issue: Politics

Wingnut Watch: The Republicans Debate, and Wait for a Serious Contender

Posted on by The Progressive Policy Institute

The nuttier elements of Wingnut World were on high-profile display last week in Greenville, SC, as Fox News and the South Carolina Republican Party held the first event billed as a 2012 candidate debate. With the exception of Tim Pawlenty, everyone who showed up has about as much chance of winning the nomination as I do.

One of the under-discussed topics of the endless wind-up to the 2012 race is the extent to which an abundance of fire-breathing minor candidates can distort the tone of the GOP contest, and particularly its televised debates. The Greenville event showed it could get pretty weird, even with a tightly controlled format and with Michele Bachmann and Roy Moore not in the room.

As is almost always the case at Republican gatherings with no stiff entry fee, the live audience was dominated by very loud followers of Ron Paul. The enthusiasm for Paul was not diminished by the presence of a second libertarian, Gary Johnson. Meanwhile, one of those famous Frank Luntz focus groups watched the show and went gaga for Herman Cain, another familiar phenomenon from the early campaign trail. Cain is smooth and keeps things simple, which separates him a bit from other 100 percent red-meat stemwinders who always sound like they want to deliver a 3,000-page book written all in capital letters, with more shouting in the footnotes.

But if Herman Cain won the night, Rick Santorum may have won the week in South Carolina with several events (he’s now been to SC sixteen times already) capped by winning the straw poll at a state party fundraising dinner. He was, of course, the only candidate who showed up. The same day, oddly enough, in the very same city, Jon Huntsman made his first public appearance after stepping down as U.S. Ambassador to China, as the commencement speaker at the University of South Carolina. Aside from some remarks about patriotism that some are interpreting as an elliptical defense of his service in the Obama administration, Huntsman made it through his speech without having to address the kind of right-wing concerns about his commitment to the Cause he’ll soon be facing if he runs for president.

While we are on the presidential topic, Newt Gingrich has let it be known he will announce his candidacy on Wednesday, after several false starts over the last month. Gingrich will try to extend the press surrounding his announcement with a Major Speech at the annual convention of the Georgia Republican Party.

Newt isn’t being taken that seriously as a candidate by most of the punditocracy, but it does respect his money, as reflected in a very interesting piece in today’s Wall Street Journal about the vast and well-financed array of organizations he’s put together since leaving Congress in 1999, often called “Newt, Inc.” Like Mitt Romney, Gingrich is a candidate who harnesses tremendous organizational, fundraising and (conservatives think, at least) intellectual skills to a pattern of flaws that may or may not prove disqualifying.

The other presidential buzz this week involves the man beloved of many Beltway Establishment Republicans who believe he can save them from a presidential field sporting the likes of Cain, Santorum, Gingrich, Romney and the rest of them: Mitch Daniels. Chris Cillizza of the Washington Post nicely captured the thinking of these folk:

A Daniels candidacy probably would be taken as a sign that the games are over for the Republican Party, that it is time to buckle down and organize to beat President Obama.

“He will turn a race that is about less serious politics into a race about more serious policy,” argued Alex Castellanos, a Republican media consultant who is not aligned with any candidate heading into 2012. “Daniels is the adult in the room saying the party is over, it’s time to clean house. That contrast in maturity is how a Republican beats Obama.”

Any time you read this many references to seriousness and maturity, you have to figure the political professionals in the GOP are very worried about their presidential field, and, moreover, willing to accept the risks involved in a “serious” candidate who wants to undertake very unpopular policies in order to nominate someone who seems as presidential as Barack Obama. But the more immediate problem is that the people being implicitly derided as immature, unserious brats happen to be the grassroots conservatives who tend to dominate early-state caucuses and primaries—and to cheer Herman Cain and Rick Santorum when they call for total war against the godless liberals and Beltway elites alike.

 

Egypt’s Errant Diplomacy

Posted on by The Progressive Policy Institute

Although the fall of Arab dictators is in general a healthy development for America, it could also pose some tricky, short-term challenges to U.S. interests in the Middle East. Egypt’s post-Mubarak diplomacy is an unsettling case in point.

Long our most reliable ally in the region, Egypt has struck a more independent course since a popular uprising forced Hosni Mubarak to relinquish power. To the consternation of Washington and Jerusalem, it brokered the April 27 power-sharing agreement between the Palestinian Authority and Hamas.

Palestinian Authority President Mahmoud Abbas apparently sought the reconciliation with Hamas because he thinks a unified front bolsters the chance for Palestinian statehood. A new interim government will ask the United Nations in September to recognize a Palestinian state in the West Bank and Gaza. But since Hamas did not renounce terrorism or accept Israel’s right to exist, the accord would seem to foreclose any possibility of jump-starting stalled peace talks between Israel and the Palestinians.

Israel’s relatively dovish President, Shimon Peres, minced no words in calling the unity pact a “fatal mistake that will prevent the establishment of a Palestinian state and will sabotage chances of peace and stability in the region.”

Unfortunately, Hamas’s intransigence reflects a tragic Palestinian tendency to indulge in fantasies of redemptive violence and rally behind “strong men” who call for Israel’s destruction and defy the United States. Virtually alone in the region, Palestinians cheered Saddam Hussein during the 1991 Gulf War. A recent poll shows that a majority of Palestinians approve of Osama bin Laden, the only place in the region where that is true.

In fact, in stark contrast to the reaction of most Middle East leaders, Hamas deplored America’s killing of Osama bin Laden. “We condemn the assassination of a Muslim and Arab warrior and we pray to God that his soul rests in peace,” declared Ismail Haniya, “prime minister” of the Gaza strip. “We regard this as the continuation of the American oppression and shedding of blood of Muslims and Arabs.”

In any case, Egypt’s initiative has sharpened tensions between Palestinians and Israelis. Over the weekend, Israel froze Palestinian custom revenue to prevent it from being used to fund Hamas missile strikes, which have been escalating. Cairo has further deepened Israeli anxieties by lifting an electoral ban on the Muslim Brotherhood and reestablishing diplomatic ties with Iran. Israeli Prime Minister Benjamin Netanyahu is expected to address Congress later this month, but is reportedly recoiling from proposing new peace initiatives.

Egypt’s foreign minister also is urging the United States to back U.N. recognition of a Palestinian state. But the Obama administration is holding firm to its position that peace can only be achieved through direct negotiations between Israel and Palestinians.

Wingnut Watch: Responding to the Death of bin Laden

Posted on by The Progressive Policy Institute

Conservative reaction to the president’s announcement of the killing of Osama bin Laden has been relatively, perhaps even surprisingly, positive, given the standard view of Obama on the Right as an irresolute multilateralist afraid to use military force and always ready to apologize for American power.

Naturally, GOP congressional leaders and would-be presidents have been careful in their reactions. All gave credit to military and intelligence personnel with the event, but most (with the exception so far of Mitch McConnell, Rick Santorum, Sarah Palin and Michele Bachmann) also gave at least a small shout-out to the Obama administration, typically along with his predecessor.

Even some of the major right-wing opinionaters have been giving Obama grudging praise. RedState co-founder Ben Domenech made this rather strong statement at RealClearWorld:

Whatever you may think of Obama’s domestic policies or diplomatic decisions, his approach to national security has been largely wise and overwhelmingly vindicated thus far.

But there’s a very big undertow of conservative criticism of Obama for hypocrisy on grounds that the tactics that led to the discovery of Osama’s hiding-place were allegedly those that the president and other Democrats have deplored in the past. In fact, it’s being accepted at break-neck speed in the right-wing blogosphere that interrogations at Gitmo and/or the waterboarding of Khalid Sheikh Mohammed produced the critical intel. In other words, if Bush and Cheney can’t get the bulk of the credit for a big achievement that eluded them, the interrogation methods they defiantly championed were the real heroes.

There seems to be more than a little lefty-baiting going on in this line of conservative “reasoning,” in hopes of pouring gasoline on anti-war sentiment. Indeed, you can expect conservatives, initially at least, to leap to Obama’s defense if he visibly rejects the much-anticipated post-Osama advice to accelerate troop withdrawals in Afghanistan or announce an end to the Global War On Terror.

Before leaving this subject, I’d like to give a special acknowledgement to Michele Bachmann for her reaction to the death of Osama, which is a minor masterpiece in message discipline:

Tonight’s news does not bring back the lives of the thousands of innocent people who were killed that day by Osama bin Laden’s horrific plan, and it does not end the threat posed by terrorists, but it is my hope that this is the beginning of the end of Sharia-compliant terrorism.

“Sharia-compliant terrorism?” Sounds an awful lot like those “Sharia-compliant mortgages” Tim Pawlenty’s been accused of promoting as governor of Bachmann’s home state.

OBL’s death has temporarily interrupted the build-up of conservative wrath over the debt limit and GOP spending cut demands, but only temporarily. This week’s meetings in Washington involving representatives of the White House and congressional Republicans, and separately, the Senate’s Gang of Six deliberations, will produce a quickly intensifying backlash if there is any sign whatsoever of agreement. The latest “idea” that you’ll hear more about is that of a series of short-term (say, two-month) debt limit increases, providing multiple bites at the ideological apple, or, depending on which metaphor you prefer, a planned series of hostage crises. This is supposedly Grover Norquist’s pet proposal, and it could become very popular, even though some Tea Folk will point out this tactic didn’t work as brilliantly as was advertised on the FY 2011 appropriations front.

On the presidential campaign front, the news from Pakistan may have partially obscured Mitch Daniels’ decision to sign legislation making Indiana the first state to formally ban public funding for Planned Parenthood, and the third to impose a constitutionally-suspect ban on abortions more than 20 weeks after conception. This step is being widely interpreted as a signal that Daniels is back-tracking from his famous proposal for a “truce” on divisive cultural issues like abortion until such time as the country’s fiscal crisis is resolved, and/or that he has decided to run for president.

I dunno about that. Clearly, if Daniels had vetoed this legislation, the outcry from social conservatives would have made any presidential run in the immediate future a highly dubious proposition. But it’s not as though he actively promoted the bill before it landed on his desk, so further demonstrations of fealty to the anti-abortion cause will probably be necessary, and in any event, no one seems to know if he actually wants to run.

Pressure is also building on Mike Huckabee to make a move towards a candidacy a bit earlier than his own summer timetable. His friends in South Carolina recently had to bat down rumors he’d put out the word that he was giving the contest a pass.

Wingnut Watch: What Now for the Birthers?

Posted on by The Progressive Policy Institute

When I started doing this column back in February, I had this to say about the parameters of “wingnuttery” I considered sufficiently legitimate to address:

I’m not interested in conducting a carnival sideshow that cherry-picks and mocks radical conservatives who do not have any actual political power. I won’t follow the birthers and the white supremacists, won’t indulge in Nazi analogies, and won’t assume that every raving from the lips of Glenn Beck has been internalized as marching orders by Republican politicians. The degree of craziness in the conservative mainstream right now is large enough that exaggeration is unnecessary as well as unfair.

Guess I didn’t know how crazy “the crazy” could get, what with birtherism being a source of constant debate among all sorts of conservatives, and the signature issue of the guy currently leading most polls of Republicans to serve as their 2012 presidential candidate. But worse yet, today’s news indicates the evil genie of right-wing conspiracy theory will just move on to other toxic delusions about Barack Obama.

The White House got hold of and released the “long-form birth certificate” for the president that birthers have been claiming does not exist or has been destroyed or whisked away to one of those FEMA concentration camps or something.

Case closed, right? Well, the font of birtherism, the online publication WorldNetDaily, has “other questions” that remain about the circumstances of the president’s birth and upbringing. Meanwhile, Donald Trump is taking credit for forcing the White House to “resolve” the made-up “controversy.” Worse yet, he’s already moving on to other crazy conspiracy theories, notably the fable that Obama’s first book, Dreams From My Father, was actually written by ex-Weatherman William Ayers. This complete fabrication was emphatically endorsed by Trump on Sean Hannity’s show over a week ago. It’s a sign of the times that hardly anyone even noticed. And in an indication that this could be the next hallucinatory item to migrate from the fever swamps to “respectable” conservative opinion, Sarah Palin’s had this comment on Fox last night:

I think the media is loving this, because they want to make to make birthers, as they call people who are just curious about the president of the United States and his background and his associations and his consistency with what he says today versus what he said in both the memoirs that he wrote or Bill Ayers or whomever wrote.

I’m reasonably sure she was not just trying to be funny.

Conventional conservatives have a real obligation to stomp out this new/old forest fire of lies and lunacy before it spreads. The racial implications alone of the black-man-needs-white-radical-to-write-book meme are toxic enough to merit some active intervention instead of the sort of indulgent aren’t-they-cute attitude of Republicans towards birthers.

Meanwhile, back on Planet Earth, the main development among conservative activists during the last week has been a steadily hardening position on a debt limit increase, with sentiment roughly divided between those claiming a delay in the measure would not alarm financial markets, and those arguing that the sky will fall if Congress does not enact Paul Ryan’s budget or something like it directly. Suffusing both points of view is the conviction that the administration and Senate Democrats will eventually cave and give them much of what they want if the play chicken on the debt limit. Underneath the surface is almost certainly the legitimate concern that 2012 voters will not give the GOP the decimation of Medicare and Medicaid that they are demanding in negotiations, though conservatives can now point to at least one poll (from Gallup) showing that if the Ryan and Obama positions on the budget are described in vague enough terms, opinion polarizes by party like it does on everything else.

The emerging party line on the ontological necessity of pushing Ryan-style “reforms” through come hell or high water was probably best expressed by John McCain’s top 2008 economic advisor, Douglas Holtz-Eakin, in National Review:

Entitlement reform is in the House budget because entitlement reforms have to be central to any plan. The large entitlement programs — Obamacare, Medicaid, and Medicare — are running red ink right now and are the major source of the growing debt that harms economic growth. The federal budget cannot come into balance and stay in balance unless the entitlement programs are reformed. Entitlement reform is an obligation for anyone who seeks to lead America to a more prosperous, responsible, and secure future.

All righty then. What’s left to negotiate? How much of a tax cut for “wealth producers” we need to wash down those benefit cuts?

P-Fix Celebrates Earth Day

Posted on by The Progressive Policy Institute

Friday, April 22 was Earth Day. We put together five great pieces to celebrate:

Like Tax Day, Earth Day Calls for a Full Accounting by Scott Thomasson

 

Thomasson writes: “If environmentalists, clean energy advocates, and climate hawks of different feathers want voters to judge the president and members of Congress for their record on these issues, like their failure to pass energy and climate legislation, then they should take advantage of the visibility of Earth Day to demand an accounting from our officials. If there is any time when you can get the attention of the media and voters for five minutes to remind them that there is a lot of work left to do, today is the day.”

The Wrong Tools for the Job by Nathan Richardson

Richardson writes: “A better way to take stock of environmental progress is to look at the tools we are using. And unfortunately doing that leaves me profoundly depressed. For almost every environmental problem, the best, most cost-effective solutions are rejected in favor of second-bests, hopeful handouts, or inaction.”

Why the U.S. is No Longer a Leader in Environmental Policy, by Jason Scorse

 

 

 

Scorse writes: “The bottom line is that people are much more willing to support environmental policies that come with large risks and disruptions to their way of life when other policies are in place to shield them from excessive risk and instability. Progressive environmental policies must rest on a foundation of broader investments in social safety nets. One of the primary reasons that the U.S. has fallen behind the world on environmental policy is because we have fallen behind on virtually all measures of economic security; the two are intimately linked.”

Wingnut Watch: Earth Day is Lenin’s Birthday, by Ed Kilgore

Kilgore writes: “I can’t pinpoint the moment of total devolution of conservative opinion on the environment, although Al Gore’s Nobel Prize might have been the tipping point. Before you knew it, Fox News personalities were regularly greeting every blizzard as definitive proof that global warming was a hoax. A tempest-in-a-teapot leak of emails from a British research institute became “Climategate,” exposing a vast global socialist conspiracy to suppress clear evidence against climate change. And old, fringe arguments against environmentalism generally as “pagan” or anti-Western had a very big renaissance.”

The Environment: What the Public Thinks, by Lee Drutman

Drutman writes: “It’s Earth Day, but as far as problems go, the environment now ranks last among 15 issues that the public thinks Congress and the President should deal with this year. Only 24 percent of Americans think the environment is an “extremely important” issue. On this score, the environment comes in behind “the situation in Iraq” (27 percent), “taxes” (27 percent), and “illegal immigration” (30 percent) and “gas and home heating prices” (31 percent).”

Wingnut Watch: Earth Day is Lenin’s Birthday

Posted on by The Progressive Policy Institute

It’s almost universally understood that the sudden withdrawal of nearly the entire Republican Party from any significant interest in environmental protection has had and will continue to have a calamitous effect on the ability of public institutions to do anything about such challenges as global climate change. The speed with which this has happened, though, can induce whiplash, not least among Republican pols who are being forced to repudiate their own records (notably John McCain in 2008, and in the current presidential cycle, Tim Pawlenty, soon to be followed, I am sure, by Jon Huntsman if he decides to run). My personal favorite example of this phenomenon occurred in 2010, when Rep. Mark Kirk, who had voted for the administration-supported climate change bill in the House, promised to vote against it if elected to the Senate.

In part this development can be understood as simply a subset of the final conquest of the GOP by a conservative movement that’s been struggling to regain control ever since it briefly held it in 1964. It’s also, as many commentators have noted, a byproduct of partisan and ideological polarization: if Barack Obama is for climate change legislation, then, by God, no respectable conservative can come within miles of supporting it!

But something else is going on, too. Even within the conservative movement, hostility to environmentalism has recently morphed from a prejudice to a core belief. Until quite recently, conservative pols and opinion-leaders gave grudging lip service to environmental protection. EPA was viewed as a bureaucratic nuisance, but not as a fundamentally illegitimate menace to free enterprise. Conservatives favored “balanced” energy development, including nuclear energy and expanded exploitation of domestic oil and coal, but didn’t, until 2008, become the “drill baby drill!” fossil-fuel-o-maniacs they appear to be today. They were climate-change “skeptics,” but not, by and large, climate-change deniers.

I can’t pinpoint the moment of total devolution of conservative opinion on the environment, although Al Gore’s Nobel Prize might have been the tipping point. Before you knew it, Fox News personalities were regularly greeting every blizzard as definitive proof that global warming was a hoax. A tempest-in-a-teapot leak of emails from a British research institute became “Climategate,” exposing a vast global socialist conspiracy to suppress clear evidence against climate change. And old, fringe arguments against environmentalism generally as “pagan” or anti-Western had a very big renaissance.

On this last note, it’s almost been forgotten that just a few years ago “creation care” was the hottest topic around for evangelical theologians. And this was an ecumenical trend, too, and not just within Protestantism: Pope Benedict XVI sponsored a Vatican Conference on Climate Change in 2007. Even outspoken critics of “creation care” activism (e.g., the Southern Baptist Convention’s Richard Land) were urging caution in the advocacy of climate change action, not abandonment of the environment altogether.

More recently, though, the idea of environmentalism representing fundamentally anti-Christian values is back with a vengeance. A Washington Times editorial yesterday mocked Earth Day as “The Hippie Holiday” celebrated by “humanity haters” who were defying God’s direct command to subdue and exploit nature. And here’s what was posted at the top of the influential Red State blog site this morning:

This year, the anniversary of our Lord’s crucifixion falls on the anniversary of Vladimir Lenin’s birthday, which is also Earth Day. Some will choose to worship creation today. We choose to worship our Creator.

Wow. I hadn’t read the Earth Day = Lenin’s Birthday meme since the original Earth Day, when a Republican candidate for governor of my home of Georgia used it and then had to backtrack in considerable embarrassment.

My, how we’ve grown.

Like Tax Day, Earth Day Calls for a Full Accounting

Posted on by The Progressive Policy Institute

The greatest irony of Earth Day is that it has become a yearly event that is almost ignored by environmentalists and celebrated mostly by politicians and businesses with green products or PR campaigns. The reason for this is probably best understood by florists, card shops, and restaurants on Valentine’s Day or Mother’s Day: it is a day for symbolic gestures, taken most advantage of by those who aren’t doing enough the rest of the year but know they should be.

Boycotting the empty gestures is certainly understandable for those who “make every day Earth Day.” A quick visit to a half dozen or so websites of environmental groups this morning found almost no mention whatsoever of Earth Day, but there was a consistent focus on the one-year anniversary of the BP Deepwater Horizon gulf oil spill. That’s probably for the best, because if people who normally wouldn’t visit these sites are inspired to do so today, they are better off being met with substance than feel-good window dressing.

On the other hand, I’m not sure any of our politicians deserve to get a pass for running silent on environmental symbolism today. Just because it’s okay that Greenpeace chooses not to acknowledge Earth Day on its homepage today doesn’t make it okay for President Obama, Harry Reid, and John Boehner to do the same (they did, by the way—no mention of it whatsoever as of 9:30 am this morning, even on Obama’s now famous Facebook page).

Here’s why: for a lot of Americans, Earth Day may be the one day of the year when they decide to go hunting for information about what kind of progress we have made as a nation on environmental and energy issues, and elected officials ought to be accountable at exactly that moment for their positions on those issues. The White House gets this concept for taxes: Tax Day was this past Monday, and whitehouse.gov still has the new “taxpayer receipt” feature splashed across its main page so people can see where their money went while the question is fresh in their mind. Voters deserve a similar accounting for the environment on the day when they are most likely to be looking for it.

I understand the cynicism about what Earth Day has become, but the problem with that cynicism is one that has all-too-often plagued the environmental movement: it allows condescending moralism to undermine efforts for political accountability. If environmentalists, clean energy advocates, and climate hawks of different feathers want voters to judge the president and members of Congress for their record on these issues, like their failure to pass energy and climate legislation, then they should take advantage of the visibility of Earth Day to demand an accounting from our officials. If there is any time when you can get the attention of the media and voters for five minutes to remind them that there is a lot of work left to do, today is the day.

The Wrong Tools for the Job

Posted on by The Progressive Policy Institute

Whatever you read today, you’ll find writers marking Earth Day by taking stock of environmental progress. Some will celebrate how far we have come in the last 41 years: no burning rivers, bald eagles are back, etc. Others will stress how far we have to go, citing biodiversity loss, water crises, and above all climate change. (And if your reading habits are sufficiently diverse, others will argue we’ve gone too far, and that environmental rules are hurting our economy). All of these (yes, even sometimes the third) are partly right, but arguing over which frame is “right,” if any can be, is not that illuminating.

A better way to take stock of environmental progress is to look at the tools we are using. And unfortunately doing that leaves me profoundly depressed. For almost every environmental problem, the best, most cost-effective solutions are rejected in favor of second-bests, hopeful handouts, or inaction. To give just a few examples:

Transportation: With vehicle emissions dirtying city air and contributing to climate change, inadequate investment in road infrastructure, and a strategically costly dependence on foreign oil, the US could increase gas taxes, which are lower than those in almost every other developed economy. Instead, we use some policies that give no incentive to reduce driving while at the same time restricting consumers’ choice of cars (CAFE standards) and others that cost billions while driving up global food prices (ethanol subsidies).

Smog and Acid Rain: For a beautiful moment, from 1990 through 2010, we did it right: we had a nationwide cap-and-trade program for sulfur dioxide emissions that caused smog and acid rain. The program resulted in huge health benefits at far less cost than even EPA estimated. But that program is or will soon be dead. New EPA rules are set to end interstate trading for most of the country and will impose other restrictions that mean allowances now have almost no value. EPA doesn’t deserve all the blame—courts rejection of flexible tools and Congress’ failure to act are the true sources of this problem. But it’s just crazy to kill the best environmental program this country has ever had.

Climate: Despite the Senate’s failure to even consider a single climate bill last year, we do (to the surprise of some) have an American climate policy. States and EPA are leading the way, but even if they are both bold and smart, the patchwork of carbon markets, emissions standards, and energy subsidies that emerges will surely be less efficient overall. Emissions reductions will be less, and those we do get will cost more. How is that a good deal?

I could go on. Everywhere you look, even when we deal with environmental problems, we consistently choose ways to deal with them that are costly, ineffective, or even counterproductive. It would be one thing if the best ways to solve these problems—cap-and-trade, taxing externalities—were untested ideas. But of course they are not. They are well understood, and as close to dogma as is possible among economists. Most damning of all, we used to understand this, across the political spectrum. As the sulfur dioxide story illustrates, even if we are making some environmental progress we are getting worse as a country at dealing with these issues effectively.

There is a political story here, of course. There was a time when many on the left rejected efficiency as a goal of environmental policy. The right pushed for a role for markets, and eventually a grand compromise emerged in the 1990s. Efficiency was understood to be a universally valuable goal: more effective policies meant lower costs or more environmental benefits at the same cost. Politics was about making this tradeoff, as it should be.

But somehow cap-and-trade became cap-and-tax, and a large section of the right seems opposed to any environmental policy, whether efficient or not. They’ve moved the goalposts. This about-face is particularly ironic since it leaves government handouts like nuclear subsidies and inflexible restrictions like renewable portfolio standards as the only politically plausible energy policies. How is that pro-market or anti-big government? (The left is not without some blame too: to see that, just look at how fringe groups have recently derailed California’s cap-and-trade program).

But there’s more to this story than just party politics. Efficient environmental policy simply has not caught on with the American public. Sticker shock (like gas taxes) trumps long-term efficiency every time. Hiding costs through subsidies (like ethanol or nuclear) is always more popular than showing them up front by pricing externalities. Defending or securing benefits to the few is always easier than minimizing costs to the many. With environmental problems, costs are often distant in time or diffuse, or benefits are small but widespread. This exacerbates all these problems—that’s what makes them hard.

To some extent our failure to make good policy is a failure of leadership: hiding costs is classic politics, and tearing down those who ask us to make hard choices is easy. We see this in almost all issues, not just environmental policy. But leaders can’t carry all the blame, not least because we choose them.

So is there anything to be hopeful about on Earth Day? If so, it’s hard to find. The trend is in the wrong direction—it is as if we are forgetting everything we’ve learned about dealing with environmental problems. But eventually the biggest such problems—among them water, energy, and climate—will become too large to ignore (arguably, they are already there). When they do, efficient policies for dealing with them will be available. When we are ready, we can do this.

 

The Environment: What the Public Thinks

Posted on by The Progressive Policy Institute

It’s Earth Day, but as far as problems go, the environment now ranks last among 15 issues that the public thinks Congress and the President should deal with this year. Only 24 percent of Americans think the environment is an “extremely important” issue. On this score, the environment comes in behind “the situation in Iraq” (27 percent), “taxes” (27 percent), and “illegal immigration” (30 percent) and “gas and home heating prices” (31 percent).

Moreover, when it comes to the trade-off between the economy and the environment, meanwhile, the economy now wins hands down: 54 percent to 36 percent. This is actually a relatively new development. Prior to 2008, the public had never prioritized the economy over the environment. As recently as 2007, the public supported giving the environment priority over the economy 55 percent to 37 percent, and throughout the 1980s and 1990s public opinion was consistently 65-to-25 in favor of environment over the economy, with slight dips in environmental friendliness during recessions.

Not surprisingly, the changes have been most pronounced among Republicans and conservatives. In 2000, conservatives prioritized the environment over the economy 62-to-33 percent; Now they prioritize the economy 70-to-22 percent – a remarkable 38 point shift. Similarly, Republicans overall went from 60-to-34 percent environment first to 55-to-35 economy first.

But even liberals have become less environment first. In 2000, they supported the environment over the economy 74 percent to 22 percent; now it’s 55 percent to 35 percent economy over environment. Same with Democrats overall: In 2000, they favored the environment 69 percent to 27 percent; now it’s just barely: 46 percent to 42 percent.

Certainly, a sluggish economy has something to do with things. When unemployment flirts with double-digits and the economy is in recession, it’s much easier to see the top priority as creating jobs. Moreover, the visible environment is in pretty decent shape these days. The skies and rivers are not brown, thanks to environmental regulations passed in the 1970s. Whatever environmental disasters might exist lurk in the hypotheticals of global warming.

As for the environmental problems that people care about, drinking water comes out first (51 percent care a great deal about it), followed closely by soil (48 percent), and rivers, lakes and reservoirs (46 percent).

But even on the these issues, the public is a lot less worried. In 1989, 72 percent of Americans cared a great deal about the pollution of rivers lakes and reservoirs, as opposed to 46 percent today. Similarly, in 1989, 63 percent cared a great deal about air pollution; today it’s 36 percent. This is a success story, because public opinion reflects the fact that these issues just aren’t the big deal they used to be.

What’s troubling, however, is the extent to which public opinion is becoming less concerned about global warming. Only one quarter of respondents care a great deal about global warming, ranking it last among eight environmental issues. That’s down from 41 percent as recently as 2007.

Similarly, as recently as July 2006, 79 percent of respondents thought that there was solid evidence that the earth is warming, and 50 percent believed it was because of human activity. Now only 59 percent believe the earth is warming, and just 32 percent think it’s because of human activity.

What’s emerged is a partisan divide on the issue. Whereas Democrats have been largely consistent in believing the earth is warming, Republicans have increasingly become convinced that global warming is not a problem.

All of this, however, is too bad for Obama, because environmental stewardship is one of the issues the President polls best on: 55 percent of Americans think he is doing a good job “protecting the nation’s environment” as compared to 33 percent who think he is doing a poor job.

The Supreme Court Hears AEP v. Connecticut

Posted on by The Progressive Policy Institute

Would that allow you to sue all those farmers . . . cow by cow, or at least farm by farm? – Justice Scalia

You’re going to put a $20 a ton tax on carbon, and lo and behold, you will discover that nuisance will be abated. And we bring in 15 economists. – Justice Breyer

In oral arguments for AEP v. Connecticut today the Supreme Court today seemed skeptical of Connecticut and other states’ argument that they should be allowed to pursue nuisance suits against major power companies for their GHG emissions. The transcript is available, and SCOTUSblog has a good overview of the arguments. Though making predictions based on oral arguments is dangerous, I will be very surprised if the court allows this case to proceed. But it is much less clear which of the available reasons for halting the case the court will choose. That decision will have implications that extend well beyond the legal details, and choosing one of the reasons—displacement—could even be beneficial for climate policy.

To recap for those of you that haven’t been following the case, the court has four separate plausible justifications for dismissing it. Very briefly but (hopefully) in plain English, the court could rule that the states can’t sue because:

a) any injury from climate change can’t be traced to the power companies, or courts can’t craft a remedy (Article III standing),

b) the harms of climate change are too generalized and better addressed by Congress (prudential standing),

c) climate change is a “political question” that courts can’t decide; or

d) the Clean Air Act and EPA “displace” federal common law suits like this one.

With four separate grounds available, all of them arguably applicable, the states were always on shaky ground. In fact, the only way I can see the court allowing the case to proceed is if the justices cannot agree on which rationale to choose. If there is no majority, the lower court decision (which favored the states) would stand. This is slightly more likely than normal since Justice Sotomayor has recused herself, making a 4-4 split possible. But this outcome is unlikely. The court will probably choose one (or more) of the rationales and dismiss the case.

The justices spent some time at arguments on each of the four rationales. The political question doctrine was discussed the least, but I can’t rule out any of the four. But it is interesting that two of the justices most likely to rule in the states’ favor—Justice Kagan and Justice Ginsburg—focused on the displacement issue. Each seemed to feel EPA moves to regulate GHGs were significant, and in tension with a nuisance suit: Ginsburg suggested that the suit would require courts to become a “super EPA” without the expertise for that role. If these justices favor dismissing on displacement grounds, that may be the compromise that emerges from the Court.

It helps that an opinion citing displacement almost writes itself—this case was filed, decided, and appealed at a time when EPA never looked like regulating GHGs. A lot has happened since then: Massachusetts v. EPA, the 2009 GHG endangerment finding, new vehicle emissions rules, and the late-2010 settlement agreement under which EPA committed to regulating emissions from exactly those facilities the states are pursuing: the electric power sector.

The states point out that these regulations aren’t in place yet, and though I don’t think that helps them avoid legal displacement, it illustrates why a court decision based on displacement would be so important. If you’ve been following Congress this year, you know EPA authority over GHGs is under threat. It narrowly survived the 2011 budget process, and is likely to be targeted again. But if this authority is all that stands between emitters and federal nuisance suits, it becomes much harder to get rid of. The power companies already acknowledge in their brief that EPA does have the authority to regulate GHGs from their plants (which should, by the way, finally end attempts to rhetorically relitigate Massachusetts v. EPA). If the Supreme Court rules that Congress displaced suits like Connecticut when it gave broad authority to the EPA under the Clean Air Act, legislators are much less likely to take that power away, at least not without putting something new in its place.

So while a loss for the states on displacement grounds might seem like an anti-environmental result, it would be just as accurate to view it as pro-EPA. Dismissal of the case on standing or political question grounds does not have this effect. This also illustrates why displacement is the narrowest grounds for dismissal—if the EPA fails to act or is disarmed by Congress, the Court can revisit the issue, and only then would it need to draw sweeping conclusions about the scope of broad legal doctrines.

The EPA, armed only with its current powers, is not the ideal architect for climate policy—but it is a far better venue than the courts, for both practical and philosophical reasons. The justices today seemed acutely aware of these limitations. Assuming my prediction is correct and this case is dismissed, I agree with others who argue that is the right result regardless of our views on climate policy. But it’s possible that in dismissing the case the Court will strengthen the EPA. If so, that’s good news for the climate too.

Wingnut Watch: The Tea Party Celebrates Tax Day

Posted on by The Progressive Policy Institute

The Tax Day (or more accurately, Tax Weekend) observances of the Tea Party movement weren’t as large or well-publicized as in the past, but they did reflect the hardening consensus of conservative activists against both the appropriations deal just agreed to by congressional Republicans, and the coming legislation increasing the public debt limit. This consensus is being reinforced by potential presidential candidates and other opinion leaders who are encouraging the perception that the Beltway GOP is once again “selling out” the conservative movement and its latest Tea Party incarnation.

This snapshot of the mood at New Hampshire Tea Party events by Michael Crowley is illustrative:

The overall picture is one of a restless Republican base that sees defeating Obama as a matter of national survival. Angry conservatives believe Washington is spending the country into oblivion, and that lazy freeloaders are leeching federal money at the expense of ever more squeezed middle-class taxpayers. They also feel that the Washington game is rigged against them: “We’re constantly being lied to,” fumed Dan Dwyer of Nashua at a local GOP confab on Thursday night, still angry that Republicans had “caved” in their budget negotiations with Democrats earlier this month.

At a Wisconsin Tea Party rally, anger at congressional Republicans was fed by none other than Sarah Palin, who “unleashed a withering critique of congressional Republicans Saturday, lambasting them for not cutting spending deeper and faster, and saying the party needs to ‘fight like a girl.’” Meanwhile, Tim Pawlenty, who spoke at a number of Tea Party events, has been urging Republicans to oppose a debt limit increase on the questionable grounds that arrangements could be made to avoid a federal credit default until the autumn.

The superficially confusing aspect of this rhetoric is that the conservatives who are being most vocal about the dire nature of the deficit-and-debt emergency are precisely the same people who are fearful that congressional Republicans might cut some long-term budget deal with Senate Democrats and the administration that leaves increased taxes on the wealthy on the table. That’s why they are linking any approval of a debt limit increase not just to some deficit agreement, but to acceptance of the kind of deep spending cuts and “entitlement reforms” laid out in Paul Ryan’s budget proposal.

Accordingly, we will soon see Tea Party fire concentrate on those Senate Republicans said to be negotiating a deal that would include some tax increases. The Republican point man in the so-called “Gang of Six” of bipartisan senators engaged in these negotiations, Saxby Chambliss of GA, is already drawing unfriendly home-state fire from Red State’s Erick Erickson, who had this to say today:

Senate Republicans are going to support raising the debt ceiling and raising taxes all while refusing to demand passage of a Balanced Budget Amendment. House Republican Leaders will no doubt decide that . . . well . . . Republicans only control one house of one branch of government so . . . .

Bend over America.

This conflict will soon make it more obvious than ever that most conservative activists, including those identified with the Tea Party Movement, are less concerned with deficit reduction than with permanently shrinking the size and reach of the federal government and pushing both radical spending cuts and continued tax cuts.

On another front, there are growing signs that Republican elites have decided to give Donald Trump the same dismissive treatment that was said to have led to Sarah Palin’s steady decline in credibility as a potential presidential candidate. Over the weekend, Karl Rove called Trump a “joke candidate.” Playing his snooty Tory role, George Will called The Donald a “blatherskite,” and warned he could seriously screw up Republican presidential candidate debates. Slate’s Dave Weigel went to the trouble of reading Trump’s 2000 proto-campaign book, and noticed that Trump expressed a fondness for the Canadian single-payer health care system. Surfing off that disclosure, the Club for Growth put out a release calling Trump a “liberal.”

It’s almost certain that this offensive was stimulated by the Public Policy Polling survey of Republicans that was released on Friday showing Trump jumping out into a sizable national lead over the rest of the potential presidential field. Trump’s 26 percent is higher than any proto-candidate has registered in early national polls. And the internals, showing 23 percent of Republicans saying that could not vote for a candidate who believes Barack Obama was born in the United States (and another 39 percent saying they weren’t sure if they could or not), were probably terrifying to beltway GOPers.

No Trump

Posted on by The Progressive Policy Institute

Eventually, even billionaires grow bored with making money and look for more meaningful pursuits. For Bill Gates, it’s fighting disease in Africa; for George Soros, it’s kindling civic freedom in closed societies. To find Donald Trump, you have to slide considerably further down the social utility scale, to reality TV and, now, tea party demagoguery.

Is Trump a serious candidate? That’s an easy one: No. If he runs it will be to provide comic relief, which may be superfluous given the Republican Party’s already motley collection of odd, extreme and improbable presidential aspirants.

A tougher question: are Republicans a serious political party? That America’s vulgarian-in-chief can so easily vault to the top of early polling suggests a fatal GOP weakness for noisy celebrity over political substance.

Continue reading at Politico

Obama Reframes the Fiscal Fight

Posted on by The Progressive Policy Institute

Entering the lists at last, President Obama delivered a stout defense of progressive values yesterday and checked the rightward drift of the deficit debate. For all its strengths, though, his speech also left open the question of whether he and his party are ready to grapple effectively with surging health and entitlement costs.

Obama started with a history lesson. As the Tea Party harks back to 19th century conceptions of limited government, he reminded Americans that the nation’s progress since then has been built upon a pragmatic synthesis of free enterprise and progressive governance. The extent of public activism required to create optimal conditions for shared prosperity is always a legitimate matter of debate, but the basic need for it shouldn’t be.

By insisting that deficit reduction leave room for strategic public investments in scientific research, modern infrastructure and education, Obama underscored a vital distinction that was being lost in the scramble to cut government spending: Reducing budget deficits is integral to reviving America’s economic dynamism. For most Americans, the priority is to get our economy moving again, not shrink government.

Obama also pushed back hard against Rep. Paul Ryan’s delusional budget, which asserts that the America’s path back to fiscal responsibility entails 100 percent spending cuts and 0 percent tax increases. In endorsing (finally!) his own fiscal commission’s plan, the president has set up a clear choice between the GOP’s fanatical devotion to shielding the rich from higher taxes and a bipartisan approach that exempts no one from sacrifice.

The president’s confident rejection of GOP tax dogma left House GOP Whip Eric Cantor sputtering. He was reduced to repeating the ridiculous Republican mantra that asking the wealthy to pay higher taxes is tantamount to killing America’s small businesses. Please Eric, bring it on: this is a debate progressives can win.

But Obama can’t just win debates. He needs to preside over passage of a comprehensive deficit-reduction package that, in a divided government, can only be achieved on a bipartisan basis. If he wants moderate Republicans to play on raising revenues – and a few intrepid souls like Sens. Tom Coburn and Saxby Chambliss have begun to do – he is going to have to convince Democrats to play on entitlement reform.

Here his speech fell short. Clearly mindful of President Clinton’s success in rallying the pubic behind his plans to protect Medicare and Medicaid during the 1995-96 budget battle, Obama categorically ruled out structural changes in how government finances those programs. That could prove to be a mistake.

It’s one thing for Democrats to reject the size of Ryan’s proposed cuts in the big public health care programs. But for both substantive and tactical reasons, they shouldn’t reject out of hand innovative devises to constrain entitlement costs.

It’s 2011, not 1996, and the baby boom retirement is underway, not over the horizon. This demographic surge, combined with health care costs that have been rising for decades faster than the economy has grown, are the real drivers of America’s debt crisis. To put a governor on the engine of federal health care spending, Ryan has proposed moving Medicare to a premium support model, and turning Medicaid into a federal block grant.

In his speech, Obama endorsed an alternative: strengthening provisions in his health reform bill to slow the unsustainable rate of health care cost growth. These provisions would encourage health providers to shift from fee-for-service to fixed fees for bundled services or capitated payments, which reward the value rather than volume of care delivered. These and other Obamacare provisions, including the independent commission set up to explore efficiencies in Medicare, are all good ideas. But even if they work, it will take a very long time for them to reach the scale necessary to break the back of medical inflation.

In the meantime, we need to protect public budgets from surging health care costs that threaten to soak up every dollar of revenue raised by 2040. If premium support and block grants are ruled out – even though some prominent liberals and Democrats have long supported one or the other — progressives need to come up with an alternative.

The political “grand bargain” Obama must strike couldn’t be clearer. It’s embedded in the fiscal commission plan: GOP support for raising revenues in return for Democratic support for constraining public health care and retirement costs. As the political action now shifts to the Senate, Obama needs to challenge his own party too.

Wingnut Watch: How the Budget Compromise Played Out on the Far Right

Posted on by The Progressive Policy Institute

The consensus in Washington that last week’s appropriations deal represented a victory for conservatives was not shared very widely on the Right. Polls showed self-identified Republicans significantly less likely to approve of the deal than Democrats or indies. At the activist/elite level, the negative reaction was much stronger. Fits were pitched over the surrender of policy “riders,” notably by RedState’s Erick Erickson, who accused congressional GOPers of, quite literally, selling out “murdered children.” Rush Limbaugh even claimed that media assessments of the deal as a Republican win represented some sort of devious liberal trick.

Part of what’s going on here, of course, is that conservative activists want to maintain their leverage over Republican pols going forward. Many also don’t much appreciate all the bouquets being tossed at John Boehner for how well he “managed” them during the negotiations. Still others, especially on the Christian Right, really did care more about the policy riders than the overall level of budget cuts. A few, including probable presidential candidate Michele Bachmann, have adopted the Ahab Posture, making repeal of “ObamaCare” the condition for their vote on any budget or appropriations measure.

In any event, wingnut opinion is virtually unanimous in demanding a harder line in the FY 2012 budget debate and the associated debt limit vote, which many opinion-leaders (most famously Sen. Marco Rubio) are already promising to reject unless Democrats surrender definitively on every major issue, including “entitlement reform.” You can also expect a lot of conservative pressure to be applied to Republican senators this week to minimize support for the so-called Gang of Six, a bipartisan group that is working on a budget deal (loosely based on the Bowles-Simpson deficit commission report) that includes revenue measures, and may wind up working in tandem with the White House.

Over on the presidential campaign trail, things continue to heat up. Many conservatives took advantage of Mitt Romney’s announcement of a campaign exploratory committee to mock him for his stubborn continued support for the Massachusetts Health Plan, which, as it happens, was enacted five years ago this week. Puzzlement over the Mittster’s strategy for winning the nomination is spreading as well, particularly since it’s beginning to appear he may run away from serious campaigns in South Carolina as well as Iowa.

But the big news on the presidential front has been the startling evidence of significant support for possible candidate Donald Trump, the mythical tycoon and reality show host. A new CNN poll, in fact, shows The Donald running even with Mike Huckabee for the national lead among Republicans at 17 percent. The big question is whether such showings simply reflect name identification (Trump is, after all, nothing if not a celebrity), or perhaps a reaction to his recent high-profile expression of neo-Birther sentiments.

A PPP poll of New Hampshire, showing Trump running a relatively close second to Mitt Romney in that state, indicates the latter could be a factor: Trump actually leads among those denying Obama was born in the U.S. All these polls also show Trump having unusually high unfavorable numbers as well, so he’s hardly a threat to actually win the nomination. Still, his sudden emergence may indicate a craving in the GOP electorate for candidates with greater star quality, and perhaps more hard-core conservative views, though Michele Bachmann is certainly doing everything possible to supply both qualities. The possibility that Trump could actually run (and his bizarre interview with Christian Right journalist David Brody shows he’s trying to check off the interest-group boxes) should remain unsettling to other candidates; aside from his alleged wealth, he would be a nightmare in debates.

While Trump seems to be doing better than had been imagined among the conservative rank-and-file, the big winner during the last week in the Invisible Primary of insiders was Tim Pawlenty, with the announcement that former Republican Governors Association executive director Nick Ayers would run his campaign. Ayers, a Georgia-based wonder-boy (he’s only 28), was given a lot of credit for the GOP’s big gubernatorial gains in 2010. But a lot of the buzz about his T-Paw gig stems from the earlier assumption of many pols that he’d be involved in a different campaign: that of Haley Barbour, who was Ayers’ boss at RGA during the 2010 cycle. If nothing else, Pawlenty now has something important that he has lacked: a prominent backer from the South, where he will need to show strength if he winds up being the “consensus conservative” alternative to Romney to his left and perhaps an actual southerner to his right.

As Obama Prepares to Speak, PPI Hosts Tax Reform Forum

Posted on by The Progressive Policy Institute

Today, President Obama is speaking on long-term deficit reduction. He’s expected to embrace the National Commission on Fiscal Responsibility and Reform’s general framework (also known as Bowles-Simpson).

Yesterday, the Progressive Policy Institute joined forces with the Moment of Truth Project to host an event to discuss what comprehensive tax reform should look like, and what it will take to get it passed. (Moment of Truth was formed by Fiscal Commission co-chairs Erskine Bowles and Sen. Alan Simpson to build momentum behind the commission’s deficit reduction plan.)

Yesterday’s event, at Johns Hopkins University, helped build the momentum for reform. There was wide consensus that tax reform will need to be bipartisan and comprehensive, and will need to scale back most of the $1.1 trillion in tax expenditures. Tax expenditures are at the heart of the “modified zero plan,” which would eliminate or scale them back, and use the savings to cut individual and corporate tax rates, as well as budget deficits.

Coinciding with the event, PPI released a policy memo on the modified zero plan, written by PPI Senior Fellow Paul Weinstein and Marc Goldwein of the Committee for a Responsible Budget, and both formerly of the Commission. Both were on hand.

Yesterday’s forum event featured three Senators who have been leading the charge for reform – Michael Bennet (D-Colo.), Ron Wyden (D-Ore.) and Dan Coats (R-Ind.) – and one CEO and Fiscal Commission member, Dave Cote (CEO of Honeywell). They provided the big picture framing, so I’ll summarize the highlights of their remarks first, and then delve into the two panels of experts second.

Sen. Bennet kicked off the event with stories from the town halls he’d been spending the last two years doing: “In every single meeting, debt and deficit came up,” he said. “There’s a deep skepticism that if we can’t figure out how to pay our bills, it suggests a lack of confidence in our government and our elected leaders, and it’s fairly well-placed.”

Bennet offered three criteria for what a deficit reduction plan would have to accomplish to pass muster with voters. First, it would need to be comprehensive. “People know we can’t fix this overnight, but they want it to be comprehensive.”; Second, sacrifice has to be shared: “They want to know that we’re in this together, and everybody has a share of the burden.”; Third, it has to be bipartisan.

Coats laid out a similar series of principles for the legislation that he has introduced with Senator Wyden. First, he said, echoing Bennet, it has to be bipartisan. Second, it has to be revenue neutral. Third it has to be simple (“Right now we’ve got 71,000 plus pages of tax code, 10,000 plus special preferences and deductions. It’s a nightmare.) Fourth, it has to help out the middle class, and help families to save money for college, and help charitable organizations. And fifth and finally, “this has to be based on a principle of growth…the bottom line is it has to lead to jobs.”

Wyden looked at the problem through the lens of tax simplification, noting that as April 15 approaches, “Americans are going through the 6 billion hours they spend each year filling out tax forms — 690,000 years is what you have in an annual effort going through the water torture of figuring out if line 9 is modifying line 7.”

Wyden also stressed that any tax reform also needed to encourage investment in what he called “red-white-and-blue jobs” – that is, solid American jobs, preferably in manufacturing. Wyden called his bill fundamentally a jobs bill.

Cote, CEO of Honeywell, echoed similar themes in his remarks. “We need a global competitiveness agenda for the U.S.” he began. “Our corporate tax system is globally uncompetitive. We have the highest tax rate in the world, and we’re the only major country with a territorial system that encourages companies to keep their cash overseas. And we give back $1.2 trillion in what is euphemistically named ‘tax expenditures,’ but just another form of spending that’s done through the tax code.”

Echoing the urgency of the Senators, Cote posed the looming crisis this way: “The debt problem can get resolved one of two ways. We can do it now and do it thoughtfully, or the bond market can force us t do it, like Greece and Portugal.”

Moving to the policy substance, the first panel featured Paul Weinstein, PPI Senior Fellow, Diane Rogers of the Concord Coalition, Alan Viard of the American Enterprise Institute, and Howard Gleckman of the Tax Policy Center as moderator

Weinstein gave the quick version and backstory of the “modified zero plan,” which is the subject of a new PPI memo Weinstein co-authored. As the name might suggest, it began as the “zero plan,” which was the name the deficit commission gave the plan that reduced all tax expenditures to zero, saving $1.1 trillion in deductions, credits, and deferrals. The “modified zero plan” put back in only a few consensus tax expenditures, like the EITC, a mortgage deduction, a charitable contribution deduction.

“The rates are lower, it simplifies the tax code to fewer incentives and helps reduce tax avoidance and mistakes,” explained Weinstein. “Obviously the revenue increases get bigger and bigger over time. We estimate $800 billion over ten years.”

Rogers responded favorably to the plan. “I like the approach. There’s something for everyone to love,” she said. “Liberals should like it because it’s progressive and better than having to cut direct spending. Conservatives should like it because it’s an economically efficient way to raise revenues, and it doesn’t raise the size of government. It reduces the size of government.”

Viard gave it two cheers. He called it “Well-specified and thoughtful. This is one of the best approaches you can have with an income-based tax system that includes a separate corporate income tax.” Viard’s stated preference was for a value-added tax (VAT), though the subsequent discussion highlighted how difficult the politics of transitioning to a VAT would be. (Rogers put it this way: “we should work within the existing system first.”)

As the discussion shifted into the politics of policy, there was general agreement that tax reform terminology is confusing to the general public, and any discussion of tax expenditures is going to lead to thousands of interest groups begging to keep their favorites. And again, there was agreement that it needs to be comprehensive. “Tax reform can’t be done unless it’s in the context of deficit reduction,” said Weinstein. “You need to look at the whole apple.”

The second panel featured Leonard Burman of Syracuse University, Marc Goldwein, of the Committee for a Responsible Federal Budget, Joseph Minarik of the Committee for Economic Development and Derek Thompson of The Atlantic as moderator.

Goldwein began by reiterating the consensus: “The current income tax code is a mess. There is a consensus to broaden the base, and reduce the rates, and don’t keep tax expenditures that aren’t worth their cost.”

But how to do that? Burman argued that ending tax expenditures would require not referring to them anymore as tax expenditures. “We need to change the fiscal language. I sometimes call them IRS pork,” he said. “Part of the problem is mischaracterizing tax expenditures. Some people think that by putting new tax expenditures in the code you’re making government smaller, but what you’re doing is just spending more money and making taxes higher to achieve a given level of revenue.”

Minarik, a grizzled veteran of tax fights, highlighted the fact that the inside-the-halls negotiating in Congress is very different from the “outside” formulating that goes on at events like this, and reminded everyone that the simpler the solution, the easier it will be to pass. In that respect, he said, a fifth-best solution that’s simple and straightforward is better than a second-best solution that can lead to more complicated politics.

Next Up: Tax Reform

Posted on by The Progressive Policy Institute

Averting a government shutdown was only the first of a series of gates Congress must clear in this year’s downhill slalom of fiscal politics. Even sharper turns lie ahead – raising the debt ceiling, and approving next year’s federal budget.

In mid-May, the U.S. Treasury will bump up against the limit of its legal authority to borrow money to finance the federal government’s operations and service its debts. Republicans have served notice that they see the coming vote to raise the debt limit as another opportunity to extort deeper cuts in federal spending for next year.

The stakes in this game of fiscal chicken, however, are infinitely higher. Without a debt limit hike, the United States, for the first time in its history, would be forced to slash hundreds of billions in spending, or more likely, default on its obligations. Are GOP leaders really willing to let the Tea Party turn America into Argentina?

More likely they’re bluffing. Still, it wouldn’t be a bad thing if the debt ceiling vote becomes an action-forcing mechanism for serious negotiations to cut future deficits and stabilize the national debt. By “serious” I mean pragmatic and bipartisan, qualities you can only find nowadays by crossing the Capitol from the House to the Senate.

The House this week will probably pass some version of Budget Committee Chairman Paul Ryan’s proposed budget. It’s an ideological document, not a plausible point of departure for horse trading. By taking taxes off the table, Ryan panders to GOP taxophobia and ensures no Democratic support for his plan. And that plan is a distributional horror, concentrating all the pain of deficit reduction on middle- and lower-income Americans, while giving the most fortunate a free pass.

That’s why all eyes are on the “Gang of Six,” a bipartisan group of Senators who are trying to forge consensus around the Fiscal Commission’s deficit reduction plan. Its centerpiece is a call for a sweeping overhaul of tax expenditures, with the savings dedicated both to buying down individual and corporate tax rates and cutting federal deficits. PPI will co-host a public forum on tax reform tomorrow featuring Sens. Micheal Bennet (D-Colo.), Dan Coats (R-Ind.), and Ron Wyden (D-Ore.), as well as prominent budget and tax experts.

And President Obama, who seems to have gone on walkabout, returns to the fiscal fray Wednesday with a major speech on the need for cutting entitlement spending, especially for Medicare and Medicaid. The unsustainable growth of these huge “mandatory” programs – not the domestic spending targeted by House Republicans in the shutdown battle – is the real driver of federal spending and debt.

A decisive intervention at this stage by the President is crucial, since many Democrats are as deeply in denial about the need for entitlement reform as Republicans are when it comes to raising enough tax revenue to finance government. Many liberals, irate over the $38 billion in domestic spending cuts Democrats were forced to swallow to keep the government open, are demanding that Obama stop compromising and take up the ideological cudgels against Republicans. They want a full-throated defense of progressive government. But that requires action against entitlement spending, which is inexorably soaking up tax dollars and squeezing domestic programs that progressives rightly want to protect.

It also means showing the public that Democrats can responsibly manage the nation’s finances and restore fiscal discipline, even as they shield progressive priorities from chainsaw wielding Republicans. Obama’s challenge is to nudge, prod and cajole both sides toward a grand political bargain for shared sacrifice, built around tax and entitlement reform.

On the other hand, both Obama and Ryan have punted on the other big entitlement program, Social Security. It isn’t as big a problem as Medicare and Medicaid, but it must be on the table too because it’s adding to the nation’s overall debts. What’s more, it’s easily fixable. The Fiscal Commission pointed the way with sensible reforms, backed by Senate Democrats and Republicans, for raising the retirement age to match increases in longevity, and trimming future benefits for wealthy retirees.

The next step, however, should be tax reform. If the two parties can coalesce behind a plan similar to the Fiscal Commission’s, they could assure a balanced approach to deficit reduction, and build trust for the hard work of entitlement reform.