At Right Matters, Ramesh Ponnuru has posted a potential agenda for Republican congressional candidates running in 2010. I agree with Ross’s characterization of the proposals as “substantial, sensible and politically sale-able.” Below I offer some additional thoughts:
Here, admittedly off the top of my head and in no particular order, are a few of the ideas I hope Republicans run on:
1) A tax reform that includes tax relief for parents, increased incentives to work and save, and considerable simplification of the tax code. (In other venues I have sketched out how taxes could be reformed in this way without sacrificing revenue.)
Ramesh and Robert Stein have written about this idea extensively. Stein has written an essay for National Affairs on the same theme. One potentially complicating aspect of Stein’s approach is that it wouldn’t be terribly appealing to upper-middle-class blue state professionals, a potentially winnable constituency for conservative candidates in 2010 and 2012. the more important question, of course, is whether getting rid of the state and local tax deduction is nevertheless a good idea. I tend to think it is, so I am sympathetic to Stein’s approach.
To be blunt, the plan is a tax hike on the rich and makes the tax code even more progressive than it is today. Given the loss of the state and local tax deduction, the tax hike will be particularly acute for high earners from high-tax states. And although the top income-tax rate would be capped at 35%, that rate would kick in at lower income levels than it does today. The result would be a marginal tax-rate hike — and a corresponding weakening of work incentives — for many workers who today find themselves in the 25%, 28%, and 33% brackets.
2)Repeal of Obamacare.
Conservatives and centrists need a good alternative to PPACA, but I see no reason for candidates not to run on repealing the new health law.
3) A permanent ban on federal funding of abortion.
4) A plan to unwind the federal ownership stake in Detroit.
This is intriguing, and could be linked to a package of regulatory and labor market reforms designed to aid manufacturers.
5) Changing the Social Security benefits formula so that payouts to high earners in the future keep up with inflation–but grow no faster than that.
Another excellent idea, which could be linked to a proposal for early retirement accounts.
6) Temporary assistance to state governments, conditioned on their reform of their pension systems.
There appears to be an emerging consensus around this idea. Christopher Edley Jr., from the center-left has proposed something along similar lines, as has Nicole Gelinas of the center-right Manhattan Institute. More on this to come.
7) The elimination of corporate welfare–including OPIC, the Export-Import Bank, and the like.
An excellent idea with populist resonance.
8) A plan to rein in Fannie and Freddie.
Chris and I highlight the Marron-Swagel GSE reform proposal in our article, but there are others.
9) Congressional reforms–such as a requirement that the text of bills be posted for 72 hours before a vote, a rule allowing members of Congress to raise points of order challenging the constitutional basis of any legislation being debated, and a rule that congressmen cannot get non-emergency care at Walter Reed unless they are veterans.
10) A federal hiring freeze.
This last idea is the only one that gives me pause: I’d recommend freezing total compensation, but not necessarily freezing the size of the federal workforce. I worry about a scenario in which we freeze the size of the federal workforce, yet we hire more private contractors. Private contractors make sense in many instances, yet the real issue is the size of the federal wage bill. Private contractors are part of the federal wage bill.
I can think of other ideas, but Ramesh’s proposals strike me as a good, minimalist agenda that all conservative congressional candidates can and should agree on.
I like lots of this stuff.
1) I still think eliminating deductions which give bad signals - mortgage credit and local/state income taxes are a good idea. But the top rate is too high. Cap it at 25% and have a 15% rate to the poverty line. Part of me says even the poverty line folks should pay something but not sure how to structure it. Too many rates are just more complication. And the the rates of course should be x on the income below and y on the portion above not the higher rate on all.
2), 3), and 4) are all good although I would include Wall St in number 4. We own the big banks now too.
5) Terrible idea - one of the worst. The return on contributions to SS is like what 1% or some terrible number. The money is mine - it doesn't matter how much I make. If SS fails because it is a terrible concept fine. But I am not giving up more of my money to keep it afloat.
Want a better idea - voucher Medicare completely (i.e. all plans are now advantage plans). Then means test the voucher subsidy amount. Freeze the subsidy going forward - or only let it grow at the rate of CPI every other year. People are worried about being able to even buy insurance in retirement. Guarentee the access - means test the cost. It's a winner.
To 6) I would add a few more caveats than just that. No more collective bargaining for govt employees. If a almost bankrupt state wants my tax dollars they need to reform their system by eliminating the engine for the growth of govt spending. Otherwise you are just helping fuel the states addiction. Default the pensions, move them to PBGC and pay the pensioners 30 cents on the dollare like everyone else gets when the promises were too big to pay. I have zero sympathy here.
7) is wonderful.
8) The plan to rein in Fannie and Freddie should entail their eventual elimination.
9) Congress needs to start eliminating perqs like crazy, significantly reduce their DC staff budgets, and make them liable to the laws of the land - all of them.
10) Not a freeze in hiring - a significant rollback in wages and benefits. Permanent wage cuts of about 5% with an additional 2 year freeze. Capping any defined benefit plans and then offering only defined contribution plans going forward. Health care plans that require higher premium payments. Welcome to the real world folks.
I would exempt uniform soldiers and field agents in the FBI and CIA from the rollbacks in salary and benefit cuts. Getting shot at for your country should be worth something.
Reply to this commentLinkReport AbuseI don't know that a Federal hiring freeze or a wage freeze are good ideas. I work in the Federal government and how this would play out with OPM regulations, managerial priorities and departmental policies would be disastrous.
You'd end up either keeping people at their jobs until automatic grade-and-step increases boost their pay through the roof or you'd end up with a system of favoritism as grade-and-step increases reduce the manpower potential of the staff.
One thing that will not happen is per-worker cost control.
It would be better instead to place clear limits on bureaucratic careers. Unless there are no new applicants, people should be expected to move to the next level of responsibility or leave Federal employ. The officer corps works in precisely this way and I see no reason to allow people to make a career of civil service.
Reply to this commentLinkReport Abuse#6 -- pension reform means not paying old people, because Republicans are mad at municipal unions. In other words, social engineering from the right at the hands of the federal government to do something that can't be achieved through Republican state legislatures and governors. Exactly how is squeezing a little money from these people going to improve the economy? It won't so it's a waste of breath.
And let's get the old people mad at us, they don't vote... some of these ideas could have been knocked out in a second if Ramesh etc had ever been near a political campaign.
Reply to this commentLinkReport AbuseWell - it is happening to private workers all over, why should govt workers be exempt. If govt's provided too rich benefits, such that they can't pay them, you need to change or declare bankruptcy and let the feds take care of it.
It isn't not paying them, it is paying them an amount that someone can actually afford to do - there isn't enough money left to meet the obligations. So modify them or punt. Sticking your head in the sand isn't going to help.
Reply to this commentLinkReport AbuseHyena - We have made civil service way too lucrative and comfortable. They make in general way too much money in comparison to the private sector. To your concern on the civil service code - how about just making it easier to release people for poor performance - otherwise if a worker is competent, as most are, if they are happy being a specific grade what's wrong with just keep doing that job?
Reply to this commentLinkReport AbuseJEM,
Yeah, it's more complicated than that. You can't just fire people for "poor performance". That asks for political meddling, media attention and lawsuits. Every firing would be accompanied by a round of paperwork greater than now just to prove, hopefully for good, that a person did not meet expectations. And then another round documenting the expectations.
The institutional dynamics aren't right and the fault lies squarely with the public.
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