In the Supercommittee’s failure, a stark 2012 election
There has been a lot of ink spilled over the failure of the congressional “supercommittee” to find a path toward systemic, long-term deficit reduction.
After digging through the various accounts of what went wrong, it strikes me that the collapse of the effort boils down to a fairly simple ideological difference over taxes.
Republicans put forward a series of proposals which would have effectively locked in the pattern of taxation established by President George W. Bush, one that reduced the tax burden on America’s wealthiest citizens.
Yes, the plan developed by Sen. Pat Toomey would have boosted revenue somewhat by closing high-end tax loopholes, but the concept essentially institutionalized the notion that capital gains taxes and estate taxes should remain low or nonexistent.
Ultimately, the Toomey plan would have placed the largest burden of deficit reduction on America’s middle and lower classes, not by raising their taxes so much, but by cutting the programs, public sector jobs and services that many families rely upon.
After some early uncertainty, meanwhile, Democrats appear to have solidified their stance around the notion that America’s wealthiest citizens need to contribute significantly more to Federal revenues, both to pay for government programs and cut the deficit.
They hope to return the nation to upper-end taxation rates more in line with those seen during the Clinton years.
Yes, President Barack Obama put Social Security, Medicare and other entitlements on the table for negotiated cuts. But the real core of the Democratic plan appears to be to allow the Bush-era tax cuts to expire at the end of 2012.
The good news here is that this ideological log-jam gives us exactly what democracies need in an election season: a clear choice.
Voters who believe that income tax rates on upper-wage earners are too high and that further tax hikes will stifle investment, innovation and job creation in the middle of a painful economic slump, have a party that shares that conviction whole-heartedly.
Voters, meanwhile, who believe that the Bush-era tax cuts were a major give-away to the wealthy, contributing mightily to dangerous national deficits at a time when the US faced two wars and historic economic challenges at home — well, they have a party that shares their views.
My sense is that Republicans and Democrats feel pretty comfortable marching under these banners over the next twelve months.
Both sides think they have a winning ideology, one that will capture the hearts and hopes of the American people.
What do you think? Do either of these approaches fit your sense of where America needs to go?
Tags: election12, politics, tax policy
First, my desire is to see the media report ALL of the information. The media is very powerful and voters need to look carefully at what is and is not being reported. Case in point: Washinton Post Nov. 9, “Republicans offer tax deal….” McConnell said he suspected that “the folks down at the White House are pulling for failure because, you see, if the joint committee succeeds, it steps on the story line that they’ve been peddling, which is that you can’t do anything with the Republicans in Congress.”
Second, many democrats have not supported taxes on the wealthy. My guess is much campaign dollars stand to be lost if they proceed down this road. Oprah had more to do with Obamas being elected than any other person. I haven’t seen her standing next to Warren B in a photo op supporting Obama.
Third, raising taxes on the rich only pushes the problem down the road. Then what?
First, I’d like to see the media outlets reporting all the news without their spin. Case in point: Washington Post Nov 9th, “Republicans Offer Tax Deal……” McConnell said he suspected that “the folks down at the White House are pulling for failure because, you see, if the joint committee succeeds, it steps on the story line that they’ve been peddling, which is that you can’t do anything with the Republicans in Congress.” Reading the news one is lead to believe the committees failure was the GOP’s fault. As a voter I would appreciate all of the information and not just what they think I should hear.
Second, Many democrats do not support the president when it comes to raising taxes on the wealthy. I’m sure they realize this might put a big dent in their re-election funds. I don’t believe anyone had more to do with getting Obama elected than Oprah. I don’t see photo ops of her standing next to Warren B supporting his tax plan.
Third, raising taxes on the rich only pushes the problem down the road, then what? More taxes?
“Third, raising taxes on the rich only pushes the problem down the road. Then what?”
Then we cut military spending in half, end business subsidies, close tax loopholes, and start a single-payer health care system?
Check out the tax strategies of Estee Lauder heir Ronald Lauder:
http://www.nytimes.com/2011/11/27/business/estee-lauder-heirs-tax-strategies-typify-advantages-for-wealthy.html?_r=1&pagewanted=all%3Fsrc%3Dtp&smid=fb-share
Walker: I think you’re right. I would guess most people who make up the GOP base would much rather see cuts in military before cuts in S.S. and Medicare…. Each political party is looking for things to take into the election and I’m not sure either is going down the right road.
It all boils down to one thing. Do you want this nation to move forward and be closer to fair or revert back to the 18 & 1900’s where the wealthy and corporations own you and everything else. They will own or house your groc and you will never get out of debt from them. Look at your history. We know where the republicans want to take us look at Wisconsin, Ohio,and Florida went already. Vote republican and the common people lose. By the way I am a registered republican.
“Paul, please explain how to lead those that refuse to follow.”
PNElba, history is littered with examples of great leaders who accomplish this.
Can’t tell you what it will take here I can only tell you that this president doesn’t appear to have it.
Walker says:
November 29, 2011 at 7:08 am
Great article. He is obviously a very clever man. Unfortunate for someone like me. He’s playing us like a piano.
If only he’d use his powers for good instead of evil !! ;0
I would like to see him coach our Government to be able to find every crack and loop hole in terms of our financial dealings WITH OTHER COUNTRIES, instead of canabalizing ours.
Then he’d be clever, AND a patriot. Right now, not really loving him.
Oh yeah, and all that phillantropic stuff he’s hiding behind is like the bank robber using a child for a human shield….
“….history is littered with examples of great leaders who accomplish this.” How about a specific example?