Posts Tagged ‘ Taxes ’

The Heart of the Republican Dilemma

Thursday, April 15th, 2010
Ed Kilgore



Ed Kilgore is a PPI senior fellow, as well as managing editor of The Democratic Strategist, an online forum.

by Ed Kilgore

Ah, another Tax Day, another Tea Party poll! This one, from CBS/New York Times, is probably the most extensive we’ve seen. But the findings are only surprising to people who haven’t been paying close attention to the Tea Party Movement.

Tea Partiers are, in almost every significant respect, overwhelmingly conservative Republicans. Two-thirds say they always or usually vote Republican. Two-thirds are regular Fox viewers. 57 percent have a favorable view of George W. Bush, and tea partiers, unlike their fellow-citizens, almost entirely absolve the Bush administration from responsibility for either the economic situation or current budget deficits. Over 90 percent of them disapprove of Barack Obama’s job performance in every area they were asked about, and in another sharp difference from everyone else, 84 percent disapprove of him personally. Ninety-two percent think Obama’s moving the country “in the direction of socialism.” Nearly a third think he was born in another country. Three-fourths think government aid to poor people keeps them poor instead of helping them. Over half think too much has been made of the problems facing black people. Well over half think the Obama administration has favored the poor over the rich and the middle class (only 15 percent of Americans generally feel that way).

Interestingly, tea partiers are less likely than the public as a whole to think we need a third political party. That shouldn’t be surprising in a cohort that basically thinks the Bush administration was hunky-dory, but you’d never guess it from all the talk about the “threat” of a Tea Party-based third party.

So these are basically older (32 percent are retired) white conservative Republicans whose main goal, they overwhelmingly say, is to “reduce government.” But two-thirds think Social Security and Medicare are a good bargain for the country. And they certainly won’t support higher taxes.

Here’s a revealing glimpse into the older-white-conservative psychology from the Times write-up of the poll:

[N]early three-quarters of those who favor smaller government said they would prefer it even if it meant spending on domestic programs would be cut.But in follow-up interviews, Tea Party supporters said they did not want to cut Medicare or Social Security — the biggest domestic programs, suggesting instead a focus on “waste.”

Some defended being on Social Security while fighting big government by saying that since they had paid into the system, they deserved the benefits.

Others could not explain the contradiction.

“That’s a conundrum, isn’t it?” asked Jodine White, 62, of Rocklin, Calif. “I don’t know what to say. Maybe I don’t want smaller government. I guess I want smaller government and my Social Security.” She added, “I didn’t look at it from the perspective of losing things I need. I think I’ve changed my mind.”

And that’s the conundrum facing the Republican Party going forward. Having created a fiscal time bomb during the Bush administration, they are now born-again deficit hawks, and moreover, profess to think today’s federal government represents a socialist tyranny. But they are even more adamantly opposed to higher taxes, and their base doesn’t want them to touch “their” Social Security and Medicare, which they figure they’ve earned.

Barring a major retraction of America’s active role in the world, which would enable big reductions in defense spending (and we know few conservative Republicans favor that), the only thing left to do is the sort of wholesale elimination of federal functions last attempted by Republicans in 1995, which failed miserably, or an all-out attack on means-tested programs benefitting the poor. By all evidence, this last approach may please many Tea Partiers, but justice and efficacy aside, there is no approach more guaranteed to ensure that the Republican Party’s base gets even older and whiter than it already is.

At some point, the famous “anger” of the Tea Partiers will have to be propitiated by GOP leaders, but there’s no obvious way out of the dilemma Republicans have created for themselves.

This item is cross-posted at The Democratic Strategist.

Photo credit: http://www.flickr.com/photos/ragesoss/ / CC BY-SA 2.0

Democracy as a Free Lunch for Islamofascists

Monday, April 12th, 2010
Ed Kilgore



Ed Kilgore is a PPI senior fellow, as well as managing editor of The Democratic Strategist, an online forum.

by Ed Kilgore

As I am sure you have noticed, one of the big conservative talking points in recent months has been that the Obama administration and congressional Democrats despise democracy because they have (sic!) used “revolutionary methods” to (sic!) “cram down” health reform against the manifest wishes of the American people, who wisely oppose socialism. Fortunately, Republicans are determined to help Americans “take back their country” in November.

But at the very same time, bless them, conservatives can’t help but express some long-held negative feelings about this small-d-democratic claptrap. One sign is their great hostility to any efforts to encourage higher levels of voting (though this is typically framed as opposition to “voter fraud,” evidence for which is completely lacking). Another is the Tea Party theory that there are absolute limits on the size and cost of government that either are or should be enshrined in the Constitution or enforced by the states, regardless of the results of national elections. And still another involves periodic bursts of outrage over people who don’t pay income taxes being allowed to vote.

This last meme got a boost very recently when estimates emerged that 47 percent of U.S. households won’t have any 2009 federal income tax liability.

“We have 50 percent of people who are getting something for nothing,” sneered Curtis Dubay, senior tax policy analyst at the Heritage Foundation.

Sean Hannity chipped in with alarums about the implications of “half of Americans not paying taxes.”

One conservative site took the AP story on this data and added this helpful subtitle: “Tax Day Is Just Christmas For Many.”

Another had an even more suggestive title: “Let’s Make You Spend More on Me,” along with a chart showing upward federal spending trends. This interpretation is clearly just a hop, skip and jump from the “culture of dependency” rhetoric most famously expressed by South Carolina Lt. Gov. Andre Bauer in his speech comparing subsidized school lunch beneficiaries with stray animals who shouldn’t be encouraged with free food. And in retrospect, Bauer showed some unorthodox brilliance in galvanizing conservative anger about socialist “free lunch” redistribution toward kids who are literally receiving free lunches.

Now the various conservative “analysts” of the free-lunch, free-rider phenomenon rarely go to the trouble of acknowledging that most of that lucky 47 percent not owing federal income taxes (which represent less than half of federal revenues) pay high and very regressive federal payroll taxes, not to mention even more regressive state and local sales and property taxes. Nor do they note that most non-federal-income-tax-paying households are either retirees living on savings and retirement benefits or working poor families with kids (the beneficiaries of those child tax credits that conservatives are always promoting as “pro-family” policies). And I’ve yet to see even one concede that the 47 percent figure is a temporary spike attributable to the recession and to short-term tax credits that will expire with the economic stimulus program.

While the reverse-class-warfare subtext of some of the conservative angst about alleged tax-and-benefit freeloaders is pretty clear, there are those who would link it to an even more lurid, culture-war theme. Check out this remarkable weekend post from National Review’s Mark Steyn, who compared our system of “representation without taxation to” — no, I’m not making this up! — Muslim oppression of non-Muslims. Gaze in awe:

United States income tax is becoming the 21st-century equivalent of the “jizya” — the punitive tax levied by Muslim states on their non-Muslim citizens: In return for funding the Islamic imperium, the infidels were permitted to carry on practicing their faith. Likewise, under the American jizya, in return for funding Big Government, the non-believers are permitted to carry on practicing their faith in capitalism, small business, economic activity, and the other primitive belief systems to which they cling so touchingly.

So there you have it: socialism and Islamofascism nicely bound up in the policies of that madrassa-attending elitist, Barack Obama.

However you slice it, the conservative commitment to democracy sometimes seems limited to those “real Americans” who think right and vote right. At a minimum, progressives should not let them combine such attitudes with pious invocations of the Popular Will.

This item is cross-posted at The Democratic Strategist.

Photo credit: http://www.flickr.com/photos/katerkate/

Plan B for Climate Policy?: A PPI Series

Tuesday, March 30th, 2010
Danny Morris



Danny Morris is a research associate for the Center for Climate and Electricity Policy at Resources for the Future. The views expressed here are his own.

by Danny Morris

PPI has long been a proponent of an economy-wide cap-and-trade system to confront the problem of climate change. But as the fortunes of cap-and-trade legislation in the Senate fade, we need to begin looking at other options before Congress. This post, on the Cantwell-Collins “cap-and-dividend” bill, is the first in a series of analyses of various alternatives to cap-and-trade.

You may not have noticed lately, but there are other major legislative initiatives, including climate and energy, on the Senate’s docket. One climate action bill that has received a lot of attention is the bill sponsored by Sens. Maria Cantwell (D-WA) and Susan Collins (R-ME). When the bill, officially called the Carbon Limits and Energy for America’s Renewal (CLEAR) Act, was first introduced in December, it caught the eye of some in the enviroblog world, but didn’t make much of an immediate splash in the Senate. Between the long build-up of the Kerry-Lieberman-Graham multi-partisan grab bag and the poorly understood Copenhagen outcome, however, it filled a vacuum with a poorly appreciated concept at the time: offsetting costs of climate legislation to consumers by cutting them a check.

The Basics

Also known as “cap-and-dividend,” the Cantwell-Collins bill is pretty simple: starting in 2012, it would mandate monthly auctions of pollution permits, called carbon shares, to the first seller (producer or importer) of fossil fuel carbon into the economy. The bill sets a floor price (shares can’t be sold for less) of $7 and a ceiling price (shares can’t be sold more) of $21 in the first auction in 2012, with the cap lowering — leading to rising prices — over time.

Most of the revenue from these auctions is distributed back to citizens in the form of a monthly check, while the rest is placed in a Clean Energy Refund Trust (CERT) fund established by the bill for use on a variety of different purposes: energy R&D, climate change adaptation, non-CO2 greenhouse gas reductions, international forestry and agriculture offsets, carbon capture and storage projects. First sellers cannot trade carbon shares and carbon derivatives are prohibited. In addition, the legislation has economy-wide emissions reduction goals of 20 percent below 2005 levels in 2020, 42 percent in 2030, and 83 percent in 2050.

The Good

Advocates of Cantwell-Collins praise it for being simple and transparent. As has been noted by others, it is a mere 40 pages, certainly an easier read than Waxman-Markey, the behemoth, 1,400-page cap-and-trade bill passed by the House last June. It regulates fossil fuel-related CO2 as far “upstream” in the economic supply chain as possible, meaning that whoever produces or imports a fossil fuel is on the hook for the CO2 content. Under Cantwell-Collins, coal mines and oil producers are responsible for paying for carbon, which means that only about 3,000 facilities need to be regulated. This upstream approach is administratively more streamlined, affecting far fewer parties than Waxman-Markey, which regulates electricity producers, natural gas distributors and manufacturers (over 75,000 regulated facilities).

The CLEAR Act also rejects the convoluted system of free and auctioned allocations in Waxman-Markey for a straight-up auction of all carbon shares. All regulated parties must participate in open monthly auctions, the revenue from which is split 75-25 percent: 75 percent is redistributed per capita to every American citizen and 25 percent is placed in the CERT. Whether you agree with the approach or not, offering to cut a monthly check for every U.S. citizen is not a bad way to gain some political support. Also, from the perspective of regulated firms, the use of price floors and ceilings, also known as a price collar, would reduce future price uncertainty and help them better predict investment needs.

Finally, the bill is co-sponsored by a Republican and a Democrat. That bipartisan provenance could certainly help its chances for passage.

The Bad

So with a bill that’s easy to read, easy to monitor and easy on the wallet, is there anyone who won’t like it? Well, anyone who favors hard targets for emissions reductions and anyone who believes in markets, for two. First, while the bill establishes economy-wide reduction goals as strong as Waxman-Markey, the auction system alone will not reach them. National emissions are capped at 2012 (note that it only caps CO2 emissions, unlike Waxman-Markey, which covered other greenhouse gases as well), and the cap doesn’t tighten until 2015, at which point it decreases by 0.25 percent that year, then by an additional 0.25 percent every corresponding year (so in 2016, the cap reduces by 0.5 percent, in 2017, 0.75 percent, etc).

This slow lowering of the cap will result in only five percent reductions below 2012 emissions by 2020, well short of the 20 percent reductions by 2020 goal. Even at that, the cap is not rock solid due to the price collar, which functions as a sort of safety valve. That is, if the auction price goes higher than the established ceiling price, then that essentially releases extra carbon shares for firms to bid on until the price falls back below the ceiling.

That means the remaining reductions to be met in 2020 will have to come from technology advances, land use offsets in forestry and agriculture, and reductions of non-CO2 gases, all of which are paid for by the CERT (which will be administered by the Department of Treasury). If we assume an initial carbon price of $15 in 2012 (a middle-range price, based on analyses done by the EPA and EIA), and the projected cap of roughly 7.2 billion carbon shares, then the CERT will get about $27 billion in the first year of the program.

That’s $27 billion to be split among all the uses listed above to help reduce emissions, as well as adaptation projects, energy efficiency efforts, and support for trade-sensitive industries and low-income families. The problem with a bill that’s only 40 pages is that it doesn’t have a lot of room for details — indeed, the CLEAR Act provides no guidance on how to prioritize uses of CERT funds. Although CERT funds will increase as the price of carbon shares rise, it will likely not even be close to enough to compensate for the majority of necessary carbon reductions.

A carbon market could mobilize private capital to help address some of these issues efficiently, instead of leaving all the choices and funding responsibility to the federal government. While it’s understandable that the public and politicians might still distrust markets in the wake of the recent financial collapse, the fact is that when it comes to finding inefficiencies and catalyzing innovation, nothing works better. But the “market” in Cantwell-Collins is simply an auction system. Unlike in Waxman-Markey, regulated firms can’t trade their permits, and carbon derivatives are strictly prohibited. These restrictions are going to severely limit the efficacy of the program to find the cheapest emissions reductions.

Also, there is a huge amount of risk in carbon markets (both in terms of accurate compliance and extreme events), so while they should be tightly regulated, derivatives are a necessary component because they allow firms to hedge against the risk of non-compliance or shifting standards. You will be hard-pressed to find any industry player who will advocate for a market without any trading, and there will need to be at least some industry support for any viable future climate legislation. Moreover, the monthly auction system may generate more carbon share price volatility than a continuous market, making it even more unattractive to firms.

The Upshot

Cantwell-Collins injects some great ideas into the climate policy debate that had not been prominently discussed before. If a policymaker wants to reduce the burden of increased energy costs on consumers, a direct rebate is an efficient and effective way to do it. The bill overall, however, is a somewhat naïve approach that does not fully appreciate the ability of markets to generate efficient emissions reductions and does not limit carbon emissions effectively. Its merits (simplified approach, upstream regulation, price collar) are outweighed by its limitations (extremely slow cap reduction, heavy reliance on CERT-funded reduction programs, draconian market restrictions). The CLEAR Act will continue to play a role in the climate debate of the Hill, but in its current form, it is unlikely to be the last bill standing.

Photo credit: http://www.flickr.com/photos/haglundc/ / CC BY-NC 2.0

Governor Moonbeam Versus eMeg

Monday, March 29th, 2010
Ed Kilgore



Ed Kilgore is a PPI senior fellow, as well as managing editor of The Democratic Strategist, an online forum.

by Ed Kilgore

It’s obvious that the Golden State isn’t golden anymore. As a new transplant here, the first state political event I watched up close was a May 2009 special election, featuring six ballot initiatives designed to avert a titanic budget crisis. California’s voters responded with what can best be described as snarling apathy. Turnout was 20 percent, which beat the previous California record for low turnout in a statewide election. The five initiatives that dealt with spending and revenue — which needed to pass in order to implement a major fiscal compromise — all went down, hard. (Most of them lost by two-to-one margins; a sixth initiative, denying legislators pay raises when the budget’s not balanced, passed.) Californians weren’t just experiencing a momentary fit of pique, either: In 2005, a similar package of eight budget deal-related ballot initiatives met the same fate.

As of March 21, the approval rating for Republican Governor Arnold Schwarzenegger stood at 23 percent, which was where his Democratic predecessor, Gray Davis, was when he was recalled and booted out of office in 2003. But that level of support looks robust compared to that of the state legislature (controlled, if that’s not too strong a word, by Democrats), which stands at nine percent, not far from statistical zero.

California’s bad case of political self-loathing goes beyond a terrible economy, the state’s chronic monstrous state budget deficits, and the endless gridlock over virtually all major decisions in Sacramento. On the structural level, California’s permissive ballot initiative system has inserted voters — or, to be cynical about it, the special interests backing initiatives — into matters normally left to governors and legislators, resulting in constitutional limits on property taxes; excessive reliance on recession-sensitive income taxes; a crippling two-thirds vote requirement for legislative enactment of a state budget or for increasing taxes at any level of government; and a variety of spending mandates. Polls consistently show that a majority of citizens oppose tax increases and most spending cuts (they do favor cutting spending on prisons, which are operating under court rules and stuffed with inmates who have run afoul of the state’s many mandatory sentencing laws, some imposed by initiative). “Waste” is where Californians seem to want lawmakers to look for the massive savings necessary to balance the budget. Too bad California already ranks near the bottom among states in per capita state employees and infrastructure investment, and below average in per-pupil spending on education.

The obvious question is why anyone would want to be the next governor of California. But three viable candidates — two Republicans and one Democrat — are defying logic by offering themselves for this post. One Republican, state insurance commissioner and former tech executive Steve Poizner, is running on a systematic right-wing platform of massive spending cuts, new personal and business tax cuts, and, for dessert, another effort to ban access to public benefits for undocumented workers and their families. The second GOP candidate, former eBay CEO Meg Whitman, is running far ahead of Poizner, floating her campaign on an extraordinary sea of early money. Three months before the June primary, and eight months before the general election, Whitman (or eMeg, as local political journalists often call her) has already spent $46 million, mostly from personal funds on her campaign, and has threatened to spend up to $150 million if necessary. She has launched an astoundingly early series of saturation media ads, becoming ubiquitous on the California airwaves, as recently explained by David Crane of the influential political blog Calbuzz:

The campaign’s Gross Rating Point report, measuring total delivery of the current week’s broadcast ad schedule in 11 markets in California, shows that eMeg’s buy is comparable to what a fully-loaded campaign might ordinarily deliver in the closing weeks of a heated race — not three months before a primary that she’s prohibitively leading.“These are some big f****n’ numbers,” said Bill Carrick, the veteran Democratic media consultant after reviewing the report. “She’s buying the whole shebang.”

Whitman’s ads mainly convey, with numbing repetition, her claim to offer a fresh start for the state, delivered by a rock-star business executive committed to cuts in spending, tax cuts, and education reform. But she recently launched another batch aimed at primary opponent Poizner — whom she leads in the most recent Field Poll by 49 points — depicting the hyper-conservative as, believe it or not, a liberal who thinks just like Nancy Pelosi. (Poizner is reportedly planning to fire back using $19 million of his own Silicon Valley fortune, which may force Whitman to tack in a conservative direction on issues that she’d just as soon avoid, such as immigration.)

These assaults have raised some old concerns about her reputation in corporate circles for being ruthless in the pursuit of her goals, and a bit deranged — exhibiting an “evil Meg” alongside the “good Meg” of her press clippings — if denied her wishes. She’s also bought herself grief by refusing, until very recently, to answer press questions or elaborate beyond the happy talk of her biographical ads about her positions on various issues. All in all, she’s in danger of earning the reputation of being something of a robo-pol like her political mentor, Mitt Romney.

Indeed, Whitman’s overall strategy appears to be to clear the primary field by bludgeoning Poizner out of the picture with attack ads, and then to run as a can-do moderate conservative who’s worth a gamble for the relatively few voters who bother to show up at the polls. And she is reportedly spending hundreds of thousands of dollars building a library of negative information to use against her general election opponent, a guy named Jerry Brown.

That’s right, Edmund Gerald “Jerry” Brown Jr., who is, on paper, the least likely person imaginable to become the frontrunner for governor of a state that is so passionately disillusioned with politicians. The son of an old-style liberal Democratic governor who served two terms before being bounced from office by Ronald Reagan, Brown was first elected to statewide office 40 — yes, 40 — years ago. After a term as secretary of state, he was governor for eight years, and later state party chair, mayor of Oakland and, currently, attorney general of California. He also ran unsuccessfully, and somewhat fecklessly, for the U.S. Senate once and for president three times (coming second to Bill Clinton in 1992). Not many Californians can remember a time when Brown or his father wasn’t in office or pursuing office, and most can remember more than one occasion when Brown Jr. did something quirky, embarrassing or controversial. Indeed, Whitman may be wasting her money reminding them.

But that’s the funny thing about Jerry Brown’s candidacy. Instead of being the fattest target in America for a Republican opponent, Brown is even with or slightly trailing Whitman in recent polls, despite her massive unopposed spending on TV ads — and, given California’s Democratic registration advantage, he’s a good bet to win unless the effectiveness of Whitman’s spending significantly outstrips the likely backlash against it.

You see, Jerry Brown is a tough challenger because he is hard to confine to the standard political and ideological boxes. His long political career may be a handicap in some respects, but it has also helped him defy typecasting and create unusual coalitions. Long an ally of Democratic liberals — in the 1990s, he had a show on the lefty Pacifica radio network — Brown governed California as a fiscal hawk in the wake of the property tax-slashing Proposition 13 (which he had opposed) in 1978. Similarly, as mayor of Oakland from 1999 to 2007, he became known for a strong law-enforcement record, and for his championship of charter public schools, including one controversial military school. He can be broadly characterized as a social liberal and fiscal conservative, which is a good fit for his state. But his leitmotif as a politician has always been unpredictability and a knack for anticipating and sometimes embodying the zeitgeist.

What’s more, his unique form of personal charisma makes him freakishly appropriate for the contemporary madness of California politics. For instance, here’s a characteristic snippet from an interview that Brown conducted with the New York Times, just after he was elected attorney general in 2006:

Over the years, you have moved from being a fabled liberal to a centrist position.

I don’t know. I don’t use that spatial metaphor.

Then how would you describe yourself politically?

I’m very independent. There’s a great line from Friedrich Nietzsche: A thinking man can never be a party man.

Charming. Yet, despite his willingness to name-check Nietzsche, Jerry Brown prefers the idea that politicians should tamp down their own passions, in a way the philosopher might have abhorred. He seriously studied Zen Buddhism in the 1980s, underwent training for the Jesuit priesthood and worked with Mother Teresa in Calcutta. Not surprisingly, he conveys a certain aura of ironic detachment and self-control.

Indeed, over four decades of engagement in public life, Jerry Brown has developed a remarkable knack for displaying a sense of his own — and government’s — limits. He began his gubernatorial first term in 1975 with an off-the-cuff “address” that ran seven minutes; replaced the traditional inaugural ball with an informal dinner at a Chinese restaurant; traded in his gubernatorial limo for a 1974 Plymouth from the state car pool; rented a small apartment instead of living in the governor’s mansion; and reportedly slept on a mattress on the floor. (As governor, Brown was far more fiscally conservative than his predecessor, Ronald Reagan, who raised taxes and spending several times. His austerity, which created vast budget surpluses, prompted one Reagan aide to joke that the Gipper “thinks Jerry Brown has gone too far to the right.”) Appropriately, one of Brown’s publicly identified gurus was Small Is Beautiful author E.F. Schumacher, and he once described his governing style, using a strikingly Zen phrase, as “creative inaction.” That could be very handy if he gets the job he is running for, where limits have been placed on virtually everything a governor can do, and it also provides a strong contrast to Whitman, whose campaign screams hubris.

Short of having their own grossly rich and relentless attack dog in the race, Democrats are probably blessed to have Brown, who can be expected to shrug off Whitman’s certain assault on his record and land a few coolly delivered blows of his own. He’s already reminding voters that California hasn’t had a particularly good recent experience with “outsider” governors promising to come in and clean up Sacramento by sheer force of will. And, without a doubt, Whitman’s campaign will bring back bad memories of another California candidate who boasted of vast executive experience and spent money like water on unconscionable attack ads: Al Checchi, whose over-the-top 1998 campaign eventually elevated the most boring candidate in the field, Gray Davis, to the governorship.

Meanwhile, Brown will have the luxury of leaving the anti-Whitman dirty work to surrogates and supporters who are planning a half-million ad assault on the Republican. And it’s not exactly a bad time to run as something of an anti-corporate populist, as Brown is doing, talking up “the people who work for the people, the firefighters, the nurses, the hospital workers, the janitors.” I don’t have to spell out which billionaire CEO-politician might be caught in that rhetorical net.

And Brown’s other ace in the hole could well be the Latino vote. Dating back to his close association with pioneer farm-labor organizer Cesar Chavez — who backed Brown’s 1974 candidacy in hopes of finding a political solution to the United Farm Workers’ problems — Brown has longstanding ties to California’s Latino community. Even in polls showing Whitman in the lead, he is beating her badly among Latinos. If Poizner gains traction in the primary, she will be under heavy pressure to move closer to his harsh positions on denying state aid to undocumented workers. And it hasn’t escaped notice that one of Whitman’s closest advisors is former governor Pete Wilson, whose sponsorship of the anti-immigrant Proposition 187 back in 1994 decisively alienated Latino voters from the GOP and materially contributed to the state’s current Democratic majority.

It’s a long time until November. The Brown-Whitman tilt will have to share media attention and airtime with a Republican challenge to Sen. Barbara Boxer and, before that, with a close and entertaining Senate primary battle between Carly Fiorina and Tom Campbell. At the state GOP convention two weeks ago, Fiorina, like Whitman an “outsider” business executive, was the star of the show. Her quirky web ads going after Campbell (the “demon sheep” ad, already a cult classic) and Boxer (a new ad unveiled at the GOP gathering that showed the senator morphing into a hot-air balloon) are as imaginative and attention-grabbing as Whitman’s TV spots are shrill and heavy-handed. The high point of Meg’s appearance was a press conference where she finally answered press questions. Her leaden convention speech and an over-produced Mitt Romney endorsement provided a glimpse of how poorly her act could wear on Californians over the long haul.

And it’s not as though Jerry Brown is likely to present Whitman with an unmoving target. As protean as California itself and as wily as any other 40-year veteran of political wars, Brown nicely defined himself in an interview with Calbuzz just after officially announcing his candidacy: “Adaptation is the essence of evolution,” he explained. “And those who don’t adapt go extinct.”

Indeed, such adaptivity may be the only thing that can serve California’s needs right now. With the state no longer in its political golden age, the harsh reality of running — and governing — in a place with such baleful political realities will require a truly kaleidescopic ability to make the best of a hostile environment. And, in a contest with a Republican who seems determined to prove that she and her checkbook can win it her way or no way, I wouldn’t place any bets against Jerry Brown becoming California’s right-man-in-the-right-place, one last time.

This item is cross-posted at The Democratic Strategist.

Bipartisanship Is Dead – Long Live Bipartisanship!

Tuesday, March 23rd, 2010
Mike Derham



Mike Derham is chair of PPI's Innovative Economy Project.

by Mike Derham

Republicans have been gnashing their teeth and rending their garments, lamenting the landmark passage of health care reform late Sunday night. The Tea Party wing of the party has been vowing that this isn’t the end of the fight over healthcare — it’s just the beginning.

While House Minority Leader John Boehner’s response to the health care bill (not least its tax hike on tanning salons) has been a “hell no,” the more pragmatic thinkers on the other side of the aisle have been bemoaning the GOP’s Waterloo. David “Axis of Evil” Frum, who coined the “Waterloo” phrase, has laid out some constructive responses Republicans can take up on health care — and he’s making more sense than most in the party of Lincoln.

Frum outlines four ideas that Republicans should get behind:

1) One of the worst things about the Democrats’ plan is the method of financing: an increase in tax on high-income earners. At first that tax bites only a very small number, but the new taxes will surely be applied to larger and larger portions of the American population over time.

Republicans champion lower taxes and faster economic growth. We need to start thinking now about how to get rid of these new taxes on work, saving and investment — if necessary by finding other sources of revenue, including carbon taxes.

2) We should quit defending employment-based health care. The leading Republican spokesman in the House on these issues, Rep. Paul Ryan, repeatedly complained during floor debate that the Obama plan would “dump” people out of employer-provided care into the exchanges. He said that as if it were a bad thing.

Yet free-market economists from Milton Friedman onward have identified employer-provided care as the original sin of American health care. Employers choose different policies for employees than those employees would choose for themselves. The cost is concealed.

Wages are depressed without employees understanding why. The day when every employee in America gets his or her insurance through an exchange will be a good day for market economics. It’s true that the exchanges are subsidized. So is employer-provided care, to the tune of almost $200 billion a year.

3) We should call for reducing regulation of the policies sold inside the health care exchanges. The Democrats’ plans require every policy sold within the exchanges to meet certain strict conditions.

American workers will lose the option of buying more basic but cheaper plans. It will be as if the only cable packages available were those that include all the premium channels. No bargains in that case. Republicans should press for more scope for insurers to cut prices if they think they can offer an attractive product that way.

4) The Democratic plan requires businesses with payrolls more than $500,000 to buy health insurance for their workers or face fines of $2,000 per worker. Could there be a worse time to heap this new mandate on smaller employers? Health insurance comes out of employee wages, plain and simple. Employers who do not offer health insurance must compete for labor against those who do — and presumably pay equivalent wages for equivalent work.

The first point is red-meat, tax-cutting rhetoric for the Republican base – not much to see there.

The third point is very broad, but middle ground could be easily reached. Everyone is against “over-regulation” but everyone is for “consumer protection.” Finding the middle ground to give patients the best set of alternatives should be a key goal as the regulations of health-exchanges are spelled out.

The fourth and final point, while a good-faith effort to protect engines of job creation from additional burden, misrepresents the small business coverage of the health care reform bill. The small business provisions of the bill exempt companies with less than 50 employees. The only way Frum’s payroll figure would make sense is if each employee was being paid $10,000 a year. At that point they’re eligible for health care subsidies of almost $50,000 for a family of four.

But it’s Frum’s second point that progressives should consider. Employer-based health care has been a long-term roadblock to innovation and job creation. (The whole story can be heard here.) Moving from a system where insurers try to sell packages to employer HR departments to one where patients can make choices themselves on the exchanges envisioned in Sunday’s historic bill can save up to 40 percent of what we’re spending on health care. But many of us getting health care through our employers don’t have the option to look to the exchanges. (The Washington Post has a handy tool you can use to see what your health care options will be come 2014.)

We should take sensible Republicans like Frum at their word and look to give more people the opportunity to embrace the benefits of choice that will be brought around by health exchanges. Maybe by getting behind an idea like the Wyden proposal we can get Republicans like Frum to embrace the president’s vision of working in a bipartisan manner.

Photo credit: http://www.flickr.com/photos/urbanmixer/ / CC BY-NC 2.0

The Wait Is Over

Thursday, March 18th, 2010
Elbert Ventura



Elbert Ventura is the managing editor of the Progressive Policy Institute.

by Elbert Ventura

It took longer than expected, but the wait was worth it. The CBO score for the Senate health care reform bill and amendments that the House will vote on this weekend is now out (well, in leaked form anyway) and the numbers, at first glance, look good for reform’s prospects.

According to House Majority Leader Steny Hoyer, the legislation got slapped with a price tag of $940 billion over the next decade, more expensive than the Senate version, which makes sense since expanding coverage is one of the fixes the House wants to enact. But the CBO reportedly said the legislation would cut the deficit by $130 billion over the next decade and $1.2 trillion the decade after that — steeper deficit cuts than the Senate bill had. As Ezra Klein summed it up, “that’s more deficit reduction than either the House or Senate bill, and more coverage than the Senate bill.” Hoyer noted that it’s the biggest deficit reduction act since the 1993 Clinton budget.

It’ll be interesting to see how the bill achieves that goal. There had been word in the last 24 hours that the excise tax on Cadillac plans — something labor unions had opposed — had to be tweaked to make sure the legislation met its deficit-reduction aims. Will a more robust excise tax on high-end plans weaken labor’s support for the bill? One thing is certain: with the release of the CBO’s numbers, moderate Democrats concerned about the fiscal impact of the bill can now rest easier and support it.

One wait is over, but another one begins. With the official release of the CBO score later today, the clock officially begins on the 72-hour window that Democrats had promised to give members before voting on the legislation. This pegs the vote for Sunday — though Republicans have promised to pull out all the stops to delay the process.

Civil Disobedience for Republicans

Tuesday, March 16th, 2010
Ed Kilgore



Ed Kilgore is a PPI senior fellow, as well as managing editor of The Democratic Strategist, an online forum.

by Ed Kilgore

I know, I know, paying attention to anything Rep. Michele Bachmann (R-MN) says is a bit lazy, since she offers up irrational outrages on a near daily basis. But her remarks suggesting that Americans don’t have to comply with health care legislation if it’s enacted via procedures she doesn’t like really do blaze some new trails for the American Right — or at least trails not pursued since the early 1960s, when segregationists urged noncompliance with Supreme Court decisions and civil rights laws.

Here’s Bachmann flirting with jail-time in defense of the great American principle of unregulated private health insurance, or whatever it is she’s standing for:

If they pass the bill legitimately, then yes, we have to follow the law — until we repeal it. But if they pass it illegitimately, then the bill is illegitimate, and we don’t have to lay down for this. It’s not difficult to figure out. So if for some reason they’re able to get their votes this week and pass this 2,700-page Senate bill — if they get it, trillions of dollars is what it’s gonna cost, when we didn’t vote on it, we need to tell them a message: That if they get away with this, they will be able to get away with anything — with anything. And you can’t say you voted on a bill when you didn’t, because it’s fraud. But we are not helpless here. We are not helpless, there are things that we can do.

What Bachmann is thundering about here specifically are reports that the House may vote on a reconciliation bill to “fix” the Senate bill, and then by a Rules Committee provision “deem” the Senate bill itself as having passed the House via efforts to amend it. Turns out the “deem and pass” strategy was used by Republicans during the Bush administration to enact a debt limit increase — never a popular vote — so there is, ahem, some bipartisan precedent for the procedure. And for all the talk about its sneakiness, it should be remembered that it is being considered not because of some substantive concerns about a “fixed” Senate bill, but because House members fear the Senate will just celebrate House passage of their bill and not bother to get around to the “fix.” In other words, it’s all procedural mumbo jumbo that’s unrelated to real health care reform. Any House member voting for the “fix” is, in fact, going to be held responsible by Republicans for supporting “ObamaCare,” so conservatives are being more than a little disingenous in claiming that “deem and pass” is some sort of devilish trick to avoid accountability.

In any event, the courts are where such matters should be thrashed out, not the streets. And by suggesting that her own view of “deem and pass” as representing “tyranny” should trump the law of the land, Bachmann is taking a fateful step towards the revolutionary posture that her Tea Party allies have been hinting at all along.

I’m reminded of an incident back in Georgia some time ago when Congress had enacted a tax bill that imposed a state-by-state volume limitation on the use of tax-exempt financing for private development projects. I was part of a state government team that designed Georgia’s system for implementing this law, and after a public briefing on the new rules in one locale, a local development official replied: “We appreciate y’all coming down here to explain all this, but we think we’ll just use the old system.” We decided not to humiliate the guy by pointing out that the IRS wouldn’t exactly let him “use the old system,” but instead informed him of that privately.

I hope someone informs Michele Bachmann and her listeners that she doesn’t get to pick and choose which laws are “valid.” And if she’s willing to go to the hoosegow to resist ObamaCare, there are quite a few other Americans who think the supremacy of law is a rather important principle who will be happy to accomodate her.

This item is cross-posted at The Democratic Strategist.

Knowing What You Paid For

Tuesday, March 16th, 2010
Elbert Ventura



Elbert Ventura is the managing editor of the Progressive Policy Institute.

by Elbert Ventura

‘Tis the season to fill out your tax forms — and, for many Americans, to complain about all the tax dollars that disappear into the maw of what they see as an indifferent government. But it doesn’t have to be this way. Democracy’s Ethan Porter has a great idea to increase Americans’ sense of investment in their government:

[L]et’s offer individual taxpayers a clear breakdown of what they’re getting in return for their taxes. The IRS should provide individual taxpayers with a receipt. To be as accurate a reflection of spending as possible, such a receipt would be mailed at the beginning of the year following the April 15 deadline. So, for example, I would receive a receipt for my 2009 tax return, filed in 2010, in the beginning of 2011 estimating where my money has gone thus far, and will go until I file my next return. Soon after, the president would unveil a new budget resolution, and, as April loomed, the process would begin again.

By necessity, such a receipt would be an estimate, broken down according to what each taxpayer had paid the previous April. (Only the portion of the budget consisting of money generated by individual taxpayers would be deconstructed for each person.) The receipt would necessarily represent a bit of an oversimplification–the federal budget is a monstrously complicated thing. For our purposes, comprehensibility, as opposed to comprehensiveness, should be prized. The text should be simple, and the accompanying graph should be clear. We have the capacity to do this already: Today, numerous outside groups, the Center on Budget and Policy Priorities probably the best among them, produce material along these lines. But they don’t do so in accordance with the federal government, and their work isn’t distributed to every taxpayer.

If done right, a receipt could have powerful and lasting consequences. It would make clear the enormous amount of goods and services provided by the government.

Even as conservatives have launched a largely successful crusade against taxes over the last couple of decades, public demand for services that the government provides hasn’t waned. The result is a disconnect: anger at the level of taxation — which has already been generally decreasing since the 1970s — and yet a steady expectation of goods and services from a government that relies on taxpayer money to sustain itself.

Considering the misconceptions the public has about where their taxpayer money goes, Porter’s idea could be a great corrective to the conservative narrative of a government squandering its tax dollars or prioritizing areas of less importance to them. As Porter points out, Americans tend to overestimate how much of the money goes toward things like welfare and foreign aid. When confronted with the fact that those numbers are actually small compared to other expenses like national defense and Social Security, taxpayers may see the check that they’re dropping in the mailbox every spring in a whole new light.

It’s no secret that the U.S. is going to have to find new ways to cut spending or raise revenues to steer us off our current path of fiscal disaster. An informed taxpayer might be more realistic about the hard choices necessary on both sides of the budgetary ledger. A receipt for our tax dollars will make for a less inflamed electorate — and, by extension, plant the seeds for a more reasonable fiscal politics.

The Tea Party’s Retreaded “Ideas”

Friday, March 5th, 2010
Ed Kilgore



Ed Kilgore is a PPI senior fellow, as well as managing editor of The Democratic Strategist, an online forum.

by Ed Kilgore

For all the talk about the Tea Party Movement and its demands that America’s political system be turned upside down, it’s always been a bit hard to get a fix on what, exactly, these conservative activists want Washington to do.

To solve this puzzle, it’s worth taking a look at the Contract From America process — a project of the Tea Party Patriot organization, designed to create a bottoms-up, open-source agenda that activists can embrace when they gather for their next big moment in the national media sun on April 15. The 21-point agenda laid out for Tea Partiers to refine into a 10-point “Contract” is, to put it mildly, a major Blast from the Past, featuring conservative Republican chestnuts dating back decades.

There’s term limits, naturally. There are a couple of “transparency” proposals, such as publication of bill texts well before votes. But more prominent are fiscal “ideas” very long in the tooth. You got a balanced budget constitutional amendment, which ain’t happening and won’t work. You got fair tax/flat tax, the highly regressive concept flogged for many years by a few talk radio wonks, that has never been taken seriously even among congressional Republicans. You’ve got Social Security and Medicare privatization (last tried by George W. Bush in 2005) and education vouchers. You’ve got scrapping all federal regulations, preempting state and local regulations, and maybe abolishing some federal departments (an idea last promoted by congressional Republicans in 1995). You’ve got abolition of the “death tax” (i.e., the tax on very large inheritances). And you’ve got federal spending caps, which won’t actually roll back federal spending because they can’t be applied to entitlements.

My favorite on the list is a proposal that in Congress “each bill…identify the specific provision of the Constitution that gives Congress the power to do what the bill does.” This illustrates the obliviousness or hostility of Tea Partiers to the long string of Supreme Court decisions, dating back to the 1930s, that give Congress broad policymaking powers under the 14th Amendment and the Spending and Commerce Clauses. This illustrates the literalism of Tea Party “original intent” views of the Constitution; if wasn’t spelled out explicitly by the Founders it’s unconstitutional.

We are often told that the Tea Party Movement represents some sort of disenfranchised “radical middle” in America that rejects both major parties’ inability to get together and solve problems. As the “Contract From America” shows, that’s totally wrong. At least when it comes to policy proposals, these folks are the hard-right wing of the Republican Party, upset that Barry Goldwater’s agenda from 1964 has never been implemented.

Photo credit: http://www.flickr.com/photos/bisongirl/ / CC BY 2.0

About Those “Green Shoots” of Moderation

Tuesday, March 2nd, 2010
Ed Kilgore



Ed Kilgore is a PPI senior fellow, as well as managing editor of The Democratic Strategist, an online forum.

by Ed Kilgore

Yesterday I wrote about the conservative effort to convince the news media and others that crazy people were being kept under control by the Tea Party Movement and the Republican Party. There’s an even less credible media narrative kicking around that was pursued the same day by Janet Hook of the Los Angeles Times: Republican moderates are making a comeback!

If you understandably missed this development, here’s how Hook puts it:

With healthcare legislation mired in partisanship, “tea party” activists on the march and GOP leadership dominated by conservatives, Capitol Hill looks like a parched landscape for the withered moderate wing of the Republican Party.But green shoots are sprouting in Washington and on the campaign trail. A small band of Republican moderates in the Senate broke a logjam on jobs legislation. They added to their ranks with the arrival of another New England Republican, Scott Brown. And several moderate Republicans are in a good position to win Senate seats in November.

The article is loaded with qualifiers of this dubious proposition, but not enough of them. The jobs bill where “Republican moderates” — including Tea Party favorite Scott Brown — offered a few votes for cloture was a vastly watered-down $15 billion measure that included a payroll tax credit for employers long beloved of Republicans (indeed, that’s why it was in the bill). Once cloture was invoked, 13 GOPers voted for the bill, including such decidedly non-moderate senators as James Inhofe (OK), Richard Burr (NC) and Hatch (UT). Indeed, the only reason the bill was even controversial for Republicans is that it was offered by the Democratic leadership in lieu of a much more expensive and tax-cut laden bill worked out between Sens. Max Baucus (D-MT) and Chuck Grassley (R-IA)  that most Democrats intensely disliked. Anyone expecting this development to lead to an outbreak of bipartisanship or a breakdown of Republican obstruction is smoking crack.

Hook’s optimistic spin on “moderate Republican” prospects for election to the Senate is equally off-base. She cites Rep. Mark Kirk (IL), Rep. Mike Castle (DE), Gov. Charlie Crist (FL), former Rep. Tom Campbell (CA), and former Rep. Rob Simmons (CT) as potential additions to the “moderate” ranks. Kirk moved hard right to win his primary, and is running even with his Democratic opponent. Campbell is best known at present as the object of primary opponent Carly Fiorina’s cult favorite “demon sheep” web ad; I’d bet serious money he doesn’t win his primary, and the winner likely won’t beat Democrat Barbara Boxer, either. Simmons is struggling against a well-financed primary opponent, and is trailing Democrat Richard Blumenthal by double digits. Crist is political toast. I’ll grant that Castle is in good shape, and has a quite moderate record (so far). But even if Castle and Kirk win, their election would no more than offset the retirements of George Voinovich and Judd Gregg in the less-than-loudly-conservative ranks. And Hook also doesn’t mention that at least two GOP senators who occasionally cooperate with Democrats, Bob Bennett and John McCain, could get purged in primaries.

As for the forward-looking optimism of Hooks’ “green shoots” metaphor, it should be noted that Castle is 70 years old; Simmons is 67; Campbell is 56; Crist is 53; and Kirk is 50. Even by the geriatric standards of the Senate, this group ain’t exactly the wave of the future. They also don’t look much like America.

Sure, if the Republlican caucus in the Senate expands significantly this November, it is going to include a handful of members who don’t regularly howl at the moon about “socialism.” But any suggestion that the ancient tribe of moderate Republicans is much more than an anthropological curiosity these days is just not credible. It says a lot of the direction of the GOP that the early 2012 presidential favorite of “moderates” appears to be Mitt Romney, who spent the entire 2008 cycle campaigning as the “true conservative” in the race.

If words like “moderate” have any real meaning, it’s not a word that should be applied to any major faction in today’s Republican Party.

This item is cross-posted at The Democratic Strategist.

GOP Complaints on Health Care Process Ring Hollow

Wednesday, February 24th, 2010
Will Marshall



Will Marshall is the president of the Progressive Policy Institute.

by Will Marshall

Republicans are warning of ominous political consequences if the Democrats use budget reconciliation rules to help pass health care reform. It would be “a huge mistake,” averred Sen. Olympia Snowe, the chief object of Senate Democrats’ unconsummated quest for bipartisan cooperation on health reform.

Evidently, for the Democrats to resort to reconciliation would be an intolerable abuse of congressional rules, whereas the Republican habit of filibustering everything in sight is perfectly within bounds. Passing health measures by a simple majority vote, the GOP maintains, would be the political equivalent of nuclear war: It would pulverize what little remains of comity and good will in Washington.

It’s a little late for the GOP to be worrying about that. Nor are Republicans more convincing when they complain that it’s somehow illegitimate for President Obama to start the bidding in tomorrow’s health care summit with a plan derived from bills that have passed both houses of Congress.

“I don’t think the people like this any more than…the approach that came down the pike earlier,” House Republican Whip Eric Cantor said. “People are incredulous. I just think they are wondering, does the White House not get it?” He was referring, of course, to polls showing majority opposition to the main health care proposals before Congress.

Cantor seems to be arguing that shifting public attitudes matter more than election results, and that Congress shouldn’t pass legislation that doesn’t poll well. Does the House minority whip not get representative democracy? (It was a good thing he wasn’t around when Lincoln pushed Congress to enact a draft to win the Civil War.) And if Republicans really are so sure Democrats will self-destruct politically by passing Obamacare, why not lash them on?

One reason might be that the health care summit will highlight the embarrassing fact that Cantor and company offer no serious alternative to the president’s approach. (House Republicans last year labored mightily to produce a mouse of a bill that would cover just three million of America’s 40-plus million uninsured.) The real choice is between the president’s far-from-perfect health care reform, and none at all.

And in a way that’s too bad, because if we had a serious opposition, it might help the president push back against some of the bad ideas coming from his own party. An example: under pressure from labor and liberals, Obama has drastically scaled down and delayed an excise tax on expensive employer-paid health plans. Not only does that reduce revenue needed to pay for health reform, it also barely grazes an open-ended federal tax subsidy that economists believe contributes greatly to medical cost inflation. Rather than insist on limiting that government subsidy, many Republicans claim it’s a violation of Obama’s pledge not to raise taxes on the middle class.

In a similar vein, the Republicans have lambasted Obama’s proposal to cut hundreds of billions from Medicare to defray the expenses of expanding coverage. And so in its blindly partisan attacks on Obama’s push for health reform, the GOP has managed to 1) shred its credibility as a force for fiscal responsibility; 2) thwart efforts to rein in runaway health care costs; and 3) reinforce their well-deserved reputation as a party that measures compassion by the thimble-full.

On health care, the Republicans have hit the trifecta of demagoguery – which is why their complaints about parliamentary foul play ring hollow.

A Push Into the Abyss

Tuesday, February 23rd, 2010
Ed Kilgore



Ed Kilgore is a PPI senior fellow, as well as managing editor of The Democratic Strategist, an online forum.

by Ed Kilgore

Glenn Beck’’s weird tutorial that ended this weekend’s Conservative Political Action Conference seems to have been a big hit among attendees. Yes, it’s a bit ironic that he expressed views highly similar to those of Ron Paul, whose student-driven victory in the CPAC straw poll was heavily panned and booed by the “regular” conservatives at the conference. Yes, some may have been put off by his constant use of Alcoholics Anonymous metaphors (people who need any form of government assistance are apparently just like alcoholics who haven’t “hit bottom” yet). But there really didn’t seem to be much dissent in this crowd with the idea that “progressivism” dating all the way back to Wilson and TR has been demonic, or that Republicans have to repudiate all forms of activist government if they want to get back on the paths of righteousness.

I was particularly struck by John Fund’s analysis of Beck’s appearance for the Wall Street Journal, which treated it as a constructive warning to Republicans against the temptations of governing.

It’s true that people like Beck and Paul, and most obviously the Tea Party Movement, are encouraging Republican politicians to take an ever-more-rigid position against government spending which, in combination with perpetual demands for both fiscal discipline and major new tax cuts, suggest a level of government retrenchment far beyond anything Americans have experienced since Hoover. But it’s surprising how few observers on the Right seem to be aware of the exceptionally perilous political direction of such talk.

Chris Bowers recently offered a useful summary of recent polling on specific cuts in government spending. And the bottom line is that Americans really, really don’t want them except in small categories like NASA and non-defense foreign assistance. And this is why symbolic anti-spending measures like never-to-be-enacted constitutional balanced budget amendments (Tim Pawlenty’s favorite panacea) and various “freezes” have always been so popular among GOP politicians. It’s probably poetic justice for conservatives that decades of anti-government demagoguery have convinced so many people that it would be easy to slash spending by attacking “waste” or “bureaucrats” or “welfare” or “foreign aid,” but the reality is that any serious attack on federal spending will have to include major cuts in defense; very popular domestic entitlement programs; or very popular domestic discretionary programs like public education and law enforcement.

So all the white-hot rhetoric about spending you hear from GOPers these days carries some pretty interesting implications, particularly for the bulk of Republicans who also favor a big escalation of the Afghanistan War (and perhaps a new war with Iran), and who have no prescriptions for economic growth other than still more tax cuts. I’m sure that Beck and Paul would have no problem calling for the abolition of Medicare and Social Security as they exist today, but are GOP politicians ready to follow? I don’t think so. And this is the real reason they struggle to articulate a governing agenda for 2010 and beyond.

Maybe John Fund thinks it’s good for Republicans to regularly get a kick in the pants from right-wing figures whose own views, if put to a vote, wouldn’t get support from more than a quarter of the electorate. But it looks to me more like a push into a political abyss. Maybe they can get away with fierce-but-vague rhetoric and opposition to Democratic initiatives for a while, but ultimately they will have to come right out and admit that the fiscal arithmetic of their own “thinking” would lead to a federal government more like that of the Coolidge administration (Beck’s favorite) than that of the Reagan administration. If they do, it won’t be Beck or Paul who has to pay the political price.

This item is cross-posted at The Democratic Strategist.