Commentary Magazine


Topic: Ben Cardin

RE: The Tax Issue Is Back

As I’ve noted before, Obama has brought the tax issue roaring back. Nothing like a liberal president willing to raise taxes on the non-rich (after promising not to), small businesses, and capital before the economy has rebounded to remind voters of the difference between the two parties. The Wall Street Journal‘s editors note:

Bipartisanship has broken out in the Senate, not that the media bothered to notice. Last week John McCain introduced a resolution stating that “It is the sense of the Senate that the Value Added Tax is a massive tax increase that will cripple families on fixed income and only further push back America’s economic recovery.” The resolution passed 85 to 13.

A VAT is a form of national sales tax applied at every stage of production and carried through to the final price paid by consumers. The typical VAT rate in Europe is close to 20%. That’s about how high a VAT would have to be in the U.S. to balance the federal budget, according to the Tax Foundation. Mr. McCain said about his VAT resolution that “With the economy in such bad shape, we should be cutting tax rates now, shouldn’t we?”

Who were the 13? Two who are retiring — George Voinovich (R-Ohio) and Byron Dorgan (D-N.D.) — and a whole bunch of Democrats: Daniel Akaka (Hawaii), Jeff Bingaman (N.M.), Sherrod Brown (Ohio), Robert Byrd (W.Va.), Ben Cardin (Md.), Ted Kaufman (Del.), Carl Levin (Mich.), Jack Reed (R.I.), Tom Udall (N.M.), James Webb (Va.), and Sheldon Whitehouse (R.I.). Kaufman may be toast already, but the others might come to regret walking out on the tax limb.

As I’ve noted before, Obama has brought the tax issue roaring back. Nothing like a liberal president willing to raise taxes on the non-rich (after promising not to), small businesses, and capital before the economy has rebounded to remind voters of the difference between the two parties. The Wall Street Journal‘s editors note:

Bipartisanship has broken out in the Senate, not that the media bothered to notice. Last week John McCain introduced a resolution stating that “It is the sense of the Senate that the Value Added Tax is a massive tax increase that will cripple families on fixed income and only further push back America’s economic recovery.” The resolution passed 85 to 13.

A VAT is a form of national sales tax applied at every stage of production and carried through to the final price paid by consumers. The typical VAT rate in Europe is close to 20%. That’s about how high a VAT would have to be in the U.S. to balance the federal budget, according to the Tax Foundation. Mr. McCain said about his VAT resolution that “With the economy in such bad shape, we should be cutting tax rates now, shouldn’t we?”

Who were the 13? Two who are retiring — George Voinovich (R-Ohio) and Byron Dorgan (D-N.D.) — and a whole bunch of Democrats: Daniel Akaka (Hawaii), Jeff Bingaman (N.M.), Sherrod Brown (Ohio), Robert Byrd (W.Va.), Ben Cardin (Md.), Ted Kaufman (Del.), Carl Levin (Mich.), Jack Reed (R.I.), Tom Udall (N.M.), James Webb (Va.), and Sheldon Whitehouse (R.I.). Kaufman may be toast already, but the others might come to regret walking out on the tax limb.

Read Less

Re: This Would Certainly Be Hope ‘N Change

It is becoming the week for bipartisan foreign policy. We saw a group of Democratic and Republican senators call for the Christmas Day bomber to be treated as an enemy combatant. We saw the 9/11 commission chiefs call for a reexamination of our handling of terrorists. Now a large bipartsian group is demanding those “crippling sanctions” on Iran. Senators Evan Bayh (D-Indiana), Jon Kyl (R-Arizona), Joe Lieberman (I-Connecticut), Chuck Schumer (D-New York), John McCain (R-Arizona), Robert Casey (D-Pennsylvania), Johnny Isakson (R-Georgia), Ben Cardin (D-Maryland), and David Vitter (R-Louisiana) sent a letter to the president calling for him to abide by his own one-year deadline on diplomacy and impose real pressure on the Iranian regime. The letter reads in part:

We believe that it is extremely important for the world to know that the United States means what it says, and that we in fact do what we say we are going to do. As you rightly stated in your Nobel Prize acceptance speech in Oslo, “If we want a lasting peace, then the words of the international community must mean something. Those regimes that break the rules must be held accountable. Sanctions must exact a real price.”

We understand that your Administration is likely to pursue a fifth sanctions resolution at the United Nations Security Council. We strongly support your Administration’s painstaking diplomacy in support of this goal and hope that it succeeds in securing measures that stand a reasonable chance of changing the behavior of Iran’s government for the better. However, based on previous experience, we are acutely aware of the limits of Security Council action, in particular given the likely resistance to meaningful sanctions by the People’s Republic of China. We note with dismay the recent statement of China’s ambassador to the United Nations that, “This is not the right time or right moment for sanctions, because the diplomatic efforts are still going on.”

The senators urge Obama to “pursue parallel and complementary measures, outside the Security Council, to increase the pressure on the Iranian government.” They note that the president already has authority to do so under existing law, and that the senators “are also committed to quickly passing new comprehensive sanctions legislation in Congress that will provide you with additional authorities to pressure Iran, and urge you to make full use of them.”

Once again, it seems Obama is trailing, not leading. There is a bipartisan consensus to at least extract ourselves from the morass of engagement. One wonders what alternative course of action Obama really believes there is. Do pin-prick sanctions focused supposedly on only certain elements within the Iranian regime offer any realistic hope of success? Or is Obama edging closer to a containment strategy, in which meaningful sanctions and military action are ruled out, leaving only the option of living with a nuclear-armed revolutionary Islamic state? We will find out soon enough whether Obama intends to go down in history as the American president who allowed such a regime to go nuclear. In the meantime, these lawmakers would do well to keep up the drumbeat. I suspect it will have to get very loud before the administration acts.

It is becoming the week for bipartisan foreign policy. We saw a group of Democratic and Republican senators call for the Christmas Day bomber to be treated as an enemy combatant. We saw the 9/11 commission chiefs call for a reexamination of our handling of terrorists. Now a large bipartsian group is demanding those “crippling sanctions” on Iran. Senators Evan Bayh (D-Indiana), Jon Kyl (R-Arizona), Joe Lieberman (I-Connecticut), Chuck Schumer (D-New York), John McCain (R-Arizona), Robert Casey (D-Pennsylvania), Johnny Isakson (R-Georgia), Ben Cardin (D-Maryland), and David Vitter (R-Louisiana) sent a letter to the president calling for him to abide by his own one-year deadline on diplomacy and impose real pressure on the Iranian regime. The letter reads in part:

We believe that it is extremely important for the world to know that the United States means what it says, and that we in fact do what we say we are going to do. As you rightly stated in your Nobel Prize acceptance speech in Oslo, “If we want a lasting peace, then the words of the international community must mean something. Those regimes that break the rules must be held accountable. Sanctions must exact a real price.”

We understand that your Administration is likely to pursue a fifth sanctions resolution at the United Nations Security Council. We strongly support your Administration’s painstaking diplomacy in support of this goal and hope that it succeeds in securing measures that stand a reasonable chance of changing the behavior of Iran’s government for the better. However, based on previous experience, we are acutely aware of the limits of Security Council action, in particular given the likely resistance to meaningful sanctions by the People’s Republic of China. We note with dismay the recent statement of China’s ambassador to the United Nations that, “This is not the right time or right moment for sanctions, because the diplomatic efforts are still going on.”

The senators urge Obama to “pursue parallel and complementary measures, outside the Security Council, to increase the pressure on the Iranian government.” They note that the president already has authority to do so under existing law, and that the senators “are also committed to quickly passing new comprehensive sanctions legislation in Congress that will provide you with additional authorities to pressure Iran, and urge you to make full use of them.”

Once again, it seems Obama is trailing, not leading. There is a bipartisan consensus to at least extract ourselves from the morass of engagement. One wonders what alternative course of action Obama really believes there is. Do pin-prick sanctions focused supposedly on only certain elements within the Iranian regime offer any realistic hope of success? Or is Obama edging closer to a containment strategy, in which meaningful sanctions and military action are ruled out, leaving only the option of living with a nuclear-armed revolutionary Islamic state? We will find out soon enough whether Obama intends to go down in history as the American president who allowed such a regime to go nuclear. In the meantime, these lawmakers would do well to keep up the drumbeat. I suspect it will have to get very loud before the administration acts.

Read Less




Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor to our site, you are allowed 8 free articles this month.
This is your first of 8 free articles.

If you are already a digital subscriber, log in here »

Print subscriber? For free access to the website and iPad, register here »

To subscribe, click here to see our subscription offers »

Please note this is an advertisement skip this ad
Clearly, you have a passion for ideas.
Subscribe today for unlimited digital access to the publication that shapes the minds of the people who shape our world.
Get for just
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor, you are allowed 8 free articles.
This is your first article.
You have read of 8 free articles this month.
YOU HAVE READ 8 OF 8
FREE ARTICLES THIS MONTH.
for full access to
CommentaryMagazine.com
INCLUDES FULL ACCESS TO:
Digital subscriber?
Print subscriber? Get free access »
Call to subscribe: 1-800-829-6270
You can also subscribe
on your computer at
CommentaryMagazine.com.
LOG IN WITH YOUR
COMMENTARY MAGAZINE ID
Don't have a CommentaryMagazine.com log in?
CREATE A COMMENTARY
LOG IN ID
Enter you email address and password below. A confirmation email will be sent to the email address that you provide.