f{"id":18198,"date":"2021-04-01T15:25:36","date_gmt":"2021-04-01T22:25:36","guid":{"rendered":"http:\/\/occupysf.net\/?p=18198"},"modified":"2021-04-01T15:25:39","modified_gmt":"2021-04-01T22:25:39","slug":"corporate-dems-show-progressives-how-to-play-hardball","status":"publish","type":"post","link":"https:\/\/occupysf.net\/index.php\/2021\/04\/01\/corporate-dems-show-progressives-how-to-play-hardball\/","title":{"rendered":"Corporate Dems Show Progressives How To Play Hardball"},"content":{"rendered":"\n

Progressives politely refused to wield power to secure a $15 minimum wage, now conservative Dems are wielding power to secure tax cuts for the wealthy.<\/h4>\n\n\n\n
David Sirota<\/a>\u00a0and\u00a0Andrew Perez<\/a> March 31, 2021 (The Daily Poster)<\/a><\/td><\/tr><\/tbody><\/table>\n\n\n\n

This report was written by David Sirota and Andrew Perez.<\/em><\/p>\n\n\n\n

Earlier this month, progressive lawmakers refused<\/a> to withhold their votes on must-pass COVID-19 stimulus legislation until the bill included a $15 minimum wage. A few weeks later, conservative Democratic lawmakers are now threatening to withhold their votes on must-pass infrastructure legislation until the bill includes large tax cuts for the wealthy. <\/p>\n\n\n\n

The contrast in tactics spotlights a decisive asymmetry in congressional politics right now: The right wing of the Democratic Party is willing to play hardball on behalf of the affluent, to the point of threatening to take down one of President Joe Biden\u2019s signature legislative initiatives, an infrastructure and climate plan he will detail<\/a> on Wednesday. <\/p>\n\n\n\n

By contrast, the left wing of the party has not yet been willing to play the same kind of hardball on behalf of the working class \u2014 and that refusal ultimately helped kill a promised wage hike in the recent pandemic aid bill and could similarly imperil other progressive priorities. <\/p>\n\n\n\n

\u201cDoes Not Have A Position\u201d<\/strong><\/h4>\n\n\n\n

The tax issue revolves around federal write-offs for state and local taxes \u2014 colloquially called SALT deductions. Donald Trump\u2019s 2017 tax bill limited such deductions to $10,000. The move was perceived as a mean-spirited shot at blue states<\/a>, which often have higher state and local levies to fund more robust public services. But on the merits, the policy serves to limit tax deductions primarily for higher-income households<\/a>. <\/p>\n\n\n\n

As The Daily Poster<\/a><\/em> reported back in January, congressional Democrats in states like New York and New Jersey have been pushing for a repeal of the SALT deduction caps. Biden declined to<\/a> include the SALT cap repeal in the American Rescue Plan. <\/p>\n\n\n\n

If the SALT cap was fully repealed, nearly all \u2014 96 percent \u2014 of the tax benefits would flow to the top quintile of earners, and more than half of the benefits would go to the top 1 percent of earners, according to data from the Brookings Institution<\/a>. Congress\u2019s Joint Committee on Taxation found<\/a> that the majority of the benefits of a SALT cap repeal would flow to households earning more than $1 million.<\/p>\n\n\n\n

On its face, the notion of passing a massive tax cut for the wealthy \u2014 one that would reportedly cost $139 billion<\/a> over two years \u2014 should sound wildly offensive after Democrats spent so much time<\/a> over the past few months debating whether to cut off COVID survival checks to individuals who earned more than $50,000 in 2019, because some conservative Democrats were allegedly concerned that cash might go to some people who don\u2019t need it. <\/p>\n\n\n\n

But amazingly, despite the regressivity of eliminating the SALT deductions \u2014 and even though there are progressive alternatives<\/a> to fix some of the purported problems with the SALT cap \u2014 progressive lawmakers are split on the idea of a repeal. <\/p>\n\n\n\n

Congressional Progressive Caucus chair Pramila Jayapal, D-Wash., said Tuesday<\/a> her caucus \u201cdoes not have a position\u201d on the tax breaks, according to Aida Chavez, a reporter for The Nation.<\/em><\/p>\n\n\n\n

Some progressives<\/a>, such as New York Reps. Mondaire Jones and Jamaal Bowman, support the repeal, in solidarity with other lawmakers in their states. But New York Rep. Alexandria Ocasio-Cortez voted<\/a> against repealing the SALT caps in late 2019, citing<\/a> data showing that it would primarily enrich the wealthy \u2014 and she continues<\/a> to oppose a repeal.<\/p>\n\n\n\n

Now, three conservative Democrats \u2014 Reps. Bill Pascrell and Josh Gottheimer of New Jersey and New York Rep. Tom Suozzi \u2014 are saying<\/a> they will vote against any tax-related legislation that does not eliminate the caps, according to Washington Post<\/em> reporter Jeff Stein. <\/p>\n\n\n\n

Their position could threaten Biden\u2019s ambitious new plan to spend $2 trillion to improve the nation\u2019s roads, bridges, rail lines and utilities. The White House intends to fund the program through new tax hikes, including raising the corporate tax rate<\/a> from 21 percent to 28 percent for the 15 years. In a narrowly divided House \u2014 currently split 219-211 \u2014 those three Democratic votes could prove decisive.<\/p>\n\n\n\n

\u201cNo SALT, no deal,\u201d Suozzi said<\/a> in a press release Tuesday. \u201cI am not going to support any change in the tax code unless there is a restoration of the SALT deduction. The cap on the SALT deduction has been a body blow to New York and middle-class families in New York.\u201d<\/p>\n\n\n\n

Actually Wielding Power<\/strong><\/h4>\n\n\n\n

Whatever side of the issue you may be on, one thing is clear: This trio of lawmakers is leveraging their position and demonstrating how Congress actually works. <\/p>\n\n\n\n

All the press releases, tweets, cable TV appearances and fancy Washington titles can trick the casual observer into thinking rank-and-file lawmakers have all sorts of levers of power \u2014 but in reality, most members of Congress have very little real-world legislative power other than their vote. The more narrowly divided the House, the more power each individual lawmaker has, because congressional leaders need their votes to pass legislation. <\/p>\n\n\n\n

In this situation, three relatively obscure, low-profile legislators who are not major social media brands are utilizing that power to defend the interests of the wealthy. Sure, it\u2019s grotesque \u2014 but in terms of pure power politics, they are taking a stand and seizing a spot at the negotiating table not by merely tweeting about it or making vague promises to \u201cpush\u201d for something, but by wielding their voting power to try to force the Biden White House and the congressional leadership to deal with the issue in a bill the party sees as a necessity.<\/p>\n\n\n\n

This is the opposite of what congressional progressives did on the minimum wage during the debate over the American rescue plan. <\/p>\n\n\n\n

Progressive lawmakers sent a letter<\/a> asking Vice President Kamala Harris to ignore the Senate parliamentarian\u2019s advice<\/a> and allow a $15 minimum wage to stay in the bill. But they never drew a line in the sand and said they would be \u2014 or would even consider \u2014 withholding their votes on the bill if a $15 minimum wage was excluded. <\/p>\n\n\n\n

And because they didn\u2019t wield power in the way conservative Democrats are wielding power on SALT deductions, the Biden White House knew these progressives could be ignored and the $15 minimum wage was eliminated from the legislation. <\/p>\n\n\n\n

If that wasn\u2019t bad enough, after the $15 minimum wage was killed, Jayapal gave cover to Biden by insisting after the fact that he is still \u201ccommitted\u201d<\/a> to the wage hike, even though he didn\u2019t lift a finger to make it happen when it had its best chance under Senate reconciliation rules. <\/p>\n\n\n\n

How To Be At The Table, Rather Than On The Menu<\/strong><\/h4>\n\n\n\n

Last week, progressive lawmakers got a special, feel-good meeting<\/a> with White House chief of staff Ron Klain to talk about the $15 minimum wage. While he reportedly reiterated Biden\u2019s commitment to a wage hike, there has been no indication out of Washington yet that Democrats have a real plan to pass such a measure. <\/p>\n\n\n\n

The only hint of a plan to raise the wage so far is not encouraging. The Intercept<\/a><\/em> reported Monday that Senate Majority Chuck Schumer is considering attaching the $15 minimum wage measure to Biden\u2019s new infrastructure package \u2014 legislation that will likely be passed under the budget reconciliation process by a simple majority vote, as the American Rescue Plan was. <\/p>\n\n\n\n

However, just last month, Senate parliamentarian Elizabeth MacDonough said that in her opinion, a $15 minimum wage increase did not comply with reconciliation rules. Instead of ignoring that opinion or simply replacing her, Senate Democrats took the measure out<\/a> of their bill. Then, eight Democrats joined Republicans to reject an amendment to add the minimum wage measure back to the bill, helping create a new precedent excluding minimum wage hikes from reconciliation legislation. <\/p>\n\n\n\n

Schumer now insists he sees some \u201cglimmer of hope that the parliamentarian would rule differently this time: The new legislation is focused on infrastructure, and setting wages is directly related to the budget impact of any infrastructure spending,\u201d according to The Intercept. <\/p>\n\n\n\n

But unless the whole Democratic caucus in the Senate is now committed to supporting the overall infrastructure package with a wage hike \u2014 no matter what the parliamentarian says \u2014 Schumer\u2019s idea should be considered a way to make it look like Democrats are fighting to pass a $15 minimum wage without ever actually using their power to make it happen. <\/p>\n\n\n\n

As we wrote last week, the best chance Democrats have to pass a $15 minimum wage starts with eliminating the filibuster<\/a>. Short of that, progressive lawmakers can talk all they want about how important it is to finally raise the minimum wage, but until they start threatening to vote down must-pass legislation \u2014 or actively doing so \u2014 no one will take their demands seriously.<\/p>\n\n\n\n

This isn\u2019t rocket science. This is negotiation 101. Whether a labor-management tussle, a business pact or a legislative debate, if you aren\u2019t willing to condition support for a final deal on a set of clear demands, then your demands will likely be ignored. <\/p>\n\n\n\n

Conservative Democrats fighting for tax cuts for their wealthy donors seem to understand this. Progressive Democrats who say they are for a $15 minimum wage but never made firm demands either did not understand this, or were willing to sacrifice their stated priority for the good stuff in the final bill.<\/p>\n\n\n\n

Maybe that latter decision is justifiable, maybe not. But until progressives are willing to play the same kind of hardball as their conservative Democratic opponents, they should expect to continue being on the menu, not at the table \u2014 and the $15 minimum wage will probably remain in limbo.<\/p>\n\n\n\n

\n\n\n\n

This newsletter relies on readers pitching in to support it. If you like what you just read and want to help expand this kind of journalism, consider becoming a paid subscriber by clicking this link<\/a>.<\/strong><\/em><\/p>\n\n\n\n

Got this email from a friend? Click here to subscribe.<\/strong><\/em><\/p>\n\n\n\n

Subscribe now<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Progressives politely refused to wield power to secure a $15 minimum wage, now conservative Dems are wielding power to secure tax cuts for the wealthy. David Sirota\u00a0and\u00a0Andrew Perez March 31, 2021 (The Daily Poster) This report was written by David Sirota and Andrew Perez. Earlier this month, progressive lawmakers refused to withhold… Continue reading → <\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-18198","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nCorporate Dems Show Progressives How To Play Hardball -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/occupysf.net\/index.php\/2021\/04\/01\/corporate-dems-show-progressives-how-to-play-hardball\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Corporate Dems Show Progressives How To Play Hardball -\" \/>\n<meta property=\"og:description\" content=\"Progressives politely refused to wield power to secure a $15 minimum wage, now conservative Dems are wielding power to secure tax cuts for the wealthy. 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