmaker has absolutely no idea that Obama has already endorsed chained-CPI as part of a larger debt-reduction package. Indeed, in this case, the Republican lawmaker was so incredulous, he or she laughed at reality, as if it couldn’t possibly be true.
So, is it fair to say Washington debates would be less ridiculous if low-information Republican lawmakers were simply brought up to speed on the basics? Would compromise be easier if GOP officials had some clue as to what President Obama is, in reality, offering?
Well, no, probably not.
Jon Chait reminds us of the classic Upton Sinclair line: “It is impossible to make a man understand something if his livelihood depends on not understanding it.”
As this is applied to the ongoing political debates in DC, Republicans seem ignorant to a jaw-dropping degree about some of the basics, but even if they suddenly became more informed, it’s likely they’d come up with new reasons not to govern constructively with the White House.
Indeed, we don’t have to speculate to know this is true. Over the weekend, Ezra highlighted concerns raised by Mike Murphy, one of the top political consultants in the Republican Party, who said President Obama could reach a bipartisan deal with Republicans if only he endorsed chained CPI, apparently unaware that Obama has already done this.
Reminded of the facts, Murphy dug in, saying Obama endorsed means testing, but “refused” chained CPI. This is factually incorrect, too — indeed, it’s the exact opposite of reality — and when this was brought to his attention, Murphy switched gears, saying chained CPI is a “small beans gimmick” and Republicans just aren’t able to “trust” the White House.
Keep in mind, Murphy’s no dummy, but his line of argument is literally incoherent. He wants Obama to endorse a policy. Told that Obama already endorsed that policy, Murphy denies it. Presented with proof, Murphy decides the policy he supports isn’t so great after all.
So what does Murphy recommend? That Obama “earn trust” with Republicans by “first” agreeing to spending cuts. But in our reality, Obama already embraced about $1.5 trillion in spending cuts in 2011, with no accompanying revenue. In other words, Murphy believes the way out of the current mess is for the president to give Republicans 100% of what they want, accepting another cuts-only package.
Ezra’s bottom line rings true: Republicans have effectively eliminated the possibility of compromise, since they “just want to get the White House to implement their agenda in return for nothing.”
By: Steve Benen, The Maddow Blog, March 4, 2013
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