Paul Ryan Will Not Balance The Budget

Not only will Republican budget guru Paul Ryan’s proposed budget raise taxes on almost everyone, it will also not balance the budget — the one thing it was designed to do!

Here’s the problem. That Congressional Budget Office score that Ryan cites as proof? It doesn’t estimate how much revenue his plan would bring in based on his new tax regime. Because the CBO never scores changes to tax policy — that’s the job of the Joint Committee on Taxation — its score was based on a revenue number (19% of GDP) that came from…where? Oh, right: Paul Ryan. Where did he get that number? He made it up.

The Tax Policy Center, on the other hand, did score Ryan’s tax proposals. Would you be surprised if I told you Ryan’s figures are a steaming pile of bullshit? I didn’t think so:

Just for kicks, here’s the relevant portion of the Center for Budget and Policy Priorities’ takedown of the whole ugly thing:

Assertions that the Ryan plan is fiscally responsible rest on a serious misunderstanding of a Congressional Budget Office (CBO) analysis of the plan. CBO only partially analyzed the Ryan plan. Contrary to some media reports, CBO has not prepared an actual cost estimate of it. CBO generally does not produce estimates of the effects of proposed changes in tax policies; that is the responsibility of the Joint Committee on Taxation. In its analysis of the Ryan plan, CBO did not attempt to measure the revenue losses that Rep. Ryan’s proposals would generate.

Instead, as its report states, CBO simply used an assumption specified by Rep. Ryan’s staff that the overall level of revenues would remain unchanged from what the federal government would collect through 2030 under current policies, and would equal 19 percent of GDP in later years. CBO did not find that the Ryan plan actually would achieve these assumed revenue levels. (For commentary by Howard Gleckman of the Tax Policy Center on the widespread misunderstanding of the CBO analysis, see here.)

The reality is different; TPC finds that the Ryan plan would result in very large revenue losses relative to current policies. TPC estimates that even with its middle-class tax increases, the plan would reduce federal revenues to 16 percent of GDP in 2014. Because the tax cuts for the wealthy would dwarf the tax increases for the middle class, the Ryan plan would allow the federal debt to continue growing for a number of decades to come, despite its steep cuts in Medicare, Medicaid, and Social Security.

Disappointing, but not surprising. Honest Republicans are, after all, an endangered species.

Truth and Reconciliation

Following up on my last post, I’d just like to point out an excellent graphic the Times ran yesterday showing that, despite what the GOP would have you believe, use of budget reconciliation for major legislation is not even remotely uncommon.

Irreconcilable Differences

One of the more annoying tropes of the past few weeks, as it has become more and more likely that the Democrats will finally get their act together and inch past the goal line on health care reform, is the idea that budget reconciliation is somehow ”unprecedented” and “extreme” and ”jamming it through.”

This is bullshit, plain and simple. A few points:

First, it is, without question, not unprecedented. Even that dastardly Mainstream Media know this:

Second and more imporantly, the Democrats have already passed health care reform. All that’s left to do is find a way to reconcile (not exactly what “budget reconciliation” means, but we’ll get to that) the House and Senate bills. The difficulty is that since the Second Boston Massacre — WHICH CHANGED EVERYTHING DIDN’T YOU KNOW – the Democrats no longer have 60 votes in the Senate to pass an amended bill.

With the Senate GOP voting in lockstep against everything, the only way to get anything close to the (again, already-)passed bills to the President’s desk is for the House to pass the Senate’s bill. There are significant differences between the two, but the foundation is largely the same. What matters now is whether Pelosi and co. can get enough “no” votes to switch to “yes.” (And at least fewer “yes” votes to switch to “no.”) That is literally all that matters for health care to pass. Reconciliation is only a small part of the bargain between the House and the Senate to get that done.

If you watch CNN, however, you’ll see Mary Matalin, who is about as pleasant as bedbugs, drone on about how reconciliation is a travesty of democracy and will destroy the Democrats’ majority come November. Every other cable news network will carry another loathesome version of the same drivel. You’ll read more of this in the Washington Post and the Wall Street Journal and in a thousand witless posts on the Corner.

It’s all a big red herring.

Budget reconciliation, as I understand it, is just a patch for legislation that has already been approved. Because budget-related legislation is so complicated, involving so many committees, the budget reconciliation process allows policy changes to entitlements (such as MEDICARE) and tax laws to be passed in a streamlined, unfilibusterable way, to avoid total gridlock. After all, the federal government’s gotta have a budget, one way or another. If you’re really interested in the procedure, the House Rules Committee has a nicely dense summary.

In the case of health care reform, reconciliation will allow the Senate to appease House members’ concerns about things like affordability and the Medicare Part D “donut hole,” but not, since it’s not budget-related, things like the Stupak abortion language and the structure of the insurance exchanges. Still, still, still: all that matters is that the House pass the Senate bill.

The point is that reconciliation is the icing, not the cake. It doesn’t even actually have to happen for reform to pass. The worst fears of conservatives arrive earlier – health care reform is a few House votes away from becoming law. (I suspect the rumors of a smaller compromise bill are a political feint. Obama said as much yesterday.) The furor over reconciliation is merely a last-ditch effort on the part of Republicans to squeeze a little more political blood from the fight. They aim to tar Obama as a partisan, so they can run against him and his “socialized medicine” in the fall. Let them. Health care reform is too important, and too close, to be sacrificed on the altar of politics. The ineptitude of the Democrats over the past year has already guaranteed a bloody midterms. And the hubristic failure of Rove’s “permanent majority” should have Democrats realizing that huge majorities are unsustainable anyway.

Besides, if they don’t get health care reform passed, the Democrats are really screwed in November. They couldn’t be that stupid, could they?

The Road Ahead On HCR

I hope to have more original analysis in the next few days (before the Blair House summit), but in the meantime Jonathan Chait has a great, great post countering all the claims that health care reform is dead.

Update: More.

Quote of the Day

Here’s the President making a timely point on health care reform (emphasis mine):

At the Republican caucus, they held up—they said, we’ve got a plan; it’s going to provide everybody coverage at no cost. And I said, well, if that were true, why wouldn’t I take it? My wife Michelle thinks I’m stubborn sometimes, but I’m not that stubborn. Okay, let me think. I could have everybody get health care coverage that’s high quality, and it’s free, which I’ll bet is really popular. But I’m not going to do that. I’m going to go through the pain of really working through this hard process in Congress, getting yelled at and called a socialist, because I just — that’s how I roll. I’m a glutton for punishment. (Laughter.)

No, look, if this were easy and simple, first of all, somebody would have done it before. Seven Presidents have failed at this; seven Congresses have failed at this. If this was simple, it would have already been done. It’s not.

This much I know to be true: Americans don’t like complication. Which is part of why Obama, the former law professor, loathe to dumb things down, has trouble explaining policy to the American people in terms they can understand. Which is why I thought the State of the Union was mostly successful.

Mark Blumenthal, meanwhile, published a column this week that I think goes a long way towards explaining why Americans are generally against health care reform, until they know anything about it.

Why I Am Not A Conservative

A major topic of this blog since its inception has been the vacuous, uninformed nature of right-wing political discourse. I bemoan this fact because I believe in a robust dialogue, and as a temperament I believe conservatism has much to offer our politics. But what passes for conservatism these days is, in my opinion, a mostly content-free ideology. It’s nice to have this confirmed on my own blog.

A reader named Karl Keller has been commenting, quite passionately, on a few recent posts. I don’t know who Karl Keller is or anything about him, but since I want to take my readers’ dissents seriously, I thought his comments deserve a detailed response, which I try to make after the jump.

(more…)

The State of Our Union Is… Sassy!

The State of the Union is so overhyped. The speech rarely has any substantive political effect, and it’s important to remember that Obama’s first-year problem has not, depite the past month, been one of narrative. Matt Yglesias makes a great point today:

[W]hat we’ve learned time and again over the past year is that there’s only so far that great speeches get you. [...] Obama seized the mantle of responsibility, pragmatism, and seriousness while challenging the GOP to show some good faith and willingness to be a constructive partner in government. But what he’s never been able to do is to generate the kind of specific, concrete political pressure on incumbent Republican senators that inspires them to vote “yes” on his bills or confirm his nominees. And nothing in his speech changes that dynamic.

It wasn’t a great speech, but it didn’t need to be. No speech is every going to change Olympia Snowe’s vote, or make Lieberman less of an asshole. But what I saw, and what I think the American people saw, was a pissed-off President not afraid to call out his enemies. He’s angry, and so are we! It was a brilliant piece of performance art. Watching Boehner and Cantor smirk through Obama’s rousing defense of the stimulus and bailouts and tax cuts served as a reminder of the fact that the Republicans are simply refusing to legislate. They’re not doing their jobs, and they’re incredibly unpopular because of it! There’s a reason Obama is far more popular than anyone in Congress, and, pace Scott Brown, it’s decidedly not because Americans are against health care reform. The triumph of last night was the return of 2008 Obama, just when we need him.

(more…)

Creative Obstruction

The political fallout from Scott Brown’s insurgent win has me thinking about the nature of our democracy. The way the republic is set up, if a large enough group of legislators—say, hypothetically, the Senate Republican caucus—simply chooses not to negotiate in good faith with the other side, offering only ideological proposals that have no basis in reality—say, hypothetically, deficit reduction and no cuts to Medicare—they can completely obstruct the agenda of even a huge majority like that the Democrats currently have (and will continue to have, don’t let’s forget, even in the wake of the Brown-out).

There is a certain brash creativity to this.

The Republicans stated, quite loudly, as soon as President Obama announced his intention to pursue health care reform in early 2009, that they would kill it. Straight up said it. A moderate few pretended to negotiate, but according to Harry Reid “it was a waste of time dealing with [Republican Senator Olympia Snowe] because she had no intention of ever working anything out.” The GOP can claim to have offered alternative legislation, but look at Jim DeMint’s proposals and try to tell me with a straight face that they would solve any problems. You can’t.

The Republicans’ capacity to obstruct has much to do with Senate rules and procedures. Use of the filibuster has jumped to historical highs in the past few years. There are many people, myself included, who believe that America might be better off if the Senate were simply abolished. If wishes were horses…

The broader point is that American democracy is imperfect, and always will be. A small minority can, with audacity and consistency, stop the government in its tracks. That old dinosaur The Village Voice captured it best today with their headline: “Scott Brown Wins Mass. Race, Giving GOP 41-59 Majority in the Senate.”

All eyes now turn to Obama. His reaction will determine how the Democrats will govern with only a 19-seat majority in the Senate. I leave you, for a dash of hope, with Jonathan Chait:

Here is what I think will happen. The shock and panic will play itself out over a few days. Then the Democrats will assess the situation and realize that letting health care die represents their worst possible option. And then they will make a deal to pass the Senate bill through the House. I am not positive this will happen, but it’s my bet, because elected officials at the national level, dim though they can be, are usually shrewd enough to recognize their political self-interest.

In the meantime, the display of hysteria is actually disgusting.

Is HCR Dead Without Coakley?

Not necessarily. And now for some backtracking.

In my last post, I bemoaned the likely election of Republican Scott Brown in the Massachusetts special Senate election today as the death knell to passage of health care reform, since the obstructionism of Senate Republicans has made it impossible, pretty much since Obama’s inauguration, to pass anything without a supermajority.

That was probably a little hasty, and a little misleading. Here’s why:

1. Even if Brown wins tonight, that doesn’t mean health care is immediately dead. It would take at least 10 days, probably 15, to certify the election, possibly giving the Democrats time to push a bill through with interim Senator Paul Kirk’s vote. Of course, nobody prefers that HCR pass on a technicality or the outcome of a lawsuit over MA special elections law, but for those of us who think HCR is more important than politics, this outcome would be better than nothing.
2. It might not even matter what happens in the Senate. Nancy Pelosi is going around telling reporters that “we will have health care—one way or another” and Steny Hoyer was quoted saying the Senate bill “clearly is better than nothing.” These remarks seem to indicate that House Democratic leaders are willing to push the Senate version through, despite the abortion language that has Bart Stupak (ugh) and friends saying they’ll vote it down. Whether Pelosi has the votes remains to be seen.
3. Martha Coakley could still win. Nate Silver gives her a 25% chance of winning, and emphasizes an important fact about this:

People are acting, however, as though 25 percent is the same as zero percent. And—as disappointing as it might be to be in this position—obviously it is not. This is not some basketball game where the score suddenly became Brown 75, Coakley 25; a 25 percent chance of winning means, quite literally, 25 percent.

So let’s lay it out there: Brown is heavily favored to win, although it’s far from certain; the outcomes of special elections are notoriously difficult to predict. If Brown does win, passage of health care reform becomes significantly more difficult, although not impossible. No matter what happens, Lost returns with new episodes on February 2nd.

And one more thing: the outcome of one special election in Massachusetts is not a “referendum” on the President and his “liberal agenda.” That’s idiotic, and if you think it’s true you watch far too much Fox News and know far too little about MA politics. The tenor of this election reflects dissatisfaction with the corruption and hackishness of the good-old-boy Democratic party in Massachusetts—concealed for so many decades behind the enormous historical stature of Ted Kennedy—coupled with a populist Tea Party-style uprising over the economy and channeled into a contest between a charismatic unknown and a career pol who can’t campaign to save her life.

But you should still vote for Coakley.

Voting for Scott Brown Is Stupid

I’m serious. If you live in Massachusetts and vote for Scott Brown (or that other confusing “Kennedy” guy)  today, I will never forgive you.

Martha Coakley is a terrible, awful, no good, nearly worthless candidate—there were far better alternatives—but if  you don’t vote for her you are effectively voting against extending health insurance coverage to some 30 million people. There’s a decent chance you’re one of them!

There’s also the fact that Scott Brown is a crazy wingnut, but at this point I’m less concerned with that and more worried about the fate of national health care reform resting in the hands of a few moderate voters who are sick of the Kennedys.