Good policy held hostage

There are a lot of silly laws out there. People on all sides of the aisle would agree on that. And many would agree that some form of the solution is relatively obvious. But even when a most reasonable people on all sides would agree that a policy is bad the work to change it is just beginning. 

That's because fixing broken policy still creates winners and losers. And sometimes those winners are more on one side of the spectrum than others. Unfortunately, giving away a free win to the other side in the name of good policy is bad politics. 

This is a broken part of our system that is under discussed today. The current debate around oil exports in congress is a prime example of how hard it is to fix. Policy implemented in the 1973 oil crisis banned exports in most circumstances. So this is a forty year old nationalistic policy implemented in the midst of a crisis around a good whose supply and demand dynamics have flipped on its head in recent years. It obviously should change, and the White House's primary argument against it is that they would like to keep control of their ability to allow or disallow oil exports.

So unfortunately, if this policy is going to pass it needs to be included as part of a broad deal on spending and taxation. And tax credits to solar and wind companies need to be extended (corporate welfare in action), so each side gets a win. Refineries who have benefited from captive domestic oil producers and earned out sized profits for years may or may not be handed a tax credit as a consolation prize for losing their captive oil suppliers.

It is true that there is some real opposition to changing the inane law preventing oil exports from people who seem to think that our carbon energy based society needs to be made as inefficient as possible if they are going to reduce emissions in the long run. Politicians that count on support from these confused constituents could use a small victory to show them. But holding back a fix on bad policy to implement something for their special interests should be mocked the same way as Republicans who threaten a debt crisis to get their way on minor spending matters.

And outside of the debt ceiling hostage shenanigans, many within the GOP have acknowledged that they will fix the carried interest tax loophole only as part of an overall bargain around reforming the tax code. They are holding back an obvious policy change favored by almost everyone not currently utilizing the loophole as a bargaining chip.

A very similar dynamic is occurring within immigration policy, this time with Democrats holding back some obvious fixes unless the GOP agrees to a comprehensive deal. People on both sides know many of the things that need to be done with high skilled immigration. They don't quite understand that high skilled immigrants should never be placed in the position of indentured servants, but they generally recognize that educating students at world class colleges and then making it difficult to stay and live in the United States is bad policy. 

However, there is no chance of this being fixed unless the more difficult problem of low skilled immigrants is addressed. Each year this policy isn't fixed, too many promising college graduates decide to head back home where they can get jobs or start companies without worrying about legal issues. Even if the preferred solution to the thorny political problem would be good policy, holding acknowledged good policy hostage as a bargaining chip is an action that needs to be understood as a destructive tactic.

Our government is dysfunctional enough. Whenever there is general consensus on what would constitute good policy the politicians holding policy fixes hostage should not be given a free pass.