Daniels Tells Tea Party: Cool the Rhetoric
Indiana Governor Mitch Daniels believes a tax on oil is “justifiable”, that a value added tax could streamline the tax system, and that some of the heated rhetoric being thrown around these days is more appropriate for statists, not conservatives. These views were subtly expressed in a speech Daniels gave to members of the conservative political and policy elite at the Willard Intercontinental in Washington on Thursday evening.
Daniels was being awarded the Hudson Institute’s Herman Kahn award (named for the Institute’s founder) for his achievements as governor of Indiana, but the specter of possible presidential ambition hung over the event. Daniels has been rightly praised for his tenure as governor and his ability to understand complex policy problems. David Brooks has written that he believes Daniels is “most likely to win the G.O.P. presidential nomination in 2012”. Attendees waiting to get into the event spoke highly of Daniels, citing his brilliance and intellect.
The crowd was conservative, wealthy, and elite. It included a mix of journalists, former members of the Bush administration, and seasoned policy hands. Shinzo Abe, the former Japanese Prime Minister was an honored guest, and Dan Quayle gave the introductions. Paul Wolfowitz was spotted in the audience.
A sense of history pervaded all of the speeches during the evening: it was a night where the audience remembered how Hudson founder Herman Kahn defied the Club of Rome and the Malthusians, how he identified Japan as an economic superpower (a prediction which seems out of place as China’s economy grows). A world away from the troubles and concerns of modern politics, even though it was modern politics that brought everyone to come and listen to what Daniels had to say.
While Daniels did spend time discussing Kahn and his legacy, he managed to bring the evening’s events into the modern day, at least for a short while. He praised Kahn’s suggestion for a tax on oil, even though he knew it “transgresses some philosophical viewpoint[s]” in the audience. He also stated that the tax system needed to be reformed to encourage saving and investment instead of consumption, and cited the value added tax and flat income tax as possible means to achieve that goal.
Daniels also rebuked some of the more extreme language of the conservative movement and the Tea Party: “I hear too many people who are headed in the right direction, say things like ‘think how few people pay income taxes; think how many people are on the government dole.’” To Daniels, that tone is pessimistic “and belongs to the statists.”
It is true that Daniels is not a galvanizing speaker, you need to be quiet and focused as you listen to him. Yet among some members in the audience he hit exactly the right notes. One guest remarked how his optimistic vision was reminiscent of Ronald Reagan.
Daniels' combination of intellect, humility, and a sense of genuine concern for his fellow citizens have made him very popular among the conservative intelligentsia. It would be important to remember that while Daniels can appeal to what conservatism’s leaders and thinkers want, that his level of thoughtfulness and his measured tones are very different from the strident and bellicose language of the conservative base and Tea Party movement.
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