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Economy

Everything You Need To Know About The Emerging ‘Fiscal Cliff’ Compromise

Senate Minority Leader Mitch McConnell (R-KY) and Vice President Joe Biden have reportedly reached an agreement that would solve the tax side of the debate over the so-called “fiscal cliff,” the package of tax increases and spending cuts that will begin automatically at midnight tonight.

Senate Majority Leader Harry Reid (D-NV) and the Democratic caucus have not yet indicated support for the compromise, which extends most of the Bush tax cuts and other tax provisions, and while the Senate may vote tonight, no vote is expected in the House before tonight’s deadline. Here is a breakdown of the different provisions of the reported compromise:

Bush tax cuts: The deal would extend all of the Bush tax cuts for incomes below $400,000 for individuals and $450,000 for families, while reinstating the Clinton-era 39.6 percent tax rate for income above those thresholds. It will also push the capital gains rate on investment income back to 20 percent for income above $400,000 for individuals and $450,000 for families. President Obama had asked for an extension of rates only for incomes below $250,000.

Stimulus tax credits: Three tax credits expanded as part of the stimulus will be extended for one year as part of the compromise. The America’s Opportunity Tax Credit, Child Tax Credit, and Earned Income Tax Credit collectively benefit nearly 20 million Americans each year, and extending them was a priority for Obama and Democrats. Republicans allowed all three to expire in tax legislation earlier this year.

Payroll tax cut: The payroll tax cut would expire as part of this compromise. The payroll tax cut, which benefits all wage-earning workers, is the most damaging piece of the “fiscal cliff” according to the Congressional Budget Office. Republicans have opposed extending the payroll tax cut in the past; many Democrats opposed its extension over fears that it would undermine Social Security, which it helps fund.

Unemployment insurance: The federal unemployment insurance program would be extended for one year under this deal. Without an extension, more than 2 million would lose benefits at the beginning of 2013, while another million would lose them in the early part of the year.

Estate tax: The estate tax was set to revert to its Clinton-era levels, where it was taxed at 55 percent after a $1 million exemption. This deal would set the exemption at $5 million and tax at a 40 percent rate after that — at a cost of $375 billion over 10 years compared to the Clinton level.

Other provisions: The deal would also include a permanent fix to the Alternative Minimum Tax and a one-year “doc fix,” which would prevent cuts in provider payments through Medicare. It also extends certain corporate tax provisions for another year.

The reported McConnell-Biden compromise does not deal with the spending cuts side of the fiscal cliff, though CNN’s Dana Bash reported that the sequester may simply be delayed for two months. The spending cuts are the part of the fiscal cliff that the Congressional Budget Office says would be the most damaging to America’s economic growth. It also does not include an increase in the debt ceiling, setting up another fight over the coming months like the one that created the fiscal cliff in the first place.

Update

The New York Times reports a tentative deal has been struck: “Senate Republicans said negotiators also agreed to put off $110 billion in across-the-board cuts to military and domestic programs for two months while broader deficit reduction talks continue.” Also the $5 million estate tax exemption will be indexed to inflation.

Update

Harry Reid and Nancy Pelosi have signed off on the deal.

Health

Texas Will End Funding For Planned Parenthood Clinics Tomorrow

For most of 2012, Texas officials have been working hard to strip funding from the Planned Parenthood clinics in their state. Those officials advanced their anti-choice agenda on Monday, when a visiting judge ruled that Texas may deny funding from Planned Parenthood affiliates in the new year simply because the organization advocates for abortion rights.

Planned Parenthood has been embroiled in a complicated legal battle with the state of Texas as Republican officials attempt to exclude the organization from the state’s Women’s Health Program, which uses federal and state money to fund preventive care for low-income women. The organization sued to block Texas from discriminating against abortion providers, but Visiting Judge Gary Harger ruled that Texas may design a state-run Women’s Health Program that excludes qualified providers like Planned Parenthood — despite the fact that, on a federal level, states aren’t allowed to block qualified health providers from receiving Medicaid funds.

The new Women’s Health Program launches on Tuesday, and Monday’s ruling ensures that Planned Parenthood won’t be part of it. Before Texas Republicans began their crusade against Planned Parenthood, the organization provided preventative cancer screenings, contraceptive services, and family planning assistance to nearly half of the state’s 110,000 low-income women in the Medicaid program.

Texas’ insistence on defunding Planned Parenthood has already had far-reaching consequences. Some health clinics in the state have been forced to close — including at least 50 that weren’t even affiliated with Planned Parenthood’s national organization — leading thousands of low-income women to forgo the preventative care they need. Monday’s decision will almost certainly cause additional health clinics to close their doors in January, the lawyer representing Planned Parenthood pointed out.

Since the Hyde Amendment already prevents Medicaid programs from covering abortion services, the Planned Parenthood affiliates in Texas don’t actually perform abortions for any of their patients in the Women’s Health Program.

Security

Intelligence Bill Won’t Include Measure Mandating Report On Consequences Of Iran Attack


A measure requiring the office of the Director of National Intelligence to report to Congress on the consequences of a military strike on Iran’s nuclear facilities will not be included in the FY2013 Intelligence Authorization Act.

The House voted in May to include the amendment calling for a report on the consequences of an Iran attack in its version of the intelligence authorization bill. It reads:

SEC. 307. REPORT ON CONSEQUENCES OF MILITARY STRIKE AGAINST IRAN.

Not later than 60 days after the date of the enactment of this Act, the Director of National Intelligence shall submit to the congressional intelligence committees a report containing an assessment of the consequences of a military strike against Iran.

But the version the Senate passed on Friday does not contain any language calling for such a report. And instead of merging the House and Senate intelligence authorization bills, the House is scheduled to vote on the Senate version without the Iran war consequences measure.

Rep. John Conyers (D-MI), who led the push in the House to include the Iran war consequences amendment back in May, expressed disappointment the measure has not been included.

“While I am disappointed that our amendment will not be included in the final version of 2013 Intelligence Authorization Act,” Conyers said in a statement this afternoon, “the unanimous support for the report language in the House of Representatives shows that there is substantial bipartisan demand in Congress for a clear-sighted, realistic analysis of the very serious consequences that could result from a preemptive military strike on Iranian nuclear facilities.”

Various experts and current and former U.S. and Israeli security officials have publicly warned about the consequences of attacking Iran, including the possibility of an “all out regional war” or a situation that would, in the words of former Bush administration CIA Director Michael Hayden, “guarantee that which we are trying to prevent — an Iran that will spare nothing to build a nuclear weapon.”

The House was expected to pass the Senate’s version of the intelligence bill today, but Republican leaders have postponed the vote.

“Although a report on the consequences of an attack on Iran will not be mandated by this law,” Conyers added, “I strongly encourage the Director of National Intelligence to proceed with this analysis and share it with Congress. The expertise and collective wisdom of our intelligence community is critically needed in this debate.”

(Photo: Bushehr nuclear facility in Iran, AP)

LGBT

Same-Sex Weddings Will Begin At Midnight Tonight In Maryland

When the clock strikes midnight tonight, it will mark more than simply the start of a new year for some couples in Maryland — it’s also when Maryland’s new marriage equality law officially takes effect. Some same-sex weddings are already planned for the first moments of 2013.

Since New Year’s Day is a government holiday, courthouses across Maryland are closed. But that didn’t stop Baltimore Mayor Stephanie Rawlings-Blake (D) from taking steps to ensure that same-sex couples won’t have to wait any longer for marriage equality. Rawlings-Blake will open Baltimore’s city hall tonight to allow at least seven same-sex couples to get married, and the mayor plans to serve as an official witness for the wedding ceremonies:

New Years Day will have a new meaning for the hundreds — if not thousands — of couples who will finally have the right to marry the person they love,” said Mayor Rawlings-Blake.

“It is a remarkable achievement for Maryland, and we are excited to open City Hall to host some of the first wedding ceremonies in our great state. Newly married couples will stand before their friends and family to profess their love and commitment to each other. This is what we worked for, and I am looking forward to take part in this historic and jubilant day.”

The first couple to be married at City Hall will be a longtime aide to the mayor and his partner of 35 years. And even though the courthouses in other Maryland cities may not be open, the early marriage licenses that some same-sex couples in the state were able to begin applying for in December will become official at midnight tonight.

After sweeping LGBT victories in November expanded marriage equality across several states, same-sex couples also began getting married in Washington earlier this month and in Maine earlier this week.

Climate Progress

Modest Steps Could Add Up To Big Success For Clean Energy In 2013

by Noah Ginsberg, via the American Council on Renewable Energy

Looking back at 2012, one thing is certain in the sea of the year’s uncertainty; renewable energy experienced significant growth.

The U.S. solar industry grew at a rate of 13.2%.  A global oversupply of solar panels lowered prices for American consumers, resulting in higher demand and greater profits for solar installation companies. SolarCity’s IPO proved to be successful despite claims that its stock would immediately plummet. And even with excessive political attacks by opponents of renewable energy – over $250 million spent in the 2012 election – the industry has gained strong public support across the country.  Industries such as wind, biofuels, geothermal, hydropower, electric transportation, and solar have achieved success in 2012 but the next step in supporting growth is creating a more stable policy landscape.

Creating a stable policy landscape should start with an extension of the Production Tax Credit (PTC), which expires at the end of 2012. The PTC has been very effective in bringing wind energy and other renewable energy sources to scale, unlocking billions of dollars in private investment for wind energy. It encouraged the development of almost 4 GW of wind energy in the first ten months of 2012 alone. The PTC has also contributed to a 38% drop in project development costs for wind farms in the past four years. In order to continue the strong trajectory the industry is on, an extension of the PTC for 2013 and beyond is needed, albeit with an appropriate timeline for a phaseout.

Adopting legislation to qualify renewables as Master Limited Partnerships (MLPs) would also attract additional capital into renewable energy development. According to Secretary Chu of the Department of Energy, if MLP legislation is signed into law and renewable energy is considered a “qualified” energy source under MLP legislation, there will be a significant increase in investments in renewable energy development. Furthermore, it will create a stable financial landscape for both small and large-scale investors who wish to enter the market. Senator Chris Coons of Delaware has proposed MLP legislation for renewable energy and his legislation may see bipartisan support in the early months of 2013.

Every year, critics of renewable energy get louder even as the prices of electricity generated from renewable sources decrease. Although 2012 was an election year and political attacks were targeted at renewable energy, the industry braved the storm. The business case for renewable energy has gotten stronger in 2012 and will continue to do so – even if there are some bumps on the horizon.

Now more than ever, the potential, production, and capacity for renewable energy are enormous, but with sound energy policy the potential is exponentially greater. Political gridlock is looming in 2013. The year may not start the way anybody wants it to, but it still has the potential to end on a very high note for American renewable energy.

Noah Ginsberg is a Communications Associate for ACORE. This piece was originally published at ACORE and was reprinted with permission.

Security

Senate Panel Faults State Department And Pentagon In Benghazi Attack Report

A bipartisan Senate Homeland Security report to be released today has found that the State and Defense Departments share blame for the security failures that resulted in the death of 5 Americans after an attack on a U.S. diplomatic mission in Benghazi, Libya back in September.

An independent review earlier this month faulted the State Department for failing to adequately respond to security requests prior to the attacks and called for restoring diplomatic security funding Republicans previously cut. While State Department officials have previously accepted responsibility for inadequate security in Benghazi, the new Senate report expands blame to the Pentagon, the Hill reports:

The report also blames the Pentagon, finding that the Defense Department (DOD) had failed to place adequate resources in the region to respond “in the event of a crisis.”

“Although DOD attempted to quickly mobilize its resources, it did not have assets or personnel close enough to reach Benghazi in a timely fashion,” the report concludes.

The Senate report also criticizes the Obama administration’s mixed messages in the aftermath of the Benghazi assault, claiming the White House was “inconsistent” about whether it constituted a terror attack. The inconsistency “contributed to the confusion in the public discourse” about the attacks, wrote Sens. Joe Lieberman (I-CT) and Susan Collins (R-ME).

“We’re going to solve this,” President Obama said on NBC’s Meet the Press on Sunday. “We’re not going to pretend that this was not a problem. This was a huge problem. And we’re going to implement every single recommendation that’s been put forward.”

Health

Michigan Governor Signs Extreme Anti-Abortion Bill Into Law

Protests against Michigan's HB 5711

Michigan Gov. Rick Snyder (R) has approved a controversial package of abortion restrictions that will limit abortion access for women who live in rural areas, require doctors to prove that mentally competent women haven’t been “coerced” into their decision to have the procedure, and enact unnecessary, complicated rules for abortion clinics and providers. The governor signed HB 5711 into law on Friday despite widespread protests against the omnibus anti-abortion measure.

Snyder claims that HB 5711 “respects a woman’s right to choose while helping protect her health and safety.” But women’s health advocates warn the law will seriously threaten women’s access to the health services they need by imposing harsh regulations on abortion clinics and providers:

Critics of the Michigan law fear its insistence on new, standalone facilities will hurt women in rural and low-income areas as it could force some clinics to close. They say questioning women on whether an abortion is voluntary subjects them to a type of interrogation.

The Center for Reproductive Rights, an abortion rights group that opposed the measure, said it could force many existing abortion providers in the state to either tear down their offices and rebuild from the ground up — or shutter their practices. [...]

Safety was never the intention of this law. The only thing this law accomplishes is to make a difficult decision even more difficult,” said Rana Elmir, the communications director for the Michigan ACLU.

Even some state lawmakers who supported HB 5711 acknowledge the law isn’t actually intended to protect women. “This is about protecting fetuses,” one Republican legislator explained.

Michigan legislators were quick to capitalize on this year’s lame duck session to push through controversial abortion restrictions, potentially because five anti-choice state lawmakers lost their seats in November’s election. The majority of Michigan voters support legal access to abortion services.

Climate Progress

Remembering Environmentalist Becky Tarbotton, 1973-2012

by Tina Gerhardt, via The Progressive

“We need to remember that the work of our time is bigger than climate change. We need to be setting our sights higher and deeper. What we’re really talking about, if we’re honest with ourselves, is transforming everything about the way we live on this planet. We don’t always know exactly what it is that creates social change. It takes everything from science all the way to faith, and it’s that fertile place right in the middle where really exceptional campaigning happens - and that is where I strive to be.”

– Rebecca Tarbotton

Leading environmentalist and human rights activist, Rebecca “Becky” Tarbotton, executive director of the San Francisco-based organization Rainforest Action Network (RAN), died in a swimming accident north of Puerto Vallarta, Mexico, on Wednesday, December 26, 2012. She was vacationing with her husband and close friends.

She was swimming in the open ocean, encountered some rough waves and inhaled water. Although she was rescued and brought ashore, she could not be revived. According to the police report, she died of asphyxiation.

Nell Greenberg, communications director for RAN, said, “Becky was an emerging star who was galvanizing an ever-growing movement of people demanding environmental and social change.”

Tarbotton was an environmentalist and human rights activist. Born in Vancouver, British Columbia, on July 30, 1973, she completed her B.A. in Geography at McGill University and a M.A. in Community and Regional Planning at the University of British Columbia.

Her work began with indigenous communities in far northern Canada. She subsequently lived in Ladakh, India, for eight years, working for the International Society for Ecology and Culture.

Tarbotton took the helm of RAN in 2010, the first woman to do so in the organization’s 27-year history. She led campaigns to preserve rainforests and protect indigenous rights, pushing to the fore the nexus of fossil fuel use, forest degradation and global warming.

Michael Brune, former executive director of RAN and now executive director of the Sierra Club, said, “Becky was a force against deforestation and corporate greed. She was a rising star. We need more women to be leading environmental, and losing a leader and friend like Becky is especially painful.”

Her most recent success was brokering a deal with Walt Disney that would eliminate their use of paper produced from the logging of endangered forests.

Bill McKibben of 350.org said, “She was a fighter with a spring in her step and a bit of fire in her eye.”

“Becky was a leader’s leader. She could walk into the White House and cause a corporate titan to reevaluate his perspective, and then moments later sit down with leaders from other movements and convince them to follow her lead,” Ben Jealous, executive director of the NAACP and a close friend, said. “If we had more heroes like her, America and the world would be a much better place.”

She is survived by her husband, Mateo Williford; her brothers Jesse Tarbotton and Cameron Tarbotton, and her mother, Mary Tarbotton, of Vancouver, BC. Her ashes will be scattered off of Hornby Island in British Columbia where her family owns a cabin and where she spent much time with family and friends.

Public memorial services will be held in San Francisco and in Vancouver. Dates are still to be determined.

For those who would like to send condolences to her family, please send them to the RAN office, 425 Bush Street, Ste 300, San Francisco, CA 94108.

Tina Gerhardt is an independent journalist and academic who covers international climate negotiations, domestic energy policy and related direct actions. Her work has appeared in Alternet, Grist, The Nation, The Progressive and the Washington Monthly. This piece was originally published at The Progressive and was reprinted with permission from the author.

Politics

Progressive Resolutions For 2013

1. Reform the broken immigration system.

Following President Obama’s re-election — supported by a large majority of Latino voters — even House Speaker John Boehner (R-OH) came out in support of comprehensive immigration reform. The president is preparing to “begin an all out drive” for immigration reform in January, so 2013 needs to be the year that Congress passes a comprehensive plan that includes a path to citizenship.

2. Enact sensible gun safety laws.

Tens of thousands of Americans signed a petition calling on the White House to introduce legislation to address the weak gun laws in the United States, members of Congress pledged to introduce billsregulating assault weapons, and President Obama has formed a task force to address gun violence. Lawmakers must act decisively in to prevent any more tragedies in 2013.

3. Secure higher wages and benefits for workers.

Union advocates launched campaigns to organize more service sector workplaces this year, and those efforts need to continue. In New York, fast food workers are fighting for the fair wages and health benefits that union membership could help bring. Across the country, Walmart workers are demanding labor rights and fair wages at a company that tells them that joining a union could mean the loss of their benefits. Unions built America’s middle class, and in the face of continued attacks on workers, they’re an important piece in the fight to strengthen it again.

4. Enhance oversight of the drones program.

Though the Obama administration’s policy of killing al-Qaeda and affiliated groups from afar may be weakening terrorist organizations, it is almost certainly killing innocent civilians as well. Given the level of secrecy surrounding the program, it’s almost impossible for the public to know whether the program is doing more good than harm.

5. Adopt a more effective federal drug policy.

In 2012, two states for the first time voted to legalize and regulate the marijuana industry. The move has prompted nationwide discussion and increasing support for a move away from the failed War on Drugs. In 2012, members of Congress and the administration should divert federal resources away from minor drug crimes, and clear the way for states to experiment with an alternative to the failed War on Drugs.

6. Embrace progressive monetary policy.

The latest announcement from the Federal Reserve that it will continue monetary stimulus until unemployment is below 6.5 percent or inflation rises above 2.5 percent was a historic shift in how the Fed strategizes and conceptualizes its role. It reorders the Fed’s priorities towards emphasizing employment. Bloggers and policymakers from across the political spectrum helped push forward the proposal by Chicago Fed president Charles Evans, but progressives certainly played a role. And this lays the foundation for eventually establishing even more worker-friendly Fed policies, such as NGDP targeting and a hike in the NAIRU — the level of employment the Fed believes the economy can tolerate before the danger of inflation becomes too great.

7. Reform the filibuster.

For President Obama’s entire term, Senate Minority Leader Mitch McConnell (R-KY) has been the king of the Senate. And he’s wielded this power to more interested in sabotaging Obama than in actually governing. The solution is a robust filibuster reform package, including major confirmations reforms.

8. Minimize risky bank transactions.

The Volcker Rule, meant to rein in the sort of risky bank trading that helped fuel the 2008 financial crisis, is supposed to be implemented in early 2013. Wall Street lobbyists — and their Republican counterparts in Congressare trying to water it down, even though it is necessary to safeguard the financial system.

9. Repeal the anti-gay Defense of Marriage Act.

With the Supreme Court set to consider a challenge to the Defense of Marriage Act (DOMA), 2013 could prove to be a historic year for same-sex couples. Regardless of how the Court rules, the Respect for Marriage Act, legislation to repeal DOMA, enjoys record support in Congress.

10. Advance national standards for federal elections.

Americans had to overcome major obstacles and long lines to vote in 2012 due to Republican voter supppression efforts. To keep this from happening again, Congress needs to pass minimum standards for election procedures that states must abide by during federal elections.

11. Secure paid sick and parental leave.

The U.S. is one of the only developed countries in the world that doesn’t guarantee paid maternity leave for expecting mothers. Federal policy should encourage employers to provide parents with time off to adjust to life with a newborn and additional time off to take care of their children in times of need.

12. Invest in infrastructure.

Our roads and bridges are literally crumbling, and analysts say the nation will need to make $2 trillion in immediate investments to update infrastructure. Hurricane Sandy underlined the problem, when 8.1 million people -– in homes, businesses, and hospitals — lost power.

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