The Orphan Strategy

The two teenage brothers were on trial for murdering their parents. After 10 days of testimony and legal motions and jargon, the jury announced their guilty verdict. Several more days of legal skirmishing transpired and finally the boys were asked by the judge if they had anything to say for themselves before they were sentenced.

The boys looked at each other and quickly rose to address the judge. They passionately told the judge that they truly felt that they deserved mercy on account they were orphans.

I first heard this story when I was in high school. Although meant as a joke the story has stayed with me at least 50 years. And why?

Because I recognize the pity strategy in others all the time: make a mess of your own life and then ask for special treatment because you are hurting! Sound familiar to you, too?

How about driving the economy into the abyss and blaming the next guy in the White House to fix it if he can, or dare! Then stand around throwing blockades in front of him and his team every time they do address the problem with a solution.

The recent national election aired this dirty issue in public for over 2 years, really more like 4 years. Republican leaders bragged about doing everything they could to make Obama a one term president (both McConnell and Boehner were quoted as having made statements life that).

It didn't work. Voters gave Obama credit for trying to repair the economic damage done by the previous administration. Voters also recognized in the main that Republicans were obstructing the necessary repairs.

Now comes the day of reckoning.  The so called Fiscal Cliff was made by George W. Bush and his congressional leaders. The solution was an agreement that the budget problems and deficit repair would be left to January 1, 2013; if the parties could not agree to a compromise, then serious budget reductions and tax increases would go into effect. The agreement was not a fix; it was kicking the can down the alley, buying time so maybe something tricky could be accomplished, especially if an election or two could be won with the power to do their own desired action.

It didn’t work. Time has run out. Those that made the mess still are ducking the blame, and still are pushing the problem on the back of everyone else. Only this time the public knows the score.

If taxes rise for everyone after the January 1 deadline, the Republicans will shoulder the blame. They have not offered a plan to compromise with the President or Democrat leaders in Congress. Only one side has offered a plan – the President’s. Only gripes and grimaces come from the Republicans.

It is time for them to offer their solution in clear detail. Don’t like the Obama solution? Then what do you suggest? That’s how wheeling and dealing transpires.

Tax rates for those households earning more than $250,000 annually will need to pay more. Why? Because they have the money to pay the tab. No one else does. That’s the nature of the problem we are living with.

Great cuts in defense spending are possible with the end of the war in Iraq. Also, reduced spending in Afghanistan allows defense spending to decline. Continued expense for restocking military stores is reasonable. Also research and development of less costly military methods is reasonable. But an overall reduction of defense spending by $200 or $300 billion is eminently easy to manage.

Entitlements? What are they? Seems to me this is a political code word for welfare. We already trimmed down welfare immensely. Did that in the 1990’s under Clinton, remember? No, the only entitlements I can think of are Social Security, Medicare and Medicaid.  Trouble is, trust funds are funded for Social Security and Medicare and both are liquid and solvent. Medicare will need some tweaks to make sure it continues functioning properly, but cuts? No, not needed at this time. Social Security continues to be tweaked periodically so it lives within actuarial experience. Both Social Security and Medicare are not federal deficit components. They do not contribute to the deficit one penny.

Now I am not sure of Medicaid. That is a budgetary item. But it is also a base-line human services item that helps people in need of medical attention when they do not have money for such services. Do we let them go unattended? Is that the Republican plan? Our American values dictate that we care for the less fortunate. It is hard enough to be in that category; let’s not make it even worse!

Taxpayer deductions should not be on the table. What should be on the table is a vast simplification of the income tax system. Many have tried but all have failed precisely because it is the elephant in the room that no one wishes to recognize. No one wants to really fix the problem because they fear blame at the ballot box. Compromise is needed but scarce among political ‘leaders’. Meanwhile our economy suffers and ‘we the people’ suffer.

It is a shame. Political parties are partners of shame in this fiasco.  All parties are responsible for the problem and the solution. Failing that it is up to the rest of us.

Next primary election, do not vote for an incumbent unless he/she has clearly tried to offer workable solutions. Also, let us begin a dialogue on what we expect from our elected representatives. For starters I think the following items should be among the solutions:

1. No separate benefits for elected officials; they earn the same Social Security and Medicare benefits as the rest of us taxpayers.
2. Cut Senators to one per state; that’s right, only 50 senators elected
3. Cut the House of Representatives in half; make their districts much larger so they have to represent more diversity among their constituents
4. Remove deficit ceiling decisions from Congressional purview; allow Presidential veto of spending bills trim deficits from a runaway Congress
5. Ask economists in the academic community (a Blue Ribbon Panel if you prefer) begin the arduous task of designing a new tax system that funds the federal government adequately. Simplify the collection and reporting of income taxes so accountants and experts are not needed by the average taxpayer. Do not rely on a flat tax; continue to expect higher taxes from those who benefit the most from our economic system and who clearly have the ability to pay.

These are not easy solutions to implement. Neither is running a democracy. The question is: do we want to manage our democracy for the benefit of all or for the reward of a few? That is the core question and value we all must come to grips with.

Otherwise I guess we rely on the 'orphan strategy' and await magical mercy!

December 4, 2012