Democrats, Get Down to Business
By Harold Ford, Jr. | The New York Times
Scott Brown’S victory last week in the Massachusetts Senate race, following the Republican gubernatorial triumphs in New Jersey and Virginia, marked the third time in three months that the Democratic Party has lost the support and trust of independent voters.
The message these voters sent was clear. With one out of five Americans unemployed or underemployed, President Obama and the Democratic Party need to shift attention away from health care and toward a bold effort to create jobs, improve the economy and rein in the size of government.
Here are four simple steps we must take immediately to put us, and the nation, on a better course:
First, cut taxes for businesses — big and small — and find innovative ways to get Americans back to work. We can start by giving any companies that are less than five years old an exemption from payroll taxes for six months; extending the current capital gains and dividend tax rates through 2012; giving permanent tax credits for businesses that invest in research and development; and reducing the top corporate tax rate to 25 percent from 35 percent.
America’s primary job-creating machine — the private sector — needs to be rejuvenated. Democrats must lead now on job creation or risk forfeiting Congressional majorities in November.
Second, we should pass a more focused health reform bill that restructures current health care costs before spending more, prohibits insurance companies from denying coverage for pre-existing conditions, enacts responsible reform on malpractice suits and extends health coverage to all children. And we must allow states to have input into the expansion of health coverage, as they will have to pay for much of the reform themselves.
This program isn’t all that Democrats wanted from health care reform right now, but it’s what the country wants. And it’s what the country can afford.
Third, we should reform our immigration policy to ensure that those who contribute to our economy, especially foreign math and science graduates of American universities, have a clear path to citizenship.
Finally, we need to address budget deficits now rather than waiting for some ideal future economic situation. It’s a good sign that the Obama administration is following the advice of Senators Kent Conrad of North Dakota, Evan Bayh of Indiana and other Democratic fiscal pragmatists who embrace the idea of a bipartisan commission to recommend spending cuts to rein in deficit growth. But we must be sure that the administration and Congress heed the commission’s advice.
By focusing on job creation and deficit reduction, we can expand our economy and balance the budget. We’ve done it before: When President Bill Clinton took office in 1993, he inherited a record fiscal deficit after years of Republicans in the White House. After eight years in office (and 22 million jobs created), President Clinton had balanced the budget and left his successor with a surplus. This can be done again.
To be sure, President Obama has achieved some important successes. His policies prevented the financial system from collapsing, saved America’s auto industry from extinction and avoided a depression. But that extreme crisis is over — what our country needs now is better, not more, government.
A Democratic Party refocused on revitalizing our economy, protecting the United States from terrorism and re-establishing itself as the party for the middle class is what Americans are demanding. If we do this, victory at the polling booths will take care of itself.