The battle over the US deficit is not over yet

Obama puts tax rises back on the table - but will his words be matched with action?

 

In the aftermath of a last-minute deal to raise the US debt ceiling, Barack Obama has hinted that tax rises may be back on the agenda.

The immediate crisis of the US potentially defaulting on its debt was averted with a last minute deal, but politicians on both sides of the debate are still unhappy. Much of the attention has been focused on the intransigent Tea Party faction of the Republican Party, but it would be wrong to under-estimate the anger among Democrats.

Many feel that Obama capitulated far too much ground, agreeing to huge scale cuts in public spending.

While Republicans have insisted that the deal does not include tax rises, Obama said in a short statement that the national debt could only be reduced through a combination of spending cuts and tax rises, particularly for big corporations and the very wealthy. In a return to the rhetoric he entered the debt battle using, he said:

Everyone is going to have to chip in. That is only fair. That's the principle I'll be fighting for during the next phase of this process.

And fight he will have to, if he wants to get tax rises through. His attempt to end the Bush-era tax cuts last year triggered outrage and - once again - he relented, agreeing to extend them until 2012. Ending these enormous tax cuts is the obvious way to reduce the deficit (you can see here how much they contributed to the country's huge debt), but Obama may yet decide it is too risky so close to an election.

Putting tax rises back on the table in as serious way will reignite the ideological battle that brought America to the brink of default this week.
Indeed, many Republicans remain dissatisfied with the current deal, arguing that its spending cuts do not go far enough. Many Tea Party activists still oppose it, even though that their representatives successfully pushed the entire debate far to the right despite controlling less than half of one House ("I hate the deal," said Andrew Hemingway, chairman of the Republican Liberty Caucus of New Hampshire)..

Obama has already eloquently argued that those most able to pay should do their bit for deficit reduction, at the start of this battle. There is a clear ideological case to be made at the next election: that tax cuts for corporations and the super-rich should not be maintained at the cost of healthcare for pensioners. However, if his words are not matched by confident, decisive action, there is no point in reopening the debate. He has a lot of work to do if he is to shore up support among his own support-base, let alone the country at large.

 

Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

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Theresa May’s stage-managed election campaign keeps the public at bay

Jeremy Corbyn’s approach may be chaotic, but at least it’s more authentic.

The worst part about running an election campaign for a politician? Having to meet the general public. Those ordinary folk can be a tricky lot, with their lack of regard for being on-message, and their pesky real-life concerns.

But it looks like Theresa May has decided to avoid this inconvenience altogether during this snap general election campaign, as it turns out her visit to Leeds last night was so stage-managed that she barely had to face the public.

Accusations have been whizzing around online that at a campaign event at the Shine building in Leeds, the Prime Minister spoke to a room full of guests invited by the party, rather than local people or people who work in the building’s office space.

The Telegraph’s Chris Hope tweeted a picture of the room in which May was addressing her audience yesterday evening a little before 7pm. He pointed out that, being in Leeds, she was in “Labour territory”:

But a few locals who spied this picture online claimed that the audience did not look like who you’d expect to see congregated at Shine – a grade II-listed Victorian school that has been renovated into a community project housing office space and meeting rooms.

“Ask why she didn’t meet any of the people at the business who work in that beautiful building. Everyone there was an invite-only Tory,” tweeted Rik Kendell, a Leeds-based developer and designer who says he works in the Shine building. “She didn’t arrive until we’d all left for the day. Everyone in the building past 6pm was invite-only . . . They seemed to seek out the most clinical corner for their PR photos. Such a beautiful building to work in.”

Other tweeters also found the snapshot jarring:

Shine’s founders have pointed out that they didn’t host or invite Theresa May – rather the party hired out the space for a private event: “All visitors pay for meeting space in Shine and we do not seek out, bid for, or otherwise host any political parties,” wrote managing director Dawn O'Keefe. The guestlist was not down to Shine, but to the Tory party.

The audience consisted of journalists and around 150 Tory activists, according to the Guardian. This was instead of employees from the 16 offices housed in the building. I have asked the Conservative Party for clarification of who was in the audience and whether it was invite-only and am awaiting its response.

Jeremy Corbyn accused May of “hiding from the public”, and local Labour MP Richard Burgon commented that, “like a medieval monarch, she simply briefly relocated her travelling court of admirers to town and then moved on without so much as a nod to the people she considers to be her lowly subjects”.

But it doesn’t look like the Tories’ painstaking stage-management is a fool-proof plan. Having uniform audiences of the party faithful on the campaign trail seems to be confusing the Prime Minister somewhat. During a visit to a (rather sparsely populated) factory in Clay Cross, Derbyshire, yesterday, she appeared to forget where exactly on the campaign trail she was:

The management of Corbyn’s campaign has also resulted in gaffes – but for opposite reasons. A slightly more chaotic approach has led to him facing the wrong way, with his back to the cameras.

Corbyn’s blunder is born out of his instinct to address the crowd rather than the cameras – May’s problem is the other way round. Both, however, seem far more comfortable talking to the party faithful, even if they are venturing out of safe seat territory.

Anoosh Chakelian is senior writer at the New Statesman.

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