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NEWS FLASH

Regulators Missing Many Wall Street Reform Deadlines, As GOP Cuts Their Budgets | According to a new report, more than one-third of the new rules mandated by the 2010 Dodd-Frank financial reform law have yet to be written. The Securities and Exchange Commission has missed 71 percent of its rule-writing deadlines. At the same time, Congressional Republicans are attempting to cuts the budgets of Wall Street regulators, even though the Republican House Financial Services Committee Chairman admitted the regulators don’t have enough resources to do their jobs. President Obama has threatened to veto efforts to defund Wall Street reform.

VIDEO: Catholic Nuns Finish Bus Tour By Blasting ‘Immoral’ House GOP Budget At D.C. Rally

Sr. Diane Donoghue speaks at the Nuns on the Bus rally in Washington DC today

The Catholic nuns who began the “Nuns on the Bus” tour across the United States to protest cuts contained in the House Republican budget ended that tour today, blasting the GOP budget as “immoral” across from the U.S. Capitol. With more than a hundred supporters waiting outside the United Methodist center near the Capitol, the nuns criticized Rep. Paul Ryan (R-WI), the author of the budget, for using Catholic social teaching to justify its cuts.

“Faced with long-term debt problems, they say we must immediately slash protections for the poor, even as they fight tooth and nail for trillions of dollars in tax cuts for the wealthy and explode the debt at the same time,” Sister Simone Campbell said. “And then they line the pockets of the wealthiest one percent in our nation. This is wrong. And they’re doing it under the guise of fiscal austerity.”

“I’m not going to stand here and say the Ryan budget is moral. It’s immoral!” Sister Diane Donoghue added. “That’s all there is to it. And we stand with our bishops when we say that. It is immoral.” Watch it:

The nuns visited 10 Congressional offices, including Ryan’s, in nine different states during the bus tour. At each stop, they said they heard stories from vulnerable people whose lives would change for the worse if the GOP budget became law.

The nuns received widespread support; 75 members of Congress recently thanked them for embarking on the tour. As ThinkProgress has noted, the Republican budget finds 62 percent of its spending cuts from programs that benefit the poor and would kick millions of Americans off of food stamps and other programs.

“The Ryan budget would slash food stamps, it would slash Medicaid, it would slash a lot of domestic programs that benefit low-income people, affordable housing programs that [the Dept. of Housing and Urban Development] does,” Sister Richelle Friedman said. “So this is just really critical.”

Though Ryan attempted to justify the budget with Catholic social teaching, the U.S. Conference of Catholic Bishops circulated letters urging members of Congress to vote against it, calling its cuts to safety net programs “unjustified and wrong.” Other religious leaders also condemned it.

-Steven Perlberg contributed to this report.

Education

Why Romney’s Education Policies In Massachusetts Are Called ‘Inconsequential’

When Mitt Romney discusses education on the campaign trail, it’s usually to discuss higher education, and his belief that students should just “shop around,” borrow money from their parents, or join the military in order to obtain a college degree. When he does turn to K-12 education, it is to explain his belief that more should be done at the local level, touting his experience as governor of Massachusetts.

But as the Boston Globe profiled today, there is a “wide disconnect” between the success Romney touts and what actually occurred in Massachusetts, with one expert calling Romney’s tenure “inconsequential” when it came to education:

Running for president, Romney boasts of a record as an educational innovator, but a review of his efforts to impose changes on Massachusetts public schools reveals a wide disconnect between what he says on the stump and what he accomplished during his single term in office.

While he is widely credited for holding out for high standards and more charter schools, the high-profile initiatives proposed by the former private-equity businessman — much of it driven by the Republican orthodoxy of the time — suffered from a variety of practical problems. [...]

“His impact was inconsequential,” said Glen Koocher, executive director of the Massachusetts Association of School Committees. “People viewed his proposals as political talking points, and no one took Romney seriously. What he gets credit for is absolutely refusing to compromise on everything he wanted to do from the moment he took office, and some people think that’s commendable.”

Two programs in particular — one to help non-English speakers and another that provided college scholarships — did not actually live up to the hype. Here’s a chart showing that, while Massachusetts certainly did not suffer under Romney’s tenure, neither did it improve substantially:

“I know what it is like to be a Governor fighting to do things differently,” Romney said in a high-profile education speech. But it turns out that he really doesn’t.

In England, Austerity For Everything Except The Olympics

Austere spending policies officially pushed the United Kingdom back into a recession in April, and thanks to British Prime Minister David Cameron’s insistence on continuing austerity, the UK is experiencing a slower, more sluggish recovery than the one that followed the Great Depression. This austerity has not spread to the 2012 London Olympic Games, which are now set to be the most over-budget games in nearly two decades, Bloomberg reports:

The London 2012 summer Olympics are on course to be the most over-budget games for 16 years after organizers failed to forecast demands for security and private investment, according to a study by the University of Oxford.

The sports-related expense of hosting in the British capital is likely to cost more than twice the original estimate, researchers from the university’s Said Business School said in a paper. That’s the most since the 1996 summer Olympics in Atlanta, when costs overran by 147 percent.

In 2007, the British government tripled its original budget for the games to £9.3 billion ($14.5 billion). The true cost for taxpayers could end up being nearly £12 billion, Sky Sports News found in January. According to that investigation, the total taxpayer cost of the games could burgeon to £24 billion ($37.5 billion), counting increased spending on security and infrastructure aimed largely at the Olympics.

The British have pitched the games, as governments always do, as a benefit to the local economy. “The £300m already spent on tickets also means the economy is guaranteed to grow by 0.1pc during London 2012, while surveys say overseas visitors will spend around £700m,” according to the Telegraph, and Visa Europe estimates the games will generate £804 million in short-term consumer spending and £5.33 billion ($8.3 billion) over the next four years.

Assorted studies of major sporting events have shown that these estimates, however, are almost never accurate. Much of the estimated spending would have likely occurred anyway, either by British citizens or tourists who normally visit the British Isles in the summer months. Visitors to Great Britain, for instance, spend roughly £18 billion a year, more than 25 times as much as they’re estimated to spend at the Olympics. Other sectors of the British economy, meanwhile, will suffer because consumers will stay away to avoid Olympic crowds. Greek officials actually estimated a 10 percent fall in tourist visits during the 2004 Athens Olympics.

Some of the spending induced by the Olympics, such as the money aimed at improving public transportation and other infrastructure projects, will indeed benefit the British economy. But in terms of the country’s overall health, using money spent on the Olympics on targeted stimulus to combat the recession and sluggish recovery would have been a much better investment.

NEWS FLASH

Banks Fight New Foreclosure Regulations In States Across The Country | Twenty-five states are currently considering legislation that would make changes to foreclosure law, but they are running up against opposition from familiar foes: the banking and mortgage industries. California, a state with “bank-friendly mortgage regulations,” could pass new laws backed by Attorney General Kamala Harris (D) today, and New York is considering criminalizing the forgery of foreclosure documents. Others are seeking to simplify the loan modification process and to give borrowers the right to sue banks. Banks, many of which pushed predatory, fraudulent, or discriminatory loans in the run-up to the foreclosure crisis, are predictably opposing the new laws, saying “every single penny” of the cost of new laws “will be borne by tomorrow’s borrowers,” the Wall Street Journal reports.

Politics

Top Romney Adviser Breaks With Entire Republican Party: The Individual Mandate Is Not A Tax

Mitt Romney campaign adviser Eric Fehrnstrom said the governor disagrees with Republicans’ claim that the individual mandate is a “tax,” contradicting the party message since the Supreme Court ruled that Congress had authority to mandate people purchase insurance under the taxing power.

“The governor disagreed with the ruling of the Court,” Fehrnstrom said, “he agreed with the dissent, which was written by Justice Scalia, which very clearly stated that the mandate was not a tax”:

TODD: The governor does not believe the mandate is a tax — that’s what you’re saying?

FEHRNSTROM: The governor believes what we put in place in Massachusetts was a penalty and he disagrees with the Court’s ruling that the mandate was a tax. [...]

TODD: But he agrees with the president that it is not — and he believes that you should not call the tax penalty a tax, you should call it a penalty or a fee or a fine?

FEHRNSTROM: That’s correct. But the president also needs to be held accountable for his contradictory statements. He has described it variously as a penalty and as a tax. He needs to reconcile those two very different statements.

Watch it:

Republicans have seized on the Supreme Court’s decision to claim that the mandate is a “massive tax hike” on the middle class, labeling it the “largest tax increase in history.” But Romney — who instituted a similar requirement in Massachusetts — insisted as governor that the penalty is a way to discourage free-riders and is not a new tax on families.

Update

Greg Sargent notes that Romney himself has referred to the penalty as a “tax” penalty.

Update

The Romney campaign doubles down:


Republicans Falsely Claim Obamacare Is The ‘Largest Tax Increase In History’

Having lost the argument over the constitutionality of the Affordable Care Act, Republicans are now seizing on the fact that the law was upheld under Congress’ taxing power to falsely claim that it is a “massive tax hike” on the middle class. And some Republicans have gone even further, claiming that the law is the “largest tax increase in history.” As Rep. Marsha Blackburn (R-TN) said today on CNN:

BLACKBURN: Uh, we said all along it was a tax. And as I was out over the weekend at farmer’s markets and at church and at the grocery store and visiting with constituents, so many people said, ‘You know, back in August ’09, we were all saying that this seemed to be a tax,’ and if it was a tax, then this was going to be the largest tax increase in history. Indeed it was, and is.

Watch it:

Actually, as a percentage of the economy (which is the proper way to measure the size of a tax increase), the taxes in Obamacare are smaller than those in several tax packages of the last half century, including President George H.W. Bush’s in 1990, President Bill Clinton’s in 1993, and President Ronald Reagan’s in 1982. And of course, Obamacare will actually cut taxes for millions of middle class families. The bulk of the Affordable Care Act’s tax increases are on upper-income Americans.

The Incidental Economist put together this chart showing the difference:

Econ 101: July 2, 2012

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.

  • Euro zone unemployment hit a new record high of 11.1 percent last month, according to the latest data. [Washington Post]
  • According to the Congressional Budget Office, the transportation bill approved by Congress last week will reduce the deficit by $16.3 billion over the next ten years. [The Hill]
  • Five more states have received waivers from mandates in the No Child Left Behind education law. [Education Week]
  • The chairman of Barclay’s is stepping down, as the bank deals with the fallout of an interest rate fixing scandal. [Wall Street Journal]
  • A judge has struck down a crucial portion of the Obama administration’s new regulations governing predatory for-profit colleges. [Inside Higher Ed]
  • Unions in Los Angeles are pressuring politicians to return their political donations from Walmart. [Wall Street Journal]

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