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Reid Not Finished Making Changes To Health Care Bill
Pushback against latest idea from Sen. Carper to bury public option. DailyKos' mcjoan: "A triggered co-op! A trigger that's never going to trigger to create a co-op that will never work. Seriously, this is their Plan B?" HCAN's Jason Rosenbaum: "state-based public options already exist, and they haven't been able to put much of a dent in private insurance:"
Sen. Reid considering payroll tax increase on wealthiest to help pay for reform. AP: "[Anonymous Democratic] said one of the options Reid has had under review would raise the payroll tax that goes to Medicare, but only on income above $250,000 a year. Current law sets the tax at 1.45 percent of income, an amount matched by employers. It was not known how large an increase Reid, D-Nev., was considering, or whether it would also apply to a company's portion of the tax. President Barack Obama has said he will not raise taxes on wage earners making less than $250,000."
Politico Pulse analyzes Reid's moves: "Reid has signaled a willingness to completely re-engineer the proposals as he tries to craft a skeleton key that can unlock 60 'yes' votes. In a nod to the liberals, Reid announced that he would include a public option that states could opt not to participate in – a provision not found in either the Health or Finance bills. Then, word came this week that Reid has authorized Sen. Tom Carper to work on a non-profit, trigger public option aimed at picking up moderate votes. And just yesterday, news leaked that Reid is considering a higher payroll tax on upper income earners – a move likely to be detested by moderates and embraced by liberals. It’s becoming increasingly clear that Reid is working in real time to piece together the 60-vote puzzle and when something doesn’t fit, he’s trying pieces cut fresh from the jigsaw. "
AP looks at influence of Catholic bishops group on health care reform: "They don't spend a dime on what is legally defined as lobbying, but lawmakers and insiders recognize that the bishops' voices matter — and they move votes."
Salon.com's Jeff Sharlet suggests evangelical group The Family plays bigger role: "Neither [Reps. Bart] Stupak nor [Joseph] Pitts is talking. Of course, if they just keep quiet, the press will pin it on the bishops -- who, to be fair, are more than happy to take credit. That version of events neglects the role of relationships forged within the evangelical context of the Family -- a group founded in the spirit of virulent anti-Catholicism, and which maintains to this day that being Catholic brings you no closer to Christ than being Jewish or a Muslim..."
Kanjorski Plan To Limit Bank Size Gains Traction
Wall Street nervous of Kanjorski plan to empower government to "dismantle any large firm whose size and risk-taking threaten the financial system." Bloomberg: "Seven Wall Street lobbyists trooped to Capitol Hill on Nov. 9, hoping to convince Representative Paul Kanjorski’s staff that his plan to dismantle large financial firms was a bad idea. They walked out with a sobering conclusion, according to the accounts of two attendees who requested anonymity because the meeting was private. Not only was Kanjorski serious, he planned to offer the legislation as early as next week -- and it just might pass."
Naked Capitalism unimpressed: "admittedly, the Kanjorski proposal would reinstitute Glass Steagall by splitting commercial banking operations from investment banking and thus lead to some pretty dramatic surgery at JP Morgan (hiving off Chase Manhattan), Citigroup, and Bank of America. But while that would affect the scope of operations (and thus the pay packages, since top level pay is correlated with asset size of the entity) of the highest ranks, it would have comparatively little impact at the business unit level. This is a 1930s remedy for 21st century banking. The Kanjorski proposal does remarkably little to reduce TBTF risk. The real problem is not size, and this approach puts the focus on completely the wrong issue ... The only viable solution to the misbranded TBTF problem is to require systemically important firms ... to exit all activities that are not socially essential and therefore deserving of government support..."
W. Post reports Fed seeking to fight political currents and retain broad autonomy: "Fed officials are working with Congress to explore ways to expand oversight without compromising their ability to make unpopular decisions."
Politico Morning Money flags op-ed from US, Singapore and Indoenesia finance ministers implicitly pressing China on currency: "Market-oriented exchange rates in line with economic fundamentals will be essential in assuring the resource and sectoral shifts to match and foster the new patterns of demand."
Fiscally Foolish "Centrists" Ignore Need For Continued Stimulus
State governments facing severe shortfalls and stress on services for several years, though stimulus has helped. Bloomberg: "U.S. states, which are closing $250 billion of budget deficits, will be forced to grapple with diminished revenue until at least 2012, a survey of fiscal officials found. The only thing that kept states from 'draconian' spending cuts has been $135 billion of funding under President Barack Obama’s economic stimulus package, according to a report from the National Governors Associations and the National Association of State Budget Officers. Revenue fell 7.5 percent in fiscal 2009, forcing states to close budget gaps of $72.7 billion. 'These are the worst numbers we’ve ever seen,' said Scott Pattison, executive director of the budget directors group, in a news release. 'States have been forced to lay off and furlough employees, raise taxes, drain rainy day funds and sharply cut state spending.'"
Right-leaning Senate Dems continue to push for special commission to circumvent procedure and prematurely cut deficit. McClatchy: "The drive on Capitol Hill to create a bipartisan commission to help control the cost of health spending and address mounting deficits picked up momentum Tuesday, as Senate Minority Leader Mitch McConnell and a handful of moderate Democrats and Republicans voiced support ... McConnell said he'd have to see the composition and mandate of a commission before signing on ... The White House has signaled interest in the Conrad-Gregg commission approach, according to Conrad, but remains non-committal ... The idea of threatening to hold up a measure allowing the government to raise the nation's nearly $12 trillion debt limit to enable the Treasury Department to continue borrowing has attracted strong backing from Sens. Evan Bayh, D-Ind., 13 other Democrats and Lieberman."
WH considering directing TARP funds to deficit reducation. WSJ: "The administration wants to keep some of the unspent funds available for emergencies, but is considering setting aside a chunk for debt reduction, according to people familiar with the matter. It is also expected to lower the projected long-term cost of the program -- the amount it expects to lose -- to as little as $200 billion from $341 billion estimated in August. The idea is still a matter of debate within the administration and it is unclear how much impact it would have on the nation's mounting deficit levels ... the Obama economic team is especially concerned that rapid deficit reduction could hurt the economy."
Climate Update
Sen. Graham's potential support of carbon cap earns him "censure" from local GOP cmte. NYT: "The executive committee of the Charleston County Republican Party, in a voice vote on Monday, rebuked Mr. Graham 'for many of the positions he has taken that do not represent the wishes of the people of South Carolina, such as: passing a "cap and trade" energy bill, bailing out banks and granting amnesty for illegal aliens,' according to the censure resolution."
Change.org's Mike Smith praises Brazil for stepping up on cutting carbon: "Brazil's government pledges to reduce emissions by around 40 per cent of the projected emissions levels in 2020 emissions were no action were taken ... cutting emissions based on 2020 levels may miss the target to help reduce atmospheric levels of Co2. But Brazil [is still] doing much more than other nations..."
Ethopian PM will be tough negotiator at Copenhagen. Bloomberg: "Envoys for the Dec. 7-18 Copenhagen meeting were given a taste of [Meles Zenawi's] clout at climate talks in Barcelona last week when African delegates staged a one-day walkout to demand the developed world cut greenhouse-gas emissions by 40 percent. Meles has threatened a similar exodus at Copenhagen, which could derail an agreement as he’ll represent 52 of the 190 nations present when unanimity is always sought on global UN accords ... Meles demands industrialized countries such as the U.S. and Britain that released most of the historical emissions to compensate developing nations for climate damage they caused in recent decades. He also seeks subsidies to install clean-energy equipment. The cost to richer nations: $67 billion a year."
