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GOP Establishment Savants Speak Softly, Back a Carbon Tax

June 22, 2018 by Llewellyn King Leave a Comment

Call it a tax without tears. It is a proposal to address carbon pollution by replacing a raft of tax subsidies and regulatory requirements with a carbon tax.

What is surprising is who is pushing it: dyed-in-the-wool, rock-ribbed Republicans.

They are the top of the GOP: Every one of them has had an outstanding career in finance, industry or academia. They are men and women who contribute to Republican candidates regularly — and some of them quite generously.

These Republican grandees and party financiers have formed the Alliance for Market Solutions (AMS), which aims to educate conservative policymakers on the benefits of market-oriented solutions to climate change.

“A carbon tax, if the myriad of subsidies and regulations that policymakers now use to affect markets are stripped away, would lead to economic growth and achieve significant carbon pollution reductions,” says Alex Flint, executive director of AMS.

Well-known in Republican circles, he previously served as staff director of the Senate Committee on Energy and Natural Resources and as senior vice president of government affairs at the Nuclear Energy Institute.

The organization’s 10-member advisory board includes John Rowe, former chairman and CEO of Exelon Corp., the largest diversified utility in the United States, and Marvin Odum, former chairman and president of Shell Oil Co. and board member of the American Petroleum Institute.

What we need now, Rowe said, is “a new approach to energy tax and regulation that advances our strategic policy objectives and recognizes that the period of scarcity that began in the 1970s is over. We no longer need to subsidize energy production.”

Instead, we need policies that address “the next great energy challenge: carbon pollution,” he said.

Rowe and AMS allies believe that pairing a “revenue-neutral” carbon tax with a regulatory rollback would be good climate policy.

Flint explained: “A carbon tax would ideally be imposed upstream where carbon enters the economy. Costs would then be passed down the consumption chain through prices, which would impact decision-making and drive the use of cleaner fuels and new technologies across the economy.”

Studies by AMS estimate that a carbon tax would generate more than $1 trillion in additional revenue over the next decade, which lawmakers could use to reduce other, more distortionary taxes, or do things like make the 2017 tax reform permanent or even further reduce income taxes.

Rather than mounting a loud public-pressure campaign, Flint told me the members of the alliance — which also includes William Strong, chairman and managing director of Longford Capital Management, and Chris DeMuth, distinguished fellow at the Hudson Institute — began by meeting quietly with influential Republicans in small groups, going over the gains that would come from tax reform and emphasizing that the carbon tax does not have to be a one-size-fits-all solution, although it is a simple solution to a pressing problem.

Emphasis has been on Republicans who wield power behind the scenes and the tax writers in the House and the Senate. The reformers are getting a hearing, I am told.

The alliance has tried hard to get the facts and detailed analyses nailed down ahead of public discussion. They have done this in a new book, “Carbon Tax Policy: A Conservative Dialogue on Pro-Growth Opportunities,” edited by Alex Brill of the American Enterprise Institute.

The book is, you might say, the creed of the AMS. It is an eye-opening read by conservatives who want to limit government market-meddling and bring about sound policy through enlightened taxation.

Filed Under: King's Commentaries Tagged With: Alliance for Market Solutions, conservatives, environment, pollution, Republicans, taxes

The ‘Quaking Hour’ Of Governance Begins With Trump’s Tweets

January 6, 2017 by Llewellyn King 1 Comment

One can only imagine what it is like to be a Republican member of Congress in the age of Trump. What should be a time of harmonious playing, with both houses secure with a GOP majority and a Republican about to assume the presidency, instead is one of jarring orchestration.

The problem is the score written by President-elect Donald Trump. It is discordant and inspires fear among them.

Senate Republicans are not afraid of their leader Mitch McConnell, and their House counterparts do not quake when their leader, Paul Ryan, speaks. But when it comes to the president-elect, there is unspoken fear.

Republicans are not waking to the bright morning of governance, but rather to the “quaking hour” when they find out what Trump did to them overnight by Twitter or some other unplanned communication.

Did Trump ridicule one of them personally, attack a collective Republican action (like the attempt to close the Office of Congressional Ethics) or take aim against a heretofore Republican orthodoxy (like free trade)?

Has he promoted the interest of Russia over the well-grounded suspicions Republicans on Capitol Hill have of Russia in everything, from hacking to aggression in Syria and Ukraine?

Has he offended 27 European countries in the European Union by supporting Britain’s plans to exit?

Has he, perchance, committed the United States to military action on the Korean Peninsula without consulting Congress or our reliable allies in South Korea. Does he know that the South Korean capital, Seoul, lies just 35 miles from the heavily fortified border with North Korea?

There is surely more to come that will cause heartburn with breakfast.

Not all Republicans are climate deniers, even though they may not have liked Democratic prescriptions. Most Republicans are free-traders, and the North American Free Trade Agreement was passed with Republican support. Are they going to be asked to throw in their lot with dismantling it? And what might they get in NAFTA Mark II?

The known points of stress between the Republicans and their leader-elect are now joined — almost nightly — by random pronouncements with huge policy implications.

Trump is exempt from the normal disciplines of politics. He is comfortable with his paranoia, therefore all criticism is the work of “enemies” or fools. He seems to have no icons, no heroes, and no respect for the institutions of U.S. governance or the history that underlies them — hence giving the back of his hand to the intelligence agencies over Russian hacking.

If Trump does not like the message, he trashes the messenger.

This must sit badly but privately with congressional Republicans. They have fought hard over long years to protect the CIA, the NSA and the rest of the intelligence apparatus from being hobbled by the Democrats. So Trump’s cavalier dismissal of their findings must rankle, if not darn right alarm. The links between the intelligence community and leading Republicans are strong and enduring.

Trump will get his honeymoon. Republicans on Capitol Hill will support and explain and excuse the new president. But, in time, there will be a breaking point; a time when the music will change, when Republicans will speak up again for conservative orthodoxy and the going will get rough for Trump.

Tweeting is not governing, and the presidency is not reality television — particularly when you are threatening to upend the world order on midnight caprice.

Beware the quaking hour. It breaks with the first keystroke of the morning, when the GOP finds out what its leader might have done to it and its verities overnight. It breaks for the person who has spoken up and has been ridiculed, singled out as weak.

This is not what was expected from a party winning both houses of Congress and the White House. It is a new dimension in American politics. And the quaking is not just for Republicans.

Filed Under: King's Commentaries Tagged With: Congress, Donald Trump, Putin, Republicans, Russia, Twitter

It Isn’t Your Father’s Workplace Anymore

February 9, 2015 by Llewellyn King Leave a Comment

One thing we think we know about the Republicans is that they take a dim view of waste, fraud and abuse. So how come the U.S. House of Representatives, in Republican hands, has voted 56 times to repeal or cripple the Affordable Care Act, better known as Obamacare?

They’ve put forth this extraordinary effort despite an explicit veto threat from President Obama. Their repeated effort reminds one of Onan in the Bible, which politely says he spilled his seed on the ground.

It’s a waste of the legislative calendar and the talents of the House members. It’s a fraud because it gives the impression that the House is doing the people’s business when it is holding a protracted political rally. It’s an abuse of those who need health care because it introduces uncertainty into the system for providers, from the insurers to the home-care visitors.

It’s symptomatic of the political hooliganism which has taken over our politics, where there is little to choose between the protagonists.

Republican groups think that Obama is the doer of all evil in the nation – especially to the economy — and the world. Daily their Democratic counterparts gush vitriol against all the potential Republican presidential candidates, only pausing for an aside about the wickedness of Fox News.

Their common accusation is middle-class job woes. They’re on to something about jobs, but not the way the debate on jobs is being framed.

The political view of jobs is more jobs of the kind that we once thought of as normal and inevitable. But nature of work is changing rapidly, and it cries out for analysis.

The model of the corporation that employs a worker at reasonable wages which rise every year, toward a defined benefit pension, is over. Today’s businesses are moving toward a model of employment at will; the job equivalent of the just-in-time supply chain.

While more of us are becoming, in fact, self-employed, the structure of law and practice hasn’t been modified to accommodate the worker who may never know reliable, full-time employment.

The middle-class job market is being commoditized, as the pay-per-hour labor market includes everything from construction to network administration. Sports Illustrated — synonymous with great photography — has just fired all six of its staff photographers. Don’t worry the great plays will still be recorded and the Swimsuit Issue will still titillate, but the pictures will be taken by freelancers and amateurs.

Two forces are changing the nature of work. First, the reality that has devastated manufacturing: U.S. workers are in competition with the global labor pool, and business will always take low-cost option. If unemployment goes up in China, that will be felt in the U.S. workplace. Second is the march of technology; its disruptive impact is the new normal — accelerated change is here to stay.

All is not gloom. The trick is to let the old go – particularly difficult for Democrats — and to let the new in. There will be new entrepreneurs; more small, nimble businesses; and whole new directions of endeavor, from gastro-tourism to cottage-industry manufacturing, utilizing 3-D printing. Individuals will be free in a new way.

Government needs to think about this and devise a new infrastructure that recognizes that the nature of work is changing. The emerging new economy should have simplified taxes and Social Security payments for the self-employed; portable, affordable health care; and universal catastrophe insurance, so that those who are not under an employer umbrella can benefit from the equivalent of workers’ compensation. The self-employed, rightly, fear the day they can’t work.

Rugged individualism has a new face. The political class needs to look and see the new workplace. — For the Hearst-New York Times Syndicate

Filed Under: King's Commentaries Tagged With: 3-D printing, Democrats, employers, employment, jobs, King Commentary, middle class, new economy, President Obama, Republicans, workplace

Things That You Won’t Like in 2015

January 1, 2015 by Llewellyn King 2 Comments

The new year demands predictions. As those demands must be satisfied, here are mine:

1. President Barack Obama will be blamed for everything, from pet obesity to sunspots.

2. Jim DeMint, president of The Heritage Foundation, will continue to solicit me for money and will write me ingratiating letters as one conservative to supposedly another. Things are terrible because of Obama, he will say. But if I send him five bucks, the day can be saved for America.

3. Sen. Al Franken (D-Minn.) will ask me for money, five bucks, to save America from the likes of DeMint.

4. Amtrak – whose high-speed train between Washington, D.C. and Boston, Acela Express, is so expensive only rich business people can afford to ride it — will seek a larger federal subsidy. At present, it stands at $1.3 billion. Ordinary people, who Congress had in mind as riders, can’t afford the Acela's astronomical and predatory fares. So it has become a service for business executives and corporate lawyers — you can tell from the overheard cell phone conversations. A billable hour is a terrible thing to waste.

5. The airlines will find new ways to discomfort you; watch out for toilets that big and tall people can't sit on, seats that recline a 16th of an inch, and bad food that you'll buy only if you're off your medicine. Don't change your ticket, bring a suitcase or seek a seat with legroom. There are fees for that kind of convenience and comfort. Don't ask for logic in routing: How about Providence to Washington, D.C. with two stops and travel time of 10 hours and 20 minutes? An air travel Web site tried to tempt me with that “super-saver” fare. I reckon you could hitchhike it in about the same time.

6. If you thought it was difficult to reach any large company in 2014, it will be much worse in 2015. There are consultants out and about America, teaching corporations how to avoid their customers. Gone are the days when you could expect customer service of some sort, albeit from Rajiv in Bangladesh. Amazon, always a pioneer, has produced the consumer go-have-sex-with-yourself masterpiece. If you have a question about your Kindle, you have to give them your credit card if you want it answered. It's the no-pay-no-help line.

7. Talking of the perils of being a customer, Bank of America refused to give me the phone number of the local branch where I have an account. When I finally got through to the manager, she said they didn't give out the number because “the phone would be ringing off the hook.” I didn’t know people called the bank just to chat. No thought that those callers might be customers. Just remember new the mantra of big business: “The customer is always wrong, a nuisance, and fitted for nothing better than hanging an hour on the phone with a simple inquiry.”

8. Next year the save-a-buck Congress will decimate the Post Office. Sad because it's the one place that still works, and where you can get a question answered promptly. That will not do. The Social Security Administration is efficient and polite, too. So Congress has its hatchet out.

9. Now that the Republicans have control of government, they'll be out to prove that government doesn’t work. I’m sure they will pull it off. The Democrats will be complaining – having snatched defeat from the jaws of victory in the midterms.

How can you lose an election when the economy is turning around? Ask Sen. Franken when you send him your five bucks. Bet he won’t tell you. So I will. You turn your back on your president. That makes you look really bad, and looking really bad is a bad election strategy.
 

Happy New Year! — For the Hearst-New York Times Syndicate

 

Filed Under: King's Commentaries Tagged With: Acela, Amazon, Amtrak, Bank of America, Jim DeMint, Kindle, King Commentary, President Barack Obama, Republicans, Sen. Al Franken, Social Security Administration, The Heritage Foundation, U.S. airlines, U.S. Postal Service, U.S.Congress

A Primer for the New Congress

November 10, 2014 by White House Chronicle Leave a Comment

Welcome to Washington, new members of Congress. It is a city of museums, statues, self-importance and arcane ways.

After a post-campaign vacation, you will be ready to take on the world — or at least this city — and begin to make things right. You are coming here to cut through the crap, straighten out the mess, to return the peoples’ government to the people.

You are feeling good, even invincible. This sense of euphoria and possibility is normal. It is nothing to be worried about — and it will pass.

As most of the new class is Republican, you are going to stop the rot come what may. No more liberal shenanigans, no more creeping socialism, no more welfare state, no more European-style mollycoddling of the undeserving.

You are going to loosen the shackles on business and watch it rise like a jolly green giant who has shaken off his captors, including the Bureau of Land Management, the Fish and Wildlife Service, the Bureau of Ocean Energy Management, the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, the Department of Energy, the Environmental Protection Agency and the Internal Revenue Service.

Oops! Before we go any further, maybe you should pick a target. EPA and IRS are very unpopular — those two are enough for now.

It goes without saying that you are against Obamacare and that should be repealed, or go unfunded, or be replaced with something. Be careful: it may not be as unpopular with your constituents as it is at the country club.

But do not let things like that worry you. You have been elected to Congress. Hallelujah! Reality will not set in until you get to your first caucus, or you see the lousy office you have been assigned, or you learn that that committee appointment you cherished is not coming your way.

Again, worry not. You are about to make a lot of new friends; really nice people, people who will do anything you ask. They have advice about where to live, whom to hire, what schools to send the little ones to — if you have not already decided to leave them back home, which you may when you find out the cost of housing in Washington.

Anyway, the new friends will help you through the intricacies of being a member of Congress. They will advise you on which forms to fill in, how to get your expense reimbursements. Such helpful people. They will also give you advice on issues that are new to you, like net neutrality, the Law of the Sea, and the reason companies have to move overseas.

Amazingly, they also have tickets to wonderful sports events with local teams: the Redskins (football), the Capitals (hockey), the Nationals (baseball). They also have tickets to cultural events, from plays at the Kennedy Center to exhibitions at the National Gallery of Art. It helps so say you love the arts when you are railing against the National Endowment for the Arts, PBS and NPR.

These new friends are the lobbyists, and they have your number already. They know what you like to drink or eat, and whether you prefer to bike, hike or sail. Everything can be arranged. Trust them. They will also guide you on delicate legislative issues; no pressure, just guidance. And who are you to refuse a friend?

Dear Democrats, you are not forgotten but not well remembered either. Your party lost, and you know what that makes you. For two years you must walk the halls of Congress mumbling about income redistribution; how many successes President Obama actually chalked up, but failed to trumpet; and cursing, under your breath, the presence of money in politics — unless it is union money.

There will also be real pleasure for you in thinking up hateful things to say about the new Senate majority leader, Mitch McConnell, and be quoted saying them in social media.

Whatever your party, as your first term wears on, you will get to feel at home on Capitol Hill. You will know how to play the lobbyists, one against the other, and how to discomfort the leadership of your own party. But mostly, you will come to love Big Government. Welcome to the Washington elite. — For the Hearst-New York Times Syndicate

Filed Under: King's Commentaries Tagged With: Capitol Hill, Democrats, King Commentary, lobbyists, midterm elections, President Obama, Republicans, U.S. House of Representatives, U.S. Senate, U.S.Congress, Washington D.C.

Republican Graybeards: ‘Let Romney Be Romney’

July 31, 2012 by White House Chronicle Leave a Comment

 

The scene is the Veterans of Foreign Wars National Convention in Reno, Nev. Enter Mitt Romney stage right, dressed as Rambo.

This typecasting goes with the territory for Republican presidential aspirants. None going back to Richard Nixon has been able to resist it because that is what the base wants. The base wants to believe that their man will bound on the world stage with a dagger between his teeth, swathedin belts of ammo, an assault weapon at the ready and a brace of grenades on his belt,  ready to toss at anyone who does not toe the line

The most dangerous part of this metaphorical macho get-up for Romney is the one that is not seen. It is the script by the likes of John Bolton, George W. Bush’s U.N. ambassador, with editing by an assortment of Bush-era neo-cons, and some old-time Cold War warriors from the Bush and even Reagan era.

One of these men, a former secretary of defense, told me at the time of the Iraq invasion: “At least the Arabs will respect us now.”

In truth, the Arabs got quite a different lesson. It is one that all empires learn eventually: When you invade, you reveal yourself in ways you would rather not have.

One of the many sad lessons of the Iraq and Afghanistan invasions is how after brilliant military performances, we fell apart in both countries with inter-agency squabbling, a lack of planning and terrible naivety in the White House, the Pentagon, the State Department, and the Agency forInternational  Development. Worse, the CIA either did not know or was not heeded about conditions on the ground in either country. Is it possible that no one told George W. Bush about the Sunni dominance of the Shia majority in Iraq? But that is true. Money, lives and respect have been lost.

Conservative foreign-policy thinking is, it seems to me after decades of talking with conservatives about foreign policy, unduly influenced by two aspects of history, both British.

The first is the British Empire. I was born into it and spent the first 20 years of my life in one of its last embers, Rhodesia. Conservatives are right to admire much of the British Empire. It was a great system of trade, education and, much of the time, impartial justice.

It rested on two planks: military superiority and huge confidence in British superiority. Call it British exceptionalism. Its unwinding in Asia and Africa had different causes that led to the same result.

In Asia, and particularly in India, which then included what are now Pakistan and Bangladesh, the end came when the idea of the British as a kind of super-race with their “show” of ceremonies, from tea to parades, plus military and civil skills died. Indians started traveling to Britain, particularly in Victorian times, and were appalled at the squalor they found in British slums. These people were not that super.

In Africa, the end came because of a general sense after World War II that self-determination was the way of the future.

What hastened everything was not only a change in moral perception but also the proliferation of small arms.

Churchill famously said: “I did not become the King’s first minister to preside over the dissolution of the British Empire.” But it was dissolving. Britain’s main loss, looking back, was to its pride.

The other British history lesson that is misread by conservative foreign-policy analysts in the United States is Munich.

Certainly when British Prime Minister Neville Chamberlain waved his piece of paper on Sept. 30, 1938 and declared, “peace for our time,” he was a hero. He was a hero because just two decades earlier, the British Empire had suffered 3.1 million casualties in World War I.

Churchill knew that this wound was open. He did not refer to the courage and sacrifice of that war when seeking courage and sacrifice in a new war. Also, Britain was not ready for war; rearmament, urged by Churchill, was still in its infancy.

Many old-line Republicans tell me that Romney is not a man who will be marched around by those who brought us Vietnam, Iran Contra and Iraq. He is smarter than that.

They believe that when the time comes, if it comes, President Romney will be Romney. Not Rambo. — For the Hearst-New York Times Syndicate

Filed Under: King's Commentaries Tagged With: British Empire, George W. Bush, Great Britain, Mitt romney, Neville Chamberlain, Rambo, Republicans, Veterans of Foreign Wars National Convention, Winston Churchill

Universal Health Care — It’s Addictive

April 2, 2012 by White House Chronicle Leave a Comment

 

Opponents of President Obama's health care legislation were wise to attack it preemptively in the courts on constitutional grounds.

If they hadn't attacked now, they would've learned that universal health care systems – sometimes a hybrid of public and private and sometimes single-payer national systems – are wildly popular in other countries.

So popular that politicians can do no more than fiddle at the edges, as they have done in Britain recently and are about to do in France. No leader, not even that incontrovertible defender of private enterprise, Margaret Thatcher, dared or even thought, to privatize health care.

In the industrial democracies, from Canada to Japan, people complain about their health care systems and would defend them to the death. Once universal health care is introduced and people are relieved of the fear of illness, leading to financial ruin, it is unrepealable.

The opponents of Obamacare must know this, or they wouldn't have been so anxious to test it in court on the grounds of the constitutionality of the individual mandate. Kill it before people love it was an imperative.

Now it's widely believed, after three days of hearings, in which conservative justices sounded more like they were conducting a congressional hearing than a judicial one, that Obamacare will be thrown out before it has ever been sampled by the public, which wouldn't come until 2014. It's been a bit like the Chinese and democracy: Don't let them try it, they might like it.

So how is it the Republicans have been able to so demonize Obamacare? Partly, it's because the administration has done an appalling job of selling its own program. It's almost as though it's ashamed of its offspring because it isn't the child they really wanted: a simpler bill with a public option and such goodies as interstate insurance sales.

The administration is frequently bad at trumpeting its achievements. As health care reform is its defining domestic issue, the fact that Obama and his cabinet have not extolled the virtues of the bill amounts to a curious dereliction, a sin of omission.

Most people have been persuaded, if they know anything about the bill at all, that it's socialized medicine (it is not); that it will double expenditures on health care (it won't); that it's an enormous new dictatorial intrusion into individual liberty (it's not).

It's not a great bill, but a good start.

We in the United States spend about twice as much as other countries on health care – about 18 percent of our gross domestic product.

Why? Everyone knows there's excessive testing and waste. The quick answer is to defend against lawsuits. Another answer is that doctors have no incentive to save money and through their investments in testing companies, often they have an incentive to order up the tests.

Mostly, I suspect it's just indifference; the medical equivalent of not turning the lights off.

I don't like Obamacare because it only does half the job and I'm uneasy about the individual mandate. Just two cheers from me.

The uninsured should be assigned an insurer and the premium collected through the tax system. That way the insurers would compete for the most desirable prospects, young adults, and a real pool would operate.

Another question that isn't asked: As new technology usually brings down costs, why does this not apply in health care? Why are CAT scans and MRIs not getting cheaper, as they would if they were in a different framework?

Why not use the Republican idea of health vouchers as an incentive to keep patients from frivolous use of services – not as the substitute for insurance, but rather as an incentive mechanism. Pay them to stay healthy.

We suffer from a failure of imagination in health care.

There are good reasons to be ambivalent about Obamacare, but it's a start, a building block. Our medicine is without peer, but our concepts of care are quite sickly. – For the Hearst-New York Times Syndicate

Filed Under: King's Commentaries Tagged With: health care reform, Obamacare, Republicans, universal health care

On Tax Cuts, GOP Should Think like Business

August 6, 2010 by White House Chronicle 2 Comments

Mythology in Washington holds that when it comes to economics, Republicans know best. The root of this myth is another myth, which goes like this: When it comes to business, especially small business, Republicans know best.

All of this doesn’t matter until you get to taxes, when the Republicans, buttressed by their mythological understanding of these things, believe they know best.

And what the Republicans believe they know best is that when you cut taxes, everything gets better: Government shrinks, business booms and tax revenues go up.

It’s not that there aren’t shards of truth here; it’s just that everything has to be in the right conjunction to get one or all of these benefits.

Business doesn’t go along with these myths but, like everyone else, it hates paying taxes, so by and large it endorses the Republican position.

The thing is, business believes in a more durable truth: price.

Price means revenue, and business, therefore, believes and practices aggressive pricing. When business needs to exceed the gap between cost and revenue, it increases the price. If the market refuses to pay the price, business exits that market or fails.

Sometimes, however, and increasingly in these hard times, business pulls a con. It lowers or maintains the price, but adds other charges to gain income. The airlines are doing this. The banks make as much or more on fees than they do on consumer loans. Catalog companies do it with “shipping and handling” fees.

Publishers have experimented more with price than most businesses, and their conclusion is to stay on the high side. If the market rejects your high-priced publication, so be it.

I’ve spent a lifetime studying pricing in publishing. All I’ve learned is this: Defend your price.

In London, Rupert Murdoch engaged his Times in a costly price war with Conrad Black’s Daily Telegraph. In the middle of fierce cost-cutting, Murdoch’s camp, with more resources, was triumphant.

Cheap papers were selling.

But when it was all over, the relative positions of the publications had not changed by much and millions of British pounds had been lost. The hope had been that the victor, Murdoch’s papers, would gain so many more readers that they could make up the circulation revenue losses with higher advertising rates. It didn’t work.

Taxes are different, the GOP has averred. Not really. If they’re too high, they will stifle business, choke enterprise and cause businesses to go offshore. Clearly, marginal rates that exceed some magic number (well south of 50 percent) would stifle business.

At one point after World War II, they reached 90 percent in Britain with disastrous results and a few comical ones. The titled, moneyed families fled to Kenya and Rhodesia and the show-business types took up residence in Switzerland. Actor David Niven and playwright Noel Coward were among these.

Now that the tax cuts enacted in the early days of the George W. Bush administration are about to expire, it may behoove us to examine these with a question: What would business do? Things looked pretty bright when these cuts were enacted with the prospect of years of surpluses. But that was before 9-11, two big wars and a recession.

Therefore, if you looked at the tax issue from a boardroom point of view, the unanimous decision would be to go for the revenue and review the result later. Boardroom-loving Republicans ought to know this.

In business, they laugh at people who believe that lower prices automatically will produce compensating revenue. The joke goes something like losing a little on everything and making up with volume.

Many years ago, I had lunch with George Will and Trent Lott. All three of us were speakers at the American Petroleum Institute’s annual meeting in Houston. At the time, Lott and Will agreed that we were an under-taxed country, given the demands on government.

Back then, Republicans thought like business people.

 

Filed Under: King's Commentaries Tagged With: Republicans, taxes

Sarah Palin as Joan of Arc

September 15, 2008 by Llewellyn King Leave a Comment

 

You see Sarah Palin, governor of Alaska; I see Joan of Arc, the peasant girl who vanquished the English in France and facilitated the crowning of Charles VII as King of France, thus ending English claims to the French throne.

Like Palin, Joan was an invigorator: She inspired the French to fight the English. When she failed to win over the generals and the nobles, she went over their heads to the people of France. Soon she had liberated Orleans, after a string of victories, and cleared the way for Charles’s investiture at Reims. Even before his ascent to the French throne, Charles had made the teenager co-commander of his army.

There is dispute over whether Joan actually fought or just carried the French standard in battle. No matter. She electrified the French. And although the 100 Years War dragged on for another generation, Joan had shaped the future of the French nation, giving it a sense of national identity that it had lacked:

She galvanized all levels of French society, revitalized a sick and cautious political establishment, and ignited the new feelings of nationalism in the French army and the peasantry. Essentially, what Palin has done so far for the Republicans.

Joan believed that she was the instrument of God; that she had heard voices from the age of 12, urging her to expel the English from France. Unfortunately, the voices were to be her death knell. She was captured by the English, who handed her over to the Ecclesiastical Court in Rouen, which tried her for heresy. She was convicted and burned at the stake. She was just 19, but she had changed the course of European history.

Later, the Roman Catholic Church decided that it had made a terrible mistake and denounced the trial, finding her innocent after the fact. But Joan was not canonized for another 500 years.

Look at Palin and see the “Maid of Orleans”: She has fought the Republican establishment and energized the rank and file of the party. And that is probably where the similarity ends, although she seems to be quite certain about God’s purposes.

The speculation in Washington is: When will the Palin bubble burst? So far, she has been repeating the same speech on the stump and has only granted one television interview.

The strategy of keeping Palin from the public is beginning to wear thin. And even John McCain himself seems to be hankering for the recognition that he is the nominee for the presidency not the trophy vice presidential candidate from Alaska.

Yet for McCain, it is also all about Palin. If he wins the presidency, she will be credited with attracting women and blue-collar voters to the Republican standard. If she falls apart in the next month, through a combination of hubris and ignorance, she will take down the McCain candidacy.

Also, the speculation in Washington is that Barack Obama’s forces are retooling for an assault to coincide with the one and only vice presidential debate. It is a debate fraught for both the Democratic vice presidential nominee, Joe Biden, and for Palin.

Biden is given to talking too much and he knows too much, which is sometimes a disadvantage. He will be struggling to appear neither avuncular nor condescending. Palin needs to memorize talking points on every issue and stick to them. This is a dangerous tactic, but it is her best option. And it more or less worked in her interview with Charles Gibson of ABC.

Henry “Scoop” Jackson, the late senator from Washington state, who I interviewed on many occasions, answered the question he thought you should ask not the one you asked. He did this especially on television, as I found out when I was part of a panel on NBC’s “Meet the Press.”

Palin’s strategists will probably also try to give her a disarming one-liner that she can repeat frequently, which George W. Bush did with “fuzzy math” in debating Al Gore. People tend to remember the one-liner and forget the rest of the question.

Although Charles ennobled St. Joan and her family, he resented the fact that she had done what he had failed to do against the English aggressor. History may be repeating itself with John McCain.

 

Filed Under: King's Commentaries Tagged With: Barack Obama, Joan of Arc, Joe Biden, John McCain, Republicans, Sarah Palin

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