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The GOP’s Lost Debt Ceiling Opportunity

As we teeter closer to the edge of ” Debtmageddon,” it’s worth pausing to recall the “grand bargain” between Republicans and the White House—the Deal that Almost Was.

With no increases in individual tax rates and three dollars in cuts for every new dollar in revenue, could the House have swallowed it?

It’s a question that answers itself: If House leaders are having difficulty pressing through a standalone Republican bill, a “grand bargain” never had a snowball’s chance in the Sahara.

Sensing this, a new strategy unfolded: reframe the debt ceiling debate in terms of scoring a political victory against Democrats.

This had potent visceral appeal. It won over superstar pundits like Charles Krauthammer as well as rank midlevel propagandists such as Jennifer Rubin (“the left will be demoralized”), Pete Wehner (“Obama Will Be Biggest Loser”), and Marc Thiessen (“a modest victory for Republicans, but a major defeat for Obama”).

It almost worked—and it may yet.

But think of what might have been if commonsense prevailed over politics. What if these conservative commentators had spent this energy encouraging a compromise that would have benefited the White House, yes, but also would have gored the sacred cows of the left and yielded significant debt reduction as well as a relatively smaller government?

Instead, they’re left scrambling at the eleventh hour to isolate the “suicide bombers,” who now hold all the cards. They could have been isolated weeks ago.

It would’ve necessitated compromising with Democrats, to be sure. But we’re learning—the hard way—that this was always going to require compromise with Democrats.

 

By: Scott Galupo, U. S. News and World Report, July 29, 2011

July 29, 2011 Posted by | Budget, Congress, Conservatives, Debt Ceiling, Debt Crisis, Deficits, Democracy, Democrats, Economic Recovery, Economy, GOP, Government, Government Shut Down, Ideologues, Ideology, Politics, Public Opinion, Right Wing, Teaparty | , , , , , , , | Leave a comment

Republican Paradox: The Party That Can’t Say Yes

For days, the White House has infuriated its Democratic allies in Congress by offering House Republicans more and more in exchange for a deal to raise the debt ceiling and prevent default. But it was never enough, and, on Friday evening, it became clear that it may never be enough. Speaker John Boehner again walked away from the “grand bargain” he had been negotiating with President Obama, leaving the country teetering on the brink of another economic collapse.

At the White House podium a few minutes later, the president radiated a righteous fury he rarely displays in public, finally placing the blame for this wholly unnecessary crisis squarely where it belongs: on Republicans who will do anything to upend his presidency and dismantle every social program they can find. “Can they say yes to anything?” he asked, noting the paradox of Republicans, who claim that financial responsibility and debt reduction are their biggest priorities, rejecting yet another deal that would have cut that debt by at least $3 trillion.

Mr. Obama, in fact, had already gone much too far in trying to make his deal palatable to House Republicans, offering to cut spending even further than the deficit plan proposed this week by the bipartisan “Gang of Six,” which includes some of the Senate’s most conservative members. The White House was willing to cut $1 trillion in domestic and defense spending and another $650 billion from Medicare, Medicaid and even Social Security.

Much of that savings would have come from raising the eligibility age for Medicare benefits and reducing the cost-of-living increases that elderly people depend on when receiving their health and pension benefits. It could have caused significant damage to some of the nation’s most vulnerable people.

The “bargain” would require that alongside these cuts, tax revenues would go up by $1.2 trillion, largely through a rewrite of the tax code to eliminate many deductions and loopholes. That’s substantially less in revenue than the $2 trillion in the “Gang of Six” plan. The problem is that while much of the cutting would start right away, most of the revenue increases would be put off, in part because a tax-code revision would take months, and in part to allow House Republicans to say they did not agree to any specific tax revenue increases.

Democratic lawmakers were rightly furious when they heard about these details this week, calling the plan wholly unbalanced. But, in the end, it was Mr. Boehner who torpedoed the talks. He said Friday evening that he and the president had come close to agreeing on $800 billion of the revenue increases (the equivalent of letting the upper-income Bush tax cuts expire as scheduled next year — not much of a heavy lift) but could not stomach another $400 billion the White House wanted to raise through ending tax loopholes and deductions.

So, on the eve of economic calamity, the Republicans killed an overly generous deal largely over a paltry $400 billion in deductions. Mr. Obama was willing to take considerable heat from his liberal critics over the deal, and the Republicans were not willing to do a thing to anger their Tea Party base. As the president forcefully said, there is no evidence that House Republicans are capable of making those tough decisions. If last-ditch talks beginning Saturday fail, they will have to take responsibility if the unimaginable — a government default — happens in 10 days and the checks stop going out.

By: The New York Times, Editorial, July 22, 2011

July 24, 2011 Posted by | Congress, Conservatives, Consumers, Debt Ceiling, Debt Crisis, Deficits, Democracy, Democrats, Economic Recovery, Economy, Federal Budget, GOP, Government, Government Shut Down, Ideologues, Ideology, Lawmakers, Medicare, Middle Class, Politics, President Obama, Public, Public Opinion, Republicans, Right Wing, Tax Credits, Tax Increases, Tax Loopholes, Taxes, Teaparty | , , , , , , , , , , , , , , , | Leave a comment

No Credibility Or Integrity: What McKinsey & Company Has To Hide

An outfit called McKinsey & Company released a report this week making all kinds of discouraging claims about the Affordable Care Act. According to the study, nearly a third of American businesses will stop offering health coverage to their employees as a result of the new reform law. Several news outlets pounced on the release of the report, as did many Republicans.

The White House’s Nancy-Ann DeParle, in a rather understated response, urged caution.

A central goal of the Affordable Care Act is to reduce the cost of providing health insurance and make it easier for employers to offer coverage to their workers. We have implemented the law at every step of the way to minimize disruption and maximize affordability for businesses, workers, and families. And we agree with experts who project that employers will continue to offer high quality benefits to their workers under the new law. This one discordant study should be taken with a grain of salt.

That’s putting it mildly.

McKinsey claims to have done a survey of 1,300 employers. How was it conducted? We don’t know and McKinsey hasn’t said. What were the questions? We don’t know and McKinsey hasn’t said. How were the employers chosen? We don’t know and McKinsey hasn’t said. What were the statistical breakdowns among businesses of different sizes? We don’t know and McKinsey hasn’t said.

Who funded the study? We don’t know and McKinsey hasn’t said.

Kate Pickert noticed a small tidbit in the report: McKinsey acknowledged having “educated” those participating in the survey. And what, pray tell, did the company say to respondents that might have affected the results? You guessed it: we don’t know and McKinsey hasn’t said.

Politico added today that it “asked really nicely” to at least see the questionnaire McKinsey used to conduct the employers survey, but the company refused.

Raise your hand if you think the McKinsey & Company report has some credibility problems.

But here’s the angle to keep an eye on. How soon will Republican talking points simply incorporate this highly dubious claim into all arguments about health care policy? That’s usually how this game works — sketchy outfit tells the GOP what it wants to hear; Dems point out how baseless the claim is, and the media presents the information in a he-said-she-said format, leaving the public to think “both sides” have merit.

Keep this in mind the next time you hear a Republican claim on television, “We recently learned that a third of American businesses will stop ensuring their workers.” It won’t be true, but that won’t matter.

By: Steve Benen, Contributing Writer, Washongton Monthly-Political Animal, June 9, 2011

June 10, 2011 Posted by | Affordable Care Act, Businesses, Conservatives, Democrats, GOP, Government, Health Care, Health Care Costs, Health Reform, Ideologues, Ideology, Politics, Public, Republicans, Right Wing, Under Insured, Uninsured | , , , , | Leave a comment

A Silent Rebuke Of “The War On Terrorism”

In a  measured East Room address late yesterday, President Obama announced the death  of Osama bin Laden and took a somber look back at Sept. 11, 2001, a  tragically beautiful day on the East Coast. A “cloudless sky”  set the scene for nearly three thousand deaths and two fallen towers by the  time it was done.

Listening  for what the president didn’t say in speaking to the nation, I came away  impressed with his choice of words. He deftly left out three of them:  “war on terror.” Cutting that phrase out of the political  lexicon is a graceful, silent rebuke to its authors. Never has that been  seen in a clearer light as last night. It’s far from just semantic.

Even  in his winning mode, Obama disowned that particular dog of war—and did not  let “terror” bark. Good for him, good for the nation, good for the  world. President George W. Bush and his dark side, Dick Cheney, used this  vague construct constantly and carelessly from day one, while the ruins of  September 11 were still smoking.

Waging  a “war on terror” made the American people estranged from  each other and made the whole world seem like a more dangerous place. Our  initial unity after the September 11 attacks dissolved in a sea of stress and  anxiety. The “war on terror” ran counter to our can-do  spirit because, we heard, there was nothing we could do to fight terrorism, but  go shopping. So much for sacrifices. Lots of dark acts were  committed in the name of the “war on terror,” often literally in the  dark and far from where we live.

As  citizens, we have no full reckoning of what the “war on terror”  was used to justify, no receipt for its cost in lives, U.S. treasury dollars,  and our fallen place in the world community. Sunday’s late-night speech  indicated Obama has given this matter serious thought and its fair due.  He’s sending out signals to friends and foes alike that the Wild West  doesn’t live at the White House anymore, not even on a day when he achieved  Bush’s fondest dream as president. In more specific language, he simply  spoke of our “war against al-Qaeda.” How sweet it was to watch and to hear his well-chosen words that steered clear of “with us or against  us,” “dead or alive,” or bragging about being the  greatest nation. Gloating does not become a president.

Speaking  of Bush, his official statement indicated he knew “war on terror” is no longer acceptable in policy parleys, so he changed it to  “fight against terrorism.” Do they have enough crow down there  in Texas for him?

Save  some for the prince of darkness, too.

By: Jamie Stiehm, U. S. News and World Report, May 2, 2011

May 2, 2011 Posted by | 911, Foreign Policy, Ground Zero, Homeland Security, Islam, Justice, Military Intervention, Politics, President Obama, Terrorism | , , , , , , , , , , | Leave a comment

What’s In The Compromise Spending Bill?

After a marathon four-day bill drafting session, the House Appropriations Committee early Tuesday morning unveiled compromise legislation to fund the federal government for the remainder of the fiscal year and cut $38.5 billion from current spending levels.

House Republican leaders struck a deal with Senate Democrats and the White House late Friday after pushing to cut $61 billion from current spending levels. GOP leaders hope to put the bill on the floor Wednesday, with Senate action expected Thursday. The current stopgap funding measure expires Friday.  

Overall, labor, health, and education programs received a $5.5 billion cut from last fiscal year’s level, including the cancellation of 55 programs for savings of more than $1 billion. The final legislation prevents 218,000 low-income children from being removed from Head Start and rejects education grant funding that would have cost approximately 10,000 jobs and reduced educational services to 1 million students, according to Senate Appropriations Committee summary.

Here’s where the spending cuts (and, in the case of Defense, the increases) come from:

  • TRANSPORTATION AND HOUSING. These programs would receive the largest cut under the compromise, $12.3 billion from fiscal 2010 levels, including a total of $2.9 billion in cuts for high-speed rail, $991 million in cuts to transit programs, and a $3.2 billion rescission of highway funding, including $630 million worth of old earmarks. The Department of Housing and Urban Development’s community development fund would get a $942 million cut.
  • SCIENCE. The continuing resolution also blocks funding for the establishment of a Climate Service at the National Oceanic and Atmospheric Administration; for the approval of new fisheries catch-share programs in certain fisheries; and for NASA and the Office of Science and Technology Policy to engage in bilateral activities with China.
  • AGRICULTURE. Agriculture programs would see $3 billion in cuts from fiscal 2010, including a $10 million cut to food and safety inspection, but the plan allows “for uninterrupted meat, poultry, and egg products inspection activities of the” Agriculture Department, the committee said. The USDA’s Special Supplemental Feeding Program for Women, Infants, and Children, also known as WIC, received $6.75 billion, which is a $504 million cut from the fiscal 2010 level.
  • ENERGY. Energy and water programs were reduced by a relatively modest $1.7 billion. The bill funds the Army Corps of Engineers at the president’s request level of $4.9 billion and supports existing applications for renewable energy loan guarantees at the Department of Energy.
  • WASHINGTON, D.C. The compromise restores a long-standing provision against the use of federal and local funds for abortions in the District of Columbia, and includes the reauthorization of the D.C. Opportunity Scholarships, along with a $2.3 million funding increase, to stop the termination of the program and allow new students to participate.
  • HOMELAND SECURITY. A $784 million net reduction over last year, including a $786 million cut to Federal Emergency Management Agency first-responder grants and elimination of $264 million in funding that was previously targeted to earmarks.
  • DEFENSE. Funded at $513 billion in the CR, about $5 billion above last year. The bill also includes an additional $157.8 billion for overseas contingency operations (emergency funding).

By: Humberto Sanchez, National Journal, April 12, 2011

April 13, 2011 Posted by | Budget, Congress, Deficits, Economy, Education, Energy, Environment, Government, Health Care, Homeland Security, Jobs, Labor, Politics | , , , , , , , , , , , , , | Leave a comment