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City Officials Tell Chick-Fil-A They Are Not Welcome In Wake Of Homophobic Comments By Company President

Boston's Democratic Mayor Thomas Menino

Chick-Fil-A’s plans to expand into one of the nation’s largest cities has hit a snag, after Boston Mayor Thomas Menino sent a scathing letter to company president Dan Cathy informing him that so long as the company remained intolerant of the LGBT community, Boston would remain intolerant of Chick-Fil-A.

In a letter dated July 20, Menino writes:

You called supporters of gay marriage “prideful”. Here in Boston, to borrow your own words, we are “guilty as charged.” We are indeed full of pride for our support of same sex marriage and our work to expand freedom to all people. We are proud that our state and our city have led the way for the country on equal marriage rights.

Chick-Fil-A had reportedly been seeking property along the city’s famous Freedom Trail, a tourism hotspot and prime real estate for businesses, for its first Boston location. But Menino has vowed to block any attempt by the company to open a new store. “There is no place for discrimination on Boston’s Freedom Trail and no place for your company alongside it,” he wrote in the letter.

Menino’s letter may have been just the first crack in the dam. Yesterday, Chicago alderman Joe Moreno made a similar pledge to block any attempts by the chain to build its second store in the city, proposed for the highly trafficked Logan Square neighborhood whose zoning is controlled by Moreno.

“If you are discriminating against a segment of the community, I don’t want you in the 1st Ward,” he said on Tuesday in an interview with the Chicago Tribune.

The chain, which has stores nationwide and currently ranks as the nation’s 10th largest fast food company, has found itself at the center of a maelstrom of criticism after Cathy’s remarks.

NEWS FLASH

Senate Rejects Republican Tax Plan, Accepts Democratic Plan | The Senate today voted down a tax plan crafted by Senate Minority Leader Mitch McConnell (R-KY) and Sen. Orrin Hatch (R-UT) by a vote of 45-54. The plan would have extended all of the Bush tax cuts — including those on income in excess of $250,000 — while eliminating tax credits that benefit 20 million working families. Due to an agreement with Democrats, the bill needed a simple majority, rather than a filibuster-proof supermajority, to pass. Sen. Mark Pryor (D-AR) was the lone Democrat to vote in favor of the plan, while Sens. Susan Collins (R-ME) and Scott Brown (R-MA) voted against it.

Update

The Senate accepted the Democratic tax plan, which extends the Bush tax cuts for income up to $250,000, by a vote of 51-48.

NEWS FLASH

Top Romney Foreign Policy Aide Refers To Russia As ‘The Soviet Union’ | Mitt Romney’s campaign often sounds like it still wants to fight the Cold War. Romney himself said that Russia is the U.S.’s “number one geopolitical foe” (a statement that even Colin Powell mocked) and back in April, a Romney adviser criticized President Obama’s “Czechoslovakia” policy. Today during a foreign policy debate at the Brookings Institution, senior Romney adviser Richard Williamson, attacking Obama’s Syria policy, said the Middle East country is “strategically important to the Soviet Union.” Watch the clip:

Economy

40 Economists Say The GOP Has Abandoned Economic Reality

A survey of forty economists from across the ideological and partisan spectrum has concluded that on some of its most cherished issues, the Republican Party has simply taken leave of economic reality. For instance, economists Betsey Stevenson and Justin Wolfers noted that one of the results from the survey — run by the University of Chicago’s Booth School of Business, which is hardly known for a left-wing slant — is an overwhelming agreement that the 2009 Recovery Act (i.e. the stimulus) brought down unemployment. But GOP leaders have spent years roundly denouncing the stimulus as a failure:

And while there was a bit more disagreement as to whether the benefits of the stimulus bill outweighed its costs, the bulk of the economists surveyed came down in the “Agree” or “Strongly Agree” camps. Other points from the survey’s respondents worth noting:

The nation needs new revenues. Contrary to nearly every Republican, the economists overwhelmingly agreed that the federal budget deficit cannot and should not be closed without increased tax revenue.

No gold standard. They roundly rejected the belief that a return to the gold standard would stabilize prices or lower unemployment. Enthusiasm for the gold standard made a significant comeback in Republican circles during the presidential primaries.

The “Laffer Curve” won’t help. Virtually all of them rejected the notion that cutting income tax rates would actually increase total tax revenue in future years.

Rethink the drug war. The respondents were also generally in favor of softer approaches to the nation’s drug problem.

While there were a few survey results that could be interpreted as hard on progressive causes as well, none struck at their heart in the same way as the positions taken on core Republican beliefs.

Health

Health Industry Targets Democrats For Supporting Obamacare

A powerful business lobby bankrolled by health insurance and pharmaceutical companies is running advertisements attacking Democrats for their support of the Affordable Care Act.

Pharmaceutical companies, like Merck and Eli Lilly, and insurance companies, including Aetna, Cigna, Humana, UnitedHealth and Wellpoint, all donated money — to the tune of at least $100 million — to the Chamber of Commerce. Those donations are now being used for election advertising to try to take down Democrats who supported the Affordable Care Act:

The U.S. Chamber of Commerce will air new ads hitting five Democratic Senate candidates and incumbents, ABC’s Chris Good reports. Targeting votes on health care, energy, and regulations, the Chamber will go after Sen. Bill Nelson of Florida, Sen. Jon Tester of Montana, Rep. Martin Heinrich of New Mexico, Sen. Sherrod Brown of Ohio and Rep. Tammy Baldwin of Wisconsin. Last week, the Chamber aired ads in New Mexico, Hawaii, Nevada, and North Dakota. In Montana, for example, the ad says, “For Jon Tester, there’s no hiding from the truth. He sided with Washington time and time again. Take the health care law. The people didn’t want it, yet Senator Tester cast a deciding vote, forcing it on Montana…”

The Chamber has been known for some shady advertising tactics in the past; the Denver Post determined that one of their ads on health care “leans deceptive.” The group’s practices are so questionable, in fact, that New York’s attorney general is investigating them for illegal funding practices.

Update

This post has been updated to reflect that Kaiser Foundation Health Plans did not donate any money to the Chamber of Commerce, and has not given any money outside of its yearly dues to AHIP.

NEWS FLASH

Obamacare Has Saved Seniors $4 Billion On Prescription Drugs | The Centers for Medicare And Medicaid Services (CMS) released data showing that over 5.2 million seniors and people with disabilities have already saved nearly $4 billion on prescription drugs as a direct result of the Affordable Care Act. The CMS data also showed that over 1 million people with Medicare saved an average of $629 on prescriptions in the “donut hole” coverage gap since the beginning of the year. So far in 2012, Medicare coverage for generic drugs in the coverage gap has risen to 14 percent, saving Medicare beneficiaries a total of $687 million. Over the next few years, the government will cover more and more of brand-name and generic drugs until the donut hole is closed in 2020.

Steven Perlberg

Security

Romney’s Stimulus: Government Spending On The Military Will Create More Jobs

Romney adviser John Lehman

A top foreign policy adviser to Mitt Romney told the National Journal that funding for social programs should be cut in order to stave off the looming military spending sequester. While Romney often says that “government doesn’t create jobs,” John Lehman, a special adviser to Romney and co-chair of his campaign’s Defense Working Group, admitted that more government spending will lead to more jobs, but claimed that investing in the military will generate more employment than spending on other domestic priorities:

If you want to reduce the impact of government cuts on creating jobs, you should be looking more at entitlements” than military spending, John Lehman – an investment banker, a former secretary of the Navy under President Reagan, and a special adviser and co-chair of Romney’s Defense Working Group – said in an interview. [...] Defense cuts particularly hurt the economy, Lehman said in an interview, because defense spending creates more jobs and growth per dollar than entitlements, such as Medicare, Medicaid, and Social Security.

“If your objective was to maximize jobs, you’d cut entitlements five times more than defense,” Lehman said, citing the fiscal multiplier and advocating the opposite distribution of spending reductions than agreed under the current package.

Conservatives have been arguing for quite some time that funding for programs like Medicare, Medicaid and Social Security should be cut in order to preserve the Pentagon’s bloated budget. John Bolton, another top Romney adviser, has even said that social programs should be cut in order to increase military spending.

But Lehman is wrong to say that military spending creates more jobs. A study released late last year by the University of Massachusetts, Amherst found that non-military spending can create more jobs than money going to defense programs. Averaged between the three domestic spending priorities of clean energy, health care, and education, those areas create about twice as many jobs per dollar spent as military expenditures, according to the study. Moreover, polling shows that Americans would rather cut the military budget in order to reduce the debt and deficit rather than take funding from public retirement and health programs.

And while the defense industry and its allies in Congress claim that the Budget Control Act’s mandated military spending cuts would create massive job losses and hurt the economy, some industry CEOs are starting to speak out, saying the apocalyptic warnings are overblown.

Lehman’s comments highlight the fact that, should be become president, Romney will increase military spending by nearly $2 trillion over the next decade, with no plan on how he will pay for it.

But at least the Romney campaign is now acknowledging that government spending creates jobs.

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