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How Republican Tax Intransigence Sank The Super Committee: A Timeline

Our guest blogger is Sarah Ayres, a research associate at the Center for American Progress Action Fund.

By now we have all heard the latest in the months-long debate over reducing the nation’s deficit — barring a last-minute miracle, the congressional super committee tasked with finding at least $1.5 trillion in deficit reduction will fail to come to an agreement. Cue handwringing by pundits lamenting the inability of both Democrats and Republicans to compromise.

The notion that both sides share in the blame is an easy line for commentators to repeat, but it isn’t true. Time and time again, the only thing preventing an agreement on long-term deficit reduction has been the Republicans’ absolute refusal to consider any tax increases on high-income households as part of the solution. Michael Linden and I created a timeline of major events in the past six months of deficit talks:

February 14, 2011: President Barack Obama submits budget for 2012 with about $2 trillion in deficit reduction, half of which come from spending cuts.

April 15, 2011: House passes Rep. Paul Ryan’s (R-WI) budget, which includes $5.8 trillion in spending cuts along with tax cuts for the richest Americans.

May 5, 2011: Vice President Joe Biden begins debt talks.

May 11, 2011: Speaker John Boehner (R-OH) says he will not raise debt limit without spending cuts that match how much the limit is raised.

June 23, 2011: Majority Leader Eric Cantor (R-VA) walks away from debt ceiling talks with Biden after refusing to consider any tax increases. The administration had offered $2.4 trillion in spending cuts for $400 billion in taxes, an 83:17 split.

July 7, 2011: Obama and Boehner begin debt-ceiling negotiations.

July 9, 2011: Boehner walks away from Obama’s “grand bargain”: $4 trillion in debt reduction comprised of $1 trillion in revenue and $3 trillion in spending cuts, including entitlement reforms.

July 19, 2011: The Gang of Six proposes a $4 trillion deficit reduction plan, including $2 trillion in revenue.

July 22, 2011: Again, Boehner walks away from negotiations after Obama offers $1.2 trillion in revenues and $1.6 trillion in spending cuts, including entitlements.

July 31, 2011: Debt ceiling agreement is reached, cutting $1 trillion in spending immediately and establishing the super committee to reduce deficits by at least an additional $1.2 trillion.

October 26, 2011: Democrats first super committee offer is $3 trillion in deficit reduction comprised of about $1.3 trillion in revenues and $1.7 trillion in spending cuts, including cuts to Medicare and Medicaid. Republicans immediately reject it. Republicans’ first super committee offer is $2.2 trillion in deficit reduction, which includes no new tax revenues.

November 8, 2011: Republicans’ second super committee offer is $1.5 trillion in deficit reduction. It does include $300 billion in new tax revenue, but in exchange for extending the Bush tax cuts and lowering the top tax rate. The plan would ultimately cut taxes for the wealthy and raise them for everyone else.

November 10, 2011: Democrats’ second offer is $2.3 trillion in deficit reduction, consisting of $1.3 trillion in spending cuts and $1 trillion in revenue. The revenue would be split between $350 billion in concrete measures and $650 billion in future tax reform. Republicans reject it.

November 11, 2011: Democrats agree to Republicans’ top lines including just $400 billion in revenues and $875 billion in spending cuts, but refuse to accept the GOP’s tax cut for the rich. Republicans reject it and make their final offer: $640 billion in spending cuts and $3 billion in revenues.

What this timeline shows is just how much Democrats have been willing to bend, only to have Republicans reject very generous offers. Back in June, Democrats reportedly offered a mere $400 billion in tax increases as part of a $2.4 trillion deficit reduction package — a 83:17 ratio of spending cuts to tax increases. Republicans said no.

And they haven’t budged an inch since then, stubbornly insisting that any deficit reduction package consist entirely of spending cuts. Even after Democrats on the super committee agreed to the Republican top line of $400 billion in revenues, Republicans refused to make a deal.

Looking at all the offers rejected by Republicans, it comes as no surprise that the super committee will not reach a deal. By rejecting any mix of spending cuts and tax increases, Republicans ensured that there would be no agreement a deficit reduction package.

Gingrich Was For The CBO Before He Was Against It

This afternoon in New Hampshire, Newt Gingrich referred to the Congressional Budget Office — the body responsible for scoring the affect of congressional legislation on the deficit — as “a reactionary socialist institution.” As Political Correction’s Jamison Foser points out, Gingrich has been accusing the CBO of socialism since at least 1994, even though he has relied on the budget office repeatedly to produce nonpartisan scores of critical legislation. Here he is talking about the importance of the CBO in 1995:

Let me say, first of all, that we knew the President would veto the Balanced Budget Act. We’re still very proud of the fact that — as a team — House and Senate Republican passed the first balanced budget in a generation. And we did it working together, solving tremendous number of problems. We did it honestly, using the Congressional Budget Office which was tough. [...]

And yet, I have to say that I have mixed emotions today. On the one hand the President said yesterday he’s going to send up a seven-year balanced budget. It won’t yet be scored by the Congressional Budget Office. But they’ve agreed the Congressional Budget Office would do the scoring.

Now, just to make clear why that’s important. The so-called “balanced budget” of the President over here, when scored by the Congressional Budget Office, suddenly became a $200 billion a year deficit. So, we can’t rely on some phony White House score. And we want to just make clear that our first principle is that whatever the President sends up, we’re going to insist on honest scoring to get honest numbers, which were the ground rules that we wrote the Balanced Budget Act by.

This kind of animosity — or some degree of it — is prevalent in both parties, with Democrats demonstrating a good deal of frustration during the health reform effort about the CBO’s refusal to score prevention and delivery reform provisions as savings. In fact as Paul Starr has pointed out, “Obama agreed to delay implementation of the major provisions of the [health] law until January 2014,” as a way to ensure a good deficit reduction score from the agency. “CBO is God around here,” Sen. Chuck Grassley (R-IA) likes to say, “because policy lives and dies by CBO’s word. Like the Bible, a CBO document can mean different things to different people and it’s easy to pull things out in isolation to justify a position.”

But molding legislation to CBO rules and whims certainly doesn’t make for the very best policy. The office follows budgetary rules that Congress “originally established in the conference report on the Balanced Budget Act of 1997″ and Gingrich personally voted for, and so if lawmakers aren’t happy with the CBO’s assumption, they have a means of changing them. (That is, if they can ever stop cherry picking favorable scores while complaining about unfavorable numbers.)

Romney Won’t Say If He Supports Personhood Amendments

GOP presidential frontrunner Mitt Romney isn’t exactly known for his consistency on women’s health issues. He’s spent much of his time running away from his pro-choice record as governor of Massachusetts, and frequently panders to social conservatives by flirting with extreme legislation like the recently defeated “personhood” amendment in Mississippi.

In an interview today with the Nashua Telegraph, Romney doubled down on his position of having no position at all. When asked to clarify his stance on abortion and redefining personhood, Romney made the laughable claim, “I’ve had the same position since I faced this issue as governor”:

ROMNEY: I’ve had the same position since I faced this issue as governor. As you know when I campaigned I said I wouldn’t change the law, which effectively meant pro-choice legislation would be kept in place. But then when a bill came to my desk to expand, if you will, the killing of human life, embryos, I vetoed that…We in Massachusetts had provision that said life begins at conception that did not prevent contraceptives or in vitro fertilization but it did protect the life of an unborn child. For instance, in the instance of cloning or for stem cell research. And I came out very squarely on the side of life.

Watch it:

Romney effectively avoids taking a position on extreme modern incarnations of personhood legislation by simply noting that Massachusetts had a different sort of life-at-conception legislation that did not criminalize contraception.

When asked about his position on personhood legislation last month, Romney once again studiously avoided addressing the stickier side of the issue — whether he supports hormonal contraception (like birth control pills) that can also prevent eggs from being implanted, which many conservatives think is tantamount to abortion. Romney has also been less-than-straight about his pro-states’ rights approach to abortion. Although he claimed that “I would like to see the Supreme Court return this right to the states,” he has recently pledged to push for federal abortion restrictions.

Economy

With 50 Million Americans In Poverty, David Vitter Proposes Gutting Food Stamp Program

A record number of Americans have fallen into poverty since the financial crisis sparked a deep recession in 2008, but that hasn’t stopped House and Senate Republicans from targeting the poor on their crusade to slash federal spending. In September, Kentucky Sen. Rand Paul (R) declared that “the poor are getting richer even faster” than the rich while relying on government programs, even as the number of children and senior citizens living in poverty has increased to record levels.

One of Paul’s fellow Republicans, Louisiana Sen. David Vitter (R), is now joining that fight, invoking the failed welfare reform policies of the 1990s in calling for a federal cap on food stamps and other forms of welfare, vital programs for millions of impoverished families that grew even more necessary during the recession. Under Vitter and three other senators’ plan, the New Orleans Times-Picayune reports, food stamps would be capped at pre-2007 levels:

Sen. David Vitter, R-La., joined last week with three other conservative GOP senators to propose caps on means-tested federal social welfare programs. It would require that funding for food stamps and 76 other federal welfare programs be capped at pre-2007 levels by 2015 or when unemployment falls below 7.5 percent, whichever comes sooner. [...]

“One of the most significant substantive accomplishments coming out of the 1994 Republican takeover of Congress was welfare reform,” Vitter said. “But as significant as this reform was, we are overdue to renew welfare reform efforts and make additional gains because the welfare state has grown enormously since then — even factoring our recession.”

What Vitter doesn’t note, however, is that welfare reform was a massive failure, reducing America’s ability to aid its poorest and neediest citizens. In 1995, the old welfare system reached 75 percent of those living in poverty, but during the depths of the recession, the “reformed” welfare program reached less than a third. Food stamps, which were not included in those reforms, increased by 57 percent in 2009 as more Americans were plunged into poverty.

This isn’t the first time the GOP has targeted food stamps this year, nor are food stamps the only social welfare program to face the Republican axe. The House Republican budget cut funding for nutrition assistance programs and other programs that help women, infants, and children. The GOP has made extending unemployment benefits a chore, even as it endlessly protects massive tax breaks for corporations and the wealthy.

There are nearly 50 million people living in poverty, 15.7 million of whom are children, and without social welfare programs like food stamps, American poverty would be even worse. In 2010, 28.6 percent of Americans would have lived in poverty without social welfare programs, according to the Center on Budget and Policy Priorities. Unfortunately, the Republican answer to that problem has been to propose raising taxes on the poorest Americans while simultaneously cutting the programs that are most vital to them.

Romney Backs Away From Plans To Privatize Veterans Health Care

During a roundtable in South Carolina on Veterans’ Day, Mitt Romney floated the idea of partially privatizing the veterans health care system, saying, “Sometimes you wonder if there would be some way to introduce some private-sector competition, somebody else that could come in and say, you know, that each soldier gets X thousand dollars attributed to them, and then they can choose whether they want to go in the government system or in a private system with the money that follows them.”

Veterans groups swiftly condemned the proposal, and today Romney himself backed away from privatization in an interview with the Nashua Telegraph:

ROMNEY: I have no proposal of that nature [to privatize the VA]. We has a group of veterans and said, ‘tell me about the quality of your care.’ Some were concerned about the quality of their health care. I said, ‘what kind of options do you have, what do you think about a system that let you go to private as well as VA hospitals?’ The response was mixed, but I don’t have any proposal of that nature. We have a VA system that needs to be improved and I’ve got no plans to change that other than to make it better and to invest more money in providing for our veterans.

Watch it:

Romney’s characterization of veterans’ reactions is rose-colored to say the least. In 2008 — when then-GOP presidential nominee offered a very similar proposal — AMVETS, Disabled American Veterans, Paralyzed Veterans of America, and the Veterans of Foreign Wars argued that while veterans should have access to private care, providing “rural veterans greater access to VA-sponsored care exclusively through private providers” would undermine the existing health care system. In their annual report, “The Independent Budget,” the groups argued that the VA’s “specialized health-care programs” would “suffer irreparable impact by the loss of veterans from those programs” and argued that the prosthetic research program “would lose focus and purpose were service-connected and other enrolled veterans no longer present in VA health care.”

The fully integrated veterans’ health care structure of doctors and hospitals actually provides veterans with benefits that are the envy of the rest of the health care system. A study by the RAND Corporation found that “VA patients were more likely to receive recommended care” and “received consistently better care across the board, including screening, diagnosis, treatment and follow up.” So Romney is right to back away from efforts to privatize the system that already delivers “higher quality of care” than private providers. Now if only he would apply that same logic to some of his other health care proposals.

Economy

FLASHBACK: Past ‘Grand Bargains’ Relied On Taxes To Reduce The Deficit

Both Reagan & Clinton signed "grand bargains" with tax increases

The congressional super committee tasked with cutting $1.5 trillion from the federal deficit over the next 10 years is likely to announce its failure today, and the main reason is that the committee’s six Republicans refused to budge on their support for massive tax cuts for the rich. Democrats would have even accepted the GOP’s paltry concession on revenues — $350 billion from ending deductions — had Republicans not included a permanent extension of the Bush tax cuts for the wealthy, Sen. John Kerry (D-MA) said this morning.

Twenty-four cents out of every dollar saved in Sen. Pat Toomey’s (R-PA) plan that became the primary Republican offer came from tax increases, an even smaller number than proposed in bipartisan plans from other commissions. But while taxes have become the major sticking point between the two parties in their attempts to reach multiple bargains this year, that hasn’t always been the case. Tax increases, in fact, made up large parts of the five “fiscal grand bargains” made during the Reagan, H.W. Bush, and Clinton administrations, the New York Times reports:

In the five fiscal grand bargains of the 1980s and early 1990s, tax increases accounted for an average of 61 cents of every dollar saved. In fact, in President Reagan’s 1982 and 1984 budget-trimming deals, more than 80 percent of deficit reductions came from tax increases. What’s more, the deals passed with majority support from both parties. Mr. Reagan may be remembered as an antitax hero, but he actually raised taxes 11 times over the course of his presidency, all in the name of fiscal responsibility.

Republicans used to rank deficit reduction ahead of curbing taxes, but now the reverse is true.

While Republicans claim to be focused on deficit reduction, their attachment to tax cuts continues to tell a different story. The Bush tax cuts for the wealthy, originally passed in 2003, blew a hole in the federal budget when the GOP offered no plan to pay for them, even though the party predicted at the time that it would pay off the nation’s debt in 10 years. And instead of asking the wealthiest Americans to sacrifice, the GOP has sought to take the knife to an array of programs that help the elderly, the poor, and women, infants, and children in the name of deficit reduction.

The super committee’s lack of a deal isn’t necessarily a “failure,” as economists have warned that forced austerity would only imperil the American economy. But the GOP’s intransigence, tied together by anti-tax activist Grover Norquist, has already led to the first credit downgrade in American history. Now, even as Republicans attempt to lay blame at the feet of Democrats, that anti-tax dogma has prevented the super committee from reaching a deal that Democrats were apparently itching to sign onto.

Romney Calls On Obama To Undo Triggered Military Cuts, Reduce Funding To Medicaid

During a campaign appearance at BAE Systems this morning — a mega defense contractor — Mitt Romney accused President Obama of trapping the super committee into failure in order to reduce defense spending by $600 billion. The former Massachusetts governor criticized Obama for not personally involving himself in the committee’s negotiations and called on the president to introduce legislation that would undo the triggered cuts to military spending and instead target health care funding for the poor:

ROMNEY: In a setting like this, the idea that we’re going to devastate our military is simply unacceptable. I would call on the president and do call on the president to immediately introduce legislation which says we will not have a $600 billion cut to America’s military. We should not cut any funding from our base defense budget, that should not occur. And I would apply the $600 billion that were anticipated on being imposed upon the military, I would take those and apply them into other parts of the federal budget. And there are a number of candidates for that, one of course would be to take something like Medicaid, which is our health care program to the poor and return that program to the states…by doing that you more than compensate for the $600 billion that would be restored to the defense budget.

Watch it:

But Romney has it backwards: cuts to the military would likely have almost zero impact on national security — as they would target the many wasteful, costly weapons programs, many of which are barely even used. Defense contractors like BAE sometimes overcharge and bilk taxpayers, billing the government far more than the “fair and reasonable” price for parts and services. In 2010, BAE Systems pleaded “guilty to one charge of conspiring to make false statements to the U.S. government over regulatory filings.”

Reductions to Medicaid, on the other hand, would significantly increase costs for beneficiaries and the nation and undermine care for lower-income Americans who need it most. As the Congressional Budget Office concluded, if Romney implemented his proposal to “return” Medicaid “to the states” and significantly reduced federal funding, governors would have to cope with the shortfall by “cutting payment rates for doctors, hospitals or nursing homes; reducing the scope of benefits covered; or limiting eligibility,” the budget office concluded. As a result, enrollees could “face more limited access to care,” higher out-of-pocket costs, and “providers could face more uncompensated care as beneficiaries lost coverage for certain benefits or lost coverage altogether.”

Americans overwhelmingly oppose additional cuts to the Medicaid program — which states are already curtailing during a period of heightened eligibility — but 51 percent of voters support reducing the bloated military budget.

Personhood Proponents To Rebrand, Revamp Effort

Anti-abortion forces are pushing ahead with the so-called personhood initiatives, despite suffering defeat in Mississippi, where a mostly conservative electorate soundly rejected the notion that life should begin at conception. The group, Personhood USA, plans to hold a press conference later today to announce their renewed efforts to pursue personhood amendments in Colorado, Oregon, and Montana:

Organizers said Saturday they are banking on broad grassroots support, with volunteers circulating petitions at grocery stores, and a new game plan. The new version of the measure “will protect every child, no matter their size, level of development, gender, age or race,” said Jennifer Mason, spokeswoman for Personhood USA.

New language “will explain again that every human being is a person from their earliest moments,” Mason said. “And it will include some extra information that hopefully will prohibit lies of our opponents. … It will be a departure from what we’ve done before.”

Personhood initiatives have failed twice before in Colorado by a 3-1 margin, as the medical community and women’s groups used public forums to “cast the measure as misguided, arguing that, beyond ending abortion, declaring fertilization as the starting point for life would lead to a prohibition of emergency contraception in rape cases and limit treatment for miscarriages, tubal pregnancies and infertility.” The same arguments succeeded in Mississippi, where doctors, national conservatives, and even religious leaders all came out against the measure. Mississippi’s Governor-Elect Phil Bryant (R), however, predicts that the personhood proposal or something similar may “resurface in the 2012 legislature” and conservatives are still advancing the initiative in states across the country.

The GOP presidential candidates have mostly avoided taking a position on the issue, although Newt Gingrich suggested on Saturday that he would support a national personhood amendment.

Morning CheckUp: November 21, 2011

Super Committee deal unlikely: “An agreement from the deficit-reduction supercommittee appears unlikely as a co-chair of the 12-member panel said that although he is not giving up hope that the group can still find $1.2 trillion in federal savings over the next 10 years, he conceded the size of the task that remains before the Nov. 23 deadline.” [Modern Healthcare]

Health groups are still preparing for cuts: “Regardless of whether Congress’ super committee meets its deadline for finding ways to reduce the federal deficit, budget and policy experts are braced for Washington soon to face the painful task of finding more savings – and they anticipate that health spending will be at the top of the list.” [Kaiser Health News]

SCOTUS appoints lawyers in health challenge: “The Supreme Court on Friday appointed two veteran D.C. lawyers to argue the merits of two issues that neither the Obama administration nor the health law’s opponents support.” [Julian Pecquet]

Republicans still trying to recuse Kagan from the case: “Senate Republican leaders on Friday demanded that Attorney General Eric Holder respond to requests for information on whether Supreme Court Justice Elena Kagan has any conflict of interest in the health reform lawsuit the court will take up this spring.” [Jennifer Haberkorn]

Democrats go after Thomas: “House Democrats wrote to the U.S. Judicial Conference on Friday urging the watchdog agency to request that U.S. Attorney General Eric Holder investigate Supreme Court Justice Clarence Thomas.” [Julian Pecquet]

Obesity on the rise: “If Americans stay on this path, 83 percent of men will be overweight or obese by 2020. Women are right behind them, with 72 percent projected to be overweight or obese by then.” [NPR]

Bachmann attacks Gingrich on abortion: “Former House Speaker Newt Gingrich has failed to uphold a consistently pro-life stance throughout his career in public life,” the email reads. Team Bachmann accuses Gingrich of being “open to watering down the Republican Party’s commitment to the inalienable right to life.” [First Read]

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