Election Atmosphere Alters for Democrats

In this episode of Politics & Risk from The Council’s government affairs team, SVP Joel Kopperud interviews Democratic Rep. Joe Courtney, who represents Connecticut's 2nd Congressional District.

The congressman discusses his party’s new excitement surrounding the presidential ticket after President Joe Biden’s withdrew from the 2024 election, possible running mate picks for Vice President Kamala Harris after she became the Democratic Party candidate, and what’s at stake in November.

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“The energy that’s out there right now for the presidential race, just like completely has changed. I mean, this past weekend, I was at two events that were relatively small in the district there, and it was standing alone like, I mean, you couldn’t find a parking space on the street.”

Joel: Hi everybody, thanks for tuning in to the latest episode of the Leader’s Edge Politics and Risk Podcast. We’ve got a special episode for you today. We are joined by Congressman Joe Courtney of Connecticut. Congressman Courtney has been a good friend of ours for many years. He was first elected to Congress in 2007 and he serves on the powerful Education Workforce Committee which oversees all ERISA plans. So he’s got a influential voice when it comes to all the healthcare issues that we work on, on the group, health issue, healthcare issues, but he’s been a particular champion on preserving the tax exclusion for employer sponsored insurance. So I think you’ll really enjoy this conversation that we’re having with Congressman Joe Courtney.

Joel:  Congressman, thank you for joining our podcast.

Joe Courtney: It’s a pleasure. Thank you.

Joel: There’s a lot going on right now. There’s no shortage of topics to talk about. One of the first things that I always want to ask our guests on the podcast is the broad overview of the from where you sit, of the legislative and political environment. And that is such a big question, such a broad net to throw out there right now, but I know that you recently endorsed Kamala Harris to be President of the United States. Would love to hear your take on how you think this is going to play out. So far, there’s probably going to be a big president, vice presidential announcement around the corner. What are your thoughts on that? What are your What are you hearing from your constituents on this? I mean, it’s just you can’t make this stuff up. We’re in such a crazy environment. I would just love to get your thoughts on everything.

Joe Courtney: Sure. So I mean, probably one of the most interesting ways that I’ve noticed the change that’s taken place is I drive around the district like all of us, when we’re home, and the energy that’s out there right now for the presidential race, just like completely, has changed. I mean, if you were the Saturday before President Biden made his announcement you’d go out to an event and all, and particularly if it was supporters of the Democratic Party. You know, you were just sort of met with high anxiety. And people who were just: what’s going to happen? What are we going to do? Hand wringing. And then, literally, I found out at the event, at an event where the announcement came through on everybody’s phones. And the atmosphere in the gathering, which was about, I’d say, 2530 people, just like instantly changed to excitement. This past weekend, I was at two events that were relatively small, sort of house party type events in the district there, and it was standing room only. I mean, you couldn’t find a parking space on the street, just you could see at the minute, you sort of turned into the neighborhood that was there. And so, I mean to me, that really is just sort of a microscopic view of what’s happening nationally, which is that this race is just like, completely changed with fundraising with the voter registrations that’s happening and clearly the polls that we saw before the President’s announcement, the drop off of interest, particularly with subgroups within The democratic sort of party coalition, was, was pretty concerning, if not an emergency that’s there. And again, all of those groups now are sort of back into the their heads are back into the race. And I think at the end of the day this, this presidential contest is still going to be close, but there’s no question that on the Democratic side, this race has just completely been transformed in a positive way.

Joel: Yeah, it’s fascinating. And you come in from an interesting district, can you talk a little bit about the D to R ratio, makeup of your district, what the demographics look like? And I’m assuming this helps your campaign, although there will be down ballot impacts on this. But what are your thoughts on that? Yeah. So

Joe Courtney: Connecticut, obviously, from a distance, looks like a dark blue state, but it definitely has a little more complexity the closer you get. And so if you had a map of the state and drew a line down the middle of it, everything to the right is the second congressional district on the Rhode Island side. So it’s a lot of small towns, suburban Connecticut, definitely much more purple than the major urban areas like Hartford, New Haven, Bridgeport, Stamford, Norwalk along the shoreline. We have to compete every two years. I mean, this is not a slam dunk district, and certainly, with the Harris candidacy if you look at the pockets of strength of the Democratic Party has in Eastern Connecticut, whether it’s the Storrs campus at the University of Connecticut, Eastern Connecticut State University, some of the smaller, sort of more urbanized areas, like New London, again, I just think this is going to have a huge impact in terms of turnout, voter registration. I mean, that is particularly true at the University of Connecticut campus, which, you know, really goes up and down depending on whether it’s a presidential contest versus a non presidential midterm. All you have to do is look at the Obama years in deb in 2012 to see just the huge uptick and turnout that happened on the campus. I think that’s going to be similar this fall. Obviously, that helps people like me that are on the Democratic line. Chris Murphy is going to run strong in my district, but again, he’s got the other parts of the state that are just sort of a backdrop and support for his campaign, so but I do think it’s really going to have a real beneficial effect in a place like Connecticut, and particularly in a purple area like mine. Fascinating.

Joel: I heard from a colleague earlier this morning that there was a moderate Republican, I think they call them patriots, we would call them frontline members, but who was previously up seven, and after last week, he’s now down 12. Yeah, wow. The crew, the shifts has been palpable, but it’s just nuts to me that, as we’re having this conversation, it’s only been a week, yeah, but the next big news wave is going to be, who the vice presidential pick? Do you have any favorites on that list?

Joe Courtney: I sure do you know Congressman Tim Walz now governor. Tim Walz came in with me in my class in 2006 we have stayed in touch since he became governor again, if I think he’s done just an incredible job in that state in terms of dealing with really thorny issues. He’s the guy who called out the National Guard when there was rioting in Minneapolis. Trump is claiming credit for that. That’s not true. Tim, who himself was a 20 plus year veteran of the Minnesota Army National Guard, he retired as a sergeant major as a really strong leader, he got a lot of support in the state for for doing what was a difficult thing at the time. But he’s also advanced an agenda in terms of education, health care. His state has gone completely sort of free school lunch programs, and which the farmers out there actually are very strong and supportive. It’s got probably one of the best business climates in America, if you look at the rankings that are out there. But his real strength is that he’s just this incredibly down to earth, plain speaking, funny, authentic person who I think can really lock in that Midwest block of states, Wisconsin, Michigan, Minnesota, to a lesser degree, because it is more Democratic leaning. But I mean, he can run even strong and places like Iowa and Indiana, I think he’ll help in rural Pennsylvania. If anyone’s been watching the last week, the guy’s gone viral over and over again with some of his kind of impromptu speeches that are out there. He’s definitely being vetted. He and I have been talking and texting each other, and I just think he really is a good sort of counterbalance in terms of the strengths that the Vice President has and he will work tirelessly. People just love him when he’s out there. All the rest of the candidates are great, don’t get me wrong, but I, but I really honestly think Tim would be just the perfect gap filler for that ticket.

Joel: Yeah, it really is a great short list that they’re looking at. Yes, I think next year, just to let our list, I know you’re aware of this, but just to let our listeners know, next year, you all are going to face a real funding issue, a real revenue problem. The first issue you’re going to have to deal with in Congress is whether or not and how to raise the debt ceiling. We hit the debt ceiling again on January 31 so we’re going to go through all that debacle again with a very strong vocal voice on the left and the right saying, whatever we do has to be paid for, cut spending, raise revenue, whatever, coupled with the expiration of all the tcja provisions, which are going to expire in a. 11 months later, and to reauthorize those that’s going to cost four and a half trillion dollars, according to the CBO. And they put that in the context of what a lot of economists are saying we have 10 years to get our fiscal house in order, and if we don’t, at that point, the debt to GDP is ratios, and we still upside down. It’s no longer a safe bet to buy our to invest in the US government. And so you think inflation is bad Now you wait to bad Now you wait till that happens. Point is the government’s broke. And as you all look at raising revenues, the number one revenue raiser on the books continues to be taxing and employer sponsored insurance. And as we continue to advocate for a lower in cost to keep employers to stay in the game, because there are 100 and 80 million Americans that get their insurance from their employers, we talk about disruption taxing plans could be the straw that breaks the camel’s back for a lot of these employers, and you’ve just been such a great champion on making sure that we continue to preserve the tax exclusion for employer sponsored insurance. So we’re so grateful for your leadership on that. But I would love to hear a little update on you on where that stands, because I know there’s been some movement

Joe Courtney: Sure, first of all, thank you for framing the issues that have to be dealt with, regardless of who’s in the White House and who has the gavel in Congress. These are must-do items of a magnitude that can’t be denied by those who may want to kick the can down the road. The expiration of the tax plan at the end of 2025 is, in my opinion, both a challenge and an opportunity for Congress to go back into the Trump tax plan and fix what I still think is broken, in terms of some of the egregious choices made when that was whipped together in less than 60 days. If you go back and look at the chronology of the Trump tax plan, people on the right may simply want to extend those tax cuts, which I think disproportionately benefit the top 1% and largest Fortune 500 corporations at the expense of the rest of the country. Or if one wants to get rid of some of those tax cuts, offsets must be found to pay for the changes. The capping of the deductibility of state and local taxes, which in a state like Connecticut and the Northeast and West Coast, but now even across the country, is really starting to dig into middle-class homeowners’ property tax bills. There are places in that law that many of us want to change, but it costs money when you make those kinds of modifications. The Congressional Budget Office lists the tax exclusion for employer-sponsored insurance as one of the biggest tax breaks that can pay for offsets in possible changes to the Trump tax bill. When employer-based insurance became part of the fabric of our country during the World War Two, it was a way for employers to compensate workers. Now, 80 years later, it is a significant part of our healthcare system and work compensation. To change it would impact people of every income level, including teachers, construction workers, and those working in restaurants – middle-class and working families who would take the hit if the tax exclusion is capped. That’s why we were successful in rolling back the infamous Cadillac tax, which was part of the Affordable Care Act.

Joel: That’s funny. You know, elections matter, and they make a difference. And probably those three weeks before Biden dropped out, everyone in Washington was talking about it was going to be Republican sweep, potential single party control. And I started talking with some of my peers about, okay, what is the reconciliation bill look like? Because that’s probably what would happen. Project 2025, Republican Study Group. There’s a lot of champions that would probably, probably make sure that taxing plans was was in a reconciliation bill. So it could have been disastrous. Now, maybe not so much.

Joe Courtney: If you look at the roots of this proposal, Milton Friedman was kind of a godfather, a conservative Republican economist at the University of Chicago. He wrote a book in 2001 on how to cure health care. Within that book, the approach was laid out that we should decouple health insurance from employment. The best way to do it is get rid of the tax exclusion, give people some basic tax credit for buying health insurance, which was really a fraction of the true cost, particularly in high cost parts of the country. According to his view of the world, then the individual and patient would drive the healthcare system. It’s really almost like a libertarian fantasy, because expecting people to self-diagnose and make their own decisions about health insurance or healthcare is completely unrealistic. The employer-sponsored plan spreads the risk, which is a fair way to allocate cost, and it also creates structure so people can get help, particularly at the primary care early part of the system, so their problems can be diagnosed and they can get quick care, rather than guessing what’s wrong.

Joel: I was with leader Jeffries not long ago, and reminded him of this battle. I’ll never forget talking to Speaker Pelosi about the issue, and she was like, Democrats are not in the business of taxing healthcare full stop. But we still have a big battle, because it’s all related to the fiscal cliff, which is around the corner.

Joe Courtney: Where you started out is so important. This is not something where people are just ginning up an issue or manufacturing it. The next congress and the next president is going to have to deal with this, and as long as there are ideas floating around, people really have to think this through as we go into this election, in terms of who are you voting for, and what questions are people being asked?

Joel: Two quick questions. I know we’re running out of time, but we asked all of our guests that joined us these two questions. First, Who’s your favorite member on the other side of the aisle to work with?

Joe Courtney: Despite the narrative that it’s all completely tribal and armed camps on each side, there’s more interaction between members. I work on the House Armed Services Committee, because I have a district with the largest military installation in New England and a large shipyard. I was chair when the Democrats were in control, and now I’m ranking member. My counterpart is Trent Kelly from Mississippi, who chairs the subcommittee. We travel together, work together on committee proceedings. It’s a very collegial, bipartisan group. He’s fun to be with, and a really good guy. His wife, Sheila, is friends with my wife, Audrey. There are signs of intelligent life.

Joel: What’s the number one issue that you’re hearing about from your constituents?

Joe Courtney: Again, there are issues that are currently pressing, whether due to my district, national security and foreign affairs are very much on people’s minds, as there are around 10,000 sailors who would be part of any strategy or policy. Honestly, going back to your prior question, the one thing heard repeatedly is people’s real concern that our system of governing is being threatened by the toxic politics in Washington. As much as we do get along more than expected on a personal level, the dysfunction is really starting to worry people. Right now, we’re on an early summer break, and a week’s worth of votes were canceled. I have a fair number of farmers in my district, and the fact that the Farm Bill, usually a must-do item, looks like it will be abandoned this year, has many farmers really upset that important issues affecting the sustainability of their operations won’t be addressed. Late budgets affect people’s concerns about military pay, and shipbuilding budgets affect job security. The fact that we came close to default a couple of years ago affects the economy broadly, impacting realtors and interest rate-sensitive industries. People are looking for representatives who understand this is not a debate club, but a place to get results, which requires focusing on what’s important.

Joel:  Thank you for your time. We’re really grateful for your leadership on all things. Look forward to working with you just as much in the future as we have in the past. Your team is great, and I hope you have somewhat of a restful recess around the corner, because I know it’s gonna be a wild year ahead of us. So thank you very much. 

Joe Courtney: Okay, thanks, Joel!