President Obama has found a new way to deal with the difficult political situation he is facing as a result of the midterm elections. He recently unveiled a major policy move that cannot be easily boxed in as left or right, and hence serves his tendency to seek common ground. However, unlike previous moves, it does not seek to do so by splitting the difference or compromising. When this was done, as is all too clear in the case of the tax bill, the GOP got all they wanted and the Democrats got rather little. (A two-year extension of all the Bush tax cuts costing $544 billion over the next two years, and - for the richest of the rich--a very low tax on estates --in "exchange" mainly for a 13-month long extension of unemployment benefits, of an estimated value of $56 billion). This time, President Obama is calling for a major tax reform that would greatly simplify the code, close many loopholes, and thus allow reducing the rate without increasing the deficit.
This proposal, on the face of it, has appeal to both sides. The GOP cannot reject out of hand a proposal that promises to lower tax rates. The Democrats, the progressives included, cannot reject out of hand a proposal that entails reducing deductions that serve only those better off (the poor do not pay income taxes, and most of those with modest incomes do not file itemized returns and hence do not benefit from most deductions). Indeed, the progressives can hope that the reform will lead to taxing income from investment at the same rate as that of labor. That is to say: rather than facing gridlock, this proposal has a fair chance to move forward, as both sides vie over how to shape it, rather than to block it.
Moreover, unlike the Dick Morris triangulation strategy, which entails doing a lot of minor things to give the impression of a productive, successful presidency, the tax reform proposal has the magnitude and imagination that could translate into a truly important reform, of both substantive and political appeal. The current tax code is so riddled with concessions to special interests, and is so complex, that it should be relatively easy to show to the electorate the merit of reforming the code and the scope and import of proceeding.
The promise of the tax reform proposals makes one wonder whether there are other major policy initiatives the president can take that have similar qualities. There are no easy answers. I predict that ending the war in Afghanistan may develop in this direction. Currently, the GOP is supporting the engagement while progressives increasingly recognize the desperate, flailing, Vietnam-like quality of the war. However, as the Tea Party's elected officials are seated, looking for places to reduce outlays, and the futility of the continued engagement in Afghanistan becomes even more evident over the next year, the substantive and political merits of disengaging might come into focus.
Other such truly common-ground policies might be found in reducing the deficit, as long as such efforts wait until the economy's growth rate is higher and unemployment falls at least below 7 percent (and is heading still lower). I would add to the list protecting the social safety nets, especially Social Security and Medicare, although I realize that some centrist Democrats hold that the best way the president can show his willingness to do big things is to lead the way in cutting these entitlements. (The GOP has made clear that it does not have the stomach to attack these, unless the president gives them cover.)
Anyhow, just as many good progressive people were losing hope that President Obama would ever find his footing, he seems to have launched a new approach, one that--given the political landscape he must negotiate -- may serve the country and him well. The smaller print--which major policies might fit into this design beyond the tax reform proposals--remains to be seen.
Amitai Etzioni is University Professor at The George Washington University, where he is the director of the Institute for Communitarian Policy Studies. For more discussion, visit icps.gwu.edu.
Martin Nolan: The liberal divide: recovery vs.revenge
I think the author makes the mistake of assuming that republicans are going to be ok with a reasonable offering by Obama.
If he wants to do tax reform great, just dont start the giveaways before talks begin, but we have been down this road before havent'we...
This strategy is just so stupid, as by "signalling" "good will" the republicans will magically come to their senses...he justifies their fake outrage and and childish tantrums.
Sometimes it seems that the president thinks this is some romantic comedy in which the protagonist should just keep on wishing hard enough and be patient until the girl comes around. But politics is not romance, it is chess and in chess you dont give anything away for free.
"(A two-year extension of all the Bush tax cuts costing $544 billion over the next two years, and - for the richest of the rich--a very low tax on estates --in "exchange" mainly for a 13-month long extension of unemployment benefits, of an estimated value of $56 billion)."
Looks like the only progress being made as of lately is to create a 'patrician order.' Liberals will make the argument that an estate tax is necessary, but are they really liberal on that issue? What sense does it make to separate a class (those in which an estate tax is applied against) and then barter that with unemployment benefits for another class of people. Is this compromise? Is this progress? It seems to me like retro-activity.
I have no problem with unemployment extension, and I really don't see the need for an estate tax any more, just get rid of it! Thomas Jefferson did the heavy swinging against aristocracy. Why foist up even the idea of another? Class-warfare only creates casualties.
President Obama is doing what he can, he must remain neutral to exhibit fairness in representing all of the American citizens. But where were the Democrats on that last tax bill? Warring class again?
Examples: progressives have been vocal about healthcare reform; but done little to continue the progress. Yet there are solutions to be implemented in states, towns and communities. Like, working on savings, that are already seen from healthcare reform, are passed on to employers and/or consumers, either / both of which will boost the economy.
The same can be said about unemployment, poor education, etc.
Yet we have to look ahead with hope! Seeing how bills have been passed recently, the "divided government " of last few days may portend to something worthwhile .
President Obama and Republican House majority may just work out deals where both sides get part of what they want; and country moves forward with half-a-loaf rather than none. Both sides have to govern and show the public they've earned their pay.
Progressives cannot beat up those who are in our corner. We have to work on those against our view-points.
Republicans and Tea Party have to be given credit for being against bank bail-out and ballooning fiscal deficits. Let's hope progressives and economists will get on board with same goals, and be realistic about achieving what is feasible.
As far as progressives beating up 'those in our corner', nothing I've seen from this president has shown me he is on the side of average Americans, he has a long list of 'achievements' that don't address the critical issues facing this country, and on those critical issues it is clear to all those paying attention that he is more concerned with preserving the corrupt corporate power structure than real beneficial change. The days of voting for the best of two evils are over for me, if someone campaigns on a platform of progressive change they had better try like hell to make it happen
I no longer trust Obama, while it still perplexes me how someone of his background and rhetoric could have turned out to be such a worshiper of the moneyed and powerful. Given his feckless performance, I think his 2012 slogan should be "Obama. This time I mean it!"
Since nobody knows anything about him I find this comment kind of odd.
http://www.huffingtonpost.com/frank-schaeffer/new-start-and-dadt-obama-_b_799532.html
Use tax-preparation software.
Wrong. Really wrong. What will happen is that the teabaggers and the Republicans will want to keep waging the wars they never fight in but profit from at the expense of social programs. Look for both Parties to go after Social Security (do I hear privatization, anyone?), Medicare, unemployment funds--anything to keep from taxing the rich and, at the same time, to keep the war machine satisfied.
And what will Obama and the rest of the Phraidicrats do about it? They'll roll over and play dead, of course. You doubt that and you haven't been paying attention to what's been happening over the last four years of . . . Republican control of the Executive, Legislative and Judicial branches.
When it's just as easy to make your first million dollars as it is to make your hundred and first, then we'll finally, for the first time in history, have a level playing field. Until then the class warfare of the wealthy and powerful, against everyone who isn't, wages on. The only shocking thing is how many little people at fighting against their own self interests in the name of patriotic capitalism.
Watch George Carlin's "The American Dream" on YouTube.
tinyurl.com/2bs4jlz
:)
But what the heck-he hasn't cured cancer yet, nor eliminated all of the consequences of Republican rule. Wow. What a sell-out. The Tooth fairy would have done a lot more by now. though.