MORNING MESSAGE: "Fix The Debt" Shows Its True, Billionaire-Funded, Anti-Tax Colors
OurFuture.org's Richard Eskow: "'Fix the Debt' is allegedly an impromptu alliance of America’s largest CEOs. But it’ really the latest manifestation of a perenially right-wing, pro-billionaire, pro-corporate lobby – one created years ago by hedge fund manager and former Nixon Cabinet member Pete Peterson … Sen. Chuck Schumer got somebody’s blood boiling last week when he said that CEOs from 'Fix the Debt' supported a higher tax rate for the wealthy. That sent [spokesperson Maya] MacGuineas racing to the Internet to issue a statement: 'The Campaign to Fix the Debt does not have a position on raising tax rates.' … [But] Fix the Debt has a very clear position on tax rates for millionaires, billionaires, and corporations, right there in the group’s 'Core Principles' statement. It says that any fiscal plan should include 'comprehensive and pro-growth tax reform, which broadens the base [and] lowers rates…'"
Smart Talk: Hold The Line On Taxes
This week's edition of Smart Talk makes case for ending the Bush tax cuts for wealthy: "We need more jobs and lower deficits. And we suffer the most extreme income inequality since the Gilded Age in the 1890s. That is because the tax cuts of the last decade encouraged a greater concentration of wealth at the top 1 percent, while doing nothing to encourage job creation that would expand the middle class. We should be asking the wealthy to pay more in taxes, so we can invest in areas vital to our economy and, as people go back to work, reduce our deficits. The richest few who’ve done well in America need to do right by America."
Boehner Counter Targets Vulnerable
Republican plan goes after seniors, poor. W. Post: "…calls for slicing $600 billion from federal health programs, in part by increasing the Medicare eligibility age from 65 to 67, and saving $200 billion by applying a less generous measure of inflation to all federal programs, including Social Security benefits … Democrats said the proposed cuts to social safety-net programs would outweigh higher taxes. And they said Republicans have not made clear how they would raise the additional tax revenue without imposing new burdens on the middle class."
But the numbers are sketchy and the plan doesn't fully avert "austerity bomb," notes Bloomberg's Josh Barro: "The letter says Republicans want to cut $900 billion from mandatory spending and $300 billion from discretionary spending, but they don't say what or how they want to cut … they don't endorse specific loophole closures or propose a new rate structure … Republicans describe their proposals as a way to 'avert the fiscal cliff.' But this proposal would only partly delay the implementation of austerity measures … the $1.2 trillion in 'sequestration' spending cuts wouldn't be averted; instead they would apparently be replaced by other cuts to entitlement programs and discretionary spending."
The political question is, will public still blame Republicans for missing deadline? Politico: "Top Democratic and Republican officials are closely watching one question in the opinion polls: Who would you blame if Congress and the White House fail to reach a deal? So far, Republicans are taking the blame. By putting forward more details, Boehner can now say Republicans have a plan … GOP leaders are already positioning themselves as offering a number of proposals that are unpopular, but necessary."
Boehner knows he's in a weaker position, says W. Post's Ezra Klein: "…Republicans are in a far weaker position than they were in 2011. And Boehner knows it. His newest offer is proof. In 2011, it was Obama chasing after Boehner with compromise proposals. In 2012, it’s the reverse."
Public Sniping, Private Dealing
Obama won't formally counter Boehner offer. CNN: "Senior administration officials said the offer House Speaker John Boehner submitted to the White House on Monday wasn't serious enough to merit a counter-proposal from the administration. So the president's team plans to wait for the GOP to come around on the idea of raising tax rates or let the nation go over the fiscal cliff."
But private discussions may be moving toward compromise. HuffPost: "A top administration official agreed that Monday represented a 'measure of progress,' adding the belief that the president has significant leverage to move the House GOP off of its proposal. Similarly, a top House Republican aide said it is 'definitely' progress that the White House and GOP leaders have now put forward opening bids, saying the administration still has retreat from its 'absurd and ridiculous' starting point. 'Everybody in Washington knows there's certain choreographed steps that you have to go through when you have to get a deal, and part of that is the public admonitions of the other side,' said the GOP aide. 'But we don't want to take us off the cliff. We do want a deal.'"
Rubin, Summers and other former Dem WH officials proposed $1.8T in new revenue. NYT: " …the group calls for letting the top marginal income-tax rate return to the Clinton-era 39.6 percent … But the higher rate would apply on income for individuals and couples of $422,000 and up … The Democratic group also would limit deductions for high-income taxpayers, but not by as much as the Simpson-Bowles fiscal plan … all new revenue would go to debt reduction instead of using some for lower tax rates as Republicans demand … The plan would set the top tax rate for capital gains, now 15 percent, at 28 percent … Dividends, also currently taxed at a maximum rate of 15 percent, would be taxed as ordinary income as they had been historically … The plan would also repeal the 'carried interest' break …"
GOP's Right Hand Slaps Far Right Hand
Speaker punishes rogue members with committee reassignments. The Hill: "Reps. David Schweikert (R-Ariz.) and Walter Jones (R-N.C.) lost spots on the House Financial Services Committee, which is widely seen as a fundraising power for its oversight of the deep-pocketed financial sector. Reps. Justin Amash (R-Mich.) and Tim Huelskamp (R-Kan.) lost spots on the House Budget Committee, according to an aide … Huelskamp cited a video he recently posted to his congressional website urging Republicans to adhere to the Taxpayer Protection Pledge advocated by Grover Norquist …"
250 conservative activists launch initiative to turn GOP into pro-immigration party. W. Post: "… more than 250 activists plan to come to Washington for a debut of sorts, hosting a news conference and strategy session before heading to Capitol Hill for meetings with key lawmakers. Group leaders say they hope to bring a fresh, outsiders’ perspective to the debate, with testimonials from rural and suburban sheriffs, local preachers, even the director of the Idaho Dairymen’s Association. Rather than dwelling on the politics of the issue, these conservative leaders plan to cast the issue based on how they see it in their communities — in moral and economic terms."
