Baucus-Grassley Tiny Jobs Bill Scrapped For Reid Tiny Jobs Bill
Reid dumps Baucus-Grassley deal as bloated. Bloomberg: "Senate Majority Leader Harry Reid announced yesterday he was dropping scores of provisions from a $85 billion compromise jobs plan ... Reid said their proposal had been “watered down” with extraneous provisions, and that he would instead proceed with a bill that had just four items: the hiring tax break, an increase in highway spending, an extension of the Build America Bonds program and tax breaks for small businesses ... The revised plan would cost about $15 billion..."
Additional provisions derided as special interest favors. W. Post: "Senior Democratic aides said Reid made the move to quell squabbling among Democrats ... amid rising criticism that the legislation included too many special-interest perks. As of Thursday night, it remained unclear whether Reid's maneuver would cost some GOP votes..."
Reid keeps bipartisan Schumer-Hatch tax credit for hiring. Hatch criticizes Reid for being partisan. NYT quotes Hatch spokesperson: "Needless to say, Senator Hatch is deeply disappointed that the majority leader has abandoned a genuine bipartisan compromise only hours after it was unveiled in favor of business-as-usual, partisan gamesmanship."
Several Dems unhappy with Baucus concession on estate tax. CQ: "Baucus and Grassley made it clear the fate of their broader package will depend on ... a commitment by Senate Democrats to bring up legislation ... that would indefinitely extend and modify the estate and gift taxes ... [That] raised immediate concerns among some Senate Democrats. 'The estate tax issue is very controversial, and I have no interest in being a part of anything that is going to decide we’re going to give big tax breaks to the wealthiest Americans...' Byron L. Dorgan of North Dakota said..."
Biz tax breaks treated better than unemployment aid in Baucus-Grassley. WSJ: "Some Democrats grumbled privately the bill would have extended jobless benefits for only three months but gave a one-year renewal to several lapsed business tax breaks."
Politico claims many in DC are unhappy with Reid: "'Grassley and three to four Republicans would have voted for it, but all the other Republicans would have beaten the living s—t out of us [during the 2010 midterms], claiming the bill was too bloated,' said a Democrat who supported Reid's decision ... Few felt as good about the decision: Republicans say the about-face will only add to an already poisonous partisan atmosphere, liberal Democrats think the bill is too small to do much good and the powerful negotiators of the bipartisan package were left embarrassed, demoralized and befuddled."
Reid leaves out unemployment insurance extension, but plans to deal with it separately. HuffPost's Arthur Delaney notes downside of delay: "The Senate is taking a break next week, so that stuff will have to wait until the end of the month -- the last moment before the previous extension runs out ... So, even though it's entirely likely that Congress will pass an extension before Feb. 28 ... some people will nevertheless receive letters telling them they're not eligible for the next 'tier' of benefits."
NYT edit board rips all Senate plans as miniscule: "...scarcely began to grapple with the $266 billion in provisions for jobs and stimulus that President Obama proposed in his budget. It was not even in the same league as the modest House-passed $154 billion jobs bill ... a credible jobs package must extend unemployment benefits through 2010 [and] provide fiscal aid to states..."
Washington Monthly's Steve Benen warns Dems of the political risks of weak bipartisanship: "...when Americans notice that the jobs bill didn't deliver impressive results, it's the Democratic majority that will get the blame, even though Dems wanted a better bill. This is the nature of 'bipartisan' lawmaking — giving lawmakers a chance to vote on inadequate legislation."
NYT/CBS polls finds Bush still gets the blame for the economy: "...a majority of respondents say [President Obama] has yet to offer a clear plan for creating jobs [but] Americans blame former President George W. Bush, Wall Street and Congress much more than they do Mr. Obama for the nation’s economic problems and the budget deficit ... By a two-to-one ratio, Americans support an end to tax cuts for the wealthy ... Americans appear hungry for an end to partisan infighting in Washington, so much so that half of respondents said the Senate should change the filibuster rules ..."
WH to form debt commission in 10 days, CNN reports.
New Bipartisan Attempt For Financial Reform
After impasse with Sen. Richard Shelby, Sen. Chris Dodd starts new round of bipartisan talks on financial reform with Sen. Bob Corker. W. Post: "...this latest move leaves [Dodd] open to second-guessing if the bill fails or he makes compromises that liberals find unacceptable. But Corker took perhaps the larger leap of faith, breaking ranks with fellow Republicans and bucking the far more tenured Shelby to work directly with Dodd."
Corker against an independent consumer protection agency. The Hill: "Corker said in an interview that he opposes a fully standalone agency that is backed by President Barack Obama ...Corker said he did not believe the Volcker rule or [Obama's bank] fee proposal would dominate the new negotiations."
But also Corker suggests compromise on consumer protection. LAT: "Corker ... said he suggested to Dodd on Thursday that they put that issue aside until all the other components of the bill are negotiated. Corker said a compromise could be worked out under which existing regulatory agencies would get an expanded consumer protection mandate."
Economics of Contempt suggests consumer advocates redirect their focus: "...start thinking about what specific powers and directives they want a consumer financial regulator to have, and then start pushing for a division within an existing agency to be given those powers/directives."
Sen. Sherrod Brown proposes tax on bonuses at bailed out firms. The Hill: "Brown wants to impose a 50 percent tax on executive bonuses at firms that received aid under the $700 billion financial bailout package. The tax would fall on bonuses in excess of $25,000. Brown's legislation would use the revenue to support loans from the Small Business Administration."
The Financial Times covers the "stark choice" facing Goldman Sachs and other banks under the "Volcker Rule": "Goldman Sachs and other banks should give up their bank status if they want to avoid the ban on proprietary trading proposed by the White House, Paul Volcker, head of President Barack Obama's Economic Recovery Advisory Board, said. 'The implication for Goldman Sachs or any other institution is, do you want to be a bank?' Mr Volcker said in a video interview with the Financial Times. 'If you don't want to follow those [banking] rules, you want to go out and do a lot of proprietary stuff, fine, but don't do it with a banking license.'"
Naked Capitalism skeptical: "...Goldman will be able to keep the most important bennies of its status of being a bank, that of ready access to a Fed lifeline, as long as it makes an 'appease the peasants' disposition of its depositary, in the hope that no one gets what is really going on."
The Nation juxtaposes Tea Party populism with GOP Wall Street pandering: "While the tea partyers bash the bailouts, conservative politicians like John Cornyn skulk around New York hustling to get their hands on some of that bailout-facilitated campaign cash. It's a fresh version of the tried-and-true GOP approach described by Thomas Frank in What's the Matter With Kansas?, though this one is more audacious: rather than using social issues to distract from an economic agenda favoring the plutocracy, rage over bank bailouts provides cover for efforts to raise money from banks and stymie bank regulation."
Health Insurance Companies Still Sucking Us Dry
WH not buying Anthem Blue Cross explanation for giant rate hike. NYT: "While the insurance companies posted substantial profits, they said they have had to increase premiums to keep up with the rising costs of medical care. In her statement, [HHS Sec. Kathleen] Sebelius said she was skeptical of this explanation. 'High health care costs alone cannot account for a premium increase that is 10 times higher than national health spending growth,' she said."
HCAN released new report chronicling insurance company profiteering. LAT: "As the nation struggled last year with rising healthcare costs and a recession, the five largest health insurance companies racked up combined profits of $12.2 billion -- up 56% over 2008 [even though they] covered 2.7 million fewer people than they did the year before."
AP reports Dems still working on budget reconciliation package for health care: "Many Democrats believe the likeliest way forward is for the House to pass the Senate health care bill, and then for both chambers to pass a package of changes to fix elements House Democrats don't like ... The package of changes could pass under rules allowing for a simple majority vote in the Senate ... Work continues behind closed doors to craft the package, with lawmakers aiming to finish it ahead of the [Feb. 25 bipartisan] summit."
Politico notes Republicans haven't been able to sell the public on a health care alternative: "more than having a sales pitch, the GOP needs an effective salesman — or saleswoman — to convince Americans that a Republican plan is the right way to go. So far, few in the congressional rank and file have been able to ride GOP opposition to an Obama-style health plan to a higher political profile."
NYT's Paul Krugman nails conservative hypocrisy on Medicare: "Even as Republicans denounce modest proposals to rein in Medicare’s rising costs, they are, themselves, seeking to dismantle the whole program."
HCAN's Jason Rosenbaum hits key Republicans for selling "new" ideas that are already in the pending bills: "If you can't come up with new ideas that aren't already in the bills or would actually solve the fundamental problems in our health care system and you still oppose the bills on the table that do these things, then you are arguing for the status quo. The Republicans are hypocrites, plain and simple. Democrats should move forward to finish health reform right using majority rule."
Top drug lobbyists quits after backlash from working with White House. NYT: "Billy Tauzin, one of the highest paid lobbyists in Washington, is resigning ... amid internal disputes over its pact with the White House to trade political support for favorable terms in the proposed health care overhaul ... Under his direction ... the Pharmaceutical Research and Manufacturers of America ... backed up its end of the deal by spending more than $100 million on ads to promote the overhaul. But after the reform stalled, some industry leaders felt the trade group had gone too far giving concessions..."
GOP Blinks on Nominees, Reid Casts Doubt on Filibuster Reform
After President threatens recess appointments, Senate approves slew of nominees. NYT: "In a statement on Thursday night, the president described the confirmations as 'a good first step' and seemed to signal he would not be making recess appointments anytime soon. But Mr. Obama’s statement added: 'There are still dozens of nominees on hold who deserve a similar vote, and I will be looking for action from the Senate when it returns from recess. If they do not act, I reserve the right to use my recess appointment authority in the future.'"
W. Post edit board rips Shelby for "congressional hostage-taking": "Nominees should be judged on their merits ... A hold may be appropriate if a senator has serious concerns about a nominee's qualifications or character, but it is obnoxious for a lawmaker to refuse to let a nomination move forward unless he gets concessions on a pet project or policy matter."
Reid notes high bar for new Senate rules to cast doubt on filibuster reform. W. Post: "...Reid said of the latest filibuster-reform resolution, from Sen. Tom Harkin (D-Iowa). 'It takes 67 votes, and that, kind of, answers the question.' ... Sen. Tom Udall (D-N.M.), a freshman, has introduced a more radical rule change ... call[ing] for the Democrat presiding over the Senate ... to declare that the Senate is not a 'continuing body' and does not have to abide by the rules passed decades ago ... this is sometimes called 'the nuclear option', because it would so tear away at the framework of the Senate for the last 150 years..."
Ezra Klein argues for delayed reform: "...the best hope for reforming the filibuster is an agreement between the two parties that takes effect six or eight years into the future, when no one knows which party will initially benefit."
Campaign Finance Measures Planned
Sen. Schumer and Rep. Van Hollen proposed legislation to counter impact of Supreme Court ruling on corporate campaign cash. LAT: "The legislation would seek to prevent foreign-owned corporations and government contractors from spending money on U.S. elections ... The bill would also increase disclosure requirements for domestic corporations. It would force chief executives to appear on camera at the end of corporate-sponsored ads, saying, in essence, that they 'approved this message.'"
Conservatives no likey. W. Post: "...the proposals are certain to be strongly opposed by major business groups and many Republicans, who have praised the court's decision as a victory for the First Amendment ... Two reform groups, Public Campaign and Common Cause, said that [the bill is] 'a great start' but urged passage of broader legislation that would encourage small-money donors through public matching funds."
Sen. McCain ducks. NYT: "Mr. McCain, who is facing a conservative challenge to his re-election, has not had time to review the proposals, said his spokeswoman..."
