MORNING MESSAGE: Yes, Romney Is a "Modern Capitalist."
OurFuture.org's Richard Eskow: "David Brooks says Obama's attacks on Romney's business record are 'about capitalism.' That's like saying an arrest for vehicular homicide is 'about driving.' … Brooks conflates the economic rampage this process has created with capitalism itself - or, in a phrase he uses no less than three times in an 800-word piece, 'modern capitalism.' Those two words embrace behaviors that include both Wall Street lawlessness and the government largesse that has inflated the wealth of people like Mitt Romney, whose firm's first success was made possible by Massachusetts tax deals and whose personal fortune has been padded by undeserved loopholes. Today's big-corporate czars are the worst case studies in unchecked greed since the Robber Barons. You'll need a phrase like 'Modern Capitalism' if you're trying to defend their misdeeds."
Romney Faces Mutiny Over Tax Returns
"Republican chorus" calls for Romney to release more tax returns. The Atlantic: "…the dissenting Republicans don't feel they owe Romney anything, or they think they're doing him a favor by giving him good advice … As a matter of ideology, these Republicans want Romney to stop acting ashamed of his wealth."
Romney team now suffering "some divisions" over tax return question reports W. Post.
Romney accuses Obama of "cronyism," struggles to explain his treatment of donors while governor. CNN: "Asked in an interview with CNN Pittsburgh affiliate KDKA if he had ever aided a political donor, Romney said his administration had 'one circumstance' where a campaign contributor 'was looking for help.' 'We set up a very elaborate process to make sure that neither I nor other members of my staff were involved in the decision making,' Romney added."
Dems Give GOP Way Out Of Pledge
Senate Dems draft plan to give Republicans a way out of the Norquist tax pledge. NYT: "Allow all the tax cuts to expire Jan. 1, then vote on a tax cut for the middle class shortly thereafter … if tax rates snap back to the levels of the Clinton presidency on Jan. 1, any legislation to reinstate some of those tax cuts — but not all of them — would be considered a tax cut … Next week, Senate Democrats will push tax legislation that makes a significant concession to Republicans. It would secure Mr. Obama’s tax increases on the rich, but it would tax dividends and capital gains at a 20 percent rate for households that earn more than $250,000 … Republicans likely to work with Democrats on any deficit deal rejected [the tax maneuver] out of hand."
"Industry-Financed Study Gets President’s Tax Cuts Wrong" says White House: "…we will continue to demand that this debate is based on facts and analysis from non-partisan, independent sources—not based on industry studies like one that was released this morning by Ernst & Young done by former Bush appointee and paid for by industries that have a record of opposing the President’s policies. The study’s estimates are based on policies that are at odds with the President has actually proposed, omit key proposals the President has made and employ flawed assumptions that are at odds with respected independent analysts like the Congressional Budget Office…"
Simpson and Bowlers launch new bipartisan austerity group, "Fix The Debt." W. Post: "… the group’s leaders said during a news conference at the National Press Club: Raise more money through a simplified tax code and spend less on Social Security, Medicare and Medicaid … former Pennsylvania governor Ed Rendell (D) … is chairing the group with former New Hampshire senator Judd Gregg (R) …"
Bernanke Hints At Stimulus
Bernanke lists option for additional monetary stimulus. Bloomberg: "Easing tools include further purchases of Treasuries and mortgage-backed securities, and altering the Fed’s language on the outlook for interest rates, Bernanke told the Senate Banking Committee in Washington yesterday. Another option is to use the so-called discount window for direct lending to banks … 'We haven’t really come to a specific choice at this point, but we are looking for ways to address the weakness in the economy should more action be needed to promote a sustained recovery in the labor market,' Bernanke said."
Bernanke suggests replacing Libor. McClatchy: "'The Libor system is structurally flawed,' Bernanke told the senators, suggesting it might be better to replace it with something else. The Fed chief testified that he first learned of the interest-rate fixing around April 11, 2008. Days later there were news reports that the British bank Barclays and perhaps other banks were manipulating the information they contributed to the collectively set rate. The original information was received by the Federal Reserve Bank of New York, from an employee of Barclays. The bank’s tipster, Bernanke said, had told the Fed that Barclays’ borrowing costs for overnight loans from other banks were higher than it was reporting."
Breakfast Sides
Sen. Maj. Leader Reid pledges filibuster reform if he still has a majority. W. Post: "Reid’s remarks have heartened filibuster-reform advocates who supported the 2010 Merkley-Udall-Harkin bill, sponsored mostly by Senate Democratic freshmen. Fix the Senate Now — a progressive coalition including the Communications Workers of America, the Sierra Club, and Common Cause — is reconvening this week in an attempt to revive the issue."
TX country officials unhappy with Gov. Rick Perry's refusal to expand Medicaid. NYT: "Several local leaders, health policy analysts and officials at urban hospitals across the state said Mr. Perry’s decision to reject billions of federal dollars that Texas would receive in a Medicaid expansion would hurt county taxpayers and the hospitals they support, forcing them to continue to pick up much of the tab for treatment of the uninsured."
President to propose $1B for "high-performing" teachers. AP: "The Obama administration unveiled plans Wednesday to create an elite corps of master teachers, a $1 billion effort to boost U.S. students’ achievement in science, technology, engineering and math … Teachers selected for the Master Teacher Corps will be paid an additional $20,000 a year and must commit to participate multiple years."
14% of US-based manufacturers plan to "re-shore" jobs back to America reports WSJ.
Republicans whine about Obama's state waivers on welfare-to-work implementation. NYT: "The directive results from a broader effort by the Obama administration to peel back unnecessary layers of bureaucracy and allow states to spend federal money more efficiently. But Republicans, who characterize the move as a power grab by the executive branch, have criticized the waivers, saying they prove that the president and Democrats support providing welfare money without encouraging the recipients to find work … What is happening now is a result of a presidential memo in February 2011 that urged executive departments and agencies to ask states for ideas on how to make the federal government more nimble. As the Health and Human Services Department began to solicit suggestions, a handful of states complained about being burdened by the welfare program’s paperwork and reporting requirements."
