Article first published as GOP vs. Dems; No Compromise Equals No Solutions on Technorati.

Politics can be very complicated, or at the very least confusing. Case in point: what is it about the Republican pronouncement of “NO COMPROMISE” that President Obama and the congressional Democrats don’t understand?

Did they miss it when John Boehner, the presumptive Speaker of the new Republican controlled House, announced that, “This is not a time for compromise?”  Perhaps they misunderstood high-ranking Republican House member, Mike Pense of Indiana, when he said, “Look, the time to go along and get along is over,” even though he reemphasized, stating, “If I haven’t been clear enough yet, let me say again: No compromise.”

Is it possible that the President took Senate Minority Leader Mitch McConnell’s statement that, “The single most important thing we want to achieve is for President Obama to be a one-term president” as some sort of conservative jest?

It’s hard to tell what the President hears when congressional Republicans throw down the gauntlet and demand that he move in their direction. But, in response to the wave of emboldened Republicans taking intransigent positions against any sort of compromise, President Obama told the nation, “I believe there’s room for us to compromise and get it done together.”

The saying goes, “Fool me once, shame on you; fool me twice, shame on me.” Fool me over and over again, and maybe the people who believe I’m actually being fooled are the ones being hoodwinked. Is President Obama really so foolish as to believe that the Republicans will engage in open, good-faith negotiations, or is he merely a performer in a stage show written and produced to convince the American people that somebody in Washington wants the status quo to change?

When the President spoke in Cleveland in September, he came out swinging. He artfully painted the Republicans as the champions of the very wealthy and articulated a plan for the extension of the Bush tax cuts that drew a line in the sand, defining $250,000 of taxable income as the divide between the middle-class and upper-crust. It was the perfect issue for the closing weeks of campaign 2010, but cowardly Democrats backed away in fear that the Republicans would paint them as tax-and-spend liberals.

Well, not only did the Democratic retreat fail to impress any independents, but it also ensured that there would be no resurgence of enthusiasm within progressive ranks. In fact, the real story of Election 2010 wasn’t the great turnout of Republican supporters, but rather that blacks and young voters stayed home. If even half of those who poured out to the polls in 2008 had been moved to vote, the election results would have been much different.

But whatever the case, the 2010 election is over, the Democrats got their collective butts kicked, and the Republicans have already started Campaign 2012. Republican leaders now insist that the election was a refutation of President Obama’s policies and promise a Republican led Congress that will focus on jobs and the deficit.

Americans rightfully rejoice that the promised focus is exactly where it should be, but in what has become the united chorus of one-trick-pony conservatives, the legislative remedy being offered is the extension of the Bush tax cuts for the wealthy. In fact, fed by their new found sense of power, Republicans have become more intractable regarding any compromise on the wealthfare benefits and now insist that the extensions for the rich be made permanent.

Prior to the election, Republicans seemed amenable to a potential decoupling of the cuts along the lines suggested by President Obama. The notion was that cuts for the top 2% might be extended for a limited time period while those for the bottom 98% were made permanent. But according to House Minority Whip Eric Cantor, there will be no such compromise. In a recent interview, Cantor told Greta Van Susteren of Fox News that the election gave the GOP a mandate to hold fast and accept only an extension of all cuts.

Just how the Republican leadership can reconcile their position on the tax cuts with their promise to focus on either jobs or the deficit is the subject of some serious snake oil peddling.

According to Cantor, it’s all about clearing up that “uncertainty“ the Republicans keep talking about: “We’ve got to put certainty back into the game and get these tax rates to stay the same.” But of course this is complete nonsense, since whichever way the cuts are decided, once the decision is made, the uncertainty is removed.

To the man, each of the Republican leaders has also associated the cuts for the top 2% with small business, claiming that 50% of small business revenue will be affected. Sadly, the small businesses they’re referring to are large hedge funds, law offices, and billion dollar companies like Bechtel and Koch Industries. These are the clients of the Republican Party, not the 98% of all small businesses that make less than $250K.

The sad truth is that no respectable economist believes that cutting taxes for the rich will do anything to create jobs. That horse just doesn’t run anymore — not since the results of 8 years of the Bush presidency where such cuts were a mainstay were tabulated and found to be severely lacking. The worst job creation record since the 1940s and the first decline of median household income of any cycle since 1967 are not sound arguments for repeating the policy.

And where the tax-cuts-create-jobs argument is no more than a con-job, even that bar is too high when discussing the impact on the deficit. Virtually all reputable economists agree that tax cuts are the worst form of economic stimulus, and cuts for the rich the worst of all. The Republicans are essentially without even a distorted con to explain away the $700 billion cost of the tax cuts for the top 2% over the next 10 years.

The cuts the Republicans are fighting for won’t create jobs but will add significantly to the deficit. These “fiscal conservatives” espouse fiscal responsibility and feign help for small business and middle-class America but willingly sacrifice both for the wellbeing of their corporate overlords. And the Democrats respond by offering compromise.

Just what part of slam dunk, hanging curve, lob-ball pitch do the Democrats not understand?

The Democrats need to go back on November 15 and work to pass the extension of the Bush tax cuts for those making under $250K during the lame duck session. It’ll be interesting to watch the Republicans argue why the very rich need the cuts and explain to the American people why increasing the deficit for those who don’t need the money makes sense. Their argument promises to be a mind-numbing spectacle of double-talk and diversion.

This is a win-win for the Democrats — any compromise is just once again playing into Republican hands and allowing them to set the agenda and color the conversation. The Democrats need to accept the fact that the Republicans who would not negotiate in good faith while in the minority are certainly not going to do so now. They need to figure out that the Republican campaign for 2012 has already begun and launch their counteroffensive. If they’re not willing to do so, they might as well just start packing their bags now.

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Okay, the midterm election is another day closer, and here’s the next installment of my Voter’s Guide. So, if you have the time and are so inclined, you can read on. I’ll give you my position on each issue and also share why I’m voting the way I am.

Of course, if you’re a conservative, you’re not likely to agree with my positions, as I just today reviewed the guides assembled by several Democratic leaning groups, like the Courage Campaign, CREDO and the California Democratic Party (okay, so a little more partisan than just a lean), and it looks like I’ll be voting the party line on all issues for which they’ve taken a position. Perhaps this content could still have some value for conservatives though — as an anti-guide, or maybe just to help understand why somebody might vote along the Democratic line.

Proposition 22: Prohibits the state from borrowing or taking funds used for transportation, redevelopment, or local government projects and services.

Under the State Constitution, state and local governments share revenue from certain sources. This arrangement leads, from time to time, to the state affecting the distribution of funds to local agencies. This initiative will apply new limits to the authority of the state over local finances.

Specifically, the measure will limit the state’s access to fuel tax revenues, including temporary borrowing for cash flow purposes; it will also prohibit the redirection of redevelopment funds and eliminate the state’s ability to temporarily shift taxes from cities, counties and special districts to schools. There is also a provision to prohibit the use of Vehicle License Fees to cover state mandated costs.

In a nutshell, this initiative is designed to tie the state government’s hands in matters of the distribution of shared revenues. On the surface, this seems to have some merit. Those promoting the initiative label it a measure to “stop state raids” of local funding. Who wouldn’t be for that?

The problem is found in the detail. First off, Prop-22 attempts to constrain the state at a time when we have a $20 billion budget crisis. And it does so in a manner that prohibits the state from even performing such innocuous maneuvers as temporary borrowing to avoid cash flow issues. It also takes money from schools and codifies into the State Constitution protections for redevelopment agencies.

These measures seem unwise and imprudent in such a time of fiscal crisis. Proponents argue that the money should flow to its originally intended targets, while the opposition would argue that when money is tight, it should flow in order of precedent for the services most needed.

Good organizations are split on this proposition, with cities, most police, and local firefighters in favor, and teachers, nurses, and state firefighters opposed. The truth is that, if passed, the initiative will take significant funds from schools and healthcare and send it to redevelopment agencies and the private developers who rely on their funding. This is just bad policy and deserves to be defeated by an informed electorate.

Proposition 23: Suspends implementation of Air Pollution Control Law (AB32).

The state enacted AB32, the California Global Warming Solutions Act, in 2006. AB32 set a target of reducing the Green House Gas (GHG) to their 1990 levels by 2020. The legislation required the Air Resources Board (ARB) to adopt the rules required to make this happen. Proposition 23 seeks to suspend the implementation of AB32 until the unemployment rate in California drops to 5.5 percent or below for four consecutive quarters.

Proponents of the initiative promote the measure as a smart move to minimize energy costs and spur job creation. They insist that the move is needed, in spite of pollution concerns, because of the state’s $20 billion budget deficit and high unemployment. They contend that, while Global Warming may be a serious concern, California cannot solve the issue on its own.

What the proponents don’t want to reveal is the fact that since 1970, California has had only three periods when the unemployment rate was below 5.5 percent, and that those periods each lasted only around 2-1/2 years. The fact is that with unemployment currently over 12 percent, it will be a long while before California experiences a full year where unemployment dips below 5.5 percent.

The other thing that Prop-23 supporters don’t want California voters to understand is that main backers of the proposition are Valero and Tesoro oil companies — two Texas firms who are amongst the worst polluters in the state.

This proposition has nothing to do with jobs. These oil companies are simply trying to use the state’s unemployment situation as leverage to rationalize legislation that will only serve to increase pollution and bolster their bottom lines. For them, this is all about maintaining the status quo, about keeping the profits in the coffers of polluters instead of transferring the wealth to a new generation of clean energy companies.

California is on the leading edge of developing a clean energy economy. Millions of jobs will be established as this effort is allowed to move forward. Californians need to reject the self-serving propaganda of these old-world, dirty energy polluters and embrace the future. Clean energy will return America to the forefront of technology, establishing new export industries and putting the planet on a track for a sustainable future, while simultaneously addressing our nation’s security and economic issues associated with dependency on foreign oil.

Prop-23 is a death blow for progress that serves but one purpose — to save the profits of polluters. There is absolutely no reason to vote in favor of this proposition except to support dirty energy and the oil companies behind it. VOTE NO — Please!

Proposition 24: Repeals recent legislation that would allow businesses to lower their tax liability.

The background on this proposition is that the legislature and governor recently made certain agreements that changed the rules for business tax treatment in California. This proposition seeks to repeal these deals and return the tax rules to their previous status.

Prop-24 will repeal deals involving business use of financial losses, the determination of income for multistate businesses, and the ability of businesses to share tax deductions.

With regard to losses, the initiative will repeal the deal that allowed businesses to claim present losses on amended returns for previously filed tax years. It will also return the allowance permitting losses to be carried forward for 20 years back to only 10 years.

On the topic of California taxable income, the measure will eliminate a new rule that allows businesses to be taxed based only on the portion of their sales in California. It will return the process to its former state where business income was based on three factors: the value of the businesses properties in California, its payroll within the state and its sales. It will also, obviously, prevent business from changing the method they choose to use each year.

Finally, the initiative will repeal a deal where businesses within a unitary group of businesses were allowed to share tax credits, and it will return the rules to their former status where only the business that earns a tax credit can use it.

The fiscal impact of Prop-24 amounts to an increase of state revenue of around $1.3 billion by 2012-13. Most of that increase will be channeled to schools under Prop-98.

Proponents of Prop-24 label the measure the “Tax Fairness Act.” Opponents call it the “Jobs Tax.” Therein lies the debate. But oddly enough, Republicans and Democrats alike support Prop-24. Why? Because they understand that giving special tax breaks that apply only to multistate businesses is not only bad governing —  it’s also BAD BUSINESS.

California is in dire economic straits, and making special deals for large, multistate businesses that will greatly reduce tax revenues and require further cuts to essential services is as imprudent as it is unfair. Businesses that are based in California need to pay taxes to California, regardless of where they make their sales — just like other California businesses.

A vote for fairness is in order — vote YES on Prop-24.

So, that’s installment #2. If you’re interested, stay tuned and tomorrow we’ll finish the propositions with installment #3 of Dave’s 2-cents on the California election.

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Article first published as Obama Takes a $50 Billion Infrastructure Punch at the GOP on Technorati.

Speaking at a Labor Day rally in Wisconsin yesterday, President Obama announced a new $50 billion infrastructure spending plan. Of the new initiative, the President told the crowd of union workers that, “This will not only create jobs immediately, but will make our economy run better over the long haul.” He also warned that, “If we are going to get anything done, Republican cooperation, which has been all but non-existent recently, will be necessary.” Can it be that the President actually believes he can get Republican support? The pragmatic answer would have to be, not unless he’s lost his mind. So, assuming that President Obama is still in control of his mental faculties, why present this new initiative?

The obvious answer is “politics.” The President’s speech was not confined to the new infrastructure spending plan. He also used the opportunity to fire a salvo at the Republicans in Congress and set the stage for the Democratic argument for the final two months of campaign 2010. Not only did the President contrast the need for Republican support against their consistent record of obstructionism, but he also made the case that should the Republicans be returned to power, they will attempt to revive the very same agenda that created the crisis in the first place.

“They’re betting that between now and November, you’ll come down with amnesia,” said the President. “They think you’re going to forget what their agenda did to this country,” he continued. He’s right, of course, but then the odds appear to be firmly in the Republican’s favor, and their bet anything but a long shot. The people have already forgotten — haven’t they? Why else would they support the Republicans?

It’s good that President Obama is finally taking some initiative to help frame the debate, but he’s come to the party so late that most people have already made up their minds. Where was the President while the Republicans thoroughly polluted the well with their fact-free propaganda? The best that can be hoped for at this juncture is that a newly invigorated debate that contrasts Democratic substance with nauseating Republican hypocrisy will motivate Democrats to get out and vote. But with little else left in their bag of tactics, this is likely a good choice, although as stark as the contrast may be, one must question whether or not anyone’s still listening.

Democrats have been too silent for too long, allowing Republicans to spin some whoppers into commonly accepted truisms. Distorted perceptions are so keenly ingrained at this point that the Obama administration doesn’t even want to associate their infrastructure initiative with the word “stimulus” — this in spite of the fact that, according to all objective measures, the Stimulus has been extremely effective. It’s created as many as 3.3 million jobs and added as much as 4.5% to the GDP, yet President Obama continues to avoid singing its praise, thereby opening his flank to further GOP sniping. But regardless, the non-stimulus infrastructure initiative should provide an excellent opportunity for Democrats to bring core party differences to the forefront.

No sooner had the President announced the infrastructure plan when congressional Republicans started their predictable rhetoric. Senate Minority Leader, Mitch McConnell was quick to color the proposed bill as having “more than $50 billion in new tax hikes.” Of course, he was referring to the fact that the infrastructure spending that would rebuild or restore 150,000 miles of roads, add 4,000 miles of railway, target improvements to the U.S. air traffic control system and create an “Infrastructure Bank” to coordinate funding and planning of projects would all be fully funded, without impact on the deficit, by ending various tax breaks for oil and gas companies. Like the Democrat’s plan to fund aid for teachers and firefighters by ending tax loopholes that encouraged corporations to ship jobs overseas, McConnell and his cronies are against anything that might reduce corporate profits.

Never wanting to be left out, the man who wants to be Speaker of the House, John Boehner, was also quick in his criticism of the plan. “As the American people, facing near double-digit unemployment, mark Labor Day by asking, where are the jobs, the White House has chosen to double-down on more of the same failed ‘stimulus’ spending,” said Boehner in a prepared statement. Long a champion of the wealthy, Boehner failed to mention how his ongoing commitment to self-interest has consistently driven his obstruction of anything and everything that could help jobs. Yet, the man who called the healthcare legislation “Armageddon,” who feigns concern over the deficit yet supports tax cuts for the rich, who supports small business but fights against small business aid, who ignores every statistic on the Stimulus and paints public employees as “special interests,” wants everyone to believe that he has a plan to, “create jobs by eliminating the job-killing uncertainty that is hampering our small businesses.”

The fact of the matter is that Congressman Boehner is the creator-in-chief of the “job-killing uncertainty” he so often calls to mind. He and his Senate counterpart, Mitch McConnell are stuffed so deep into the pockets of Big-Business that they’ve lost sight of their moral compasses. Together, they are the wingmen of a Republican party whose plan to create jobs consists of a “Roadmap for America’s Future” that promises to cut into Social Security and Medicare in order to fund more tax cuts for the rich. Just how a tax cut that would provide 117% of its relief to the top 1%, while increasing taxes on the bottom 95%, will help create jobs has yet to be explained. But this is just SOP for the GOP — the fiction and friction party.

Obama started a new conversation yesterday. He took off the kid gloves and put on the boxing gloves. He fired a few combinations, mixed it up with some body blows, and showed the Republicans for whom they truly are. The Republicans responded with some blind flailing and cover up. Round 1 goes to Obama, but the fight has just begun. Fortunately for Democrats, if called on the facts, the Republican’s defense is wafer thin. If the President continues to press, he will easily reveal their complete lack of substance. Let’s hope that President Obama fights to the finish. America needs a champion for all Americans.

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