« WHO TO ROOT FOR IN IRAQ: FRANK SMYTH REPLIES TO NAOMI KLEIN | Main | MEDIA NOTES »

September 24, 2004

THE DEMOCRATS CAPITULATE TO THE SUPPLY-SIDERS

This week made it even harder to convince the voters that this country has a genuine, major opposition party. The Congressional Democrats have now completely capitulated to the Republican advocates of supply-side economics--what the first President Bush once called "voodoo economics" -- by overwhelmingly voting for Dubya's tax cut package. Only one, lone Democratic Senator--retiring octogenarian Fritz Hollings of South Carolina--had the guts to vote on Thursday against this insane tax cut. And in the House, two-thirds of the Democrats (including a lot of the so-called liberals) voted for the Bush bill, which includes more tax breaks for corporations.

Kerry--although he didn't show up for the vote--issued a statement supporting the tax cuts, even though (as the Washington Post reported), they include "an array of business tax breaks" worth $13 billion to Corporate America. (On Monday, Public Campaign will issue a study of how the corporate interests bought their tax cuts with campaign cash.)

The folly of the Democrats' position was underscored by a new study just released by Citizens for Tax Justice, about the effects of previously-passed Bush tax cuts on the top Fortune 500 Companies. Many of these companies made bigger profits after taxes than they did before taxes!

Here are some of the key CTJ findings:

# Twenty-eight corporations enjoyed negative federal income tax rates over the entire 2001-03 period. These companies, whose pretax U.S. profits totaled $44.9 billion over the three years, included, among others: Pepco Holdings (–59.6% tax rate), Prudential
Financial (–46.2%), ITT Industries (–22.3%), Boeing (–18.8%), Unisys (–16.0%), Fluor (–9.2%) and CSX (–7.5%), the company previously headed by our current Secretary of the Treasury.

# 46 companies paid zero or less in federal income taxes in 2003 alone. These 46
companies, almost one out of six of the companies in the study, reported U.S. pretax
profits in 2003 of $42.6 billion, yet received tax rebates totaling $5.4 billion.

# Almost as many companies, 42, paid no tax, reporting $43.5 billion in pretax profits, but $4.9 billion in tax rebates in 2002. From 2001 to 2003, reporting $43.5 billion in pretax profits, but $4.9 billion in tax rebates. From 2001 to 2003, the number of no-tax companies jumped from 33 to 46, an increase of 40 percent.

# The average effective rate for all 275 companies dropped by a fifth, from
21.4 percent in 2001 to 17.2 percent in 2002 and 2003, less than half the statutory 35
percent corporate tax rate that corporations ostensibly are supposed to pay.

The feckless folly of the Democrats' election-year cowardice in supporting this plan insures that the slashing of the social safety net will speed up to a breakneck pace in the next four years. Why? Becuse, to quote that WashPost article again, "With the approval of the legislation, virtually all of Bush's first-term tax agenda -- four tax measures worth nearly $1.9 trillion over 10 years -- would survive a potential second Bush term." With so much of the federal budget already devoted to mandated spending, and both Bush and Kerry committed to increasing already-bloated military budgets, about the only area of discretionary spending left to cut-- to fight a budget deficit that will soar from $4.3 trillion today to $l8 trillion in the next decade, according to the Congressional Budget Office study of the just-passed bill-- is, of course, the social safety net.. The poor will, once again, pay for keeping the rich in clover, and the gap between the Two Americas that John Edwards likes to talk about inevitably will widen to even more shamefully uncivilized levels.

This me-too-ism by Kerry and the Congressional Democrats can only make it more difficult to convince voters to pull the Democratic lever in November. To understand why, take a look at two of the major, credible polls released this week. In the CBS poll, asked if it "was clear what Kerry wants to accomplish as president," only a little more than a third of voters (37%) said it was. And the NBC/Wall Street journal poll found "just 36 percent who believe the Kerry campaign has a message." With only 38 days left before the voting starts, those are killer numbers, far worse for the Kerry campaign than the horserace numbers in every poll showing Bush with a lead, great or small. The electorate is unlikely to embrace a presidential candidate if they don't think he's speaking clearly to their concerns, and they find he has no comprehensible message.

These polling numbers are only partly explained by the bizarre decision by Kerry and his campaign to virtually abandon economic issues in these final weeks of the campaign. Most TV commentators are saying that Kerry's new "seven-point plan" to fight terrorism, issued today, is hardly distinguishable from what Bush is doing now (and it's the terrorism issue that has given Bush a gender gap over Kerry among women, as the polls cited above show). And the emptiness of Kerry's principal assertion in his much-ballyhooed NYU Iraq speech--that he could persuade foreign leaders to send their troops into Iraq to replace America's--was again exposed by the French Foreign Minister's speech at the UN yesterday, in which he declared that, "Neither today nor tomorrow will France commit itself militarily in Iraq."

Only the debates offer a feeble last hope for Kerry to win this election. But Bush's retorts to Kerry in them are predictable: You supported my war, and you supported my tax cuts--why, then, should America vote for you rather than me? And I don't think Kerry has an answer that can convince wavering voters.

I'll still cast an effective vote to defeat George Bush by pulling the Democratic lever--but I find that the clothespin I've put on my nose to take that position must pinch harder and harder as the weeks go by....

RECOMMENDED READING:
In his Philadelphia Daily News column today, entitled What Kerry Is Not Saying About Iraq, Elmer Smith writes: "Hundreds of U.S. soldiers are dying in an effort that will not bring freedom to Iraq or security to the United States," adding that "The dirty untold secret of this campaign is the thousands of Iraqi civilians who are being maimed and killed for this cause." Kerry cannot say these things, of course, because he voted for the war, and has reiterated his support for it quite recently. As a result, the debate over Iraq in this presidential campaign is a dishonest one that corrupts the quality of the public discourse and fails to truly educate the electorate...

In the latest issue of the review New Politics, check out the useful article by Janet Afary and Kevin Anderson, "The Seductions of Islamism: Revisiting Foucault and the Iranian Revolution." In light of the current debate some of us have been having over recent writings sympathetic to the Islamist "resistance" in Iraq--despite its essentially reactionary theocratic character-- by Naomi Klein, Arundhati Roy, and others, this article reminds us that they are not the only intellectuals who have taken positions they may live to regret with regard to Islamist fundamentalist movements....

Posted by Direland at 09:59 PM | Permalink

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c0c4453ef00d83457726369e2

Listed below are links to weblogs that reference THE DEMOCRATS CAPITULATE TO THE SUPPLY-SIDERS :

» Required reading for once-and-future Nader voters, pt. 10. from ALLABOUTGEORGE.com
Direland's "The Democrats Capitulate To the Supply-Siders"Slashdot's "Ask Green Party Presidential Candidate David Cobb"Alas, a Blog's "A note to the Green-bashers" and "Which presidential candidate will I vote for in November?"VotePair via Brian Faler... [Read More]

Tracked on Sep 25, 2004 8:06:18 AM

» Huge slide buries main road into Yosemite from into Yosemite
National Park and is now threatening two electricity towers, raising fears that it could eventually block [Read More]

Tracked on Jun 8, 2006 11:52:21 AM

» Teachers Quit After Students Witness Sex from eachers in Tampa,
eachers in Tampa, Fla., Resign After Students Witness Them Having Sex [Read More]

Tracked on Jun 9, 2006 3:47:32 AM

» Bell Provides Lift as Suns Rout Mavs, Even Series from and the Phoenix
an emotional spark and the Phoenix Suns rediscovered their rhythm in a thorough 106-86 beating [Read More]

Tracked on Jun 11, 2006 9:26:39 PM

» Illustration, from sketch to finish Part Three from on part 3. Today
on her skin and clothes by using subtle gradients or adding a highlight shape, a small line that follows the border. Adding a background [Read More]

Tracked on Jun 13, 2006 2:45:49 AM

» Wade Misses Practice, But Says He'll Play in Game 4 from calling it a
up the stairs to the interview podium. When he finished speaking, he limped away -- although calling it a limp would actually be understating things [Read More]

Tracked on Jun 16, 2006 1:27:09 PM

» The Mormon Community Enjoys a New Online Resource at LDSCentral.org. from URL: http://prweb.com/pingpr.php/SGFsZi1UaGlyLU1hZ24tU2luZy1JbnNlLVplcm8=
community. (PRWEB Jun 15, 2006) Trackback URL: http://prweb.com/pingpr.php/SGFsZi1UaGlyLU1hZ24tU2luZy1JbnNlLVplcm8= [Read More]

Tracked on Jun 17, 2006 6:42:44 PM

» In Diabetes, One More Burden for the Mentally Ill from roughly one in
roughly one in five people appear to develop diabetes — about double the normal rate. [Read More]

Tracked on Jun 18, 2006 10:12:15 AM

» Nuggets' Camby Wants Martin Back from During
Camby talked about the team making roster changes to include players who wanted to play in Denver. [Read More]

Tracked on Jun 20, 2006 9:58:14 PM

» Dallas' Howard Last in '03 Draft, Not Least from PALM BEACH POST
said. 'I should have said yes. I usually pay a nickel more and I didn't. They wanted a dime and I should have done [Read More]

Tracked on Jul 1, 2006 3:42:44 PM

» Knee Won't Bench Knicks' Balkman from small forward,
Tuesday night's second session, bending it as he was airborne. A defensive small forward, Balkman, the controversial 20th pick in the NBA Draft, [Read More]

Tracked on Jul 24, 2006 1:24:18 PM

» Affinity4 'Partner Referral Program' in 2006 from on a referred
Aug 1, 2006) Trackback URL: http://www.prweb.com/chachingpr.php/Q3Jhcy1TaW5nLVByb2YtSGFsZi1JbnNlLVplcm8= [Read More]

Tracked on Aug 8, 2006 8:01:45 AM

» Montana Senator's Nephew Dies in Iraq from ontana Senator's
ontana Senator's Nephew Dies in Iraq As a Marine During Combat Operations [Read More]

Tracked on Aug 8, 2006 9:57:15 AM

» Stern's New School of Thought: Basketball Academy from professional
some of the nation's top professional players have converged here this summer to set about making things right, [Read More]

Tracked on Aug 9, 2006 11:58:29 AM

» IE7 to get PNG Alpha support, CSS bug fixes from women of the
developers lives easier. It's a great thing to see IE playing catch-up again. The [Read More]

Tracked on Aug 14, 2006 1:41:29 PM

Comments

Well, maybe the Dems will blame the Lefty press -- for not finding the Swifties and Vets against Kerry BEFORE he was anointed.

Plus the Dems have always been in favor of massive gov't spending, and gov't power -- now they see what happens when that gov't power, and spending, is controlled by the Reps.

Yeah, the Reps are violating their "conservatism" -- so what are Cato guys gonna do, support Kerry? Where has Kerry wanted to spend less than Bush? No, not less, not yet; merely to punish, er, tax those rich job-creators more! (And this is gonna get more jobs, how???)

Posted by: Tom Grey | Sep 27, 2004 5:00:19 AM

Doug: As you know only too well, the Democrats have spent the past 30 years purging their Party of any fealty to "special interests" (i.e. the people), and this is the logical conclusion: Sure, they want to win, but they've finally sunk to the point where they won't even pretend to represent anyone but the rich. The Kerry campaign has been cowardly and incompetent, but what many of the rank-and-file Dems refuse to see is that this cowardice and incompetence is a deliberate strategy. After all, if Kerry loses, the DNC will just blame Nader (again), or some other scapegoat. And the rank-and-file will be so furiously pissed off, they'll eagerly seize on that - hell, they're already doing it. Dupes don't like to admit they've been duped, and suckers rarely give way to the sort of introspection that'll turn things around for them for the better.

The bottom line is that the long-suffering Democratic Party members won't want to admit to any responsibility if things go badly for them next month, so actually blaming Kerry for his own campaign will be a big no-no. This, in turn, will obviously put off the long-delayed house cleaning the Party has so badly needed for so long now. What a clusterfuck, huh? It sure doesn't help that Nader is genuinely turning out to have feet of clay, and that the Greens are proving themselves to be completely useless.

Posted by: John Dorrian | Sep 25, 2004 12:05:45 PM

The comments to this entry are closed.