You have to say this for Democrats: When Barack Obama was elected in 2008 with decisive majorities in both the House and Senate, they recognized the power of the moment and the unique opportunity they had.
Democrats had wanted to achieve government-run health care since the New Deal. Bill Clinton tried in 1993-94, but he made the mistake of putting a completely inept person in charge of it. He also didn’t have the numbers Obama had. Democrats weren’t going to fumble this opportunity away, not matter how unpopular their proposal was, and no matter how much political capital they would have to spend to do it.
They knew it was a now-or-never proposition. If they didn’t pass “health care reform” as they saw it with 60 votes in the Senate and a huge majority in the House, they would never pass it.
So they passed it. They paid a massive political price. They did tremendous damage to the nation. But it had been their dream for generations, and they weren’t going to blow it. They passed it.
Thank God, ObamaCare’s repeal appears to be mere months away. But Republicans can learn something from what the Democrats did in 2009-10. Given a rare opportunity, they took it.
Most Republicans have believed for many years that our tax code is a complicated Leviathan of nonsense that punishes productivity and thrift, and serves as one of the greatest obstacles to this nation’s prosperity. But there is always some reason it can’t be replaced.
When Republicans held the White House and both houses of Congress in the previous decade, there was little appetite for anything ambitious. Under George W. Bush, they passed some rate cuts – which did make a positive difference – but the basic structure of the tax code remained in place. Every other time since the 1950s, Democrats have always controlled at least one house of Congress – or the White House – and thus made it impossible to replace the tax code.
In January, the Republicans are going to have the same historic opportunity Democrats had in 2009. And they should be every bit as aggressive and unapologetic about taking full advantage of the opportunity. They should pull up the entire tax code by its roots, throw it out, and write a new one.
You all know I proposed the 9-9-9 plan when I ran for president. It would have replaced everything we have now with three simple taxes – a 9 percent income tax, a 9 percent sales tax and a 9 percent business tax. I continue to believe this is a good idea. But there are others. We could go to a flat income tax. We could go to a consumption-only tax.
The key is to make the tax simple and fair, and to eliminate those aspects of the tax code that distort people’s economic decisions. You shouldn’t have to hide your money overseas to avoid paying taxes on it. You shouldn’t be incentivized to lose money to avoid paying taxes. You shouldn’t be punished for being successful, or for making a good investment.
Most every Republican who runs for office will tell you they agree with this in principle. But it’s easy to say you agree with it when you can also claim it’s not politically possible to do it. Now it’s politically possible. It might require some bold moves – such as the nuking of the filibuster, or the novel use of reconciliation. (Does anyone remember that Harry Reid did that very thing to pass ObamaCare?)
The point is this: When Democrats had the opportunity to pass ObamaCare, there were obstacles to getting it done. They didn’t care. They overcame the obstacles. They wanted it that badly.
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Do Republicans want to replace the tax code just as badly? They should. And if they do, they’ll be just as determined to do whatever it takes to pass it.
Plus: Unlike ObamaCare, replacing the tax code would actually be good for the country, and politically popular. It won’t cost them seats in the mid-term elections. It won’t cost them the presidency down the road. It won’t result in costly legal battles. It won’t destroy the insurance market.
Everything that results from replacing the tax code will be good. If ever something was worth spending political capital on, this is it.
President-elect Trump, Speaker Ryan and Majority Leader McConnell have to recognize the power of this moment. It’s every bit what 2009 was for the Democrats. What the Democrats did with their moment was terrible for everyone, but you have to give them grudging credit for not backing down, and not missing the opportunity. They hit it hard.
Our side needs to hit this opportunity just as hard. I don’t know if an opportunity like this will ever come again.
Replace the tax code. Do it now. What possible reason could there be not to?
