Income taxes have gone up for the first time in 20 years, but as the Huffington Postreports, only 1 percent of taxpayers are affected:
Forget the 1 percent, the fiscal cliff deal is all about the .7 percent. That’s the slice of Americans who will be affected by Congress’ new definition of “wealthy,” according to a new analysis from the Tax Policy Center, a nonprofit tax research group.
The centerpiece of the deal passed by Congress on Tuesday includes higher income taxes on individuals who make at least $400,000 and couples who make more than $450,000. The tax rate for those groups jumps to 39.6 percent from the current 35 percent.
Yesterday, I complained that political media presents debt reduction as a no-brainer—something we must do, for the sake of our solvency—and not as a choice that may or may not be warranted in the current environment (hint: it’s not). There’s no mystery as to why that’s the case; the major mainstream news outlets are heavily influenced by elite opinion, and elite opinion is dominated by the views of successful businesspeople.
If the debate around the fiscal cliff and, particularly, the still-impending sequester demonstrates anything, it’s that Richard Nixon’s one plunge into economic theory—“We’re all Keynesians now,” the former president once said—still holds. Everyone acknowledges that laying off hundreds of thousands of government employees, including 800,000 civilian Defense Department workers, and stopping payment to government contractors will, by definition, destroy jobs, at least until the payments resume. It’s still Republican orthodoxy, to be sure, to deny that government spending actually creates jobs, but even they acknowledge that the cessation of government spending destroys them. Which illustrates that the problem with contemporary Republicanism isn’t confined to their indifference to empiricism but also their indifference to logic. Reasoning—either deductive or inductive—is either beyond them, beneath them or above them.
When President Lincoln suspended habeas corpus in 1862 (a couple of times, actually), he conceded the possible unconstitutionality of what he had done but concluded that since the move was necessary in a time when half the country was at war with the other half, he would take his chances with Congress, the courts, and history. The country’s current chief executive finds Lincoln comparisons disconcerting, but this is a case where he might pay attention, because his legal grounds for unilaterally raising the ceiling on the national debt in a time of congressionally inflicted crisis are no weaker than Lincoln’s and probably stronger.
In all the attention paid to the drama over the fiscal cliff, most people momentarily forgot that there were a few other important things the 112th Congress was supposed to take care of before its ignominious term came to an end. But yesterday, thanks to a couple of prominent politicians criticizing their own party—something always guaranteed to garner plenty of media attention—everybody remembered that states in the Northeast, particularly New York and New Jersey, are still waiting on federal disaster aid. First New Jersey governor Chris Christie came out and gave a blistering press conference in which he blasted House Republicans for not taking up the relief bill, saying, "There is only one group to blame for the continued suffering of these innocent victims: the House majority and their speaker, John Boehner." Christie also said he called Boehner multiple times, but Boehner wouldn't return his calls. Then Rep. Peter King, a Republican from New York, delivered a rather extraordinary statement on Fox News, not only urging people in New York and New Jersey not to donate to members of his party, but referring to them as "these Republicans," as though they were from a group of which he was not a part. "These Republicans have no problem finding New York when they're out raising millions of dollars," King said. "I'm saying right now, anyone from New York or New Jersey who contributes one penny to Congressional Republicans is out of their minds. Because what they did last night was put a knife in the back of New Yorkers and New Jerseyans. It was an absolute disgrace." Yow!
When Wayne LaPierre of the National Rifle Association made his dramatic statements about the Newtown shooting, he placed the blame on some familiar suspects: not just insufficient militarization of elementary schools, but movies and video games. "Media conglomerates," he said, "compete with one another to shock, violate, and offend every standard of civilized society by bringing an ever more toxic mix of reckless behavior and criminal cruelty into our homes." But Matt Gertz of Media Matters discovered that the NRA is actually not so opposed to movies that feature people shooting each other. In fact, the NRA's National Firearms Museum features an exhibit called "Hollywood Guns," in which you can check out the actual guns used in some of your favorite films (go to the end of this post for a video of the NRA museum curator proudly showing off the movie guns).
You might respond that the NRA is full of crap when it points the finger at Hollywood, which of course it is. But let's take them at their word for a moment and examine the claim...
New Jersey governor Chris Christie has never been one to mince words—he became a conservative heartthrob during his first gubernatorial campaign thanks to a string of anti-union screeds that made the rounds on YouTube. But on Wednesday, Christie took aim at his fellow Republicans for their failure to pass a relief bill for the victims of Hurricane Sandy. “There is only one group to blame for the continued suffering of these innocent victims: the House majority and their Speaker John Boehner,” Christie said during a press conference today. Boehner had promised to introduce the bill following the fiscal-cliff impasse but adjourned the House Tuesday night without offering a vote.
Every so often, Congress has to tackle “no-brainer” legislation. These are bills that, for the most part, are broadly supported by both parties and don’t require much in the way of time, negotation, or effort to resolve and pass. One of them is the Violence Against Women Act (VAWA), which provides funding for shelters and other services, and targets resources toward prosecution of violent crimes against women. The law has come up for reauthorization twice before—in 2000 and 2005—and in both cases passed without substantial opposition.
For gay-marriage advocates, 2012 marked a major turning point—not only did they see wins in the Washington and Maryland state legislatures, but voters in both states as well as in Maine voted to give same-sex couples the right to get hitched. But 2013 may prove to be even more momentous, as lawmakers in several other states plan to push the issue.
Of the many frustrating things about political punditry, one of the most frustrating is the extent to which many writers choose to ignore core facts about our political world and instead rely on generalities, intuition, and lazy conventional wisdom. For one great (terrible?) example of this, look no further than the most recent column from Gerald Seib of the Wall Street Journal, in which he blames the near-collapse of the fiscal-cliff deal on “both sides”:
This passage from Politico’s write-up of the fiscal cliff deal, on the supposed inadequacy of the agreement, stuck out to me for it’s sheer wrongness: “The pact also does little to reduce trillion-dollar-plus deficits, shore up entitlement programs, overhaul the tax code or stimulate the U.S. economy — the casualty of a polarized political culture that scorns compromise.”
After the shooting in Newtown, some politicians who had previously been endorsed by the NRA and long supported nearly unlimited gun rights came forward to declare that they were rethinking their positions. The first and perhaps most notable was West Virginia Senator Joe Manchin, and nearly every news story about his change of heart mentioned that in a famous television ad when he ran for the Senate two years ago, Manchin not only touted his NRA endorsement but dramatically fired a bullet through a copy of a cap and trade bill. But if you though a candidate brandishing a gun to demonstrate his cultural affinity with rural voters was something unusual, you'd be wrong. We've assembled some of the gun-totin'-est political ads from the last few years.
Beyond yesterday’s narrow escape from the dreaded fiscal cliff are … more cliffs. President Obama and Congress averted one fiscal calamity of tax-hikes-for-all only to face even steeper cliffs—the sequester, the debt ceiling, the Social Security shortfall, ad infinitum. It is a fiscal Wizard of Oz, an extended odyssey with perils on every side.
“It’s not all I would have liked,” says Republican Senator Lindsey Graham of South Carolina, speaking of the deal on the fiscal cliff, “so on to the debt ceiling.”
The battle over the fiscal cliff was only a prelude to the coming battle over raising the debt ceiling—a battle that will likely continue through early March, when the Treasury runs out of tricks to avoid a default on the nation’s debt.
The White House’s and Democrats’ single biggest failure in the cliff negotiations was not getting Republicans’ agreement to raise the debt ceiling.
The last time the debt ceiling had to be raised, in 2011, Republicans demanded major cuts in programs for the poor as well as Medicare and Social Security.