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Will The GOP Filibuster Tax Credits For Hiring Veterans?

Senate Republicans have so far gone three for three when it comes to filibustering President Obama’s American Jobs Act, having successfully blocked the bill from moving in its entirety, and then prevented two of its components from advancing individually. The GOP’s obstruction comes as the economy continues to improve at a glacial pace, with just 80,000 jobs created last month.

Next week, Senate Democrats will try again, this time with the portion of Obama’s bill providing tax credits to businesses that hire veterans:

Senate Democrats plan to roll out the next piece of President Obama’s jobs creation legislation – this part on veterans – next week.

The bill is aimed at incentivizing companies to hire war veterans. It includes a tax credit to encourage companies to hire veterans as well as additional tax credits for hiring veterans with “service-connected disabilities.”

At the moment, unemployment for veterans stands at 7.7 percent, but is at a substantially worse 12.1 percent for post-9/11 vets (up from 10.6 percent a year ago). If nothing else, surely the GOP can see the wisdom in letting this particular bit of Obama’s jobs bill though. “It’s expected to pass. It should pass,” said Sen. Debbie Stabenow (D-MI).

Of course, while they would be an undeniable help, tax credits for veterans are not enough to create all the jobs necessary to bring the unemployment rate down. As Center for American Progress chief economist Heather Boushey said today, “at this point in the recovery we should be seeing upwards of 300,000 jobs created per month, but the economy only added a paltry 80,000 jobs in October and the three-month pace of job creation is only 114,000…Washington has yet to pass the American Jobs Act, which economists across the board agree will generate new jobs.”

NEWS FLASH

Freshman Republican: No More Pledges, Not Even Norquist’s | Freshman Rep. Reid Ribble (R-WI) is done with pledges tying the hands of lawmakers, especially the strict anti-tax pledge put out by American for Tax Reform’s Grover Norquist that most Republican lawmakers sign. “I want to be intellectually honest with the folks back home,” Ribble said today. “I’m no longer signing any pledges to anybody. I’m not going to sign it next year.” Ribble said the last straw came when Norquist wouldn’t let Republicans close tax loopholes that subsidize ethanol production.

Ohio GOP Candidate Josh Mandel Insists Ohio Anti-Labor Law ‘Is About Respecting Police And Firefighters’

On Tuesday, Ohioans will vote on Issue 2, a referendum on Ohio Gov. John Kasich’s (R) anti-workers’ rights law Senate Bill 5 (SB5). The bill strips teachers, police, and firefighters of their rights to collective bargain for better wages and working conditions. The bill is deeply unpopular.

This, however, has not stopped right-wing groups from flushing the pro-SB5 campaign with money or conservatives from insisting that the law helps local governments by preventing layoffs.

But while most Republicans at least acknowledge that the law disadvantages public employees, one Republican thinks the opposite. This summer, Ohio Treasurer and U.S. Senate candidate Josh Mandel said he supported Senate Bill 5 because the law, in his mind, actually “respect[s] police, and firefighters, and teachers” by giving “fiscal conservatives” the tools to ignore collective bargaining rights, which somehow “insur[es]that there is a state and there are local governments” down the road:

MANDEL: Well I’ve been supportive of Senate Bill 5…In my mind, it’s not about going after police, and firefighters and teachers. It’s about respecting police, and firefighters, and teachers and insuring that there is a state and there are local governments long into the future so that we have communities here in the state. The current level of spending in our state and our country? Simply unacceptable. And I think we need to put the tools in the tool belts of local government leaders and also people who are fiscal conservatives to bring this state into a sense of fiscal health. And that’s one of the reasons I’ve been supportive.

Watch it:

In what must come as a surprise to Mandel, Ohio’s teachers, police, firefighters, and even veterans feel slighted — not respected — by this bill. SB5 strips unions of the right to negotiate wages, eliminates pay increases, and completely bans the right to strike. As public officials and unions both note, teachers and safety forces have already made substantial sacrifices — including zero pay raises and paying more for health insurance — to accommodate the tough economy.

Read more

Special Topic

A Clear Demand: Occupy Wall Street To March Against Foreclosure Settlement Deal

One frequent criticism of the Occupy Wall Street demonstration in New York City and the wider 99 Percent Movement is that it doesn’t have clear goals and objectives.

Today, protesters from Occupy Wall Street will march with one clear demand: telling President Barack Obama’s Justice Department to reject a settlement deal that would grant widespread immunity to big banks for foreclosure fraud. In a press release provided by the Occupy Wall Street Press Working Group, the activists say it would be a “grave injustice” to abused homeowners to grant banks immunity in exchange for a small settlement:

President Obama is on the brink of cutting a backroom deal that would give bankers broad immunity for illegally throwing tens of thousands of Americans out of their homes. The Administration is pressuring state attorneys general to abandon an ongoing investigation into the massive “robo-signing” fraud, in exchange for a relatively small payoff by the banks.

Numerous investigations by state and federal authorities have demonstrated that banks used illegal procedures to make tens of thousands of foreclosures over the past decade. Rushing to a settlement before the full extent of the fraud is known would be a grave injustice to those who were illegally foreclosed upon and those still struggling to stay in their homes. “This is a clear, moral issue that cuts to the core of why we occupy,” said Max Berger, an Occupy Wall Street participant helping to plan the event. “Instead of throwing corrupt bankers in jail, the administration is pushing to give them a get-out-of jail-free card.”

The settlement being negotiated between the nation’s biggest banks and state and federal investigators reportedly could be as high as $29 billion. A growing number of state attorneys general, like New York Attorney General Eric Schneiderman (D), have opposed the settlement, saying it would amount to lenient treatment of the financial industry. “Ongoing investigations by attorneys general cannot be shut down by efforts to settle quickly and those responsible must be held accountable,” said a spokesman for Schneiderman earlier this year.

Michigan City Removes Streetlights In Desperate Budget Cut

States and cities around the country have desperately slashed spending in the face of record budget deficits, including unpaving roads, shrinking schools, closing libraries, and even a failed attempt to decriminalize domestic violence.

The latest consequence of extreme austerity is in Highland Park, Michigan, which has not only turned off all of its streetlights, but also ripped out the light poles — a telling sign that its darkening of the streets is permanent. With an unemployment rate at 22 percent and a city debt of $58 million, Highland Park could no longer afford to pay the electric bills:

The city is $58 million in debt and has many more people than jobs, plus dozens of burned-out or vacant houses and buildings. With fewer than 12,000 residents, its population has dwindled to half the level from 20 years ago. Faced with a $4 million electric bill that required $60,000 monthly payments, Mayor Hubert Yopp asked the City Council to consider reducing lighting. Council members reluctantly approved it, even in an election year.

In Highland Park, “the median household income is $18,700, compared with $48,700 statewide. And 42 percent of the city’s residents live in poverty.” The city has seen a precipitous drop in population over the last few decades.

The drastic measure arrives just after Michigan’s 2011-12 state budget went into effect Oct. 1 — a budget that cuts millions of dollars in funding to cities and schools. Michigan had its own budget crisis to close. However, Gov. Rick Snyder (R) and the GOP-led legislature felt it could afford a $1.7 billion tax cut to businesses, even as the state cut $400 million in school and city aid. Snyder’s budget shifts the economic burden entirely to low-income residents by cutting 86 percent of business taxes, as it slashed the social safety net.

Rebecca Leber

House Republicans: No Infrastructure Funding Without Drill, Baby, Drill

Senate Republicans yesterday, with the help of Sens. Ben Nelson (D-NE) and Joe Lieberman (I-CT), blocked the latest piece of President Obama’s jobs act, which would have provided for $60 billion in infrastructure spending. Instead, the Senate GOP submitted a bill that would supposedly create jobs by crippling the government’s ability to regulate.

House Republicans, of course, won’t even bring up Obama’s jobs plan, instead deciding that the best way to address America’s crumbling infrastructure is to let loose with “drill, baby, drill“:

House Republicans plan to pass a bill by year’s end that would tie new infrastructure funding to federal revenue generated from an expansion of domestic energy production, Speaker John Boehner (R-Ohio) announced Thursday.

Dubbing it the “opposite of stimulus,” Boehner said the new energy production plan would provide “a new devoted revenue stream” that could pay for the kind of infrastructure spending that President Obama is demanding as part of his jobs package.

Even with the unemployment rate barely creeping down and the U.S. facing a $2 trillion deficit in terms of infrastructure, the GOP refuses to move forward with funding unless it is also allowed to soil the environment through more oil drilling.

And its not as if Boehner’s own state of Ohio couldn’t use some help when it comes to infrastructure. In fact, 27 percent of the bridges in Boehner’s state are either “structurally deficient or functionally obsolete.” Ohio’s share of the national highway system has 171 bridges that are structurally deficient. 10 of those bridges are even located in Boehner’s own district.

Boehner this week tried to claim that “nobody” has crafted a bill that would fund infrastructure projects, even as Senate Democrats were bringing a bill to the floor that would pay for those projects with a miniscule surtax on the very wealthiest Americans. Instead, Boehner and the rest of the House GOP want to hold the nation’s infrastructure hostage to their Big Oil agenda.

Security

Rep. McKeon: Government Spending Can Create Only Defense Industry Jobs

Rep. Howard “Buck” McKeon (R-CA) is an outspoken opponent of the Obama administration’s stimulus plan and toed the House Republican line that government spending doesn’t lead to job growth. But McKeon’s ideological commitment to a conservative fiscal policy has a major caveat — military spending. At a hearing last week, McKeon said:

We don’t spend money on defense to create jobs. But defense cuts are certainly a path to job loss, especially among our high-skilled workforces. There is no private sector alternative to compensate for the government’s investment. [...] While cuts to the military might reduce federal spending, they harm national security and they definitely don’t lead to job growth.

But McKeon’s apparent endorsement of government spending leading to job growth isn’t a position he typically takes. The “Issues” section of his congressional website states:

Congressional Democrats and the Administration continue to insist that we can spend our way out of this recession and create jobs, but the numbers just don’t add up. [...] Rather than spending money we don’t have for government programs, a job-killing government-run health care system, and a national energy tax, it’s time for policies that empower small businesses, restore consumer confidence, and create private-sector jobs.

The Associated Press asked McKeon about the apparent contradiction in his defense of military spending and opposition to federal spending to create jobs. McKeon spokesperson Claude Chafin told them:

[The statements] were “not inconsistent” becaues the defense industry is a unique recipient of federal dollars.

It actually turns out that McKeon is a unique recipient of defense industry dollars. Indeed, the House Armed Services Committee chairman’s sudden support of government led job creation when the defense budget is under attack should come as no great surprise. According to OpenSecrets.org, McKeon is the top Congressional recipient of defense industry campaign contributions, collecting over $250,000 from the industry in the 2011-2012 election cycle and over $1 million over the course of his career.

NEWS FLASH

Google Considering Abandoning U.S. Chamber Of Commerce | Last month, tech giant Yahoo! quietly left the U.S. Chamber of Commerce due to differences with the Chamber over a bill that would force search engines to police activities on other websites. Politico reported today that Google is mulling a similar action: “A source close to Google said the company is ‘frustrated’ about paying dues to an organization promoting legislation that would ‘impose new liabilities’ on Google.” According to U.S. Chamber Watch, more than 50 local Chambers of Commerce and a dozen major corporations “have abandoned or disavowed the U.S. Chamber for their radical positions and pay-to-play model.”

Romney Calls Reducing Deficits ‘A Moral Responsibility,’ After Proposing $6 Trillion In Deficits

Former Gov. Mitt Romney (MA) has pegged his latest campaign push to deficits, taking a shot at Gov. Rick Perry’s (R-TX) seeming disregard for balancing the country’s accounts. Today, Romney will be laying out a plan that he claims will cut $500 billion from the deficit in 2016; his biggest cut is block granting Medicaid, while pretending that repealing the Affordable Care Act saves money. Other than that, Romney’s “savings” come from favorite conservative bogeymen like Amtrak and the National Endowment for the Arts.

During an event in New Hampshire last night previewing today’s release of his plan, Romney explained that, in his view, reducing the deficit is “a moral responsibility“:

We have a moral responsibility not to spend more than we take in, we have a moral responsibility not to pass onto our kids the spending of our generation,” he said. “It is a moral responsibility to believe in fiscal responsibility. We do, and I do.”

However, if it’s a moral responsibility to reduce the deficit, Romney may need to spend some time in an ethics course. He envisions federal spending at 20 percent of GDP, but his tax plan, as we found, will raise less than 17 percent of GDP in revenue. As Michael Linden has explained, the result of Romney’s plan “would be continued unsustainable deficits and more debt. In fact, Romney’s plan would yield approximately $6.5 trillion in deficits from 2013 through 2021.”

The revenue Romney envisions is “below the levels suggested by the House Republican Budget, which abolished Medicare as we know it, slashed Medicaid, and still didn’t balance the budget until 2040.” Nibbling away at Amtrak subsidies and slashing health care spending for low-income Americans doesn’t change the fact that Romney’s plan lets the richest Americans avoid paying their fair share, resulting in loads of red ink.

NEWS FLASH

80,000 Jobs Created Last Month, Unemployment Rate Ticks Down To 9.0 Percent | According to the latest report from the Bureau of Labor Statistics, 80,000 jobs were added to the economy last month, and the unemployment rate ticked down to 9 percent. Analysts had expected around 95,000 new jobs. The private sector added 104,000 jobs, while the public sector continued to shrink, losing 24,000 jobs. The wider U6 measure of underemployment fell slightly to 16.2 percent. August’s jobs creation number was revised up to 104,000 from 57,000 and September’s was revised up to 158,000 from 103,000.

Econ 101: November 4, 2011

Welcome to ThinkProgress Economy’s morning link roundup. This is what we’re reading. Have you seen any interesting news? Let us know in the comments section. You can also follow ThinkProgress Economy on Twitter.

  • Senate Republicans, joined by Sens. Ben Nelson (D-NE) and Joe Lieberman (I-CT), yesterday filibustered the latest part of President Obama’s jobs plan, $60 billion in infrastructure funding. [Washington Post]
  • Greek Prime Minister George Papandreou faces a confidence vote in Parliament today, one day after scrapping a referendum on the EU’s proposed financial rescue. [CNBC}
  • Next week, the Census Bureau plans to release "a long-promised alternate measure meant to do a better job of counting the resources the needy have and the bills they have to pay." [New York Times]
  • Congressional lawmakers “are already talking about reversing the automatic spending cuts to defense and domestic programs that would go into effect if the supercommittee doesn’t find at least $1.2 trillion in deficit cuts by Nov. 23.” [Politico]
  • Groupon yesterday “raised $700 million after increasing the size of its initial public offering, becoming the largest IPO by an Internet company since Google Inc raised $1.7 billion in 2004.” [Reuters]
  • Bank of America “had trading losses on 20 days in the third quarter, led by a $119 million drop on one day, the largest single-day hit since 2008.” [Bloomberg]
  • A pair of Senate Democrats “are pressing financial institutions to adopt a one-page form that details fees on checking accounts.” [The Hill]
  • The Swiss government “has proposed a multibillion-dollar settlement with U.S. authorities over allegations that it helped wealthy Americans avoid billions of dollars in U.S. taxes.” [Reuters]
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