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Why U.S. lives under the shadow of 'W'

Julian Zelizer says former President George W. Bush's key tax and homeland security policies survive in the age of Obama

STORY HIGHLIGHTS

• Julian Zelizer: For all the criticism Bush got, two key policies have survived


• He says fiscal cliff pact perpetuates nearly all of Bush's tax cuts


• Obama administration has largely followed Bush's homeland security policy, he says


• Zelizer: By squeezing revenues, Bush tax cuts will put pressure on spending

Editor's note: Julian Zelizer is a professor of history and public affairs at Princeton University. He is the author of "Jimmy Carter" and of "Governing America."

Princeton, New Jersey (CNN) -- Somewhere in Texas, former President George W. Bush is smiling.

Although some Democrats are pleased that taxes will now go up on the wealthiest Americans, the recent deal to avert the fiscal cliff entrenches, rather than dismantles, one of Bush's signature legacies -- income tax cuts. Ninety-nine percent of American households were protected from tax increases, aside from the expiration of the reduced rate for the payroll tax.

Julian Zelizer

In the final deal, Congress and President Barack Obama agreed to preserve most of the Bush tax cuts, including exemptions on the estate tax.

When Bush started his term in 2001, many of his critics dismissed him as a lightweight, the son of a former president who won office as result of his family's political fortune and a controversial decision by the Supreme Court on the 2000 election.

But what has become clear in hindsight, regardless of what one thinks of Bush and his politics, is that his administration left behind a record that has had a huge impact on American politics, a record that will not easily be dismantled by future presidents.

The twin pillars of Bush's record were counterterrorism policies and tax cuts. During his first term, it became clear that Obama would not dismantle most of the homeland security apparatus put into place by his predecessor. Despite a campaign in 2008 that focused on flaws with the nation's response to 9/11, Obama has kept most of the counterterrorism program intact.

Opinion: The real issue is runaway spending

In some cases, the administration continues to aggressively use tactics his supporters once decried, such as relying on renditions to detain terrorist suspects who are overseas, as The Washington Post reported this week. In other areas, the administration has expanded the war on terrorism, including the broader use of drone strikes to kill terrorists.

Now come taxes and spending.

With regard to the Bush tax cuts, Obama had promised to overturn a policy that he saw as regressive. Although he always said that he would protect the middle class from tax increases, Obama criticized Bush for pushing through Congress policies that bled the federal government of needed revenue and benefited the wealthy.

In 2010, Obama agreed to temporarily extend all the tax cuts. Though many Democrats were furious, Obama concluded that he had little political chance to overturn them and he seemed to agree with Republicans that reversing them would hurt an economy limping along after a terrible recession.

Opinion: Time to toot horn for George H.W. Bush

With the fiscal cliff deal, Obama could certainly claim more victories than in 2010. Taxes for the wealthiest Americans will go up. Congress also agreed to extend unemployment compensation and continue higher payments to Medicare providers.

But beneath all the sound and fury is the fact that the 2001 and 2003 tax cuts, for most Americans, are now a permanent part of the legislative landscape. (In addition, middle class Americans will breathe a sigh of relief that Congress has permanently fixed the Alternative Minimum Tax, which would have hit many of them with a provision once designed to make sure that the wealthy paid their fair share.)

As Michigan Republican Rep. Dave Camp remarked, "After more than a decade of criticizing these tax cuts, Democrats are finally joining Republicans in making them permanent." Indeed, the Congressional Budget Office estimates that the new legislation will increase the deficit by $4 trillion over the next 10 years.

The tax cuts have significant consequences on all of American policy.

Opinion: Christie drops bomb on GOP leaders

Most important, the fact that a Democratic president has now legitimated the moves of a Republican administration gives a bipartisan imprimatur to the legitimacy of the current tax rates.

Although some Republicans signed on to raising taxes for the first time in two decades, the fact is that Democrats have agreed to tax rates which, compared to much of the 20th century, are extraordinarily low. Public perception of a new status quo makes it harder for presidents to ever raise taxes on most Americans to satisfy the revenue needs for the federal government.

At the same time, the continuation of reduced taxes keeps the federal government in a fiscal straitjacket. As a result, politicians are left to focus on finding the money to pay for existing programs or making cuts wherever possible.

New innovations in federal policy that require substantial revenue are just about impossible. To be sure, there have been significant exceptions, such as the Affordable Care Act. But overall, bold policy departures that require significant amounts of general revenue are harder to come by than in the 1930s or 1960s.

Republicans thus succeed with what some have called the "starve the beast" strategy of cutting government by taking away its resources. Since the long-term deficit only becomes worse, Republicans will continue to have ample opportunity to pressure Democrats into accepting spending cuts and keep them on the defense with regards to new government programs.

Politics: Are the days of Congress 'going big' over?

With his income tax cuts enshrined, Bush can rest comfortably that much of the policy world he designed will remain intact and continue to define American politics. Obama has struggled to work within the world that Bush created, and with this legislation, even with his victories, he has demonstrated that the possibilities for change have been much more limited than he imagined when he ran in 2008 or even in 2012.

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The opinions expressed in this commentary are solely those of Julian Zelizer.

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1,684 COEs available for first open bidding exercise in Jan

SINGAPORE: Details for January's first open bidding exercise for Certificates of Entitlement (COE) have been released.

The total quota available for this tender is 1,684.

There will be 410 COEs for Cat A (small cars), 363 for Cat B (big cars) and 462 for Cat D (motorcycles).

For Cat E (open), 256 COEs will be available, while Cat C (goods vehicles and buses) will have 193 COEs.

The tender opens on January 7 at noon and closes at 4pm on January 9.

-CNA/ac

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Veteran's improbable survival gives heart to shell-shocked surgeon

(CBS News) AUBURN, Ala. -- The carnage Lee Warren encountered in the combat hospital at Balad, Iraq, in 2005 was like nothing he had ever seen as a neurosurgeon. And no patient was worse-off than a soldier brought in by helicopter after being hit by a roadside bomb.

"I unwrapped his head in the emergency room and looked at him and thought he was dead," Warren says.

He was, Warren later wrote, "one of the most horrifically injured people I have ever operated on."

"His scalp and the front part of his face was all gone, and then I could see his frontal lobe on the left side sort of protruding out onto his face," he says. "His brain was exposed and hanging out."

After four hours in surgery, Warren and three other doctors managed to get him on a medevac flight out of Iraq still alive. Warren called the soldier's father but could offer little hope.

"I just didn't see how anybody with that injury could survive," he says.

Warren left the military and started a successful practice, but he had nightmares about all the wounded soldiers whose fates he never learned.

Finally, he faced his demons by opening a trunk he had brought back from Iraq. He found bullets and shrapnel he had pulled from brains and a thumb-drive with files of his cases, including the soldier with that horrible head wound. Warren looked him up online.

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"And he popped up on a CBS interview -- very much alive and well," Warren says.

Army Spc. Paul Statzer

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CBS News

He was Army Spc. Paul Statzer, and CBS had met him at Walter Reed Army Medical Center six months after he was hit.

He took off his helmet to show his injuries. Statzer had lost part of his frontal lobe but was still cogent.

"I'm a little slow on certain things but not that bad," he said at the time.

Asked what lesson a brain surgeon can draw from Statzer's case, Warren says, "The power of the human spirit and -- and indomitable faith can do a lot, sometimes more than I can with my two hands."

Over the years, Paul Statzer has suffered multiple infections and seizures. He's not able to work, and he's not up for another television interview. But when they met, he told the surgeon who thought he would never make it that he is up for living.

"That was one of the questions I asked him: 'Are you happy?' and he said, 'Yeah,' and he said, 'Thanks for saving me,'" Warren says.

And with that, the patient helped save the doctor from his own demons of Iraq.

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James Holmes Defense: Was He Insane?

Jan 3, 2013 5:30pm

James Holmes appears in court, Centennial, Colo., July 23, 2012. RJ Sangosti/AP Images.

ABC’s Clayton Sandell and Carol McKinley report:

A judge ruled Thursday that public defenders for accused Colorado theater shooting suspect James Holmes can call two unidentified witnesses at next week’s preliminary hearing to testify about the defendant’s “mental state.”

Arapahoe County, Colo. prosecutors had sought to keep the witnesses out of court, but Judge William Sylvester ruled that the now-25-year-old accused killer has a right to call the witnesses at a preliminary hearing.

The Jan. 7 preliminary hearing will essentially be a mini-trial in which prosecutors will present witness testimony and evidence to convince the judge that there is enough of a case against Holmes to proceed to a trial.

Witnesses to be called for the prosecution include the Aurora police lead detective, first responders, the Arapahoe County coroner and likely a computer forensic specialist, according to prosecution sources who declined to be identified, citing a gag order in the case.

A top priority, the prosecution sources say, will be showing that Holmes acted with premeditation when he allegedly murdered 12 people and wounded 58 on the night of July 20 during a midnight showing of “The Dark Knight Rises.”

Defense attorneys may pursue a legal strategy to show that Holmes was not in his right mind at the time of the shooting.

Holmes, who has not yet entered a plea, has been repeatedly described in court by his legal team as mentally ill. While a graduate student at the University of Colorado, he was in the care of a psychiatrist.

Prosecutors say they will also present photos, video and 911 calls during the hearing, which is expected to last all week.

It’s not clear what the two witnesses’ relationship is to the shooting, or to Holmes.

Prosecutors, Judge Sylvester’s order says, contend that “neither witness has personal knowledge of the events at the Century Aurora 16 Theater.”

Sylvester said the witnesses are non-expert “lay witnesses” who have so far chosen not to be interviewed by defense investigators but have been cooperating with law enforcement.

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Boehner's emotional remarks

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Look beyond the fiscal cliff

STORY HIGHLIGHTS

• Dean Baker: Budget deficit is not the only top issue in our national economic policy


• Baker: Fiscal cliff debate has been a distraction of the bigger problem of a downturn


• He says fears of big deficits are preventing us from boosting the economy more


• Baker: Given the economy's weakness, the government has to run big deficits

Editor's note: Dean Baker, an economist, is co-director of the Center for Economic and Policy Research, a progressive economic policy organization. He is author of "The End of Loser Liberalism: Making Markets Progressive."

(CNN) -- We have just passed into the new year, and the distractions created by the debate over the fiscal cliff appear to be behind us. Maybe.

That debate has been part of a larger distraction -- the concern over budget deficits at a time when by far the country's most important problem remains the economic downturn caused by the collapse of the housing bubble. The obsession with budget deficits is especially absurd because the enormous deficits of recent years are entirely the result of the economic downturn.

In spite of this, the leadership of both parties has elevated the budget deficit to be the top and virtually only issue in national economic policy. This means ignoring the downturn that continues to cause enormous amount of unnecessary suffering for tens of millions of people.

Dean Baker

But fears of big deficits are preventing us from giving the same sort of boost to the economy that got us out of the Great Depression. The explanation is simple: profits have returned to prerecession levels.

Opinion: Cliff deal hollow victory for American people

This means that from the standpoint of the people who own and run American businesses, everything is pretty much fine. Moreover, they see the deficits created by the downturn as providing an opportunity to go after Social Security and Medicare.

The Campaign to Fix the Debt, a nonpartisan organization involving many of the country's richest and most powerful CEOs, sets out to do just that. It has become standard practice in Washington for Wall Street types and other wealthy interests to finance groups to push their agenda.

The Campaign to Fix the Debt involves the CEOs themselves directly stepping up to the plate and pushing the case for cutting Social Security and Medicare as well as lowering the corporate income tax rate.

It's clear what's going on here. We don't need any conspiracy theories.

iReport: What's your message for Washington?

CEOs from both political parties have openly come together to demand cuts in Social Security and Medicare, two programs that enjoy massive political support across the political spectrum. The wealthy are joining hands without regard to political affiliation to cut benefits that enjoy broad bipartisan support among everyone who is not rich.

President Barack Obama has an opportunity to show real leadership. He should explain to the public the basic facts that all budget experts know: We do not have a chronic deficit problem. The big deficits are the result of collapsed economy. The priority of the president and Congress must be to put people back to work and bring the economy back up to speed.

Fiscal cliff deal: 5 things to know

When the housing bubble burst, annual spending on residential construction fell back by more than 4% of GDP, which is $600 billion in today's economy. Similarly, consumption plunged as people drastically curtailed their spending in response to the loss of $8 trillion in housing bubble generated equity.

There is no easy way for the private sector to replace this demand. Businesses don't invest unless they see demand for their products, regardless of how much love we might shower on the "job creators." In fact, if anything, investment is surprisingly strong give the large amount of excess capacity in the economy. Measured as a share of GDP, investment in equipment and software is almost back to its prerecession level. It is hard to envision investment getting much higher, absent a major boost in demand from some other sector.

This is why it is necessary for the government to run large deficits. Ideally, the money would be spent in areas that will make us richer in the future: Education, infrastructure, research and development in clean energy, etc. There is just no way around a large role for the government given the economy's current weakness.

Big issues still pending

Obama needs to explain this simple story to the country. The rich of both parties will hate him for going down this route. They will use their powers to denounce him. But the American people support Social Security and Medicare, and they support an economy that creates jobs for ordinary workers.

Obama needs the courage to tell the truth.

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The opinions expressed in this commentary are solely those of Dean Baker.

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Football: Redknapp eyes salvation after shock win at Chelsea

LONDON: Harry Redknapp believes Queens Park Rangers' shock 1-0 win at Chelsea could be the turning point in his side's season.

Redknapp, who also revealed he missed out on the chance to sign Liverpool's Joe Cole, saw his side defy the odds to produce one of the most unexpected results of the season thanks to Shaun Wright-Phillips's goal on Wednesday.

The win was only their second league victory of the season and moved Rangers level on points with second-bottom Reading, five points adrift of safety.

But the manager believes the impact of the result will be hugely significant in the context of the relegation battle and strengthen his chances of bringing in new recruits in the January transfer window.

"I had a good meeting with (the players) after the Liverpool game (QPR lost 3-0) and I think I convinced them I thought we could stay up," he said.

"You probably thought I was mad, but I didn't go home thinking we are doomed. I thought we could turn it around if we can get this lot working and get someone in the window. And tonight (Wednesday) has proved that.

"Most important, we worked hard. We grafted and if we do that until the end of the season, we will win some games. The other teams down there will be thinking: 'That's not very good.' I've been there.

"That will send shocks through everybody and we've got to make the most of that tonight."

Redknapp had attempted to sign Cole but missed out when the player opted to join his former club West Ham United instead.

"I lost a player today who I tried to sign and who would have been my first signing," said Redknapp.

"He probably looked and thought: 'Harry, I love you, but I don't think you are going to stay up.' And he's gone to the Hammers.

"I was going to take Joe. I thought he would have been good for me but it's not easy when you are down there.

"I understand why -- he's a West Ham lad and they love him. I signed him there when he was 11, so he's going back home and I wish him all the luck in the world."

Chelsea's interim manager, Rafael Benitez, blamed his side's defeat on fatigue and admitted they cannot afford further slips if they are to close the 14-point gap on leaders Manchester United.

Benitez admitted striker Fernando Torres is one of the players who needs a rest and says he hopes to have completed the signing of Newcastle United forward Demba Ba before the FA Cup tie at Southampton on Saturday.

The manager made changes to his line-up and said: "We can't carry on with the same players. We were playing the bottom of the league at home and you have to trust your players.

"The main thing is we were a bit tired and couldn't produce the pass, the intensity and the movement.

"We have to have everything almost perfect now. When you lose a game it is more difficult, but I can't be thinking about the number of points -- only the next game.

"We have the FA Cup now, then we have to think how we can get three points from every game."

And he added: "Fernando is one of the players (who is tired). You can see two or three, who have been playing too many games in the last month.

"Definitely the club is working on it (signing a new striker). If we can do the business, I hope so (before weekend)."

Benitez revealed goalkeeper Petr Cech will be out for up to three weeks with an adductor problem, but there is still no return date for skipper John Terry, who has a knee injury.

-AFP/ac

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Al Jazeera acquires Al Gore's Current TV

LOS ANGELES Al-Jazeera, the Pan-Arab news channel that struggled to win space on American cable television, has acquired Current TV, boosting its reach nearly ninefold to about 40 million homes. With a focus on U.S. news, it plans to rebrand the left-leaning news network that cofounder Al Gore couldn't make relevant.

The former vice president confirmed the sale Wednesday, saying in a statement that Al-Jazeera shares Current TV's mission "to give voice to those who are not typically heard; to speak truth to power; to provide independent and diverse points of view; and to tell the stories that no one else is telling."

The acquisition lifts Al-Jazeera's reach beyond a few large U.S. metropolitan areas including New York and Washington, where about 4.7 million homes can now watch Al-Jazeera English.

Al-Jazeera, owned by the government of Qatar, plans to gradually transform Current into a new channel called Al-Jazeera America by adding five to 10 new U.S. bureaus beyond the five it has now and hiring more journalists.

Al-Jazeera spokesman Stan Collender said there are no rules against foreign ownership of a cable channel — unlike the strict rules limiting foreign ownership of free-to-air TV stations. He said the move is based on demand, adding that 40 percent of viewing traffic on Al-Jazeera English's website is from the U.S.

"This is a pure business decision based on recognized demand," Collender said. "When people watch Al-Jazeera, they tend to like it a great deal."

Al-Jazeera has long struggled to get carriage in the U.S., and the deal suffered an immediate casualty as Time Warner Cable Inc., the nation's second-largest cable TV operator, announced it is dropping Current TV due to the deal.

"Our agreement with Current has been terminated and we will no longer be carrying the service. We are removing the service as quickly as possible," the company said in a statement.

Previous to Al-Jazeera's purchase, Current TV was in 60 million homes.

In 2010, the network's managing director, Tony Burman, blamed a "very aggressive hostility" from the Bush administration for reluctance among cable and satellite companies to show the network.

Even so, Al-Jazeera has garnered respect for its ability to build a serious news product in a short time. But there may be a culture clash at the network. Dave Marash, a former "Nightline" reporter who worked for Al-Jazeera in Washington, said he left the network in 2008 in part because he sensed an anti-American bias there.

Current, meanwhile, began as a groundbreaking effort to promote user-generated content. But it has settled into a more conventional format of political talk television with a liberal bent. Gore worked on-air as an analyst during its recent election night coverage.

Former New York Gov. Elliot Spitzer, former Michigan Gov. Jennifer Granholm and Cenk Uygur are currently its lead personalities. Current signed Keith Olbermann to be its top host in 2011 but his tenure lasted less than a year before it ended in bad blood on both sides.

Current has largely been outflanked by MSNBC in its effort be a liberal alternative to the leading cable news network, Fox News Channel.

Current hired former CNN Washington bureau chief David Bohrman in 2011 to be its president. Bohrman has pushed the network to innovate technologically, with an election night coverage that emphasized social media conversation.

Current TV, founded in 2005 by former vice president Gore and Joel Hyatt, is expected to post $114 million in revenue in 2013, according to research firm SNL Kagan. The firm pegged the network's cash flow at nearly $24 million a year.

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Tax Deal Done - but How Can Obama Sign It?

Jan 2, 2013 6:29pm

AP Photo/Charles Dharapak

Congress officially delivered the bill to avert the fiscal cliff to the White House this afternoon, House Speaker John Boehner’s office told ABC News.

Now the question is when will the President sign it?

The bill, passed late on New Year’s Day, expires tomorrow at 11:59 a.m. when the current session of Congress concludes. If President Obama doesn’t sign it by then, constitutionally the bill is dead.

But this evening, eighteen hours before the deadline, the President is on a golf course in Hawaii.  And the bill is in Washington at the White House.

Administration officials won’t say what they will do despite repeated inquiries from ABC News.

There seem to be two options:  1) An Air Force jet can deliver the bill to Hawaii (better leave quickly!) in time for the President to sign it before 11:59 Eastern Standard Time; or, 2) The White House can use a presidential “auto-pen.”

The simple mechanical device uses a template of the presidential signature to scrawl it on paper if activated by the White House at Obama’s direction.

But would an auto-pen – usually used to sign insignificant correspondence and photographs – pass constitutional muster?  We don’t know.  The question has never been tested by the courts.

A 2005 legal study commissioned by former President George W. Bush determined that use of the autopen is constitutional but acknowledged the possibility that its use could be challenged.  Bush never used the autopen, officials from his administration told ABC.

President Obama is only believed to have used the autopen once to sign a piece of major legislation — the 2011 extension of the Patriot Act — which reached his desk while he was on a diplomatic trip to Europe. Officials invoked national security concerns to justify the move.

Use of the autopen has been controversial.  Conservative groups alleged last summer that Obama used an autopen to sign condolence letters to the families of Navy SEALs killed in a Chinook crash in Afghanistan — a charge the White House disputed flatly as false.

In 2004, then-Secretary of Defense Donald Rumsfeld was criticized for using an autopen to sign condolence letters to the families of fallen troops.

And in 1992 then-Vice President Dan Quayle even got into some hot water over his use of the autopen on official correspondence during an appearance on “This Week with David Brinkley.” More HERE.

ABC News’ Ann Compton and Devin Dwyer contributed reporting.

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