Wes Clark’s receiving a lot of good publicity for his new tax plan. And well he should. It’s a good plan that could go a long way toward addressing the Democrats’ vulnerabilities on taxes and might prove quite popular with general election voters, who, DR has heard, tend to look favorably on middle class tax cuts.
Clark should also, of course, strengthen his electability case over Howard Dean with Democratic primary voters. Now, he not only has superior national security credentials but also a clear advantage over Dean on the tax issue.
Dean, for his part, seems determined to stick with his Mondale-ian insistence on taking back all the Bush tax cuts and therefore, in effect, raising taxes on the middle class. This is in spite of a boatload of polling evidence showing that, while rescinding all of the Bush tax cuts is quite unpopular–even with Democrats–repealing those for the rich and leaving the middle class tax cuts in place is viewed far more favorably.
Time for Dean to stop being stubborn on this one and embrace the kind of approach Clark is advocating. Middle class tax cuts: try ’em, you’ll like ’em! And winding up like Walter Mondale–you wouldn’t like that at all.
TDS Strategy Memos
Latest Research from:
Editor’s Corner
By Ed Kilgore
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April 26: Kennedy Now Taking As Many Votes From Trump As From Biden
Polls are showing a subtle but potentially important shift that I discussed at New York:
For a while there, the independent ticket of ex-Democrats Robert F. Kennedy Jr. and Nicole Shanahan seemed to be taking crucial votes away from Democrat Joe Biden, at least as indicated by comparing three-way and five-way (with Cornel West and Jill Stein) polls to head-to-head matchups of the incumbent and Donald Trump. Now, even as Biden has all but erased his polling deficit against Trump, he’s getting some more good news in surveys that include other candidates.
Two recent major national polls show Biden running better in a five-way than a two-way race. According to NBC News, Biden moves from two points down to two points up when the non-major-party candidates are included. In the latest Marist poll, Biden leads Trump by three points head-to-head and by five points in a five-way race. Since left-bent candidates West and Stein are pulling 5 percent in the former poll and 4 percent in the latter (presumably taking very few votes from Trump), you have to figure Kennedy is beginning to cut into the MAGA vote to an extent that should get Team Trump’s attention. And it has, NBC News reports:
“Former President Donald Trump has repeatedly said he’s confident that independent presidential candidate Robert F. Kennedy Jr. will pull more votes away from President Joe Biden than from him — a net win for the Republican’s candidacy.
“’He is Crooked Joe Biden’s Political Opponent, not mine,’Trump wrote on Truth Social late last month. ‘I love that he is running!’
“Behind closed doors, however, Trump is less sure. A Republican who was in the room with Trump this year as he reviewed polling said Trump was unsure how Kennedy would affect the race, asking the other people on hand whether or not Kennedy was actually good for his candidacy.”
Politico notes that Kennedy is drawing higher favorability numbers from Republican voters than from Democratic ones, which could indicate a higher ceiling for RFJ Jr. among Trump defectors. And it’s generally assumed from his past performances that there is a lower ceiling on Trump’s support than on Biden’s; he needs to be able to win with significantly less than a majority of the popular vote, as one Republican told Politico:
“’If the Trump campaign doesn’t see this as a concern, then they’re delusional,’ Republican consultant Alice Stewart said. ‘They should be looking at this from the standpoint that they can’t afford to lose any voters — and certainly not to a third-party candidate that shares some of [Trump’s] policy ideas.’”
One likely reason that Kennedy could be appealing to Republicans is the residual effect from the positive attention he received from conservative media when he was running against Biden in the Democratic primaries; his identification with anti-vaccine conspiracy theories also resonates more positively on the right side of the political spectrum than the left. So it’s in the interest of Team Trump to begin telling the former president’s sympathizers that RFK Jr. is actually a lefty, and that started happening recently, as the New York Times reported: “Mr. Trump, the presumptive Republican presidential nominee, pointed in particular to Mr. Kennedy’s views on climate change and the environment, writing on his social media site that Mr. Kennedy was more ‘radical Left’ than Mr. Biden.”
The idea, of course, is not only to discourage potential Trump voters from drifting toward the independent candidate, but to encourage potential Biden voters to consider a Kennedy vote.
If Kennedy continues to draw votes from both Biden and Trump, each of their campaigns will need to make a strategic decision about how to deal with him: Do you ignore him and count on the usual fade in support afflicting non-major-party presidential candidates as Election Day nears, or do you attack him as too far left (if you’re Trump) or too far right (if you’re Biden) and try to make him a handicap to your major-party opponent? The more aggressive approach has become common among Democrats seeking to intervene in Republican primaries (or in the recent case of the California Senate race, a nonpartisan top-two primary) by loudly attacking candidates they’d prefer to face in the general election, encouraging Republicans to flock to the supposed menace to progressivism. This kind of tactic — if deployed with some serious dollars — could have an effect on Kennedy’s base of support.
Certainly Trump seems to be considering it. With his usual practice of saying the quiet part out loud, Trump opined: “If I were a Democrat, I’d vote for RFK Jr. every single time over Biden, because he’s frankly more in line with Democrats.”
Trying to minimize losses to Kennedy and maximize opposite-party votes for Kennedy could become a routine practice down the stretch. Where and by whom this strategy is pursued will depend in part on where RFK Jr. is ultimately on the ballot. Right now he has nailed down ballot access in just two states, Utah and Michigan. CBS News reports the Kennedy-Shanahan ticket is close to securing a spot on the November ballot in a number of other states:
“Kennedy’s campaign says it has completed signature gathering in seven other states in addition to Utah and Michigan — Nevada, Idaho, Hawaii, New Hampshire, North Carolina, Nebraska and Iowa.
“The super PAC supporting Kennedy, American Values 2024, says it has collected enough signatures in Arizona, Georgia and South Carolina.”
Coping with Kennedy could become a game of three-dimensional chess between the Biden and Trump campaigns. But if it begins to look like RFK Jr. has become an existential threat to Democrats or to Republicans, you can bet they’ll go medieval on him without even a moment’s hesitation.
RE: “Anyone care to defend retaining the 2001 and 2003 tax cuts on principle or policy grounds, rather than political ones?”
Ever since the Reagan administration started to agitate for tax cuts 23 years ago, the tax structure in this country has become less and less progressive. (I will give credit to Congress, and even Republicans, for closing many tax loopholes in the eighties.) After more than 20 years of talking about taxes, the last tax cut was the first time that the middle class saw any significant reduction. If we want to reduce the deficit and begin to pay down the national debt, I personally think the money should come from those better able to afford it, namely individuals making over, say, $150k a year, and from all of those corporations who still take advantage of (completely legal) loopholes to reduce their taxes to pratically zero. Letting the middle class keep their tax cut is both good politics and good public policy.
Anyone care to defend retaining the 2001 and 2003 tax cuts on principle or policy grounds, rather than political ones?
we can expect half trillion dollar yearly deficits for as far as the eye can see, and the impending retirement of baby boomers in just a few years. We have 45 million uninusured, a war in iraq running toward the quarter trillion mark, and an unfunded No Child Left Behind Act.
The 2001 cuts amount to $1.4 trillion and the 2003 cuts are another $350 billion. Scaling back cuts only for the wealthy returns only a small fraction of this revenue.
Unless you believe government is a beast that needs to be starved, and that the impending retirement of boomers is a great opportunity to “modernize” social security and medicare — I see no policy justification for retaining any portion of the 2001 and 2003 cuts.
Sebastian,
When I was a ‘dependent’ my parents were forking over a rather considerable portion of their income in taxes because the rates were much higher then. My point as regards people with no dependents is simple – as a minority, the goodies never come our way. I presently pay thousands of dollars a year to educate other people’s children – so much money, in fact, that MY retirement is endangered. I could ‘save more’, IF state and federal taxes weren’t eating a third of my income. In any case, my point is bigger than personal concerns: money doesn’t grow on trees. I’d love something for nothing, but it ain’t gonna happen. We’re encouraging the idea that the government can do ‘more’ while simultaneously promising lowered obligations for millions and millions of citizens. That will foster a sense of entitlement that will ultimately be detrimental to the standard of living for all of us. Democrats are supposedly the ‘responsible’ ones as far as the deficit is concerned.
I believe Dean always wanted a middle class package but wants to wait until the general to announce it. That said, I think Clark’s got a better tax package for the time being. I am not sure how it affords to pay for the things that Dean wants to implement that I support, though.
Reading clark’s tax plan, I’m not able to figure out if my taxes – single, no children – will increase.
I think Dean’s idea (which he’s abstractly favored in the past and which I predict he’ll use) of removing the upper limit of the payroll limit, and raising the lower limit so that many workers wouldn’t pay it at all, would be superior to Clark’s.
Go Wes! I note with approval that yesterday’s Gallup poll shows a strong Clark surge.
The one thing that seriously worries me about a Dean candidacy is this middle-class tax cut issue. About a year & a half ago Kerry was all set to suggest a “Democratic tax cut plan”. That would have been a middle-class tax cut, but W stole his (our!) thunder. The middle class is not responsible for the humongous debt piled up since Reagan, so I don’t believe that fiscal responsibility should mean repealing the M-C tax cut.
BTW, why don’t we ever dicuss the 12%-20% of the Federal Budget that goes to national debt interest payments every year??? This is where the Reagan fiscal irresponsibility is still costing us, just like all us donkeys were predicting more than 20 years agon now…
I agree that Clark actually seems to have yanked the rug out from under Dean here.
The only chance Dean has to change position would be to say that he wants to immediately revert to the Clinton tax rates but would look to slowly phase in a tax simplification scheme that would not be a shock to the economic system.
Why I like Dean’s pitch – even if it is less exciting to voters at this moment – is that, over the long term, his repudiation of trickle down economics is nothing but good for the party. For some reason, Democrats have abjectly failed to really challenge supply-side economics for two decades. It is amazing to me that George Bush pere was able to succinctly label Reaganomics “voodoo economics” in 1980, but in the past 20+ years Democrats have largely attacked supply-siders on grounds of fairness not effectiveness.
Good point, alms. Too bad Dean’s dug himself into somewhat of a hole on this issue. If he can climb out of it and look good in the process, it’ll be quite a feat.
I keep thinking that whoever wins the presidency – Bush or a Dem – is going to have some mighty tough calls to make, given the monster deficit.
I agree that if Dean cannot do a better job explaining why the entire tax package should be repealed, he needs to go toward a Clark style plan. Politically it might be just too hard to sell a full repeal. But this is so frustrating for me, because as a matter of policy and principle it is so obvious we need all the tax cuts to go in order to raise sufficient funds for responsible government and debt reduction:
1. most importantly, repealing only the top rate on those making $200,000 a year will not raise very much money. No one wants to admit this, because it somewhat undercuts the idea that the Bush tax cuts benefit only the rich. My understanding, from taking to the staff of a Congressman who has intorduced legislation to repeal the top rate cut only, is that such a move would raise only about $100 billion over 10 years. So we are supposed to make a big deal about how outrageous the May 2001 $1.4 trillion tax cut was, but we are not supposed to support retaining $1.3 trillion (over 90 percent) of those cuts?! I suppose canceling the estate tax cut would add a little more. Still, not much! Fact is, most of the $1.4 trillion comes from upper middle class people, who received extremely modest tax reductions that add up overall because of the large numbers of people who receive them.
2. baby boomers, who are going to be a tremendous fiscal burden in the years to come as they retire, are in a position now, and have a moral obligation in my view, to reduce that future burden as much as possible by paying today a greater share of taxes. This in turn would allow us to pay down the debt and responsibly fund smart government instead of incurring ADDITIONAL DEBT for future generations. A smart politician like McCain could (and has, in his floor statements given around votes against passing further cuts) framed this as a patriotic, national sacrifice issue. Its funny how Repubs want to shield the rich from all civic obligations, while Dems seem to want to shield everybody else from those obligations. How uninspiring.
3. What has been needed in 2001 and 2002 are even larger short term cuts, even bigger than the ones we had, which would have gotten us out of recession quicker. The long-term cuts that passed in May 2001 were based on entirely fictitious and absurd economic projections based on the high tech stock bubble continuing indefinately. They would not have passed if Gore had won. They did not take into account 9/11 and aftermath.
WHY ISN’T DEAN, or someone like the writers at the New Republic for good sake, MAKING THESE POINTS?
It makes me sick to see bad policy being put forward by smart people.
Patrick –
Thanks for the news about Dean’s movement. Sounds like a step in the right direction, but just a step. As currently framed, his proposal will be complicated enough that most Americans won’t be able to understand it and the Bush campaign will be able to paint it as a tax increase. “Raise everyone’s taxes, cut the payroll tax that no even sees on their pay stub, raise the social security tax limit…” Hmmm, what’s going on? Sounds like the Democrats want to raise my taxes again.
It’s the tax simplification, stupid.
You’ve been calling Dean on this for a long time, Ruy, and I think you’ve been right to do so. It appears now that Dean’s going to have a tax cut, something I’ve been waiting for a long time. I think it’s going to come in the form of a reform of payroll taxes: a cut in contributions for lower and middle incomes and an increase in the ceiling on contributions for the higher end. I’ve posted the link to a couple of news stories at JUSIPER.
I agree that this is a political masterstroke. Not only that, but Clark’s “bring Karl on” dare during the announcement was brilliant. As a Dean supporter, I can only sit here in my corner and glare with envy.
But while I’m doing that, I’ll also share my qualms about this proposal as a policy. It’s revenue-neutral, folks! In other words, it does nothing to erase the deficit. Nothing at all.
It also does nothing to move the debate off the rhetorical playing field that the Republicans have set up. On their field, taxes are always onerous, always bad, always burdensome — therefore, we all need “tax relief.” When, oh when, are we going to get someone (maybe not someone in the middle of a presidential run, but someone) who will make the case that taxes are the price we pay, as adults, for having a society that functions and is maybe a little bit just? When will we get someone who will stand up to the GOP demagoguery on this issue, rather than maneuver around it?
But again, hats off to the Clark team, and if it helps him win the nom, I’ll happily work my butt off for him.
Sean,
Pharmecuticals, health care, oil & gas, and other industries are paying even bigger money to have the Bushies craft legislature to their specific benefit. Is that closer to bribery than pandering?
Ellie,
At one time you were a dependent. Someone single, or unable to bear children was helping your parents “carry your weight.” The concept of generational responsibility is couched in history, crosses cultures and oceans, and helps form a sense of responsibility (not optional) in society. If you fear taking care of other people’s children with a few of your dollars each tax year will significantly affect the quality of your retirement, I suggest you save more.
Clark’s proposal is a huge step in the right direction, not only because it shifts the tax burden to those who are more able to pay, but also because it offers tax simplification. In 2000 Gore had a huge menu of tax cuts, breaks, increases, and rollbacks — it was impossible to understand, and Bush exploited that.
One of the strengths of the Clark campaign has been its ability to put out messages that are simple and to the point. I think this tax plan exemplifies that.
Another “free lunch”! The hope of people actually learning grows more remote by the hour.
Although I am not rich, I am intellectually honest enough to recognize that you can’t merely “soak” the rich any more than you can give them a “pass”.
It’s always SO easy to let the other guy pull the cart. My God, what a crappy country.
This is a tremendous move on Clark’s part – it’s good policy and good politics. It gives Clark a tax policy that is at once the most liberal and the most appealing to swing voters who vote their pocketbooks, and it also avoids raising the deficit. A hat trick for Clark! Clark needs to counter the lingering suspicion that liberals have for military people, and having the most progressive (in both senses) policy on taxes should go a long way. Dean is now outflanked on this issue and has to think long and hard about how his tax-raising vow will play in the low-tax states of the south and west.
The other very good thing about this is that it works well in the general election. If the democratic nominee has a plan that cuts taxes and doesn’t increase deficits at the same time then Bush’s signature issue might be stolen from him.
Christ! Paying people $200 to vote for you is probably popular, too, and with $200 mil being spent on the election and less than 1 million swing voters, it’s also entirely possible. At what point does pandering become bribery?
I pray that Dean knows he has to reposition on taxes. If he is as smart politically as he seems, he will. If he is indeed the nominee, that is…..I think that’s less certain than today’s CW. We’ll know on Feb 3rd. Actually, if Clark finishes within 5 points of Dean in NH, that would be huge. Within 8 or 9 points would still be very good and set him up for winning 3 states on the 3rd.
Taxes are very, very important, more so than its treatment in the Dem primary would indicate.
What are the implications of eliminating huge numbers of Americans from the tax rolls entirely? Something for nothing, I’m sure. It’s very dangerous to pass out all the goodies of civil life without expecting any contribution whatsoever in return, especially as far as middle income people are concerned. All I see here is another ‘painless’ pander – goodies for votes, and, in the end, no progress toward solving any of our existing problems in education, healthcare, etc. Sounds an awful lot like Bush to me. (And, please note that, as usual, people with no dependents get screwed again!)
Ruy:
Is this good enough for a signature domestic issue? My gut says yes.