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No More Civility: Bipartisanship In “Republican-Speak” Is Code For Tax Cuts For The Wealthy

Last week, President Obama offered a spirited defense of his party’s values — in effect, of the legacy of the New Deal and the Great Society. Immediately thereafter, as always happens when Democrats take a stand, the civility police came out in force. The president, we were told, was being too partisan; he needs to treat his opponents with respect; he should have lunch with them, and work out a consensus.

That’s a bad idea. Equally important, it’s an undemocratic idea.

Let’s review the story so far.

Two weeks ago, House Republicans released their big budget proposal, selling it to credulous pundits as a statement of necessity, not ideology — a document telling America What Must Be Done.

But it was, in fact, a deeply partisan document, which you might have guessed from the opening sentence: “Where the president has failed, House Republicans will lead.” It hyped the danger of deficits, yet even on its own (not at all credible) accounting, spending cuts were used mainly to pay for tax cuts rather than deficit reduction. The transparent and obvious goal was to use deficit fears to impose a vision of small government and low taxes, especially on the wealthy.

So the House budget proposal revealed a yawning gap between the two parties’ priorities. And it revealed a deep difference in views about how the world works.

When the proposal was released, it was praised as a “wonk-approved” plan that had been run by the experts. But the “experts” in question, it turned out, were at the Heritage Foundation, and few people outside the hard right found their conclusions credible. In the words of the consulting firm Macroeconomic Advisers — which makes its living telling businesses what they need to know, not telling politicians what they want to hear — the Heritage analysis was “both flawed and contrived.” Basically, Heritage went all in on the much-refuted claim that cutting taxes on the wealthy produces miraculous economic results, including a surge in revenue that actually reduces the deficit.

By the way, Heritage is always like this. Whenever there’s something the G.O.P. doesn’t like — say, environmental protection — Heritage can be counted on to produce a report, based on no economic model anyone else recognizes, claiming that this policy would cause huge job losses. Correspondingly, whenever there’s something Republicans want, like tax cuts for the wealthy or for corporations, Heritage can be counted on to claim that this policy would yield immense economic benefits.

The point is that the two parties don’t just live in different moral universes, they also live in different intellectual universes, with Republicans in particular having a stable of supposed experts who reliably endorse whatever they propose.

So when pundits call on the parties to sit down together and talk, the obvious question is, what are they supposed to talk about? Where’s the common ground?

Eventually, of course, America must choose between these differing visions. And we have a way of doing that. It’s called democracy.

Now, Republicans claim that last year’s midterms gave them a mandate for the vision embodied in their budget. But last year the G.O.P. ran against what it called the “massive Medicare cuts” contained in the health reform law. How, then, can the election have provided a mandate for a plan that not only would preserve all of those cuts, but would go on, over time, to dismantle Medicare completely?

For what it’s worth, polls suggest that the public’s priorities are nothing like those embodied in the Republican budget. Large majorities support higher, not lower, taxes on the wealthy. Large majorities — including a majority of Republicans — also oppose major changes to Medicare. Of course, the poll that matters is the one on Election Day. But that’s all the more reason to make the 2012 election a clear choice between visions.

Which brings me to those calls for a bipartisan solution. Sorry to be cynical, but right now “bipartisan” is usually code for assembling some conservative Democrats and ultraconservative Republicans — all of them with close ties to the wealthy, and many who are wealthy themselves — and having them proclaim that low taxes on high incomes and drastic cuts in social insurance are the only possible solution.

This would be a corrupt, undemocratic way to make decisions about the shape of our society even if those involved really were wise men with a deep grasp of the issues. It’s much worse when many of those at the table are the sort of people who solicit and believe the kind of policy analyses that the Heritage Foundation supplies.

So let’s not be civil. Instead, let’s have a frank discussion of our differences. In particular, if Democrats believe that Republicans are talking cruel nonsense, they should say so — and take their case to the voters.

By: Paul Krugman, Op-Ed Columnist, The New York Times, April 17, 2011

April 18, 2011 Posted by | Affordable Care Act, Budget, Congress, Conservatives, Corporations, Deficits, Democracy, Democrats, Economy, Elections, GOP, Government, Ideology, Journalists, Media, Neo-Cons, Politics, President Obama, Public Opinion, Republicans, Right Wing, Taxes, Voters, Wealthy | , , , , , , , , , , , | Leave a comment

Remember When The GOP Hated Medicare Cuts?

You’ve seen hypocrisy in politics before. But rarely have you seen the brazen kind Republicans just showed on the House floor, when they voted for Budget Chairman Paul Ryan’s “Path to Prosperity.”

Ryan’s budget calls for repealing most of the Affordable Care Act, including both the insurance coverage expansions and creation of an independent board to help restrain Medicare costs. But it would leave in place the rest of the planned reductions in Medicare spending, at least for the next ten years. Among those cuts are $136 billion in reductions to Medicare Advantage plans.

As you may know, Medicare Advantage plans are the private insurance alternative, already in existence, for seniors who prefer to opt out of the traditional, government-run insurance plan. About a quarter of all seniors now use them. The government pays insurers a fee for every senior who enrolls, but studies have shown the government is paying too much. That’s how supporters of the Affordable Care Act have justified the $136 billion reduction.

Throughout the health care debate, Republicans not only rejected these and other arguments for Medicare cuts. They made the cuts a centerpiece of their attacks on Democrats, as the Associated Press noted recently:

“The new law’s massive Medicare cuts will fall squarely on the backs of seniors, millions of whom will be forced off their current Medicare coverage,” the GOP wrote in their Pledge to America, an election-season manifesto. …

In addition to the Pledge to America, House Speaker John Boehner, House Majority Leader Eric Cantor and individual Republican candidates all criticized the cuts.

The National Republican Congressional Committee featured them in ads attacking Democrats in numerous campaign commercials, and some individual candidates made use of the cuts as well.

Ryan and his supporters claim the Medicare reductions in the new Republican budget are different, because Democrats used their cuts to finance more government spending. And that’s partially true. Although Democrats bolstered Medicare drug coverage and arguably put in place policies that will lead to higher quality care, they used the bulk of the saved Medicare money to offset the cost of subsidizing insurance for working-age Americans.

But, by the same logic, Republicans are also diverting most of the Medicare Advantage money away from Medicare. They’re using that money to underwrite the cost of tax cuts for the wealthy.

So Democrats are cutting Medicare to make sure everybody has health insurance, while Republicans are cutting Medicare to make sure millionaires have tax cuts. This is really an argument the Republicans want to make?

By: Jonathan Cohn, The New Republic, April 15, 2011

April 17, 2011 Posted by | Affordable Care Act, Budget, Congress, Conservatives, Deficits, Democrats, GOP, Government, Health Care, Health Care Costs, Health Reform, Medicare, Neo-Cons, Politics, Republicans, Right Wing, Taxes, Wealthy | , , , , , , , , , , , | Leave a comment

The Long Game In The Budget Battles: Advantage Obama

Late last year, when President Obama overhauled his economic team, some people complained that the departure of Larry Summers and Christina Romer left the White House short of first-rate economists. That may have been true, but what the White House lost in intellectual sparkle it more than made up for in Washington know-how. With Gene Sperling as head of the National Economic Council and Jack Lew as budget director, it boasts two veterans of the Clinton-era budget war—two men who know how to outmaneuver right-wing Republicans.

In the past few months, Sperling and Lew have been playing from the nineteen-nineties playbook. Initially, they produced a budget for 2012 that didn’t do very much at all about long-term deficits, and was instantly proclaimed dead on arrival. Budget hawks cried foul. But the White House was playing a long game, and its budget proposal was merely an opening gambit. Then came Congressman Paul Ryan with his radical “roadmap” to budget balance over the next ten years, which featured slashing reductions in domestic spending, more big tax cuts for the rich, and the conversion of Medicare to a voucher program. I irked some readers by saying that Ryan deserved credit for at least making a specific proposal, but I still believe liberals everywhere should be grateful. By spelling out what the Republicans would do to Medicare and Medicaid, he may well have deprived his party of the White House for the foreseeable future.

If you want to know why Ryan’s “budget-cutting” plan makes no financial sense, the Financial Times’ Martin Wolf spells it out very clearly in his latest column, which is based on an analysis by the non-partisan Congressional Budget Office analysis. If you want to know why Ryan’s plan is political poison, look at Ezra Klein’s blog, where he cites a recent opinion poll showing that a plurality of Republicans—yes Republicans—think the best option for Medicare is to not cut it at all. To say the very least, Ryan presented President Obama with a big opportunity to occupy the center ground. And despite the jibes about him being a covert socialist, this is clearly the ground on which the President feels most comfortable.

And so to today’s budget speech, in which Obama presented his own eminently centrist plan to reduce the deficit without privatizing Medicare, without slashing domestic spending to the point where many government programs won’t be able to operate, and without introducing any big tax increases. I wouldn’t sweat the individual numbers that Obama presented, such as his claim that his proposals would cut the budget deficit by four trillion dollars over twelve years. Forecasting the budget deficit next year is a challenge. Forecasting the deficit three years out is extremely difficult. Ten-year budget projections are largely meaningless.

What is important is the big picture. Where Ryan proposes radical changes to taxes and spending that would alter the social contract between government and governed, President Obama is arguing that we can trim our way to fiscal sustainability. Some cuts here, some tax breaks eliminated there, and, lo and behold, the deficit will be down to two per cent of G.D.P.

To be fair, the President isn’t saying it will be easy. If by 2014 Congress can’t come up with enough cuts to stabilize the debt-to-G.D.P. ratio, he is calling for a “debt failsafe” trigger that would involve spending reductions in all programs except Social Security, Medicaid, and low-income programs. To slow the growth of entitlement spending, he is proposing to beef up the Independent Payment Advisory Board, which the health-care reform act created, and setting it at a target of keeping Medicare growth to the rate of G.D.P. growth plus half a per cent. Even the Pentagon, which has been largely exempted from budget pressures since 9/11, would have to find some (overly modest) cuts. But compared to what Ryan is proposing, these are all relatively minor changes.

Is the plan credible? Without seeing the details, it is hard to say. In the fact-sheet it circulated today, the White House avoided saying which tax loopholes it is in favor of eliminating—the mortgage interest deduction?—and it also failed to provide any projections about, say, the level of federal spending and debt as a percentage of G.D.P. in 2020. That vagueness was certainly deliberate. At this juncture, the White House still doesn’t want to reveal all of its hand. Rather than placating the budget hawks with a definitive and fully worked out set of proposals, the Administration is betting that the bond market will give it more time—time in which the American people can learn more about the specifics of Ryan’s proposals, and get even less enthusiastic about them.

This game still has a long way to run. But if I were a betting man, and occasionally I am, I would wager on Sperling and Lew coming out on top rather than the congressman from Wisconsin.

By: John Cassidy, The New Yorker, April 13, 2011

April 14, 2011 Posted by | Congress, Conservatives, Democrats, Economy, Federal Budget, GOP, Ideology, Lawmakers, Medicaid, Medicare, Politics, President Obama, Rep Paul Ryan, Republicans, Right Wing, Social Security | , , , , , , , , , , , | Leave a comment

What The Republican Budget Plans Tell Us About Republican Values

The Republicans want you to believe that they’re concerned about the deficit. Of course, that concern is a lie. They don’t care about the deficit. They only care about using the deficit as an excuse to pursue their extremist agenda. And the single most extreme part of it is their war on people. On workers. On women. On immigrants. On the environment that keeps us all healthy and alive. If they cared about the deficit itself, they’d have noticed that the previous three Republican presidents produced consecutively the largest deficits in human history, each outdoing his predecessor, and the most recent Republican president not merely shattering his father’s unprecedented standard, but actually having to destroy the federal surplus built by a Democratic president in order to do so. An impressive feat, by any measure. But when Republicans talk about deficits, you know they are lying. Republicans destroy surpluses and create record deficits. That’s the truth.

If Republicans cared about the deficit, they wouldn’t have held middle-class tax cuts hostage for a ransom of tax cuts for the very wealthy, tax cuts that the very wealthy do not need. Tax cuts for the wealthy that won’t create jobs or stimulate the economy. Tax cuts for the wealthy that added to the federal deficit, the same federal deficit Republicans now pretend to be so worried about that they need to slash and burn federal spending. Spending for such things as food assistance for low-income Americans, which Republicans want to cut even as they retain farm subsidies. Spending for such things as life-saving immunizations. Spending for such things as food and health assistance around the world, without which some 70,000 children could die. And not content to make Americans go hungry and die of preventable diseases, and for tens of thousands of children around the world to starve to death, rather than have the very wealthy pay more taxes, Republicans also have their “hearts” set on eliminating Medicare and eviscerating Medicaid. And they want to repeal the Obama health plan, even though doing so would make the deficit even worse.

Let’s not pretend that Republicans actually care about the deficit. If they did, their approach in addressing it would be responsible and humane. Republicans don’t care about the deficit. They only care about cutting government programs that help people in need. It’s part of their larger agenda of blatant class warfare. Republicans prefer that millions of people suffer, and that at least tens of thousands of people die, rather than that the very wealthy once again pay the taxes that eliminated the previous Republican deficits to create the previous Democratic surplus. Leave it to the mental health professionals to diagnose the psychology of such values. If anyone can afford mental health professionals, with states now also in budget crises thanks to the genius of tax cuts.

But lest you think that Republicans don’t have any spending priorities at all, keep in mind that they do want to use federal money, just so it is spent in pursuit of their Medieval social agenda. But that’s just relative pocket change. While Republicans seem actually to want for people in need to suffer and die, they also want to throw unfathomably budget-busting pallets of cash at their favorite budget sinkhole. As reported by Ryan Grim:

While media attention focuses on the cuts to government spending demanded by House Republicans and broadly accepted by Democrats, the Pentagon is poised to reap billions more in federal funds, according to sources close to the discussions. The confines of the budget negotiations established by the two parties results in a system where every extra dollar going to military spending ends up being offset by a dollar reduction in spending on domestic social programs.

Got that? It’s an actual tradeoff. Punish more people in need to free up more cash for the Pentagon. The Democrats actually proposed some reductions to the Pentagon budget, and in January Defense Secretary Robert Gates and Chairman of the Joint Chiefs Mike Mullen outlined plans for responsible Pentagon budget cuts:

“A major objective beyond creating monetary savings is to make this department less cumbersome, less top heavy and more agile and effective in the execution of its responsibilities,” Gates said. “My hope and expectation is that as a result of these changes over time, what had been a culture of endless money, where cost was rarely a consideration, will become a culture of savings and restraint.”

But Republicans know better than the Defense Secretary and the Chairman of the Joint Chiefs. Grim:

Democrats and Republicans are now moving toward an agreement that would increase defense spending. But Democratic sources close to the talks said the Democrats’ spending recommendation remains roughly $2 billion shy of that of their Republican counterparts. A spokesman for the Senate spending panel declined to comment, citing ongoing talks. A spokesman for Senate Democratic leadership did not respond to requests for comment.

So the Pentagon itself says it doesn’t need more money, but not only are Democrats being pushed to give them more, the Republicans are insisting that the amount the Democrats are offering, and which the Pentagon says it doesn’t need, still isn’t enough! But it’s so important that we cut the deficit that we have to cut funding that feeds the hungry, prevents disease, and cares for the sick. And keep in mind that it’s not as if the Pentagon is anything remotely close to being underfunded. So what is it? Do Republicans think the answer to everything is to throw money at it? Do they have so little respect for the men and women in American uniform that they think they need such hardware overkill in order to protect the homeland? Are Republicans perpetually mired in a state of priapic adolescent arrested development, thinking the measure of their machismo is the size of their arsenal? Or is it just good old corporate welfare for the military industrial complex? Maybe it’s some combination of all of the above. But it’s a staggeringly irresponsible waste of resources that does nothing to enhance our national security.

As The Center for Arms Control and Non-Proliferation made clear, the United States spends more than eight times as much on defense as does the next closest country, Russia. The United States spends more than twice as much as does the next major military presence, which is America’s combined NATO allies. And not that it will satisfy paranoid Republicans, but the United States spends more than three times as much as do imagined potential adversaries Russia, China, Saudi Arabia, Iran, Pakistan and Venezuela combined. And for those particularly paranoid Republicans, the United States also spends more than 10 times as much as does that most sinister of all perpetual antagonists: France. And to put it in terms of actual budget and policy priorities, there is this concise explanation from The Center on Budget and Policy Priorities:

Between fiscal year 2001 (the last year for which appropriations levels were set under President Clinton) and fiscal year 2008, funding for domestic discretionary programs has been more constrained than any other area of the budget and has shrunk both as a share of the budget and as a share of the economy. In contrast, appropriations for defense and other security-related programs have increased more rapidly than any other area of the budget — even more rapidly than the costs of the “big three” entitlement programs: Social Security, Medicare, and Medicaid.

Republicans don’t care about the budget. They are using the budget as an excuse and red herring to recast the very nature of the United States government, and the very nature of the United States. They don’t care if those in need suffer and die. They don’t care about jobs. They don’t care about a social safety net. They do care very much about protecting the very wealthy. They do care very much about wealthy corporations. And the one thing at which they want to throw truly unimaginable amounts of money is the military. This is a huge clue as to their mindset. Because when you stop and consider the consequences of causing more and more suffering and unrest among more and more people while at the same time ensuring that the military is much more powerful than any military anywhere needs be, the only conclusion that can be drawn is that Republican values are not only inhuman and inhumane, they are dangerous and creepy.

By: Laurence Lewis, Daily Kos, April 10, 2011

April 11, 2011 Posted by | Class Warfare, Conservatives, Consumers, Debt Crisis, Deficits, Economy, Federal Budget, GOP, Government, Health Care, Human Rights, Ideologues, Medicaid, Medicare, Middle Class, Politics, Republicans, Right Wing | , , , , , , , , , | Leave a comment

Ludicrous and Cruel: America Is Being Punked By GOP Voodoo Economics

Many commentators swooned earlier this week after House Republicans, led by the Budget Committee chairman, Paul Ryan, unveiled their budget proposals. They lavished praise on Mr. Ryan, asserting that his plan set a new standard of fiscal seriousness.

Well, they should have waited until people who know how to read budget numbers had a chance to study the proposal. For the G.O.P. plan turns out not to be serious at all. Instead, it’s simultaneously ridiculous and heartless.

How ridiculous is it? Let me count the ways — or rather a few of the ways, because there are more howlers in the plan than I can cover in one column.

First, Republicans have once again gone all in for voodoo economics — the claim, refuted by experience, that tax cuts pay for themselves.

Specifically, the Ryan proposal trumpets the results of an economic projection from the Heritage Foundation, which claims that the plan’s tax cuts would set off a gigantic boom. Indeed, the foundation initially predicted that the G.O.P. plan would bring the unemployment rate down to 2.8 percent — a number we haven’t achieved since the Korean War. After widespread jeering, the unemployment projection vanished from the Heritage Foundation’s Web site, but voodoo still permeates the rest of the analysis.

In particular, the original voodoo proposition — the claim that lower taxes mean higher revenue — is still very much there. The Heritage Foundation projection has large tax cuts actually increasing revenue by almost $600 billion over the next 10 years.

A more sober assessment from the nonpartisan Congressional Budget Office tells a different story. It finds that a large part of the supposed savings from spending cuts would go, not to reduce the deficit, but to pay for tax cuts. In fact, the budget office finds that over the next decade the plan would lead to bigger deficits and more debt than current law.

And about those spending cuts: leave health care on one side for a moment and focus on the rest of the proposal. It turns out that Mr. Ryan and his colleagues are assuming drastic cuts in nonhealth spending without explaining how that is supposed to happen.

How drastic? According to the budget office, which analyzed the plan using assumptions dictated by House Republicans, the proposal calls for spending on items other than Social Security, Medicare and Medicaid — but including defense — to fall from 12 percent of G.D.P. last year to 6 percent of G.D.P. in 2022, and just 3.5 percent of G.D.P. in the long run.

That last number is less than we currently spend on defense alone; it’s not much bigger than federal spending when Calvin Coolidge was president, and the United States, among other things, had only a tiny military establishment. How could such a drastic shrinking of government take place without crippling essential public functions? The plan doesn’t say.

And then there’s the much-ballyhooed proposal to abolish Medicare and replace it with vouchers that can be used to buy private health insurance.

The point here is that privatizing Medicare does nothing, in itself, to limit health-care costs. In fact, it almost surely raises them by adding a layer of middlemen. Yet the House plan assumes that we can cut health-care spending as a percentage of G.D.P. despite an aging population and rising health care costs.

The only way that can happen is if those vouchers are worth much less than the cost of health insurance. In fact, the Congressional Budget Office estimates that by 2030 the value of a voucher would cover only a third of the cost of a private insurance policy equivalent to Medicare as we know it. So the plan would deprive many and probably most seniors of adequate health care.

And that neither should nor will happen. Mr. Ryan and his colleagues can write down whatever numbers they like, but seniors vote. And when they find that their health-care vouchers are grossly inadequate, they’ll demand and get bigger vouchers — wiping out the plan’s supposed savings.

In short, this plan isn’t remotely serious; on the contrary, it’s ludicrous.

And it’s also cruel.

In the past, Mr. Ryan has talked a good game about taking care of those in need. But as the Center on Budget and Policy Priorities points out, of the $4 trillion in spending cuts he proposes over the next decade, two-thirds involve cutting programs that mainly serve low-income Americans. And by repealing last year’s health reform, without any replacement, the plan would also deprive an estimated 34 million nonelderly Americans of health insurance.

So the pundits who praised this proposal when it was released were punked. The G.O.P. budget plan isn’t a good-faith effort to put America’s fiscal house in order; it’s voodoo economics, with an extra dose of fantasy, and a large helping of mean-spiritedness.

By: Paul Krugman, Op-Ed Columnist, The New York Times, April 7, 2011

April 8, 2011 Posted by | Budget, Congress, Conservatives, Consumers, Deficits, Democrats, Economic Recovery, Economy, Federal Budget, GOP, Government Shut Down, Health Care Costs, Ideologues, Independents, Journalists, Media, Medicare, Planned Parenthood, Politics, Pundits, Republicans, Right Wing, Senate, Uninsured, Voters | , , , , , , , , , , , , , , | 1 Comment