The Dems Find Their Voice | National Catholic Reporter

The Dems Find Their Voice | National Catholic Reporter by MSW. MGB: The Van Hollen proposal is a beautiful symbol - especially the CEO bonus restriction.  The dirty secret about CEO bonuses is that they are usually the result of cost cutting - of labor costs primarily.  These cost cutting efforts do usually go with a dividend, but only at what would be considered a normal return (i.e., what everyone else is paying in that sector in percentage terms).  The CEO and a few staff get the rest.  Turning that on its head is good for America and good for workers.  The Buffett thing is actually not as true as it used to be - at least in health care where everyone above $250,000 in income pays a surtax on their non-wage income - however this is for health, not Social Security.



We could take off the cap or we could fund the employer contribution with a Value Added Tax - essentially getting rid of most of the Buffett rule problem (I would lower the cap on the employee contribution, so as to lower the benefit for the wealthy).  Thing is, the Democrats are not at all sure they want to touch Social Security - and especially don't want to use it socialisticly - say be doing personal accounts for employees holding employer voting stock with equal crediting for each worker. Nothing would be more socialistic and that scares them because the consensus is inequality, at least among the Social Security intelligentsia.



The proposal also takes a fly at the Tobin Tax.  That might make for some interesting hearings, but it won't pass.  Indeed, while using it for redistribution is an interesting idea - I suspect it is far better to put the rate high enough to eliminate the computerized trading that is based on essentially tapping the communication lines between brokers and the exchange.  This should just be illegal but for some reason it is not considered so.  A tax would take away some of that advantage - maybe all of it.  Of course, the people who benefit from this trading are a broader swath than is generally admitted - and the Tobin Tax hearing should include that as well.  Of course, the hearing might just lead to an enforcement action after all and short circuit the call for the tax.



You get the pattern.  The Van Hollen levies are symbolic and won't be passed.  Indeed, even as a symbol, they may not go beyond the wonk community.  2014 was not about bad issues - it was about bad GOTV - worse than I had thought.  We had it good in Virginia and in Maryland the Democrats have natural advantages.  Sadly, voter suppression worked - even if the Justice Department can later enact some retribution - it won't reverse the election.  That would have really been a strong message - but DOJ can't be too partisan, if they were life would be worse with a GOP President.  The other thing that went too far was a continued war on women meme.  That worked because Cardinal Dolan and company all testified at once on contraception. It was a bad optic - but an old one - especially after the contraception mandate compromise had already gone forward.