Thursday, October 4, 2012

Final Thoughts on the First Debate

 "My 1-point plan for winning this debate: lying." (Source: AP)

I honestly hate debate formats. As someone who is into policy more than politics, I think it's a terrible forum for understanding what the candidates would do and whether or not their plans will work as they claim. And that's not even unpacking the veracity of their claims. Debates are a fine format for electing a High School class president, but probably not so good for a leader of a country.

With that being said, here is my long summary of the debate:

1. It is important to remember that the 10% or so of the persuadable and undecided voters remaining seem to care disproportionately about the deficit for some reason. Many of these people aren't following closely and aren't wonky enough to understand that especially after a near Depression, the economy/job creation and the deficit often work in the inverse of each other. That is, it makes more sense to run short term deficits in order to continue to boost the economy until you get closer to full employment. So thus "dealing with the deficit" in the short term means lower economic growth and less job creation.

But that is why the debate focused so much time on taxes and the deficit and therefore related issues of tax reform and entitlement reform. It should be noted though, those issues will have, at best, an infinitesimal positive effect on job creation. All of the liberal wonks I follow on Twitter were pulling their hair out during this part of the discussion, but it was probably worthwhile for undecided voters.

That being said, having duel discussions about cutting spending and creating jobs, as if both things exist in an unrelated vacuum, was curious. All those budget cuts that Romney supports would lead to job losses. Take his joke about PBS. A lot of people work for PBS and if you cut their budget, people will lose their jobs. There are dozens of other examples. Somehow the job losses resulting from cutting PBS's budget are OK, but potential job losses (or slowing job growth) from, say, increasing taxes a few percent on prosperous small businesses are unacceptable.

Romney chastised Obama for not supporting Simpson-Bowles and then admitted he'd accept no debt reduction plan that raised taxes in any way, even at a ratio of 10:1 spending cuts to tax increases. A good follow-up from Jim Lehrer would have been to ask Romney how he planned to cut a deal with Congress for tax reform and debt reduction, which Democrats and Republicans could support, without including these basic compromises. It would be a question that would take a candidate out of the abstract world and into the real world how bills become laws.


2. Chris Hayes made a great point in the MSNBC recap. The Obama team feels, and has felt for 5 years, that Obama's signature "brand" and most important characteristic is his likeability. He will not risk losing that edge by unnecessarily going negative in a debate when he's leading in all of the polls. Now, should the race tighten, you will probably see a more pointed Obama in the coming two debates. We shall see. Obama's modus operandi is to present a cool, calm, confident demeanor, and then have ads and surrogates do his dirty work. That way his hands stay clean. It's tough to argue against that strategy now, seeing how it has served him well since 2007. Also, the thinking is that a continuous series of ads in swing states on a daily basis work better at persuading voters than a few forgettable debate quips. Obama's debate strategy, even against Hillary Clinton, always seemed to be to just calmly present his case and stay on message, avoiding gaffes.

It may come as a surprise to the gang on MSNBC, but a fiery black liberal probably wouldn't do as well electorally as Obama has done. If, say, Chris Matthews' style was more popular with the public at large, he'd be hosting the network Evening News, not a dinner time show for political insiders on basic cable. And I mean that as no shot at Matthews, who I generally find entertaining and knowledgeable. It's just a fact.

 "Why didn't Obama attack Romney more like I would have?" (Source: Mediate)


3. Romney comes off well in these debate settings. He sounds like he's giving a presentation to a Board of Directors. Or perhaps making the case to a financial institution to help lend him money for a leveraged buyout of a company he intends to load up with debt and bankrupt in return for huge profits.

He has figures at the ready, even though they aren't always accurate and he sounds convincing. Every bullshit artist sounds convincing. He talks in "1., 2., 3." sequences, even if he doesn't really have three different points to make. Obama could learn to use more of the "1., 2., 3." setup in his answers rather than the "...and", "and also," "and let me just add..." framework, which tends to make his answers run on longer and make them less effective. Using the "1., 2., 3." setup encourages people to listen more closely because your answers have a beginning and end to them. With the way Obama answers a lot of questions you never know when he's wrapping up his main point or beginning to make a related point. Perhaps he should read this. And that leads to my next item.


4. Debates are about style and how you say what you are saying. Fact checkers have already showed Mitt was full of shit about most of his accusations and defenses of his plans ("what plan? what plan are you talking about? that's not my plan").  Obama seemed completely unprepared to deal with this more brazen morphing of Right Wing Mitt back into Moderate Mitt. During the long back and forth over the $5T cost of Romney's proposed tax cuts, Obama seemed exasperated at times and surprised that Romney could be so bold as to completely deny the plan he's been running on for 15 months in front a national debate audience.


 "Is he really denying the existence of the tax plan he's been campaigning on for 15 months?" (Source: Daily Beast)


5. Really, going back to 2006 when Romney began running for President, he's presented a sort of Potemkin Village candidacy, saying whatever he needed to say to win voters at that particular time. And then, as Jon Lovett noted, he has this masterful tactic where he feigns offense when you bring up the fact that he just did a 180 on an issue from where he stood 15 minutes ago. Then he'll restate the current position the rest of the night as if it existed all along, rinse/repeat.


6. And because of those flip flops, Romney came off more appealing to people by conceding the policy ground to Obama and the Democrats. Romney changed or lied about his position on $5T in tax cuts and how they would be financed, his proposed cuts to education, and his non-existent health care plan to replace ObamaCare, among other things. This is hardly the victory for conservatism that Reagan's debate win in 1980 was. This was a stylistic win for Romney, where he was forced to lie about substance in order to compensate for GOP policy proposals that are unpopular.


7. I'd need several separate posts just to dissect Romney's inconsistent message on ObamaCare and Health Care overall. But here are a few related paragraphs instead. I'm still not sure how Romney's argument that "RomneyCare is a great plan but should only be adopted on a state by state basis", passes any threshold for ideological consistency.  Sick people in Massachusetts have the same problems as sick people in Montana. And the basic Actuarial Management principles at the heart of both laws apply regardless of where your reside. You can't implement any one leg of the three-legged stool without either bankrupting private insurance companies and/or making the uninsured problem worse.

In short though, it is remarkable that 15+ minutes of the debate were spent arguing over a law that both men support in private, but only one is able to support publicly. Romney is unable to admit that he really supports it and has had to create this unconvincing opposition to the law as a whole, while agreeing with nearly all of the particulars. He mainly cites the newest Conservative argument against it: the Commerce Clause. This holds that State government control of health care is a brilliant model, but Federal government control of health care is the death of freedom (meanwhile, of course in neither case does the government control health care since it is still private insurance, but anyway...). If only the Republican party didn't go batshit crazy in 2009, Romney could have proudly run on his RomneyCare record, as he did in 2007-2008, and it would be settled bipartisan consensus that the law was fine. We'd just be arguing about what, if any, tweaks to make to it.

Finally, this point cannot be overstated about ObamaCare: If Romney wins and repeals ObamaCare, PEOPLE WILL DIE as a result of it. Or as the Tea Party calls that: freedom. That is not hyperbole. Just like that ad about Bain Capital, of course Romney won't be killing them personally. But these laws effect real people, not just numbers on a balance sheet. Stacy Lihn, who spoke at the DNC, will no longer be able to get treatment for her kid if ObamaCare is repealed because of the lifetime limit on coverage. As many as 89 million people would likely be left out of Romney's plan for covering people with pre-existing conditions. If a plan leaves out 89 million people, it may be a plan in that it contains a series of words strung together to make sentences that are readable, but that's not a health care plan that actually solves a health care coverage problem. It's plan for the sake of you being able to say you have a plan. Potemkin Village Romney strikes again! That has been every Republican Presidential candidate's health care plan since the 1980's: a one-page series of words that don't really solve any of the problems - soaring costs, access to insurance, compensating outcomes rather than activity, etc., but simply allows the candidate to say he has a plan, hoping to end a discussion of the details.


8. On one of the few big issues that Romney did not reverse himself, he admitted or at the least didn't push back against the charge that he and Paul Ryan are in favor of ending Medicare as we know it for those people currently under 55 years old. Obama accurately characterized this as a voucher plan that would ultimately put Seniors at the whims of private insurance companies at their most vulnerable times. We used to have a system like that before Medicare. And that's why Medicare was passed to fix that problem. The Romney/Ryan plan essentially attempts to reduce health care spending, not by implementing any cost-saving reforms, but by just shifting costs from the government onto seniors and recreating the same problems that existed before Medicare. By sticking to this and continually emphasizing "current seniors aren't affected", Romney just wrote a campaign ad for Obama for anyone under 55 years old.


9. Obama seemed to be setting up an argument that he never got around to making, perhaps getting stuck in the weeds trying to rebut Romney's lies. But if you are making the case that "things were awful when I took over, but things are improving now, so stick with me", then you need to champion the improvements. Obama didn't mention the nearly 5 million private sector jobs created in the last 2.5 years. He didn't mention rescuing the auto industry from bankruptcy. If you want to make the case that your campaign is moving forward in the right direction and Romney would take the country back to the policies that caused the problems, then say the name "George Bush" a few times. He did reference the tax cuts in 2001 and 2003 and the lowest rate of job growth in 50 years in the early aughts after the tax cuts were passed, and then the financial collapse/Great Recession. It was a solid lawyerly argument against Romney. But people don't remember what happened a week ago. Say "George Bush" a few times at the next debate. Then undecided voters will think, "Oh right, George Bush, yeah things were really bad during those years. Romney wants to do what?"


10. In conclusion, Romney did what he needed to do. He had a good debate "performance" and won it on the strength of his energy, tone, and delivery. The fact checkers are already doing an autopsy on his statements though and it's not going well.

We'll see if Romney's debate win ends up moving enough voters in the coming days to make this a close race down the stretch. All of the instant polls showed most people believed Romney won the debate by significant margins. But the same polling and focus group anecdotes showed very little movement by anyone who was still undecided. And it showed Obama's positive favorability rating was unchanged while, Romney's negative favorability rating only improved slightly. With polling averages showing Romney trailing Obama by around 48-45, Romney would need to win the votes of over 80% of the remaining undecided voters in order to win the Presidency. It's a very tall task that even two more excellent debate performances may not be able to salvage.

Friday, September 21, 2012

Ticket Splitters: History's Greatest Monsters

 Voters gonna vote (Source: Talkingpointsmemo.com)

I was having a back and forth on Twitter last night about the psychology behind ticket-splitting voters. Based on polls in Wisconsin, Virginia, and Massachusetts, a significant percentage of voters are voting for Barack Obama for President, and the GOP candidate for Senator - in these cases splitting their tickets Obama/Tommy Thompson (WI), Obama/George Allen (VA), and Obama/Scott Brown (MA).

Based on the opinion of Alec MacGillis, who has more intimate knowledge of MA politics, the Obama/Brown polling is not that surprising. But still, polls show Obama's lead 25-34 points in the Bay state, while Elizabeth Warren and Scott Brown have basically been running tied for most of the year with them trading small leads.

The Obama/Thompson polling trends are similar. Obama's margin has been larger than Tammy Baldwin's margin over Thompson. And some polls have Obama and Thompson leading. It's been an odd few years in Wisconsin politics with many of the same voters supporting both Obama and Governor Scott Walker, which is sort of like supporting both the Red Sox AND the Yankees. But the Obama/Allen polling is the most curious. Allen represents Old Virginny. Obama's electoral prospects in VA are bright largely because of the influx of college-educated white collar voters in the Northern VA suburbs who are either transplants or have become more liberal as years have passed. But some 3-5% of voters in VA seem to be supporting both Obama and Allen. Although Tim Kaine did have a good poll earlier this week which shows him running about the same as Obama.

People should not underestimate how good of a politician Allen is and apparently how likeable he is in VA. Let's recall in 2006, it was a strong Democratic midterm election year and Allen used a racial slur during the campaign ("Macaca") and yet still barely lost by just 7,231 votes with over 2.36 million votes cast.

And that leads up to my point that people who split national tickets are really hurting our country, mainly by sending mixed electoral messages and increasing the likelihood of gridlock. I understand if you vote for one party locally for mayor or city council or even some statewide races and then vote for the other party for Senate or President. Local interests are different than national interests and often for local elections you do vote the person rather than the party. And some of us live in one-party towns. But nationally, you should vote the party with whom you most identify, period.

For all the 3rd party mumbo jumbo about how the two major parties are basically the same, they are actually quite different. Just compare the party platforms, the competing Obama/Romney tax and budget plans, etc. If you don't see any major differences, then you are just being willfully ignorant and/or justifying your apathy. If you actually pay close attention to politics and have a strong opinion, then it seems hard to reconcile how you'd be an "independent" who could vote for Bush in 2004 and Obama in 2008 or 2012. I don't doubt a lot of those voters exist. I just doubt they really pay close attention to politics and rationally think through their decisions.

You grow up presumably forming some opinions on issues and develop a worldview. And then you look at the two parties and figure out which one is most closely aligned with your views, which one addresses your pet issues, and then you vote that party. And over time (sometimes decades) you hope to keep moving the ball forward a few yards at a time. That's how you exercise political influence rationally.

Perhaps back in the days when the filibuster wasn't abused, splitting tickets for President and Senate was more acceptable and possibly even strategically desirable if you were a moderate voter. The theory is the President would then have to compromise with the Senate, which may be controlled by the other party. And then they'd reach some swell bipartisan compromises on all the big issues of the day. Bwahahaha! And then you woke up or you turned off that Aaron Sorkin show you were watching.

That sounds great, but that hasn't really been politically attainable since the regional realignment of the parties neared completion in the 1990s and the use of the filibuster increased in the Senate. These days it works like this: if 41 or more Senators don't feel there's a political incentive to vote for a bill nor feel there's a political price to pay for voting against a bill, they won't vote for it. It doesn't matter if it's something they used to support. It doesn't matter if it's a bill they sponsored in the recent past. The Senate is currently among the world's worst legislative bodies. Voters in VA, WI, and MA who are going to vote for Obama but also vote for the GOP Senate candidate, are decreasing the chances of passing meaningful legislation by potentially making the Senate even more dysfunctional.

And the flip side of that is if you don't want to see Romney become President, then if he wins you are increasing the chances that he'll be working with a majority in the Senate by splitting the ticket. To most Obama supporters, that's actually a scarier prospect and more a motivation to vote for Democrats than the inverse.

You are presumably voting for Obama because you like him and/or agree with his vision for the country and want to see him to succeed and get things done. So a vote for the GOP Senator would make an Obama win less decisive and make it less likely that he'll be able to succeed and get things done. It's self-defeating, irrational, somewhat ignorant of the stakes in this election, and likely will contribute to more inertia in Washington.

I urge you, if you know any of these ticket-splitting monsters who usually lean Democratic, grab them by the collar and explain to them why they need to snap out of it and fall in line before they destroy America! Or something. And if you're typically a Republican voter who is splitting tickets and voting for Democrats, I think you're being completely illogical, but keep up the good work!


Thursday, September 20, 2012

Why Obama is Winning on Taxes

I said relax. I got this.

Something is happening during this Presidential campaign that I never thought I'd see: a Democrat both wanted a debate on taxes and is so far winning it.

It took a few long steps to get there, but it started last year when President Obama began focusing like a laser on Paul Ryan's budget and on the issue of fairness in the tax code. Mitt Romney obliged by running further to the right than he probably needed to in the primary, resulting in him putting out a revised tax/budget plan that was very similar to the Ryan plan.

In 2010 the Republicans re-took the House mainly due to three issues:

1) the distortion on the Medicare "cuts" in Obamacare
2) the deficit/spending cuts
3) the economy

The first was a result of an older whiter electorate and the second was driven by the energy created by the Tea Party and the cynicism of the GOP caring about deficits only when Democrats are President. And the third was expected given the high unemployment rate and the Democrats controlling the entire government. David Frum pointed out, the Republicans cynically won back power without understanding why and then overestimated the electorate's support for their "real" agenda.



So it was a bit of a gift that one of the first major economic or budget visions the GOP put forth after winning the House was a budget that cut taxes on the rich, ended Medicare as we know it, and still didn't balance the budget for 40 years. In one House vote the Republicans lost credibility on the Medicare and deficit issues. And with no plan to create jobs and address this particular economic situation and not the one they wished existed, they began losing support on the economy as well.

Obama and the Democrats spent months earlier this year hitting Romney on Bain and creating narrative that Romney was a heartless CEO unconcerned about the plight of middle class Americans. As Jonathan Chait noted, then Obama began moving to phase 2 earlier in the summer, which was talking the Romney/Ryan budget and tax code fairness. If voters didn't feel Romney really understood and cared about their problems, they'd be more willing to accept Obama's argument about the choice between the two competing visions for the country.

Obama knew the GOP couldn't very well admit that they don't really care about deficits. So he was able to put Romney in a box over his tax plan. If he did indeed want to cut taxes on rich people above all else and since any plan has to be absolutely deficit-neutral, lest he want to annoy the Tea Party and the Randians, then there is no other way to make that plan work without deep spending cuts to popular programs, increasing taxes on the middle class, and/or eliminating or reducing many middle class tax deductions and tax credits through some type of comprehensive tax reform plan. It is now September 20th, and Romney has still yet to reveal any details about how this plan would work.

The Obama campaign deftly called the GOP's bluff on their fake concern over deficits and contrasted it with their overarching goal of lowering taxes on the rich. And they were able to show how there was no way to achieve both of those goals without screwing the middle class. With Romney's lack of credibility with his base he had no room to maneuver or nuance this issue, so he was stuck defending a plan that either can't work or will screw the middle class. All that doesn't fit on a bumper sticker, unfortunately, but the groundwork was laid for months. And enough voters apparently have come to understand this argument. As President Clinton said, it's arithmetic.

Tuesday, September 18, 2012

Why do 47% of Americans Pay No Income Tax?

 .....And what matters about Mitt Romney's revealing statement.



Last year conservative pundit Ramesh Ponnuru destroyed the argument of the "freeloader myth." And while I ultimately disagree with Ponnuru's conclusion (that the point of conservatism is to make sure nobody's taxes ever get raised), the rest of his column is on point. Ponnuru painstakingly takes us through the tax code to explain why poor, elderly, and many middle class families pay no net federal income taxes. And he has background on the history of the policies that created this situation.

I really didn't want to have to step through the tax code again, since doing my own taxes is brutal enough, let alone projecting a fake person's taxes, so I'll let Ponnuru tell you:
According to the Tax Policy Center, provisions of the tax code that exempt subsistence levels of income from income taxes — the standard deduction, personal exemption, and dependent exemption — are the reason for about half of the tax filers who owe no income tax. Another large group of filers pays no income tax because its members are elderly and benefit from such features of the code as the non-taxation of some Social Security benefits. The tax credit for children and the earned-income tax credit, an effort to boost the pay of low-income workers, wipe out income-tax liability for other taxpayers. Those credits are “refundable,” meaning that beneficiaries can get money on top of paying no income tax. Other provisions of the code account for the rest of the 47 percent: education credits, the non-taxation of welfare payments, itemized deductions, and so on.
Also as Ezra Klein noted in a blog post last night, of the roughly 47% who pay no net federal income taxes, over 45% of those can be easily explained.


(Source: The Tax Policy Center)


1) 28.3% of the country are middle income folks who pay no net federal income taxes due to a series of tax credits and deductions: Personal Exemption, Dependent Exemption, The Child Tax Credit, the Home Mortgage Interest Deduction, and depending on how far their income has dropped, the Earned Income Tax Credit and other deductions for things like Student Loan Interest. But of course people still pay regressive payroll taxes along with local and state taxes. And of course everyone pays the flat sales and sin taxes that help fund state and local government services.

2) 10.3% of the country are elderly and end up paying no net federal income taxes due to the tax laws that exempt some social security benefits from taxation.

3) 6.9% are poor people with incomes under $20,000. Or as the Republicans call them, "the lucky ones." Again, they take advantage of many of the tax credits and deductions described previously. It's just that their incomes are so low, it results in them paying no net federal income taxes.

4) Less than 1% are the rest - most likely the ultra-rich with complicated tax shelters and some other tax cheats.

Romney has spent the last month or so defending his vague tax plan against valid charges that in order for it to be deficit-neutral, then taxes on the lower and middle income people will go up and/or many lower and middle income deductions will be reduced or eliminated. It's going to be a lot harder for him to make a convincing case that he does not intend to raise taxes on the lower and middle incomes after his revealing comments from this week. His statements show a person who is disdainful to those who are suffering and barely getting by.

And moreover, he and his rich brethren view tax avoidance as a proud moment of individual accomplishment. "I pay all the taxes I'm required to pay and not $1 more" is Romney's standard defense of his tax rate. Yet when lower and middle income people take advantage of similar benefits in the tax code, he treats them as freeloaders. Project much?

For a multi-hundred-millionaire paying, at most, a 13% tax rate in his only tax return we're privy to, his conclusion apparently is that the major unfairness in the tax code isn't that people like him are paying too little, but that middle class people have too many tax deductions and the poor and elderly are extremely fortunate to have insufficient taxable income.

The question is was this just another Romney pander to the economic conservatives in the GOP base or does he really believe it? If it's the former, then it shows a real lack of courage on his part and a questionable cynical strategy at best. And frankly it shows a lack of competence on the campaign trail that is puzzling for someone whose main selling point is executive success. If it's the latter it reveals a person who, in spite of his CEO background, has completely misdiagnosed the real problems in the country during the last decade. Voters should reject him for it either way.

Monday, September 17, 2012

Ezra Klein Demolishes Romney's 47% Argument

 (source: Mother Jones)


A video surfaced today, first broken by David Corn of Mother Jones with Mitt Romney talking about 47% of the country (the number who roughly pay no income tax) with the edited comments in the image above.

And well, I'll just re-post Ezra Klein's twitter timeline from earlier today.

















And then after Romney gave a statement, Klein responded with another series of tweets: