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The Deal Is Better Than It Looks |
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Thursday, 03 January 2013 14:48 |
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Dionne writes: "A better deal was available weeks ago. But in the end, some very important and positive things happened."
President Barack Obama and Speaker of the House John Boehner open 'fiscal cliff' negotiations in November. (photo: Olivier Douliery/Pool)

The Deal Is Better Than It Looks
By E.J. Dionne, The National Memo
03 January 13
o be deemed a serious analyst at the moment seems to require a lot of hand-wringing and sneering over how awful Congress looked over the last few days as it rushed a fiscal cliff deal into law.
So permit me to burn my membership card in the League of Commentators and Pundits.
Of course, there was much wrong about how Congress, particularly the House of Representatives, dealt with the best-known deadline in recent political history. A better deal was available weeks ago. But in the end, some very important and positive things happened.
Democracy, in its messy way, worked. An election had a real impact on public policy, moving it in a more progressive direction. Thus, for the first time since 1990, a significant number of Republicans voted to raise taxes - and they raised them most on the very rich. House Speaker John Boehner allowed a bill to become law on a vote in which far more Democrats (172) than Republicans (85) said "aye." The old rule that Republicans would only allow floor action on bills that could pass with GOP votes was swept away, at least this time.
The cliff deal made our tax code more progressive. The top income tax rate is back up to 39.6 percent. Capital gains taxes, cut repeatedly since the 1970s, were raised. Consider: The provisions enacted Tuesday night combined with the tax hike in the Affordable Care Act mean that capital gains taxes will now be 18.8 percent for couples with annual incomes of more than $250,000 and 23.8 percent for couples earning over $450,000.
True, Democrats caved in by failing to tax dividends as ordinary income, as they used to be. Capital gains should also be taxed as ordinary income, or, at the least, at around 30 percent. But is this progress? The answer is yes.
There are other pieces of good news in the bill, including an extension of unemployment benefits and the various refundable tax credits that are especially helpful to lower-income people. The estate tax rises to 40 percent on fortunes of more than $5 million. Yes, it's still too low. But at the end of George W. Bush's term, we were looking at a complete repeal of the estate tax. Isn't 40 percent better than zero?
It is a real shame that Congress didn't include more stimulus measures, especially an extension of the payroll tax holiday for another year, as President Obama originally requested. This would have helped the overall economy and hard-pressed families. But it was blocked not only by conservatives but also by liberals worried about the financing of Social Security. This was a mistake.
Nonetheless, the broadly progressive thrust of the accord is the only way to explain why Boehner had to face down a rebellion from his right, and why a substantial majority of his Republican colleagues voted against it.
Many liberals are unhappy for the same reasons that Republicans who backed the bill are hopeful. Both groups assume that (1) Obama has now lost all his leverage; (2) he will fold during the next round of negotiations as a vote on the debt ceiling approaches; (3) this was the last chance to win tax increases; and (4) the deal contains a lot less new revenue (roughly $620 billion over a decade) than it should have.
There's no question that significantly more revenue will be needed to avoid steep cuts in social insurance programs. And it's useful that many on the left have signaled their dissatisfaction because this will expand their influence (and Obama's negotiating room) in the coming months.
But we should at least consider the possibility that this week's Midnight Madness was actually a first step down a better road. This will be true if Obama hangs as tough as he now says he will; if he insists on more revenue in the next round of discussions; and if he immediately begins mobilizing business leaders to force Republicans off a strategy that would use threats to block a debt-ceiling increase to extract spending cuts. Real patriots do not risk wrecking the economy to win a political fight.
Obama has to prove wrong both his skeptical allies and foes inclined to underestimate him. He needs to move the discussion away from a green-eyeshade debate over budgets and foster a larger conversation over what it will take to restore broadly shared economic growth. His presidency really does depend on how he handles the next two months.

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FOCUS | Obama's Baleful Continuity With Bush Era |
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Thursday, 03 January 2013 13:03 |
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Goodman writes: "A number of bills were signed into law by President Barack Obama that renew some of the worst excesses of the Bush years."
Goodman: 'Just over a year ago, President Obama signed the National Defense Authorization Act for 2012.' (photo: Chip Somodevilla/Getty Images)

Obama's Baleful Continuity With Bush Era
By Amy Goodman, Guardian UK
03 January 12
Unnoticed amid the fiscal cliff histrionics, the president signed into law further powers for the state to surveil and detain citizens.
mid the White House and congressional theatrics surrounding the so-called fiscal cliff negotiations, a number of bills were signed into law by President Barack Obama that renew some of the worst excesses of the Bush years.
Largely ignored by the media, these laws further entrench odious policies like indefinite detention, warrantless wiretapping and the continued operation of the US gulag in Guantánamo. The deal to avert the fiscal cliff itself increases the likelihood that President Obama may yet scuttle an unprecedented cut in the Pentagon's bloated budget. It's not such a happy new year, after all.
On Sunday 30 December, the White House press secretary's office issued a terse release stating:
"The president signed into law HR 5949, the 'Fisa Amendments Act Reauthorization Act of 2012', which provides a five-year extension of Title VII of the Foreign Intelligence Surveillance Act."
With that, the government's controversial surveillance powers were renewed until the end of 2017. The American Civil Liberties Union called it the "heartbreak of another Senate vote in favor of dragnet collection of Americans' communications".
A champion of progressive causes in the US House of Representatives, Dennis Kucinich of Ohio, is leaving Congress after 16 years, following the elimination of his Cleveland district due to Republican-controlled redistricting, in the wake of the 2010 census. Days before his departure from Congress, I asked him about the Fisa reauthorization. Kucinich replied:
"The Fisa bill is just one example. We're entering into a brave new world, which involves not only the government apparatus being able to look in massive databases and extract information to try to profile people who might be considered threats to the prevailing status quo.
"But we also are looking at drones, which are increasingly miniaturized, that will give the governments, at every level, more of an ability to look into people's private conduct. This is a nightmare."
Add to that, the nightmare of indefinite detention without charge or trial. Just over a year ago, President Obama signed the National Defense Authorization Act for 2012, also known as the annual NDAA. That 2012 version of the sprawling NDAA contained a controversial new provision granting the US military far-reaching powers to indefinitely detain people – not only those identified as enemies on a battlefield, but others perceived by the military as having "supported" the enemy.
Chris Hedges, a former foreign correspondent for the New York Times who was part of a team of reporters awarded a Pulitzer Prize in 2002 for the paper's coverage of global terrorism, sued the Obama administration because, in his reporting, he regularly encounters those whom the US government defines as terrorists:
"I, as a foreign correspondent, had had direct contact with 17 organizations that are on that list, from al-Qaida to Hamas to Hezbollah to the PKK, and there's no provision within that particular section [of the NDAA] to exempt journalists."
A federal judge agreed and ordered a stay, preventing that section of the NDAA from being enforced. The Obama administration appealed, and the case is still before the US court of appeals. In the meantime, the court-imposed stay was overturned. With the renewal of the NDAA for 2013, with the indefinite detention provisions intact, Hedges told me:
"The appellate court is all that separates us and a state that is no different than any other military dictatorship."
Couched in the same 2013 NDAA is a section prohibiting the Obama administration from spending any of the bill's $633bn in construction or alteration of any facility for the transfer of prisoners from Guantánamo Bay. This effectively ties President Obama's hands, despite his 2009 executive order to close the prison complex, and his more recent reiteration of the goal.
Of 166 prisoners still held there, 86 have been cleared for release, but remain imprisoned nevertheless. The legal group Human Rights First has just issued a blueprint, detailing how President Obama could close Guantánamo, despite congressional roadblocks.
The president's second term will publicly begin on 21 January, the hard fought-for holiday celebrating Martin Luther King Jr's birthday. King said:
The arc of the moral universe is long, but it bends toward justice.
If President Obama aspires to do more than perpetuate an unjust status quo, he must start now.
Denis Moynihan contributed research to this column

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FOCUS | GOP Clown Car Crashes, Again |
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Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=14128"><span class="small">Joe Conason, The National Memo</span></a>
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Thursday, 03 January 2013 11:29 |
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Conason writes: "Observing the Congressional Republicans repeatedly stumble in and out of their caucus clown car, blowing loud kazoos and muttering angry threats, should be painful, embarrassing, and highly instructive to any American voter with the patience to watch."
House Speaker John Boehner. (photo: unknown)

GOP Clown Car Crashes, Again
By Joe Conason, The National Memo
03 January 12
bserving the Congressional Republicans repeatedly stumble in and out of their caucus clown car, blowing loud kazoos and muttering angry threats, should be painful, embarrassing, and highly instructive to any American voter with the patience to watch. When their latest performance concluded late Tuesday night with a 257 to 187 vote passing the stopgap fiscal deal negotiated by the Senate and the White House, an unavoidable question lingered: What is wrong with those people?
The simple explanation is that the House of Representatives has increasingly been dominated over the past two decades by a coterie of tantrum-prone extremists, who lack the probity and steadiness required for democratic self-government. Their diminished capacity is reflected in the low quality of leadership they have chosen during this long twilight, from Newt Gingrich, Dennis Hastert and Tom DeLay to John Boehner and Eric Cantor, even as their politics have grown more and more extreme.
Under the stress of their incoherence, the Republican caucus is unable to escape one humiliating mess after another. The damage they routinely inflict on the country's economy and future is reaching incalculable levels - and is almost certain to grow worse when they again hold the debt ceiling hostage next month.
By the end of the current episode - which is only an interlude rather than a true resolution - the top Republicans in the House had split, with Boehner casting a rare vote in favor, and House Budget Committee chair and former vice-presidential nominee Paul Ryan (R-WI) voting yes, along with 84 fellow Republicans and almost all of the House Democrats, while House Majority Leader and would-be Speaker Eric Cantor (R-VA) voted no. On the floor, House Ways and Means chair Dave Camp (R-MI) tried to claim that this bill is "the largest tax cut in history," although he might have difficulty explaining why more than 150 Republicans voted against it.
The Republicans' incompetence in government is inextricably connected with their ideological extremism, as the latest events demonstrate. Hogtied by the craziness of the ultra-right Tea Party faction, the House GOP leadership cannot even cooperate with other Republicans in the Senate - who overwhelmingly voted for the "cliff" deal negotiated with Vice President Joe Biden - let alone conduct serious discussions with the White House.
Having refused to support the leadership's "Plan B" scheme to raise taxes only on households making $1 million or more annually - despite confident claims by Boehner and Cantor that they had counted the necessary votes - the Republican caucus made both themselves and their leaders look ridiculous. It was a dreadful right-wing plan, but still much too liberal for too many of them. Tacitly acknowledging that he could no longer manage his restless wingnuts, Boehner insisted that the Senate and White House should come up with an emergency measure on their own.
Yet when the Senate leadership, including Minority Leader Mitch McConnell, offered a bill negotiated with Vice President Joe Biden - just as Boehner had urged - the House Republicans descended into crisis. Their leaders couldn't endorse the bill, fearing that the GOP caucus crazies would defenestrate them. But they could hardly employ their usual partisan tactics to keep the bill off the House floor, after the Senate had passed it by a vote of 89-8, with only five Republican defections. They might have noticed as well their declining numbers in every public poll, with the latest Republican-leaning Rasmussen survey showing a Democratic lead in the generic congressional contest of 11 points and climbing.
Astonishingly, they nevertheless wasted several hours debating whether to amend the bill with new spending cuts and then send it back to the Senate, where leaders of both parties would have surely and justly rejected such tardy handiwork. Consistent only in their ineptitude, the House Republicans were reportedly unable to agree among themselves on exactly how to change the bill, in any case.
Finally, they folded - or at least their leaders did - and proclaimed that they were girding themselves for the battles to come over the budget and the debt ceiling, which have now been postponed for another month or so.
The deal itself is not a bad one, from the Democratic perspective, raising significant new revenues from the wealthiest taxpayers and excluding any "grand bargain" (or raw deal) to weaken Medicare, Social Security and Medicaid. Its specific provisions are still far too generous to the highest-income taxpayers and will not, in the long run, raise enough revenue to sustain decent government, rebuild the nation's infrastructure, and prepare for the future.
The struggle over what government should do and how to pay for its functions continues, almost immediately. And perhaps soon the president and his party will explain, without hesitation, what this brief tumble over the "cliff" has shown us, and what we may hope they have finally learned: That there is no negotiating partner among the House Republicans, who must be defeated if progress is to be possible.

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A Confederacy of Madmen |
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Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=5903"><span class="small">Michael Tomasky, The Daily Beast</span></a>
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Wednesday, 02 January 2013 14:24 |
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Tomasky writes: "The Republicans control the House, and they have enough to block in the Senate. Where I come from, those are cards, and serious ones."
President Barack Obama speaks during a campaign rally in Des Moines, Iowa. (photo: AP)

A Confederacy of Madmen
Michael Tomasky, The Daily Beast
02 January 13
The fiscal-cliff impasse had its roots in - where else? - the old South, with its lunatic blend of obstructionism and greed at the public trough, writes Michael Tomasky.
hile most liberals were stewing at Barack Obama yesterday for his “capitulation” on tax rates, I confess that I was feeling philosophical about it, and even mildly defensive of him. He is negotiating with madmen, and you can’t negotiate with madmen, because they’re, well, mad. I also spent part of yesterday morning re-reading a little history and reminding myself that rascality like this fiscal-cliff business has been going on since the beginning of the republic. So now I’d like to remind you. It’s always the reactionaries holding up the progressives - and usually, needless to say, it’s been the South holding up the North - and always with the same demagogic and dishonest arguments about a tyrannical central government. We’ll never be rid of these paranoid bloviators, and if no other president could stop them I don’t really see why Obama ought to be able to.
This history of legislative hostage-taking begins with the odious three-fifths compromise, which counted slaves as three-fifths of a person for census purposes. That much I trust you know. What you may not know is that the Southern states, backers of the three-fifths rule in this case in order to get greater representation in the House of Representatives, had opposed a different three-fifths rule earlier, back in the Articles of Confederation days. Then, three-fifths of all slaves were going to be counted for purposes of deciding how much federal tax each state owed.
In other words, the South had said, count slaves as part human for the purposes of taxation? Nevah! Count them as part-human for the purposes of representation, however - well, Yankee, now you’re talking. The South is still doing exactly the same thing today, never paying its freight, its cornpone pols inveighing against the evil government while the Southern states are collectively the most dependent on Washington largesse of all states and regions. The hypocrisy has a long pedigree.
Just three years after the three-fifths compromise we had the so-called Great Compromise of 1790, or the “dinner table bargain” mediated by Jefferson between Hamilton and Madison. Hamilton wanted the federal government to assume the states’ debts and establish public credit. Madison was dead set against it, partly on the grounds that his state of Virginia would be a big loser in any such assumption. This was true, but it also put Madison squarely against progress: against the government protecting investment capitalism, against the industrial revolution itself.
Fortunately, Jefferson brought them together, and equally fortunately, Madison was no John Boehner. He agreed not to support but also not to openly oppose Hamilton’s bill, on the condition that a new nation’s capital were built in some agrarian spot, which turned out to be a certain parcel along the Potomac River between Maryland and Virginia.
This one sort of worked out, because the men involved were actual statesmen, and each side got something meaningful. But usually, American history is the history of positive developments being prevented from happening, or at least perverted, because of hostagelike demands made by the reactionaries.
Thus could California become a state in 1850, and a free one, but only provided that the Northern states would accept a much strengthened Fugitive Slave Act, which non-slave states had tried to challenge (a reactionary Supreme Court ruled with the South in 1842), and provided that the federal government would assume Texas’s crushing debt. Thus did we get Bleeding Kansas, the little precursor to the Civil War. And so on and so on.
Well, you might say, the North got its revenge with the Civil War and Reconstruction. But Southern and agrarian-reactionary elements continued to find ways to bottle up progress well into the 20th century - somehow managing to persuade northerners that they somehow had the right to chair the major congressional committees, where they made sure (except during the Depression) that very little progressive social legislation could see the light of day. This finally changed in the ’60s and ’70s for a few brief shining moments, when most of the legislation that attempts to make ours a more equitable society was passed (and most of which, contrary to right-wing mythology, was quite successful). Then came Ronald Reagan and eventually Newt Gingrich, the interests of the agrarian reactionaries now cleverly fused to those of the corporate titans ready to spend billions in common cause against progress.
What unites all these movements are pretty much the same motives that drive today’s right wing: hatred of government and taxation, constant (and almost always baseless) fear that a central authority is going to rob their liberty, and so on. They are bound together also by a kind of psychology and mindset, a conviction that they represent the good simple folk while their opponents speak for the shifty and the shiftless.
Mitch McConnell may have cut a deal with Joe Biden. But don’t forget, even though he agreed to something, and even though it went through the Senate, now it goes to the House, where all these historic resentments fester and boil. They are not now limited to the South, but the region remains their locus (think of it this way: if those 11 states of the Confederacy somehow weren’t around, we’d obviously be having no such fights).
So I’m feeling for Obama. A number of presidents have had to deal with this kind of behavior, and most haven’t done it very well. If the House will pass today the deal Obama and Joe Biden worked out last night with the Senate - higher tax rates at $400,000 and up, a higher estate tax rate, an extension of unemployment benefits, and a delay in the sequester - he will have done all right. Liberals who think he should just stand tough because he “holds all the cards” aren’t recognizing two important things.
First, he simply doesn’t hold all the cards. The Republicans control the House, and they have enough to block in the Senate. Where I come from, those are cards, and serious ones. Second, they aren’t remembering that his opponents draw on and are part of this nation’s long and often tragic history of people who represent an obsolescing minority viewpoint but do so all the more tenaciously precisely because they secretly know the viewpoint to be both of those things. We will never be rid of them. Obama is having to cross swords with a particularly intense concentration of the type, and right now, he’s doing alright.

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