Dave Weigel has a really nice piece about the Democrats’ cunning plan to trap Republicans into cutting payroll taxes. As Dave says, it wasn’t so long ago that lifting the payroll tax cap was a standard part of any Democrats’ stump speech. In fact, people like Jim Clyburn still mention it today, and Bernie Sanders just introduced the legislation in the Senate. But instead of making payroll tax fairness a fixture of the Democratic brand, instead of wrapping that into a critique about the inequality that is at the heart of what America needs to fix in order to have sustainable finances again, Democrats chase these little moments to “prove” Republican hypocrisy – and in turn confuse everyone as to what it means to be a Democrat.
Something is getting lost in the campaign: Why goad Republicans into supporting tax cuts? It’s an irritating short-term strategy. What does it get Democrats in the long term if they say this tax cut can’t be undone?
“It’s completely hapless negotiating!” says Nancy Altman, the co-director of the defend-the-New-Deal-at-all-costs group Social Security Works. “You’re taking something the other side wants and then begging them to take it. I’d expect that Republicans would eventually take it, but in exchange for some other concession. What a perfect position to be in, when you’re begging me and offering me more if only I’ll vote for something I want already.” [...]
Sanders’s proposal is actually more popular than the one the Democratic establishment has tattooed on its forehead. Last week a Reuters poll asked voters to assess a few different stimulus proposals. Forty-six percent of them liked “raising taxes on wealthy individuals.” Only 20 percent liked “extending the payroll tax cut.” That’s what happens when Democrats get Norquist on the brain: They become obsessed with making Republicans uncomfortable instead of with something that voters like. Or with something that’s easier to campaign on. Or with something that works.
I’m ready for some pragmatist to come back with the idea that “this is the only thing that will pass!” And sure, if you never try to pass anything but what you imagine the other side to accept, I imagine you could rack up a pretty solid track record. You lose any meaning for your party in the process, but oh well.
I understand fully that telling Republicans that they work for their constituents and not Grover Norquist is a nice debating point. And I’m down with pressuring those representatives who don’t come close to representing the people. But in a two-party system, if one side is militantly anti-tax, and the other side has representatives who say things like “a 10-year plan to reduce $4 trillion in debt should not be the kind of ultimate heavy lift,” and who try this pincer movements in the service of more tax cuts, where does that leave people with a different view? With the historical view of the Democratic Party?
If we’re talking about a tax cut that acts like a wage increase and can reduce unemployment by 0.3% in the next year, it’s worth exploring. There are better ways to do it, incidentally; the Making Work Pay tax credit put more money into the hands of people who would be more likely to spend it, and less into the hands of the truly wealthy, for example. And it didn’t monkey with Social Security’s finances in any way. Similarly, you could pair a one-year tax cut now with a raising of the cap to capture 90% of compensation later, or a lifting of the cap entirely, and pay for the cut many times over while keeping Social Security completely solvent (you could actually increase benefits) and restoring some fairness to the system.
Instead, we have this endless chase to trap Republicans, as if they or their constituents or really any voter thinks completely logically about these decisions. As politics it’s just a short-term story; as policy it just keeps moving the goalposts to the right.




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Thank you, David. This one is tops.
Just as it’s become evident that Obama is getting what he wants, maybe we have to acknowledge that Democrats are getting what they want. This rightward march is scripted and Democrats have their parts to play.
Lowering the payroll tax totally destroys any messaging that instead the cap should be raised to fund Social Security and Medicare. Next, we’ll get the Benedict Arnoldcrats telling us Social Security and Medicare are unsustainable while they extend the tax cuts on the wealthy.
But open your mail folks, the DNC is fund raising again. You have an excellent opportunity to give them a piece of your mind without buying a stamp.
GOP: “We want ‘___’”
Obama: “Would you like fries with that?”
Lather rinse, repeat.
Is this the moment where we will see Obama take “some bold assertive actions” so all his former supporters will suddenly start liking him again? Is this Obama’s chance to make his “approval numbers … bounce back quickly?”
This crap of always only suggesting or offering up what you think can pass is ridiculous. If dems believe in 10 and republicans believe in 0, Obama then guesses 5 will be able to pass. So, his initial offer is 5. Then he has to compromise with the republicans and ends up with 2.
Maybe, just maybe, if they started at 10, they could have actually attained 5 while at the same time explaining to the country that what is really needed is 10.
A lower and middle class payroll income tax cut would make more sense. Lowering Social Security contributions is not a good plan, especially when SS is a pinyata for being “in crisis”.
It’s impossible to fathom how the Dems could be so utterly inept. All the information they need to know which policies to push and to run on are out there. Besides the fact that there is poll after poll after poll after poll that tells them that the public wants more progressive policies and more aggressive politics from the Dems, there have been a number of special elections where the Dem not only won but did so with a solid progressive platform and yet they continue to get it wrong.
I could understand if we were some minority of the electorate or if our ideas had been tried and failed but of course that isn’t the case. Not by a long shot. This has got to be a leadership issue. From Obama to Reid, Hoyer and the rest of the leadership.
It’s clear that not only do we need to elect better Dems but we need to remove the existing leadership.
Your argument makes sense if we continue to believe that Obama and his minions want 10 or 7 or even 5. What we have to get through our heads is that 2 is what they were shooting for in the first place.
Whatever reaches Obama’s desk is exactly what he wanted from the beginning of any policy debate. No more, no less.
It is as if the Obama crew think that the whole country is the Village. They are playing their little masturbatory negotiating tricks with villagers while the country goes down the drain. Talk about being in the bubble!
Dimocrats. that’s how they got the name.
I tell the DCCC everytime they call: I am waiting for the Tiny Congress to report. Not a dime from me if you cut Social Security or Medicare benefits; and that includes chained CPI and raising the retirement age.
Raise the retirement age?
That’s as bad as telling most people: you can have 15 years of Medicare. You pick the starting date.
“It’s completely hapless negotiating!” says Nancy Altman, the co-director of the defend-the-New-Deal-at-all-costs group Social Security Works. “You’re taking something the other side wants and then begging them to take it. I’d expect that Republicans would eventually take it, but in exchange for some other concession. What a perfect position to be in, when you’re begging me and offering me more if only I’ll vote for something I want already.”
This is a fairly accurate statement. It is giving them EVERYTHING they want AND MORE, and then calling it negotiating.
Sadly Ms. Altman falls into the same foolish and utterly avoidable mistake of saying there are two sides. There are NOT.
People are so dependent on this facade of two sides and democracy that even when evidence to the contrary abounds, they still cling to it like a Titanic passenger clings to the wreckage.
“This rightward march is scripted and Democrats have their parts to play.”
Yes, exactly.
Let the kabuki continue.
I swear, one day Ds will just give up SS and all the pawns will clap and applaud.
Meanwhile Obama tells us Perry is bad – a worse result to Democratic principles happens if Obama is not re-elected. –
And our media pretends Obama is correct – that left “loses” something if we lose Obama
A great game – brought to you by MSNBC and friends, paid for by corporations for Obama.
These are Double Dam Democrats! Don’t you just love their spineless little hearts? We as human beings have got to rid ourselves of Mister Change-A-Little ( Stuart Little brother),Harold Ford and his orchestra of cooperate weasels and what-nots. The progressives who say they love and support the president but not his policies or negotiation skills. That’s akin to saying I love and supports the troops but not the war. Do you feel sometimes that you fell down a Rabbit Hole Of Alice In Wonder Land?
Doesn’t it give you a warm feeling when the Exxon commercial for natural gas hydrofracking plays on “liberal” MSNBC?
Video of Dapperless Dan‘s recent Town Hall meeting.
I suppose the reason for this is a failure to renew the payroll tax holiday means another recession just in time for the 2012 election. Of course, renewal of the payroll tax cuts undermines Social Security.
Senator Sanders has a better idea, but what is he prepared to do? He could shut down the Senate unless Harry Reid calls a vote on the cap.
The Democrats had the Republicans trapped and bagged over Medicare cuts, Obama let them go. Why bother?
Democrats aren’t inept in this, they’re complicit. They’re going along with this bullshit because they WANT to.
I’ve got a mental image of a spineless heart and it sure does fit the party.
And have you heard the new bafflegab spin that since people are working longer before they retire that raising the eligibility ages makes perfect sense. As if we didn’t know that people are working longer because they ALREADY can’t afford to retire but somehow giving them tens of thousands less in Social Security and Medicare is supposed to make it easier?
“There are better ways to do it, incidentally; the Making Work Pay tax credit put more money into the hands of people who would be more likely to spend it, and less into the hands of the truly wealthy, for example. And it didn’t monkey with Social Security’s finances in any way.”
Absolutely correct!
I wrote letters to the editor and to my congressional representatives arguing against the payroll tax “holiday” when it was implemented. I am still adamantly against cuts in payroll tax that will only serve to damage Social Security. I find it incredibly disheartening that anyone, especially democrats, would think that it is doing the working class any favors to continue cutting payroll taxes!
It is very clear that common sense has left Washington. It is very clear that no one is listening.
Here ia an excerpt from my December 2010 letter, titled “Payroll tax “holiday”-no picnic for the working class:
The working class has been hit by stagnant wages, loss of home equity, and miniscule interest earnings on savings. The only retirement that many have left is their social security. This retirement has been earned through a lifetime of contributions.
If congress wants to help the working class, don’t take steps to make Social Security less viable! If congress wants to help the working class and our country, let the Bush era tax cuts for the rich expire.
Extending tax breaks for the rich while striking a blow at Social Security is a lose/lose proposition for the working class. One definition of holiday is “of or pertaining to a festival; festive; joyous”. I can tell you I am not feeling joyous about this proposal!
Altman nailed the hustle without even knowing it.Obama is not stupid.How anyone could take the serial pattern of pre-emptive concessions as anything but a scam is beyond me.Obama creates the landscape to win by losing as he proposes refried Republican ploys that he won’t defend in negotiations against more draconian positions pushed by the tea baggers.Obama likes to engage with the tea baggers,as evidenced with the debt ceiling..Contrary to corporate media propaganda that questioned invoking the 14th Amendment ,I can make a better argument that Obama should be impeached for not employing executive order and hence allowing our debt obligations to be put into question.Obama won,as the feckless tea baggers took the heat while he advanced his right-wing austerity agenda and got his super-committee to take the heat for the future meat-axe gutting of entitlements that have always been on the chopping block.
FDR designed Social Security with those payroll taxes for a very specific purpose:
Social Security Online: History
By doing this “payroll tax holiday” President Obama has monkeyed around with the fundamental foundations of Social Security in a way that weakens its support at a time when it is terribly endangered already. And he did it for the sake of some invisible useless “tax relief” for the working class which he dared not to support in public. It was like his leaving a $50 bill on the dresser as he slipped out the back door.
And by pandering to the “tax relief” cult with this he has let the Republicans back him into a corner on extending it. If he doesn’t extend it, its a tax increase. If he does extend it he further weakens the solvency and fundamental moral structure of Social Security. I don’t know if it is stupidity or cowardice or if he is really trying to wreck Social Security because he is working for the other side.
I can remember Bob Dole proposing this same tax holiday that undermines SS and I’m sure he wasn’t the first pub to use such penny-ante catnip to undermine SS funding.
O/T They’re getting uppity.
Emerging powers call for extending Kyoto Protocol
“Brazil, South Africa, India and China said Saturday that November’s UN climate talks should aim to extend the Kyoto Protocol, the only binding global deal to cut greenhouse gases.
“The four key emerging powers — seen as critical to the success of any future effort to combat climate change — said keeping Kyoto alive should be the “central priority” at the key UN summit in South Africa.
. . .
“Japan, Canada and Russia have all rejected a new round of carbon-cutting commitments, and the United States and the European Union have already said there is zero chance of reaching a binding emissions deal in Durban.”
Cutting the payroll tax is just a back door way of destroying social security.
What a totally cowardly post.
Why don’t you come out and say you are committed to defeating anyone running for Congress who takes the Norquist pledge because hiking taxes on everyone is the top priority for progressives as the most important public policy.
Large tax hikes on gas to fund highways and increase efficiency.
Modest hikes in FICA to meet Reagan’s promise:
Taxes on carbon to drive energy efficiency and fund sustainable economic growth and job creation.
In the 70s, after the first Earth Day, activists realized the problem was Congress and identified the Dirty Dozen to be defeated, and seven were defeated, sending a message that resulted in Nixon proposing the EPA.
Time to pick out a dozen members of Congress to target for defeat for refusing to commit to vote for tax hikes.
But that is hard work, so instead its “blame Obama” because that is easy.
Look the highways are in sorry state of repair, so tax hikes, or tolling, or other fees are required. Every member of Congress needs to be forced to take a stance on highways:
a. let them rot
b. turn the over to for-profit toll operators
c. hike taxes for roads and bridges
The same applies to water and sewer, for air transport, for public transport, electric power grid, telecom, and the other critical things an industrial economy needs.
But you don’t want your taxes hiked, you want a free lunch paid for by me or them.
The easiest tax issue is the gas tax. The US has the lowest gas price in the world except for a few dictatorships with oil production. China charges more for gas than the US, as do Europe and the rest of Asia. And they use that money to pay for other government services, like military action related to oil, and also for much better transportation systems – public transit solves road congestion better than more roads in many places, if the public transit system is as comprehensive as the primary road network. But the millions of people employed in steel mills and mining and construction and engineering need to be paid to build that transportation capital, so taxes are needed to provide the revenue stream.
Taxes are a sacrifice, but no more than paying $3 a pound for terrible tomatoes harvested by slave labor or paying $4 for local in season ripe on the vine delicious tomatoes. Unless you are an advocate of slave labor to build the roads and bridges, you need to stand on principle and demand you are represented by people in Congress who will tax and spend wisely on the infrastructure a modern economy needs.
Or we could bring home the 100,000 soldiers in Afghanistan that are paid for with our taxes. Even if each was paid $100,000 per year, at home, that would free up $900,000 per soldier ($1 million per year per soldier is the cost to have them in theater). $900,000 X 100,000 soldiers = $90 BILLION per year, ergo over the ten year budget projection that is a savings of $900 BILLION. That doesn’t include the money wasted on the approximately 100,000 “private contractors”. That would seem to be sufficient to fund a public works infrastructure program and then some. Did you forget the impoverishment of this nation attributable to the extension of empire? Misplaced priorities.
Some in Spain are getting fed up with this “austerity” game.
“Hundreds of Spaniards demonstrated Sunday against a constitutional reform plan aimed at capping budget deficit.
‘”No to the reform of the constitution. No to a step back,” read a large banner as the demonstrators marched towards Madrid’s Puerta del Sol, the hub of months-old protests by the “indignant” youth movement.
“Several similar demonstrations were due to be staged in other Spanish cities to demand the constitutional reform be submitted to a popular referendum.”
Another deal struck by the Socialist and Popular (Conservative) Party. What are the so-called leftists getting out of this? Very curious stuff. Everybody’s caving, but they’ve got to be doing it for a reason.
I like Bernie Sanders idea the best and I agree with this article. Instead of gamesmanship why not put forward proposals that really work and can be proved to work and present them in a factual way and work hard for their support instead of posturing and using talking points and bumper sticker slogans? Oh ya. I forgot. We’re americans. It’s what we do.
In addition to what my senator is proposing i would like to see the payroll tax reduction applied to small businesses that make under a million gross or for small businesses that employ fewer than 15 people or so. With the cap lifted it seems like the additional revenue would more than offset any losses in that area and small businesses by their nature would use that extra income for growth and job creation. I know this because I”m one of those businesses with three employees. I’d like to see the payroll tax halved for anyone making under $28,000.00 per year and as Bernie is proposing extended out to al income levels in full with no cap. Capping it is stupid and directly punishes the middle class and carves out another privilege for the wealthy.
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