With Election Over, First Order Of Business Is $450B In Corporate Tax Breaks

The election is over. Congress is back in Washington. The first order of business after the election is to give big tax breaks to the corporations – $450 billion worth. Fortunately, President Obama is trying to do something about this.

Tax Extenders

Every year Congress renews a package of “temporary” corporate tax breaks. The renewal process is called “tax extenders” because they extend the term of these temporary breaks. So now the Congress is working on this year’s extenders package, except this time it wants to just make many of them (the ones that mostly give handouts to giant corporations and campaign donors) permanent. The Washington Post calls this process “a periodic bonanza for lobbyists.”

A few of the special tax breaks in the extenders package are really good and serve an important purpose. For example, part of the package is tax credits that provide incentives to invest in renewable energy. But most others are just giveaways and handouts to the already-wealthy, like depreciation tax breaks for people who own racehorses. (Yes, really.) Even worse, some of these are loopholes that actually encourage corporations to shift U.S. profits offshore into tax havens. (Yes, really.)

The good breaks are used to grease the wheels to slip these special favors through – as in “if you want to get those wind tax credits you’re going to have to pass a tax break for Mitt Romney’s racehorses.”

The media is reporting that Congress is near a deal on these extenders. The deal kills several “good” tax breaks that help working people and the middle class, like an expanded child tax credit for the working poor and expanded earned-income credit. The deal phases out the wind power tax credit after 2017.

Rep. Chris Van Hollen (D-Md.) pointed out that companies that renounce their U.S. citizenship would even get special breaks from this deal:

“The package would provide a permanent boon to large corporations, even those that renounce their U.S. citizenship and invert,” he said. “And adding insult to injury, the proposed deal chooses to leave behind working families and would make things harder for millions of Americans. …The overall package is simply unacceptable and adds more than $400 billion to the debt. We need to grow the middle class, not punish those working hard to get by while always giving preferences and priority treatment to big corporations who can hire high-priced, well-funded lobbyists.”

Not Paid For

These tax breaks are not “paid for” – they just add to the deficit. Remember how Congress rejected providing benefits for the long-term unemployed because they were not “paid for?” Congress won’t fix the country’s infrastructure because doing so is not “paid for.” Even disaster relief had to be “paid for!”

But none of these corporate tax breaks and loopholes being considered are “paid for” – but for some reason this isn’t a problem – this time. Because racehorses. Anyway, we’re only talking about $450 billion.

President Says He Will Veto

The President says he will veto this deal if it reaches his desk. Roll Call has the story, in, “Obama Would Veto Corporate Tax Cut Bill“:

President Barack Obama would veto an emerging $450 billion tax cut deal coming together in the Senate because it doesn’t do enough for the middle class, according to the White House.

“The President would veto the proposed deal because it would provide permanent tax breaks to help well-connected corporations while neglecting working families,” said Jen Friedman, deputy White House press secretary.

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

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2014 Election Lesson: Politics Is About Delivering For Your Constituents

Politics is about delivering for your constituents. Underneath it all, this election was a statement by people against an economy that is not working for them.

We’ve heard the story but here it is again.

  • Most people say the country is still in a recession as far as their own life is concerned.
  • All the gains of the recovery went to the top 10 percent.
  • Middle-class incomes are down.
  • The new jobs in the economy pay less than the jobs people lost.
  • People are not able to find good jobs. Lots of people have given up looking for work.
  • Student debt is at crushing levels.
  • Etc. Etc. Etc.

The Republican strategy since 2009 was to obstruct any and all efforts to make things better for people, and then campaign on people’s dissatisfaction with things not being better for them. It worked. You can blame Republicans all you want, but the fact is they kept Democrats from delivering, and Democrats paid the price for not delivering. Democrats failed to deliver a better economy and a better life for most people, and voters held them accountable. Staying home and not voting is just as much a form of accountability as voting against Democrats.

However, the core of this is about more than just passing some bills, raising the minimum wage, providing some relief to the long-term unemployed. This is about the need for much bigger, transformational changes in the who-gets-what of our economy. The bigger picture is about deciding who is our economy for, anyway? Republicans say it is for the already-wealthy few. If Democrats are going to deliver for the people they are supposed to deliver for, they are going to have to face up to the core of the problem and do something about it. Until then … well, we saw what happens.

Harold Meyerson brilliantly lays it out in “The Democrats’ Catastrophe and the Need For a New Agenda” over at The American Prospect,

… [T]he Democrats’ failure isn’t just the result of Republican negativity. It’s also intellectual and ideological. What, besides raising the minimum wage, do the Democrats propose to do about the shift in income from wages to profits, from labor to capital, from the 99 percent to the 1 percent? How do they deliver for an embattled middle class in a globalized, de-unionized, far-from-full-employment economy, where workers have lost the power they once wielded to ensure a more equitable distribution of income and wealth? What Democrat, besides Elizabeth Warren, campaigned this year to diminish the sway of the banks? Who proposed policies that would give workers the power to win more stable employment and higher incomes, not just at the level of the minimum wage but across the economic spectrum?

The economy is not going to get better for most Americans until some fundamental changes are made. It’s a structural problem. The system is rigged for the benefit of a very few and their giant corporations. This is what has to be fixed before a better life can be delivered to most people.

It’s the economic paradigm, stupid.

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

Democrats – There’s Still Time

“It is hard to understate the intensity of the response to the role of big money.”

Mike Lux, writing at The Huffington Post in “Four Weeks Out: What Will Be the Narrative of Election 2014?,” echoes something that we have been pounding on here at OurFuture.org: Democrats who campaign with a populist message will do better than Democrats who support the “centrist” – big corporate, Wall Street – positions.

In his post, Lux writes:

In a fascinating memo from Stan Greenberg and James Carville’s Democracy Corps and Page Gardner at Women’s Voices Women’s Vote Action Fund, they suggest that there is a modest but nonetheless quite significant trend toward Democratic candidates in the battleground Senate races. … They argue that a populist message especially focused on women voters’ top economic concerns and attacking the big money corporate interests that want to “make sure CEOs paid no higher taxes and that their loopholes are protected, while working men and women struggle” moves these razor-tight races an average of 4 crucial points, from -2 to +2.

… Democrats should be driving the story of the corrupting influence of big money in politics. As the DCorps memo states: “It is hard to understate the intensity of the response to the role of big money.”

I’m going to repeat that. Focusing “on women voters’ top economic concerns and attacking the big money corporate interests that want to “make sure CEOs paid no higher taxes and that their loopholes are protected, while working men and women struggle” moves these razor-tight races an average of 4 crucial points, from -2 to +2.”

How can Democrats say this? Lux suggests this:

The real-world narrative Democrats should tell is about the spending of the Koch brothers and their agenda, which they laid out at their secret meeting in June: no minimum wage, no Social Security, no public education or student loans, lower taxes for the wealthy, and less regulations. “Because we can make more in profit,” said their so-called “grand-strategist” Richard Fink.

Not a bad idea, considering that the Koch brothers network is driving much of the Republican party at this point, and certainly their money is driving much of the election.

Democrats, there is still time.

Here are a few posts to check out (Many of these, plus some other useful posts, are on our “Winning Issues for 2014″ page):

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

Republicans On Supreme Court Enable Ohio Voter Suppression

The Republican majority on the US Supreme Court by the usual 5-4 today overturned a lower court and blocked a week of early voting in Ohio.

A US Supreme Court just made it much harder for many people to vote — even impossible for some.

Ohio is one of the states that provides plenty of voting machines in affluent, mostly-white precincts while providing few in poorer, minority districts. The result is long, long, long, long lines at the polls in these district, discouraging or making it impossible for people to vote.

I’d call this one of the most blatant uses of raw power for partisan purposes since Bush v Gore, when the Court ruled 5-4 that counting the votes in Florida would “threaten irreparable harm to petitioner Bush, and to the country, by casting a cloud upon what he claims to be the legitimacy of his election.”

Other blatant abuses include letting corporations put money into elections, letting billionaires put as much as they want into elections and getting rid of the Voting Rights Act.

Where Is Hillary In This Crucial Midterm Election?

We have an election where Democrats are in trouble and could lose the Senate, and we have a “pre-candidate” with the supposedly highest polling numbers for any pre-candidate in history.

I smell a disconnect. Why isn’t the highly popular Hillary Clinton going from state to state campaigning for Senate Democrats, tirelessly doing everything she can to help Democrats keep the Senate?

I feel like Hillary is sitting on sidelines while we are fighting in the streets. As far as I can tell she is not even asking her extensive list of followers to do something, never mind showing up herself.

It better not be something like this. NY Times: Loss for Democrats in Midterm Elections Could Be Boon for Clinton.

Think of the damage Republicans will do for two years.

GOP Vows To Dismantle Or Shut Down Government If They Win Senate

A Politico story being promoted by the Drudge Report, “McConnell’s plan to shut down Obama,” makes it clear that if Republicans capture the Senate this fall they will, as the Drudge Report puts it, “play chicken” and shut down the government if President Obama vetoes their legislation to dismantle the government.

From the Politico interview, a threat,

“We’re going to pass spending bills, and they’re going to have a lot of restrictions on the activities of the bureaucracy,” McConnell said in an interview aboard his campaign bus traveling through Western Kentucky coal country. “That’s something he won’t like, but that will be done. I guarantee it.”

Who does McConnell say would be to blame if the President vetoes bills and Republicans then shut down the government rather than compromise? “McConnell said it would be up to the president to decide whether to veto spending bills that would keep the government open.” (In a related story this week, Islamic State in Iraq and Syria (ISIS) blamed the United States for making them behead an American journalist.)

Dismantle Or Shut Down

Republicans say that if they take the Senate they will pass legislation to dismantle the government. Jim Manley, former aide to Sen. Harry Reid explained in April at the WSJ, “It is very difficult to imagine that House Republicans’ takeaway from such an election would be to search again for moderation.”

Republicans can be expected to:

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Three Charts to Email to Your Right-Wing Brother-In-Law — Updated

Problem: Your right-wing brother-in-law is plugged into the FOX-Limbaugh lie machine, and keeps sending you emails about “Obama spending” and “Obama deficits” and how the “stimulus” just made things worse.

Solution: Here are three “reality-based” charts to send to him. These charts show what actually happened.

Spending

Bush_Obama_Spending_2014

Government spending increased dramatically under President Bush. It has not increased much under President Obama. This is just a fact.

Deficits

Bush_Obama_Deficit_2014

Note that this chart starts with Clinton’s last budget year for comparison.

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Sen. Elizabeth Warren Tells Netroots: “Push Back And Fight Hard”

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Senator Elizabeth Warren took her fight against a rigged system to the Netroots Nation gathering in Detroit Friday morning, saying that she is fighting back, and if We the People “push back and fight hard, we can win.”

Outside the hall, people were passing out “Ready for Warren” hats and signs. Inside the hall, the hats and signs were everywhere.

Fighting back against a rigged system was the theme of Warren’s rousing speech to Netroots. She began by briefly telling the story of how the about Consumer Financial Protection Bureau (CFPB) came to be. She had the idea for the agency, started talking about it, people told her it was a great idea and badly needed, but said to her, “Don’t do it because the biggest banks in the country will hate it and you will lose.”

She said they had that half right. “They spent more than a million dollars a day for more than a year lobbying against financial reforms. But we fought back and we won. We won because you and a zillion other people across the country got in the fight. We said we the people will have this agency and we won.”

And now we have the CFPB and it has already returned $5 billion to people that the big financial firms tried to steal, she said.

Warren’s message was that we should “never miss the central point of this story. The CFPB is proof of how democracy can work in the 21st century. It is proof that if we push back against the biggest, strongest, most ruthless lobbying effort in the country, if we push back and fight hard we can win. We can’t win every time and we are still trying to figure out how to make it all work. We don’t win every time but we’re learning to win. We will keep at it; we will fight and we will win that’s my message today.”

A Rigged System

Warren moved from there to what is happening in the country today. She said companies naturally look for profits. “But many of them have another plan – they use their money and their connections to try to capture Washington and rig the rules in their favor … That’s what we’re up against that’s what democracy is up against.”

She compared what happens to regular people with what happens to wealthy elites at the top, saying, “A kid gets caught with a few ounces of pot and goes to jail but a big bank launders drug money and no one gets arrested.”

Not Just Big Banks

Warren said, “But it’s not just the big banks.” She called on the audience to look at the choices the federal government makes, such as piling debt on students. Then she went straight after Republicans as the enablers of the rigging and corruption. “Instead of building a future, this country is bleeding tax loopholes. Billion-dollar corporations squeeze out deals with foreign countries, renounce their citizenship and pay no taxes. How does this happen? They all have lobbyists and Republican friends in Congress to protect every loophole and every privilege. The game is rigged and it isn’t right.”

Rigged Trade Deals

“Take a look at what happens with trade deals. Trade negotiations are like Christmas morning for the biggest corporations,” she said.

Warren described how corporations can bypass pollution and wage laws. “The corporations can get special gifts through trade negotiations they would never get from Congress,” she said, because trade negotiations are secret, held behind closed doors. The corporations are “all smacking their lips at the possibility of rigging the upcoming trade deals.”

“Stop and ask yourself, why are trade negotiations secret? I have had people involved in the process actually tell me, If people knew what was going on they would be opposed. My view is if people would be opposed then we shouldn’t have those trade deals.”

It’s Everywhere

Warren said the tilt in the playing field is everywhere. “When conservatives talk about opportunity, they mean opportunity for the rich to get richer and the powerful to get more powerful. They don’t mean do something about student loan debt or help someone unemployed to get back on their feet.”

The Fight

“Deep down, this is a fight over values. Conservatives and their powerful friends will continue to be guided by their internal motto ‘I got mine and the rest are on your own.’ ”

“My motto we all do better when we work together and invest in future. The country gets stronger when we invest in helping people succeed. … These are progressive values and these are the values we are willing to fight for.”

She then went into a refrain:

We believe that Wall Street needs stronger rules and tougher enforcement.
And we’re willing to fight for it.

We believe in science and that means that we have a responsibility to protect the planet.
And we will fight for it.

We believe the Internet shouldn’t be rigged to benefit big corporations.
And we will fight for it.

We believe no one should work full time and still live in poverty. That means raising the minimum wage.
And we will fight for it.

We believe that fast-food workers deserve a livable wage.
That means we will fight alongside them.

We believe students are entitled to get a good education without being crushed by debt.
And we will fight for it.

We believe after a lifetime of work people are entitled to retire with dignity. That means protect Social Security and Medicare.
And we will fight for it.

We believe – I can’t believe I have to say this in 2014 – in equal pay for equal work.
And we will fight for it.

We believe equal means equal and that true in the workplace and at home and everywhere.
And we will fight for it.

We believe immigration has made country strong and vibrant.
And we will fight for it.

And we believe that corporations are not people. (The crowd was on its feet making a lot of noise so I don’t know what she said next.)
And we will fight for it.

Right here in this room this is where it happens. This is 21st-century democracy. This is the future of America. This is where we decide that We the People will fight together and do that, we will fight together and we are going to win.

And the crowd went nuts.

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.