Why GOP Voters Love Irresponsible Newt
Newt Gingrich has done it again. With his new tax plan he has raised the bar from irresponsibility to recklessness.
Every dollar estimate I’m about to share with you comes from the independent, non-partisan Tax Policy Center – a group whose estimates are used by almost everyone in Washington regardless of political persuasion.
First off, Newt’s plan increases the federal budget deficit by about $850 billion – in a single year!
To put this in perspective, most forecasts of the budget deficit cover ten years. The elusive goal of the White House and many on both sides of the aisle in Congress is to reduce that ten-year deficit by 3 to 4 trillion dollars.
Newt goes in the other direction, with gusto. Increasing the deficit by $850 billion in a single year is beyond the wildest imaginings of the least responsible budget mavens within a radius of three thousand miles from Washington.
Imagine what Standard & Poor’s or Moody’s or Fitch would do if it became law. We’d go directly from a triple-A credit rating to triple X – the veritable porn star of fiscal mayhem. Interest on our debt would become larger than most of the rest of the budget.
Most of this explosion of debt in Newt’s plan occurs because he slashes taxes. But not just anyone’s taxes. The lion’s share of Newt’s tax cuts benefit the very, very rich.
That’s because he lowers their marginal income tax rate to 15 percent – down from the current 35 percent, which was Bush’s temporary tax cut; down from 39 percent under Bill Clinton; down from at least 70 percent in the first three decades after World War II. Newt also gets rid of taxes on unearned income – the kind of income that the super-rich thrive on – capital gains, dividends and interest.
Under Newt’s plan, each of the roughly 130,000 taxpayers in the top .1 percent – the richest one-tenth of one percent – reaps an average tax cut of $1.9 million per year. Add what they’d otherwise have to pay if the Bush tax cut expired on schedule, and each of them saves $2.3 million a year.
To put it another way, under Newt’s plan, the total tax bill of the top one-tenth of one percent drops from around 38 percent of their income to around 10 percent.
What about low-income households? They get an average tax cut of $63 per year.
Oh, I almost forgot: Newt also slashes corporate taxes.
I’m not making this up.
This might be amusing if Newt were just being old Newt – if this were another infamous hot-air bubble emerging from an always provocative, sometimes clever, often bizarre mind.
But it’s the tax plan of the leading candidate for president of one of the two major political parties of the United States.
And it comes at a time when America’s super rich are raking in a larger portion of total income and wealth than at any time over the last 80 years, and when their marginal taxes are lower than they’ve been in three decades; a time when the nation’s long-term budget deficit is causing cuts in education and infrastructure which will impair our future and that of our children, and when safety nets and social services are being slashed.
Can Newt get away with this?
Probably — because his plan also comes at a time when Americans are so cynical about the major institutions of our society that someone who offers huge, outrageous plans holds a special fascination: The whole system is so awful, people tell themselves, why not just jettison everything and start from scratch? Let’s throw caution to the winds and do something really big – even if it’s colossally stupid.
This is why the more outrageous Newt can be, the better his polls. The more irresponsible his bomb-throwing, the more attractive he becomes to a sizable portion of Americans so fed up they feel like throwing bombs.
History is full of strong men with dangerous ideas who gain power when large masses of people are so desperate and disillusioned they’ll follow anyone who offers big, seemingly easy solutions.
At times like this a nation must depend on its wise elders – people who have gained a reputation for good judgment and integrity, and who are broadly respected by all sides regardless of political affiliation or ideology – to call out the demagogues, speak the truth, and restore common sense.
The great tragedy of America today is the paucity of such individuals when we need them the most.
By: Robert Reich, Published in Salon, December 14, 2011. (This originally appeared on Robert Reich’s blog, December 13, 2011)
The GOP Policy Problem
Ezra Klein has an excellent point to make about Republicans and policy this morning. He’s writing about how many policies Mitt Romney and Newt Gingrich once supported that turned out to be Kenyan socialism once Barack Obama adopted them. Jonathan Cohn has yet another excellent example: Newt was an enthusiastic backer (with John Kerry!) of comparative effectiveness research — that is, having the government collect data about which medical treatments actually work. That was way back in 2008, but as Cohn points out, after it became part of ACA a few months later it immediately became evil socialist rationing, something that Gingrich can now get in trouble for with conservatives on the campaign trail.
Klein concludes that the reason that Romney and Gingrich are stuck with having supported so many now-forbidden policy is because they are “wonks.” I think that’s too strong, however, or perhaps not strong enough, depending on your perspective. Klein provides a long list of Republicans who once supported an individual mandate on health insurance, but surely they weren’t all wonks? Nope. Most of them were just Republicans following the standard Republican line of the time, a line that was good enough until Barack Obama and the Democrats adopted a kitchen sink to health care reform and tossed in any decent idea that they could find (remember all that rhetoric back then about all the Republican-sponsored ideas included in ACA? It was true!).
No wonder that House Republicans are spending much of their energy repealing non-existent regulations about farm dust or affirming the US motto. Or why Romney’s entire foreign policy program appears to be a pledge not to go on an “apology tour” that never happened. It’s a lot easier to be certain that you always completely oppose the president’s program when you write your own fictional version of the president.
But Klein’s conclusion is right on the mark:
At the end of the day, the GOP will nominate somebody for president…The bigger problem will be if that individual wins. At that point, they’ll need actual solutions for the problems facing the nation. But the Republican Party has ruled out an individual mandate to help with health-care reform, a cap-and-trade program to mitigate global warming and speed the development of renewable energy options, tax increases to help reduce the deficit, and stimulus to help boost the economy. That leaves a potential GOP president with a lot of problems to solve, but few workable policies with which to solve them.
Well, they still have tax cuts for rich people.
By: Jonathan Bernstein, Washington Monthly, December 14, 2011
Newt Gingrich’s Revisionist History
For a man who likes to tout his expertise as a historian, Republican presidential candidate Newt Gingrich has a decidedly revisionist approach when it comes to his own history.
In 1997, Gingrich became the only speaker in history to be reprimanded by the House of Representatives. He agreed to pay $300,000 to settle the matter, which involved using charitable groups to promote his political views and submitting misleading documents to the House ethics committee.
The ethics charges sound like ancient history. They involve dreary matters of tax law. But the episode is worth revisiting because it offers insights into Gingrich’s bombastic, push-the-boundaries style. More troubling, in recent days, Gingrich has been blatantly dishonest in his self-interested rewriting of this history, dismissing the ethics sanction as the action of “a very partisan political committee.”
As Gingrich relates the story, “The Democrats filed 84 charges against me; 83 were dismissed. The only one which survived was the fact that my lawyers had written a letter inaccurately and I signed it.”
Referring to California Democrat Nancy Pelosi, who served on the panel, Gingrich said last week, “If she was in the middle of it, how nonpartisan and just do you think the process was?”
How partisan? The ethics panel, split evenly between Democrats and Republicans, voted 7 to 1 in favor of the reprimand. The dissenting Republican, Lamar Smith of Texas, said Gingrich had made “real mistakes” but called the penalty “way too severe.”
The House agreed to the reprimand by a similarly overwhelming margin, 395 to 28. “The penalty is tough and unprecedented,” the committee chairman, Connecticut Republican Nancy Johnson, said on the House floor. “It is also appropriate.”
Another Republican on the ethics panel, Porter Goss of Florida, said he found “the fact that the committee was given inaccurate, unreliable and incomplete information to be a very serious failure on [Gingrich’s] part.” Indeed, Gingrich’s own lawyer told the ethics committee that the speaker “recognizes the serious nature of the charges and the seriousness of his admission.”
The ethics investigation stemmed from a Gingrich-inspired enterprise during the early 1990s to spread his conservative message — and engineer a Republican takeover of Congress — through a satellite broadcast and a college course that would also be televised.
Both efforts were connected with GOPAC, a political action committee that Gingrich then headed, and were funded by tax-deductible contributions to various nonprofit groups.
For example, the Abraham Lincoln Opportunity Foundation, originally designed to help inner-city youth, served as the vehicle to fund the satellite broadcast. GOPAC lent money to the Lincoln foundation to take over the program, then steered its donors to the foundation and was ultimately repaid by the charitable group.
In Gingrich’s defense, the Internal Revenue Service concluded that the Progress and Freedom Foundation, which underwrote the college course, should not lose its charitable status. After initially revoking the tax-exempt status of the Lincoln foundation, the IRS agreed to reinstate it.
Yet the tax questions show Gingrich’s characteristic willingness to skirt close to the edge, if not beyond. Having been involved in a previous case about the permissible use of charitable groups, Gingrich “had ample warning that his intended course of action was fraught with legal peril,” the committee’s report found. The speaker’s own tax lawyer said he would have advised against the “explosive mix.”
The ethics committee ultimately concluded that Gingrich was, at the very least, reckless in not seeking tax advice.
Then there was the matter of repeated incorrect statements made to the committee as part of the effort to persuade it to dismiss the case. Gingrich twice assured the committee — incorrectly — that GOPAC played no role in developing or financing the college course.
Gingrich blamed the inaccurate statements on his lawyer and said he did not review the letters carefully enough. The four members of the investigative subcommittee found that there was “reason to believe” that Gingrich knew the information was wrong. But they settled for Gingrich’s admission that he “should have known” it was false.
“The violation does not represent only a single instance of reckless conduct,” the report found. “Rather, over a number of years and in a number of situations, Mr. Gingrich showed a disregard and lack of respect for the standards of conduct that applied to his activities.”
This is the bipartisan judgment of his peers. Is Gingrich really the man Republicans want to be their nominee?
By: Ruth Marcus, Opinion Writer, The Washington Post, December 13, 2011
The Establishment Vs. Newt: A Long List Of Republicans Who Want Anybody But Gingrich
As a former Republican House speaker and veteran of the culture wars of the 1990s, Newt Gingrich understandably earned his share of liberal detractors. But who knew how many enemies he’d made among the Republican political elite? As Gingrich’s recent surge in the polls moves ever closer to bearing electoral fruit in the Iowa Caucuses, it’s fair to say that the GOP political establishment is freaking out. Here’s just a sampling of the nice things Newt’s Washington colleagues have had to say about him lately.
George Will: “Gingrich … embodies the vanity and rapacity that make modern Washington repulsive. … There is almost artistic vulgarity in Gingrich’s unrepented role as a hired larynx for interests profiting from such government follies as ethanol and cheap mortgages. … His temperament—intellectual hubris distilled—makes him blown about by gusts of enthusiasm for intellectual fads, from 1990s futurism to ‘Lean Six Sigma’ today.”
Wall Street Journal Editorial Page: “In Mr. Gingrich’s telling, his ideas are bold and even radical, but the irony is that they’re often much less revolutionary than his rhetoric suggests. … Take Mr. Gingrich’s 49-page manifesto on entitlement reform, which his campaign rolled out shortly before Thanksgiving. It is a fundamentally Newtonian document, both in its ambition—it promises to ‘reduce federal spending by half or more’—and in its lack of discipline.”
Gene Healy, Cato Institute vice president: “[Gingrich is] Mitt Romney with more baggage and bolder hand gestures. … It seems that, if you clamor long enough about “big ideas,” people become convinced you actually have them. But most of Gingrich’s policy ideas over the last decade have been tepidly conventional and consistent with the Big Government, Beltway Consensus. … There’s no denying that Newt is smart, but there’s a zany, Cliff Clavin aspect to his intellect. At times, Gingrich, who’s written more than 150 book reviews on Amazon.com, sounds like a guy who read way too much during a long prison stretch.”
Karl Rove: “He is the only candidate who didn’t qualify for the Missouri primary, and on Wednesday he failed to present enough signatures to get on the ballot in Ohio. … [It’s] embarrassing to be so poorly organized.”
Ramesh Ponnuru: “Conservatives who dislike George W. Bush’s compassionate conservatism have Gingrich to thank for it. After Gingrich lost the budget battles with President Bill Clinton, it took 15 years for any politician to take up the cause of limited-government conservatism that he had discredited. Although Gingrich isn’t solely responsible for the Republican policy defeats of those years, his erratic behavior, lack of discipline and self-absorption had a lot to do with them.”
Charles Krauthammer: “Gingrich has his own vulnerabilities. The first is often overlooked because it is characterological rather than ideological: his own unreliability. Gingrich has a self-regard so immense that it rivals Obama’s—but, unlike Obama’s, is untamed by self-discipline.
Representative Peter King: “He’s too self-centered. He does not have the discipline, does not have the capacity to control himself.” If Newt were elected president, “The country and congress would be going through one crisis after another, and these would be self-inflicted crises.”
Christopher Barron, head of GOProud: “Newt is the establishment. He’s antithetical to what the Tea Party is talking about.”
Senator Tom Coburn: “There’s all types of leaders. Leaders that instill confidence, leaders that are somewhat abrupt and brisk. Leaders that have one standard for the people that they’re leading and a different standard for themselves. I just found [Gingrich’s] leadership lacking.”
Jennifer Rubin: “[W]hen he does think big, it is often in clichés. … When not predictable, Gingrich’s ideas can range from irresponsible (go see his website for the list of tax cuts, but no talk of spending cuts) to the crazed.”
Ross Douthat: “[Gingrich’s] candidacy isn’t a test of religious conservatives’ willingness to be good, forgiving Christians. It’s a test of their ability to see their cause through outsiders’ eyes, and to recognize what anointing a thrice-married adulterer as the champion of “family values” would say to the skeptical, the unconverted and above all to the young.”
Joe Scarborough: “When [Gingrich] puts on his political helmet he is a terrible person. … Let me tell you something: the Republican establishment will never make peace with Newt Gingrich. They just won’t! They won’t. This is an important point. Because the Republicans I talk to say he cannot win the nomination at any cost. He will destroy the party. He will re-elect Barack Obama and we’ll be ruined. That’s going to happen. I mean Newt Gingrich would possibly win 100 electoral votes.”
By: The New Republic, Staff, December 9, 2011
Mitch McConnell: GOP Isn’t “Here To Defend High-Income People”
The number two Senate Republican, Arizona Sen. Jon Kyl (R), last week decried attempts by Senate Democrats and President Obama to pay for a payroll tax cut extension with a surtax on millionaires. Despite the fact that payroll tax cut extension would keep an extra $1,000 in the pockets of the average American family, and despite the fact that the millionaire surtax would hit relatively few households, Kyl said he could only support extending the tax cut for working Americans if it was accompanied by massive tax cuts for the wealthy.
This morning on Fox News Sunday, host Chris Wallace asked Senate Minority Leader Mitch McConnell (R-KY) what he made of characterizations of the GOP as the party that defends millionaires, given that more than half of McConnell’s caucus has repeatedly voted against a tax cut for the middle class. McConnell laughed at the assertion before saying the GOP is “not here to defend high-income people.” As proof, McConnell told Wallace that the Republican plan took such drastic steps as to prevent millionaires from receiving unemployment benefits or food stamps:
WALLACE: Why are so many Republicans, including more than half of your Senate Republicans, why are they voting against the payroll tax cut?
MCCONNELL: Well the president’s comments, it’s hard not to laugh, because four out of five of the people they’re targeting, of “the rich people” they’re targeting, are actually business owners who create jobs. Look, we’re not here to defend high-income people. In this bipartisan package that we’re just discussing, we make sure millionaires don’t get unemployment, don’t get food stamps. […] It doesn’t do anything for millionaires, in fact, it goes after them on the benefits side.
McConnell’s assertions seem belied by the facts. Though he insists the payroll tax cut extension will pass, it was the GOP that opposed paying for it through a small surtax on the wealthiest Americans. It was the GOP that opposed any move to raise taxes on the wealthiest Americans in efforts to reduce the deficit — leading to the first credit downgrade in American history and ultimately dooming the super committee. It was his party that nearly shutdown the government in April over the same issue — even though the wealthiest Americans are paying historically low tax rates.
And while McConnell claims the GOP plan “goes after” millionaires “on the benefits side,” it “goes after” low- and middle-income Americans “on the benefits side” even harder. While the GOP opposes any tax increase on millionaires, the House plan to extend the payroll tax cut guts unemployment insurance — one of the most effective means of economic stimulus the government has — reducing the number of weeks one can remain on the program from 99 to 79, and then from 79 to 59.
McConnell’s claims that “four out of five people” Democrats are “targeting” are actually “business owners who create jobs” is equally laughable. NPR last week tested that claim, asking Republican Congressional offices to help them find business owners who opposed the millionaire surtax. Unsurprisingly, since only 2 percent of those with business income would be affected by the surtax, the Republican offices and business lobbying groups couldn’t find anyone for NPR to talk to.
By: Travis Waldron, Think Progress, December 11, 2011
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