Election over, campaign continues over budget cuts

STEPHEN OHLEMACHER, Associated Press

Friday, November 23, 2012

WASHINGTON (AP) — The election may be over, but a new campaign is being waged in the nation’s capital as lobbyists, advocates and trade groups fight to shape the government’s response to the looming fiscal cliff.

It’s a twist on the usual lobbying effort: Instead of digging for more tax dollars, they’re trying to protect what they’ve got.

The tactics are familiar to voters who were swamped with TV commercials, newspaper ads and mailers in the frenzied months before Election Day. But this time, the effort is directed at politicians, not so much the public.

What do these groups want?

In this climate, lobbyists and advocacy groups are mainly trying to control the damage as Congress and the White House look to raise taxes and cut spending in an attempt to slow down the government’s mushrooming debt. In other words: Don’t raise my taxes and don’t cut spending on programs I like.

At the same time, cheerleaders for fiscal austerity, including members of President Barack Obama’s own deficit commission, are lobbying him and Congress to cut deficits. In 2010, the commission proposed a plan that mixed tax increases and spending cuts to reduce government borrowing by almost $4 trillion over the next decade.

Obama largely ignored that plan. Now, the two co-chairmen of the commission, Democrat Erskine Bowles and Republican Alan Simpson, have formed a group called Fix the Debt that is running newspaper ads that mimic popular advertising campaigns. One ad features a picture of a female runner and the catch phrase, “Just fix it.” Another is a picture of a woman with a milk mustache and the slogan, “Got debt?”

“Even the best advertising in the world can’t fix the debt,” says the ad. “But together we can. Let’s get to work.”

Come January, the nation faces a massive combination of automatic tax increases and across-the-board spending cuts that have come be known as the “fiscal cliff” because allowing this scenario to play out would probably send the economy back into recession, according to government economists.

Lawmakers and the White House are working in a postelection session of Congress to reduce the sudden jolt of higher taxes and spending cuts and lay a framework for addressing the nation’s long-term financial problems. But the two political parties are struggling to find common ground, especially on taxes and widely popular benefit programs such as Social Security and Medicare.

Obama wants to let tax rates rise for wealthy families while sparing middle- and low-income taxpayers. Some Republican leaders, including House Speaker John Boehner of Ohio, have said they are willing to consider making the wealthy pay more by reducing their tax breaks. But most Republicans in Congress adamantly oppose raising tax rates.

If the wealthy are going to put out more tax money one way or another, it may not matter much whether they do so by paying a higher rate or by seeing their tax shelters shrink. But most of those tax breaks have some broader policy purpose behind them. In Washington, lobbyists are paid handsomely to focus on seemingly small details like that and lawmakers are perfectly capable of getting tied in knots over them.

Advocates for older people are warning the negotiators to keep their hands off Social Security, Medicare and Medicaid. “We didn’t put out the resources that we did to elect the president and others to have them turn around and cut these programs,” said Eric Kingson, co-director of the Strengthen Social Security Coalition, a group of more than 300 advocacy groups and labor unions.

The defense industry is fighting against spending cuts that would bite weapons makers. The National Association of Manufacturers warns that 1 million private-sector jobs could be lost if pending cuts to defense spending go through.

Companies that make medical devices are trying to stop new taxes on their products under the new health care law. The Charitable Giving Coalition warns that benevolent donations will suffer if they’re no longer tax deductible.

A coalition of medical research groups called Research! America is trying to cut through the noise with stark ads likening spending cuts to poison: “WARNING: Washington politics just might kill you.”

Many advocacy groups are pressing their cases directly. Labor leaders and several business CEOs met Obama at the White House last week, while mayors came to Capitol Hill to make a case to lawmakers against cutting aid to cities.

“Cities have already been at the fiscal cliff — we’ve cut our budgets, we’ve cut our staffs,” said Philadelphia Mayor Michael Nutter, president of the U.S. Conference of Mayors. “We recognize that tough decisions have to be made, but at the same time we have to make sure that we have a seat at the table. As some say in Philadelphia, if you’re not at the table, you’re on the menu.”

That’s a familiar refrain — almost everyone acknowledges that money has to be cut, no one wants it to be theirs.

Advocates for the oil and gas industry say they fully expect the tax breaks they enjoy to be on the table. After all, Obama has been targeting them for years. So, unlike other years when their lobbyists might seek to improve the industry’s hand, the more modest goal this year is to minimize the damage.

“We’re certainly not asking for anything on Capitol Hill,” said Brian Johnson, senior tax adviser for the American Petroleum Institute.

Really?

The institute has started an ad campaign aimed at senators from seven states — all of them up for re-election in 2014. One is Sen. Mark Warner, D-Va.

“Sen. Mark Warner can make energy a big part of improving our economy,” says a TV commercial. “He can choose economic growth and American jobs, not slow them with job-killing energy taxes.”

———

Associated Press writer Josh Lederman contributed to this report.

More like this story

JCLifer 5 months, 3 weeks ago

The more we keep delaying it, the harder it will be later. Might as well grit our teeth and get the next recession started.

This country is doomed. Where are the jobs? Where is our future? Where is our hope?

eileen10 5 months, 3 weeks ago

Everything you need is inside you. Things will get better. We've been through tough times before but the spirit of America has never been broken. I'm proud to be an American and I won't fall into despair for any reason. When times are tough I get tougher just as my forefathers did. Life for many in the 20s and 30s wasn't easy but they didn't give up and they didn't give in. I learned from the records they left that they had inner strength, were resourceful and smart and no matter what they loved their country. I for one will not do any less.

JCLifer 5 months, 3 weeks ago

We are causing our own problems. We don't have to be having tough times. Liberal spending has caused this. We are heading in the wrong direction. We are moving toward failure. We don't have to be suffering. It is hopeless unless folks wake up and demand that the foolishness stop.

JCLifer 5 months, 3 weeks ago

These people now hate our country. They hate our freedom. They hate our constitution and all it stands. They want to destroy it They are tearing it apart and drowning in ir debt.

eileen10 5 months, 3 weeks ago

I feel the guys in charge will pull it together and get us on track. There might be a few black eyes and a bloody nose or two but it will happen.

eileen10 5 months, 3 weeks ago

I don't agree but that's okay. I think a lot of us older folks see things differently. The American spirit will never die. Optomism is alive and well. This country has seen good and bad times and we've always pulled through. We will this time too.

connor 5 months, 3 weeks ago

Things are a little different this time eileen. I doubt the same ones we relied on to get us out of the bad times before can do it again. Whether enough of them still want to or not is the big question. The arrogance of the Cleftwingers is meeting the brutal honesty of the laws of nature and it isn't going to be pretty. We still have a few years yet to stop it I think but we will see.

JCLifer 5 months, 3 weeks ago

Things are a lot different this time. Never before did we have such hatred for the constitution and for our country. It used to be "od, Country, Family" Now it is "E, ME, ME, Wht can i get for FREE?"

Sheople can bury their head in the sand, but they will soon be screaming too when the truth comes out. By then, it will be too late, if it isn't already.

Do they even have a clue how much SIX TRILLION DOLLARS in DEBT is?

eileen10 5 months, 3 weeks ago

I do agree connor. I don't have my head stuck in the sand by any means but I do have faith that we will pull out of this though when that happens I have no idea.

Paroquet 5 months, 3 weeks ago

I've got a record number of fillibusters from the republicans that say you are spot-on. The administration can't get anything done because the opposition won't compromise anywhere. Just like Bush II couldn't get much of anything after 2010 when we, the people, pulled the reins. And a lot of those in power want to keep that one thing, power, and will sell-out their constituency, morals, & principles to keep it.

eileen10 5 months, 3 weeks ago

Here's a bit of what I read in Forbes. It's the beginning of the article." The overwhelming majority of people believe the national debt has never been as large as it is today. However, like so much popular information reguarding the federal govt's budget it simply isn't true. It's been much larger and that period of history hardly saw the collapse of the US economy."There's more but since I'm a two finger typer I won't type the rest or I'd be here all night.

connor 5 months, 3 weeks ago

You mention the debt then switch to the Federal budget. Which are you talking about?

The total debt retained by the public was higher during and after WWII BUT the Federal Budget and mandatory spending was dramatically lower after WWII so that debt could be paid off easier back then. Also one of the more important points is the debt to GDP increase which continues to rise as income drops making it harder to pay off a smaller debt.

Not to mention the willingness to pay that debt off which no one in DC wants to do. After WWII people understood government had to pay the debt and wouldn't be there as a safety net. Today they vote en mass for whomever promises them the goodies.

I haven't seen the CBO figures adjusted for 2012 yet but the curve they drew in 2011 would put said debt at near the 1949 numbers I believe.

eileen10 5 months, 3 weeks ago

I'm afraid I kind of jump around but your pretty good about keeping up with me. I just thought the article was informative and that if someone reads it I could get some in put about it from various people to see what they thought. Anything to do with the budget or debt is related, is it not? This is pretty interesting. How long do you think it would take to get the debt down to a doable figure? Or is that still a big question mark at this point. I remember reading that China I think it was, is in more debt than we are. We give money to other countries. If we stopped would that be a good thing? I'm trying to remember things but I'm afrain my chemo brain does not serve me well.

connor 5 months, 3 weeks ago

Eileen what you need to keep in mind is that it isn't the actual debt we need to worry about. It is the confidence in repaying that debt and the value of the dollar overall to other foreign countries and investors that really matters. They mostly measure this in our dent to GDP percentage and overall mandatory spending levels.

You or I may love this country and think we should spread our wealth around to all. But ultimately if the rest of the world feels we are in too much debt and the dollar is worthless it will be worthless. Each time the debt grows the buying power of the dollar drops. It has lost about 95% of it's buying power since 1913 as it is.

That is an over simple explanation but suffice it to say we are in real trouble. Once the dollar is weak enough and moves are made to remove it as the world reserve currency and default oil purchasing currency the problems really begin. Our creditor nations do not care what type of quality of living we have and may see more advantage for themselves financially if the dollar drops to zero and they have a free hand to meddle in world affairs than waiting for us to pay them back.

eileen10 5 months, 3 weeks ago

You did not make my day. That's some scarey stuff connor but through years of habit I'm going to remain optomistic that a solution will be found by whoever. Dems, Repbs, man in the moon or whoever. I know the amt. is in the trillions which is mind boggling and cuts will have to be made and I saw there's some squabbling about what to do such as SS,medicare etc. so it's still a wait and see thing that we have going on. Once again it's time for a cup of coffee and a few cigs. In the old days it was the men who took care of this kind of thing and the women weren't involved. Right now that sounds like a good idea but logically I know better. I'm hoping the other countries won't do us dirty. Hopefully they'll work with us but don't other countries owe us money ? I need to keep reading and researching because ther's so much to know and my brain can only do so much. And trying to remember everything is hopeless. I just have a gut feeling we'll be okay. Not yet of course, but eventually. Maybe 20 years or so?

eileen10 5 months, 3 weeks ago

I see what your saying and it makes sense. Do you think the press and politicians are low key so the people don't panic or lose faith in the gov't?

eileen10 5 months, 3 weeks ago

Well. I think some people have lost faith but for those who haven't is what I should have said.

eileen10 5 months, 3 weeks ago

Graceful, another poster said your a man. I assumed your a woman but if your a man I said "you go girl" so if your a man I.m sorry for that. If it helps and if your a man "You go guy!"

3633 5 months, 3 weeks ago

Whatever the debt is the United States will survive, however if you want to stay in a doomsday mindset, you will never be statisfied. Things will get better sooner or later, however the time is now to work harder to help get it done. When times are the way they are now, it does not help to say there is no way out, because it is. Yes, it will be hard and is hard, but again when times get tough the tough get going, not run and say all is bad and dead, because I'm not dead and and long as I'm still here then I know I have something to do to help!!!! Sounds almost like telling a little kid they will never be anything and never have a chance to succeed; none of what we are facing just happened and won't end right away and all of us know it!!!! .

jcguy25 5 months, 3 weeks ago

I agree 3633. I'm sure back 30-40 years ago, there were people then going on about the direction of the country, after WWII, after implementing social programs, SS, Vietname, etc. There will always be people saying we are heading in the wrong direction, the country is in decline, our children will suffer with such a large national debt. But the facts are, the country has not declined. We've had our ups and downs, but always made it through. Times have been tough for some, better for others and it will always continue that way. We adapt and move on. Ignorant comments that President Obama hates the country and wants to see it fail, or that all Democrats are freeloaders, uneducated and poor, are just that, ignorant.

3633 5 months, 3 weeks ago

Also, you keep saying Liberal spending caused this. What about two wars that were not added into the budget and also Prescription Drug D. All this fuss over things now but not a word when all this happened. Also, Congress is suppose to declare war, but not a word about that. Let's move on and work on getting things together now. The election is over and President Obama won and if things don't get better perhaps the next president will; but for now let's work together not apart!!!!

eileen10 5 months, 3 weeks ago

I agree. We do need to work together. I also know we'll eventually get out of this situation we're in. I'm trying to learn everything I can and this would be so much better if the higher ups could see eye to eye but I don't see much of that happening. But it's been like that all along and we're still on the map so I guess we'll continue to push on and do what ever ....

connor 5 months, 3 weeks ago

Funny the Cleftwing loons are all about working together when they believe they have the advantage to getting their way. They throw around accusations of double standards that do more to show their own hypocrisy than any other point. Libya was fine when their boy does it etc.

I have said many times it is the spending and Bush's spending was bad as well and the Democrats were pushing that spending then as well and forcing his hand the entire way. Maybe he didn't require much force to spend that money but it was something like 8 Trillion dollars ago and not nearly as dangerous a figure back then.

You say "let's work together" but Liberals have never compromised on anything. All they want is spend and tax.

eileen10 5 months, 3 weeks ago

I think it's time for a headache. Ouch.

eileen10 5 months, 3 weeks ago

I just read an article " How to cut the defecit without stabbing America in the back" by Bill Scher and he seems to have some good ideas. I also read or rather scanned an article about Pres. Obama's spending and it said he was actually one of the lowest spenders next to Pres. Ike. There was a lot of info. so I'm not sure of the entire content but thats another example of the fight between the left and right I guess because with what's said there's always something to counter it. I'll just keep on reading different things from different people and maybe in 500 years I'll know something.

Paroquet 5 months, 3 weeks ago

It's not unusual for me to get the low-down on a story of interest to me from six different media outlets. AP, UPI, whomever else is running it on the majors, and finally as local as possible. You pay close attention to those that don't follow the herd, and see if there is any corroboration elsewhere. After that, you have a fairly decent grip on what is most likely the truth of the matter. That's why I beat-up on the Tribs (JC & COMO) so much on shoddy local stories--they should be an exemplary provider of accurate journalism and the "horse's mouth" on local happenings, not a gabby gossip.

connor 5 months, 3 weeks ago

Those who attempt to paint OBummer as a low spender always rely on not assigning Obama any blame for the Stimulus fiasco that his administration wrote and they always try and go back to Eisenhower and the post WWII payoff.

Even taking those two things into account overall spending is still up over Obummer but like Washington tries to do they somehow call a reduction in increase a reduction. In a few areas Obama has not increased spending as much as some other Presidents so by picking and choosing the facts you want to present (Enron accounting) you can make a claim for anything.

Obama did most of his payoffs and huge spending in 09 and has since not raised the already out of control levels much but he doesn't need to because they are already out of control.

Deficit to GDP ratio has increased under Obama more than at any given time prior to WWII. Basically Obama has not increased spending as much as other Presidents (although it has increased) post 09, but he has also seen a decrease in revenue which means his smaller increases hurt more and create larger deficits.

It isn't policy that has forced a decrease in the spending increase lately it is lack of revenue. The Left would like you to believe that increasing taxes will bring more revenue but it won't it will simply decrease the revenue the next year.

Basically saying Obama spends less is like saying you had more money before taking out that new car loan. While technically true you are not counting the car loan as spending.

Paroquet 5 months, 3 weeks ago

Don't forget, Connor: Obama is paying Bush-Cheny bills, and a war begun under his leadership.

connor 5 months, 3 weeks ago

As I said Bush caved to the Democrat spending guilt trip while they controlled the house and senate. He shouldn't have caved but he did and with the increased revenue we had in the early 2000's the only thing he had to stand on to refuse the Left's spending was a what if scenario of bad times ahead. No one was buying that so the spending started.

Well those times are gone and the spending continues.

As far as the war goes well so what? Obama has now continued it on as long as Bush had because he is facing the same issues as Bush. No one wants to do what we have to do because of Leftist whining so they just stay there doing nothing but spending money and making no progress. Again in the early 2000's we had the money we don't have it now.

I true leader can adapt to the situation and make the necessary adjustments. Life is fluid. All Obama does is spend and blame Bush.

spelchek 5 months, 3 weeks ago

How is Obama paying bills while he's doubling down on Bush (Dem congress) spending? Bush was a lame duck his last two years making him relevant the first six (2000-2006). Obama just inherited the past six years (four completely owned by Dems) of Democrat spending, that dog don't hunt any more (with the exception of the sycophants that buy into your antiquated argument).

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