MORNING MESSAGE: The Simpson-Bowles Wealth-Friendly Austerity Plan
OurFuture.org's Richard Eskow: "...this time it’s even more heavily skewed toward the financial interests of larger corporations and high-earning individuals ... Their $1-trillion-plus target for 'tax expenditure' elimination can only be reached by targeting employer health plans, home mortgage interest deductions, and other policies that would disproportionately hit the already-beleaguered middle class ... Simpson and Bowles are reiterated their call for benefit cuts to Social Security, using the technique known as 'chained CPI' to cut that program’s already-inadequate cost of living increases by 3 percent for the average retired recipient, and considerably more for the disabled and the very elderly ..."
Sequester Looms
Obama turns up heat on Republicans over sequester. McClatchy: "Obama’s effort [is] punctuated by high-profile treks around the country and backed by a coordinated campaign by labor unions in 28 states and the District of Columbia ... Flanked on a stage at the White House complex by uniformed firefighters and other emergency workers, Obama warned they’d be among those affected by what he called a 'meat cleaver approach' ... Obama will get help this week from outside allies as well: national labor groups, including the AFL-CIO and the National Education Association, will hold more than 100 press conferences, marches and rallies in 23 states to press Congress."
Republicans can't win a fight with Obama over sequester, argues W. Post's The Fix: "Because the sequester is (and is likely to continue to be) very ill-defined in the minds of most Americans, the politics of it will devolve into a popularity contest between the major players. Which gets us to the fact that Obama is at (or close to) his high-water mark in terms of job approval while Congress sits in political reporter/used car salesman territory."
Former RNC chief Jim Gilmore warns Republicans, "You're going to lose this" in W. Post interview.
Sequester will hit jobless aid. CNN: "The long-term unemployed can kiss goodbye almost 10% of their weekly jobless benefits if federal budget cuts go into effect on March 1. Many safety net programs, such as food stamps and Medicaid, are protected from the $85 billion in forced spending cuts, but extended federal unemployment benefits are vulnerable."
Though sequester effects won't all hit immediately. NYT: "White House officials have said that the planned cuts would take $85 billion out of the budget this year. But the actual impact of cuts felt this year might be only about half that much, the nonpartisan Congressional Budget Office estimated..."
Obama's sequester? Boehner touted sequester in 2011. Daily Beast's John Avalon: "It’s a PowerPoint presentation that Boehner’s office developed with the Republican Policy Committee and sent out to the Capitol Hill GOP on July 31, 2011 ... it’s clear as day in the presentation that 'sequestration' was considered a cudgel to guarantee a reduction in federal spending—the conservatives’ necessary condition for not having America default on its obligations."
GOP may want sequester, but not shutdown, reports The Hill: "'Republicans are not going to take a stand on a government shutdown. We’re not going to take a stand on the debt ceiling. We’re going to take a stand on the sequester,' said a Republican senator, who requested anonymity to discuss his party’s strategy. 'The sequester affects programs President Obama likes and we think it’s the best chance of getting his attention on spending,' the lawmaker added."
What Debt Crisis?
What debt crisis? "Projected Medicare Spending Has Fallen by More than $500 Billion" reports CBPP's Paul N. Van de Water: "That’s important to remember because it was in late 2010 — and based on CBO’s August 2010 projections — when Fiscal Commission co-chairs Erskine Bowles and Alan Simpson issued their original budget proposal, calling for slightly more than $300 billion in Medicare spending cuts through 2020."
Jared Bernstein dissects the new Simpson-Bowles plan: "We at CBPP have argued that our first order goal should be to stabilize the debt over the decade, and to do so would take about another $1.5 trillion in deficit reduction ... S/B’s main rationale for another $900 billion in deficit savings seems to be that they want the debt to GDP ratio to hit 70% in ten years as opposed to the 73% that we target in our report ... their framework implies cuts to NDD (non-defense discretionary) and to health programs that go well beyond what I believe is necessary at great risk to these critical functions ... their new plan looks like it tilts a lot more toward spending cuts and away from new revenues, and is thus not nearly as balanced as their original plan."
Austerity does in Bulgarian government. Reuters: "Bulgaria's government resigned on Wednesday after violent nationwide protests against high power prices, joining a long list of European administrations felled by austerity during Europe's debt crisis."
Greece hit with general strike against austerity. AP: "Unions are pressing for the renewal of binding collective labor contracts, instead of individual deals that allow employers greater leverage in defining salary levels. They are also asking the government to support the crumbling labor market, where roughly 1,000 jobs have been lost daily since 2010."
Key cmte chairs still pursuing tax reform. Politico: "Last week, [House Ways and Means Chair Dave] Camp unveiled 11 — yes, 11 — bipartisan working groups aimed at a Tax Code overhaul on subjects ranging from small business to energy. On the other side of the Capitol, [Senate Finance Chair Max] Baucus and other Finance Committee members are working feverishly to develop tax reform option papers or draft legislation that can be circulated in the spring."
Obama Reaches Out On Immigration
Obama calls Graham, McCain and Rubio to talk immigration. The Hill: "The gesture seemed to have paid off, with spokesmen for the Republican senators issuing optimistic statements following the phone calls."
New coalition forms to push immigration reform, hold major rally. NYT: "... a coalition of Latino, Asian, African-American, labor and church groups announced plans to throw their weight into the immigration debate ... But they refrained from providing details about the path to citizenship for illegal immigrants that they favor, saying it would be 'premature' to be specific ... The groups said they would hold a series of street rallies in coming weeks, especially in states of the eight senators in the bipartisan group, leading up to a major rally in Washington on April 10."
Right-wing tears into McCain at AZ town hall. Politico: "One man yelled that only guns would discourage illegal immigration. Another man complained that illegal immigrants should never be able to become citizens or vote. A third man said illegal immigrants were illiterate invaders who wanted free government benefits. McCain urged compassion. 'We are a Judeo-Christian nation,' he said."
