“Swapping Old Folks For Poor Folks”: Lamar Alexander’s Senior Moment
I can’t read the whole thing yet, since it’s hiding behind the Wall Street Journal’s paywall, and I’m not about to subscribe. But from the headline and lede, it seems Sen. Lamar Alexander (R-TN) has taken a long stroll down memory lane by resurrecting the one-fashionable idea of a “swap” whereby currently shared federal-state governing responsibilities would be divided. In particular, he proposes that Medicaid be taken over by the feds in exchange for total assumption of responsibility for education by the states, and mentions he tried to sell the idea to Ronald Reagan back in the early 1980s.
I don’t know exactly which meetings Alexander is talking about, but as it happens, I was working for the then-chairman of the National Governors’ Association, the late Georgia Democratic Gov. George Busbee, when he was leading “federalism” discussions with the Reagan folk in 1981. Most governors at the time, regardless of party, were interested in what was called a “sorting out” agenda that would federalize some programs and devolve others; this was a favorite topic in particular for Arizona’s Democratic Gov. Bruce Babbitt, who like to talk about “states’ rights for liberals.” Babbitt wanted a “grand swap” in which Washington would become responsible for all health care and “welfare” programs in exchange for state assumption of transportation, education and criminal justice, areas in which they were already the major funders and policymakers. My own boss had a similar approach, but was mainly concerned to head off the kind of one-way abandonment of federal responsibility that most conservatives had in mind when they talked about “federalism.”
Whatever they told Alexander, that was pretty much the tendency of the Reaganites of the day. Reagan’s famous OMB director, David Stockman was interested in a “swap” that would have devolved cash income support, food stamps, and health care for the poor in exchange for the feds taking responsibility for the health care needs of seniors who were “dual-enrolled” in Medicaid or obtaining long-term care subsidies. It was basically a “swap” of old folks for poor folks. The governors weren’t buying it, and in any event, the Reagan administration was simultaneously pursuing a budget that would “cap” federal Medicaid payments, basically intitiating the kind of gradual shift in responsibility for the program to the states that Paul Ryan is pursuing in a more comprehensive way with his proposal to turn Medicaid into a “block grant.” As it happened, the Medicaid “cap” was one of the few budget proposals Reagan lost on in 1981.
Best as I can recall, this was the high-water mark of national Republican interest in taking over Medicaid, and it obviously was lower than a snake’s belly in a wagon rut. It’s only gotten worse sice then. It is striking that ol’ Lamar is talking about a federal takeover of Medicaid even as he joins other Republicans in violently opposing ObamaCare, since one major feature of ObamaCare is a significant increase in federal responsibility for Medicaid (via higher match rates for new enrolees), and for the health care needs of low-income families generally.
The bottom line is that Alexander is really living in the distant past if he thinks his party will support federalization of Medicaid (unless they get the idea they can starve or abolish it). The prevailing sentiment in the GOP, as reflected in the Ryan budget, is to move towards devolution of all current federal-state programs to the states, via rapid funding cuts to non-defense discretionary programs and by turning Medicaid and food stamps into block grants (along with big funding cuts). Matter of fact, Alexander voted for the Ryan budget himself. Maybe he explained that little contradiction in the portion of his op-ed still behind the paywall. Or maybe he’s just having a senior moment.
By: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, May 16, 2012
“Idelogical Extremism”: Former Republican Senator Hagel Says Reagan Would Not Identify With Modern GOP
Last week, former Sen. John Danforth (R-MO) told ThinkProgress that his party was becoming “increasingly inconsequential” and “intolerant” following the defeat of veteran Sen. Dick Lugar (R-IN). Now, former Sen. Chuck Hagel (R-NE) has also taken aim at his party for its ideological extremism.
Hagel — who served two terms in the Senate, between 1997 and 2009 — told Foreign Policy magazine on Friday that the Republican Party “is in the hands of the right, I would say the extreme right, more than ever before.” He observed:
Reagan wouldn’t identify with this party. There’s a streak of intolerance in the Republican Party today that scares people. Intolerance is a very dangerous thing in a society because it always leads to a tragic ending. Ronald Reagan was never driven by ideology. He was a conservative but he was a practical conservative. He wanted limited government but he used government and he used it many times. And he would work with the other party. …
Now the Republican Party is in the hands of the right, I would say the extreme right, more than ever before. You’ve got a Republican Party that is having difficulty facing up to the fact that if you look at what happened during the first 8 years of the century, it was under Republican direction. …
The Republican Party is dealing with this schizophrenia. It was the Republican leadership that got us into this mess. If Nixon or Eisenhower were alive today, they would be run out of the party.
Hagel hopes the pendulum will eventually swing back to moderation for the GOP, but warned that it is unlikely to happen in this election, noting that “what latitude [Mitt] Romney has to shape the party as we go into the election is somewhat limited because of the primary he’s had to run.”
It again bears mentioning that like Lugar and Danforth, Hagel was himself a solid conservative in the Senate earning a lifetime 85 percent rating with the American Conservative Union. The fact that even solid conservatives like these men — or Reagan — are not conservative enough to fit in the modern Republican Party is an indication of just how far right the GOP has drifted.
By: Josh israel, Think Progress, May 14, 2012
“GOP Tax Jihad Continues”: The Enemy Within Shoots Down The Buffett Rule
To nobody’s surprise, the Senate has blocked the Buffett Rule that would have required those earning more than $1 million a year to pay a minimum tax of 30 percent.
The 51-46 vote—short of the 60 votes in support needed to bring the measure to the floor—went along party lines with only GOP Senator Susan Collins crossing the aisle to vote with the Democrats while Senator Mark Pryor of Arkansas sided with the Republicans.
While passage of the measure is estimated to bring in only $47 billion in additional revenue, the proposed law, which has been actively pushed by the Obama Administration, is viewed by supporters as fairness issue while opponents claim that the rich already pay a disproportionate share of the nation’s tax revenue.
Failure of the bill to advance is also likely to give the President a popular issue for his re-election campaign, given the strong support for the law among the general public. According to a CNN/ORC poll out today, 72 percent of the nation’s registered voters support the measure.
Expressing disappointment with the vote, Senate Majority Leader Harry Reid (D-Nev.) said,
The wealthiest one percent takes home the highest share of the nation’s income since the early ’20s, the roaring ’20s. Times are tough for many middle class American families. Millionaires and billionaires aren’t sharing the pain or the sacrifice, not one bit. Last year there were 7,000 millionaires who didn’t pay a single penny in federal income taxes.
But Republicans aren’t buying it, arguing that the proposal is nothing more than a ‘political gimmick’—or so says GOP Minority Leader, Mitch McConnell:
The problem is, we’ve got a president who seems more interested in pitting people against each other than he is in actually doing what it takes to face these challenges head on. By wasting so much time on this political gimmick that even Democrats admit won’t solve our larger problems, it’s shown the president is more interested in misleading people than he is in leading.
Last week, ThinkProgress posted a video of President Ronald Reagan giving a speech indicating that he too objected to the notion of a secretary paying a higher rate of tax than her employer, the circumstance that gave rise to Warren Buffett’s proposal that resulted in his name going on this piece of legislation.
By: Rick Ungar, Contributor, The Policy Page, Forbes, April 16, 2012
“Enduring In Stranger Forms”: The Reagan Era Is Still Going
Religious leaders and religious communities are mostly united on the idea that we humans are bound together in a web of reciprocity and mutual support – and that there is something godly about such interdependence. Thus, for example, Gov. John Winthrop, adjuring the company that was about to sail from Southampton to the New World in 1630:
We must be willing to abridge ourselves of our superfluities, for the supply of others’ necessities. We must uphold a familiar commerce together in all meekness, gentleness, patience and liberality. We must delight in each other; make others’ conditions our own; rejoice together, mourn together, labor and suffer together, always having before our eyes our commission and community in the work, as members of the same body.
Ethicist and historian Gary Dorrien finds very little of Winthrop’s spirit in the never-ending attacks mounted against progressive taxation by today’s Republicans: they all like the “City Upon a Hill” part of Winthrop’s sermon, but they ignore the part about what it takes, values-wise, to deserve that hilltop. – eds.
The Reagan era was supposed to have ended in November 2008—killed off by 30 years of flat wages and capitulation to Wall Street leading to a colossal financial crash. But today the Reagan era is enduring in stranger forms than ever.
Republican leaders want to bust unions and give another tax cut to corporations and the rich, plus eliminate taxes on capital gains and inheritance. They want to privatize Social Security, turn Medicare into a voucher program, reduce Medicaid to block grants, and abolish the Affordable Care Act. They want a balanced budget amendment to the Constitution that caps federal spending at 18 percent of the total economy, a figure last reached in 1966. They took the nation hostage in a debt ceiling drama to win an atrocious budget deal. And much of the Republican Party thrives on conspiracy theories about America’s first black president.
It should be politically fatal to lurch so far into a bizarre-world of anti-government ultimatums and related obsessions. But the Republican Party tells a story of our time that many Americans find compelling. It is the Reagan story about a great people being throttled by a voracious federal government. According to this story, government is always the problem, Americans are over-taxed, and America has a debt crisis because Democrats overgrew the government. Every Republican contender for president tells this story, notwithstanding that Americans are not over-taxed and it was chiefly the Republican Party that exploded the debt.
From the early 1970s through the 1990s, Americans averaged 27 percent of their income on federal, state, and local taxes. Today that figure is 23 percent, a 53-year low. As a percentage of GDP, American taxation is at its lowest level since 1950, 14.8 percent—well below the take of other wealthy nations.
More importantly, the debt problem is a byproduct of tax policies that have fueled massive inequality since the early 1980s. It cannot be solved with any moral decency without rectifying the legacy of Ronald Reagan, who led the Republican Party and many Democrats into temptation by contending that deficits don’t matter because tax cuts pay for themselves. When Reagan took office in 1981 the national debt was $907 billion and America was the world’s leading creditor nation. In eight years Reagan tripled the national debt and turned America into the world’s leading debtor nation. Reagan slashed the marginal tax rate from 70 percent to 28 percent, and the top rate on capital gains from 49 percent to 20 percent, fueling a blowout for inequality. George H. W. Bush, vowing to maintain Reagan’s winning approach, let the debt escalate to almost $4 trillion, which scared him enough to break his vow, raise the marginal rate to 35 percent, demoralize his party, and lose a second term.
The only break in America’s post-1980 record of escalating debt was the Clinton Administration, which raised the marginal rate to 39.6 percent and rang up budget surpluses of $70 billion in 1998, $124 billion in 1999, and $237 billion in 2000. Had the U.S. stuck with Clinton’s fiscal policy, the cumulative budget surplus would have reached $5.6 trillion by 2011, wiping out the national debt.
George W. Bush quickly squandered all of that. His tax cuts blew a $2 trillion hole in the deficit. He charged the expenses for two wars, officially over $1 trillion, with long-term costs that will triple that figure. He added a $1 trillion Medicare prescription drug benefit without paying for it either, creating the first entitlement in American history lacking a revenue source. Then the casino economy that Clinton and Bush deregulated crashed. In eight years the Bush administration piled up new debt and accrued obligations of $10.35 trillion, and doubled the national debt from $5.7 trillion to $11.3 trillion. Bush amassed more debt in eight years than America’s previous forty-two presidents combined, and the record keeps growing, as three-quarters of the debt amassed on Obama’s watch is the outgrowth of Bush’s unpaid tax cuts, unpaid wars, and unpaid drug benefit, and much of the rest is cleanup for the financial crash.
Obama inherited a deflating economy teetering on an outright depression, a skyrocketing debt, and two wars. When he took office the economy was shrinking by 6 percent annually. Had these losses continued, the U.S. would have been in a depression within 9 months of his inauguration.
Obama averted a depression with a modest, under-funded stimulus that Republicans condemned as outrageously radical, Socialist, and un-American. This absurd position enabled Republicans to win a huge political windfall, which has made the Republican Party crazier than ever.
Mitt Romney proposes to cut income tax rates by 20 percent and the corporate rate by 10 points, plus abolish the estate tax. Rick Santorum proposes to cut the marginal rate by 7 points, reduce the number of tax brackets from six to two, cut the corporate rate in half to 17.5 percent, and eliminate the estate tax and corporate taxes in the manufacturing sector. Newt Gingrich proposes to install a 15 percent flat tax for income and to abolish the capital gains tax, so one-percenters like Romney could pay no taxes at all instead of 14 percent. All of these plans wildly exceed George W. Bush’s disastrous cuts of 4 percent in the marginal rate and 5 percent in capital gains, with no compensating proposals to eliminate shelters and loopholes. All would reduce federal tax revenue by at least 40 percent.
We are supposed to rest assured that Republicans would find savings by breaking America’s social contracts on Medicare, Medicaid, and Social Security. But Americans support Medicare by 85 percent, and over two-thirds believe that the wealthy should pay more taxes. This is the year, and the election, in which the Reagan era really needs to be ended.
By: Gary Dorrien, Religion Dispatches, March 7, 2012
“Religous Zealot”: Rick Santorum’s JFK Story Makes Me Want To Throw Up
“We establish no religion in this country, we command no worship, we mandate no belief, nor will we ever. Church and state are, and must remain, separate. All are free to believe or not believe, all are free to practice a faith or not, and those who believe are free, and should be free, to speak of and act on their belief.”
Rick Santorum teed off on a venerated former president Sunday morning for telling America that the separation of church and state was “absolute..” Was it the guy responsible for the above quote? No, that was Ronald Reagan, running for re-election in 1984 (h/t BB).
It’s Democrat John F. Kennedy who made Santorum “throw up,” the GOP presidential contender told ABC’s George Stephanopoulus, with his famous 1960 speech to Baptist ministers trying to assuage widespread fears about his Catholicism in order to become our first, and still our only, Catholic president. Santorum claims that JFK said that “people of faith have no role in the public square,” and urged ABC’s viewers to go read the speech for themselves and see.
So I did. (It’s here.) And not surprisingly, that’s not what Kennedy said at all.
First, here’s what Santorum said about Kennedy:
To say that people of faith have no role in the public square? You bet that makes you throw up. What kind of country do we live that says only people of non-faith can come into the public square and make their case? That makes me throw up and it should make every American…Now we’re going to turn around and say we’re going to impose our values from the government on people of faith, which of course is the next logical step when people of faith, at least according to John Kennedy, have no role in the public square.
I don’t believe in an America where the separation of church and state is absolute. The idea that the church can have no influence or no involvement in the operation of the state is absolutely antithetical to the objectives and vision of our country. This is the First Amendment. The First Amendment says the free exercise of religion. That means bringing everybody, people of faith and no faith, into the public square. Kennedy for the first time articulated the vision saying, no, ‘faith is not allowed in the public square. I will keep it separate.’ Go on and read the speech ‘I will have nothing to do with faith. I won’t consult with people of faith.’ It was an absolutist doctrine that was foreign at the time of 1960.
Let me start by saying: Santorum sounds literally hysterical. It’s a troubling sign of the GOP’s desperation that he’s virtually tied with Mitt Romney for the lead in the 2012 primaries. It pains me to actually have to take him seriously.
Of course, there’s no place in Kennedy’s speech where he said “people of faith are not allowed in the public square,” or anything close to that, and Santorum’s saying it three times doesn’t make it true. Here’s one key passage:
I believe in an America where the separation of church and state is absolute, where no Catholic prelate would tell the president (should he be Catholic) how to act, and no Protestant minister would tell his parishioners for whom to vote; where no church or church school is granted any public funds or political preference; and where no man is denied public office merely because his religion differs from the president who might appoint him or the people who might elect him.
I believe in an America that is officially neither Catholic, Protestant nor Jewish; where no public official either requests or accepts instructions on public policy from the Pope, the National Council of Churches or any other ecclesiastical source; where no religious body seeks to impose its will directly or indirectly upon the general populace or the public acts of its officials; and where religious liberty is so indivisible that an act against one church is treated as an act against all.
For while this year it may be a Catholic against whom the finger of suspicion is pointed, in other years it has been, and may someday be again, a Jew— or a Quaker or a Unitarian or a Baptist. It was Virginia’s harassment of Baptist preachers, for example, that helped lead to Jefferson’s statute of religious freedom. Today I may be the victim, but tomorrow it may be you — until the whole fabric of our harmonious society is ripped at a time of great national peril.
It is absolutely clear that Kennedy accepts “people of faith in the public square” – his goal is to make a place for people of every faith in our public life. Kennedy doesn’t even go as far as Christian right hero Reagan, who actually said the separation of church and state protects the right of non-believers, too.
Kennedy doesn’t say he won’t consult with faith leaders; he says he won’t take “instruction on public policy from the Pope.” In fact, he confided in and took advice from Archbishop Philip Hannan, whom he befriended when he was first elected to Congress; Hannan gave the eulogy at Kennedy’s funeral. Sadly, Hannan died last September, after a long career as Archbishop of New Orleans, or else he might be able to refute Santorum from experience.
Kennedy doesn’t promise to renounce his own Catholic beliefs or disobey his conscience, either:
If the time should ever come — and I do not concede any conflict to be even remotely possible — when my office would require me to either violate my conscience or violate the national interest, then I would resign the office; and I hope any conscientious public servant would do the same.
Ironically, Kennedy spoke passionately on behalf of the Catholic Santorum’s right to be in the public square.
If this election is decided on the basis that 40 million Americans lost their chance of being president on the day they were baptized, then it is the whole nation that will be the loser — in the eyes of Catholics and non-Catholics around the world, in the eyes of history, and in the eyes of our own people.
Santorum didn’t lose his chance to be president on the day he was baptized. He lost it – if he ever had it – when he lied about our first Catholic president, who just happened to be a Democrat. For shame.
By: Joan Walsh, Editor at Large, Salon, February 26, 2012