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Economy

Kyl Blocking Treasury Nominees Because He Doesn’t Like Internet Gambling

AP091001043792Sen. Jon Kyl (R-AZ) evidently doesn’t like online gambling very much, and in 2006, he helped craft a law banning the processing of online wagers. The law and its corresponding regulations were supposed to go into effect last month, but the Obama administration and the Federal Reserve pushed back the start-date until June.

Kyl doesn’t like the decision and is making his displeasure known by placing holds on pending nominations to the Treasury Department:

Senate Minority Whip Kyl is blocking pending Treasury Department nominees with jurisdiction over tax policy and international finance in response to the Obama administration’s delay of new Internet gambling prohibitions, according to Senate aides…Kyl was among the few arguing against a delay.

Now, I don’t have much of a position on these internet gambling regulations, but suffice to say, a six month delay in implementing them doesn’t seem like the end of the world — and it appears that most of the Senate agrees. But Kyl’s action really does highlight how far conservatives have gone to prevent Obama’s appointed officials from doing their jobs.

Former Federal Reserve Chairman Paul Volcker touched on this in a recent interview with Charlie Rose. “Here we are on Dec. 29, almost a year after the Inauguration, and there is no Under Secretary of the Treasury. That should be an important position. How can we run a government in the middle of a financial crisis without doing the ordinary, garden-variety administrative work of filling the relevant agencies?” he asked. Brad DeLong also noticed the problem, calling the lack of confirmations at Treasury “disgraceful and insane.”

According to the Washington Post, there are still six Treasury nominees outstanding. One of the nominees that Kyl is holding, Michael Mundaca, served in both the Clinton and George W. Bush administrations, so his nomination can’t be all that controversial.

But this isn’t a problem confined to Treasury, as more than 200 nominations are still pending, including those “for executive branch positions, federal judgeships, ambassadorships, as well as U.S. attorney and U.S. marshal posts.” Right before adjourning for the winter break, the Senate rebuffed six administration nominees, including Office of Legal Counsel nominee Dawn Johnsen and Department of Labor Solicitor nominee Patricia Smith. Obama is reportedly planning to re-nominate some of those, including Johnsen.

As Matthew Yglesias wrote, “after an election, the country needs a well-staffed executive branch. Putting the squeeze on an administration by holding up its appointees is a way of holding the interests of the whole country hostage to a petty agenda.” And indeed, because of one of Kyl’s pet issues, the Treasury doesn’t have all its people in place while it tries to rebuild after an economic crisis. This is no way to run a government.

Media

A Self-Described ‘Wiser Lou Dobbs’ Supports Legalizing Undocumented Immigrants

Former CNN anchor and anti-immigration reform crusader Lou Dobbs appeared on the O’Reilly Factor last night with an interesting announcement. Dobbs told host O’Reilly that he supports immigration reform with a path to citizenship and also lamented his “combative nature” during the 2007 immigration debate. Dobbs continued insisting that his position on immigration hasn’t changed, explaining that he simply overemphasized border security in the past to the exclusion of legalization and that a “wiser Lou Dobbs” has emerged who is committed to promoting both:

DOBBS: I think the essence of the legislation of 2007 is right: pay a fine, learn English, commit to assimilation in the United States, and begin a path to citizenship…there should also be another guest worker program. [...]

O’REILLY: You sound very moderate. As you said, “I’m the tougher guy here.” Why do you think Hispanics come after you so hard?

DOBBS: I think in part — one thing is my own stupidity. I put forward a statement: rational, effective, humane policy…the emphasis became in the debate of my combative nature the issue of border security first and foremost, versus reforming immigration policy. I’m saying the same thing, but I’m keeping it absolutely combined.

O’REILLY: So you’re a kinder, gentler Lou Dobbs.

DOBBS: I’m a wiser Lou Dobbs.

Watch it:

Politifact found “no point-blank case” in which Dobbs has explicitly opposed legalizing undocumented immigrants, however he did repeatedly refer to the immigration legislation he praised last night as an “amnesty bill” during the 2007 debate. Dobbs also slammed Sen. John McCain (R-AZ) and President Obama during the 2008 presidential race for supporting “[guest worker] programs that bring in cheap foreign labor at the expense of American workers.” Last month, the anti-immigrant group Americans for Legal Immigration PAC announced it was dropping its support of Dobbs, citing a perceived change of views that “deeply offended his base.”

Despite his new proclaimed emphasis on border security and legalization, during the beginning of the segment a supposedly “wiser” Dobbs told O’Reilly that a recent bill introduced by Rep. Luis Gutierrez (D-IL) is nothing but a “a list of what the open-borders amnesty crowd wants.” Gutierrez’s bill would establish an earned legalization program with requirements similar to those proposed by Dobbs and also includes several provisions aimed at beefing up border security.

Cross-posted at Wonk Room.

Climate Progress

Energy and Global Warming News for January 8: Obama announces $2.3B in awards for clean-tech manufacturing jobs, “Building a robust clean energy sector is how we will create the jobs of the future”

White House statement on $2.3B in awards for clean-tech manufacturing jobs:

WASHINGTON – Today at the White House, President Obama announced the award of $2.3 billion in Recovery Act Advanced Energy Manufacturing Tax Credits for clean energy manufacturing projects across the United States. One hundred eighty three projects in 43 states will create tens of thousands of high quality clean energy jobs and the domestic manufacturing of advanced clean energy technologies including solar, wind and efficiency and energy management technologies.

As part of the Recovery Act, these tax credits are focused on putting Americans back to work by building a robust domestic manufacturing capacity to supply clean and renewable energy projects with American made parts and equipment. These credits are also an important step towards meeting the President’s goal of doubling the amount of renewable energy the country uses in the next three years with wind turbines and solar panels built right here in the United States.

“Building a robust clean energy sector is how we will create the jobs of the future,” said President Obama. “The Recovery Act awards I am announcing today will help close the clean energy gap that has grown between America and other nations while creating good jobs, reducing our carbon emissions and increasing our energy security.”

Read more

Alyssa

Sci-Fi Day

io9′s been on a role, so I thought I’d do a quick hit on two posts of theirs from the past couple of days that really struck me:

-Charlie Jane Anders asks why English is the language most science-fiction seems to be written in these days is English.  Obviously, as she notes, part of it is a desire for a larger audience.  But given that in a great deal of science-fiction, there is a universally accessible or spoken language like Basic in Ender’s Game, or common useage of English in Kim Stanley Robinson’s Mars books, I wonder if writing in English might be a way of not simply thinking futuristically, but acting that way, too.

-What happens when studios geek out over 3D–and directors don’t?  In RoboCop‘s case, Darren Aronofsky holds the remake hostage.  I do wonder if this will be a problem, studios insisting on 3D, particularly as more theaters can handle the technology and they can make a larger profit margins on individual tickets, even for projects that might not be well-suited to the technology.  I’m not sure the grubby realism of District 9 would have been particularly enhanced if it popped off the screen, and it might even have been too uncomfortable for viewers in the film’s more visceral moments.  I do wonder if that will close off opportunities for directors who already have visions they’re quite wedded to, if only because it forces one more compromise?  Or if we’re at a point where 3D is about to become so standard that everyone will have to work in it.

Yglesias

Health Care and Wages

Stethoscope

Proponents of the health insurance “excise tax” say that if we moved to equalize the tax treatment of compensation received in the form of subsidized health insurance and compensation received in the form of cash money, that people would wind up with less-generous insurance plans and more money. Larry Mishel from EPI is not a proponent of the excise tax. And he’s written a paper (PDF) that I guess is aimed at persuading you that this “less insurance, more cash” connection is wrong.

But if that’s what he’s trying to persuade me of, I’m totally unpersuaded. That said, I agree with Kevin Drum that Mishel convincingly establishes another point which is that if you want to say that rising insurance premiums are the reason for stagnating middle class wages, you’re barking up the wrong tree. It’s true that if you look at wages and benefits together, then things don’t look as bleak if you look only at wages. But it’s still true that there’s been a large compensation slowdown for average workers. The total compensation share of the economy doesn’t really change over time, so if the highest-earners start earning a higher slice of compensation then average people start earning a smaller slice. That’s how it works.

But back to the excise tax. Austin Frakt rounds up the academic evidence that there’s a direct tradeoff between wages and insurance premiums, and it’s pretty overwhelming. And this is really common sense. Your boss wants to spend as little money as possible getting you to work for him. Subsidizing your health insurance costs money. Paying you money costs money. You extract as much total money out of him as your market bargaining power lets you do. If he’s willing to part with $65,000 in exchange for your services, he doesn’t care if that’s $55,000 in salary and $10,000 in insurance benefits or $65,000 in cash or whatever. You can bargain what you can bargain for. If the tax code makes the after-tax value of health benefits larger than the after-tax value of wages, then you have an incentive to take a relatively large share of that $65,000 in the form of insurance. If the tax code doesn’t do that, then you have an incentive to take a larger share in the form of money—money that you might, but then again might not, wind up spending on copayments or deductibles.

Suppose I proposed a law saying that if an employer buys a Vespa for an employee, then the employer can deduct that as an expense, but the employee doesn’t have to pay income tax on it. I don’t think it would be controversial to say that this law is going to increase the number of Vespas people own, but isn’t going to increase the total share of GDP that goes to employee compensation.

Politics

Native-American GOP Congressman Calls Steele’s ‘Honest Injun’ Comments ‘Unacceptable’

On Monday, Republican National Committee Chairman Michael Steele attracted considerable attention for a controversial term he used on Fox News:

STEELE:Our platform is one of the best political documents that’s been written in the last 25 years. Honest Injun on that. It speaks to some core conservative principles on the value of family, faith, life, economics. Those principles don’t change.

Watch it:

Today, ThinkProgress received a statement from Rep. Tom Cole (R-OK) in response to Steele’s remarks:

It’s unacceptable. And while I’m certain Chairman Steele didn’t intend it that way, it’s an offensive phrase in the Native American community.

Cole’s condemnation of Steele is significant, not only because he is a fellow Republican, but also because he is an enrolled member of the Chickasaw Nation and the only Native American serving in the House. Rep. Dale Kildee (D-MI), co-chairman of the Congressional Native American Caucus, has also demanded that Steele apologize: “His insensitive comment undermines and threatens to reverse the progress we have made to correct those wrongs.”

Leeanne Root of Indian Country Today writes that a public apology from Steele — who has been blanketing the media to promote his book — is “well overdue.” “Steele’s use of this racist phrase — on a widely viewed national program, no less — disrespects a community that works hard to educate about the true history of the United States and wants to participate in its productive future,” she writes.

Update

The head of the Native American Journalists Association is also calling on Steele to apologize for his “scurrilous tongue” and using “uneducated archaic racist remarks.”

Health

REPORT: Health Care Reform Could Create 250,000 – 400,000 Jobs Annually

Dirty JobsOn Tuesday, Sen. Ben Nelson (D-NE) characterized the administration’s efforts to pass health care reform as a “mistake” and argued that the nation would have been better served if Congress spent more time strengthening the economy and creating jobs. Well today, a new report by David Cutler and Neeraj Sood suggests that health care reform would actually do just that. “One important way to create jobs is to slow the growth of medical spending,” the report argues. “If health care cost increases slow down, then businesses will find it more profitable to expand employment and workers will more readily move into those new jobs”:

Rising health care costs affect employment in two basic ways. On the employer side, employer-paid health premiums are a cost of business, just as wages and salaries are. Reducing the growth of health insurance premiums would therefore enable employers to hire more workers, according to economic theory, holding wages and other benefits constant. On the worker side, most workers are willing to give up wage and salary payments in order to receive employer-paid health insurance. When health insurance premiums rise, therefore, workers who value health insurance as part of the job are often willing to accept lower wages in exchange for the higher benefits. Conversely, when costs fall, a large part of the impact will be on higher wage and salary payments. A major effect of health care reform that lowers employer premium growth will therefore be to raise middle-class wages.

Cutler and Sood estimate that slowing premium growth would create between 250,000 and 400,000 jobs a year this decade:

JobsChart

Sen. Max Baucus (D-MT) said it best in his now forgotten white paper. “Health care reform is not a distraction from addressing our economic challenges; health care reform is an essential part of restoring America’s overall economy and the finances of our working families.” Lower health care costs would allow employers to invest money (they otherwise would have spent on health insurance) into expanding their businesses and hiring new workers. The expansion in coverage should also lead to a job boom in the health care sector.

Yglesias

The Spelling Problem

Spencer Ackerman explained to me last night that it’s not actually true that a spelling mixup is what caused Umar Farouk Abdulmutallab to be approved to fly to the US. And now he can explain it to you. Nevertheless, the spelling mixup did happen, and this kind of thing happens pretty frequently. Noah Schactman vents:

This is a problem that commercial software firms largely solved years ago. (Try typing “Noa Schactmann” into Google, and see what comes up.) How it could persist in the CT community, I just don’t understand.

Alternatively:

spelling 1

But there’s another thing about these persistent spelling issues that bugs me. The problem is oftentimes one of transliteration. There’s some sequence of Arabic characters that’s sometimes rendered into English as “al-Qaeda” and sometimes as “al-Qaida.” And some sequence that’s sometimes “Osama” and sometimes “Usama.” And lord knows the dictator of Libya’s name has been transliterated a whole bunch of different ways. It should be possible to resolve a lot of this confusion by just making sure that the databases (or what have you) include a field in which names are inputted in Arabic (or Cyrillic or Chinese) characters. Americans will want to deal with a transliteration on the page, but that way when you had a computer search through things or try to match files, the back end could use the names spelled out in Arabic where you won’t have all these alternatives.

Politics

Gov. Perry wants to bring California’s budget misery to Texas.

perry2Last month, Rep. Dan Lungren (R-CA) said that California’s Proposition 13 — which requires that a two-thirds majority of the state legislature approve any tax increase — should be a “guiding light” for the nation. And Lungren is evidently not the only one in favor of crippling a state’s ability to budget. In a column yesterday, Wall Street Journal editorial board member Stephen Moore heaped praise onto Gov. Rick Perry (R-TX), who is calling for Texas to adopt a Prop. 13-type measure:

On Wednesday, Mr. Perry moved to seal the deal with conservatives by calling for a new constitutional set of protections for taxpayers. Call it a Texas-style “taxpayer bill or rights.” Mr. Perry wants the state’s constitution amended to require a two-thirds vote requirement of the legislature for any tax hikes. He also wants state spending capped at the rate of annual population growth plus inflation.

As Time’s Kevin O’Leary wrote, Prop. 13 lies “at the root of California’s misery,” leaving it no choice but to slash its budget during the economic downturn. Harold Meyerson has pointed out that the Republican minority in Sacramento “has refused in good times as well as bad to raise business or other taxes (increasing the tobacco tax, for instance, has failed each of the past 14 times it has come up for a vote).” So the state is left in an untenable position, and reduced to asking the federal government for support. The Wonk Room has more.

Yglesias

Pro-Cyclical Retirements

It’s almost never good for a political party when one of its incumbent members decides to retire. And yet since human lifespans are finite, nobody can stick around forever. Consequently, it would make the most strategic sense for a party to try to swap out its incumbents when it’s in a position of political strength, so as to ensure that it has the maximum number of not-read-to-retire incumbents in place to help weather the storm. But as Andrew Gelman points out, instead the reverse happens:

As expected, it was a good year for the Democrats, and so it was a logical time for them, as a party, to make some investments in new, young candidates. 2008 was the time they should’ve encourage lots of their incumbents to retire, because in that year they could win a lot of these districts without needing the incumbency advantage (estimated to be about 10% of the vote, i.e., enough to take you from 50% to 60%). Conversely, 2008 was the time for the Republican Party to hold on to what it had, and to keep all their incumbents in, trying to hold out until 2010 when the pendulum might swing back in their favor. But we didn’t see that—actually, something like 30 Republican House members retired in 2008. Republicans retiring, Democrats sticking around—that was a recipe for big Democratic gains. But then in 2010, or 2014, or whatever year it is when the Democrats get wiped out—then a bunch of their incumbents will probably retire, and boy will the Democrats wished they had put in younger incumbents back in 2008 when they had a chance!

It’s not so hard to figure out why this happens. But it’s a reminder that American political parties are somewhat strange beasts. They attract enormous loyalty from millions of followers around the country, but can’t really compel their key personnel to act in the interests of the larger organization.

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