Mediaboss Marketing

Senior Democrats in the Housearereleasing a major proposal on the economy Monday meant to lift the incomes of the lower and middle class. Among other things, Rep. Chris Van Hollen (D-Md.)wantsto reduce tax bills by $2,000 for every family earning less than $200,000 a year.To replace that money in federal coffers, Van Hollen would taxtrades in the stock market andwould get rid of manytax breaks that disproportionatelybenefit the wealthy. It's a populistplan that wouldredistributesome $1.2 trillionfrom the richest Americans to the middle class, andit won't move an inch in the Republican Congress. That said, Republicans recognize they need an answer of some kind to show they understand the financial difficultiesof working Americans. "You talk to any pollster, on the Democratic side or the Republican side, they're in complete agreement on the idea that there has to be an economic populist message,"Matthew Dowd, a campaignstrategist for former president George W. Bush, told The Washington Post. Conservatives havebeen busy over the past few years brainstormingnewpolicies on the economy. The problem for Republicans is thatnone of those ideaswould be an easy sell for aspiring G.O.P. candidates. Still, they have discussed some ideas that could be both conservative and populist at once. Here are a few:

1. Financial support forfamilies andlow-wage workers

Republicans have also proposed direct financial help, although for a smallerportionof the working class.Sen. Mike Lee (R-Utah) wants tomake raising children less costly by increasing the child tax credit. Sen. Marco Rubio (R-Fla.), himself a possible candidate for the presidential nomination, hastalked aboutsweetening the potfor low-wage workers, an idea that President Obama also supports in principle. There are a couple of complications. The first is that while Democrats have no qualms about proposing major tax increases on investors and wealthy Americans, Republicansdo, and they still need a way toreplace the money the Treasuryloseswhenthe working class pays less in taxes. A tax increase is probably out of the question, but even simplifyingthe tax code and producing more revenue by eliminating tax breaks wouldstill prove challenging for Republicans, asformer Rep. Dave Camp (R-Mich.) discovered. Also, even ifthese tax policies could be paid for, many Republicans still feel strongly thatthe federal government should not redistribute wealth, and they've argued that Lee's proposal, for example, would redistributewealth from people without children to parents. Republicanpresidential candidates will likelyhave to convince the conservative establishmentthattheir tax plans are not a de facto redistribution of income.

2.Shorter prison sentences

The United States has more people in prison than any other country. Lengthyprison terms not onlyrestrictthe financialprospects of families in impoverished neighborhoods where crime often seems like the only way to make a living. Prisons arealso expensive to maintain, and they'rehamperingthe economy as a whole. Lee andRep. Paul Ryan (R-Wis.), among others, supportmore leeway forfederal judges in handing downsentences, rather than attaching minimum sentences to certain crimes.Over time, as current prisoners are released and future inmatesserve shorter terms, the incarcerated population would decline. Last year may have markedthe beginning of the end of being "tough on crime"as a reliable strategy forwinning elections. Manyconservative politicians have endorsed a less punitive criminal justice system. That said, any realeffort at reducing the prison population will likely involve leniency for violent criminals.It's easy to imagine the attack ads that a Republican presidential candidate could launch in a primary campaign against a rival who endorsed Lee's ideas,however justified they might be on humanitarian or economic grounds.

3.Fewer licenses to work

Another idea that Ryan has endorsed ismaking it easierto work in occupationsthat currently require a license. You need a license to do all kinds of jobs -- florists,auctioneers and hair-braiders all require licenses in some states. Their work might require special expertise or training, but the license imposes an additional burden of time and money that is arguably superfluous. There are probably many people who are out of work, even though they couldmake a living in these occupations and would enjoy doing so if onlythey had a license. The problemis that almost all of these regulations are imposed bystate and local governments, so it would be difficult for a presidential candidate to crediblycampaign on reducing occupational licensing. Incidentally, the same is true of prison sentences. Almost all of the country's inmates are in local facilities. And, as with tax reform, any specificproposal toeliminate occupational licensing will lose the votes ofeveryonewhobenefits from the status quo, those who have licenses already. Republicans have several goodideas aboutimproving the economic prospects for the poor and the middle class. Incorporating those ideasintoa presidential campaignwould be a political gamble.

Max Ehrenfreund is a blogger on the Financial desk and writes for Know More and Wonkblog.

Read the original post:
Wonkblog: Yes, conservatives can respond to Democrats big new economic proposal

Senior House Democrats Nancy Pelosi (Calif.), Steny Hoyer (Md.) and Chris Van Hollen (Md.) discuss the budget at a news conference on Dec. 5, 2013. (AP/J. Scott Applewhite)

Are the states still "the laboratories of democracy," as Louis D. Brandeis said? Aaron Chatterji, a White House economist during President Obama's first term,is worried about the nation'sR&D department:

From Obamacare to the Common Core to the president's new proposal to reduce the cost ofcommunity college, many of the ideas inthe current national public policy debate originated in the states, as it did in Brandeis's day. The difference is that now, many of those ideasare meetingfierce opposition. Read the rest of Chatterji's piece here.

What's in Wonkbook:1) Democrats' economic agenda2) Opinions, including Blow on Tamir Rice3)WhyKeystone XLstill matters, and more

Number of the day: 1.7 percent.That's the increase in hourly wages for the average American workerlast year -- which is almost nothing, butis still better than inflation, thanks to falling oil prices.Matt O'Brien in The Washington Post.

1. Topstory: Democratslay out economic agenda

Theproposal from senior lawmakers isn't likely to go anywhere for now, but it establishes Democrats' position for the upcoming campaign. "The centerpiece of the proposal, set to be unveiled Monday by Rep. Chris Van Hollen (D-Md.), is a 'paycheck bonus credit' that would shave $2,000 a year off the tax bills of couples earning less than $200,000. Other provisions would nearly triple the tax credit for child care and reward people who save at least $500 a year. The windfall about $1.2 trillion over a decade would come directly from the pockets of Wall Street 'high rollers' through a new fee on financial transactions, and from the top 1 percent of earners, who would lose billions of dollars in lucrative tax breaks." Lori Montgomery and Paul Kane in The Washington Post.

Meanwhile, the Wall Street money has dried up for the Democratic Party. "Of course, the flight of financial sector money is not the sole reason for the increasingly populist arguments from Democratic politicians. But it has helped the debate to move, ever so slightly, away from Wall Street support. In the last two elections, according to data from the Center for Responsive Politics, Democratic Party committees and candidates saw their share of contributions from finance, insurance and real estate donors shrink to the lowest percentages since at least 1990." Paul Blumenthal in The Huffington Post.

Republicans are looking for a populist message, too. "'You talk to any pollster, on the Democratic side or the Republican side, they're in complete agreement on the idea that there has to be an economic populist message,' said Matthew Dowd, a top strategist for former president George W. Bush's 2000 and 2004 campaigns. 'Then it comes down to "Are there credible solutions and is there a credible candidate?" ' "Philip Rucker and Dan Balz in The Washington Post.

VINIK: With the improving economy, Democrats confront a political conundrum. "How do they take credit for the economys successes while empathizing with working class voters who havent seen those successes? One possibility is to have different party leaders express different sentiments." The New Republic.

Go here to read the rest:
Wonkblog: Wonkbook: Democrats take a sharp left on the economy

Update: post updated with comments from Sen. Roach and Sen. Chase.

Sen. Pam Roach, R-Auburn, is applauded after being elected as president pro tempore in the Senate at the start of the legislative session. (Elaine Thompson / The Associated Press)

OLYMPIA A leadership squabble put a twist into the opening day of the Legislature Monday, as minority Democrats helped install controversial Republican state Sen. Pam Roach as Senate president pro tempore.

In what amounted to a mini coup, Democrats sided with Roach and Sen. Don Benton, R-Vancouver, to install Roach in the leadership post.

The move was in part a dig at state Sen. Tim Sheldon, the Potlatch Democrat who has been caucusing with the Republican-dominated Majority Coalition Caucus. Sheldon was president pro tem last year and had been expected to retain the post.

Sheldon was taken off guard by the surprise maneuver.

I think there was a little bit of the politics of bitterness shown on the floor, Sheldon said. He said Democrats wanted to slap me down for caucusing with the GOP. Obviously, Senator Roach and Senator Benton made a deal.

Roach denied that: there were no deals that were made, she said, adding that she simply worked to line up the required 25 votes. Ive worked very well with Democrats and I think they appreciate that.

Roach said the pro tem job is typically reserved for the senior member of the majority party in the Senate chamber and shes the longest serving state senator.

Sheldon said he only learned of the effort to depose him shortly before the vote Monday. It was well-concealed, well-planned and well-executed. Thats the way politics works, he said.

View post:
In twist, Democrats elevate GOP state Sen. Pam Roach to leadership

Published January 12, 2015

Influential Democrats are pushing a new plan to give middle-class Americans a big tax break, but only by imposing a new tax on Wall Street traders and other top earners -- drawing a rebuke from majority Republicans who say the proposal would hurt the economy.

"Our economy is still struggling to create jobs -- and the last thing we need is a new trillion-dollar tax hike added to the current broken tax code," said Michael Steel, spokesman for House Speaker John Boehner.

Rep. Chris Van Hollen, D-Md., unveiled the tax plan on Monday at the Center for American Progress.

His plan would give a tax credit of roughly $2,000 per year to middle-class families, reportedly defined as couples making under $200,000. According to The Washington Post, the windfall would add up to roughly $1.2 trillion over the next decade.

However, to pay for the plan, Van Hollen wants to charge a fee on financial transactions, and curtail tax breaks for other top earners, effectively transferring wealth from Wall Street and beyond to everyone else.

Van Hollen on Monday said middle-class families need to keep more of what they earn, calling for a "fair" tax code that rewards work, and not just those who make money from making money -- a dig at Wall Street.

House Republicans urged Democrats to work with them on reforming the tax code to eliminate loopholes and bring down rates overall. But they said Van Hollen's plan is not the right approach.

"Just as the sun rises in the east, Washington Democrats propose another massive tax increase," said Brendan Buck, spokesman for House Ways and Means Committee Chairman Paul Ryan, R-Wis. "Here in the House our focus is going to be on cleaning up the tax code so that we can lower rates for all taxpayers and help create good-paying jobs, not scaring them off with punitive tax hikes."

The plan stands little chance of advancing, given that Republicans have a tighter grip on the House and have taken control of the Senate, in the wake of the November midterms.

Link:
GOP rips Dem plan to transfer Wall Street wealth - VIDEO: Dems propose plan to redistribute wealth

MADISON, Wis. -- Republican Gov. Scott Walker is distracted by his exploration of a presidential run, top Wisconsin Democrats argued Monday, noting that he's speaking at political events in Iowa and California this month when they say he should be focused on solving the state's $2.2 billion budget shortfall.

Democrats are increasingly arguing that Walker's acknowledged consideration of a possible 2016 presidential run is preventing him from addressing problems in Wisconsin. Walker counters that he couldn't mount a credible run for president if things weren't going well in his home state.

Walker is scheduled Tuesday to deliver his fifth State of the State speech, and the first of his second term. Walker said last week he will talk about some "big ideas," including merging and consolidating certain state agencies to better serve taxpayers, but most of the details about how he's solving the state's budget problem will not be announced until next month.

He will submit his two-year spending plan to lawmakers on Feb. 3.

But on Monday, Democratic Party Chairman Mike Tate noted that just two days after the State of the State speech, Walker is slated to give the keynote address Thursday at the annual winter meeting of the Republican National Committee in San Diego. The governor is also set to join other potential GOP White House hopefuls at a Jan. 24 summit in Des Moines, Iowa, sponsored by Citizens United and Iowa Republican Rep.

"We know Scott Walker already has his eye off the ball in Wisconsin," Tate said in a conference call with reporters.

Walker, who has said he won't make a decision on a presidential run until this spring, recently hired a campaign adviser with experience running national campaigns. Walker has also urged lawmakers to act quickly on passing a budget this year. He's giving them his plan 17 days earlier than he did two years ago.

Walker's spokeswoman Laurel Patrick brushed off the criticism.

"Some choose to complain, some choose to lead," Patrick said in a written statement. "Gov. Walker chooses to lead. He'll lay out the first part of his plan to continue moving Wisconsin forward on Tuesday."

Democrats said Walker should not be focused on running for president, but instead be working on ways to help Wisconsin's middle class succeed.

Read this article:
Democrats say Walker distracted by presidential ambitions