MORNING MESSAGE: Sequestering Hope
OurFuture.org's Robert Borosage: "Moderation in a madhouse is a dubious virtue. A balanced dose of poison may mask, but doesn’t stop the damage. Yet, this is what the president was reduced to in Washington Mad Hatter Budget Debate ... The president embraced the arbitrary call for another $1.5 trillion in deficit reduction through a 'balanced' program of spending cuts, largely from social insurance programs and revenue from closing tax loopholes, 'to finish the job of deficit reduction.' But the deficit is not out of control. As the CBO reports, in 2013, it will be nearly half as much as percentage of GDP as it was in 2009. It is falling faster than anytime since the demobilization after World War II ... The administration should be demanding the repeal of the sequester, insist that the government be funded, and force an end to debt ceiling extortion."
Obama Proposes Sequester Delay
President proposes mix of tax cuts and revenue increases to postpone sequester. McClatchy: "... Obama’s proposal would only postpone the $85 billion in automatic cuts, scheduled to take effect March 1, by a few months until a larger deal could be reached ... he said Congress should approve additional revenue by eliminating tax loopholes and deductions benefiting certain industries or the wealthy, as well as spending reductions ... Republicans began criticizing Obama’s comments even before he uttered them, dismissing them as more partisan rhetoric and the same mix of tax increases and defense cuts he advocated in the past."
Boehner struggles to keep unified front against making concessions to avoid sequester. Politico: "[Rep. Tom] Rooney — a Boehner ally — said on Tuesday that he 'would rather have tax increases than cut our defense' ... Rooney’s buyer’s remorse over Pentagon slashing could have the danger of bleeding over to other GOP lawmakers before the sequester takes effect at the start of March, something that would help Obama — and hurt Boehner."
CBO report shows austerity is already hurting economy. TPM: "'...slow growth reflects a combination of ongoing improvement in underlying economic factors and fiscal tightening that has already begun or is scheduled to occur-including the expiration of a 2 percentage-point cut in the Social Security payroll tax, an increase in tax rates on income above certain thresholds, and scheduled automatic reductions in federal spending. That subdued economic growth will limit businesses’ need to hire additional workers, thereby causing the unemployment rate to stay near 8 percent this year, CBO projects.' ... if you retrain your gaze from the government’s balance sheet to the real economy, you’ll see the impact of that austerity is fewer people working and slower growth."
Business, Labor Seek Immigration Compromise
WH trying to forge agreement on guest workers between business and labor. W. Post: "The Obama administration is trying to broker a deal between business and labor leaders over a controversial guest-worker program for foreigners, resolving a long-standing sticking point that has created political peril for President Obama in the past ... [The U.S. Chamber of Commerce] is pushing for a system in which additional visas would be granted when the U.S. economy was strong and unemployment low; the number would be reduced, sometimes significantly, if the unemployment rate rose ... But the AFL-CIO is skeptical and has proposed creating a commission that would analyze the unemployment rate, regional economic conditions and industrial demands before setting and adjusting visa caps."
Rep. Raul Labrador says House GOP may accept "legalization" but not "path to citizenship." Roll Call quotes: "Anybody who’s clamoring for citizenship, they’re looking for voters and they’re looking for union members. They’re not looking to help the people that are here illegally."
GOP Govs Split On ObamaCare
Some GOP governors accepting ObamaCare, expanding Medicaid. Politico: "Only three Republican governors are pursuing state-run exchanges: Nevada, New Mexico and Idaho. And so far, five Republican governors are pursuing a Medicaid expansion: Nevada, New Mexico, Arizona, Ohio and North Dakota. Almost half of the nation’s governors remain undecided on the Medicaid expansion — including a few big states such as Michigan and Florida. Utah may do a partial implementation — having an exchange that serves small businesses, but letting the feds create one for individuals."
PA Gov. Corbett rejects Medicaid expansion. HuffPost: "By rejecting the Medicaid expansion under President Barack Obama's health care reform law, Corbett becomes the 11th Republican governor to turn down federal funding to provide health benefits to low-income residents."
