Sunday, January 27, 2013

On immigration, Obama seeks to cement Latino vote for Democrats

There is an art to political stagecraft, a sort of medium-is-the-message thing, which explains why President Obama will be in Las Vegas on Tuesday to begin his effort to overhaul the nation's confounding immigration system.

For generations, the West was a Republican stronghold, the land of Goldwater and Reagan and sagebrush rebels. But a change began under President Clinton and was hastened under President Obama, who twice added Nevada and Colorado to the Democrats' stable of support in the West.

The reason, in short, is Latino voters.

The rise of Latino power, which began in California as a backlash to the heated rhetoric surrounding Proposition 187, the 1994 anti-illegal-immigration initiative, has steadily spread eastward, giving once-red states a distinctly more blue tinge.

There may be no better illustration than California's next-door neighbor.

Obama won Nevada in 2008 by a whopping 12 percentage points. By all rights, however, Republican Mitt Romney should have been strongly competitive there in 2012. He had an organizational base among the state's large Mormon population, and Nevada has been an economic basket case for years, with jobless, foreclosure and bankruptcy rates that set a national standard for awfulness.

Obama carried the state, however, winning in November by more than 6 percentage points.

Strong Latino support is one reason. What happened in Nevada reflected the results nationwide: The percentage of Latino voters grew to 18% of the electorate, from 15% in 2008, and Obama won their support by a crushingly large margin.

Immigration has become the Democrats' wedge issue, drawing small-business-owning and culturally conservative Latinos away from the GOP in the way Republicans long used abortion and other contentious social issues to pry working-class Democrats away from their party moorings.

As an added political benefit to Democrats, the issue of illegal immigration splits the GOP between enforcement-only hard-liners and advocates of a more balanced approach that would mix fortified borders with some path to citizenship for the millions of immigrants in the United States illegally. To hard-liners, that amounts to amnesty for lawbreakers and an unacceptable capitulation to Obama and his fellow Democrats.

The president used last week's inaugural address to signal that immigration reform, one of the unfulfilled promises of his first term, would no longer be overlooked.

America's journey "is not complete until we find a better way to welcome the striving, hopeful immigrants who still see America as a land of opportunity," he said to strong applause from the hundreds of thousands gathered on the National Mall.

Latinos in Congress who met with Obama on Friday said the president described the issue as his top legislative priority.

Obama's remarks in Las Vegas are likely to cover proposals he has called for in the past: tougher border security, a crackdown on employers who hire illegal workers and a way for undocumented immigrants to responsibly "earn" their way to U.S. citizenship. More details are expected in the president's State of the Union address on Feb. 12.

The political message on Tuesday, however, may be more significant than the substance.

The goal for Democrats is to lock in their strong Latino support and the votes of succeeding generations, the way the party has in California, so candidates can devote more time and resources to red states like Arizona and Texas that should, the demographics suggest, grow more competitive in 2016 and beyond.

Obama may have run his last election campaign. But one thing he would like to bequeath to fellow Democrats is a solid electoral college base rooted in the West to offset the advantage Republicans enjoy across the South.

His Las Vegas appearance is a step toward that second-term goal.

Tuesday, January 8, 2013

Obama Said Close to Choosing Lew for Treasury Secretary

President Barack Obama may choose White House Chief of Staff Jack Lew to replace Treasury Secretary Timothy F. Geithner as soon as this week, according to two people familiar with the matter.

The selection of Lew would trigger a White House shuffle for Obama’s second term as he replaces his chief of staff and moves senior aides into new roles, said the people, who requested anonymity to discuss personnel matters.

While Obama hasn’t made a final decision to pick Lew, the president’s staff has been instructed to prepare for his nomination, said one of the people.

Obama has several other cabinet and cabinet-rank jobs to fill, including commerce secretary, Environmental Protection Agency administrator, U.S. trade representative and director of the Office of Management and Budget.

The next Treasury secretary will play a leading role in working with Congress to raise the government’s $16.4 trillion debt ceiling. The U.S. reached the statutory limit on Dec. 31, and the Treasury Department began using extraordinary measures to finance the government. It will exhaust that avenue as early as mid-February, the Congressional Budget Office says.

Geithner plans to leave the administration by the end of January even if the debt ceiling issue hasn’t been settled.

White House press secretary Jay Carney did not directly answer yesterday when he was asked whether Obama would seek to have a new Treasury secretary confirmed before Geithner leaves.

“I have no other announcements to make or updates to give with regards to personnel,” Carney said. “I am sure that when the president nominates a successor to Secretary Geithner, he will look forward to speedy consideration by the Senate.”

“But I don’t have a timetable for that,” he said.
Budget Talks

The debt limit will be the first in a series of fiscal negotiations in the new year between the Obama administration and Republicans, who have a majority in the House of Representatives, over the budget and spending.

While Obama has vowed he won’t bargain with the debt ceiling, Republicans such as Senate minority leader Mitch McConnell have said they want to link it to spending cuts.

Markets rallied last week after negotiations between the White House and congressional Republicans led to passage of a law raising income-tax rates to 39.6 percent for couples with annual income above $450,000 while extending tax cuts for lower incomes. The Standard & Poor’s 500 Index (SPX) dropped 0.3 percent to 1,461.89 at 4 p.m. yesterday in New York before the start of earnings season.
Spending Cuts

The deal on taxes delayed until March 1 automatic budget cuts, setting up another hurdle to be negotiated.

While Lew did not directly negotiate with Congress on the eleventh-hour budget deal, which averted more than $600 billion in tax increases and spending cuts, he helped supervise the White House strategy and briefed Wall Street executives on the talks.

As a former aide to the late House Speaker Tip O’Neill, a Massachusetts Democrat, and a two-time director of the Office of Management and Budget, Lew, 57, has experience on both ends of Pennsylvania Avenue. He’s spent most of his career in government, with a brief detour to Wall Street, where he worked as a managing director for Citigroup from July 2006 until the end of 2008.
Cabinet Selections

After selecting former Senator Chuck Hagel as defense secretary and counterterrorism adviser John Brennan as CIA director yesterday, Obama will turn his attention to filling out the rest of his second-term cabinet. On Dec. 21, Obama announced his choice of Senator John Kerry, a Massachusetts Democrat, as secretary of state, replacing Hillary Clinton.

The nominations for those positions as well as Treasury secretary are subject to Senate confirmation.

Among the leading candidates to replace Lew as Obama’s chief of staff are Denis McDonough, currently a deputy national security adviser, and Ron Klain, who had served as Vice President Joe Biden’s chief of staff.

McDonough, who worked as an aide to former Senator Tom Daschle as well as in Obama’s Senate office, joined the National Security Council as deputy director of strategic communications at the start of Obama’s term. When Tom Donilon became the NSC director after General Jim Jones departed, McDonough became an assistant to the president and the deputy national security adviser.

Klain served as chief of staff to both Biden and former Vice President Al Gore. In January of 2011, he left the White House and returned to Case Holdings, the holding company of AOL co-founder Steve Case and served as an outside adviser to Obama. 

Wednesday, January 2, 2013

Fiscal deal leaves central question of Obama presidency unresolved

One way to understand the fiscal cliff compromise which passed the Senate this morning is through the prism of the larger question at the heart of this whole fight: What should the safety net of the 21st century look like, and who should pay for it?

Presuming the Senate deal passes the House, what happened yesterday is that Democrats scored a victory on part two of that question — albeit only a partial one — while successfully deferring the epic, looming battle over the first part of it. Meanwhile, Republicans retained their leverage heading into round two, and thanks to the way things unfolded, they will likely walk into it more confident of winning major future concessions.

The good news is that for now, the basic social contract underlying the progressive reforms of the last century remains intact. Neither the rise in the Medicare eligibility age nor the Chained CPI for Social Security happened; Democrats have temporarily held off the GOP drive to cut the safety net. Meanwhile, Democrats finally broke the GOP’s opposition to the rich paying more in taxes — the party’s organizing principle for years now — successfully making the tax code somewhat more progressive. The short term big picture is that Dems won on two major fronts — no entitlements cuts, and tax hikes for the rich — which helps explain conservative rage over the deal.

So why are liberals also angry? Partly because this was only a partial Dem victory, since Dems agreed to a higher income threshold ($400,000 for individuals and $450,000) and made concessions on the estate tax. That didn’t have to happen, since doing nothing — and allowing the Bush tax cuts to expire — would have meant even more in revenues from the rich.

As Paul Krugman’s calculations show, this may not really have cost Dems all that much in new revenues. The more serious problem for liberals is what the outcome says about what comes next. Obama had repeatedly insisted he would not budge off his demand that taxes go up on all income over $250,000. That obviously didn’t happen. The risk is that this will set a bad precedent for the next round in this fight, in which Republicans will hold the debt ceiling hostage to extract the deep cuts to entitlements they want. It’s reasonable to worry that today’s outcome, by signaling Obama’s over-emphasis on getting a deal for its own sake, will set the stage for a cave later.

It’s on Obama to prove those worries unfounded.  Obama has pledged to win more in new revenues from the rich via tax reform, has vowed not to agree to any deficit reduction that relies only on spending cuts, and continues to insist on a “balanced” approach. Only Obama, however, can ultimately define what he means by “balanced.” Liberals must continue to insist that this mean that the sacrifice necessary to reducing the deficit will not borne by the poor or seniors who can’t afford it.

All of which is to say that the major fight at the heart of this whole mess — over the proper scope and role of the safety net of the 21st century, and who will pay for it — remains unresolved. Only the outcome of that battle can settle the question of whether today’s compromise was a good one for liberals. Obama’s legacy on the future of the welfare state — which will help define his presidency and settle fundamental questions about our approach to governing that will define American life for years to come — remains yet to be determined.