U.S. Senate: Young, Bayh Speak Out in BizVoice

bayh young

BizVoice talked to both men separately this summer, asking them the same questions on policies critical to Indiana Chamber member companies and the business community at-large. (NOTE: The Indiana Chamber’s Congressional Affairs Committee has endorsed Rep. Todd Young in this race.) 

BV: What is your view on the federal tax code … are there areas you feel need attention? If so, what reforms do you see as the most important?

YOUNG: “We need to simplify the tax code. Washington needs to stop picking winners and losers through the tax code. We need to stop the double taxation of overseas income so that hundreds of billions of dollars of U.S. profit can be repatriated and invested in places like Indiana to create jobs and raise wages.

“We need to lower the corporate tax rate; we have the highest rate in the industrialized world – that clearly undermines our competitiveness and has even been causing our major corporations, with all their jobs, to relocate their operations overseas. And we need to lower the individual tax rate so that families and small businesses can participate actively in the economy.”

BAYH: “We need a tax code that is certainly simpler; it costs way too much to comply with it; it’s way too complicated. One of the areas I think we can get some bipartisan agreement on would be in the area of corporate tax reform – to get the tax rate down to make us globally competitive. Currently we have one of the highest corporate tax rates in the world, which leads to a couple of negative consequences. Number one: A lot of businesses that are globally competitive have stranded profits abroad. I think it’s in excess of a trillion dollars. So by making the corporate rate globally competitive, we would allow them to bring those profits home to invest in their U.S. operations.

“Number two: The fact that our tax code is not globally competitive creates an incentive for foreign companies to buy U.S. companies basically as a tax arbitrage (profiting from differences in how income or capital gains are taxed); it also leads to U.S. companies to re-domicile themselves overseas. By getting the tax rate down and making it globally competitive, you do away with that phenomenon.”

Read the full Q&A online.

Sen. Donnelly’s Visit Highlights an Active Month for Our Congressional Affairs Committee

donnellyWhile the presidential election may be the talk of D.C. and the media, this is also a busy time of the year for federal policy conversations for the Indiana Chamber.

In mid-August alone, Sen. Joe Donnelly, Senate candidate Evan Bayh and state Sen. Jim Banks, the Republican candidate for congressional District 3, met with our congressional affairs committee members to discuss issues important to Indiana. And Congresswoman Susan Brooks (District 5) was the keynote speaker for our Indiana Conference on Energy Management, advocating for the need for both sustainable and affordable energy.

While we may never agree on all matters with our congressional members, their overall willingness to engage, listen and act – by and large – in the best interest of the Hoosier business community and residents is a longstanding hallmark of Indiana’s delegation. And we are very appreciative for that.

Donnelly, who is not up for re-election, shared his thoughts on a variety of issues during his nearly hour-long visit. For one, he contends the gridlock in Congress is overblown: “What you see on TV bears no reflection to what is reality.” He stressed that 80% of the time the group works together, but the 20% – which often features high profile issues – is what drives the media reports. And “time after time, the Indiana delegation works together.”

Whether that’s Brooks with Donnelly on the law to combat opioid abuse, signed by the President last month, or Indiana’s senior senator, Dan Coats, and Donnelly – joined by District 9 Congressman and Senate candidate Todd Young – leading the charge to suspend the medical device tax for two years. And these are just two of the many examples.

Incidentally, these are among the efforts that led to Donnelly being presented with the U.S. Chamber’s “Spirit of Enterprise” award at our office last week; the honor is for his continued commitment to job creation and economic growth.

Cook: Governors’ Races Unique, More Difficult to Handicap than Federal Races

Cook_CharlieCharlie Cook is editor and publisher of the Cook Political Report and a political analyst for National Journal magazine. Cook is considered one of the nation’s leading authorities on American politics, and The New York Times has called him “one of the best political handicappers in the nation.”

Cook will be the keynote speaker at the Indiana Chamber’s 2016 Legislative Dinner on February 9. (Get your tickets now!) I recently spoke with Cook for an evaluation of this very turbulent time in American politics.

Below is my final question (see his other responses about political surprises, Donald Trump and Bernie Sanders, and America’s infatuation with presidential politics) :

Indiana is already gearing up for the 2016 gubernatorial race – a rematch from 2012. Gov. Pence has been under heat on some social issues, and lately for the state’s stance on accepting refugees. John Gregg’s supporters have seen these as benefits to their chances. What do you expect in this race, and do you think Pence could be vulnerable?

Cook: I tend to delegate governors’ races to our senior editor Jennifer Duffy, so I’m not doing deep dives into these races. But I’ll say that Indiana went through a period where Democrats were very competitive and did well – like Evan Bayh, and Obama carried it in 2008.

But in 2012, Indiana wasn’t even in the top 10 to 12 competitive races presidentially. While governors’ races tend to be more independent of national politics and less straight party than Senate and House races, I think Indiana has reverted more to type and back into the pretty Republican column. It doesn’t mean a Republican governor is unbeatable and a race can get relatively close, but for a Democrat to get over the finish line, that’s awfully hard in Indiana.

It’s one thing to cover Senate and House races from Washington, but governors’ races have their own unique sets of issues and rhythms, so it’s hard for anyone from out of state to understand it.

Bayh Gone?

Much to the surprise of many Hoosier politicos, Sen. Evan Bayh has decided NOT to run for Indiana governor in 2012 and recapture the office he held in 1989-1997. The Indy Star has the report:

Bayh’s decision ends, at least for now, an era in Indiana politics. The son of former U.S. Sen. Birch Bayh, he burst onto the political scene in 1986 when at age 30 he won election as secretary of state before sweeping to victory as governor two years later.

Democrats had hoped he’d resurrect them in 2012, as he did in the 1980s, by running for governor. And, while Bayh had turned his back on a third term in the Senate earlier this year, saying he did “not love Congress,” Democrats were optimistic that a chance to return to a job he had clearly relished would prove irresistible.

“If all I cared about is politics I’d run for governor because I loved being governor, and the prospects were probably favorable” that he’d be elected, Bayh said.

But, he added, “I want my kids to know that they were their parents’ top priority, and more important than ambition. I’ve been privileged to be elected five times. You only have your kids once.”

He said he doesn’t know yet what his next chapter will bring when he ceases to be an elected official Jan. 5, when the man who replaces him, Republican Dan Coats, is sworn in to office.

In the article, state Democrats express disappointment as it likely means they’ll have a very difficult time taking back the office. One also wonders how this will impact Rep. Mike Pence’s gubernatorial considerations.

Hoosiers Mentioned in Early GOP Talks for 2012

Should probably pace myself on the 2012 talk, but what the heck, we need something to get excited about: Chris Cillizza of "The Fix" offers a blog post on the top 10 contenders for the GOP presidential nomination in 2012. And wouldn’t you know it, two Hoosiers are right there in the mix:

9. Mike Pence: Pence’s decision to step aside as the fourth ranking Republican in the House makes clear that he has his eye on a bigger prize. His allies cast him as the only candidate in the field who can unite social and fiscal conservatives and, in the early cattle calls, Pence has performed well. Still, as a House member, he has to overcome a perceived stature gap as well as show he can raise the money to be competitive.

7. Mitch Daniels: The Indiana governor is term limited out of office in 2012 and, despite saying he would never run for another job, certainly seems to be weighing a presidential bid. Daniels ran and won as an outsider in Indiana and had built a record over the past six years in office that makes fiscal conservatives smile. Daniels’ problem? He doesn’t have much interest in the cultural wars that are so important to social conservatives. Can someone focused almost exclusively on fiscal issues win a Republican primary for president?

And this is a stretch, but … on the other side, this op-ed was published in The Washington Post Sunday, arguing that Obama would benefit his party, himself, and the country most by not seeking re-election. Doubtful, but it’s an interesting argument. Should he heed this advice, one wonders if it may open the door for a more centrist Democratic candidate in 2012 — perhaps a certain former governor/soon-to-be former senator. Time will tell.

Chamber Visits Delegation in D.C.

Approximately 50 members of the Indiana Chamber visited with Indiana’s congressional delegation during the Chamber’s annual D.C. Fly-in event September 14-15. The group, accompanied by Chamber President Kevin Brinegar and other staff, arrived in a city where partisan tensions were ever present and more than a few congressmen were absent, locked in tight re-election fights back in the Hoosier state.

The Chamber delegation visited with both U.S. Sens. Dick Lugar and Evan Bayh, engaging with the latter in an informal Q&A session in the U.S. Capitol’s Visitors Center. Senator Bayh pronounced that it was likely the last time he would be meeting with us as a U.S. senator and further stated that predictions of an active agenda for a post-election “lame duck” session of Congress were overblown. Senator Bayh told the group that there was very little momentum for a broad agenda beyond a fiscal continuing resolution to keep the federal government functioning and perhaps some action on extending the ’01 and ’03 or so-called Bush tax cuts.

Senator Lugar addressed the group during dinner on September 14, joined by Reps. Pete Visclosky, Dan Burton, Steve Buyer (who is retiring) and Mike Pence. The group echoed Sen. Bayh’s assessment about the congressional agenda through year’s end, and tax legislation, the federal budget and the upcoming election were foremost on their minds.

The Chamber participants pressed the delegation on a variety of issues, including pending appropriations bills, reauthorization of the federal surface transportation act and “card check” legislation. Special emphasis was given to extending the tax cuts, as expiration of this tax relief at year’s end would negatively affect the frail national economy and Hoosier small businesses.

On January 1, 2011, Americans will face the biggest tax hike in history. If Congress fails to act, marginal tax rates will increase for every taxpayer, the capital gains rate climbs 33%, and dividend rates jump by as much as 164%. American small businesses, our economic jobs engine, will face marginal tax rates as high as 39.6%. Compounded with the loss of certain itemized deductions and personal exemptions, these small businesses face rates as high as 41.6%. And this increase hits successful small businesses, our job creators, particularly hard: Approximately half of the business income reported on tax returns in 2011 will be subjected to the top two marginal rates.

The Indiana Chamber’s message to the delegation was that outcome is unacceptable and Congress must act before year’s end, but no one in D.C. seems to know when, or if, that debate might occur. In a time of economic uncertainty, raising taxes on businesses and investors would hinder Americans from building individual savings and further investing in the economy.

Extending existing tax rates would, in one bold stroke, boost investor, business and consumer confidence by taking the uncertainty of tax policy off the table. It would leave hard earned income in the hands of the individuals and businesses that earned it and allow them to spur investment, boost consumption, promote economic growth and create jobs.

Now is not the time to increase taxes on all taxpayers, but rather to work together to keep the economy on the road to recovery.

Indiana Senate Race Getting National Attention

Shailagh Murray of The Washington Post has an interesting article today about the Coats/Ellsworth Senate battle for Evan Bayh’s vacant seat. The piece focuses on Ellsworth, and raises some real questions regarding whether or not he can overcome Coats’ early lead in the polls, or gain some much-needed name recognition by November.

Ellsworth, 51, has taken few legislative risks during his two House terms, sticking mainly to local interests. He ensured Indiana hardwoods were included as eligible materials for green building incentives in the stimulus bill. He helped to remove federal barriers that restricted the yields of Indiana tomato growers. He secured funding to improve the lock system on the Ohio River.

At the state fair, Ellsworth met local pork industry officials over a lunch of "garbage burgers," pork patties topped with pulled pork barbecue, and got an earful about a stalled trade agreement with South Korea that is worth about $10 per hog for Hoosier farmers. The officials didn’t understand why the Obama administration couldn’t get the deal done.

"I hear you," the congressman reassured Michael Platt, executive director of Indiana Pork. "But you’re seeing more and more Democrats open to trade agreements, provided they’re fair to American workers."

Ellsworth supported three pillars of the Democratic agenda – health care, the stimulus and the financial regulatory overhaul – but voted against the climate-change bill that passed the House last summer. He opposes abortion and federal funding for embryonic stem cell research. He won the endorsement of the National Rifle Association over Coats, who supported several gun-control measures during his tenure in Congress.

He favors extending the full menu of 2001 tax cuts that are scheduled to expire at the end of the year, including preserving lower rates for the top income brackets – a position that could put him at odds with Democratic leaders and the White House.

"In this fragile economy, although they did add to the national debt, now is not the time," Ellsworth said of the taxes in an interview last week between campaign events.

Yet he does not shy from his party affiliation. "We Democrats have nothing to be ashamed of," Ellsworth told 35 Democratic activists who assembled in Indianapolis on a hot weekday afternoon in August for campaign training. The dingy room was cluttered with binders, water bottles and telephone lines, the signs of a busy election office. Canvassing guidelines taped to the wall instructed volunteers to "knock and take a step back" and "bring dog treats."

So what do you think? Will party trending hurt Ellsworth in November? Does he have a shot to win?

We’ll Take Our Indiana Governors

The current latest circus in Illinois (that’s the trial of former Gov. Rod Blagojevich) serves as another reminder of how lucky we are in the Hoosier state. No matter political affiliation, our governors are good guys (I’m sure we’ll make that gender neutral sometime in the not-too-distant future) and have some core basic values — something missing in far too many places.

I’ve had the good fortune to meet our last six governors (Bowen, Orr, Bayh, O’Bannon, Kernan and Daniels; for those keeping score, that’s three each among Republicans and Democrats) and interview the four most recent. The most unique of those engagements would be when sitting governor Otis Bowen’s son served as our high school basketball coach. That was a big deal for the state’s top official to come to a high school basketball game in St. Leon.

Due to several opportunities to interact outside of official interviews, I have to say that I have a strong favorable opinion of Joe Kernan. The fact that the former governor happily provided his cell phone number, hopped in the back seat of my Grand Prix for a ride and shared baseball stories in the stands at South Bend’s Covaleski Stadium are small symbols of a down-to-earth man who has also been an outstanding public servant.

Contrast that with a few of the latest details from Illinois, courtesy of CongressDaily:

The trial of Blagojevich, which is entering its third week, has already gotten off to a rocky start. U.S. District Judge James Zagel ordered the defense and prosecution to come to an agreement on keeping the loudmouthed Blagojevich from waging the trial in public or he would consider slapping gag orders on the defense team.

Prosecutors asked Zagel for the gag order on June 16 after Blagojevich said outside the courthouse the day before that Alonzo Monk, who had just wrapped up four days of testimony as the government’s star witnesses, was lying in his testimony. Monk, Blagojevich’s former chief of staff, is cooperating with the government after being indicted on corruption charges along with Blagojevich.

And if recent history is any guide, Democrats may learn the same lesson from voters that the Illinois GOP did in 2002 in the wake of the bribery scandal that forced Gov. George Ryan not to seek a second term and eventually led him to prison in 2007.

In the wake of the Ryan scandal, the charismatic Blagojevich ran on a platform of cleaning up Springfield and ended 26 years of GOP control of the governor’s mansion. Democrats also took control of the Senate for the first time in 10 years. Blagojevich cruised to re-election in 2006 by tying his opponent to Ryan, and Democrats expanded their majorities in both chambers to near super-majorities.

Ironically, Blagojevich could be the reason that the Democrats again fail to hold onto the governor’s mansion for more than eight years — which they have not done since before the Civil War — and the Illinois GOP is making sure voters are reminded of what Democratic Gov. Pat Quinn said about Blagojevich while sharing a ticket. According to media reports, Blagojevich’s trial is expected to wrap up in September, when the campaign season will be kicking into high gear.

Winston: 2010 Primary Season is One of New Courses

Robin Winston is a former Indiana Democratic Party Chairman, and his political commentary has been sought after by many in local media, including "Indiana Week in Review" on WFYI-TV.

This is a unique primary season because so much attention has been focused on the initiatives of President Obama. The President has charted a positive course for our nation to address a myriad of issues, including stimulating our economy, rebuilding our infrastructure, investing in education and finally addressing health care. 

A record number of Republican candidates are seeking open seats in Congressional Districts in Central Indiana. Some of those candidates represent truly divergent interests for the GOP.  May 4 will offer an opportunity to determine the strength of candidates espousing the views of “Tea Party” supporters. If successful, the Tea Party-backed candidates will change the dynamic of the GOP. If not, it will be interesting to see if they back Republican candidates in the fall.

Our party is fortunate to have Brad Ellsworth running for the U.S. Senate. A moderate and a pro-life and pro-gun Democrat, Ellsworth will bring common sense to the chaos in Washington. He has served as an Indiana sheriff longer than as a member of Congress and knows that Washington is not working for the American people. 

A few weeks ago, I joined Congressman Ellsworth for lunch and found him to be open, modest and self-deprecating. He is the epitome of a hard-working, middle-income Hoosier. He keenly understands the need for Washington to work for our interests. His past experience as a sheriff taught him that doing what is right is more important than scoring political points. That’s why he’ll work to build consensus and be an independent voice working for Hoosiers. 

Once Hoosiers get to know Brad and know more about his positions on the issues, I am confident that they will vote for him as an excellent successor to Senator Evan Bayh.

On a final note, please vote on May 4.

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EDITOR’S NOTE: Out of respect for our guest bloggers, we will not be allowing anonymous comments on their blogs this week. Additionally, the Indiana Chamber does not necessarily share the opinions of our guest bloggers.

Americans: Really Angry, But Could Technically Be Angrier

The Christian Science Monitor addressed why Americans are so angry in an article today. Perhaps I’m more aware of it now, or maybe it’s just the popularity of pundit-laden, agenda-driven cable news networks, but it certainly does seem like we Yankees are pretty fired up. At what? Well, take your pick: The government, other Americans who (gasp!) have opinions contrary to ours, or even our local nugget-less McDonald’s. Although, believe it or not, it does seem we were even angrier in the early 1990s, at least according to prior surveys:

So what does this all add up to? Are we "mad as hell," like TV anchor Howard Beale ranting to viewers in the 1976 Hollywood classic "Network"? Is today’s real-life incarnation, Glenn Beck of Fox News, whipping us into a frenzy of revolt against Washington?

Not necessarily. Pollster Scott Rasmussen reports that 75 percent of Americans are "angry," but his question is framed solely around anger: "How angry are you at the current policies of the federal government?" Forty-five percent replied "very angry" and 30 percent said "somewhat angry."

But when Americans are given a choice of "angry," "dissatisfied," "satisfied," or "enthusiastic" about the way the federal government works, "dissatisfied" is the most popular choice at 48 percent, according to an ABC News/Washington Post poll. An additional 19 percent chose "angry."

This net negative of 67 percent doesn’t come close to the same poll’s finding in October 1992, during the last time of political turmoil over fiscal policy. Then, 25 percent of Americans were angry, and 56 percent were dissatisfied, per ABC. A month later, third-party presidential candidate Ross Perot won 19 percent of the vote and cost President George H.W. Bush a second term.

In 1992, unemployment had peaked at 7.8 percent – well below today’s level – and yet voters then were angrier than they are today. So it’s not just about unemployment. "Consider also the duration of the downturn, the tenure of the administration, the level of effort, the sense of empathy, and other atmospherics," says Gary Langer, director of polling for ABC News.

Obama emerged from his post-inaugural honeymoon long ago, but he’s still only 13 months in office. If the public remains unhappy with the economy and with his administration’s recovery efforts, anger could rise. As things stand today, the Democrats already could lose well more than 24 House seats this November, the post-World War II average loss for the president’s party in midterm elections.

For now, the angriest bloc of voters is conservatives, at 32 percent, according to ABC. Ten percent of liberals and 12 percent of moderates are angry. Higher levels of anger and declines in job approval for Obama could point to greater-than-average losses in November, potentially even the loss of Democratic control on Capitol Hill. Nonpartisan political handicapper Charlie Cook already predicts the Democrats will lose the House.

I also thought this passage was quite noteworthy:

There’s also disaffection among moderates, frustrated by the high degree of political polarization that leaves little room for compromise on major policy matters. But efforts in the last decade to build a "radical middle" movement – a drive to marry the best ideas of the right and left – seem to have faded.

The stunning decision by Sen. Evan Bayh (D) of Indiana, one of the Senate’s few moderates, not to run for reelection cast the hollowing-out of the middle in sharp relief.