Has Speaker Boehner opened the door or is he just being cute?

By Peter Fenn – 02/27/13 10:05 AM ET

Despite his declaration that the Senate “needs to get off their ass,” Speaker John Boehner (R-Ohio) may have opened up the possibility of negotiations on real tax reform.

Of course, tax committee chairmen Rep. Dave Camp (R-Mich.) and Sen. Max Baucus (D-Mont.) are deep into negotiations to come up with workable ideas to reform our tax system. So Boehner’s comments today weren’t totally out of the blue.

But Boehner may realize the key to a grand bargain is as much in revamping our tax system as it is in the Tea Party’s slash and burn politics. As much as the Republicans love to repeat “we have a spending problem,” the smart ones know deep down that we have a revenue problem too.

And any politician who hasn’t been on Mars understands that the public wants a balanced approach, not a meat ax, by a whopping 76 percent versus 19 percent, according to the latest Pew survey.

The sequester is about to put the squeeze on various people like a very tight vise. But many will escape, unless they stand in three-hour lines at airports.The real question, which few can answer, is what will be the effect on the economy at large. Will we make stupid decisions on spending similar to those that the British made? Will we take a clear recovery and turn it into another downward spiral, as the Brits did? Will we lose 700,000 jobs, keep money on the sidelines, harm our retirees’ 401(k) plans?

If the sequester leads to a grand bargain that includes tax reform, entitlement reform and selective cuts — with timelines and a reasoned plan for the long term — it all could work.

But not if Boehner is being cute and will insist that tax reform means “you can have your cake and eat it too.” In other words, we just shuffle taxes around but no one pays more and the wealthy continue to get their hedge fund breaks and their corporate jets.

There is a key reason why this is not so simple. Let’s look at the numbers. There are over 200 tax deductions, breaks, loopholes, whatever you want to call them. Most were put in for a public policy reason: to help businesses pay for healthcare, to encourage charitable giving, to help middle-class families buy a home, etc.

They cost us about $1.1 trillion a year.

But here is the kicker.

Of the over 200, the top two, employee health plans and pension contributions/earnings, account for 27.5 percent of that $1.1 trillion.

The next three — the mortgage interest deduction, the exclusion for Medicare and lower capital gains rates — raise the share to nearly 50 percent of that $1.1 trillion.

In fact, the top 10, which also include charitable deductions, deductions of state income taxes, breaks for inheritance taxes and the earned income tax credit, result in 70 percent of the total.

So, closing “loopholes” is not nearly as simple or easy as it sounds. These are tough decisions when it comes to finding the money and determining who gets harmed and who gets helped.

The deductions that cost the most, one could argue, also help the most people and are there for a reason. I don’t envy Camp or Baucus. If this were easy, it would have been done already.

But one thing is clear, and that is Boehner needs to convince his caucus, and maybe himself, that means testing, fair taxes on hedge fund managers, ending generous breaks for the hugely profitable oil industry and closing offshore tax havens should all be on the table. That would be a good place to start.

I have to confess, though, I have my doubts.

By PETER FENN

I just returned from a trip to Morocco sponsored by the State Department and Legacy International. No, this is not a travelogue. And I didn’t ride on camels or play tourist.

My Republican colleague, Rich Galen and I met with political leaders, new women members of parliament, young activists and social service organizers. We had a wonderful dinner with Sam and Sylvia Kaplan at the ambassador’s residence in Rabat and met with embassy staff and the Consul General in Casablanca. We met with business leaders, went to a shelter for unwed mothers, and visited new business startups.

In our 10 days we came away with a myriad of impressions. But, first and foremost, it is hard to escape how important a developing and evolving political system is to a successful future in North Africa and throughout the Middle East.

For the Full Article go to USNews & World Report

http://www.usnews.com/opinion/blogs/Peter-Fenn/2013/02/20/the-importance-of-democracy-in-north-africa

 

 

By PETER FENN

After 30 years, it was time to give a speech few such long serving senators want to give.  Even if you are going on to bigger and better things, as is John Kerry, who will head the State Department.

As he stood for the last time at the small wooden desk used by his predecessors from Massachusetts, John F. Kennedy and Edward M. Kennedy, his emotions took over and he could hardly speak.  That is rarely a senator’s problem!

[See a photo gallery of Ted Kennedy.]

His speech was a tribute to him and to the Senate he loves.  It brought out the best in John Kerry, someone who has fought for his country and fought for what he believed in his whole life.

READ THE REST OF THE POST:

By PETER FENN

President Obama gave a truly American speech yesterday. It resonated from the opening reference to “all men are created equal with certain unalienable rights,” to his constant refrain of “we, the people.”

It was in many ways a stronger speech than four years ago, more resolute, more seasoned, more ready to ensure that America lives up to the words expressed in the Declaration of Independence. It was a speech for a modern era, acknowledging the rapid change of the 21st century.

Go to:

http://www.usnews.com/opinion/blogs/Peter-Fenn/2013/01/22/obamas-inaugural-address-was-a-modern-speech-steeped-in-history

 

 

By Peter Fenn – 01/17/13 05:08 PM EST

The new TV ad from the NRA proves they have gone off the deep end.

They attack President Obama and his children. They intersperse images of guns as they refer to the protection that the president’s daughters receive. They call the president an “elitist hypocrite.”

Sick. Disgusting. Repugnant. Terrifying. All words used on “Morning Joe” to describe the ad and the NRA.

Watch the ad. Judge for yourself. Can anyone in his or her right mind justify a spot like this?

What were the NRA leaders thinking when they created such a shameful spot?

The facts are clear: All children of presidents are protected by the Secret Service. No one has ever, as far as I know, objected to this practice. (Except maybe the children, who would like a little privacy!) No one has ever thought it a good idea to leave the president, the first lady or their kids vulnerable.

The NRA is clearly deranged by airing an ad like this — clearly so hateful and so filled with venom and so out of control that one must question their mental stability.

What possible purpose can it serve to help solve the problem of gun violence in our society? The clear answer: NONE.

Stir up the base, anger the members, pour gasoline on a fire — despicable tactics that reflect more on the NRA than they can ever know.

This ad and this organization’s behavior convinces me that they are in serious need of drastic mental health help.

Joe Biden and Mitch McConnell Saved America From Fiscal Cliff

January 2, 2013 RSS Feed Print