MORNING MESSAGE: The Means-Testing Scam
OurFuture.org's Richard Eskow: "Conservatives are pushing the idea for three reasons: The first is to convince people that Social Security isn't really a social insurance program, or that they've earned their benefits. They'd rather have us think that it's a generous government 'entitlement' we don't deserve. The second is to add another costly bureaucratic layer onto the program, which as of this writing is one of the most cost-efficient administrative systems in government.
And the third reason is a plain old bait and switch: If you study the 'means testing' proposals it quickly becomes clear they're not targeting 'millionaires' at all. The Concord Coalition, a right-wing group that first pushed this idea, thinks that the 'means-tested' cuts should begin with people who have earned more than twenty thousand dollars per year during their working lives. Twenty thousand dollars."
After Killing Buffett Rule, GOP Passes Tax Cut For Wealthy
House passes yet another tax cut for the wealthy. W. Post: "The Republican-controlled House voted Thursday to extend new tax cuts to businesses with fewer than 500 employees ... Senate Democratic leaders blasted the House proposal as a win for well-heeled celebrities, including Donald Trump and Oprah Winfrey, who operate companies with fewer than 500 employees."
Some conservatives criticize tax cut as a "gimmick." TPM: "The Wall Street Journal editorial board called the bill a 'gimmick' and decreed the 500-employee cutoff as 'arbitrary and political — a ploy to let Republicans say they aren’t cutting taxes for big business.' Former Reagan policy adviser Bruce Bartlett, in a column that Democrats have been gleefully quoting all week, wrote: 'The Republican tax plan will do nothing whatsoever to increase employment. It is nothing more than an election year give-away to a favored Republican constituency and should not be taken seriously.'"
Senate Dems debate when to hold vote on Bush tax cuts. Bloomberg: "Senator Mark Begich, an Alaska Democrat, said the Senate should wait to vote on the tax cuts until the lame-duck session after the election, when some defeated or retiring members will still be in office and automatic budget cuts will be set to take effect as well ... Senator Ben Cardin, a Maryland Democrat, said Democrats shouldn’t wait for six months to take up the issue when they have a chance to lead now."
Former Citigroup Chair: Blame Glass-Steagall Repeal
Former Citigroup board chairman Richard Parsons blames Glass-Steagall repeal for financial crisis. Bloomberg quotes: "To some extent what we saw in the 2007, 2008 crash was the result of the throwing off of Glass-Steagall ... One of the things we faced when we tried to find new leadership for Citi, there wasn’t anybody who had deep employment experience in both sides of what theretofore had been separate houses."
CFPB investigating overdraft policies. Bloomberg: "The agency, which will decide by the end of the year whether to write new rules, is scrutinizing nine banks ... The inquiry focuses on how financial institutions persuade customers to enroll in what they call overdraft protection programs."
Rubio Floats DREAM Act Compromise
GOP Sen. Marco Rubio proposes DREAM Act compromise. NYT: "Republican strategists fear Mr. Obama’s advantage — hovering around two-thirds of the Hispanic vote — could kill Republican chances in crucial states like Colorado and Nevada, swing Virginia to the Democratic column and keep the president’s hopes alive in Florida ... Rubio said he favored giving nonimmigrant visas to young illegal immigrants brought into the country by a certain date, who have graduated from high school and have no criminal record ... [But] details of a Rubio version remain unresolved."
Rubio move squeezes Romney. Politico: "...he may have to decide whether to back an immigration plan rolled out by one of the party’s rising Hispanic stars, or stick to the strident anti-illegal immigrant positions he staked out during the Republican primary."
Breakfast Sides
Romney economic message in Ohio conflicts with data. LAT: "...the Romney campaign's message has collided with that of Republican leaders in key swing states. For example, Ohio's Republican Gov. John Kasich ... has frequently touted Ohio's improving jobs picture. When asked about the steady job gains in Ohio — the state's unemployment rate has fallen from 9.1% in February 2009 (shortly after Obama took office) to 7.6% in February 2012 — Romney advisor Eric Fehrnstrom was unyielding ..."
WI Gov. Scott Walker's tax attack on Illinois backfires. Bloomberg: "[Gov. Walker] traveled over the Illinois line to argue that the tax increase backed by his Democratic counterpart Pat Quinn is killing jobs ... [But] Illinois ranked third while Wisconsin placed 42nd in the most recent Bloomberg Economic Evaluation of States index, which includes personal income, tax revenue and employment. Illinois gained 32,000 jobs in the 12 months ending in February ... Wisconsin, where Walker promised to create 250,000 jobs with the help of business-tax breaks, lost 16,900."
Corporate Super PACs opposing Tea Party challengers in GOP primaries. HuffPost: "Along with the help of the American Action Network, two super PACs have launched in Indiana to back [incumbent Sen. Dick] Lugar ... Down in Texas, the two super PACs supporting Lt. Gov. Dewhurst have raised a combined $1 million to beat back the insurgent [Ted] Cruz ... The flow of money released by the 2010 Citizens United and SpeechNow.org decisions has encouraged independent GOP establishment-oriented groups and donors to get involved in primary contests that had previously been dominated by the more radical Club for Growth and FreedomWorks."
President prepares summer battle to keep student loan interest rates low. NYT: "If Congress fails to act, the interest rate on the loans, which are taken out by nearly eight million students each year, will double on July 1, to 6.8 percent. ... The low interest rate stemmed from the 2007 College Cost Reduction and Access Act, which reduced interest rates on subsidized Stafford loans ... with the proviso that the rates would revert to 6.8 percent this July ... When the 2007 law was passed, 77 Republicans — most of whom are still in Congress — voted for it. But in the current climate of fractious partisanship, new legislation introduced by Representative Joe Courtney to extend the lower rate has 127 co-sponsors, all of them Democrats."
