mykeystrokes.com

"Do or Do not. There is no try."

“The Right’s Word-Deed Problem”: Republicans Rely On All Sorts Of Magic Tricks That Shove Choices And Problems Down The Road

Briefly, there seemed a chance we might have a cross-party discussion of the biggest economic problem the country faces: the vexing intersection of wage stagnation, declining social mobility and rising inequality.

Even the most conservative Republicans were starting to talk about this challenge in rather urgent terms. In a moment whose irony he noted, Senator Ted Cruz (R-TX) told a bunch of rich Republicans gathered by the Brothers Koch earlier this year that those doing well in America were “the top 1 percent, the millionaires and billionaires the president loves to demagogue, one or two of whom are here with us tonight” while the “people who have been hammered for the last six years are working men and women.”

And on it went through the country’s top Republicans. Senator Marco Rubio (R-FL) stressed “opportunity inequality” and Mitt Romney, in another ironic turn, charged that “under President Obama, the rich have gotten richer.”

It would be wonderful if conservatives really wanted to deal constructively with the predicament they so passionately describe. But thanks to the House and Senate GOP budgets, we now know that conservatives and Republicans (1) aren’t serious about the plight of working class and lower-income Americans, and (2) would actually make their situations much worse.

Their spending plans fail even on conservative terms: They are not fiscally responsible. Instead, they rely on all sorts of magic tricks that shove choices and problems down the road.

One heartening sign is that at least some conservatives find these budgets ridiculous. For example, James Pethokoukis of the American Enterprise Institute headlined his commentary for The Week: “The disappointing unseriousness of the House GOP’s budget.”

Pethokoukis wrote: “House Republicans say they want to balance the federal budget and eventually eliminate the federal debt. They do not have a plan to do so. Oh, to be sure, they have a plan! Just not a realistic one that will actually accomplish their goals.”

He noted that of the $5.5 trillion in cuts from planned spending, $2 trillion would come from “repealing the Obamacare insurance subsidies and Medicaid expansion and replacing them with … well, nothing right now.”

The wholesale assault on efforts to provide lower-income Americans with health insurance is the clearest sign that Republicans don’t want to deal with inequality. The inability to get health insurance is one of the biggest burdens on low-income families, particularly those working for low wages and few or no benefits.

Obamacare has helped 16.4 million Americans get health insurance. Where would they turn? And Republicans would compound the damage: The Senate proposes cutting an additional $400 billion from Medicaid over a decade, the House more than double that. Robert Greenstein of the Center on Budget and Policy Priorities notes that on other low-income programs, the Senate budget cuts even more than the House. The vagueness of these plans makes it hard to tally how much damage would be done to food stamps, Pell Grants for low-income college students and the like, but Greenstein estimates that about two-thirds of the cuts in both plans come “from programs for the less fortunate, thereby exacerbating poverty and inequality.”

Greenstein concludes that under such proposals — here’s hoping President Obama is relentless in blocking them — “ours would be a coarser and less humane nation with higher levels of poverty and inequality, less opportunity,” and an “inadequately prepared” workforce.

Another bit of hypocrisy: These budget writers care so much about national security that they’re not willing to raise a dime in taxes to cover their sharp increases in defense spending. Senator Bernie Sanders, the Vermont independent, called out his conservative colleagues for how differently they treat defense and social spending.

“You’re always telling us the deficit is so bad we’ve got to cut programs for the elderly, for the sick and for the poor,” Sanders said, “and suddenly, all of that rhetoric disappears.”

Budgets are, by their nature, boring. That’s why those who assemble these long columns of numbers figure they can assail the well-being of the least privileged people in our society even as they profess to care about them so much.

I’d respect these folks a lot more if they said what they clearly believe: They think more inequality would be good for us. It almost makes you nostalgic for the candor of the Romney who spoke about the “47 percent” and the Paul Ryan who once divided us between “makers” and “takers.” Honesty beats saccharine words about the struggles of working people any day.

 

By: E. J. Dionne, Jr., Opinion Writer, The Washington Post; Featured Post, The National Memo, March 23, 2015

March 24, 2015 Posted by | Budget, Republicans, Wage Stagnation | , , , , , , | Leave a comment

“More Worried About Their Reputation”: Republicans Don’t Really Care About Inequality

The Republican Party appears to accept that poverty and the inequities of wealth and political power that have prevailed over the last 15 years are issues it can no longer ignore. Not without paying a price. After all, Mitt Romney’s cool indifference to the everyday struggles of working Americans went a long way toward sinking his 2012 campaign.

But expressing concern about inequality is one thing. Doing something about it is another. The GOP so far appears more worried about its reputation as being the party of the very, very rich, than the empirical reality of its being the party of the very, very rich.

At a recent Republican gathering, Senator Ted Cruz of Texas gave voice to the party’s incongruity of perception and reality. “I think Republicans are and should be the party of the 47 percent,” he said. Later at that same event, billionaire brothers Charles and David Koch announced plans to spend nearly $1 billion through their political network in the next race for the White House, with virtually all of it going to the Republican Party’s nominee.

If the GOP were truly troubled by historic rates of income and wealth inequality, it would rubber-stamp President Barack Obama’s plan to raise taxes on the wealthy and use the proceeds to fund infrastructure projects like roads, bridges, waterways, and sewer systems. Public investments like these have historically garnered broad support, because they are neutral vehicles for achieving the goals of statecraft. Such expenditures would not only create hundreds of thousands of seasonal jobs, as well as many thousands of permanent jobs, but also stimulate economic activity on a national scale. And they’d pay for themselves over time.

The president’s $4 trillion fiscal budget would tap into offshore accounts and Wall Street transactions that only the very, very rich possess and thus care about. In addition to public works, which Obama has been calling for since his took office, increased revenues would be used for free community college and universal child care.

This, or something like it, is what serious people talk about if they are serious about combating inequality. Progressive redistribution, however bitter-tasting the phrase may be, must be on the table. But all we are likely to hear, especially from Republicans aiming high, are platitudes steeped in conservative morality, homilies to the power of private enterprise freed from the bonds of bureaucratic red tape, or the benefits of cutting taxes. Really. Anything. Anything at all to avoid tax hikes even on the treasonous few who hide their money offshore.

All one needs to do to see the difference between what Republicans are saying and Republicans are doing is look at the current session of Congress. The very first item on Senate Majority Leader Mitch McConnell’s to-do list was passing a bill authorizing the construction of the Keystone XL Pipeline. That project would indeed create thousands of seasonal jobs, but only about 40 permanent ones. It would have virtually no impact on the U.S. economy. Moreover, the public would get nothing in return, unless you count greater levels of global warming.

That’s not to mention other items being pushed which have nothing to do with serving the greater good. A short list: House Republicans have introduced legislation to restrict abortion (the melodramatically titled “fetal-pain bill”), to dismantle part of the Dodd-Frank financial reform law, and to starve to death the president’s modest executive action on illegal immigration.

Even if the Republicans really did believe, as Jeb Bush is trying to convince us, that addressing inequality is the right thing to do, don’t bet on any action. Doing the right thing had rarely been an incentive, because this is a party now committed to total warfare against Obama and the Democratic agenda. The only way the Republicans will take action on inequality is if they are forced to, but even then, they’ll likely do everything short of raising taxes on the very, very rich.

That’s why we should keep our eyes on the minimum wage and paid sick leave. House Speaker John Boehner has said he’d rather kill himself than raise the minimum wage. Conservatives are poised to attack Republicans entertaining mandated sick days. But in terms of inequality, these are the easiest ways to say you’ve done something without raising taxes on the very, very rich.

So yes, inequality is emerging as a major issue in the 2016 presidential race, and Jeb Bush, Ted Cruz and others are going to try hard to convince us that the Republican Party cares, really cares, about the plight of the poor and an ever-shrinking middle class. But remember the last time a major candidate talked about such “compassionate conservatism.” By the end of his second term, the greatest beneficiaries of that compassion were the very, very wealthy.

 

By: John Stoehr, Managing Editor of The Washington Spectator; The National Memo, February 6, 2015

February 9, 2015 Posted by | Economic Inequality, Poverty, Republicans | , , , , , , , , | Leave a comment

“Rand Paul’s Prevarication Problem”: Afflicting The Afflicted & Comforting The Comfortable

Last week I called Sen. Rand Paul the most interesting man in Republican politics, and I still think that’s true. I also expressed some anxiety about the threat he could pose to the Democratic presidential nominee in 2016. That’s subsiding. In the last week Paul’s been caught in some big fibs, degrading struggling workers while defending the Koch brothers. That’s an interesting guide to his values.

Like all the GOP contenders, Paul is now talking piously about the problem of poverty, which modern Republicans have discovered because Barack Obama hasn’t made it go away. You can almost hear the briefing from a Frank Luntz type: “He’s the first black president, and he hasn’t ended poverty! Not even black poverty!” It also lets them slyly play on the notion of Obama as a privileged, uppity Ivy Leaguer – a “snob,” in Rick Santorum’s parlance — who doesn’t care about the poor or working class.

Whatever you say, Mitt Romney.

I still give Rand Paul some credit for identifying the criminal justice system as a source of black disadvantage. And if he ever figures out something meaningful to do about it, I promise to revise my thinking about him as mostly an opportunist. But when it comes to policies that might ease either poverty or the suffering of the working and middle classes, Paul learned at his father’s knee that government is the bad guy – and that slackers and moochers are playing the system and exploiting the rest of us.

That’s why he shamefully claimed that most recipients of Social Security Disability Insurance are faking it. “Over half of the people on disability are either anxious or their back hurts,” he told New Hampshire voters. The Washington Post fact checker showed the “back pain” disability category he cited included everything from muscle strain to amputations, while the “anxiety” number included conditions like bipolar disorder and schizophrenia. He got three Pinocchios for that one.

A few days later, asked whether he supports a time-honored GOP alternative to welfare, the Earned Income Tax credit for the working poor, he insisted the program is fraud-ridden – which it is not. Speaking to the Koch Brothers’ Freedom Network Chamber of Commerce event Sunday, Paul claimed the EITC has a “fraud rate” of 25 percent that costs taxpayers “$20 billion to $30 billion a year.” He cited a report from the Government Accountability Office, but Factcheck.org found “that’s not what the report said.”

The program did have an “improper payment rate” of 24 percent, but that includes worker filing errors and IRS paperwork problems that are largely attributable to the complexity of the tax law itself. Such payments cost $14.5 billion, less than half of Paul’s high end estimate.

Of course those slackers and moochers stand in sharp contrast with those hardworking and honest Americans, Charles and David Koch (who just revealed they’ll spend $900 million on the 2016 races). Paul took up their cause a couple of days later on Fox Business Network, defending them from “liberal haters” and claiming their advocacy “has nothing to do with government.” Paul went on:

I defy any of the liberal haters that are out there to find one instance when they have ever asked for a subsidy or a special government break. I have never heard of any and what they’re wanting is to be left alone, like most businesses in our country.

The folks at American Bridge took up the challenge, and found dozens of ways the Kochs have “asked for a subsidy or a special government break.” Last year in particular Koch Industries ramped up its lobbying efforts, according to OpenSecrets.org, spending $4 million in the third quarter of 2014 alone, largely on issues of “the environment, oil and financial policy.” An energy and environment trade publication found “that amount of lobbying money makes Koch Industries one of Washington, D.C.’s biggest influence spenders so far this year, outranking energy competitors such as Exxon Mobil Corp.”

But it didn’t start in 2014. A 2011 report by the Center for Public Integrity found that Koch Industries “spends tens of millions of dollars to influence every facet of government that could affect its global empire,” working through trade organizations whose names – the National Environmental Development Association, for instance — obscure their goals. They’ve lobbied heavily against carbon control and the use of lower-carbon fuels, and against federal regulation of toxic chemicals. They also pushed unsuccessfully to protect the expiring Bush tax cuts.

It’s good to know that Paul will trounce sick and struggling working people and come to the aid of gazillionaires. That doesn’t make him “the most interesting man in politics;” it makes him a standard issue Republican.  Ralph Nader has told the left it should support Paul in 2016 because of his anti-war rumbling (though lately he’s criticized his wobbling on the issue), but anyone who takes Nader’s advice after 2000 probably isn’t serious about issues of war or justice anyway.

 

By: Joan Walsh, Editor at Large, Salon, January 29, 2015

January 29, 2015 Posted by | Poverty, Rand Paul, Republicans | , , , , , , | Leave a comment

“A Dangerous Direction”: Corporate Tax Break Scheme Is Gaining A Momentum We Must Stop

There is no real argument over whether the nation needs to do more to improve its infrastructure – its transportation, water, power and information networks. But there is an argument over how best to pay for it all – and that argument is increasingly turning in a dangerous direction.

Financially stressed working-class households who are at best treading water, if not actually sinking, in today’s economy aren’t eager to dig deeper into their own pockets to foot the bill. That’s even more true of the plutocrat class, which has an army of lobbyists at the ready to shut down any suggestion that those who arguably would benefit the most from such things as better roads and public transportation should shoulder the larger share of the load.

Politicians of both parties in Washington are therefore increasingly relying on one of the schemes in the voodoo economics toolbox: give corporations hoarding money overseas to avoid taxation a form of tax holiday in exchange for increased corporate funding for infrastructure.

The Bond Buyer financial news site reports that Sen. Rand Paul (R-TX) and Sen. Barbara Boxer (D-CA) are close to agreeing on a plan that would give multinationals a deep tax reduction on money they currently have stashed overseas if they bring the money back into the United States, also known as repatriation. Money collected would be deposited into the Highway Trust Fund, which is dedicated to paying for federal transportation projects.

Paul’s promoting of this idea is not new; he had a bill last year that would have permanently cut the tax rate on profits corporations hold overseas, with the funds going into an emergency fund for what it considered high-priority highway projects. But his collaboration with Boxer is likely to give the idea more political momentum.

Meanwhile, the chairman of the House Transportation and Infrastructure Committee, Rep. Bill Shuster (R-PA), told the U.S. Conference of Mayors last week that raising the gasoline tax to pay for transportation improvements – the most logical near-term solution since that tax hasn’t been raised in almost 22 years – is off the table in his committee. Instead, “the number one source that’s being talked about is this repatriation of funds,” he said, according to The Hill newspaper.

Rep. John Delaney (D-MD) is a leading proponent of a repatriation-for-transportation-funding scheme. In December he filed a bill expected to be reintroduced this year that would allow multinational corporations to bring back overseas profits at a tax rate of 8.75 percent instead of the current statutory tax rate of 35 percent. The revenue collected would be placed in the Highway Trust Fund and in a $50 billion America Infrastructure Fund, which would be used to leverage up to $750 billion worth of state, local and private funding for infrastructure projects around the country.

With the White House giving its tacit blessing to such schemes while refusing to support proposals to raise funding in other ways, tapping profits now held overseas at a deeply discounted tax rate is becoming the default position for how to begin covering a more-than-$1 trillion infrastructure investment deficit.

But is rewarding tax avoidance really the way to fund our public infrastructure needs?

The biggest problem with the Delaney proposal, and the similar proposal from Paul, is that “it would allow companies such as Apple and Microsoft, which have parked hundreds of billions of dollars of US profits in offshore tax havens, to pay a US tax rate of no more than of 8.75 percent, instead of the more than 30 percent tax they should pay on these profits,” says an analysis by Citizens for Tax Justice.

These profits – more than $2 trillion – are usually laundered through foreign subsidiaries in low-tax or no-tax countries in ways designed to avoid US taxes. That can be done as simply as having that online purchase you think you are making through an American-based company actually handled by a Swiss or Irish subsidiary, or by transferring a patent to an overseas subsidiary so that revenues on licensing that patent flow through the subsidiary. Sometimes, the money isn’t even actually overseas, but is deposited in US banks and is being used for domestic purposes. In any event, regardless of where the money ends up being deposited, it is not “trapped overseas,” as corporate lobbyists and their supporters in Congress often say; it’s just that they don’t want to pay a higher tax on that money.

The last time corporations got a repatriation tax holiday in exchange for the promise to use the profits in job-creating investments, in 2004, corporations instead ended up using the money brought back into the country to boost shareholder dividends and buy back stock (which drives up stock prices and, often, the compensation of CEOs). There is little reason to believe that the same thing wouldn’t happen again in 2015.

Setting a bargain-basement tax rate for profits booked through foreign subsidiaries serves as nothing more than an incentive for corporations to escalate the schemes – or a wedge to convince lawmakers that if an ultra-low corporate tax rate is good for profits repatriated from overseas, perhaps all corporate profits should be taxed at that rate.

In any event, it is the rest of us who end up being the losers. When multinational corporations don’t pay their fair share in taxes, the rest of us have to make up the difference – or suffer the inability to pay for the things that we need, like good roads and public transportation. That includes businesses who don’t have the capacity to set up the fancy tax dodges that their competitors use.

What we need is honest tax reform that makes corporations and the wealthy pay their fair share, closing the door for good on the loopholes and schemes they use to avoid paying taxes. We also need an honest and equitable way to pay for the infrastructure improvements we need. Both are possible, but not without considerable heat from an aroused public. Congress will have to decide this year how it will pay for a multiyear transportation bill. We can’t let the default option be coins from the table of corporate tax avoidance.

 

By: Isaiah J. Poole, Campaign For America’s Future, January 26, 2015

January 28, 2015 Posted by | Corporate Welfare, Multinational Corporations, Tax Loopholes | , , , , , , , , | Leave a comment

“Populism Is As Much A Problem As Plutocracy”: Mike Huckabee Is Not The Cure For What Ails The GOP

It’s become conventional wisdom among a certain segment of political pundits and conservative intellectuals — especially the so-called Reformicons — that the GOP has a plutocracy problem. Too many high-end tax cuts, too much indifference to the struggles of working-class voters, too many denunciations of the mooching ways of the American people — all of it adds up to a party that looks out of touch and overly beholden to the concerns of wealthy donors at the expense of everyone else.

The solution, supposedly, is populism — Republican candidates who can speak the language and understand the problems of ordinary voters.

Until recently, no one fixing to run for the White House in 2016 looked likely to do so as a populist. But that may have changed over this past weekend, when Mike Huckabee quit his television show on Fox News as a possible first step toward throwing his hat into the ring.

You’d think that the prospect of a Huckabee candidacy would cause the party’s populists to swoon. After all, Huckabee is a folksy Southern evangelical Christian, a bass-playing two-term governor, and an ordained Southern Baptist minister who won eight states (including Iowa) the last time he ran for president in 2008. And that was before he raised his profile with a nationally syndicated radio program and a TV show on the right’s premier cable channel.

And yet the Huckabee news this past Saturday produced the opposite of excitement. Mainstream conservatives mocked the prospect of his candidacy on Twitter, while reformers who’ve been pining for a populist have been muted.

The question is why.

And the answer, I think, is that on some level smart Republicans understand that populism is as much a problem for the party as plutocracy.

Yes, Mitt Romney’s tendency to toady to superrich donors and entrepreneurs — coming on the heels of George W. Bush’s high-end tax cuts — certainly saddled the GOP with a plutocratic image problem. But what about its tendency to flatter culturally alienated middle-class Americans by dismissing evolutionary biology, by mocking professors and “experts” of all kinds, and by pandering to the prejudices of a certain kind of ill-informed, reactionary religious believer?

The fact is that the Republican Party has long since become a bizarre only-in-America hybrid of fat cats and rednecks.

Deep down Republicans know that while a Huckabee candidacy might help address the image problems associated with the first half of that equation, he’d make those wrapped up with the second half far worse.

Consider some of Huckabee’s public statements in recent years:

Praising the work of a hack historian lionized by Know Nothing evangelicals, Huckabee declared in 2011, “I almost wish that…all Americans would be forced, at gunpoint, to listen to every David Barton message.” (Thank goodness for that “almost”!)

Responding to the Sandy Hook school massacre of 2012, Huckabee suggested that schools had become “place[s] of carnage” because “we have systematically removed God from our schools.”

Last winter, Huckabee stated in a speech (not unscripted remarks) that “if the Democrats want to insult the women of America by making them believe that they are helpless without Uncle Sugar coming in and providing for them a prescription each month for birth control because they cannot control their libido or their reproductive system without the help of the government, then so be it.”

Huckabee’s latest book, slated to appear on Jan. 20, is titled God, Guns, Grits, and Gravy.

That, my friends, is what right-wing American populism sounds like in the second decade of the 21st century. It is the irritable mental gesture of a provincial (rural or exurban) white America that can’t tell the difference between cultural signaling and a cogent argument. And it treats the details of public policy as an afterthought or a matter of indifference.

Would-be Republican reformers can look for a better vehicle than Mike Huckabee for the populism they favor, but they’re unlikely to find one. Huckabee — or someone like him — is the only game in town.

The authentic reform of the GOP — its refashioning into a genuinely national party — requires more than the shedding of its plutocratic image. It also requires that the party’s leading lights give up on their impossible populist dreams.

 

By: Damon Linker, The Week, January 6, 2014

January 7, 2015 Posted by | GOP, Mike Huckabee, Populism | , , , , , , | Leave a comment