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Thirty-five percent of New Jersey conservative voters think Obama may be the Anti-Christ.

A new Public Policy Polling survey of New Jersey voters has some shocking results: 21 percent either believe or aren’t sure that President Obama is the Anti-Christ. Twenty-nine percent of Republicans and 35 percent of “conservative” voters also either believe he is or aren’t sure.

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Not surprisingly, this meme has also been pushed by Fox News host Glenn Beck, who brought on controversial pastor John Hagee last year and asked, “There are people– they say this about Bill Clinton — he might be the Antichrist. Odds that Barack Obama is the Antichrist?

Yglesias

Baucus’ Free Rider Provision

I’ve raised concerns in the past about Max Baucus’ preference for a “free rider” provision instead of an employer mandate. The way an employer mandate would work is that every employer with more than such-and-such number of employees would either need to offer health insurance to its employees or else would have to pay a fee. The fee would provide the government with revenue that helps offset the cost of subsidies for the uninsured to get insurance on the individual market. If you were designing a system from scratch, instead of doing this you would have a payroll tax on all employers and use the money to offer subsidies to everyone. But since we don’t want to start from scratch, and also don’t want to disrupt people’s existing coverage, the employer mandate more-or-less accomplishes the same stuff.

Instead of that, though, what Baucus (apparently at the behest of Olympia Snowe) wants to do is just put a special fee on employers who don’t offer insurance whose employees are subsidy-eligible. Instead of something that resembles a payroll tax, this is basically a tax on employing poor people. Ezra Klein explains that this has now been tweaked in a strange way:

The employer doesn’t just pay $400 per low-income employee. He pays “$400 multiplied by the total number of employees at the firm (regardless of how many are receiving the state exchange credit).” The bill actually gives an example of how this works: Employer A has 100 employees and does not offer health-care coverage. Thirty of the employees receive subsidies on the exchange. Employer A doesn’t pay $400 x 30 employees, but $400 x 100 employees, for a total of $40,000.

Ezra calls this “one of the worst policy ideas I’ve ever seen. It creates a huge incentive to build a workforce that entirely excludes low-income workers.” Maybe. Another way of looking at it is that arguably making it $400 * X makes the plan look more like a straight-up employer mandate rather than a special tax on employing low-income individuals. Another thought is that this is going to create a lot of incentives to fiddle with corporate organization. If I employ 100 people, of whom 20 are subsidy-eligible, it’s now going to make a lot of sense to see if I can’t set up a separate firm that employs 20 people, is wholly owned by me, and contracts with a second me-owned firm that employs the other 80 people.

Update

Check out CBPP’s statement on this:

Also problematic is the plan’s “free rider” provision, which would require employers who do not offer health coverage to pay substantial amounts for low- and moderate-income employees who receive subsidies to buy coverage in a health insurance exchange — but not to pay anything for employees who do not get subsidies. (It also would require employers who do offer coverage to pay if some of their workers receive subsidies because the employers’ coverage is not considered affordable for them.) And by requiring employers to pay extremely large amounts for hiring individuals who receive subsidies for family coverage in the exchange, the provision would make it harder for some lower-income parents with children to find jobs. This provision also would place significant administrative burdens and costs on employers because it would be complex to administer.

Their more formal analysis of the “free rider” issue is also worth reading.


Update

,A bunch of stuff is struck out now, as Ezra misunderstood it. His post is now corrected. Unfortunately, the truth doesn’t solve the problem:

So in the scenario where Baucus Corp. has a lot of low-income workers, they cost a huge amount overall because they’re multiplied against the total number of workers. In the scenario where Baucus Corp. has a few low-income workers, they cost a huge amount individually because they’re multiplied against the average subsidy cost. No matter how you look at it, the policy makes it profitable for employers to discriminate against hiring low-income workers.

Normal employer mandate would be better.


Update

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Yglesias

Bike/Ped Safety Funds Survive Senate Vote

CalTrain station, Menlo Park, CA (cc photo by Richard Masoner)

CalTrain station, Menlo Park, CA (cc photo by Richard Masoner)

Elana Schor reports on failed efforts to strip funding for bicycle and pedestrian safety in the Senate:

Sens. Amy Klobuchar (D-MN) and Jim Webb (D-VA) voted with Coburn to allow states to opt out of a current mandate to spend 10 percent of federal transportation aid on bike and pedestrian paths, bike-ped safety education, and other programs.

Coburn’s amendment fell short by a vote of 39-59, with three other Democrats, Sens. Russ Feingold (WI), Evan Bayh (IN), and Claire McCaskill (MO), also aligning with the majority of Republicans in favor of the opt-out.

Shame on everyone. Small amounts of money to promote walking and cycling are good for the environment and for public health.

On a related note, I look forward to the day when the Cato Institute does a blog post denouncing each and every publicly financed parking lot or garage in the United States of America. Somehow I think that if we equalized public funding for car park and bike parking at $0 that would on net work to the advantage of non-drivers.

Politics

ACORN announces internal investigation.

In response to recently released videos of ACORN staff engaging in inappropriate and potentially unlawful activity, White House Press Secretary Robert Gibbs said today that “the conduct you see on those tapes is completely unacceptable.” ACORN President Bertha Lewis released a statement explaining that the advocacy group for low- and moderate-income Americans will now conduct a “thorough review” of the organizations’ operation:

acorn1As a result of the indefensible action of a handful of our employees, I am, in consultation with ACORN’s Executive Committee, immediately ordering a halt to any new intakes into ACORN’s service programs until completion of an independent review. I have also communicated with ACORN’s independent Advisory Council, and they will assist ACORN in naming an independent auditor and investigator to conduct a thorough review of all of the organizations relevant systems and processes. That reviewer, to be named within 48 hours, will make recommendations directly to me and to the full ACORN Board. We enter this process with a commitment that all recommendations will be implemented.

CAP President John Podesta, who also sits on ACORN’s Advisory Council, said, “Accountability starts with knowing all the facts. ACORN, which is doing important work in advocating for lower-income Americans all across this country, is taking an important step today by acknowledging its need for reform and demonstrating its desire to take corrective action.”

Security

Bipartisan Policy Center: Preparing For Engagement To Fail

BPC Iran Rpt Cover_0Last fall, the Bipartisan Policy Center released a report on Iran entitled Meeting the Challenge, the work of an independent task force co-chaired by former Senators Dan Coats and Charles Robb. The report asserted that a nuclear weapons-capable Iran posed unacceptable risks to the United States, and that if talks and sanctions failed to deter Iran from that path — as the report clearly assumed they would — then the U.S. should be prepared to seek a military solution. As Ilan Goldenberg noted at the time, the project’s “bipartisan” nature was somewhat questionable, given the heavy emphasis on military action as well as the involvement of neocons Michael Rubin and Michael Makovsky. The strategy advocated in the report, Ilan wrote, “would escalate U.S.-Iran tensions and pretty much guarantee that any direct talks would fail.”

So it is with the BPC’s updated report, released yesterday and subtitled Time is Running Out (pdf). While assuring us that they support the Obama administration’s policy of engagement, the authors reassert the unacceptability of an Iranian nuclear weapons capability, and advocate the preparation of harsh sanctions, as well a military option:

If by the end of 2009, the United Nations and European Union do not impose significant, binding sanctions, or if they do but Tehran does not demonstrate substantive progress and cooperation in reversing its policy on nuclear development, then we believe the Obama Administration should elevate consideration of the military option. In this regard it is necessary to make clear that the U.S. military is more than capable of launching a devastating attack on Iranian nuclear and military facilities than either Iranian officials or many journalists realize.

Speaking at the report’s release yesterday on Capitol Hill, (introduced by Senators John Kyl and Joe Lieberman, with Evan Bayh a last minute no-show) Gen. (ret) Charles Wald reiterated points he had made in a previous op-ed, saying that it was important to publicly “think through scenarios for kinetic action,” in order to prove to Iran that the U.S. was “serious” about the use of the military option, if it should come to that.

I asked Gen. Wald whether the fact that the U.S. has, within the last eight years, invaded and occupied countries on either side of Iran, and maintains a sizable military presence in both places, wasn’t a pretty fair demonstration of “seriousness” (if not good judgment)? Iran must know that we maintain a pretty robust air strike capability — something Wald acknowledged — so why the need to rattle the saber?

“It’s a question of will,” Wald replied. Iran may know that we have the capability to strike, but they need to be made to believe that we will do it.

Leaving aside whether we actually will, or should, do it, an obvious problem here, one that the report does not address, is the possibility, even the likelihood, that making a lot of noise about war with Iran while simultaneously engaged in talks to avoid war with Iran could convince the Iranians that we’re intent on making war on Iran. And Iranians don’t have to look very far back to see almost this exact scenario played out in regard to Iraq, as the Bush administration pretended to be interested in letting inspections work even as it built public support for a war that it had in fact already decided to wage.

This bit from the report is also worth highlighting:

Although technically an act of war, the White House might consider first placing a naval blockade to cut off Iran’s importation of gasoline, before resorting to a military strike. If the Islamic Republic persists in its nuclear ambitions, the Pentagon could initiate air strikes targeting key military and nuclear installations, although not civilian facilities, without initially involving ground troops beyond Special Forces. While a successful bombing campaign would set back Iranian nuclear development, Tehran would clearly retain its nuclear know-how. It would also necessitate years of continued vigilance, both to retain the ability to strike previously undiscovered sites and to ensure that Iran does not revive its military nuclear program.

And that’s the best-case scenario.

I also doubt Iran would be inclined to make the sort of distinction between “technical” and “actual” acts of war that the report proposes. But, of course, when they treat the blockade as an actual act of war — which it is — that can be used as proof that the Iranians want war. What could possibly go wrong?

Reached for comment, Richard Parker of the progressive American Foreign Policy project — which released its own report (pdf) on Iran earlier this year — said that “No one should approach talks with Iran with a naive belief that they are sure to succeed and with no contingency plan should they fail. But that’s not the same thing as openly predicting failure and ostentatiously planning for conflict before talks have even begun. The latter is bad faith. It’s a transparent effort at intimidation that looks very much like an ultimatum. And it will backfire.”

“‘Belligerent negotiation,’” said Parker, “is a self-defeating strategy on every level.”

Climate Progress

CBSs Declan McCullagh promotes another fossil-fuel-funded, falsehood-filled CEI attack on clean energy reform

You’d think the serious media (and politicians) would treat with some skepticism the disinformation issued regularly by the Competitive Enterprise Institute, which runs fossil-fuel-funded, falsehood-filled ad campaigns aimed at destroying the climate for centuries.  But as Brad Johnson shows in this Wonk Room piece, the pathological disinformers of CEI are still treated as if they had the credibility of, say, a CSI pathologist.

Drudge Report promotes false McCullagh storyAccording to Declan McCullagh, a libertarian blogger who works for CBS Interactive, secret Obama administration documents reveal that the cost of clean energy cap-and-trade legislation would be $1,761 per household “” despite official estimates from the Environmental Protection Agency, the Congressional Budget Office, and the Energy Information Administration of about a postage stamp a day [see summaries and links below]. Based on Treasury Department documents acquired by the Competitive Enterprise Institute (CEI), McCullagh claims that “a cap and trade law would cost American taxpayers up to $200 billion a year, the equivalent of hiking personal income taxes by about 15 percent“:

The Obama administration has privately concluded that a cap and trade law would cost American taxpayers up to $200 billion a year, the equivalent of hiking personal income taxes by about 15 percent. A previously unreleased analysis prepared by the U.S. Department of Treasury says the total in new taxes would be between $100 billion to $200 billion a year. At the upper end of the administration’s estimate, the cost per American household would be an extra $1,761 a year.

This is pure twaddle. McCullagh is confabulating a “disclosure” out of whole cloth:

Obama’s Plan Would Have Established Tax Cuts For Working Families. In his State of the Union address, President Obama proposed a green economy plan that would create a $100 to $200 billion carbon market and use the money raised from polluters for middle class tax cuts.

Congress Did Not Adopt President Obama’s Plan. The Waxman-Markey American Clean Energy and Security Act (ACES) is comprehensive clean energy legislation, coupling the carbon market with national renewable energy and energy efficiency standards. Unlike Obama’s plan, the ACES Act would establish a more limited carbon market, distribute most permits for free to polluting industry, with provisions that compel utilities to pass along their value to ratepayers, and provide further assistance for low-income consumers. One can’t use an analysis of Obama’s proposal to calculate the economic benefits of the legislation now being considered.

The American Clean Energy and Security Act Builds A Clean Economy For A Postage Stamp A Day. The EPA estimates a net cost of about $100 per household per year, which would be fully offset for lower-income consumers. The Congressional Budget Office “” which did not consider the energy efficiency measures or the cost of inaction “” determined “that the net annual economywide cost of the cap-and-trade program in 2020 would be $22 billion””or about $175 per household.”

The American Clean Energy and Security Act Cuts Electricity Bills And Dependence On Foreign Oil. The EPA has found that Waxman-Markey cuts household electricity bills by seven percent by 2020. The EIA found the legislation would save Americans $5,600 per household in reduced dependence on foreign oil.

To come up with false claim that Obama’s plan was “the equivalent of hiking personal income taxes by about 15 percent,” McCullagh ignored where the money would come from “” polluting industries with billions of dollars in annual profits “” and where the money would go “” tax cuts for working people.

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Yglesias

SAFRA

In non-health care domestic policy news, today the House is going to be moving forward on the Student Aid and Fiscal Responsibility Act, SAFRA, which is aimed primarily at eliminating the waste involved in federal funding of the for-profit student loan agency. The money saved by just doing the lending directly can then be plowed into other worthy endeavors, like more Pell Grants:

obamapellgrants2010-2019-thumb-500x241-366-thumb-500x241-367

The bill also has an important early education component despite being primarily a higher education issue. Basically, a chunk of the money is going to finance challenge grants to states to work on improving quality in early education programs. There’s a considerably body of research indicating that high-quality preschool can do wonders for kids’ performance down the road. But that research has spurred a lot of expansion of early education programs that don’t necessarily keep their eyes on the quality ball. Cutting corners can save money and/or political headaches, but it’s a major case of penny wise point foolish. A preschool program that works is worth investing a lot of money in, but a preschool program that doesn’t work is useless. The idea here is that by giving states an incentive to refocus on quality issues, they can spur the reallocation of money in more useful ways.

Economy

The Fed Tries To Defend Its Turf By Promising To Regulate Subprime Lenders

Federal_ReserveYesterday, the Federal Reserve announced that, henceforth, it is going to extend its consumer protection oversight to the non-bank subsidiaries of banks, which as the Washington Post noted, is “a group of lenders that includes several major originators of subprime loans.” The Fed intends for the announcement to indicate its newfound seriousness regarding consumer protection:

The policy, which will take effect immediately, also provides for the investigation of consumer complaints against these nonbank entities…The policy announced today builds upon the groundwork of the pilot program and responds to a need for more effective supervision and consumer protection.

But this move seems to be aimed more at fending off the drive to take away the Fed’s consumer protection responsibilities (via creation of a Consumer Financial Protection Agency or CFPA) than any meaningful change of heart on the Fed’s part. “Is this trying to make up for the vulnerable position they’re in?” asked Cornelius Hurley, a professor at the Boston University School of Law and a former Fed lawyer. “It certainly sounds that way.” Federal Reserve Chairman Ben Bernanke has been vociferously opposed to the CFPA proposal. “I understand why some would want to see a new agency that would be fully committed to this area. And, I’m not criticizing that,’’ Bernanke has said. “I’m simply saying that…we believe we can continue to do good work in this area.’’

The Fed’s new policy announcement actually fits in perfectly with the Fed’s tendency to announce consumer protection initiatives long after the horse has already left the barn. For instance, the Fed was warned about the spread in subprime and predatory lending by the Greenlining Institute in 2004, and by Edward Gramlich, a member of the Reserve Board itself, in 2005. However, it didn’t get around to issuing its “Guidance on Nontraditional Mortgages” until September, 2006, at which point subprime loans constituted 20 percent of mortgage originations, totaling $600 billion. Even then, the guidance was a list of best practices, not a ban on predatory products.

Jim Carr, of the National Consumer Reinvestment Coalition, said that, “even if the Fed were proposing a regime that was as comprehensive as the law, it wouldn’t take away the inherent conflicts between the Fed’s support for the banks versus its protection of consumers.” Indeed, it’s fine if the Fed wants to take a stab at policing predatory lending, but it has shown no competency in that area in the past, so the drive to create the CFPA shouldn’t get hung up by the Fed’s promises.

Economy

Health Insurance Stocks Rally With Release Of Baucus Health Bill

Earlier this morning Senate Finance Committee Chair Max Baucus (D-MT) unveiled his committee’s health care bill, which has no public option and mandates that everyone buy insurance. While Baucus has failed to garner support from any congressional Republicans and has outraged progressives, there has been one very positive response to his proposal.

Following Baucus’ announcement, HealthNet shares increased by 3%, United Health Group Inc shares rose by 2.7%, Humana Inc. grew by 2.6%, Wellpoint stock gained 1.7% and Aetna Inc rose 1.6%:

InsurerProfits

Earlier this week, ThinkProgress interviewed Wendell Potter — a former health insurance executive — who pointed out that “every time there is an article in a big newspaper questioning the success of progressives in getting a good bill passed, the stock will go up.” “The analysts/investors don’t think any good reform is going to happen, or anything that would happen that would adversely affect the insurance companies,” he said. Watch it:

In fact, since the President signaled that he is backing away from the public option, health insurance stocks have been on the rise. “Health-care investors are starting to breathe a sigh of relief as they feel the worst case could be averted,” John Sullivan, director of research at Leerink Swann, told the Wall Street Journal in August. “Health-care stocks have risen 22% since late February, when President Barack Obama began his push for an overhaul; the overall market is up 38%” between late February and August.

Climate Progress

Energy and Global Warming News for September 16: World Bank spends billions funding coal-fired power while warning of impending catastrophe; Australia beats out U.S. for lead in per capita CO2 emissions

The World Bank is subsidising giant coal-fired power stations despite acknowledging the impact of carbon dioxide emissions on developing countries

World Bank spends billions on coal-fired power stations despite own warnings

The World Bank is spending billions of pounds subsidising new coal-fired power stations in developing countries despite claiming that burning fossil fuels exposes the poor to catastrophic climate change. The bank, which has a goal of reducing poverty and is funded by Britain and other developed countries, calls on all nations in a report today to “act differently on climate change”.

It says that the world must reduce its dependence on fossil fuels, but it is funding several giant coal-burning plants that will each emit millions of tonnes of carbon dioxide a year for the next 40 to 50 years.

Britain is contributing £400million to a World Bank fund that claims to support “clean technology” but is financing coal power plants.

The bank’s World Development Report says: “Developing countries are disproportionately affected by climate change “” a crisis that is not of their making and for which they are the least prepared. Increasing access to energy and other services using high-carbon technologies will produce more greenhouse gases, hence more climate change.”

…  The report says that unless the world acts now to cut carbon dioxide emissions it faces a 5C (9F) rise in global temperatures by the end of the century. “Such a drastic temperature shift would cause the possible dieback of the Amazon rainforest, complete loss of glaciers in the Andes and Himalayas, and rapid ocean acidification leading to death of coral reefs,” it says.

“The speed and magnitude of change could wipe out more than 50 per cent of species. Sea levels could rise by one metre this century, threatening 60 million people. Agricultural productivity would likely decline throughout the world and over three million additional people could die from malnutrition each year.”

The 260-page report advises against “locking the world into high-carbon infrastructure” but makes no mention of the bank’s plans to subsidise coal power plants in India, South Africa, Botswana and other developing countries.

Last year the bank and its partner, the Asian Development Bank, approved $850million in loans to finance a coal-fired plant in Gujarat, western India.

The Environmental Defence Fund, a US lobby group, said that the plant, the first of nine planned in India, would be one of the biggest new sources of greenhouse gases on Earth, emitting 26.7million tonnes of CO2 a year for the next 50 years.

The bank is also contributing $5billion towards South Africa’s power generation expansion plan, which includes six coal plants.

Doh!

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