Sunday, July 3, 2011

DIOGENES, BRING YOUR LANTERN TO WASHINGTON

The cynical Greek philosopher Diogenes supposedly walked the streets of Athens carrying a lantern during the daytime. When asked why, he said he was looking for an honest man. If Diogenes walked the streets of Washington today, he would despair of finding an honest man or woman, in this case meaning a politician, and might consider using his lantern not for light but for self-immolation.

The current political battle over increasing the federal debt ceiling above $14.3 trillion to avoid default on U.S. debt obligations is obscene. The August 2 deadline for such a default is now less than a month away and the only movement, as opposed to progress, displayed to the public is political posturing. The President, with a re-election stake in the brawl, attacks Congress and says the lawmakers should simply get on with it, do their job, and work toward a bipartisan agreement. As envisioned by the President and many of his congressional supporters, such an agreement might involve $1-2 trillion in reduced spending and perhaps about $400 billion in increased revenue. The GOP reply is read from what is engraved on the party's ideological tablets -- thou shalt not raise taxes. To House Speaker and Senate Minority Leader McConnell it's our way or no way.

For both Boehner and McConnell, who MAY be personally supportive of some carefully disguised revenue increases, the problem is that their party has moved so far to the right that they can't muster the votes needed to support any plan that would increase revenues which to them means raising taxes. In short, they will not jeopardize their congressional leadership positions by stepping forward, taking a risk, and showing some political leadership by changing minds to get the necessary GOP votes to add to Democratic votes supporting a cut spending/increase revenues package. But instead of political courage we get statements reinforcing the intransigence of the far right lawmakers. What's the leadership in just saying "no"?

As a side note on the hypocrisy of the situation, GOP Senator Corker of Tennessee scoffed at the proposals of Democrats to end a variety of corporate tax benefits saying, "If you look at the kind of things that are being thrown out, they go almost nowhere at ending the problem." Referring , for example, to ending the tax write offs for corporate jets, " I mean you've got to be kidding me. We're talking about trillions and trillions of dollars, so these are all poll-tested things." Guess he forgot , for example, Democratic proposals to end tens of billions of dollars in tax benefits to the oil industry, and the billions going to Wall Street hedge fund managers who are grossly undertaxed.. He also forgot an old saying, a billion here and a billion there soon adds up to real money. Guess he prefers to look for every nickel and dime to cut on the spending side.

Leadership generally is not exactly a wonder to behold in this very partisan debt ceiling issue. President Obama uses his bully pulpit to put himself squarely on the side of his political angels -- that is, his own Democratic voting base plus, and hopefully, independent middle class voters. But he is certainly on a firmer leadership ground than the Republicans. Through Vice President Biden's weeks-long, but now collapsed, negotiations with a small group of bipartisan lawmakers there was administration leadership for getting the job done. That is, until the Republicans walked out of the negotiations saying flatly "no" to revenue increases which in any form, such as closing tax loopholes for the upper income earners and corporations, the GOP calls tax increases.

Then Obama had to publicly embarrass the Senate, noting that while efforts to reach agreement seem stalemated, the Senate was taking a week off for the July 4 holiday, a holiday for which most Americans get one day off from work. Senate Leader Reid, a person not easily embarrassed, quickly called off the recess. The House had already taken its weeklong holiday and has another scheduled for July 18-24, which as far as I can ascertain must be related to the waning of a full moon. It would come as no surprise if Boehner canceled that holiday. Put this all together and there is no evidence of any winners for the Profile in Courage award.

At the same time one has to wonder what lawmakers will do while they stay in town. The answer is, probably little. Any agreements to be made right now on the debt ceiling will be made by Obama and the congressional leadership, not the rank and file. But appearances do count and going home to campaign and raise money at this time does seem a bit insensitive. It would be a time for the so-called GOP leadership to engage in changing some hearts and minds, but the more likely use of the time will be for floor speeches, sound bites uttered while seeming to be in a rush, and cable news appearances to harden stands, not soften them.

So Diogenes, think it over carefully. Given the nature of our politics perhaps the search for an honest political person in Washington can be lowered to finding just a modicum of non-politicized leadership. Thus, our much lower expectations. And, besides, we can't afford to lose you or Don Quixote who carries on his own quest by tilting with windmills. Maybe he also should come to Washington, the city of many windmills.

6 comments:

  1. The GOP should take a page from New Jersey democrats who voted to support the reworking of the pensions. It most certainly was not popular to many whose pensions would be affected but they voted in a way that was for the good of the state, the same way that the GOP should vote to do what is best for the country as a whole. Granted the Democrats need to step up and do some serious spending reductions as nothing is going to help in the long run if spending is not curtailed. Kind of like sticking a finger in the hole in the dam. I am a little tired of hearing anyone say that a million dollars saved here or there is nothing, just a drop in the bucket. I think that it all adds up and it makes me a little angry that the "piddly" amounts to Washington are so discussed when that kind of money would go a long way to help people in the towns and buroughs of this country who cannot afford to eat. A million dollars would feed a lot of families and is not anything to be scoffed at.

    Back to the GOP. They need to concede. Okay they have a strong no tax increase stance but for crying out loud get rid of some of these ridiculous tax loopholes for super wealthy corporate jet owners, Wallstreeters, and corporations. It is so obvious the special interests and sucking up that goes on in some of the tax loopholes. It becomes pretty obvious whose pockets the politicians have their hands in for election money.

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  2. Jeffrey

    I believe the GOP is more interested in taking its lessons from Wisconsin where the Republican Governor and legislature simply want to punish the public employee unions rather than adjust the pension system to ease the budget problems. Likewise in Ohio.

    One of the problems in trying to analyze proposed spending cuts is that the public is given little detail on what was even tentatively agreed to in the Biden talks. We are told that the cuts include such things as subsidies to individual farmers, student aid, and a host of other discretionary programs but we don't know much more than the citation of a few programs. And we don't know anything that may have been tentatively agreed to about the defense budget. We do know that the cuts would be particularly painful for some of the Democratic constituencies. In any case the Democrats appear to be agreeable to huge spending cuts.

    But take a look at the other side of the coin--revenue increases. We know nothing because there is nothing. The GOP simply said "no" to revenue increases and walked out of the negotiations. They automatically label any proposed revenue increases as tax increases even though what is proposed by Democrats for change are tax loopholes for the wealthy. These include writeoffs for corporate jets, large tax benefits for big oil and gas, and favorable tax treatment on income of hedge fund managers whose income is now treated as capital gains (15%) as opposed to ordinary income (up to 35%). The Senate did vote to end the $6 billion tax benefit for ethanol producers but that was outside of the Biden talks and the House has taken no action on that.

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  3. I think there is a distinct difference between tax hikes and closing some of those indefensible loopholes that only the most wealthiest get to take advantage of. We're not going to make any progress on reducing the deficit with just spending cuts. We have to have some kind of revenue increase. I really think the primary stab at the deficit needs to be spending cuts though. We can't keep expecting people to pay more and more in taxes to pay for the government's out of control spending. Why should yacht owners get to deduct interest payments on their mortgage if they sleep on it for 14 days in an entire year? If someone can afford a yacht, they can afford to pay the taxes on it. And lets get rid of these tax subsidies to the oil companies.

    Just in case, I'm going to buy Rosetta Stone and learn Chinese.

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  4. Carole

    There may be some hope in what you say. The trick will be to let the GOP pretend that they are engaging in tax "reform" rather than a tax increase. The only glitch to that possibility is that many Republicans, including the congressional leadership, are committed to the pledge that if any taxes are increased through "reform" or any other guise, they must be offset by tax decreases elsewhere.

    We absolutely have to have some increase in revenues through the tax code, whatever such increases may be called. There is no question that there will be major spending cuts. The Democrats are agreed on that, even though it hurts many of their traditional constituencies. The problem is the Republicans.

    Studying Chinese sounds like a good backup strategy. Sometime it may help you to read our new currency.

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  5. In a positive light, maybe Washington, as the city of windmills, could supply the country's energy needs with wind power.

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  6. dpchuck

    That is definitely a positive spin, but assume that any power generated would have a favored tax rate.

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