Each morning, Bill Scher and Terrance Heath serve up what progressives need to effect change on the kitchen-table issues families face: jobs, health care, green energy, financial reform, affordable education and retirement security.
MORNING MESSAGE: Democratic "Super Committee" Appointments Must Protect Vital Programs
OurFuture.org's Roger Hickey: "The six Democratic designees are likely to be the only members who can make sure this new committee pursues the mandate of the American Majority who want the politicians to deal with deficits without worsening the fragile economic recovery and without cutting benefits for Americans who depend on Social Security, Medicare and Medicaid. Republican leaders have pledged to appoint only Senate and House representatives who are solidly opposed to tax increases of any kind What progressives want is clear: We want revenue increases at least equal to spending cuts; we want Members of Congress to defend Medicare, Medicaid and Social Security, and we want action to spur economic growth and jobs."
Battle Lines Drawn Over Super Committee Appointments
White House implies it wants the "grand bargain" from the "super committee." McClatchy: "Obama doesn't have a say in the committee's makeup, but White House Press Secretary Jay Carney said the president would 'make his opinion known' that the committee needed to consider tax revenue as well as spending cuts and changes to entitlement programs such as Medicare."
But party leaders suggest appointments that would produce deadlock. Bloomberg: "Republican leaders at the Capitol are pledging to appoint members who oppose tax increases. Their Democratic counterparts make clear they will name lawmakers who’ll fight to raise new revenue and protect entitlement benefits Republicans say should be targeted."
Geithner touts "super committee", promotes additional stimulus, in W. Post oped: "...the prospects for compromise on broader and deeper reforms are better than they have been in years. ... by locking in long-term savings, Congress will have more room in the fall to pass additional short-term measures to strengthen the economy — such as extending the payroll tax cut, which provides an average of a thousand dollars to the after-tax incomes of working Americans; extending unemployment benefits; and financing infrastructure investments."
Erskine Bowles and Alan Simspon seek to influence "super committee" in NYT oped: "...the new committee must be bipartisan and bold. It must resist the temptation to simply recommend the bare minimum necessary to avert the next crisis instead of truly dealing with our long-term fiscal problem."
LAT explores what the deal means for Medicare: "Washington policymakers demanded more savings from hospitals, doctors and other medical providers in the debt deal ... Advocates for the elderly say the Medicare cuts, though relatively small, could force medical providers to scale back services, or even stop serving them entirely ... The debt compromise will not impose any immediate cuts in Medicare spending. But if Congress does not come up with a plan by the end of the year to reduce the deficit by $1.5 trillion over the next decade, the plan requires the federal government to impose a 2% across-the-board reduction in payments to Medicare providers starting in 2013."
Credit agencies ease off downgrade threat. Bloomberg: "Moody’s Investors Service and Fitch Ratings affirmed their AAA credit ratings for the U.S. while warning that downgrades were possible if lawmakers fail to enact debt reduction measures and the economy weakens."
Sen. Min. Leader McConnell brags about taking the economy "hostage". W. Post quotes: "I think some of our members may have thought the default issue was a hostage you might take a chance at shooting. Most of us didn’t think that. What we did learn is this — it’s a hostage that’s worth ransoming."
Dems Prepare For Jobs Push
President to hit the road to drum up support for jobs agenda. NYT: "...Mr. Obama will embark on a bus tour of the Midwest the week of Aug. 15 ... Mr. Obama shifted quickly to pushing Congress to adopt a raft of familiar measures to stimulate the flagging economy, including extending the payroll tax suspension for workers, beefing up benefits for the unemployed, approving trade agreements and investing in infrastructure projects."
Congressional Dems ready green jobs legislation. The Hill: "Senate Majority Leader Harry Reid (D-Nev.) said Tuesday that energy will be part of the agenda but declined to offer specifics ... House Minority Whip Steny Hoyer (D-Md.) said green energy is a key part of the 'Make it in America' agenda, which Democrats rolled out months ago and now call a central focus ...
Robert Reich argues the deal prevents President from enacting jobs measures: "...he wants to extend tax cuts for middle class families and make sure the jobless get unemployment benefits. Fine, but the new deal won't let him [without] enough votes to override the budget caps that now restrict spending ... The only way he could create an infrastructure bank without sweetening the pot would be by privatizing all the new infrastructure. That means toll roads and toll bridges, user-fee airports, and entry fees ... such a privatized infrastructure would have the same effect as a tax increase ... That means no boost to the economy."
GOP obstruction leaves 4,000 FAA workers without pay, shutdown expected to go through August. NYT: "The partial agency shutdown, which began on July 23 and is likely to continue at least through Labor Day, has also idled tens of thousands of construction workers on airport projects around the country. Dozens of airport inspectors have been asked by the F.A.A. to work without pay and to charge their government travel expenses to their personal credit cards to keep airports operating safely. Air traffic controllers and airplane inspectors, who are paid with separate accounts, have continued to work, but workers who oversee research on aviation systems, grants for airports and facilities and operations equipment have been furloughed. If the stalemate continues through Labor Day, the government could lose roughly $1 billion in tax revenues on airline ticket sales."
GOP Blocks Chance For CFPB Recess Appointment
Republicans refuse to formally recess, prevent recess appointments. Politico: "That means Obama won’t be able to seat his pick to lead the new Consumer Financial Protection Bureau, former Ohio Attorney General Richard Cordray, whose nomination Republicans have vowed to oppose until Obama makes changes watering down the agency’s authority."
Bank of America seeking separate foreclosure fraud settlement with states. Huffington Post: " Federal and state prosecutors are in advanced negotiations with Bank of America in pursuit of a settlement that would forgive the bank for a broad range of past mortgage abuses in exchange for fines that would finance a significantly expanded relief program for struggling homeowners ... Justice, along with a small band of state legal officers, is pursuing an agreement that would have the bank forgive what participants described as a significant amount of mortgage principal owed by distressed borrowers in exchange for receiving an effective grant of immunity from government prosecution related to alleged mortgage and foreclosure wrongdoing."
Bloomberg adds: "Bank of America, in its separate negotiations, has offered to fund more principal writedowns than what is being discussed in the larger settlement talks ... Other attorneys general were unaware of the separate talks with Bank of America..."
