Declining Deficit Quiets Grand Bargain Talk
Shrinking deficit reduces pressure for "grand bargain." WSJ: "...thanks to the improved fiscal picture, analysts at Goldman Sachs Group Inc. and other firms believe the Treasury Department can maneuver until September or October without congressional help ... the evaporation of the summer debt-ceiling deadline has removed any sense of urgency. Neither party now sees incentives to offer concessions and feels no pressure to act soon, several lawmakers said."
The deficit is "melting away" from a gusher of tax revenue. Daily Beast's Daniel Gross: "Payroll taxes were raised substantially on January 1, 2013, from 4.2 percent of the first $133,700 to 6.2 percent. And higher taxes on the investment and regular income of very high earners went into effect as well. What’s more, in anticipation of the higher taxes, companies in 2012 shoveled dividends and bonuses out the door in late 2012. In the first few months of 2013, especially in April, people had to pay tax on all that income ... the bailed-out government sponsored mortgage companies Fannie and Freddie Mac have become cash cows. Owned by the taxpayers, they are forced to turn over their profits to the government each quarter. And with the housing market recovering, they’re doing quite well ..."
No sequester relief for low-income families. Bloomberg: " At least $80 billion in reductions under a process known as sequestration are curtailing funding for AIDS drugs, help for returning military troops and projects for low-income families who don’t have clout in Congress. Although lawmakers last month approved an emergency measure to bring an end to air-traffic controller furloughs that sparked flight delays, there is little reason to expect that other cuts will be reversed ..."
Immigration Bill Withstands First Conservative Assault
"Immigration bill survives first day of debate in Senate committee" reports LAT: "After eight hours of debate, the bipartisan Senate immigration bill emerged mostly intact Thursday, despite Republican-led efforts to make substantial alterations ... By day's end, senators had dispatched with 32 of 300 proposed amendments."
More from W. Post: "...the committee adopted 21 amendments, including eight offered by Republicans. Among them was a measure from Sen. Charles E. Grassley (R-Iowa), one of the fiercest critics of the bill, that expanded a requirement that the government apprehend 90 percent of people attempting to cross the border illegally from just high-risk sectors to the entire Southwest border. Democrats, and two Republicans on the committee who helped negotiate the legislation, hailed the results as evidence that they were committed to a bipartisan process..."
Obama Touts Wage Hike
Obama pushes minimum wage increase at Texas stop. The Hill: "In a 20-minute speech at a technology school outside of Austin, Texas, Obama — who has been focused on the gun control and immigration debates in recent days — promoted his idea of raising the minimum wage to $9 an hour, as well as increasing spending on education, worker training programs and manufacturing-innovation centers."
Wave of fast-food worker strikes comes to Detroit. W. Post: "The strike in Detroit ... follows similar labor actions that hobbled fast-food restaurants and prominent retailers in New York, Chicago and, this week, St. Louis. In these cities, the unusual coalition of workers, who traditionally have not been unionized, took to the streets to complain about low pay and what they call often-shabby treatment by their employers."
Breakfast Sides
Former WH aide Nancy Ann-DeParle defends ObamaCare implementation in W. Post oped: "Large-scale change is never easy. But recent health-care reforms have outperformed their critics. When the Affordable Care Act does the same, Obamacare will have completed its journey from a pitched partisan battle to a national point of pride."
Republicans block committee vote on EPA nominee. W. Post: "All eight Republican members of the Committee on Environment and Public Works did not appear for a vote that would likely have moved nominee Gina McCarthy’s selection to the full Senate ... Under Senate rules, a committee can vote on a nominee if 10 members constituting a majority confirm that they will be present and vote in the affirmative, a committee spokesman said. Democrats hold a 10-to-8 majority on the panel. A vote will be rescheduled soon with all 10 Democrats present."
