Speaker John Boehner (R-Ohio) is now in Williamsburg, Virginia, meeting with his House Republican conference at their annual retreat. The GOP House members have likely gotten over the initial shock of the November elections – in which President Barack Obama won more than 51 percent of the vote and the Democratic majority swelled in the Senate.
The Great Debate
Mitt Romney’s decision to name Representative Paul Ryan of Wisconsin as his running mate says quite a lot about what Romney thinks about America and its workers, and none of it is good. In recent years, Ryan has earned a reputation as the intellectual of the conservative movement. He’s a gutsy guy who has been willing to transparently share his vision for America through a detailed budget proposal that leads inescapably to this conclusion: He believes that American workers are slackers and freeloaders.
This week, House Budget Committee Chairman Paul Ryan released what amounts to the most substantive roadmap for fiscal policy that any Republican is likely to offer in 2012. Many political pundits and policy analysts, especially those on the left, are eager to dig into the details to alert the public about the potential (negative) impacts of a budget that slices off $5 trillion in total federal spending compared with the plan offered by President Obama in February.
One aspect of Paul Ryan’s new budget that hasn’t drawn much attention is that it is a big love letter to the Pentagon. Ryan rejects the idea that budgetary pressures should have any effect on defense spending, which he argues should be dictated purely by “strategic” calculations. Among other things, the Ryan budget would reverse $55 billion in defense cuts mandated for 2013 by the “trigger” agreed to in last year’s budget ceiling deal – and cut this same amount from domestic programs instead.
Headlines over the past couple of weeks have been dominated by reactions to President Obama’s new proposal for corporate tax reform. The optimism stems from the realization that practically all the major plans by Democrats and Republicans would move the U.S. tax code in the direction of a territorial-based system (in which a corporation is taxed on domestic, not foreign, income). Moreover, these plans all accept the premise that to make the U.S. code more competitive globally, the tax base must be broadened, and that means cutting deductions and preferences in exchange for lowering the top-line rate (i.e., down to between 25 percent and 28 percent from today’s 35 percent rate).