Each morning, Bill Scher and Terrance Heath serve up what progressives need to affect change on the kitchen-table issues families face: jobs, health care, green energy, financial reform, affordable education and retirement security.
MORNING MESSAGE: A Jobs-First Deficit Plan
OurFuture.org's Richard Eskow: "The Citizens' Commission On Jobs, Deficits And America's Economic Future is releasing its report today, and its recommendations will be very different from those of the self-described 'bipartisan' plans now dominating Washington conversations ... They address the real causes of today's deficit - runaway tax cuts, unchecked military spending, and a recession caused by Wall Street greed and speculation ... Much of the money in the Citizens' Commission report would go to rebuilding our infrastructure. Other funds would be used for green jobs ... When we invest more in America's future, there will be more happiness, along with increased prosperity and growth. And more tax revenue to cut that deficit."
Deficit commission co-chairs cancel public meeting for more private negotiation. WSJ: "Co-chairmen Erskine Bowles and former Sen. Alan Simpson instead plan to hold a press conference Tuesday afternoon at 3:30 p.m. Their public meeting had been scheduled for Tuesday morning at 9:30 a.m. On Wednesday, the co-chairmen plan to hold a public meeting ... The 18 members of the panel are expected to hold a formal vote on the proposal at the Wednesday meeting, despite a rumor circulating through Washington in the last week that a final vote might be postponed."
Deficit reduction still low priority in latest AP/CNBC poll: "...Americans prefer cutting federal services to raising taxes by nearly 2-1 in a new poll. Yet there is little consensus on specific, meaningful steps - and a wariness about touching two gargantuan programs, Social Security and Medicare ... Of seven issues tested, the deficit was even with taxes as fifth most mentioned, well behind the economy ... Nearly two-thirds oppose raising the retirement age to 69 for people to receive full Social Security benefits ... most people oppose extending expiring tax cuts for the richest Americans. Just 34 percent want to renew tax cuts for everyone."
Deficit hawks, writes Dean Baker, are substituting money for competence: "The Washington Post, National Public Radio (NPR) and everyone else who is respectable in Washington agrees: we must do something about the deficit now. They also agree that this 'something' involves major cuts to the Social Security and Medicare, programs that the middle class depends upon ... Specifically, without exception, these authority figures failed to recognize the largest financial bubble in the history of the world. This failure of the people in power, including the deficit hawks, is responsible for the enormous suffering that the country is now experiencing."
Obama Federal Worker Wage Freeze Opposed By Progressives
The Hill deems Obama attempt to freeze government worker pay " a play from the Republican handbook": "The move represents the first time Obama has fully embraced a Republican idea on spending cuts since the election, and the proposal can be seen as either an olive branch to newly empowered Republicans or a Clintonesque attempt to co-opt their ideas ... House Democratic Leader Steny Hoyer (Md.) offered the faintest praise for Obama’s idea, saying he would 'review' the proposal but avoiding a pledge to take it up in the lame-duck session."
Congressional Dems split, reports TPM's Brian Beutler: "Progressive members are openly questioning his proposal to freeze federal pay through at least 2012, while their conservative counterparts support the plan ..."
In freezing federal worker's pay, Time's Michael Scherer writes that Obama has turned his back on the Democratic base: "...in the first of several moves to get out ahead of the new Republican majority in the House. ...The public employee unions the biggest institutional backers of the Democratic Party ... By taking this step, Obama is signaling that he is willing to take money from his own friends to deal with the budget deficit, and making clear gambit to win back the sympathies of political moderates who are sick of pay-to-play habits of Washington. It is also a challenge to Republicans: Are they willing to take anything away from their bases? Or, when it comes to addressing the federal deficit, will they continue to dance with the ones that brung them?"
Jamelle Bouie at TAPPED calls the federal pay freeze pointless and self defeating: "When you control for experience, gender, race, and total work hours -- along with education -- then government employees are paid 3.74 percent less than their private sector counterparts. Simply put, federal employees aren't making a mint off of their association with the government, and freezing their pay does nothing more than take money out of their pockets and out of the economy."
Tapped's Tim Fernholz not holding breath waiting for independents to support Obama's move: "...I'm sure the media and independent voters will give the president credit for his moderate position, just like they did for his deficit-cutting, centrist health-care plan (based on the ideas of Mitt Romney and Republican counter-proposals to the Clinton administration's health-care overhaul) and his offer to compromise on Bush tax policy by extending tax cuts for the entire population rather than disproportionately benefiting the wealthy."
TNR's Jonathan Bernstein adds: "...hardly anyone actually cares about budget deficits, and one group of people—federal employees (and their families, and perhaps their friends) do care intensely about federal employee pay. Indeed, that's the case with just about all federal spending; cutting spending will at best get very mild approval from mass publics, but will get intense disapproval from the affected constituency."
At TPM, David Kurtz covers the federal pay freeze and the finer points of negotiating with yourself: "A pay freeze for federal workers is the sort of gimmicky deficit reduction measure that you could see using as a bargaining chip in broader negotiations over how to best reduce the deficit. But as a standalone, unilateral concession? It doesn't do much to actually reduce the deficit and it's a shot at a core part of the Democratic base, so why concede it right off the bat?"
Dean Baker interprets: "...consumption would fall by $1 billion in 2011 and $2.5 billion in 2012 ... GDP will be about 0.007 percent lower in 2011 and about 0.018 percent lower in 2012, implying drops in private sector employment in these years of 7,000 and 18,000 jobs, respectively"
Tea party activists push Rep. Jack Kingston to head Appropriations cmte reports Politico.
Anti-earmark push sparking panic threatens infrastructure projects, panics cities. USAToday: "Cities are bracing to lose millions of dollars in funding for transportation and community projects, from subway lines to youth centers ... Spending bills in the House for the 2011 fiscal year include more than 3,000 earmarks worth $3 billion ... It's not clear whether Congress will approve any of those in the year-end session underway."
Two-week spending bill expected to delay possibility of government shutdown. CQ: "A vote could come as early as Wednesday in the House on a new continuing resolution that would maintain funding at fiscal 2010 levels through Dec. 17. That would give lawmakers more time to decide whether to move ahead with a stopgap bill that would fund the government into or through the next year or proceed with a fiscal 2011 omnibus spending bill ... Any effort to pass an omnibus in the Senate would face long odds, with Republican leader Mitch McConnell of Kentucky opposed to the move. Many Republicans are pushing a short-term continuing resolution, which would allow them to pursue their own fiscal priorities — and spending cuts — early next year ... No final decision has been made on how to fund the government during the remainder of the fiscal year."
President Meets With GOP Leaders Today On Bush Tax Cuts
Tax cut stalemate top issue for President-GOP leader meeting today. The Hill: "...White House press secretary Robert Gibbs said he doesn’t anticipate the leaders to emerge having formed a consensus on the thorny issue of extending the Bush tax cuts ... [But] Gibbs said the president’s No. 1 priority is dealing with the tax issue, and [the] START [treaty] is second."
Plans solidify for Senate up-or-down vote on ending the Bush tax cuts for the wealthy. HuffPost: "...Senate Democrats have come to the fragile conclusion that they should and will hold a solitary vote to extend rates for the middle class while letting those for the wealthy expire ... Not that the party expects they can win such a vote ... said one Senior Democratic aide. 'So we take that middle-class vote first, then we look to a compromise and see what's in the grab bag.' ... Senate Majority Whip Dick Durbin (D-Ill.) iterated a deal that has long been discussed in private -- in exchange for giving in on the upper rates, Republicans would drop opposition to prolonging emergency unemployment benefits and other tax credits."
House vote expected this week. The Hill: "'We will have that vote,' Rep. Chris Van Hollen (D-Md.), assistant to the Speaker ... 'this week.' ... Lawmakers said there was only a limited discussion of the tax cut issue at a caucus meeting Monday night. No final decisions on the timing or procedure for votes are expected until after congressional leaders meet with Obama at the White House on Tuesday ... "
Boehner and McConnell pen W. Post oped in advance of meeting, offer no concession on tax cuts: "If President Obama and Democratic leaders put forward a plan during the lame-duck session to cut spending and stop the tax hikes on all Americans, they can count on a positive response from Republicans. If the president and Democratic leaders don't act before the end of the year, however, House and Senate Republicans will work to get the job done in the new Congress. But we hope it doesn't come to that."
U.S. Chamber Watch finds CEOs have "a lot to lose" in tax cut fight: "The CEOs for whom the U.S. Chamber is lobbying include some of the wealthiest executives in the nation, who make tens of millions of dollars in annual income: bankers like Jamie Dimon of JPMorgan (average income: $21,991,394), Lloyd Blankfein of Goldman Sachs (average income: $31,949,089), and John Stangfeld of Prudential Financial (average income: $16,375,447) ... Each of these CEOs stands to personally gain at least $700,000 to $1.7 million if the Bush Tax Cuts are extended. Unsurprisingly, the U.S. Chamber does not highlight the personal benefits the Bush tax cuts provide for these millionaire executives..."
Senate Dems introduce year-long jobless aid extension bill. HuffPost: "The cost of the legislation is not 'offset' with spending cuts, meaning it likely faces insurmountable opposition from Republicans and conservative Democrats opposed to deficit spending ..."
Another Health Care Attack Proves False
Ending Medicare Advantage subsidies to private insurers working out just fine, debunking conservative attacks. W. Post: "Fewer health plans are available for the coming year, but the decrease is largely for reasons unrelated to the new law. Premiums have not jumped substantially, and benefits have not tended to erode ... Jonathan Blum, director of the CMS's Center for Medicare .... said that insurance executives with whom he has met have told him they expect to enroll more Medicare patients for the coming year - despite recent predictions by the Congressional Budget Office that enrollment would dip."
Congress investigates limited health care plans for low-wage workers. WSJ: "New restrictions in the health overhaul passed in March are expected to effectively eliminate mini-med plans as of 2014 ... whether to impose tougher regulations on such plans to raise annual benefit payouts, or force them to spend more money on medical care in the meantime, has become a thorny issue ... In recent weeks, federal regulators have granted dozens of waivers to mini-med providers so they can keep the caps on annual payouts ... Democrats on the Senate Committee on Commerce, Science, and Transportation, led by Sen. Jay Rockefeller (D., W. Va.), are looking at whether mini-med plans should face tougher regulations."
Incoming FL governor moves to stall health reform implementation. Wonk Room's Igor Volsky: "The big question will be if Florida and the other anti-reform states will fall into Gov. Tim Pawlenty’s (R-MN) pattern of accepting ACA dollars while rallying against the law. The Orlando Sentinel notes that the state has already 'been awarded $43 million in grants to provide $250 rebates to seniors who fall into the “donut hole” in the Medicare prescription drug program; to help prepare the Office of Insurance Regulation to evaluate out-of-state insurers seeking to sell health coverage in the state; and to plan for creating a health-care marketplace, or “exchange,” and other changes.' It’s worth asking Scott if he’s planning on sending back the money or applying for future grants."
Senate fails to pass repeal of small business tax compliance provision in health care law. NYT: "A Democratic plan to overturn it attracted only 44 votes in support with 53 against; a Republican plan that would have cut other programs to make up the shortfall caused by the repeal fell short [of the two-thirds threshold] on a vote of 61 to 35 ... Senate officials said they expected that another vote on repeal would come soon, given the support the idea has in both parties."
States must decide if they will seek delay for rules against insurer profiteering. Politico: "As insurance commissioners weigh their decisions, lobbying groups representing insurance agents and brokers plan a push to encourage adjustment applications. The National Association of Health Underwriters and National Association of Insurance and Financial Advisors said they plan to work with state regulators in the coming weeks. Agents were disappointed with the MLR rule, which included broker fees as an administrative cost; they had asked for their fees to be left out of the calculation."
States May Expand Cap-And-Trade
States may expand regional carbon cap. Bloomberg: "California, New Mexico and 10 U.S. Northeastern states may try to create a North American carbon market on their own now that President Barack Obama has given up on cap-and-trade legislation ... Three Canadian provinces have also shown interest in a cross-border carbon-trading system ... Such a cap-and-trade system may cover more than 800 million metric tons of carbon dioxide a year, making it about one-third the size of Europe’s cap-and-trade program..."
Energy Sec. Chu makes the case for increased spending on clean energy research, warning of China's "Sputnik." NYT: "With some House Republicans gunning for the stimulus bill, especially the portion that went to the Energy Department, the energy secretary went on a pre-emptive offensive ... in the jockeying among House Republicans for leadership positions, Dr. Chu and his department have become a target. Representative Fred Upton of Michigan ... sent a letter to Dr. Chu on Nov. 23 complaining that the Energy Department’s $40 billion slice of the $862 billion stimulus bill did not appear to be doing much to create jobs ... But in his speech, Dr. Chu seemed to have longer-term goals in mind. He compared the recent rise in research and development and high-technology manufacturing in China to the Soviet launching of the Sputnik satellite in October 1957."
Chu takes a swipe at ethanol subsidies. Politico: "The Obama administration Monday increased the amounts of ethanol and other renewable fuels it wants to see as part of the nation’s gasoline supply ... Responding to a congressional mandate ... Meanwhile, Energy Secretary Steven Chu on Monday said that the future of transportation fuels shouldn't involve ethanol ... 'Corn-based ethanol is a good way of getting it going, realizing that Americans can drive their vehicles from using agriculture based fuels, but we are primarily focused on developing the new technologies that can supersede ethanol made from starches and sugars,' he said."
Last-ditch attempt to extend renewable energy stimulus program. The Hill: "In a letter Monday to Senate Democratic and GOP leaders, the lawmakers tout the benefits of the expiring Treasury Department grant program that was created in the 2009 stimulus law, and warn that renewable energy project financing will dry up without its extension ... Sen. George LeMieux (R-Fla.) joined 26 Democrats on the letter."
As UN climate talks resume, NYT on where hope remains: "...slowing the destruction of forests, sharing technology to produce energy in less-destructive ways, helping poorer countries adapt to the inevitable changes to the climate and building a multibillion-dollar fund to further these goals."
Utilities switching to natural gas as coal gets more expensive. NYT: "Over the last year and a half, at least 10 power companies have announced plans to close more than three dozen of their oldest, least efficient coal-burning generators by 2019. A few are being replaced by new, more efficient coal plants, but many more are being replaced by gas-fired plants ... Gas burns cleaner than coal, helping utilities meet state and corporate goals for reductions in greenhouse-gas emissions. Older coal plants, on the other hand, require expensive upgrades, including scrubbers and other controls, to meet coming compliance rules ... gas prices have remained at depressed levels over the last two years ... while coal prices have increased by more than a third this year because of higher production costs linked to tougher regulations and increased demand from China."
Dem Rep. Ed Markey to hold one last climate science hearing. Politico: "Markey’s invited a star-studded cast of witnesses ... Former Democratic presidential candidate Wesley Clark and outspoken environmental advocate Robert F. Kennedy, Jr., are among those invited ... GOP leadership is expected to axe the [climate] panel ..."
Foreclosure Scandal Deepens
Bank of America sinks deeper in foreclosure scandal. Bloomberg: "Linda DeMartini, a team leader in the company’s mortgage- litigation management division, said during a U.S. Bankruptcy Court hearing in Camden last year that it was routine for the lender to keep mortgage promissory notes even after loans were bundled by the thousands into bonds and sold to investors, according to a transcript. Contracts for such securitizations usually require the documents to be transferred to the trustee for mortgage bondholders ... the bank disavowed the statements by DeMartini ... 'If this is correct, many, many, many foreclosures already occurred in which this plaintiff didn’t have the note,' said [attorney] Bruce Levitt ... 'This could affect thousands or hundreds of thousands of loans.'"
TARP cost estimate drops again, but partly due to ineffective foreclosure relief. CBO: "[TARP] is now expected to cost the federal government a mere $25 billion ... total TARP outlays [are at] $433 billion, of which about half - $216 billion - has been repaid ... The rest of the TARP investments, meanwhile, have become markedly less risky, according to the CBO, and in many cases even profitable ... The Treasury reaped $12 billion from GM's hugely successful initial public offering earlier this month. ... Much of the rest of the projected cost of the TARP stems from federal efforts to help homeowners avoid foreclosure. Those efforts are also proving to be less costly than expected because of lower participation..."
Push Continues For Immigration Reform
WH keeps pushing DREAM Act immigration reform. Politico: "Education Secretary Arne Duncan said Monday that Congress can’t afford to wait to pass the DREAM Act, even as immigration allies acknowledge there’s little hope of getting the bill done in the lame-duck session."
AZ cracking down on illegal immigrants, but not illegal employers. Stateline: "...despite the dozens of raids, only two companies have ever been forced to close their doors under Arizona’s three-year-old employee verification law. The punishments in those cases were trivial..."
