For House Budget Committee chairman Paul Ryan and the Republican Party’s unofficial austerity caucus, the shutdown and debt-ceiling fights did not end in defeat. As part of the deal to end reopen the government and avert a “full-faith-and-credit” crisis, they got an agreement to establish a House and Senate conference committee that is charged with pulling together a bipartisan budget plan.
Ryan makes little secret of his agenda. The Wisconsin Republican is already talking about implementing the “entitlement reforms” he’s been pitching for years. So no one should rule out the prospect that the committee will entertain proposals for the roll-the-dice experiments with Social Security, Medicare and Medicaid voucher schemes, hiking retirement ages, establishing means tests and reducing protections against inflation. At the same time, Ryan would reduce the corporate tax rate and eliminate the alternative minimum tax—completing the “Robin Hood-in-reverse” scenario that so appeals to austerity advocates.
But what are the prospects that the committee will discuss proposals that might attract the resources needed to avoid cuts to essential programs and steer the US economy toward job creation and growth? The Democrats make a bow in the right direction. In addition to investing in job creation, transportation infrastructure and worker training programs, Senate Budget Committee chair Patty Murray, D-Washington, includes proposals to close tax loopholes and eliminate tax breaks for corporations that offshore operations.
But if they are serious about countering austerity—and they should be—Democrats need to offer something more substantial. And the place to begin is with a real alternative to “Robin Hood in reverse.”
As in: a “Robin Hood Tax.”
That’s a tax on high-stakes financial transactions, as proposed in the House by Congressional Progressive Caucus co-chair Keith Ellison, D-Minnesota. Ellison’s “Inclusive Prosperity Tax” would raise hundreds of billions in new revenues. “This is a small tax on Wall Street transactions to meet the needs of our nation,” says Ellison, who asks: “Didn’t America step up to the plate when Wall Street needed help?”
The congressman’s proposal would also reduce harmful market speculation. As Ellison says, “Gambling on Wall Street does not benefit our society.”