MORNING MESSAGE: The President’s Budget: A Misguided Mission Statement
OurFuture.org's Robert Borosage: "The president’s major purpose is not to address mass unemployment, not to build a new foundation for the economy, not to revive the middle class or redress Gilded Age inequality. The president’s overriding priority is to cut a deal – and a deal that continues to impose austerity on an already faltering recovery ... It assumes the growth we have is adequate. It miseducates Americans that the most important goal is to reduce projected deficits in a 'balanced' way. And it shows that a Democratic president is even willing to cut Social Security benefits – the pledge we make one to another – in order to get that deal."
Full Budget Released
WH releases budget overview: "580 billion in additional revenue ... that closes tax loopholes and reduces tax benefits for those who need them least; $400 billion in health savings that build on the health reform law and strengthen Medicare; $200 billion in savings from other mandatory programs, such as reductions to farm subsidies and reforms to federal retirement benefits; $200 billion in additional discretionary savings, with equal amounts from defense and nondefense programs; $230 billion in savings from using a chained measure of inflation for cost-of-living adjustments throughout the Budget, with protections for the most vulnerable; $210 billion in savings from reduced interest payments on the debt; and $50 billion for immediate infrastructure investments..."
Obama drops net revenue from corporate tax reform. Politico: "The budget move is a concession of sorts by Obama, who released a framework for corporate tax reform last year that would have raised $250 billion over 10 years ... He told Republicans in closed-door meetings on Capitol Hill last month that he could back a revenue-neutral approach to corporate tax reform. Still, his budget provides plenty of red-meat tax provisions for liberals, including a proposal to limit tax-advantaged contributions to IRAs to $3 million."
GOP Warms, Dems Cool To Chained CPI
House Minority Whip Steny Hoyer cool to Chained CPI. Politico: "While Hoyer didn’t reject the plan to rewrite formulas governing cost-of-living adjustments in Social Security, he didn’t embrace it, either. That puts him in line with Minority Leader Nancy Pelosi (D-Calif.), who has described herself as 'agnostic' on the matter and has set up a debate between Robert Greenstein of the Center for Budget and Policy Priorities, a supporter of chained CPI, and Damon Silvers of the AFL-CIO, an opponent, where they will make their respective cases to the House Democratic Caucus over light snacks and sodas at a Thursday afternoon meeting..."
Range of Senate reaction to Chained CPI. Politico: "Senate Republicans voiced optimism ... 'It’s good that [the] president is starting to throw things on the table,' [Sen. John] Boozman said ... 'It’s a little step in the right direction,' [said] Sen. Mike Johanns ... Democrats, however, were mostly mum ...'We did not include it in our budget, and I will have to wait and see the details of how he’s written it,' [Senate Budget Chair Patty Murray] said ... Senate Majority Leader Harry Reid also was unenthusiastic..."
"Obama may trade one flawed Social Security formula for another" reports McClatchy: "Both the current and proposed gauges of inflation measure changes in prices for products and services purchased by the general population. As a subset of the general population, however, the elderly consume health care and a number of other goods and services very differently than the rest of us ... [Labor Dept.] statisticians developed an experimental model that tried to create a consumer price index for the elderly ... The effort remains a work in progress ..."
2 million petition signatures delivered WH opposing Chained CPI. UPI: "'We are not going to balance the budget on the backs of the elderly, disabled vets, the sick, women or children,' Sen. Bernie Sanders, Ind-Vt., told those delivering the petition."
Immigration Deal Close, But On Slowed Track
Senate immigration deal could be announced as early as tomorrow. Politico: "The Senate’s immigration Gang of Eight plans to announce a deal within a week but a committee markup is not expected until at least the week of May 6, providing a long period for debate and changes ... The schedule outlined by the aides is meant to satisfy Sen. Marco Rubio (R-Fla.), who has said repeatedly that he wants a full debate and amendment process, to maximize the chances that the final vote is an overwhelming majority."
House negotiators farther behind: "...Republicans are now privately ruling out that [AFL-CIO/Chamber of Commerce] compromise, saying it is too friendly to labor ... Republicans are also mulling over hefty restrictions on companies that hire higher-skilled workers ... The House group initially planned to announce its immigration proposal this week, but several unresolved issues have delayed it."
