ThinkProgress Logo

Politics

Voinovich Says He Wants To ‘Strangle’ And ‘Kill’ Big Banks After Voting Against Regulating Or Breaking Them Up

voino1 MSNBC.com has posted a set of stories called “The Exit Interviews,” where the site has interviewed nine retiring senators on a full range of issues. During the exit interview with Sen. George Voinovich (R-OH), the senator explained his recent decision to break from his party and support the small business bill written by Senate Democrats. He told the interviewer, “I hate the banks. If I could strangle the banks today, I would, the big banks. I am so upset with them I could kill them” because of the lack of money flowing to consumers:

And you notice in my votes, nobody knows what I’m going to do around here. They don’t. I mean, the recent thing on this bill dealing with loans for small businesses. I hate the banks. If I could strangle the banks today, I would, the big banks. I am so upset with them I could kill them because of what they’re doing in terms of not making money available. So somehow we’ve got to get some money out there to some people that are worthy of getting it.

While Voinovich may be willing to use strong language against the nation’s biggest banks, during his Senate career he repeatedly failed to put his money where his mouth is. In 1999, as the big banks and their lobbyists pushed for a massive deregulation of their industry, Voinovich joined with the majority of the Senate in voting to effectively set the stage for the financial crisis of 2008.

When time came to clean up Wall Street’s mess and place new regulations on the industry, Voinovich decided to stand with the banks instead of the American people. He voted against the Brown-Kauffman amendment that would’ve broken up the nation’s largest banks, successfully killing it. He later proceeded to vote against the final bill, complaining that the “new consumer protection bureau created by [the] bill is too wide in its regulatory scope.”

Voinovich spent his entire Senate career deregulating the nation’s largest banks and shielding from further regulation. If that’s hating them, it would be difficult to imagine what he would see as loving them.

Justice

Senate To Hold Vote On Defense Measure Next Week: Why Supporters Of DADT Should Vote For Cloture

Earlier tonight, the Washington Blade’s Chris Johnson reported that Senate Majority Leader Harry Reid (D-NV) will in fact schedule a vote on the Defense Authorization Bill for the week of September 20th, ending speculation that the Senate would eschew the measure to better distinguish themselves from Republicans on tax policy. Johnson’s sources are saying that “Senate leadership is anticipating the Senate won’t have unanimous consent to bring the legislation to the floor, so 60 votes will be necessary to end a filibuster and move forward with debate on the bill. “We are going to take it the floor next week to see where the votes are,” the aide said.

LGBT activists expect to prevail on the floor, pointing to Sens Jim Webb’s (D-VA) and Scott Brown’s (R-MA) support for the overall bill and Sen. Susan Collins’ (R-ME) vote in favor the DADT measure in committee. Sixty votes will also be needed to strike the amendment from the authorization or change its condition. As it stands, the DADT repeal measure would require President Obama, Secretary of Defense Robert Gates and Joint Chiefs of Staff Chairman Mike Mullen to certify that repeal would not undermine military readiness or cohesion before the policy can be eliminated.

Earlier today, the Palm Center’s Chris Niff suggested that even the opponents of the measure — like Sen. John McCain (R-AZ) who was objecting to bringing the Defense Authorization Bill to the floor as of this morning — should (by their very own logic) allow the Senate to vote on the measure. As Neff writes, Congressional action would move issue out the courts (who have been rather hostile to the policy) and bring it back to Congress:

In short, Senator McCain is taking repeal of ‘don’t ask, don’t tell’ out of the hands of the Department of Defense and Congress and placing it in the hands of a judge whose ruling he opposes. Part of his objection is his concern that the Service Chiefs in the Pentagon have not been consulted more. But just last month, the lead objector Marine Corps Commandant General Conway stated that despite any opposition he might have, the Marine Corps would lead all of the Services in implementation of openly gay service. [...]

Senator McCain has a choice: to scuttle the legislative process and block military input, thus handing this decision to Judge Phillips, or to allow the Senate to deliberate on this issue in the light of day.

Given McCain’s rather moderate past positions on DADT, his ongoing opposition to the entire defense measure is surprising — especially to those who believed that he would move back towards the middle after his victory over Tea Party Candidate J.D. Hayworth. He still has two weeks to do just that.

Economy

Florida’s Incoming Republican Speaker Casts Doubt On Scott’s Plan To Cut Spending

Florida’s Republican gubernatorial nominee Rick Scott — when he’s not spending an inordinate amount of time discussing policies over which he’d have no control as governor — likes to tout his economic growth plan, which involves large tax cuts and supposedly large spending reductions.

You reduce every tax, every fee you can,” Scott has said, adding that such tax cuts can be paid for by cutting waste in government. “You prioritize, what should I spend my money on? Does that program work? Should I spend money there like I have before? There’s so many things we waste money on in this state,” he said.

In fact, Scott claims that he can cut more $500 million in government spending by simply implementing “operational efficiency savings.” However, the incoming Florida Speaker of the House, Dean Cannon (R), has warned members of his party against such optimistic assessments about finding waste in Florida’s government:

“There is no secret stash of money, no hidden account, or no politically easy, pain free, magic bullet,” Cannon said. “Republican House members have been looking for the pot of gold at the end of the rainbow marked ‘waste, fraud and abuse’ as a means to solve all of our problems. No one has found it, because it isn’t there.

This plan definitively puts Scott in the deficit peacock camp, as he’s espousing easy solutions to what is, in reality, a complex problem. (To be fair, Scott’s opponent Alex Sink has used some of the same rhetoric.) Florida is facing a $2.5 billion budget shortfall next year, before taking into the account the effects of the Gulf oil spill.

Medicaid costs in the state are slated to surpass $20 billion alone. It’s a favorite conservative talking point to crusade against “waste, fraud, and abuse,” but at the end of the day, that doesn’t get your budget into balance.

Of course, Scott could take a look at Florida’s tax system, which is one of the most regressive in the nation, with no personal income tax and a high reliance on sales taxes. Florida’s poorest 20 percent currently pay 13.5 percent of their income in taxes, while the richest one percent of Floridians pay just 2.6 percent. In fact, there’s only one state in the nation (Washington) where poor residents pay a higher percentage of their income in taxes than Florida, according to the Institute on Taxation and Economic Policy.

Instead of repairing this inequitable system (and maybe helping reduce his state’s deficit a bit), Scott only wants to eliminate the state’s corporate income tax and reduce property taxes. Responsible budgeting means looking at both sides of the ledger — spending and revenues — but Scott steadfastly refuses to do so.

Politics

GOP Gov. Mitch Daniels: ‘At Some Stage’ We May Need ‘A Tax Increase’

Daniels2Since President Obama took office, Republican leaders have united behind a phony message of fiscal responsibility that simultaneously demands tax cuts and deficit reduction — two contradictory policy prescriptions. Despite their fear mongering about the size of the deficit, these deficit frauds have refused to even consider letting the Bush tax cuts for the wealthy expire, let alone entertain the idea of actual tax increases, which many economists believe are necessary to pay down the debt. Rep. Phil Gingrey (R-GA) even called for a “pledge of your sworn sacred honor” and a “covenant…in blood” from lawmakers to not let the Bush tax cuts expire.

But in a Newsweek profile, Indiana Gov. Mitch Daniels (R), a potential Republican presidential candidate in 2012, said he is willing to have a “grown-up conversation” about tax hikes, and that increases should not be taken off the table:

For decades, Republicans have railed against deficits and debt, but they’ve been too afraid of voter backlash to venture beyond marginal measures (“wasteful spending”). Daniels didn’t get the memo.

Let’s raise the retirement age, he says. Let’s reduce Social Security for the rich. And let’s reconsider our military commitments, too. When I ask about taxes—in 2005 Daniels proposed a hike on the $100,000-plus crowd, which his own party promptly torpedoed—he refuses to revert to Republican talking points. “At some stage there could well be a tax increase,” he says with a sigh. “They say we can’t have grown-up conversations anymore. I think we can.”

Daniels, who served as the director of the Office of Management and Buget (OMB) under President Bush, has cultivated an image as a pragmatic, technocratic, fiscal conservative, prompting conservative New York Times columnist Ross Douthut to dub Daniels “America’s Best Governor.”

As Newsweek’s Andrew Romano notes, Daniels has won praise as governor by lowering property taxes, creating a budget surplus, and insuring 45,000 low-income residents through a statewide healthcare scheme — but in order to do these things, Daniels had to raise taxes. One of his first acts as governor was to propose a temporary one percent tax hike on anyone earning more than $100,000, a move that was controversial among conservatives at the time.

But while Daniels may be a truer fiscal conservative than many of his GOP colleagues, as OMB director, he was “one of the main designers and defenders of Bush’s $1.35 trillion tax cut,” which are responsible for a significant portion of the current deficit. And as Matt Yglesias notes, Daniels recently-proposed economic stimulus plan is “very much the concatenation of vagueness and bad math” and “wholly unworthy of the kind of praise” some liberal pundits have given it.

Security

Bush’s Nuclear Administrator Calls Out Corker On Nuclear Pork

corkerSen. Bob Corker has been threatening to vote against the New START treaty unless he gets massive additional funding for a nuclear facility in Tennessee. What makes this so absurd is not only that the Administration has already committed itself to building the facility, but that Corker’s demands for more funding appear to have been pulled from thin air.

Ambassador Linton Brooks who served as the head of the National Nuclear Security Administration — the agency responsible for maintaining the US nuclear arsenal — called out Corker in his home state last week. When Brooks was asked to respond to Corker’s assertion that the new facility would cost a total of $4-5 billion, not the $1.4 — 3.5 billion that has been projected, he noted:

I don’t think we know that… We have no idea where that (dollar estimate) is coming from.

It increasingly looks as though Corker has simply made up a larger figure for the facility, which has no basis in reality. In fact, the reason why there is a cost range between $1.4 and 3.5 billion dollars is because the facility is not fully designed yet. Nevertheless, Corker, due to some new found expertise in the design of nuclear facilities, has determined that that range, which was determined by the National Nuclear Security Administration led by a Bush administration hold-over, is wrong. One would also assume, that a so-called conservative who claims to be concerned about wasteful government spending, would at the very least wait until a facility is fully designed before jumping to baseless conclusions that it needs billions more in additional funding.

But Corker may be motivated by more than just stimulus pork for his home state. Corker is making a demand that the Administration is practically incapable of delivering, since it both can’t pledge more funds to a facility that isn’t fully designed yet and it can’t control how congress allocates funding. Last week, Undersecretary of State Ellen Tauscher confirmed that the Administration wasn’t going to be able to cut a back room deal with Corker:

We’ve shown our hand, we’ve proposed our budget, it’s a 13 percent increase… Any question about the commitment to modernization is just not a question.

Tauscher also noted that the GOP concerns about funding the nuclear weapons complex have suddenly came out of nowhere. She noted that:

I was pretty lonely fighting for money for the NNSA and for the weapons complex before I left Congress for the administration.

Much like the financial regulatory reform bill – where Corker, after positioning himself as a proponent, flipped and turned against the bill – Corker could be playing a similar double game on START. Senator Jon Kyl (R-AZ) has already expressed the goal to delay the vote until next year and Corker could essentially be doing his bidding. Corker’s stance START has taken on a familiar GOP pattern – appear reasonable and willing to vote for the treaty, string along negotiations with the White House, and then make an entirely unreasonable request that blows up the negotiations. The vote in the Senate Foreign Relations committee was already pushed back from August in large part to appease Corker. In the intervening six weeks nothing has seemingly changed. Therefore on Thursday, when the Senate Foreign Relations Committee votes on the treaty we will finally find out if Corker was playing a double game all along.

Politics

Rubio Flips: ‘I’m Not’ Open To Social Security Privatization, ‘I Don’t Think That’s The Solution’

In recent months, a number of Republican leaders have endorsed various schemes to once again attempt what President Bush failed to do — privatize all or part of Social Security. Former House Speaker and likely presidential candidate Newt Gingrich recently endorsed Rep. Paul Ryan’s (R-WI) plan to privatize Social Security and Medicare; Reps. Dan Lungren (R-CA), Jack Kingston (R-GA), and Marsha Blackburn (R-TN) have all touted personal accounts; and, Alaska GOP Senate nominee Joe Miller has suggested that the social safety net programs are unconstitutional.

But in an interview with Fox News’ Neil Cavuto today, Florida GOP Senate nominee Marco Rubio made a stark break with those in his party who want privatize the social safety net, saying explicitly that he is not even “open” to the idea, before explaining why privatization wouldn’t work:

RUBIO: Anyone telling you that we shouldn’t touch [Social Security], they are going to play tricky political games, they’re going to go around saying that I’m in favor of privatizing it, or raising the retirement age on current beneficiaries —

CAVUTO: But you are open to privatizing it, sir?

RUBIO: No, I think for that — no I’m not. That time has come and gone.

CAVUTO: What about for young guys like you who could take some of the money and put it in the market?

RUBIO: The problem is that it takes money — it makes it more difficult to balance the system in the long term.

CAVUTO: Do you’d be against it?

RUBIO: Yeah, I don’t think that’s the solution.

Watch it:

Rubio’s stance is surprising, not just because it conflicts with many of his like-minded conservative peers, but also because it conflicts with his own stated position on Social Security reform. In May, Rubio said he supported Ryan’s “Roadmap,” which would “allow workers to invest a portion of their Social Security payments into a personal retirement account,” something very similar to what Bush proposed. “I’m proud of [Rubio] for doing something bold,” Ryan said in response to news of Rubio’s endorsement. On his website, Rubio also says his position is similar to one “that numerous responsible Republicans have taken including Rep. Paul Ryan (R-WI).”

Of course, the Rubio of today is correct in saying that privatizing Social Security would put the system in grave danger, and his new stance reflects the view of nearly half of Americans who are “very uncomfortable” with replacing Social Security with private accounts.

Yglesias

Endgame

You want a problem? Well I guess we got one now:

— Julian Sanchez and Noah Millman shed some light on “intellectual honesty.”

— Adam Serwer on Gingrich and D’Souza.

Interview with Wolfgang Puck.

— Who will hire Adrian Fenty after his likely defeat tomorrow?

— Lots of hot Instant Runoff Voting action happening this month.

Dismemberment Plan is reuniting. Here’s their masterwork “What Do You Want Me to Say?”

Economy

‘Young Gun’ Paul Ryan Breaks With Boehner: ‘We Do Not Want To Negotiate Down’ On Bush Tax Cuts

Yesterday, House Minority Leader John Boehner (R-OH) “opened the door to a compromise” on the Bush-era tax cuts on CBS’s Face the Nation Sunday, saying “if the only option I have is to vote for some” tax reductions for families earning less than $250,000, “I’ll vote for them.” But this afternoon, during an appearance on Sean Hannity’s radio show to promote his new book ‘Young Guns’, Rep. Paul Ryan (R-WI) backed away from Boehner’s concession, insisting that Republicans should not water down their commitments to extending tax cuts for the richest Americans:

HANNITY: [Boehner] said he would vote for extending tax cuts of middle class earners even though it was bad policy to exclude the highest earning Americans, which they pay the greater percentage of income taxes. So I ask you, in that sense, is it wrong to say that you’d even consider you know, not a full complete extension of the Bush tax cuts?

RYAN: No, we are for a full, complete extension of the Bush tax cuts. We do not want to negotiate down. We want to extend all of these things…We should not begin negotiating that down, we should be insisting on preventing this huge tax increase on the most successful small businesses, which is where most of our jobs come from.

Listen:

In fact, a growing number of Republicans are now distancing themselves from Boehner’s remarks. Senate Republican Leader Mitch McConnell (R-KY), announced today that “he will introduce legislation that would ensure that no one pays higher income taxes next year.” Similarly, Rep. Mike Pence (R-IN) said through a spokesperson that “there should be no tax increase on any job creator next year.”

Earlier in the program, House Minority Whip Eric Cantor (R-VA) — who issued a harsh statement earlier in the day — also seemed to disagree with Boehner’s approach. “John Boehner is a small business person,” he said. “He knows what tax hikes mean to a small business, especially in a recession and I know that all of us are going to work and do everything we can to make sure that we do not allow tax hikes to occur this year.”

Politics

‘Young Gun’ Paul Ryan Breaks With Boehner: ‘We Do Not Want To Negotiate Down’ On Bush Tax Cuts

Yesterday, House Minority Leader John Boehner (R-OH) “opened the door to a compromise” on the Bush-era tax cuts on CBS’s Face the Nation Sunday, saying “if the only option I have is to vote for some” tax reductions for families earning less than $250,000, “I’ll vote for them.” But this afternoon, during an appearance on Sean Hannity’s radio show to promote his new book ‘Young Guns‘, Rep. Paul Ryan (R-WI) backed away from Boehner’s concession, insisting that Republicans should not water down their commitments to extending tax cuts for the richest Americans:

HANNITY: [Boehner] said he would vote for extending tax cuts of middle class earners even though it was bad policy to exclude the highest earning Americans, which they pay the greater percentage of income taxes. So I ask you, in that sense, is it wrong to say that you’d even consider you know, not a full complete extension of the Bush tax cuts?

RYAN: No, we are for a full, complete extension of the Bush tax cuts. We do not want to negotiate down. We want to extend all of these things…We should not begin negotiating that down, we should be insisting on preventing this huge tax increase on the most successful small businesses, which is where most of our jobs come from.

Listen:

In fact, a growing number of Republicans are now distancing themselves from Boehner’s remarks. Senate Republican Leader Mitch McConnell (R-KY), announced today that “he will introduce legislation that would ensure that no one pays higher income taxes next year.” Similarly, Rep. Mike Pence (R-IN) said through a spokesperson that “there should be no tax increase on any job creator next year.”

Earlier in the program, House Minority Whip Eric Cantor (R-VA) — who issued a harsh statement earlier in the day — also seemed to disagree with Boehner’s approach. “John Boehner is a small business person,” he said. “He knows what tax hikes mean to a small business, especially in a recession and I know that all of us are going to work and do everything we can to make sure that we do not allow tax hikes to occur this year.”

Cross-posted on the Wonk Room.

Yglesias

Inflation Targeting vs Price Level Targeting

I want to try to keep doing posts that explain some basic monetary policy concepts, since I think these issues are important but most people aren’t very familiar with them. Today, let’s consider the difference between two kinds of targets a central bank can set for itself. One would be inflation targeting and the other would be price-level targeting. The inflation rate is the rate at which the price level increases, so these are similar ideas. Indeed, in a world of perfect execution they’d be equivalent. This is what the world looks like if the central bank is successfully hitting a two percent inflation target:

cpi2percent

And here’s how things look if the central bank is successfully hitting a target for two percent growth in the price level:

cpi2percent

It looks the same. Because these are the same thing. But it looks different if you factor in the inevitable occurrence of problems.

For example, suppose the economy has a sharp unexpected burst of deflation:

catchup

Here the blue line represents somewhat successful inflation rate targeting—after a few problems, the inflation rate regains stability at two percent. The green line, by contrast, represents somewhat successful price level targeting—after a few problems the price level catches up with its previous two percent annual growth path. That means a couple years of below-trend inflation are met with some years of faster-than-usual inflation to make up the lost ground. This is a subtle distinction, but for someone who signed a long-term contract denominated in nominal terms back in 2007, it has big implications for the financial state of things in 2011, 2012 and beyond.

Older

Switch to Mobile
ThinkProgress Signup Overlay Skip and Continue to ThinkProgress Skip and Continue to ThinkProgress

Sign Up