Watershed (Page 2)

Everyone talks up postelection bipartisanship, and voters are weary of partisan cat fights. But that doesn't mean selling them out to get along with the other party. If Bush wants compromise, let him start by promising not to nominate any more hard-right-wingers to the federal judiciary. Harry Reid, the new Senate majority leader, could respond by promising not to confirm any nominees if Bush doesn't keep his word.

The tables are turned now. Democrats will control the pursestrings of government. Beyond keeping post offices open, they can kill anything Bush proposes. They have the high ground, but they can now also be blamed for what goes wrong. For the first time in a dozen years, Democrats have the power to alter the governing fundamentals.

Ending the war cannot be compromised. Voters want out "now," as soon as possible. They did not endorse a couple more years of US occupation, many more lost lives and wasted billions. If Democratic leaders get that wrong, it becomes their war too, and Americans will not be forgiving. A coherent alternative that deserves bipartisan support may emerge from the Baker-Hamilton group. But, if not, Democrats should be principled critics and draw up their own road map.

Let Iraqis decide their own fate. Telling them to split up into three parts sounds like more colonialist intervention. Iraqis are robbed of true sovereignty as long as occupying Americans are present. Democrats can come up with a plausible timetable for withdrawal, accompanied by rational foreign-policy steps like direct talks with Iran and other Middle Eastern powers to defuse the sectarian violence and to arrange a manageable exit for the US military.

Congress cannot command troops, but it has enormous leverage to coax and prod Pentagon policy through appropriations and other legislation. Cutting off funds in the midst of war is not going to happen--it never has in US history--but the military itself could become a valuable source of strategic ideas, both in hearings and through back-door communications. Bush's promised "victory" in Iraq is not an option.

The Pentagon, in fact, is especially vulnerable to Congressional pressure, because its spending is scandalously out of control. Rumsfeld allowed it, and the services took advantage of his open checkbook. Emergency "war" spending is headed toward $507 billion and covers numerous projects with no relevance to Iraq or Afghanistan. House and Senate committees can force out the facts and expose this outrage now. If they don't, it will haunt them later when they try to reduce federal deficits.

When Democrats take up their commitment to reducing Bush's budget deficits, they face a big problem up front. The economy is heading toward recession. Shrinking federal deficits would only make things worse. Dems need to back off that pledge and consider stimulative spending instead.

They can look for money elsewhere. One promising source lies in the many investigations and hearings Senate and House committees are planning to expose war-profiteering--Halliburton's no-bid contracts, obscene subsidies and tax breaks for Big Oil and Big Pharma, the rank corruption that has essentially looted government programs. Properly managed, these inquiries can produce popular anger and demands for recovering the public capital carried off by private interests.

The straightforward way to achieve this is taxation. For three decades, Washington has been cutting taxes for corporate and financial interests, not to mention the wealthy. Democrats have to find ways to stop intoning this conservative tax-cutting mantra by showing that government has been robbed and ordinary families are the losers. Will voters be upset that Democrats are recovering public money by raising taxes on the plunderers? I think they will cheer.

Representative Charles Rangel, the next chair of the House Ways and Means Committee, has said he will not attempt to repeal Bush's outrageous tax cuts for the wealthy--but instead let them expire in 2010. That kills estate-tax repeal and puts other measures in terminal jeopardy. Democrats should go on the offense and develop a tax-shift strategy that increases taxes on corporations and capital in order to finance tax relief for struggling families, middle-class and below. Last-Ditch Bush may veto this, but let's see how many nervous Republicans vote against it.

All this depends, however, on the question of whether Democrats have the stomach for a fight, not only with Bush and the GOP but with the business and financial interests that underwrite both parties. We don't know yet, but a test case may come soon. Corporate leaders, investment bankers and the insurance industry are lobbying to gut the modest regulations enacted after Enron and to disable investor lawsuits against fraud on Wall Street and in corporate boardrooms.

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