Friday, June 29, 2012

The ACLU: Not just a bunch of liberal hacks, continued

Laura W. Murphy: 'Fixing' Citizens United Will Break the Constitution: "In “Fixing Citizens United,” Professor Geoffrey Stone -- usually a friend to the First Amendment -- argues for a constitutional amendment to “fix” the Citizens United Supreme Court decision. Professor Stone mentions the proposal rather offhandedly, but the idea is a nuclear option. A constitutional amendment -- specifically an amendment limiting the right to political speech -- would fundamentally “break” the Constitution and endanger civil rights and civil liberties for generations."

Murphy is the director of ACLU's Washington legislative office. They're obviously advancing a radical liberal agenda.

Thursday, June 28, 2012

Conservatives vexed to discover Congress has power of taxation

Well, not all of them. But some of them. Take this tweet, for example:


Which, well, yes.

The second-most-trafficked blog post I've ever written here is one I wrote while reading The Federalist Papers.  It's where I dive deep to discover that the Founders intended that Congress have unlimited power of taxation.  Now they obviously didn't expect that it would be used in unlimited fashion, but they were very specific that the power had to be unbounded. Here's one Constitutional case where we don't have to speculate about their intent, because they told us.

Here is Alexander Hamilton in Federalist 31:
As the duties of superintending the national defense and of securing the public peace against foreign or domestic violence involve a provision for casualties and dangers to which no possible limits can be assigned, the power of making that provision ought to know no other bounds than the exigencies of the nation and the resources of the community. 
As revenue is the essential engine by which the means of answering the national exigencies must be procured, the power of procuring that article in its full extent must necessarily be comprehended in that of providing for those exigencies.
As theory and practice conspire to prove that the power of procuring revenue is unavailing when exercised over the States in their collective capacities, the federal government must of necessity be invested with an unqualified power of taxation in the ordinary modes.
The lack of limits, I think, suggests that the federal government indeed has the power to tax anything that moves. And anything that doesn't move.

I suppose you can argue that taxing people in order to encourage them to buy health insurance doesn't qualify as an "ordinary mode"--but as Chief Justice John Roberts noted in today's opinion upholding the Affordable Care Act, government uses tax policy to encourage and discourage all sorts of behaviors. That horse is out of the barn, and with the full-throated support of a good number of Republicans.

I can understand why conservatives might be disgruntled about today's ruling, though I don't think they have as much to be upset about as they think they do. But if you're going to be mad that the federal government has the power to tax you, don't get mad at John Roberts--he didn't invent the power. The Founders did.

Next up: Barack Obama to put a tax on singing 'The Star-Spangled Banner'

"“Today’s decision will go down in infamy. It marks the moment when we all lost our freedom because the Supreme Court drew a road map to guide those dedicated to imposing a totalitarian, statist government on the American people. 
“The majority opinion on the individual mandate, authored by Chief Justice Roberts, held that, so long as failure to comply with a government directive is penalized by something ‘reasonably’ called a tax, Congress can force Americans to buy anything. It can force Americans to do something, indeed anything, like eat broccoli. It can force Americans not to do something, like not be obese. Or even not sing the Star Spangled Banner. All of this would be lawful under this ruling today. 
“There is no limit on the evil coming, unless we amend our Constitution. A dark day for America, indeed.” 
Maureen Martin
Senior Fellow for Legal Affairs
The Heartland Institute "
Emphasis added. No other comment offered.

Hey liberals: Get ready for the next Supreme Court battle

Ben and I have a fresh-fresh-fresh Scripps Howard column this week, reflecting on what lessons can be learned from the Supreme Court's ruling upholding the Affordable Care Act. Taking the victory at face value—though maybe I shouldn't—here's my take:

Liberals, enjoy the victory -- because now everything gets harder. 
And I mean everything. The Supreme Court's ruling doesn't end the debate over the Affordable Care Act, it simply throws it back to Congress. Obamacare-hating Republicans already run the House of Representatives. Further Republican victories in November could lead to an outright repeal of the law. It may be years -- if ever -- before the act joins Medicare and Social Security in relative safety from GOP assaults. 
Beyond that, liberals should understand -- as conservatives almost certainly do -- that the fight over Supreme Court nominees will become even more intense going forward. Conservatives don't believe that their argument failed; they believe that Chief Justice John Roberts failed. And they'll act accordingly. 
Remember Harriet Miers? George W. Bush nominated her to the court in 2005 -- but withdrew the nomination in the face of opposition from angry conservatives who felt insufficiently assured she'd take their side on the big issues. Conservatives have demanded those assurances ever since David Souter joined the court's liberal bloc after being appointed by a Republican president. 
They will double down on those efforts. And given the trend of recent years, no one should be surprised if -- when -- Republicans then filibuster the next Supreme Court appointment made by a Democratic president. The customary deference given a president in such matters will evaporate. 
Democrats should be planning and preparing for those clashes now. 
They should also be prepared to modify and improve the law over time. 
The truth is that Obamacare's individual mandate is a blunt, inelegant instrument to expand health coverage in the United States -- flawed, but also what was politically possible at the time it passed. Over time, it will need amending and refinement. That will take a lot of work. 
The defense of Obamacare isn't over. Thanks to John Roberts, it has just begun.

Did John Roberts actually just kill the Affordable Care Act?

Although I have a Scripps Howard column coming out soon that suggests otherwise, I think it's possible that Chief Justice John Roberts decided to kill the Affordable Care Act today--not with the beheading that everybody was expecting, but with a slow-acting poison.

Consider this.

One of the big things the Affordable Care Act does is make it nearly impossible for insurance companies to deny coverage for pre-existing conditions. That removed a big obstacle for many people obtaining insurance, but it also created a problem--burdening those companies with huge medical costs that they were otherwise avoiding. The individual mandate was intended to solve that problem by sending lots of healthy people (and their cash) to the insurance companies, allowing the insurers to still make money.

By reframing the mandate as a tax, though, Roberts may have found the mechanism that blows the house of cards apart. Here he is, delivering the majority opinion:
Indeed, it is estimated that four million people each year will choose to pay the IRS rather than buy insurance. ... We would expect Congress to be troubled by that prospect if such conduct were unlawful. That Congress apparently regards such extensive failure to comply with the mandate as tolerable suggests that Congress did not think it was creating four million outlaws. It suggests instead that the shared responsibility payment merely imposes a tax citizens may lawfully choose to pay in lieu of buying health insurance.
And:
First, for most Americans the amount due will be far less than the price of insurance, and, by statute, it can never be more. It may often be a reasonable financial decision to make the payment rather than purchase insurance.
Now. I doubt Republicans would mount a campaign to get everybody to pay the tax and avoid health insurance in order to undermine the purposes of he Affordable Care Act. But if the mandate is now framed in the popular mind as a "cheap tax I can pay" instead of a "rule that I must follow," it's possible that many young, poorly paid people will opt to pay the tax--and that insurance companies will drown over time as a result.

UPDATE: Ezra Klein is thinking along similar lines.

Wednesday, June 27, 2012

At Imprimis: Richard Vedder is wrong; education pays

At Imprimis—the "most influential conservative publication you've never heard of"—Ohio University economics professor Richard Vedder argues that the federal government is creating more problems than benefits with its student loan programs, and along the way makes a weird observation:
What about higher education being a vehicle for equal economic opportunity or income equality? Over the last four decades, a period in which the proportion of adults with four-year college degrees tripled, income equality has declined. (As a side note, I do not know the socially optimal level of economic inequality, and the tacit assumption that more such equality is always desirable is suspect; my point here is simply that, in reality, higher education today does not promote income equality.)
Vedder kind of gives the game away with his postscript—he doesn't care about income inequality, he just thinks it a handy tool to use in the argument against education. And it's true in a very narrow sense that increased access to college hasn't reduced income inequality. In truth, it's probably contributed a bit. Check out this chart:

Would you rather have a four-year college degree—likely with above-average earnings and below-average unemployment—or do you want to just keep that high school diploma?

Or study the numbers here: Between 1990 and 2008, a man with a high school diploma saw his earnings grow just 61 percent—that lagged the 67 percent inflation rate during that same period. Men with bachelor's degrees saw a 209 percent increase in income; men with PhDs saw a 227 percent increase.

Getting a good education, it seems, has been really smart way to stay ahead of the inequality trend.

And that matters, because college education—while more pervasive than it ever has been—is still the exception than the rule: Adults with four or more years of college comprised less than 30 percent of the population in 2009. Combine the relative scarcity of diplomas with the income benefit those diplomas conferred, and you get part of the explanation for increased income inequality in the United States in recent decades.

There are other things that Vedder, to my mind, gets wrong, and clearly we need to talk about how we pay for education and get it delivered. But Vedder's case is premised on this wrongheaded—misleading—idea that college education hasn't been very helpful economically, so to hell with the federal government helping young people get a degree.

Tuesday, June 26, 2012

Citizens United, the FIrst Amendment, and the Daily News

I bow to no man in my love of the Philadelphia Daily News, but I'm occasionally driven to distraction by one odd habit of the newspaper: Printing letters to the editor that are simply wrong or misleading on the facts—without correction or any indication to readers that the information in the letter is incorrect.

Understand, I'm not talking about a difference of opinion here. I'm talking about easily quantifiable distortions, like Michael Kubacki's letter in today's paper:

In fact, prior to Citizens United, there were a number of corporations that enjoyed unlimited political-speech rights. Philadelphia Media Network Inc., which owns the Daily News, was one of them. In fact, every corporation that owned a newspaper or a radio or TV station was allowed to say whatever it wished, whenever it wished. Other corporations, however, could not. The major effect of the Citizens United case was simply to level that playing field. 
Let us cut through the usual dreary rhetoric about "billionaires" and the "super-rich" who "buy themselves a candidate," and ask some simpler questions. First, why should corporations like Philadelphia Media Network Inc., CBS and the New York Times be permitted to pummel us daily with their political views while Monsanto and Target and BP must be completely silent? And second, when did political speech in America, by anyone, become something that must be suppressed? What an strange attitude for a newspaper to adopt.
Here's the problem: Kubacki is muddling two different kinds of "speech."

In terms of shouting one's opinions to the world, Monsanto, Target, and BP don't have to be completely silent—they're as free as the Daily News or the New York Times to spread word of their views through print and broadcast, and often do. Who hasn't seen BP's "greenwashing" ads in print on TV, for example? 

By the same token, the Daily News—which I'm guessing has not made corporate contributions to campaigns, at least not recently—has never had any more freedom (or less) to make cash donations to political campaigns than BP, Monsanto, etc.

So Kubacki's thesis—that papers somehow have more speech rights, before Citizens United, than other businesses—is simply, demonstrably wrong. But the Daily News' readers won't know that. That's a disservice to those readers and to the Daily News.