Tom Davis Op Ed in the Washington Post

Voters can help cure poisonous partisanship

By Tom Davis, Published: April 19

Much has been written in recent months about the future of the Republican Party, as “conservative” Rick Santorum proved popular among many primary voters against “centrist” Mitt Romney. This centrist vs. conservative meme is an oversimplification of the primary fight between Romney and Santorum, but it is not new. For years, the media have been fascinated with perceived intraparty ideological battles.

In April 2009, Sen. Arlen Specter (Pa.) left the Republican Party for the Democratic Party, giving President Obama a filibuster-proof majority in that chamber. Specter said that the GOP had left him behind, that it was Republicans who had changed — not he.

But Specter’s decision was as much about political survival as about his beliefs. In his announcement, Specter conceded that he was unlikely to win a Republican primary and said that he was “unwilling” to have his “29-year record judged by the Pennsylvania Republican primary electorate.”

Yet more mainstream media reports focused on what Specter’s exit supposedly said about the GOP than on his electoral calculation. Journalists ate up Specter’s argument and likened centrist Republicans to dinosaurs — politically extinct relics.

More recently, the announcement by Sen. Olympia Snowe (R-Maine) that she would not seek a fourth term sparked claims of “proof” that centrist Republicans are gone.

To paraphrase Mark Twain, reports of the demise of centrist Republicans are greatly exaggerated. Olympia Snowe is no Arlen Specter, and centrist Republicans are alive and well. By “centrists,” I do not necessarily mean “moderates” but refer instead to members who are willing to work across the aisle to find common ground with partisan opponents to achieve tangible results. There are indeed still members of Congress who recognize that the perfect should not be the enemy of the good and that some incremental change can be preferable to no change.

The Republican Party has certainly become more conservative, in the same way that the Democratic Party has become more liberal. Centrists are pragmatists who are willing to compromise to get things done and work across party lines. Working across the aisle wasn’t as difficult in previous Congresses, because there were Republicans who held views to the left of some Democrats, and vice versa. Compromise wasn’t always needed because it’s not compromise if the position is already something you support. In today’s political environment, however, compromise is a prerequisite to accomplishing anything — one need look no further than the votes to avoid the U.S. credit default last summer, to avoid a government shutdown or to prevent taxes from being raised on working families.

Centrist Republicans make up a critical voting bloc in the House. In the wake of the 2010 midterms, the organization that I head — the Republican Main Street Partnership — now has a record 57 members in the House and Senate.

Without question, centrists in both parties face intense pressure not to act like centrists. It takes political courage and skill to navigate this minefield. The pressures faced by centrists in both parties are the result of several macro factors:

First, campaign finance laws, as well-intentioned as they may have been, have pushed money away from the political parties — centering forces — and out to ideological interest groups. Politicians face more pressure to please these extreme interests.

Second, balkanized media. It is not just that liberals have MSNBC and the Huffington Post and that conservatives have Fox News; the issue is greater than consuming news through an ideological lens. With few filters on talk radio, Internet sites or the 24/7 cable news shows, those debating the issues often can’t agree on the same set of facts.

Third, the ideological sorting of the parties. Gone are the days of conservative Democrats and liberal Republicans. Now the most liberal Republican in the Senate is more conservative than the most conservative Democrat. This ideological sorting has been reinforced by gerrymandered House districts that leave fewer truly competitive general-election districts.

These factors affect not just elections but also how the House and Senate do business. For most members in both chambers, the most important election is the primary race, and primary voters are reluctant to reward compromise and eager to reward ideological adherence. The pressures that force candidates out to the ideological extremes in elections also discourage bipartisanship. The same factors leading to an increasingly polarized electorate are creating an increasingly polarized Congress.

Note that Snowe did not say she was leaving the Republican Party because it has become too extreme. Nor did she say she was being forced out. She is not leaving the GOP; she’s leaving the Senate. And poisonous partisanship is a bipartisan problem.

The macro factors cannot be changed by one leader — no single person can create a bipartisan or post-partisan Washington. Real change will not occur until voters in both parties say they won’t stand for this anymore. Given the dismal approval rating of Congress and both political parties, there is reason to believe we are nearing that point. The solution begins with voters sending to Washington more pragmatic, results-oriented members who are willing to compromise to get things done.

© The Washington Post Company

Chairman Dave Camp (R-MI) H.R. 9, “The Small Business Tax Cut Act.”

Chairman Dave Camp (R-MI)
H.R. 9, “The Small Business Tax Cut Act.”
April 19, 2012

I rise today in support of H.R. 9, “The Small Business Tax Cut Act.” This legislation will allow small businesses with fewer than 500 employees to take a 20 percent tax deduction.

Small businesses are the engine of job creation. And, while we pursue comprehensive tax reform that will give all businesses certainty to invest and hire, this bill will help small businesses to re-invest, hire new workers, or provide a raise to an employee.

The policies put forth by President Obama and Congressional Democrats have yielded more government spending, but have failed to generate strong economic growth and the jobs Americans need. Instead of lower unemployment, we got a lower credit rating. Instead of massive job creation, we got massive and unprecedented levels of debt. And, instead of higher wages for working families, we got higher gas prices.

This bill provides real relief to American small businesses and the workers they employ. And, it treats every small business equally. Contrary to the political cronyism we’ve seen time and again, this bill doesn’t pick winners and losers. It provides relief to all small businesses, including those in my home state of Michigan.

Michigan has been hit especially hard over the last three years with some of the highest unemployment rates in the nation. And while small business owners in my district need and want comprehensive tax reform, they also agree that we must take steps to spur investment and hiring today, too. These business owners are the real experts who know what they need to add jobs back to our communities.

Take for example, Bob Yackel, President of Merrill Tools. As part of the 400-employee Merrill Technologies Group, Mr. Yackel says, “As a manufacturing business in Mid-Michigan, we know firsthand the ramifications of the recent economic turmoil. The best way Washington can help energize economic growth is by making sure business owners are spending less on tax payments and more on creating jobs.”

Bob Yackel is a larger small business owner, but there are smaller businesses that feel the same way. Jim Holton, owner of Mountain Town Station in Mount Pleasant, has served the central Michigan community as a restaurant owner for more than 15 years. He is especially pleased with the simplicity and ease of this legislative approach. He says, “The beauty of the Small Business Tax Cut Act is its simplicity. If you are earning profits and contributing to the economy, then you can take 20 percent off your tax bill. No hoops to jump through. This is a great way for business owners like myself in the Great Lakes Bay region and across America to help jumpstart our economy.”

Those are just two examples in Michigan’s Fourth District, but they echo small business owners across the country. Throughout our history we have depended upon these industrious and innovative risk-takers to help us move through tough economic times. While we work to provide them the long-term comprehensive tax reform they need, we can also take steps today to unlock new opportunities for them immediately. Passing this bill will provide these much-needed, immediate opportunities.

I urge my colleagues to join me in supporting small business – and to demonstrate that support by voting yes on HR 9.

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Ways and Means Press Office
www.WaysandMeans.House.Gov
202.226.4774

Upton Applauds House Approval of Legislation To Protect Jobs and Affordable Energy

Upton Applauds House Approval of Legislation To Protect Jobs and Affordable Energy

WASHINGTON, DC – House Energy and Commerce Committee Chairman Fred Upton (R-MI) today applauded the passage of H.R. 4348, the Surface Transportation Extension Act of 2012. The legislation passed with two key provisions from the Energy and Commerce Committee: requiring approval of the Keystone XL pipeline and providing for the safe management and reuse of coal ash. Upton issued the following statement on the bill’s passage:

“Today, the House took a stand for jobs and affordable energy. For too long, President Obama’s policies have put American jobs, our economy, and our energy security at risk. Today, we tell the president enough is enough. If he won’t lead, Congress will. The legislation we passed today will protect thousands of jobs from the administration’s dangerous overreach, prevent higher energy costs, and put our nation on a path toward greater energy security.

“Families and business across the country are desperate for relief from high gas prices, and still the president refuses to act on the Keystone XL pipeline. Americans know we need more energy supplies to help bring down prices at the pump. Canada stands ready to send us their vast energy resources, but President Obama continues to say ‘no.’ Mr. Terry’s bill, which the House approved for a second time today, will ensure the pipeline gets built by taking presidential politics out of the process. This pipeline is a win-win for American jobs and energy security, and Congress will do whatever it takes to see that it is built.

“Congressman McKinley has been a champion throughout the 112th Congress to ensure coal ash is safely and responsibly managed without sacrificing jobs. The amendment adopted today is necessary to escape the costly repercussions of EPA’s heavy-handed approach to regulation, which could put as many as 300,000 jobs at risk and drive up electricity rates. Mr. McKinley provided a commonsense alternative that will protect the environment, jobs, and energy affordability. Just like when the bill passed the House, today’s amendment received strong bipartisan support – this time advancing be voice vote – demonstrating a strong likelihood we could see this job-saving measure become law.

“I thank my colleagues on the Energy and Commerce Committee and the Transportation and Infrastructure Committee for their work on this important piece of legislation. I am proud to join my colleagues on both sides of the aisle as we keep fighting for jobs and American energy solutions.”

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ENERGY & COMMERCE ONLINE | PRESS RELEASE PERMALINK

Main Street Praises House Passage of Small Business Tax Cut Act

Statement of former US Rep Amory F. Houghton (R-NY) and former US Rep Tom Davis (R-VA)

(Washington, DC) – Today, the US House passed H.R. 9, the Small Business Tax Cut Act, which allows small businesses to take a 20% tax deduction. In response, former U.S. Rep. Armory F. Houghton (R-NY) and former U.S. Rep. Tom Davis (R-VA) issued the following joint statement:

“The American people rightfully expect their leaders in Washington to be focused on job creation – unemployment numbers in this country have been far too high, for far too long. No segment of the American economy is more important to job creation than small business.

“This legislation will cut taxes on small businesses, spur economic growth and create an environment that allows American companies to create jobs.

“While Republicans remain focused on much needed comprehensive tax reform, this legislation is an important first step to jump-starting our economy.”

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Weekly Republican Address 4/14/12: Rep. Fred Upton (R-MI)

Camp Announces Hearing on Tax Reform and Tax-Favored Retirement Accounts

Camp Announces Hearing on Tax Reform
and Tax-Favored Retirement Accounts

Congressman Dave Camp (R-MI), Chairman of the Committee on Ways and Means, today announced that the Committee will hold a hearing on possible reforms to certain tax-favored retirement savings plans that might be considered as part of comprehensive tax reform.   This tax reform hearing – scheduled to occur on tax filing day – will examine one source of complexity for individuals and employers by reviewing employer-sponsored defined contribution plans as well as Individual Retirement Accounts (“IRAs”). The hearing will take place on Tuesday, April 17, 2012, in Room 1100 of the Longworth House Office Building, beginning at 10:00 A.M.

In announcing this hearing, Chairman Camp said, “Retirement security is one of the most important long-term policy priorities we face as a Nation.  While many argue that the existing menu of tax-favored retirement plans provides choice and flexibility for families and employers alike, others have questioned whether the ad hoc development of retirement savings incentives has led to undue complexity and inefficiency that reduce the effectiveness of these incentives.  The general principles of tax reform apply to retirement security as well: American families trying to save should have options that are simple, fair, and economically efficient.”

BACKGROUND:

Financial planners and advisors have long identified the major components of retirement security as Social Security, employer-sponsored plans, and personal savings. Financed by payroll taxes paid by covered workers and their employers, Social Security provides monthly cash benefits to retired or disabled workers and their family members and to the family members of deceased workers.  Social Security is outside the scope of this hearing.

Outside of Social Security, many employers offer employees the option of participating in employer-sponsored retirement and pension plans, which generally receive favorable federal income tax treatment.  Employer-sponsored plans provide for either a defined benefit (which generally provides retired employees with an annuity) or a defined contribution (“DC”).  Defined benefit pension plans represent an important source of retirement security, but raise policy questions that are outside the scope of this hearing.  DC plans receive contributions from either employees or employers or both.  Employees usually own their own accounts, and control the investment of account assets, thus bearing the risks and rewards of asset performance.  In general, contributions to DC plans are deductible to the employer, excluded from the employee’s income, grow tax-free, and are taxed upon distribution.  DC plans also generally may offer Roth-style accounts; contributions to such accounts are made on an after-tax basis but earnings and distributions are tax-free.

Individuals also may be eligible to save through IRAs, which are similarly tax-advantaged, although with much lower contribution limits.  Traditional IRAs are taxed similarly to 401(k) accounts.  Contributions are deductible from income, earnings are not taxed currently, and distributions are taxed.  Individuals participating in employer-sponsored plans cannot contribute to a traditional IRA if they exceed certain income levels.  Contributions to Roth IRAs, on the other hand, are made on an after-tax basis, but earnings and distributions are excluded from income.  Contributions to non-deductible IRAs are included in income, grow tax-free and are taxed at distribution less the amount of previously taxed contributions.

There are several types of DC plans, the most common of which are: 401(k) plans for private employers, 403(b) plans for non-profits and public schools, and 457(b) plans for State and local governments.  In addition to the types of IRAs discussed above, some employers may offer IRAs through the workplace, including payroll deduction IRAs, SIMPLE IRAs and SEP IRAs.  The proliferation of tax-favored retirement accounts has occurred as specific needs have led Congress to create new types of plans with specific rules.  Some commentators, however, have questioned whether the large number of plans with different rules and eligibility criteria leads to confusion, reducing the effectiveness of the incentives in increasing retirement savings.  In addition, many commentators have offered ideas for increasing participation in retirement plans and better targeting the incentives.  These ideas range from simplification and consolidation of existing plans and accounts to changing the default rules governing whether an employee participates to additional incentives such as the Savers Credit.

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www.WaysandMeans.House.Gov

Rep. Fred Upton: Rethinking America’s Energy Policy

Rethinking America’s Energy Policy

By Rep. Fred Upton Tuesday, April 10, 2012

It is an exciting time for American energy, but only if American energy policy spurs innovations rather than stifling them.

U.S. energy policy needs a reboot—a broad reassessment of our strategies—because much of what we thought we knew has either dramatically changed or turned out to be plain wrong.

When I first became involved in these issues, President Jimmy Carter told us our domestic energy supplies were running out and a foreign cartel would determine everything from the cars we drove to the temperatures in our homes. The future he painted looked bleak.

Consider oil and natural gas. Not long ago, many believed supplies had peaked and it was only a matter of time until we were left with nothing but dry holes in the ground and increased dependence on foreign imports. Based on this belief, Washington decided that American taxpayers needed to spend dramatically on developing alternative supplies to replace hydrocarbons.

President Obama continues this policy today. During his recent energy public relations tour, he repeatedly referred to Republicans as subscribers to the “flat earth” worldview because we do not share his affinity for massive taxpayer spending on more expensive energy sources. But if anyone is stuck in the past, it’s President Obama, as he has refused to acknowledge the great potential of America’s energy resources thanks to new technologies that help us unlock them.

New discoveries and production of resources like shale oil and gas are dramatically altering our energy supply outlook and the entire global geopolitical landscape. And the pace of change—particularly in the past few years—continues to accelerate.

When it comes to energy supply, efficiency, and environmental safety, our prospects are better than they have been in a long time. And the outlook will only improve if the government unleashes the private sector and stops getting in the way.

North Dakota’s story is illustrative. As recently as 2006, the state ranked ninth in the country in oil production. By 2013, the state could move to the number three spot, behind only Texas and Alaska, according to The Institute for Energy Research. In fact, North Dakota’s January oil output eclipsed the current third place holder, California. Production may more than double again within five years.

Private sector breakthroughs created this new energy boom; the federal government is not involved.

It’s a mistake to declare war on any source of supply because, if we have learned anything about energy, it is that future technology will not be what is now predicted.

By fully harnessing the power of our own previously inaccessible energy resources—and by forging strong partnerships with neighboring nations—America is on the cusp of being able to chart a course toward North American energy independence. It is an exciting time for American energy, but only if American energy policy spurs these innovations rather than stifling them.

Despite imperfect knowledge about what lies ahead, we have learned important lessons from the past that are guiding our reforms. The House Energy and Commerce Committee, of which I’m chairman, has already begun this fundamental reform effort and we will continue our activities in the months ahead.

First, government choosing technology winners does not work. Instead, we too often pick losers. In the late 1970s, billions were wasted on synthetic fuels. Today it’s Solyndra. It turns out that our energy outlook has changed not due to government subsidies, but to private sector technology innovation. For example, America is now the largest natural gas producer in the world and could become the largest oil producer by 2017. Why? Because private sector know-how and market forces helped unlock previously inaccessible supplies. The House Energy and Commerce Committee is conducting an exhaustive review of the limits of government-sponsored energy production, and hopes to release our findings in the next several months.

Second, we need not stifle resources to protect the environment. We can develop energy resources as we improve environmental safeguards. For example, horizontal drilling technology means that a single surface operating structure can replace several surface structures. Likewise, the pipelines we build to carry oil and natural gas will employ, wherever needed, state-of-the-art inventions such as automatic or remote control shut-off valves and leak detection systems that didn’t exist just a few years ago. I made sure that provisions for those technologies were included in the pipeline safety reauthorization bill that President Obama signed into law on January 3. This year, my committee will provide the American people even more information about how technology has improved the energy and environmental outlook.

President Obama has refused to acknowledge the great potential of America’s energy resources thanks to new technologies that help us unlock them.

Third, we need an “all may compete” energy policy. In this hyper-partisan age, vilifying certain types of energy has become a common way of promoting others. This will not improve energy affordability. It’s a mistake to declare war on any source of supply because, if we have learned anything about energy, it is that future technology will not be what is now predicted. My committee will continue to assess whether current policies advantage some energy sources over others.

Finally, given our new knowledge about resource abundance, including the power of technology to unlock supplies and use them in cleaner, more efficient ways, we should do all that we can to reduce barriers to responsible development of domestic resources. Approving projects like the Keystone XL pipeline or streamlining the extensive permitting process for energy projects are two examples of how we can get government out of the way. Before the end of the year, the House will pass measures to spur energy development by cutting through the red tape.

We stand at a unique and bright moment in our energy history. To take full advantage of the opportunities that lie ahead, it is imperative that we reconsider our basic assumptions about energy policy, including rethinking the correct role of the federal government. Ingenuity and freedom have produced a more abundant energy future than we ever imagined. Misguided Washington interference is the biggest threat to these gains.

Rep. Fred Upton (R-Michigan) is chairman of the U.S. House Committee on Energy and Commerce.

Main Street Praises House Passage of Budget Resolution

Statement of former U.S. Rep. Tom Davis (R-VA)

(Washington, D.C.) – Today, the U.S. House of Representatives passed a budget resolution. In response, former U.S. Rep. Tom Davis, President of RMSP, issued the following statement:

“The Republican-controlled House has – once again – fulfilled its statutory duty to pass a budget resolution – a requirement that the Democratic-controlled Senate has been derelict in for over 1000 days now. House Republican leaders should be praised for having the courage to put forward a serious budget proposal, one that tackles the long-term debt problems that face this nation, and one that does so without raising taxes on the American people.”

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The Republican Main Street Partnership (RMSP) is dedicated to promoting and building a pragmatic, thoughtful, fiscally conservative, and inclusive “Governing Majority,” where political debate is encouraged to promote solutions to improve the lives of all Americans. Embracing the full spectrum of center-right ideologies and values in order to build coalitions, RMSP is the largest organization of elected leaders who are in the mold of Abraham Lincoln, Teddy Roosevelt, and Ronald Reagan. For more information on RMSP, visit our website at www.republicanmainstreet.org.

Ways and Means: House Passes GOP Budget

House Passes GOP Budget

Washington, DC – Today, Ways and Means Committee Chairman Dave Camp (R-MI) issued the following statement after the House passed the House Republican Budget Resolution.

“The House Republican Budget Resolution is a clear demonstration that Republicans will reform Washington to strengthen our economy, create jobs and get our fiscal house in order. Congress owes it to the American people to cut out of control Washington spending, balance the budget, and, most importantly, help employers create jobs.  This budget makes the bold choices necessary to get this country back on course and preserve the critical safety net programs on which seniors and the disabled rely.

“This budget could not be more different than the President’s, which taxes more and borrows more so that Washington can spend more – all of which will hurt job creation.  The tax plan included in the budget, as provided by the Ways and Means Committee, creates an environment for greater innovation, investment and job creation.  The Ways and Means Committee will continue to work towards comprehensive reform that not only makes our code flatter, fairer and simpler, but also provides employers and families with the certainty they need to plan for the future.”

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Ways and Means Press Office
www.WaysandMeans.House.gov

Main Street Praises Bipartisan Passage of JOBS Act

Statement of former U.S. Rep. Amory F. Houghton (R-NY) and former U.S. Rep. Tom Davis (R-VA)

(Washington, D.C.) – Today, the U.S. House passed the JOBS Act by a vote of 380 to 41. The JOBS Act will allow small businesses to go public by lifting SEC restrictions on running advertisements soliciting new investors and permit “crowdfunding” so that entrepreneurs can raise equity capital from larger pools of small investors. Small private companies also would be able to sell up to $50 million in shares as part of a public offering before having to register with the SEC, and could have as many as 1,000 shareholders, up from the current cap of 500. In response, former U.S. Rep. Amory F. Houghton, Chairman of the RMSP Board, and former U.S. Rep. Tom Davis, President of RMSP, issued the following statement:

“The bipartisan passage of the JOBS Act in the House, after bipartisan passage in the Senate, is good news for the American economy and for American workers. By removing unnecessary regulatory red tape, this bill will help to create jobs and spur economic growth – particularly when it comes to small businesses, the life blood of the American economy.”

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The Republican Main Street Partnership (RMSP) is dedicated to promoting and building a pragmatic, thoughtful, fiscally conservative, and inclusive “Governing Majority,” where political debate is encouraged to promote solutions to improve the lives of all Americans. Embracing the full spectrum of center-right ideologies and values in order to build coalitions, RMSP is the largest organization of elected leaders who are in the mold of Abraham Lincoln, Teddy Roosevelt, and Ronald Reagan. For more information on RMSP, visit our website at www.republicanmainstreet.org.