The Republican Party is in the midst of some impressive political jiu-jitsu. Not only are they conducting their own post-election autopsy, but simultaneously they have convinced well-funded outside groups to spend money defending their unilateral proposal to raise taxes.
Some right-leaning pundits are providing air cover, trying to frame the offer as a strategic retreat that allows the GOP to live again to fight another day. The desire to hide from the left’s class warfare rhetoric was predictable and misguided. Caving on taxes will not inoculate the Party from Alinksy-style demagoguery; it will only serve as justification for further attacks.
What the Republican Party should do – and could have done earlier this year – is take the Washington establishment’s “big” problem head on. In 2008, then-Senator Barack Obama called the U.S. Export-Import Bank “little more than a fund for corporate welfare.” He was right, and Republicans should have called him out for his hypocrisy. Instead, Republicans in the House and the Senate held hands with their Democrat colleagues to extend and expand the program.
It was an embarrassment.
Fortunately, Ex-Im Bank is set to expire in 2014, giving Republicans yet another opportunity to prove to the American people that they are not a political party turned corporate pass through.
To be clear, supporters of the taxpayer-backed bank, which functions like a Fannie Mae for exporters, avoid characterizing it as big business corporate welfare. When the Export-Import Bank opened a new office in Seattle, the local NPR affiliate ran a story on the Bank’s support for a local coffee shop owner who wanted to “start a business in his native country of Ethiopia to sell milk.” That’s right, under the guise of helping small business and increasing exports, taxpayers are essentially guaranteeing a startup milk distribution business in Ethiopia.
Of course, the Bank does much more than this. Recently, the Bank announced it “will guarantee up to 90 percent of $450 million in liquidity offered by a JPMorgan Chase loan to suppliers of Caterpillar Inc.” To state the obvious, these are not small companies; in fact, they have market capitalizations of $162 billion and $58 billion, respectively. Yet, taxpayers are on the hook, potentially, for $405 million.
Amusingly, earlier this year, Senator Dick Durbin (D-IL) mentioned small businesses four times in his floor speech, but concluded with a plea for big businesses, including “Caterpillar in my State.”
Bernie Sanders and Robert Reich Are Confused by Economics. And Government. And Reality | Seton Motley