“Unicorn’s And Other Fables”: Grover Norquist’s Latest Plot To Drown Government…Monthly Debt Ceiling Fights
There’s two ways to look at Grover Norquist. He’s either the most powerful unelected man in the world or an amazing self-promoter who is about to be proven obsolete. Norquist obviously feels he’s the former. For nearly two decades, he’s held Republicans to a pledge to never raise taxes. Now he wants them to force the president to cede to their wishes on a monthly basis.
The President of Americans for Tax Reform is urging Republicans to use the debt ceiling to exact spending cuts or continue the Bush tax cuts for incomes over $250,000.
“The debt ceiling that Obama’s plans bump into every month or so for the next four years provides plenty of ‘leverage’ for the GOP to trade for spending cuts — as done in 2011 — or continuing the lower rates,” Norquist wrote Wednesday in The Hill.
Nearly 6 out of 10 Americans want to end the Bush tax breaks for the rich. But enough Republicans in the House and Senate have signed Norquist’s American Taxpayer Pledge that he’s certain that the negotiations on the so-called “fiscal cliff” can end without taxes going up.
After an electoral college landslide, many — including the White House — believe that the president has the leverage in negotiations. But the debt ceiling, which we will hit in February, does give Republicans a chance to make demands on the president.
When President Obama asked Speaker Boehner to raise the debt limit, Boehner reportedly said, “There is a price for everything.”
In 2011, Republicans, for the first time ever, used the debt limit to force cuts — something they never asked for in the dozens of times they raised the limit for the last three Republican presidents.
Though senators Lindsey Graham, Saxby Chambliss and other Republicans have said they would break their pledge with Norquist, the lobbyist seems unfazed. He told Slate’s Dave Weigel that he has no concerns that his pledge is about to crumble.
“I’ve talked to Lindsey Graham on the phone after some of his pronouncements, and he’s said, ‘Oh, I would need 10-1 [ratio of cuts to tax hikes], and it would have to include permanent, unalterable entitlement reform.’ I said, ‘Lindsey, if that’s what it’s going to take to get you to raise taxes, I’m not going to worry about you,” Norquist said. “You are not in danger of being offered a silver unicorn, because unicorns don’t exist.”
The Washington Post’s Greg Sargent keeps insisting that the GOP is just trying to present an appearance of compromise. Some Republicans are making news with their alleged willingness to buck Norquist — but votes speak louder than words.
Unlike many Republicans, Norquist would be pleased if the so-called sequester goes into effect. He’s a Republican who believes the Department of Defense isn’t sacred when it comes to spending cuts.
The question is, how many Republicans would be willing to risk the cuts to Defense along with responsiblty for a middle-class tax increase by holding out for a deal that honors Norquist’s pledge?
And if the president won’t agree, will they doom the United States’ credit and cause unprecedented “uncertainty,” which Republicans claim to hate, by holding the debt limit hostage on a monthly basis?
Even if Republicans were to go down that path, the president would have to adopt a strategy advocated by former president Bill Clinton often called “the 14th Amendment option.”
The amendment includes the sentence, “The validity of the public debt of the United States, authorized by law, including debts incurred for payments of pensions and bounties for services in suppressing insurrection or rebellion shall not be questioned.”
In 2011, Clinton said that “without hesitation” he would invoke the 14th Amendment “and force the courts to stop me.”
President Obama nixed that plan, saying his lawyers didn’t see the validity in it. But if Republicans decided to use the debt ceiling to keep him on an “allowance,” it wouldn’t be hard to imagine him deciding that it was worth going to court.
Norquist has never been shy about his disdain for government. He’s often joked,” I just want to shrink it down to the size where we can drown it in the bathtub.” But he’s never faced a predicament like expiring tax cuts and a president with the political capital to fight to keep some of them expired.
Soon we’ll find out how much power he actually has.
BY: Jason Sattler, The National Memo. November 28, 2012
“Old Habits Die Hard”: Cutting Taxes Doesn’t Cut It For Republicans
If the GOP pushes the economy over the fiscal cliff, the party will go over too. The longer Republicans push for tax breaks for bankers and billionaires, the more trouble they’ll get themselves into. Republicans have enough problems morphing into the Tea Party, now the GOP is becoming a wholly owned subsidiary of the Fortune 500.
The Election Day national exit survey demonstrates the fact that the GOP doesn’t have a good message for Americans who worry about the economy. The voters have spoken and the poll tells us what they have to say about the economy and taxes. Republicans will not like what they hear.
Voters heard the questions that Mitt Romney asked about the president’s handling of the economy, but the GOP nominee didn’t follow up with the answers. It should have been a plus for the challenger that almost half (45 percent) of the voters felt the economy was “not so good.” However, a majority (55 percent to 42 percent) of these distressed voters actually went for Barack Obama over Mitt Romney. Another illustration of the GOP’s failure to address middle class economic concerns was that nine of 10 voters (90 percent) who gave the economy a positive rating voted to re-elect the president but only six out of every 10 (60 percent) voters who gave the economy a negative rating voted for his challenger.
Cutting taxes doesn’t cut it for Republicans. There were more voters who worried about unemployment (38 percent) and rising prices (37 percent) than there were who were concerned about cutting taxes (14 percent). The good news for the GOP was that voters who worried about taxes voted overwhelmingly for Romney. The bad news was that there were too few of these voters to make much of a difference in the outcome. Along the same lines, almost half (47 percent) of the voters wanted to raise taxes on the wealthy and another small group (13 percent) favored raising everybody’s taxes. That’s six out of 10 voters who are open to raising taxes to stabilize the economy. Only a third (35 percent) of the voters wanted to hold the line on taxes.
The failure of Romney and the GOP to come up with anything but cutting taxes leaves Republicans in the lurch. Nature abhors a vacuum and the party’s neglect of jobs and inflation gives voters the chance to fill that vacuum with their feelings about the last Republican president. This isn’t good news for Republicans because a large majority (53 percent to 38 percent) of the electorate blames George W. Bush not Barack Obama for the condition of today’s economy.
Voters want to fight a class war and the president’s populist approach to the economy is just what they wanted. Trickle-down economics was a disaster for Romney and will continue to tarnish the Republican brand if the party doesn’t craft a more comprehensive economic message. More than half (53 percent) of the voters feel that the American economic system favors the rich and only a third (34 percent) think the system is fair to all Americans. A majority (55 percent to 39 percent) of voters also believe that Romney’s policies would have favored the rich over the middle class. A fifth (21 percent) of the voters wanted a president who cares about people and those voters supported the incumbent overwhelmingly (81 percent to 18 percent).
The party’s fixation on taxes means the GOP is riding a one trick pony into the ground. The debate on taxes only focuses attention on the GOP’s inability to come up with anything new. Old habits die hard so President Obama doesn’t have to worry that Republicans will come up with something that works better.
By: Brad Bannon, U. S. News and World Report, November 26, 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
“Utterly The Same”: Change, Learn, Compromise, Grow? Not These Republicans
Hearing so much chatter about “change” in the Republican Party, the innocent voter might believe that the Republicans had learned important lessons from their stinging electoral defeat. On closer examination, however, the likelihood of real change appears nil, because the party’s leaders and thinkers can cite so many excuses to remain utterly the same.
At the Republican Governors Association conference last week, for instance, the favored explanation for the voting public’s emphatic rejection of Mitt Romney had nothing to do with issues or ideology, but only with more effective Democratic Party organizing and communicating. According to Wade Goodwyn, the National Public Radio reporter who covered the GOP governors’ meeting, their post-election mood was not one of shock, but complacency.
“It was widely agreed that nothing needed to be changed except perhaps the tone,” he found. “For example, the idea that more than 70 percent of Hispanics voted for the president because of Republican positions on illegal immigration was rejected by the Republican governors.”
That would be hard to believe if Goodwyn were not such an excellent and experienced journalist, because it is so stupid, so insulting, and makes so little sense. Could it really be true that the nation’s Republican governors — one of whom is quite likely to be the party’s next presidential nominee — are so obtuse and so obstinate that they would reject change even on immigration?
Republican leaders also seem inclined to ignore voter sentiment on the issue of taxes, despite majorities of 70 percent or better that agree the rich should pay more (including many voters who identify with the GOP). Rep. Mike Pence, who will become the governor of Indiana next January, told the Republican governors that he remains firmly opposed to any tax increase, especially on “those in the best position to put hurting Americans back to work,” which is GOP code for mega-millionaires and above.
Clearly the Republicans in Congress too feel free to ignore public opinion on this question, since Speaker John Boehner and his caucus have offered a “compromise” on fiscal policy that represents no change whatsoever from their earlier positions and the Romney platform. Government can accrue fresh revenues from growth, they say; nothing new or even meaningful there. And government can close unspecified loopholes and deductions to increase revenues, too. Where have we heard that before?
Meanwhile, the consulting geniuses who predicted a Romney victory — a landslide, even! — are peddling alibis about why their party lost despite billions spent. Fox News expert Dick Morris says it is because their voter machinery failed, the Romney campaign didn’t fight back, and Hurricane Sandy persuaded all of the undecided voters to back Barack Obama.
By the way, Morris now predicts that the economy will suffer a ruinous decline over the coming year or two, so Republicans can just sit back and watch the Democrats sink with it. Which is another way of saying no need for change on any front. Given his record as an oracle, both Democrats and Americans more generally now have great reasons for optimism.
Karl Rove, who squandered vast sums of his generous donors’ money, has lots of explaining to do. But he always has lots of explanations. This time, having reluctantly acknowledged electoral reality, Rove agrees with Morris that the Romney campaign’s failures were mostly to blame. He is full of advice for the party leaders, urging them to change the date of the convention, try to avoid “sounding judgmental and callous” on social issues, and “do better — much better” with Hispanics, younger voters, women, and middle-class families.
How should Republicans “do better” with those voter groups? On that question, Rove resorts to clichés about “reframing” messages and “re-engineering” voter turnout efforts, as though issues and policies have nothing to do with motivating actual voters.
Finally, Rove insists that his donors will continue to pour good money after bad into the coffers of American Crossroads, his SuperPAC. His current bleating sounds nothing like his confident bluster a decade ago, when he looked forward to a Republican realignment and unchecked power for decades to come.
Reality has changed, but Republicans won’t. They insist on creating their own reality, like Rove and his friends at Fox News always did — but fewer and fewer Americans will still pretend to live there.
By: Joe Conason, The National Memo, November 18, 2012
“The Twinkie Manifesto”: Economic Growth And Economic Justice Are Not Incompatible
The Twinkie, it turns out, was introduced way back in 1930. In our memories, however, the iconic snack will forever be identified with the 1950s, when Hostess popularized the brand by sponsoring “The Howdy Doody Show.” And the demise of Hostess has unleashed a wave of baby boomer nostalgia for a seemingly more innocent time.
Needless to say, it wasn’t really innocent. But the ’50s — the Twinkie Era — do offer lessons that remain relevant in the 21st century. Above all, the success of the postwar American economy demonstrates that, contrary to today’s conservative orthodoxy, you can have prosperity without demeaning workers and coddling the rich.
Consider the question of tax rates on the wealthy. The modern American right, and much of the alleged center, is obsessed with the notion that low tax rates at the top are essential to growth. Remember that Erskine Bowles and Alan Simpson, charged with producing a plan to curb deficits, nonetheless somehow ended up listing “lower tax rates” as a “guiding principle.”
Yet in the 1950s incomes in the top bracket faced a marginal tax rate of 91, that’s right, 91 percent, while taxes on corporate profits were twice as large, relative to national income, as in recent years. The best estimates suggest that circa 1960 the top 0.01 percent of Americans paid an effective federal tax rate of more than 70 percent, twice what they pay today.
Nor were high taxes the only burden wealthy businessmen had to bear. They also faced a labor force with a degree of bargaining power hard to imagine today. In 1955 roughly a third of American workers were union members. In the biggest companies, management and labor bargained as equals, so much so that it was common to talk about corporations serving an array of “stakeholders” as opposed to merely serving stockholders.
Squeezed between high taxes and empowered workers, executives were relatively impoverished by the standards of either earlier or later generations. In 1955 Fortune magazine published an essay, “How top executives live,” which emphasized how modest their lifestyles had become compared with days of yore. The vast mansions, armies of servants, and huge yachts of the 1920s were no more; by 1955 the typical executive, Fortune claimed, lived in a smallish suburban house, relied on part-time help and skippered his own relatively small boat.
The data confirm Fortune’s impressions. Between the 1920s and the 1950s real incomes for the richest Americans fell sharply, not just compared with the middle class but in absolute terms. According to estimates by the economists Thomas Piketty and Emmanuel Saez, in 1955 the real incomes of the top 0.01 percent of Americans were less than half what they had been in the late 1920s, and their share of total income was down by three-quarters.
Today, of course, the mansions, armies of servants and yachts are back, bigger than ever — and any hint of policies that might crimp plutocrats’ style is met with cries of “socialism.” Indeed, the whole Romney campaign was based on the premise that President Obama’s threat to modestly raise taxes on top incomes, plus his temerity in suggesting that some bankers had behaved badly, were crippling the economy. Surely, then, the far less plutocrat-friendly environment of the 1950s must have been an economic disaster, right?
Actually, some people thought so at the time. Paul Ryan and many other modern conservatives are devotees of Ayn Rand. Well, the collapsing, moocher-infested nation she portrayed in “Atlas Shrugged,” published in 1957, was basically Dwight Eisenhower’s America.
Strange to say, however, the oppressed executives Fortune portrayed in 1955 didn’t go Galt and deprive the nation of their talents. On the contrary, if Fortune is to be believed, they were working harder than ever. And the high-tax, strong-union decades after World War II were in fact marked by spectacular, widely shared economic growth: nothing before or since has matched the doubling of median family income between 1947 and 1973.
Which brings us back to the nostalgia thing.
There are, let’s face it, some people in our political life who pine for the days when minorities and women knew their place, gays stayed firmly in the closet and congressmen asked, “Are you now or have you ever been?” The rest of us, however, are very glad those days are gone. We are, morally, a much better nation than we were. Oh, and the food has improved a lot, too.
Along the way, however, we’ve forgotten something important — namely, that economic justice and economic growth aren’t incompatible. America in the 1950s made the rich pay their fair share; it gave workers the power to bargain for decent wages and benefits; yet contrary to right-wing propaganda then and now, it prospered. And we can do that again.
By: Paul Krugman, Op-Ed Columnist, The New York Times, November 19, 2012
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