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Economy

Chamber Avoids Questions About Foreign Funding, Hosts Event With Its Foreign Bank Members Tomorrow

BFHTomorrow, the U.S. Chamber of Commerce plans to hold a reception for the Bahrain Banks Association, a trade group for banks operating in the Kingdom of Bahrain. The Bahrain Minister of Finance, Central Bank, and Bahrain Ambassador will be attending, and the event listing invites “banks and investment firms” to attend.

The Bahrain Banks Association includes many foreign investment firms that, as ThinkProgress reported this week, have been sending funds to the Chamber. The funds are deposited in the same 501(c)(6) account that the Chamber is using to run an unprecedented $75 million dollar attack campaign, mostly against Democrats like Jack Conway in Kentucky and Robin Carnahan in Missouri. ThinkProgress has documented at least $300,000 in foreign money to the Chamber from two countries alone. Below are a list of Bahrain Bank Association members which the Chamber has indicated are dues-paying members:

Bahrain Financial Harbour Holding Company (based in Bahrain)
ICICI Bank (based in India)
TAIB Bank (based in Bahrain)
State Bank of India (state-owned and based in India)

The event occurs as the Chamber continues to refuse to answer simple questions about the legality of its fundraising operation for its political attack campaign. Foreign businesses and foreign agents are prohibited by law from contributing to any American political campaign expenditure. So far, the Chamber denies any inappropriate conduct, but has failed to produce any documentation that it is segregating its foreign dues from its American money. According to Graham Gillette, a participant at an Iowa event attended by Chamber CEO Tom Donohue today, Donohue replied to the controversy by simply attacking ThinkProgress as a “blog supported by George Soros.”

As ThinkProgress reported, the Chamber has internal fundraising departments called “Business Councils” — like the U.S.-Bahrain Business Council and the U.S.-India Business Council — which are run by Chamber development officers. Promotions to join the Chamber have included promises that foreign firms obtain “access to the US Chamber of Commerce and everything that it does,” noting that the Chamber is “enormous within the US.” ThinkProgress has reported that the application to join the Business Councils welcome foreign-owned entities, and the application encourages businesses to wire or send their dues to the same general 501(c)(6) the Chamber is currently using for its political campaign advertisements all over the country. See below for a link and screen shot to one such application:

application

To be clear, there is nothing wrong with the Chamber hosting an event with Bahrain banks, or any foreign-owned banks. The problem arises if the Chamber is using foreign funding to help launch partisan advertising here in the United States.

Update

While the Chamber is trying to characterize ThinkProgress as an “anti-business blog,” that is not true. Think Progress is not disputing the legally permissible contributions from the U.S. operations of foreign companies that may be used for political activities. These U.S. incorporated entities employ millions of Americans and should be permitted to fully participate in the US political process (presuming that they truly represent the U.S. commercial interest). However, it is illegal for foreign nationals/corporations/governments located in other countries to 1) contribute foreign monies to entities that use those funds for electioneering activities, or 2) participate in any decisions about political expenditures in the U.S.

LGBT

Rep. Kendrick Meek Calls Crist The ‘George Wallace’ Of Gay Adoptions

Governor Charlie Crist (I) tried to run away from his support for Florida’s ban against gay adoption during yesterday’s ABC Florida senate debate, portraying himself a social moderate who only supported the ban because it was the law of the state. But during a heated exchange in the last minutes of the three-way debate between Crist, Rep. Kendrick Meek (D-FL) and Marco Rubio (R), Meek likened Crist to former Alabama Governor George Wallace and said that he stood in the way of sensible adoption policies:

CRIST: When I was saying that it wasn’t appropriate to have that adoption, it was because that was the law in the books in our state. I was the Attorney General of Florida. I understand enforcing the law and respecting it….I’m a live and let live kind of guy…I am a fiscal conservative and a social moderate. I really believe in less government and more freedom. I don’t want to impose my will on other people. [...]

MEEK: It’s really mind boggling. It’s beyond an explanation for the governor to stand here and do more than a Potomac two-step. I mean, he is saying that he was the, how do you say, the Governor Wallace when he came down on gay adoptions in the state. For all of the kids in foster care right now that are looking for home, he stood — he said he thought it was inappropriate. When he ran against Jim Davis in ’96 — I mean, ’06, he said that Jim Davis didn’t have the values that he possessed. That’s not, that’s not in the state statute. That’s his opinion.

Watch a compilation:

Indeed, before announcing his independent bid for the Senate, Crist had supported Florida’s ban on gay parent adoption because “children are best raised in a traditional family.” As recently as February 2010, Crist told the Palm Beach Post that he had “respect” for the current law. “I don’t advocate for a change,” he said, adding that he hoped it wouldn’t be overturned by the courts.

Politics

O’Donnell Breaks No National Media Pledge, Interviews With CNN — Will She Now Appear On Maddow?

GOP U.S. Senate candidate Christine O’Donnell sparked a media firestorm after her victory in the Delaware primary last month. After establishment Republicans attacked her and comedian Bill Maher released a video clip of her saying she had once dabbled in witchcraft, O’Donnell went into damage control mode. First she canceled Sunday show interviews and then told Fox News’ Sean Hannity that she would no longer appear on national news media.

But, O’Donnell has broken her pledge. Yesterday, she promised CNN’s Jim Acosta that she would talk to him, and today, she granted him an interview, part of which has already aired on CNN’s The Situation Room.

But now that O’Donnell has given CNN an interview, thus breaking her “no national media” pledge, perhaps she can also do an interview with MSNBC’s Rachel Maddow. After all, O’Donnell used Maddow-as-villain in a recent fundraising campaign. Maddow, along with some of her staff, was kicked out of O’Donnell’s campaign office this week after making an attempt to interview her. And the MSNBC host responded last night that she’d be happy to have O’Donnell on her show so she can provide her point of view:

MADDOW: If you are unhappy with our coverage of you, Ms. O’Donnell, if you think that we intentionally “cover up the truth”… as you said in your fundraising letter, I can assure you that our reporting on you would be so much better-informed if you were actually in it, if you would actually talk to us, instead of having your staffers call us names and getting some angry man to yell “Get off my lawn” at us, just because we asked for an interview.

Watch it:

Visit msnbc.com for breaking news, world news, and news about the economy

At the end of the segment, Maddow made a pledge of her own. “So say, ‘Yes,’ Christine O’Donnell!” Maddow said. “It will be fun, I promise!”

Security

Do Republicans Think American Diplomacy Is Best Served By Not Showing Up?

Our guest blogger is David Halperin of the Israel Policy Forum.

Sen. Sam Brownback (R-KS)

Sen. Sam Brownback (R-KS)

The biggest challenge to U.S. diplomacy today is just showing up. U.S. Ambassadors in Syria, Turkey, Azerbaijan, Kyrgyzstan, and Turkmenistan (and the Czech Republic too) are all missing — held up in Congress or in transition. In total, an area of over 700,000 square miles — and over 120 million people — is without official U.S. representation. Especially unhelpful is Republican opposition to ambassadors to Syria and Turkey, two strategically critical nations with significant influence in areas where U.S. national security interests are at stake.

The U.S. Ambassador post in Damascus has been vacant since February 2005, following the assassination of Lebanese Prime Minister Rafik Hariri. In February, the White House nominated Robert Ford, a career diplomat with vast experience in the region, to fill the post.

But Republican senators have since stood in the way, arguing in a letter to Secretary Clinton that “Engagement of hostile regimes in pursuit of U.S. interests is not necessarily bad policy, if it is part of a realistic strategy with measurable goals. But engagement for engagement’s sake is not productive. However well-justified that engagement is the U.S. pays a price for lending even a modicum of international legitimacy to a regime like Syria’s.”

Even without an ambassador in Damascus, the Obama administration has sought to engage Syria in an effort to ameliorate its behavior vis a vis Lebanon and Iraq, as well as advance the prospects for renewed Israel-Syria peace talks. But the obstacles to advancing U.S. interests without an ambassador will be difficult to overcome.

The highest U.S. representation in Syria today is the charge d’affaires, whose access to senior Syrian officials is limited. As Jim Walker wrote in a recent op-ed in The Hill, “while the U.S. chargé d’affaires cannot meet the Syrian foreign minister or president — unless accompanied by a visiting Special Envoy or Congressional delegations — Hezbollah chief Hassan Nasrallah and Iranian President Mahmoud Ahmadinejad have free access to the ears of President Basher Assad and his government.”

To be sure, the Republicans opposed to the nominee have reason to be concerned about Syria’s behavior. But an ambassador in Damascus will serve to advance US interests, not reward bad deeds.

Unlike with Syria, where Republicans are opposed to the mere concept of an ambassador, when it comes to Turkey, outgoing Senator Sam Brownback (R-KS) is opposed to the specific nominee, Francis J. Ricciardone, Jr. Or at least that is what he claims. Read more

Politics

First Ever Decision On Constitutionality Of Health Reform Upholds The Law

doctor_patientToday was a victory for the Affordable Care Act. The first court decision to render a verdict on the constitutionality of the landmark health reform package upheld a key portion of law. Earlier today, Judge George Caram Steeh of the Eastern District of Michigan handed down a twenty page order dismissing a challenge to the Act’s minimum coverage provision on the merits:

“In assessing the scope of Congress’ authority under the Commerce Clause,” the court’s task “is a modest one.” The court need not itself determine whether the regulated activities, “taken in the aggregate, substantially affect interstate commerce in fact, but only whether a ‘rational basis’ exists for so concluding.”

There is a rational basis to conclude that, in the aggregate, decisions to forego insurance coverage in preference to attempting to pay for health care out of pocket drive up the cost of insurance. The costs of caring for the  uninsured who prove unable to pay are shifted to health care providers, to the insured population in the form of higher premiums, to governments, and to taxpayers. The decision whether to purchase insurance or to attempt to pay for health care out of pocket, is plainly economic. These decisions, viewed in the aggregate, have clear and direct impacts on health care providers, taxpayers, and the insured population who ultimately pay for the care provided to those who go without insurance. These are the economic effects addressed by Congress in enacting the Act and the minimum coverage provision.

Although Judge Steeh is the second judge to dismiss a challenge to health reform — last August, a George W. Bush appointee dismissed a health care case on procedural grounds — he is the first judge to reach the merits of whether or not the law is constitutional. Interestingly, Steeh sided against the Obama Administration’s three procedural arguments that would have effectively delayed any litigation challenging the ACA until 2014, before completely rejecting the plaintiff’s claim that the law is unconstitutional.

This case is far from over, however. Judge Steeh’s decision will appeal to the notoriously right-wing Sixth Circuit, a Court which tried to manipulate federal election law to benefit the Ohio Republican Party in 2008 before being unanimously smacked down by the Supreme Court just three days later. If the Sixth Circuit reverses Judge Steeh, that decision is almost certain to be reviewed by the Supreme Court.

In the end, however, there is no question that Steeh reached the correct decision. Even ultra-conservative Justice Scalia agrees that Congress has sweeping power to regulate “economic activity,” and there is simply no question that health reform will have an enormous economic impact on the health insurance market. In other words, today’s decision will be the first of many affirming the Affordable Care Act.

Health

First Ever Decision On Constitutionality Of Health Reform Upholds The Law

doctor_patientToday was a victory for the Affordable Care Act. The first court decision to render a verdict on the constitutionality of the landmark health reform package upheld a key portion of law. Earlier today, Judge George Caram Steeh of the Eastern District of Michigan handed down a twenty page order dismissing a challenge to the Act’s minimum coverage provision on the merits:

“In assessing the scope of Congress’ authority under the Commerce Clause,” the court’s task “is a modest one.” The court need not itself determine whether the regulated activities, “taken in the aggregate, substantially affect interstate commerce in fact, but only whether a ‘rational basis’ exists for so concluding.”

There is a rational basis to conclude that, in the aggregate, decisions to forego insurance coverage in preference to attempting to pay for health care out of pocket drive up the cost of insurance. The costs of caring for the uninsured who prove unable to pay are shifted to health care providers, to the insured population in the form of higher premiums, to governments, and to taxpayers. The decision whether to purchase insurance or to attempt to pay for health care out of pocket, is plainly economic. These decisions, viewed in the aggregate, have clear and direct impacts on health care providers, taxpayers, and the insured population who ultimately pay for the care provided to those who go without insurance. These are the economic effects addressed by Congress in enacting the Act and the minimum coverage provision.

Although Judge Steeh is the second judge to dismiss a challenge to health reform — last August, a George W. Bush appointee dismissed a health care case on procedural grounds — he is the first judge to reach the merits of whether or not the law is constitutional. Interestingly, Steeh sided against the Obama Administration’s three procedural arguments that would have effectively delayed any litigation challenging the ACA until 2014, before completely rejecting the plaintiff’s claim that the law is unconstitutional.

This case is far from over, however. Judge Steeh’s decision will appeal to the notoriously right-wing Sixth Circuit, a Court which tried to manipulate federal election law to benefit the Ohio Republican Party in 2008 before being unanimously smacked down by the Supreme Court just three days later. If the Sixth Circuit reverses Judge Steeh, that decision is almost certain to be reviewed by the Supreme Court.

In the end, however, there is no question that Steeh reached the correct decision. Even ultra-conservative Justice Scalia agrees that Congress has sweeping power to regulate “economic activity,” and there is simply no question that health reform will have an enormous economic impact on the health insurance market. In other words, today’s decision will be the first of many affirming the Affordable Care Act.

Update

On the same day that a federal judge upheld key provisions of the Affordable Care Act, the Chamber of Commerce — which spent millions in a failed campaign to keep reform from becoming law — announced that it would dedicate its considerable resources towards invalidating reform through the courts:

Thomas Donohue, the chamber’s president and chief executive, said on Thursday the nation’s largest business lobby is beefing up its staff so it can fight health care and financial regulation reform in court.

“Litigation is one of our most powerful tools for making sure that federal agencies follow the law and are held accountable,” Donohue said in remarks prepared to be delivered in Des Moines, Iowa.

Politics

Referencing TP Report, Obama Warns ‘Groups That Receive Foreign Money’ Are A ‘Threat To Our Democracy’

Pressure has been mounting on the U.S. Chamber of Commerce since a ThinkProgress investigation published Tuesday revealed that the right-wing business group may be using donations from foreign corporations to bankroll its general account — the same account that is being used to launch an unprecedented $75 million attack ad campaign against progressive candidates. Sen. Al Franken (D-MN) and others have called for an FEC investigation into the Chamber, and numerous media outlets have pressed the group for answers. Meanwhile, the Chamber continues to stonewall. Today, while stumping for Maryland Gov. Martin O’Malley (D), President Obama referenced the investigation, warning that “groups that receive foreign money” are a “threat to our democracy”:

OBAMA: Just this week, we learned that one of the largest groups paying for these ad regularly takes in money from foreign corporations. So groups that receive foreign money are spending huge sums to influence American elections. And they won’t tell you where the money for the ads come from.

So this isn’t just a threat to Democrats. All Republicans should be concerned. Independents should be concerned. This is a threat to our democracy. The American people deserve to know who’s trying to influence their elections. And if we just stand by and allow the special interests to silence anybody who’s got the guts to stand up to them, our country’s going to be a very different place.

Watch it:

During his January State of the Union address, Obama warned that the Supreme Court’s recent Citizens United decision “will open the floodgates for special interests — including foreign corporations — to spend without limit in our election.” And in his weekly address in September, Obama warned again, “Foreign-controlled corporations seeking to influence our democracy are able to spend freely in order to swing an election toward a candidate they prefer.” His prediction, widely mocked by conservatives, has unfortunately proven prescient.

Health

The Specifics Of ACA Defunding

Proponents of the health reform are starting to worry that if the Republicans can’t practically repeal the Affordable Care Act, they can do a lot of damage to the law by defunding it. Henry Aaron has a good piece in New England Journal of Medicine about what exactly the GOP can do:

Repeal of the ACA before 2013 is unlikely…A more serious possibility is that ACA opponents could deliver on another pledge: to cut off funding for implementation.3 Here is how such a process could work.

Customarily, substantive legislation “authorizes” spending, but the funds to be spent must be separately “appropriated.” The ACA contains 64 specific authorizations to spend up to $105.6 billion and 51 general authorizations to spend “such sums as are necessary” over the period between 2010 and 2019. None of these funds will flow, however, unless Congress enacts specific appropriation bills. In addition, section 1005 of the ACA appropriated $1 billion to support the cost of implementation in the Department of Health and Human Services (DHHS). This sum is a small fraction of the $5 billion to $10 billion that the Congressional Budget Office estimates the federal government will require between 2010 and 2019 to implement the ACA. The ACA appropriated nothing for the Internal Revenue Service, which must collect the information needed to compute subsidies and pay them. The ACA also provides unlimited funding for grants to states to support the creation of health insurance exchanges (section 1311). But states will also incur substantially increased administrative costs to enroll millions of newly eligible Medicaid beneficiaries. Without large additional appropriations, implementation will be crippled. [...]

[Republicans] could bar the use of staff time for designing rules for implementation or for paying subsidies to support the purchase of insurance. They could even bar the DHHS from writing or issuing regulations or engaging in any other federal activity related to the creation of health insurance exchanges, even though the ACA provides funds for the DHHS to make grants to the states to set up those exchanges.

In my interview with him on Tuesday, Tom Daschle suggested that defunding the law may be more difficult than it seems, since “a lot of what we did in health care reform has more of an entitlement than a discretionary funding base. So as an entitlement, they would really have to change the law rather than simply not fund in order for it to be effected. The entitlement sections of the legislation are going to be fairly immune from defunding,” he predicted. Indeed, the CBO estimates that there is “at least $50 billion in specified and estimated authorizations of discretionary spending that might be involved in implementing that legislation” and presumably that’s the spending they can most easily target.

Aaron is probably right about the GOP’s strategy, although I’m struck by the fact that if they successfully defund the law, they could then be blamed for the health care crisis that that creates (perpetuates). Could they not be made to own the status quo?

Yglesias

Department of Obsolete Laws

Apparently in Austria it’s illegal for a member of the royal family to run for the largely ceremonial office of president.

That’s via Robert Farley who (rightly) thinks the rule should be repealed. Of course in the annals of bad rules about eligibility to run for president, this has nothing on our rule against letting an immigrant run.

Economy

McCarthy Finally Finds Programs He Would Cut, Reducing Budget By Less Than One Half Of One Percent

A few weeks ago, Rep. Kevin McCarthy (R-CA) — one of the self-styled GOP “Young Guns” and the lead architect of the House Republicans’ “Pledge to America” — was pressed on MSNBC to name one single program he’d cut from the federal budget to reduce spending. After dodging the questions for a minute, McCarthy finally embarrassingly responded “the line item would be across-the-board.”

Of course, McCarthy is hardly alone in this regard: a plethora of Republicans have been unable to name any programs they would cut to reduce the deficit. In fact, my colleague Alex Seitz-Wald has a video featuring a number of them.

It seems that McCarthy though, has finally wizened up, as last night he came on PBS’ Newshour prepared with some answers. When the host asserted that “it’s hard to imagine a path to [budget] balance” with the policies Republicans have identified, McCarthy said “not really, not really” and named four cuts he would make. Watch it:

McCarthy gets points for trying, I suppose, but here’s what he identified and each program’s budgetary impact:

Cutting subsidies for Amtrak sleeper cars: $120 million (0.003 percent of the budget)

Cutting “taxpayer subsidized union activities”: $120 million (0.003 percent)

Economic aid to foreign nations: $7.9 billion (0.22 percent). Half of this goes to Afghanistan, which presumably Republicans wouldn’t actually cut.

Child nutrition programs: $8.28 billion (0.23 percent). More than 90 percent of the nutrition funding in the budget is mandatory, which McCarthy has said he won’t cut, and of the $8 billion in discretionary nutrition spending, the vast majority is to fund the Special Supplemental Nutrition Program for Women, Children and Infants (WIC). This program provides food, education, and health care referrals to more than 9 million low-income women and children.

So there you have it. One minuscule subsidy, something that sounds devious but isn’t at all specific, a highly unlikely cut in foreign aid, and slashing nutrition assistance for needy women, all to reduce the budget by less than one-half of one percent (0.45 percent, to be exact). And to be clear, McCarthy laid out exemptions to the latter two cuts, but I’ve been extremely charitable and scored him as cutting the entire portion of the budget he named. So his savings wouldn’t even be as high as I’ve calculated.

With the Pledge to America, House Republicans are suggesting $11 trillion in deficits over the next decade, and it’s abundantly clear that they have no plan for paying for it. The best they can come up with is some small-ball programs that have no impact on the structural deficit (which is driven by health care spending, defense spending, and massive tax cuts for the wealthy). Not that ineffective programs shouldn’t be cut, but if McCarthy thinks reductions of the magnitude he’s laid out will ever lead to a balanced budget then he simply has no clue what the federal budget looks like.

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