Senate Dems Aim For Inversion Vote
Senate Dems draft inversion plan. WSJ: "The proposal, detailed by Sen. Chuck Schumer (D., N.Y.), would restrict the practice of earnings stripping, where U.S. companies borrow money from overseas parents and deduct the interest expense on U.S. taxes. The proposal, which could become part of a larger corporate inversions package, offers a sign Democrats who have been critical of a wave of corporate inversions are preparing to push legislation taking aim at the practice."
Lifting up wages at the bottom not enough to address inequality, argues W. Post's Harold Meyerson: "Why go after the 1 percent? In part because its ascendancy is the result of wealth appropriation that comes at the expense of wealth production. As a recent study in the Harvard Business Review concluded, a 'survey of chief financial officers showed that 78% would 'give up economic value' and 55% would cancel a project with a positive net present value — that is, willingly harm their companies — to meet Wall Street’s targets and fulfill its desire for 'smooth' earnings ... What has changed is the ability of major shareholders to demand a greater share of income from enterprises that would otherwise put it to more productive use and enable greater consumption."
"Dropping corporate tax revenue worries feds" reports The Hill: "Corporations paid around a third of all U.S. revenues in the early 1950s, a figure that’s dropped to around 10 percent in recent years thanks to a host of factors ... The offshore tax deals that allow corporations to reincorporate abroad – and have drawn the ire of President Obama in recent weeks –play a relatively small role in the dwindling corporate tax base. But experts say the attention given to inversions illustrates the broader problem facing the corporate tax system."
Settlement Let JP Morgan Chase Avoid Trial
JPMorgan settlement kept evidence of criminal behavior under wraps, says The Nation's William D. Cohan: "It was the largest financial settlement of all time, and it kept [U.S. Attorney Ben] Wagner’s complaint away from the prying eyes of the public. One thing is clear: [JPMorgan CEO Jamie] Dimon’s claim that his own bankers and traders had done nothing wrong in the years leading up to the financial crisis wasn’t true. 'The investigators and the lawyers were uncovering very viable evidence,' explains Associate Attorney General Tony West, who headed up the settlement negotiations on behalf of the Justice Department ... Although Wagner’s complaint remains unfiled—and, so far, unobtainable—tantalizing hints of what it contains are available in a sanitized 'statement of facts' that was a required component of the settlement..."
Republicans push for weaker regulations on Wall St. campaign cash. Politico: "Republicans eager to challenge campaign spending limits before the Supreme Court have found their next target: a Securities and Exchange Commission rule that limits contributions from Wall Street financiers to governors and other state officials running for federal office. Aimed at combating bribery or 'pay-to-play' schemes when states seek help managing their investment decisions, the SEC restrictions have proven to be irksome to governors with an eye on the White House and state officials seeking a seat in Congress who are cut off from a big pot of campaign cash."
Child Migrants Won't Miss School
Obama prepares schooling for child migrants. The Hill: "A fact sheet from the Department of Education sent to states and schools on Monday highlights the children’s right to attend public school ... The prospect of tens of thousands of children mostly from Central American countries attending school as they wait for their immigration status to be decided has the potential to be explosive after this summer’s emotional public debate about the border."
Vulnerable Senate Dems worry about executive order. Politico: "With the prospects that the fallout could hurt their incumbents in conservative states, Democratic leaders in the Senate want little ownership of the timing of the president’s decision. At the same time, they don’t want to anger pro-immigration groups by publicly siding with red-state Democrats even though the Senate leadership has aggressively tried to protect their vulnerable members from taking tough votes and being cornered into uncomfortable positions all year."
Senate Dems Optimistic About Midterms
Senate Dem leaders "upbeat" about midterms, reports Roll Call: "Senate Majority Leader Harry Reid told a union audience in Nevada that he believed Democrats would keep the Senate if the elections were held today, while also pushing steelworkers to work to get out the vote ... Democrats face a challenging map and are likely to lose at least three open seats, but they are optimistic about their most-endangered incumbents and not allowing Republicans to pick up an additional three."
Sen. Warren avoids presidential primary states IA and NH. The Hill: "Warren has taken her message to a dozen states the year, including Oregon, Kentucky, Minnesota, Ohio and West Virginia. But she's left off both the Hawkeye and Granite States despite the fact that both are top GOP targets Democrats are defending ... Polls have [IA's Bruce] Braley in a tight race with Republican state Sen. Joni Ernst in the race to succeed retiring Sen. Tom Harkin (D). Meanwhile, [NH's Jeanne] Shaheen has a comfortable lead against Warren's political nemesis: Scott Brown..."
Breakfast Sides
"White House announces more steps on improving college opportunity" reports McClatchy: "Fourteen community colleges _ in North Carolina, Washington, Texas, California and other states _ are joining a White House initiative to help students who aren’t prepared for college get over the hurdles of remedial classes and go on to complete college degrees."
Obama should sue Republicans, argues Thomas Geoghegan in Politico oped: "...it’s Boehner’s party that has pulled off the constitutional coup by manipulating district boundaries in state after state—essentially rigging elections in its favor ... Let Boehner sue. Let the president sue back. Or sue the states that have engaged in any scheme of gerrymandering of the U.S. House. Does Obama have such a right to sue? You bet he does..."
