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“On Orders From God And The Founding Fathers”: What Ted Cruz Means When He Says He Mistrusts Both Parties

Okay, class, here’s what should be an easy assignment:

What does it mean when Sen. Ted Cruz says the following on budget negotiations (per TPM’s Sahil Kapur)?

Sen. Ted Cruz (R-TX) on Wednesday defended his objection to initiating House-Senate budget negotiations unless Democrats take a debt limit increase off the table, saying he doesn’t trust his party to hold the line.

“The senior senator from Arizona urged this body to trust the Republicans. Let me be clear, I don’t trust the Republicans,” Cruz said. “And I don’t trust the Democrats.”

On Tuesday, Sen. John McCain (R-AZ) scolded Republicans for blocking negotiations. He was backed by Sen. Susan Collins (R-ME).

“Unfortunately,” Cruz said, “one of the reasons we got into this mess is because a lot of Republicans were complicit in this spending spree and that’s why so many Americans are disgusted with both sides of this house. … And every Republican who stands against holding the line here is really saying, let’s give the Democrats a blank check to borrow any money they want with no reforms, no leadership to fix the problem.”

Does it mean, as political reporters often blandly repeat, that “Tea Party” pols like Cruz are hardy independents who care about principle rather than about the GOP, and represent a constituency that is up in the air?

No, and I might add: Hell no! Cruz specifically and Tea Party members generally, for all their independent posturing, are the most rigid of partisans, and are about as likely to vote with or for Democrats as a three-toed sloth is likely to win a Gold Medal in the 100-meter dash. Yes, they often threaten to form a Third Party, but never do (why should they when their power in one of the two major parties is overwhelming and still growing?), and even more often threaten to “stay home” during elections, but in fact tend to vote more than just about any other sizable bloc of Americans.

So what’s with their inveterate Republican-bashing, if they usually vote and almost always vote Republican?

There are two interconnected explanations. The first is that they want to make it clear that for them the GOP is not a tradition, or a roughly coherent set of attitudes, or a mechanism for civic participation and ultimately the shaping of public policies through democratic competition and cooperation: it’s a vehicle for the advancement of a fixed and eternal set of policies, mostly revolving around absolute property rights and pre-late-twentieth century cultural arrangements. Those who view the GOP as anything other or less than this sort of vehicle are deemed RINOs or “establishment Republicans,” and presumed to be in charge of the party, evidence to the contrary notwithstanding.

So when Tea Party champions or “true conservatives” or “constitutional conservatives” (three terms for the same people) say they’re not willing to sacrifice their principles to win elections, do they really mean it, and is that the difference between them and those “establishment Republicans” like John McCain that they are always attacking? No, not really. They want to win elections, too, but only in order to impose a governing order that they believe should be immune to any future election, immune from contrary popular majorities generally, and immune to any other of those “changing circumstances” that gutless RINOs always cite in the process of selling out “the base.” And that’s why they are willing to use anti-majoritarian tactics when they are in the minority, and anti-minority tactics when they are in the majority: the only thing that matters is bringing back the only legitimately conservative, the only legitimately American policies and enshrining them as powerfully as is possible.

So from that perspective, sure, they’re conservatives first and Republicans second. But this isn’t a “revolt” against the GOP, but a takeover bid, executed through primaries (e.g., Ted Cruz’s victory over “establishment Republican” David Dewhurst) and the power of money and ultimately sheer intimidation. Ted Cruz won’t “trust Republicans” until they’re all taking orders from people like him, who are in turn simply taking orders from God Almighty and the Founding Fathers.

 

By: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, May 22, 2013

May 24, 2013 Posted by | Politics | , , , , , , , , | Leave a comment

“Mitch McConnell Has Your Back”: Conservative Billionaires Oppressed By Liberal Thugs

Fear not, billionaire super PAC and 501(c)(4) funders. You may feel oppressed, you may fear the pitchforks and torches of the unwashed masses gathering at the gate of your manse, you may wake in the night in a cold sweat and bellow to your footman, “Dare I give Paul Ryan $10 million for his 2016 presidential race, lest some bearded plebian pen a vicious blog post aimed at my very heart?” If nothing else, Mitch McConnell has your back.

Today, McConnell takes to the pages of The Washington Post to defend the right of America’s millionaires and billionaires to pour their funds into campaigns while remaining anonymous. Those with long memories may recall that when the McCain-Feingold campaign finance law was being debated, McConnell and others said that the answer to the problem of money and politics was disclosure: Let the wealthy give as much as they want, but disclose contributions quickly, and with everything out in the open we could forestall the possibility of corruption. But with McCain-Feingold safely struck down and Citizens United inaugurating a new dawn of American liberty, disclosure is now McConnell’s enemy:

These tactics are straight out of the left-wing playbook: Expose your opponents to public view, release the liberal thugs and hope the public pressure or unwanted attention scares them from supporting causes you oppose. This is what the administration has done through federal agencies such as the FCC and the FEC, and it’s what proponents of the Disclose Act plan to do with donor and member lists.

The fearsome “liberal thugs” notwithstanding, this gets to the heart of democracy’s messiness. You can have a political system where everyone is unfailingly polite to each other, or you can have a system where people are free to express their views, but you can’t have both. By choosing to have a democracy, we make a series of bargains. We enshrine freedom of religion, even though we know that means people who believe in idiotic faiths (i.e. those different from our own) will be able to practice them, too. We create a system of due process, even though that means guilty people, even monstrous people, will be given fair trials with at least the possibility of getting off. And we defend freedom of speech, knowing that that means we’ll have to tolerate the voicing of abhorrent ideas, not to mention Two and a Half Men and the career of will.i.am.

And if our election rules will allow the Sheldon Adelsons of the world to put millions behind their favorite candidate—something which, by the way, residents of most of the world’s democracies find beyond absurd—it isn’t too much to ask that if you choose to use your enormous wealth to attempt to shift the outcome of elections, if nothing else the public should know who you are. That way we’ll know whom our elected officials are indebted to. And yes, there is a price to pay for that participation: people might say you’re wrong, or even call you a jerk. Money is speech, you say? Well freedom of speech means the right to say whatever you want, not the right to be immune from criticism. It’s amazing how often conservatives can’t see the difference.

By: Paul Waldman, Contributing Editor, The American Prospect, May 23, 2013

May 24, 2013 Posted by | Campaign Financing, Democracy | , , , , , , , | Leave a comment

“Tied At The Hip”: E.W. Jackson Throws A Wrench Into The Ken Cuccinelli Plan

Ken Cuccinelli’s plan for winning the Virginia gubernatorial race is straightforward. Avoid outspoken statements on social issues—the same ones that alienate most Virginians but excite his rightwing base—and focus the campaign on jobs and growth.

So far, he’s done exactly that. Of his three television advertisements, for example none mention abortion or same-sex marriage. Instead, the first—narrated by his wife—presents Cuccinelli as a defender of the vulnerable, highlighting his time working in homeless shelters and prosecuting human traffickers. The second is a straightforward ad on the economy—where he touts his Ryan-esque tax plan of cuts—and the third is meant to humanize Cuccinelli, and features the widow of a slain Fairfax County police officer, who endorses the attorney general.

E.W. Jackson, the newly-minted GOP nominee for lieutenant governor, throws a huge wrench in this strategy.

Jackson is known for his outspoken social conservatism. He routinely denounces LGBT equality—calling gay Americans “sick people psychologically, mentally, and emotionally”—and has compared Planned Parenthood to the Ku Klux Klan, accusing them of engineering the mass slaughter of black children through their support for abortion rights. Indeed, this rhetoric is the whole reason for his popularity among Virginia conservatives and the reason he was able to win the nomination.

Which means he’s unlikely to abandon it on the campaign trail. Cuccinelli is a deft politician, but not so deft that he’s able to distance himself from someone who—ostensibly—is his running mate. And so, at a campaign stop in Abdingdon—in the southwest corner of the state—Cuccinelli told supporters that he’s “glad” Jackson is on the ticket. Why? Because the lieutenant governor cast the tie-breaking vote in the Virginia Senate, and at the moment, the senate has an even split between Democrats and Republicans. Here’s more from the Virginian Pilot:

“I don’t need to know what the subject matter that’s going to tie up 20–20 that the LG can vote on will be. I’m confident that we’re going to get the right vote every single time out of E.W. Jackson,” Cuccinelli said of the Chesapeake-based minister. “So I’m glad he’s on this ticket, too.”

Expect this quote to be circulated around the state by Virginia Democrats. And for good reason. Given their demographic challenges, Democrats—and Terry McAuliffe in particular—have to convince Virginians that the GOP is too extreme to trust. With Cuccinelli now tied to someone further to the right than he is, that task has become much, much easier.

 

By: Jamelle Bouie, The American Prospect, May 22, 2013

May 24, 2013 Posted by | Politics | , , , , , , , , | Leave a comment

“It’s All Your Fault”: Federal Reserve Chair Calls Out Congress For Being The Drag On The Economy

The stock market is testing new highs, the unemployment rate is declining and consumer confidence is at a six-year peak, but the Federal Reserve chairman Ben Bernanke wants Congress to know that things could be a lot better.

Testifying Wednesday in front of the Joint Economic Committee of Congress, Bernake pointed out that the economy has been improving, but one obstacle is keeping a real recovery from sparking — them:

“Most recently, the strengthening economy has improved the budgetary outlooks of most state and local governments, leading them to reduce their pace of fiscal tightening. At the same time, though, fiscal policy at the federal level has become significantly more restrictive. In particular, the expiration of the payroll tax cut, the enactment of tax increases, the effects of the budget caps on discretionary spending, the onset of the sequestration, and the declines in defense spending for overseas military operations are expected, collectively, to exert a substantial drag on the economy this year.”

President Obama was able to delay serious austerity — tax increases paired with budget cuts — from coming into effect until this year. This delay has given housing a chance to recover, as evidenced by strong recent earnings from The Home Depot.

However, there’s no doubt that the payroll tax holiday, which Republicans never considered extending, is affecting every America who lives paycheck to paycheck. The sequester will take $85 billion and 750,000 jobs out of the economy this year. Even the ending of the Bush tax cuts on income over $400,000 will take some steam out of the economy, though tax breaks for the rich have the least stimulative benefit for the economy.

Bernanke points out that the biggest problem with the sequester is that it has no real effect on the actual problem this country faces — the long-term deficit.

“Although near-term fiscal restraint has increased, much less has been done to address the federal government’s longer-term fiscal imbalances,” he said. “Indeed, the [Congressional Budget Office] projects that, under current policies, the federal deficit and debt as a percentage of GDP will begin rising again in the latter part of this decade and move sharply upward thereafter.”

Basically, Bernanke is echoing what New York Times‘ columnist Paul Krugman has been saying for years: Get the economy going, then worry about long-term fixes.

 

By: Jason Sattler, The National Memo, May 22, 2013

May 24, 2013 Posted by | Congress, Economy | , , , , , , , | 1 Comment

“Lost In The IRS Scandal”: The Need To Know Facts About The Big Picture And Big Donors Of Dark Money

In the furious fallout from the revelation that the IRS flagged applications from conservative non-profits for extra review because of their political activity, some points about the big picture – and big donors — have fallen through the cracks.

Consider this our Top 6 list of need-to-know facts on social welfare non-profits, also known as “dark money” groups because they don’t have to disclose their donors. The groups poured more than $256 million into the 2012 federal elections.

1. Social welfare non-profits are supposed to have social welfare, and not politics, as their “primary” purpose.

A century ago, Congress created a tax exemption for social welfare non-profits. The statute defining the groups says they are supposed to be “operated exclusively for the promotion of social welfare.” But in 1959, the regulators interpreted the “exclusively” part of the statute to mean groups had to be “primarily” engaged in enhancing social welfare. This later opened the door to political spending.

So what does “primarily” mean?  It’s not clear. The IRS has said it uses a “facts and circumstances” test to say whether a group mostly works to benefit the community or not. In short: If a group walks and talks like a social welfare non-profit, then it’s a social welfare non-profit.

This deliberate vagueness has led some groups to say that “primarily” simply means they must spend 51 percent of their money on a social welfare idea — say, on something as vague as “education,” which could also include issue ads criticizing certain politicians. And then, the reasoning goes, a group can spend as much as 49 percent of its expenditures on ads directly advocating the election or defeat of a candidate for office.

Nowhere in tax regulations or rulings does it mention 49 percent, though. Some non-profit lawyers have argued that the IRS should set hard limits for social welfare non-profits — setting out, for instance, that they cannot spend more than 20 percent of their money on election ads or even limiting spending to a fixed amount, like no more than $250,000.

So far, the IRS has avoided clarifying any limits.

2. Donors to social welfare non-profits are anonymous for a reason.

Unlike donors who give directly to politicians or even to Super PACs, donors who give to social welfare non-profits can stay secret. In large part, this is because of an attempt by Alabama to force the NAACP, then a social welfare non-profit, to disclose its donors in the 1950s. In 1958, the Supreme Court sided with the NAACP, saying that public identification of its members put them at risk of reprisal and threats.

The ACLU, which is itself a social welfare non-profit, has long made similar arguments. So has Karl Rove, the GOP strategist and brains behind Crossroads GPS, which has spent more money on elections than any other social welfare non-profit. In early April 2012, Rove invoked the NAACP in defending his organization against attempts to reveal donors.

The Federal Election Commission could in theory push for some disclosure from social welfare non-profits — for their election ads, at least. But the FEC has been paralyzed by a 3-3 partisan split, and its interpretations of older court decisions have given non-profits wiggle room to avoid saying who donated money, as long as a donation wasn’t specifically made for a political ad.

New rulings indicate that higher courts, including the Supreme Court, favor disclosure for political ads, and states are also stepping into the fray. During the 2012 elections, courts in two states – Montana and Idaho – ruled that two non-profits engaged in state campaigns needed to disclose donors.

But sometimes, when non-profits funnel donations, the answers raise more questions. It’s the Russian nesting doll phenomenon. Last election, for instance, California’s election agency pushed for an Arizona social welfare non-profit to disclose donors for $11 million spent on two California ballot initiatives. The answer? Another social welfare non-profit, which in turn got the money from a trade association, which also doesn’t have to reveal its donors.

3. The Supreme Court’s Citizens United decision meant that corporations could pay for political ads, anonymously, using social welfare non-profits.

In January 2010, the Supreme Court ruled that corporations and unions could spend money directly on election ads. A later court decision made possible SuperPACs, the political committees that can raise and spend unlimited amounts of money from donors, as long as they don’t coordinate with candidates and as long as they report their donors and spending.

Initially, campaign finance watchdogs believed corporations would give directly to SuperPACs. And in some cases, that happened. But not as much as anyone thought, and maybe for a reason: Disclosure isn’t necessarily good for business. Target famously faced a consumer and shareholder backlash after it gave money in 2010 to a group backing a Minnesota candidate who opposed gay rights.

Many watchdogs now believe that large public corporations are giving money to support candidates through social welfare non-profits and trade associations, partly to avoid disclosure. Although the tax-exempt groups were allowed to spend money on election ads before Citizens United, their spending skyrocketed in 2010 and again in 2012.

A New York Times article based on rare cases in which donors have been disclosed, sometimes accidentally, explored the issue of corporations giving to these groups last year. Insurance giant Aetna, for example, accidentally revealed it gave $3 million in 2011 to the American Action Network, a social welfare group founded by former Sen. Norm Coleman, a Republican, that runs election ads.

Groups that favor more disclosure have so far failed to force action by the FEC, the IRS, or Congress, although some corporations have voluntarily reported their political spending. Advocates have now turned to the Securities and Exchange Commission, which is studying a proposal to require public companies to disclose political contributions.

The idea is already facing strong opposition from House Republicans.

4. Social welfare non-profits do not actually have to apply to the IRS for recognition as tax-exempt organizations.

With all the furor over applications being flagged from conservative groups — particularly groups with “Tea Party,” “Patriot” or “9/12″ in their names — it’s worth remembering that a social welfare non-profit doesn’t even have to apply to the IRS in the first place.

Unlike charities, which are supposed to apply for recognition, social welfare non-profits can simply incorporate and start raising and spending money, without ever applying to the IRS.

The agency’s non-profit wing is mainly concerned about ferreting out bad charities, which are the biggest chunk of non-profits and the biggest source of potential revenue. After all, the IRS’s main job is to collect revenue. Charities allow donors to deduct donations, while social welfare non-profits don’t.

Most major social welfare non-profits do apply, because being recognized is seen as insurance against later determination by the IRS that the group should have registered as a political committee and may face back taxes and disclosure of donors. A recognition letter is also essential to raise money from certain donors — like, say, corporations.

But some of the new groups haven’t applied.

The first time the IRS hears about these social welfare non-profits is often when they file their first annual tax return, not due until sometimes more than a year after they’ve formed.

In many cases, the first time the IRS hears about these groups is a full year after an election.

5. Most of the money spent on elections by social welfare non-profits supports Republicans.

Of the more than $256 million spent by social welfare non-profits on ads in the 2012 elections, at least 80 percent came from conservative groups, according to FEC figures tallied by the Center for Responsive Politics.

None came from the Tea Party groups with applications flagged by the IRS. Instead, a few big conservative groups were largely responsible.

Crossroads GPS, which this week said it believes it is among the conservative groups “targeted” by the IRS, spent more than $70 million in federal races in 2012. Americans for Prosperity, the social welfare non-profit launched by the conservative billionaire brothers Charles and David Koch, spent more than $36 million. American Future Fund spent more than $25 million. Americans for Tax Reform spent almost $16 million. American Action Network spent almost $12 million.

Besides Crossroads GPS, each of those groups has applied to the IRS and been recognized as tax-exempt. (You can look at their applications here.)

All of those groups spent more than the largest liberal social welfare non-profit, the League of Conservation Voters, which spent about $11 million on 2012 federal races. The next biggest group, Patriot Majority USA, spent more than $7 million. Planned Parenthood spent $6.5 million. VoteVets.org spent more than $3 million.

None of those figures include the tens of millions of dollars spent by groups on certain ads that run months before an election that are not reported to the FEC.

6. Some social welfare groups promised in their applications, under penalty of perjury, that they wouldn’t get involved in elections. Then they did just that.

Much of the attention when it comes to Tea Party nonprofits has focused on their applications and how the IRS determines whether a group qualifies for social welfare status.

As part of our reporting on dark money in 2012, ProPublica looked at more than 100 applications for IRS recognition. One thing we noted again and again: Groups sometimes tell the IRS that they are not going to spend money on elections, receive IRS recognition, and then turn around and spend money on elections

The application to be recognized as a social welfare non-profit, known as a 1024 Form, explicitly asks a group whether it has spent or plans to spend “any money attempting to influence the selection, nomination, election, or appointment of any person to any Federal, state, or local public office or to an office in a political organization.”

The American Future Fund, a conservative non-profit that would go on to spend millions of dollars on campaign ads, checked “No”in answer to that question in 2008. The very same day the group submitted its application, it uploaded this ad to its YouTube account: http://youtu.be/2oEz3lzgDsI

Even before mailing its application to the IRS saying it would not spend money on elections in 2010, the Alliance for America’s Future was running TV ads supporting Republican candidates for governor in Nevada and Florida. It also had given $133,000 to two political committees directed by Mary Cheney, the daughter of the former vice president.

Another example of this is the Government Integrity Fund, a conservative non-profit that ran ads in last year’s U.S. Senate race in Ohio. Its application was approved after it told the IRS that it would not spend money on politics. The group went on to do just that.

 

By: Kim Barker and Justin Elliott, ProPublica; Published in The National Memo, May 22, 2013

May 23, 2013 Posted by | Internal Revenue Service | , , , , , , , , | Leave a comment