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Taxing Booze to Pay for Health Care

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USA Today reports that we might see increased taxation on alcoholic beverages as a way to pay for health care:

Consumers in the United States may have to hand over nearly $2 more for a case of beer to help provide health insurance for all. [...] Beer taxes would go up by 48 cents a six-pack, wine taxes would rise by 49 cents per bottle, and the tax on hard liquor would increase by 40 cents per fifth. Proceeds from the new taxes would help cover an estimated 50 million uninsured Americans.

The article is extremely unenlightening on the policy merits. Suffice it to say, however, that the real value of taxes on beer, wine, and liquor has declined substantially over the past fifty years. So an increase of this sort would not be an unprecedented burden on the American consumer, it would be more like a return to the level of taxation that existed a few decades ago. As I’ve said previously, I wouldn’t necessarily be enthusiastic about this sort of thing purely as a public health measure. But when you consider that universal health care is highly desirable and has to be paid for somehow, I think this is a pretty attractive way of going about it. The economic efficiency of this sort of tax is high, the public health benefits would be large. What’s more, the incidence would fall overwhelmingly on a relatively small number of problem drinkers (rather than the broad mass of people who drink moderately on social occasions) and the businessmen who profit off them, while the public health benefits from decreased drunk driving and alcohol-related violence would be broadly shared.

In technical terms, it seems to me that this proposal could be improved. For one thing, there’s no reason to tax beer, wine, and liquor all on separate scales. What we ought to do is tax the alcohol content of beverages. For another thing, it would be useful to take this opportunity to peg the tax level to inflation or take some other related step to avoid its real value from eroding over time.

Politics

Krauthammer refuses to criticize Rush Limbaugh by name.

Politico’s Ben Smith profiled Washington Post columnist Charles Krauthammer today as President Obama’s “biggest critic,” writing that Krauthammer is not “impressed by the current state of the conservative resistance.” As an example of Krauthammer’s dissatisfaction with the conservative opposition, Smith highlighted his criticism of the tea parties and Rush Limbaugh, though Krauthammer wasn’t actually willing to criticize Limbaugh by name:

Leaving the verdict on the Bush Administration to “the next generation’s David McCullough,” Krauthammer also told POLITICO that he isn’t rooting for Obama to fail.

“What I want to say is — I don’t want to repeat his name – I don’t want Obama to fail,” he said, referring to radio host Rush Limbaugh. “I want our country to succeed. And when I criticize him, it’s because I think his ideas are misguided.”

As ThinkProgress has previously observed, conservatives criticize Limbaugh at their own peril. As RNC chairman Michael Steele learned in March when he called Limbaugh an “incendiary” and “ugly” “entertainer,” conservatives who criticize El Rushbo are quickly forced to kiss the ring and apologize.

Climate Progress

House panel to approve energy and climate bill: Reuters poll

Rep. Henry Waxman (D-CA) has the votes to get his landmark energy and climate legislation approved by the House Energy and Commerce Committee, Reuters reports today:

Democrats on the House Energy and Commerce Committee have enough votes to approve historic legislation to cap and reduce U.S. greenhouse gas emissions, according to a Reuters survey of specific lawmakers on the panel.

The legislation, which Democratic leaders plan to have the committee vote on this week, would  e heart of the legislation is a “cap and trade” system that would gradually reduce the amount of greenhouse gases from utilities, steelmakers, oil refineries and other companies by requiring them to have permits to spew their emissions.

Of the 59 members on the House committee, Reuters found that 30 lawmakers, all of them Democrats, would definitely vote “yes” or were likely to support the bill. The survey results were based on comments from the lawmakers themselves or from congressional staff on where their bosses stand on the bill.

That would be a very big deal since the Energy and Commerce Committee is considered more conservative than the House as a whole on energy and climate issues — stuffed as it is with members representing traditional (i.e. polluting) energy industries.  It would mean that Waxman need not make any more compromises to get the bill passed out of committee.  It would also be a tremendous political accomplishment given that six days ago, the ranking Republican, Joe Barton (R-TX), said “I don’t think they can get it out of committee.”

And here’s a surprise — it’s possible the bill might even get one Republican vote:

Read more

Yglesias

The Case for Mormon Moderation

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It seems Zvika Krieger was already at work on a profile of Utah Governor Jon Huntsman before he unexpectedly agreed to take the Ambassador to China job. His conclusions about that business—partly politically motivated on Obama’s part, but it works because Huntsman’s so well-qualified, and it works for Huntsman since he doesn’t think a moderate can win unless the GOP gets a thrashing first in 2012—are probably correct, but not all that new and interesting. What is interesting is this theory of why Huntsman started drifting into the reform camp in the first place:

Huntsman seems to have learned another lesson from the Romney campaign: A Mormon, no matter how conservative, cannot win amongst the right wing of the party–particularly evangelicals. Romney thought he could win their favor by becoming a drum-beating social conservative, underestimating the deep-rooted antipathy many evangelicals have toward Mormons. A recent Pew poll found that 39 percent of evangelicals hold negative views of Mormons–a sentiment Mike Huckabee used against Romney. Though RNC Chair Michael Steele was lambasted last week for saying “the base … rejected Mitt because it had issues with Mormonism,” he wasn’t that far off: According to a study by John C. Green and Mark Silk, the size of the evangelical community was one of the best predictors of Romney’s success or failure in each state; without the evangelical vote, they argue, Romney probably would have won in four of the five southern states he lost. In light of Romney’s experience, the more likely base for Huntsman would have been the moderate wing of the party, which is less concerned with religion in general (and the LDS church specifically).

I’m not sure that Huntsman’s really hit on a “solution” to this problem. It seems to me that given evangelicals’ large numbers, the tendency, come what may, will be for an evangelical-friendly candidate to win. Which is to say, a Protestant Christian who favors banning abortion and is hostile to claims of gay and lesbian equality. Of course given the winner-take-all nature of most GOP presidential primaries, it’s always possible for an unlikely Republican candidate to prevail against a divided field. But a Mormon intrinsically has a steep hill to climb.

Economy

Study: Employers Have Increased Use Of ‘Coercive And Punitive Tactics’ To Discourage Unionization

ap080818029458According to a report today in Politico, Sen. Tom Harkin (D-IA) “is trying to resurrect the Employee Free Choice Act by reaching out to a group of Democrats looking for cover on the politically treacherous bill”:

Sens. Arlen Specter of Pennsylvania, Jim Webb of Virginia, Mark Pryor of Arkansas and Dianne Feinstein of California are participating in preliminary talks to modify the “card check” bill, according to lobbyists and aides. Aides say Harkin is holding daily, closed-door conversations with interested lawmakers, business groups and labor unions.

This is good news. Lost in much of the the EFCA debate, which mostly centered on the kerfuffle over “the secret ballot,” is the simple fact that labor reform is still necessary and has a good chance of getting through Congress. Various methods for reforming the union election process have been floated, including a proposal from Feinstein that would allow workers to mail in their ballots directly to the National Labor Relations Board. Other key provisions — including arbitration to ensure that workers who vote to form a union actually get a contract — are still being negotiated.

Plus, it’s not like the problems that EFCA is meant to address have gone anywhere. In fact, a new study out today from the Economic Policy Institute found that over the last 20 years “employer opposition [to unionization] has intensified…and the nature of campaigns has changed so that the focus is on more coercive and punitive tactics designed to intensely monitor and punish union activity”:

Although the use of management consultants, captive audience meetings, and supervisor one-on-ones has remained fairly constant, there has been an increase in more coercive and retaliatory tactics (“sticks”) such as plant closing threats and actual plant closings, discharges, harassment and other discipline, surveillance, and alteration of benefits and conditions.

The study found that “employers threatened to close plants in 57 percent of the campaigns and threatened to cut wages and benefits in 47 percent,” while firing pro-union workers 34 percent of the time.

Of course, the business lobby has already committed itself to opposing any compromise on EFCA. “Let us be clear and frank on this matter; there can be no acceptable ‘compromise’ on any issue of labor law reform due to the very real threat posed by EFCA,” wrote the Coalition for a Democratic Workforce, a front group composed of the Chamber of Commerce and the National Association of Manufacturers, among others.

Pressure from the business community has also led some senators, such as Blanche Lincoln (D-AR), to try to avoid the issue. Harkin, however, is threatening to bring the original bill to the floor. “We’re trying to get the necessary compromises made to get this through,” Harkin said, but if a compromise cannot be found, “it is my intent that we will put the original bill on the floor and make people vote on it.”

Politics

Real estate brochure offers rare glimpse inside Bush’s Dallas home.

The Dallas Morning News reports that the Preston Hollow People newspaper has found a real estate brochure from 2007 that “offers a peek at what the Preston Hollow home of George and Laura Bush looked like before the couple moved from Washington.” Their new ranch-style home at 10141 Daria Place has 5 bedrooms, 6.5 bathrooms, “a library, a limestone fireplace, a gallery, a large play room, and a marble bath.” The Preston Hollow article notes that a $3.1 million loan had been issued for the home in October 2008 but also that the home’s market value is appraised at $2.1 million.

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(Photo credit: People Newspapers)

Yglesias

Feinstein Says California Prisons Can Hold Gitmo Prisoners

Probably the only issue on which conservatives have made real headway so far this year is in pushing the preposterous idea that it’s somehow dangerous to hold terrorism suspects on American soil. This doesn’t make a lick of sense—we have many very secure prison facilities—and it has nothing to do with the original reasons offered for holding prisoners at Gitmo. But NIMBYism is a powerful force in politics, and now everyone’s freaking out. Dianne Feinstein hit back today:

Yes, we have maximum security prisons in California eminently capable of holding these people as well, and from which people — trust me — do not escape. So I believe that this has really been an exercise in fear-baiting. I hope it’s not going to be successful.

I wonder if there isn’t a promising potential plan here. You could do something that gave California federal funds in order to house some terrorism detainees in California state prisons. That would help, to some extent, alleviate the state’s budget problems.

Yglesias

Blogging Urban Policy Tomorrow

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Just a brief reminder that you can—and should!—come see me speak tomorrow night at The Next American City’s Washington DC UrbanNexus salon:

Join Next American City and Greater Greater Washington for an URBANEXUS salon discussing blogging and urban policy. Are bloggers the future of organized urban planners? Publisher Diana Lind will moderate a panel of bloggers – Ben Adler of americancity.org, Matthew Yglesias from thinkprogress.org, Sommer Mathis of DCist.com, Reihan Salam from theamericanscene.com and David Alpert of greatergreaterwashington.org – for an interactive conversation exploring the blogosphere’s urban policy activists.

Admission is free for subscribers. Admission for non-subscribers is $15 in advance or $20 at the door for a one-year subscription to Next American City and entry to all NAC events & free food.

I promise awesomeness.

Climate Progress

Republicans (sic) for Environmental Protection “call out those Republicans who continue to spread the false claim that capping greenhouse gas pollution will ” supposedly ” cost American families $3,100 every year.”

Climate change is real, it’s caused by humans, and it will create serious risks for our nation’s security, economy and quality of life “” and sooner than we think. That’s the unmistakable message from scientists who have devoted their professional lives to understanding how human activities affect climate. One of them is Dr. Katharine Hayhoe, a climate research scientist at Texas Tech and a devout evangelical Christian.

She is co-author of a forthcoming report that will document the stunning effects climate change will have throughout the United States “” such as the climate of my own state of Michigan becoming like what North Texas experiences today. I’m not kidding

Yes, there is a group called Republicans for Environmental Protection, but there’s no truth to the rumor that their annual meeting was held in the bathroom of the Republican National Committee.  Sorry, couldn’t resist.  They are a “nationwide grass-roots organization dedicated to restoring the GOP’s conservation tradition.”  And they say I’m an optimist!  But I digress.

The President, one Rob Sisson, has a column in today’s Politico, “Time for the GOP to become green,” in which he rebuked congressional Republicans who are shamelessly abusing an MIT study of generic climate bills (as discussed here Exclusive: MIT Professor says GOP, Weekly Standard “misrepresentation” of his April 2007 study to project costs for Waxman-Markey is “inappropriate,” “silly” and “just wrong”).

The whole piece is worth reading, to see how far the shrinking national Republican party is from many of its state-based members:

Read more

Politics

O’Reilly: ‘I Consider Myself A Middle Class Guy’ Even Though I Make $10 Million A Year

In October, Bill O’Reilly renewed his contract with Fox News, winning a multi-year deal paying him roughly $10 million per year — placing him well above the top 0.1 percent of income earners. O’Reilly also reportedly charges $50,000 per speaking engagement. Yesterday on his show, O’Reilly said he supports more fuel efficient cars because he has a “middle-class…sensibility”:

INGRAHAM: And what this is, whether you like the green initiatives or not, ultimately, will end up being a continued war on the prosperity of the middle class of America. That’s what this is. It’s part of the remaking of the middle class of America –

O’REILLY: Why, why, why? Look, I consider myself a middle-class guy. Even though I make a lot of money, my sensibility is there.

INGRAHAM: Yeah.

Watch it:

O’Reilly’s middle class “sensibility” curiously favors the wealthy. Last July, he complained that if President Bush’s tax cuts “on those making $250,000 or more” are repealed, “me and other rich folks” would have to finance “folks who dropped out of school, who are too lazy to hold a job, who smoke reefers 24/7.” This isn’t surprising, of course. A Wonk Room analysis found that O’Reilly saves over $400,000 per year under Bush’s tax code.

In March, speaking to anti-tax crusader Glenn Beck, O’Reilly accused “30 percent” of the public of being “jealous” of the rich, saying they want to “take from the rich and give to the poor.”

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