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Economy

Congress Should Ask The Administration To Put Cuts In Tax Expenditures On The Table

Our guest blogger is Sima Gandhi, a Senior Policy Analyst at the Center for American Progress Action Fund.

The House Budget Committee will hold a hearing tomorrow on a White House proposal to give the President authority to force reconsideration of items in spending bills that he concludes are not a good use of public resources. Under this rescission measure, the President could send recommended spending cuts back to Congress for an up-or-down vote.

Unfortunately, the Reduce Unnecessary Wasteful Spending Act of 2010 excludes from the Presidential scalpel one of the largest categories of government spending: tax expenditures, or more simply, government subsidies that are doled out through the tax code. The failure to include tax expenditures in the President’s spending-reduction measure leaves more than $1 trillion in spending off the table.

Lawmakers should press administration officials at tomorrow’s hearing about this regrettable omission. White House Director of the Office of Management and Budget Peter Orszag has said tax expenditures were considered for inclusion in the bill, even though the White House ultimately left them out. He indicated that the Obama Administration is “interested in exploring whether there is any way to incorporate tax entitlements and, frankly, all mandatory spending in a way that is constitutional and does not create procedural problems with the provisions.”

Unless tax expenditures are included, the Reduce Unnecessary Wasteful Spending Act would allow legislation with large swaths of wasteful spending to pass the President’s desk without a second look. Consider the current extenders bill that is before the Senate, which contains more than $30 billion in tax expenditures. Among these are a tax subsidy for NASCAR racetrack owners that will cost nearly $50 million and a $100 million tax subsidy for oil companies.

Congressmen should follow up this week by asking Orszag’s acting deputy director, Joseph Liebman, who is scheduled to testify, to identify the steps the administration has taken in this exploration. And importantly, to outline the steps the administration will take in the future.

The stakes are high. Subsidies provided through tax expenditures will amount to nearly 25 percent of total government spending. And this amount is growing. There were 133 tax expenditure items in 2000. The most recent budget listed 173 items.

Climate Progress

BP Chairman: “We care about the small people.”

GOP Study Chairman: We don’t care about anybody but Big Oil

Who is more out of touch?  Is it the Republican Study Committee, whose Chair says that the $20 billion escrow fund that Obama got BP to establish is nothing more than a “Chicago-Style Political Shakedown“?

Or is it BP Chair Carl-Henric Svanberg, who uttered these unforgettable words on tape after the White House meeting today:

Read more

Politics

Thune Says GOP Now Wants To Make Sure Spending For Iraq And Afghanistan Wars Is Offset

Since the Republicans lost control of Congress and the White House, they have conveniently decided it’s time to rein in spending after helping President Bush bequeath the current administration with a more than $1 trillion deficit.

Part of that campaign has been to target the once sacrosanct emergency war funding. Republicans made a fuss last year because the war funding bill contained money for the IMF. Last month, Sen. Tom Coburn (R-OK) said war funding needs to be paid for. Today on ABC’s Top Line, Sen. John Thune (R-ND) indicated that most Republicans are starting to hold this view:

THUNE: Republicans are increasingly, I think, dug in on the issue of making sure that new spending is offset. … Frankly, I think that there is even a growing consensus among Republicans that we need to start budgeting for this, we need to start figuring out how to pay for it. And I think that’s kind of the majority view among Republicans now.

Watch it:

The Huffington Post’s Ryan Grim has noted the obvious hypocrisy here:

The indecision on the vote from Coburn’s colleagues is a stark contrast from the wars’ early years, when President Bush’s war supplementals flew through GOP-controlled Congresses and any opposition was portrayed as unpatriotic. Cries of “Support The Troops!” met any lawmaker who questioned the direction or the purpose of either the Iraq or Afghanistan war.

Indeed, during the spend-with-no-consequence Bush administration days, Thune praised Congress whenever it passed non-offset emergency war funding. “This critical supplemental funding gives our troops and diplomats the important tools they need to spread freedom abroad and strengthen our security at home,” Thune said in 2005. Thune even cheered an emergency supplemental with unrelated funding for drought assistance in 2007.

On Top Line, Thune seemed to recognize the contradiction and justified the previous GOP support for emergency war funding. “Republicans in the past have viewed Iraq and Afghanistan and the war effort as something that truly is an emergency,” he said, adding, “although it’s hard to say now that we don’t know what these costs are gonna be.”

Politics

BP keeps cleanup workers getting sick from pollutants out of its records, claims only two such incidents.

bpworkerBP attempted to deny and conceal links of its oil spill to illnesses, after initial reports of oil cleanup workers who were getting sick due to extended exposure to oil and dispersants. Fishermen have complained of “severe headaches, dizziness, nausea and difficulty breathing” after working to clean up the spill, and one said BP did not provide protective equipment. But BP CEO Tony Hayward brushed off illness concerns, suggesting “food poisoning” might have been the culprit. Now, McClatchy reports on a wide disparity in government and BP records on illness complaints:

Although Louisiana state records indicate that at least 74 oil spill workers have complained of becoming sick after exposure to pollutants, BP’s own official recordkeeping notes just two such incidents.

BP reported a wide range of worker injuries in the period from April 22 to June 10 , from the minor — a sprained ankle, a pinched finger and a cat bite — to the more serious — three instances of workers being struck by lightning and one worker who lost part of a finger.

The gap between the state data and BP’s… raises questions about whether the federal government can rely on BP to determine whether conditions remain safe for the more than 27,000 workers now engaged in cleaning up the worst oil spill in the nation’s history.

As other workers have reported flu-like symptoms caused by Toxicant-Induced Loss of Tolerance, which causes patients to “lose tolerance to household products, medication, or even food after being exposed to chemicals like burning oil, toxic fumes, or dispersants from the spill.” In fact, BP accounts for “97 percent of ‘egregious willful’ violations given by the Occupational Safety and Health Administration.”

Charlie Eisenhood

Health

Maine Says It Will Save Millions Of Dollars Under Health Reform

snowecollinsIn what could be a blow to ‘no’ votes Sens. Olympia Snowe and Susan Collins, Maine has released a report showing that the health care law “will save the state tens of millions of dollars a year after it is fully implemented in 2014″:

“This is a far-reaching projection and it assumes what we know today,” Department of Health and Human Services Commissioner Brenda Harvey said. “There are also some policy decisions that will need to be made that will impact these estimates.”

If the state adopts all of the changes assumed in the analysis, which was conducted by DHHS, the net savings to the state in 2014 is an estimated $31.8 million.

Contrary to the complains of many states, Maine — which has already expanded coverage for adults to at least 100 percent of the FPL prior to enactment of health reform — will receive transitional federal funding to help pay for some of the adults that it’s currently financing with state dollars.

“Under the new law, the federal government will pay 98 percent of the cost,” the state notes. “Expanding Medicaid to cover all childless adults under the new federal health law increases the state’s match rate for those Mainers and would save the state over the current program that caps enrollment. The estimated savings in 2014 are $14.6 million.”

Maine will benefit more than other states from reform because it’s gone further in meeting the goals of the bill and expanding coverage to its residents, Snowe and Collins however, seem to have other priorities.

Justice

Obama To Nominate Marine Commandant Who Is Reportedly More Willing To Repeal DADT

Gen. James Amos

Gen. James Amos

Gen. James Conway — the Commandant of the U. S. Marine Corps — has been the most outspoken military opponent of permitting gay men and women to serve openly in the U.S. military, going so far as to suggest that straight marines should not live alongside gay servicemembers. But with Conway’s term coming to end, Defense Secretary Robert Gates “has recommended that Gen. James Amos will be the next commandant of the Marine Corps” — a man who is presumably more willing to carry out administration policy and implement new regulations repealing Don’t Ask, Don’t Tell (DADT).

While this consideration is not publicly acknowledged — the Washington Post notes that Gates wanted to shake things up and select “someone who would help the Marine Corps chart a course beyond the current wars“” — his more supportive stance towards ending the DADT likely weighed on the decision:

Sources have informed LezGetReal that General Amos’ position on the repeal of Don’t Ask, Don’t Tell mirrors that of Admiral Michael Mullen, the current Chairman of the Joint Chiefs of Staff. This means that General Amos believes that the study should be finished before the law is repealed, and the best way to move forward on repeal can be determined. General Amos is said to be more open to change than General Conway has been, or either General Dunford or General James Mattis, who were also considered for this job. Additionally, Generals Dunford and Mattis are said to be far less willing to consider a repeal of DADT and far closer to General Conway’s views on the issue of lesbians and gays serving openly.

If Amos is willing to think not only beyond current wars but also conservative social norms — which is where Conway clearly fell short — then his nomination sounds like a good thing for the institution as a whole and particularly its closeted gay members. The success of repeal will depend heavily on how the military implements regulations overturning the ban and Amos probably be willing to explore more inclusive changes than his immediate predecessor.

The other point worth reiterating is that one’s opposition to repealing DADT has more to do with general attitudes about social policy than any kind of concerns about the future of the military. After all, if Gates is willing to nominate someone he hopes will shake up the Marine Corps and secure its future, his selection of Amos — if we are too believe the rumors about his more liberal DAD views — suggests that that is very much compatible with open service.

Politics

Rep. Djou Distances Himself From Tea Party Support, Momentarily Forgets His Main Tea Party Backer

On Monday afternoon, ThinkProgress sat down with newly elected Rep. Charles Djou (R-HI) to discuss his views on policy and the state of the Republican Party. Djou won his seat with the help of national tea party groups, including the Tax Day Tea Party and American Liberty Alliance. Eric Odom, a the national tea party organizer profiled by ThinkProgress in February, and his cohorts even traveled to Hawaii to help get out the vote while running ads through his Liberty First PAC in support of Djou. In the interview with ThinkProgress however, Djou would not call himself a tea party candidate, and momentarily forgot the name of Eric Odom. Although Djou said he would not “turn away” tea party support, he made sure to tell us that the tea party made a very small impact in his race:

TP: Would you consider yourself a tea party candidate?

DJOU: Would I consider myself a tea party candidate? You know, you’d have to ask the tea party that instead of me. You know the tea party, even though it exists in Hawaii, isn’t really that big and really isn’t as big as perhaps in other U.S. states. I guess my description of the tea party is similar that of President Obama’s description in that they have very legitimate concerns, legitimate concerns that I share.

TP: What about Eric Odom? He came to Hawaii to help you be elected to Congress and he’s a national tea party organizer, long time Republican activist. Do you think your victory owes a little bit to his involvement in your race, or not at all?

DJOU: Uh, heh, first of all, you mention the name Eric Odom. I had to pause and think, who is that? You know I’m happy for a lot of support I got from a lot of entities from around this country in my race, but my race ultimately was won by the hard work of volunteers on the ground in Hawaii by Hawaii residents. I mean if you look back in term of the number of volunteers, the amount of money I raised from the tea party, I would be very surprised if it was more than one or two percentage points in terms of both volunteer time as well as financial support. With all that said here, I don’t want to minimize here and say I don’t want tea party support or I’m going to turn it away. I did not, I will not. But I mean, the tea party had as much influence as any other interest group that gave one percent or two percent of volunteer time and financial support to my campaign, and you can probably list three dozen organizations that fit in that mold.

Watch it:

After his special election in a traditionally progressive state, Sen. Scott Brown (R-MA) similarly distanced himself from the tea parties. Like Djou, Brown relied on tea party enthusiasm, money, and grassroots activism for his campaign victory. But after being sworn into office, Brown has not spoken at tea party rallies, called himself a tea party candidate, and even declined an invitation at a major Boston tea party rally.

Politics

BP: ‘We care about the small people.’

After meeting with President Barack Obama, BP Chairman Carl-Henric Svanberg told the world that BP cares about the “small people,” contrary to popular belief about “greedy companies.” Under the command of the president, BP executives agreed today to establish a $20 billion escrow fund for the damages from its growing Gulf of Mexico disaster, and a $100 million fund for wages lost by oil industry workers idled by the deepwater-drilling moratorium. The president also cautioned the BP executives to “keep in mind” the families in the Gulf devastated by this catastrophe. After the meeting, Svanberg told reporters that he wanted to dispel the myths that “large oil companies are greedy companies or don’t care”:

I hear comments sometimes that large oil companies are greedy companies or don’t care, but that is not the case with BP. We care about the small people.

Watch it:

Last month, Svanberg had a different depiction of what BP cares about. “The US is a big and important market for BP,” Svanberg told the Financial Times, “and BP is also a big and important company for the US, with its contribution to drilling and oil and gas production.”

Yglesias

Endgame

Cut me to ribbons:

— Environmentalists liked Obama’s speech better than progressive pundits did.

— This is totally outrageous, and I don’t see how it can possibly stand.

— BP caving on the escrow fund thing is a bigger deal than people seem to realize.

— Robot domination comes one step closer.

— Oil executives plead to congress for corporate welfare.

Got the new Gaslight Anthem today and have only listened to three and a half songs, but “American Slang” is good.

Health

Did Health Reform Death Panel The AMA?

obamaAMAIf there are any death panels in health care reform, then they may have very well killed the American Medical Association, which suffered another loss in the Senate this afternoon after Majority Leader Harry Reid (D-NV) failed to secure enough votes to patch the 21% pay cut coming to physicians participating in the Medicare program.

In 2009, the AMA lent its support to the health law after receiving assurances that Congress would scrap the existing SGR formula to avoid future cuts, but now, as Democrats continue to look for 60 votes, Republicans are letting it be known that there is a price to pay for bucking the grand old party:

– SEN. TOM COBURN (R-OK): “I don’t blame the AMA for being upset, but they kind of walked into this themselves by embracing, and then not embracing, and then embracing” the reform bill, he said. “It didn’t have an SGR fix and it didn’t have liability fix. The two goals that every doctor that’s associated with AMA wants—they want payment reform and they want liability reform—they got none of it.”

– SEN. JOHN CORNYN (R-TX): “For some inexplicable reason, I think the AMA has kind of burned all its bridges. It just makes absolutely no sense to me.”

– SEN. JOHN THUNE (R-SD): “That’s why a lot of Republicans right now are looking at this issue and saying: ‘Yeah, we want to help you. We want to fix this. We thought it should have been fixed a long time ago.’ But [they] are not particularly sympathetic to their sense of urgency about getting a 10-year fix in place given the fact that it should have been done in the health care debate.”

The AMA’s trouble counting Republican votes began as early as last year, when Senate Majority Leader Harry Reid (D-NV) attempted to pass a $245 billion 10-year doc fix. The legislation wasn’t offset and failed to garner a single Republican vote, despite AMA assurances to the contrary. “We were told by the American Medical Association and others, that we would get help by the Republicans to take care of senior citizens so they could have doctors to take care of them,” Reid lamented. The vote represented a defeat for the group, which had spent some $2 million dollars lobbying for the SGR in the weeks before the vote.

Doctors — the organization’s supposed bread and butter — are also turning their backs on the organization. While it theoretically represents all physicians, the AMA’s current paying membership comprises somewhere between 15 to 18% of doctors, declining almost 3.4% in 2009 to 228,000 — itself about a 2% decline from the 241,000 reported for 2007. (The 2007 figure is notable in that it marked the first time in seven years that membership increased, about a 1% jump. But that boost was achieved by giving away 8,577 free memberships for first-year residents who had been student members the previous year.)” Consequently, the dues accounted for just 16% of AMA revenue. The rest of its funds come from things like billing codes, CMS payment negotiations, and other non-membership-related operations.

Now, the group is on record as supporting an unpopular health care law and remains powerless in preventing the pending reimbursement cuts. Its hemorrhaging membership problem and its political decline will create an opportunity for other physicians’ group to fill the leadership void. Whether they’ll be more successful in completely reforming SGR and guiding the country’s transition through health reform however, is a different question altogether.

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