Senate Readies Business Tax Break Package
Senate poised to approve package of 50 tax breaks without offsetting cost. NYT: "The Senate on Tuesday shrugged off the deficit concerns that were once an animating force on Capitol Hill, voting 96-3 to take up a package of business tax breaks without offering any way to pay for them. The procedural vote presaged final passage as early as this week and followed the House’s overwhelming approval last week of legislation that would make permanent the research-and-development tax credit for businesses and raise the deficit by $156 billion over the next 10 years ... The White House noted that the House’s expanded and permanent tax credit for research and development would cost more than 15 times as much as renewing and extending unemployment benefits, which Republicans insist must be paid for ... potentially setting up the first veto of consequence of the Obama presidency."
But WH refrains from formally threatening veto of Senate bill. Roll Call: "The White House wants the Senate’s $85 billion tax extenders bill amended so that it does not add to the deficit ... [The] statement, however, does not include a threat to veto the bill — either over the deficit or the lack of an unemployment extension — another priority for the White House ... Because the Senate bill is another temporary patch, it wouldn’t permanently alter the Congressional Budget Office baseline for revenue — a key consideration for the White House and Senate Democrats as both parties eye potential tax reform negotiations after the elections."
Swiss May Break Minimum Wage Record
Swiss electorate to vote Sunday on referendum to raise minimum wage to world-high $25/hour. WSJ: "The proposal, known as the Minimum Wage Initiative, marks the third time in a little more than a year that the Swiss have been asked to weigh in at the ballot box on pay. Last year, voters approved a proposal giving shareholders of publicly traded companies sweeping say over executive compensation. A subsequent vote to cap the salaries of a company's most highly paid executives at 12 times the wages of the lowest-paid employees failed ... proponents of the minimum wage say the relatively high level is needed to ensure workers an adequate standard of living in an expensive country. They also say the economy can shoulder the higher wages because of the modest portion of Switzerland's 4.2 million-person work force that would benefit."
GOP not following Romney's lead on minimum wage. Politico: "Romney, Santorum and Pawlenty say that by refusing to publicly advocate a minimum wage increase, congressional Republicans are ceding the national dialogue to Democrats on an issue that consistently draws majority support in polls ... But virtually no Senate Republican is listening to them. They’ve already blocked one attempt to raise the wage and say they’ll do so again regardless of how former — and potentially future — GOP presidential candidates feel about it."
Tea Party Leader Backs Immigration Reform
Co-founder of Tea Party Express backs immigration reform. Roll Call: "[Sal Russo] the longtime GOP operative and consultant argued that 'conservatives should be at the forefront of reform so the law reflects the just interests of the United States, not misty-eyed ideals of some of the liberal do-gooder reformers.' That means no special pathways to citizenship that allow undocumented immigrants to cut in line, Russo cautioned, but rather some reasonable procedures that require 'the 11 million people who are here illegally obey the law, pay taxes and come out of the shadows.' ... Democrats and pro-immigration overhaul advocates may use Russo’s words as proof that the tides are changing on the issue..."
Obama signals GOP has three months before he will take executive action. The Hill: "President Obama on Tuesday said the House has a 'very narrow window' of two or three months to move forward on immigration reform. 'The closer we get to midterm elections, the harder it will be to get things done,' Obama said during a meeting with more than 40 law enforcement officials Tuesday at the White House."
Dems consider legalization for undocumented who serve in the military. The Hill: "There’s broad support for the idea in the Democratic conference, but there’s also worries that including the controversial idea could derail the defense authorization bill ... The provision would put a Senate bill directly at odds with the House Armed Services Committee, which unanimously approved its version of the defense authorization bill last week. That measure did not include any provisions on immigration."
Breakfast Sides
Obama to highlight infrastructure crisis in NY today. AP: "...Obama is heading to a crumbling bridge outside New York City to try to pressure Congress into giving the nation's infrastructure an infusion of cash ... Obama's New York jaunt forms the apex of a weeklong attempt by the White House to focus the nation's attention on what the administration describes as a looming crisis that, left unfixed, could stifle economic growth and torment the nation's commuters.Transportation Secretary Anthony Foxx kicked off the week on Monday, warning that the Highway Trust Fund, which relies on gasoline taxes that haven't been raised in 20 years, could run dry in August."
Treasury Secretary raises currency manipulation during China visit. NYT: "Treasury Secretary Jacob J. Lew pushed China on Tuesday to let market forces decide its exchange rate ... The Obama administration warned China last month that the renminbi was too weak, and American lawmakers have threatened to designate China a currency manipulator if the government does not loosen its hold on the currency ... The renminbi has fallen about 3 percent this year."
Rubio aims for Social Security and Medicare. The Hill: "Rubio said the age for Social Security should be raised, and that if this was done soon Social Security would remain solvent and people who are 55 or older would not be effected. He did not call for for some Social Security contributions to go toward private accounts, a proposal offered by President George W. Bush's administration. On Medicare, Rubio proposed transitioning to a premium support system, which would give people the choice of staying in traditional medicare or buying private insurance. The government would give seniors a fixed sum to purchase the private insurance. This proposal is similar to what Rep. Paul Ryan (R-Wis.) has included in his House GOP budget."
