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Politics

Obama’s Fury Over The Failure Of The Background Check Bill, In 7 Lines

President Obama tore into Congress for voting down a background check amendment that the overwhelming majority of Americans support. Speaking at the White House Rose Garden as the Newtown families and former Congresswoman Gabby Giffords looked on, Obama stressed that he would continue to advocate for the measure, which fell four votes short of the 60-vote threshold:

1. “I’m going to speak plainly and honestly about what’s happened here because the American people are trying to figure out how can something have 90 percent support and yet not happen.”

2. “This legislation, in fact, outlawed any registry. Plain and simple, right there in the text. But that didn’t matter. And unfortunately, this pattern of spreading untruths about this legislation served a purpose, because those lies upset an intense minority of gun owners, and that in turn intimidated a lot of senators.”

3. “But the fact is most of these senators could not offer any good reason why we wouldn’t want to make it harder for criminals and those with severe mental illnesses to buy a gun… It came down to politics — the worry that that vocal minority of gun owners would come after them in future elections.”

4. “I’ve heard some say that blocking this step would be a victory. And my question is, a victory for who? A victory for what? … It begs the question, who are we here to represent?

5. “I’ve heard folks say that having the families of victims lobby for this legislation was somehow misplaced. ‘A prop,’ somebody called them. ‘Emotional blackmail,’ some outlet said. Are they serious? Do we really think that thousands of families whose lives have been shattered by gun violence don’t have a right to weigh in on this issue? Do we think their emotions, their loss is not relevant to this debate?

6. “So all in all, this was a pretty shameful day for Washington.”

7. “You need to let your representatives in Congress know that you are disappointed, and that if they don’t act this time, you will remember come election time.”

Politics

Obama: Individuals Responsible For The Boston Bombing ‘Will Feel The Full Weight Of Justice’

President Obama pledged that the American government will find out who set off the twin bombs at the Boston Marathon on Monday afternoon and “hold them accountable.”

Speaking at the White House press briefing room just hours after two bombs exploded in Boston, Massachusetts, Obama was careful not to characterize the attack and instead stressed that “we still do not know who did this or why and people shouldn’t jump to conclusions before we have all the facts. But make no mistake, we will get to the bottom of this and we will find out who did this, we’ll find out why they did this. Any responsible individuals, any responsible groups will feel the full weight of justice.”

“On days like this there are no Republicans or Democrats, we are Americans united in concern for our fellow citizens,” he added.

Update

A White House official says that the Boston explosions will be “approached as an act of terror.”

Climate Progress

New Yorker: ‘Has Obama Already Given Up On Climate Change?’

The New Yorker examines the President’s latest budget and find it “represents a major dodge on climate change.” Hence columnist Ryan Lizza poses the headline question, “Has Obama already given up on climate change?”

Sure Obama has been talking a good game on climate in the second inaugural address and State of the Union:

But the budget released this week makes it clear that Obama’s surprising appeal to Congress was an empty piece of rhetoric. The phrase “climate change” appears twenty-nine times in the new budget, but there is no new plan for Congress to take up in Obama’s otherwise ambitious legislative blueprint. There are some worthy energy initiatives that could achieve modest reductions in emissions, but the budget is silent on what Obama will do to aggressively reduce carbon pollution by the biggest emitters, like power plants and automobiles.

If rhetoric cut emissions, we’d be carbon free already. But only action does.

Still, it is not as if Obama has the power to act:

It is not as if Obama doesn’t have the power to act. On many issues the President is at the mercy of Congress. He can’t reform gun laws or the immigration system, or rewrite the tax code, without coöperation from the House and Senate. Climate change is different. Obama’s Environmental Protection Agency, backed by the force of a Supreme Court ruling, has the authority to reduce carbon pollution through regulation. In 2010, when White House negotiators were trying to pass cap and trade, they presented reluctant senators with a promise (some called it a threat): pass a comprehensive bill to deal with the problem or the E.P.A. would move forward on its own. Three years later, the Administration has still not acted on that ultimatum. And, ominously for those who care about tackling climate change, Obama’s new budget proposes to reduce funding for the E.P.A. by 3.5 per cent compared to the current year.

Oh, well, it’s not as if team Obama is delaying action:

The Environmental Protection Agency said Friday that it would delay issuance of a new rule limiting emissions of carbon dioxide and other greenhouse gases from new power plants after the electric power industry objected on legal and technical grounds…

“We are continuing to work on the rule,” said Alisha Johnson, the E.P.A. press secretary. “No timetable has been set.”

No worries. It’s not like we’re in a hurry or anything (see Study: We’re Headed To 11°F Warming And Even 7°F Requires ‘Nearly Quadrupling The Current Rate Of Decarbonisation’). It’s not like inaction is incredibly costly (see IEA warns, “The world will have to spend an extra $500 billion to cut carbon emissions for each year it delays implementing a major assault on global warming”).

It’s not like delaying the rule for limiting emissions from new power plants delays the far more important rule for limiting emissions for existing power plants. Okay, well, it is like that, but it isn’t like Obama told the nation in February “If Congress Won’t Act Soon To Protect Future Generations, I Will.” The New Yorker also cites that remark and concludes:

Nothing in his new budget follows through on that promise. And if that doesn’t, what will?

Hakuna matata.

Economy

Obama’s Budget Contains Less Revenue And Spending Than Simpson-Bowles

Since the 2012 election, Republicans have consistently blamed President Obama for ignoring the recommendations of the Simpson-Bowles deficit commission he created shortly after taking office in 2009. Republican leaders have said they’d be “willing to say yes to” a Simpson-Bowles-style plan, which balanced revenue with spending cuts and changes to entitlements.

Those overtures have of course been disingenuous, since the Simpson-Bowles plan includes more revenue than any recent plan Obama has put forth. Today, Obama released his 2014 budget proposal, a moderate plan aimed at fostering a long-term compromise with the GOP. And yet again the Obama plan, which this time also includes unpopular entitlement cuts aimed at placating Republicans, calls for both lower revenue and spending levels than Simpson-Bowles did, as Center for American Progress Managing Director of Economic Policy Michael Linden shows:

When added to the deficit reduction already accomplished, the president’s offer includes more than $3 trillion in spending cuts and just $1.3 trillion in revenue. In addition to the enacted deficit reduction, projections of federal spending have been reduced for a variety of other reasons, primarily the recent slowdown in health care costs. Put it all together, and the president is willing to accept overall federal spending levels that are an average of about 0.5 percentage points of gross domestic product less than those in Simpson-Bowles, and revenue levels that are a full percentage point below those in Simpson-Bowles.

The GOP will continue arguing that Obama’s proposals are little different than those he has put forth before, and that he has refused to come to the table for serious negotiations. But while Republican budgets keep moving to the right to satisfy conservatives, Obama’s budget is now even more moderate than the deficit commission Republicans said they wanted to follow just six months ago.

Climate Progress

The Obama Budget Drains Tax Breaks For Big Oil

President Barack Obama’s budget proposal for fiscal year 2014 would eliminate $39 billion of special tax breaks for Big Oil companies over the next decade as part of comprehensive business tax reform. These companies earned billions of dollars in recent years due to high oil and gasoline prices and do not need additional support from taxpayers.

These tax breaks emerged over the past 100 years to help the then-nascent industry develop, and they relieved the oil and gas industry of $466 billion in tax payments to the federal treasury between 1918 through 2009, according to DBL Investors. Now that the oil and gas industry is fully developed and mature, President Obama’s budget would end this century of largesse.

The five largest oil companies — BP, Chevron, ConocoPhillips, ExxonMobil, and Shell — earned a combined total of $255 billion in 2011 and 2012, largely a result of higher oil prices. Meanwhile, these companies are producing less oil, have $72 billion in cash reserves, and are using one-quarter of their profits to buy back their own stock to enrich their largest shareholders (see Table 1). Reuters reported last year that Chevron, ConocoPhillips, and ExxonMobil — the three largest American oil companies — paid half or less of the standard corporate tax rate. President Obama’s budget recognizes that oil companies no longer need tax relief.

In contrast, the House of Representatives would continue to provide tax subsidies for one of the richest industries in the world. It passed an FY 2014 budget authored by Rep. Paul Ryan (R-WI) that retains these existing special tax preferences and provides yet another tax break on top of them. What’s more, the House budget cuts the corporate tax rate by nearly one-third, which would provide more than $2 billion annually in additional tax relief to the five largest oil companies.

The American Petroleum Institute, or API, serves as Big Oil’s lobbying arm and is spending tens of millions of dollars on ads and lobbying to pressure Congress to retain these special tax breaks. API equates eliminating special tax breaks with tax increases, when in actuality such legislation would simply make Big Oil pay its fair share of taxes. Economists recognize that tax breaks are simply federal government spending through the tax code, which also contributes to the budget deficit.

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Health

The President’s New Budget Is A Small Step Forward In Restoring Women’s Abortion Rights

Many people who follow women’s issues have heard of the Hyde Amendment — a policy that restricts insurance coverage of abortion for Medicaid enrollees except when the pregnancy endangers the life of the woman or results from rape or incest. But what many do not know is that the Hyde Amendment is not “settled law,” as it is often referred to by politicians on both sides of the aisle. Rather, it is an appropriations rider, which means that it is a measure attached to a bill that funds government agencies and must be re-approved each and every year.

The Hyde policy also applies to a number of other groups of women who obtain their health insurance or health care from the federal government: disabled women who are Medicare recipients, adolescents in the Children’s Health Insurance Program, Native Americans who use the Indian Health Service, federal employees, federal prisoners, Peace Corp volunteers, and residents of the District of Columbia who participate in Medicaid. These restrictions, which impose substantial hardships on over a million women and which have a disproportionate impact on women of color, also must be voted on annually by Congress.

How can these restrictions be lifted? The first step involves the President submitting a “clean budget” with no abortion riders. This signals to Congress that he disagrees with the policy and thinks it should be removed. Fortunately, the new budget released by the President on Wednesday does take a few small steps toward restoring abortion coverage for some women.

First, it includes a technical fix to the State and Foreign Operations Appropriations bill, which funds the Peace Corps. Currently, that rider denies abortion care to Peace Corps volunteers even in the cases of life endangerment, rape, and incest. The President’s budget would bring this provision into line with virtually all other federal abortion coverage restrictions so that Peace Corps volunteers have the same health care benefits as federal employees, including the Peace Corps employees that work with these volunteers.

Read more

Our guest blogger is Jessica Arons, the Director of the Women’s Health and Rights Program at the Center for American Progress.

Education

UPDATE: Obama Budget Includes $75 Billion To Fund ‘Preschool For All’ Initiative

President Obama proposed a vast expansion to early childhood education programs during his State of the Union address in February, saying he wanted to work “with states to make high-quality preschool available to every child in America.” The budget plan he released today follows up on that promise, allocating $75 billion in new funding over the next decade to partner with states and help expand access to low- and middle-income children who aren’t currently enrolled in preschool programs.

Obama’s plan would partner with states to help “provide all low- and moderate-income four-year-old children with high-quality preschool, while also incentivizing States to expand these programs to reach additional children from middle-class families and establish full-day kindergarten policies.” Overall, the budget spends $90 billion on the Preschool for All initiative and an expansion in home visiting for children. The programs are financed through a $0.94 increase in cigarette and tobacco taxes.

The U.S. ranks among the worst of industrialized countries when it comes to funding early childhood education, and it especially fails to help low-income children. “Nationwide 60 percent of all 3- and 4-year-olds are enrolled in preschool, compared to less than 50 percent of children below the poverty line,” according to the Center for American Progress’ Juliana Herman and Melissa Lazarin, meaning there are more than a million low-income children not receiving any preschool education across the country. And while many states have expanded programs, they still aren’t reaching enough children, as this map from Herman, Lazarin, and Sasha Post shows:

Addressing those gaps, as Obama’s preschool expansion seeks to do, will have benefits for both children and the nation’s economy. At-risk children who receive early childhood education are less likely to drop out of school, become teen parents, and commit violent crimes; they are more likely to attend college. A study of Chicago’s universal program found that it generates $11 in economic benefits for each dollar originally spent; studies of other programs have generated $7 in long-term savings for each dollar spent. And investing in children early is proven to increase social and economic mobility and human capital while reducing economic costs in the future.

States have led the effort to expand preschool programs, and they would continue to do so under Obama’s proposal. But, as Herman and Lazarin explain, federal funding “could help jumpstart preschool programs in states without adequate preschools and could also help states with programs reach the lowest-income children. This would free up state dollars to expand access for higher-income children and improve program quality.”

Update

An earlier version of this post said that the White House budget included $77 billion in spending on expanded preschool and home visiting, $66 billion of which went to the Preschool for All initiative. The White House has allocated $75 billion for the Preschool For All initiative, but it expects to spend roughly $66 billion of that over the next decade. It also allocates $15 billion for the expanded home visiting program and another $1.4 billion for expansions to Early Head Start.

Climate Progress

Let’s Talk Climate, Mr. President

By Bill Becker

With the exception of Alfred E. Newman and those who are taking advantage of legalized pot, we Americans are very good worriers. We are even able to worry about several things at once. It’s a kind of emotional multi-tasking and we do it all the time.

Nevertheless, it’s a skill that President Obama consistently underestimates when he talks about the politics of global climate change. The most recent example came in his meeting earlier this month with high-net-worth supporters in San Francisco. As the New York Times reported it, the President lamented that the politics of the environment are “tough.”

“You may be concerned about the temperature of the planet, but it’s probably not your No. 1 concern,” the Times quoted him as saying. “And if people think, well, that’s shortsighted, that’s what happens when you’re struggling to get by.”

He made a similar statement last Nov. 14 in his first post-election news conference:

There’s no doubt that for us to take on climate change in a serious way would involve making some tough political choices, and you know, understandably, I think the American people right now have been so focused and will continue to be focused on our economy and jobs and growth that, you know, if the message is somehow we’re going to ignore jobs and growth simply to address climate change, I don’t think anybody’s going to go for that. I won’t go for that.

The idea that we live in a one-worry-at-a-time political environment is encouraged by public opinion polls that ask citizens to identify their top issues – in other words, what worries them most. Climate change routinely falls well down the list behind all things economic.

The polls corner their respondents into false choices, however, because most of the issues people are asked to rank are interrelated. Oil prices have a big impact on the economy and jobs. The extreme weather attributed to climate change, which in turn is attributed to our use of fossil fuels, results in more federal spending, which deepens the budget deficit and pressure on taxes. Climate impacts around the world already are undermining international security. Some of the money American consumers spend on gasoline ends up in the Middle East supporting terrorism. And as study after study has concluded, using energy more efficiently and making the transition to renewable energy not only slows climate change; it also stimulates the economy and creates jobs. Breaking these issues apart, stuffing them into stovepipes and asking people to rank them is not nearly as informative as pollsters and politicians make it out to be.

As intelligent as he obviously is, President Obama should have no trouble stitching these issues back together to help the American people see the interconnections that exist in the real world between energy, climate, economy, jobs, national security, government spending, and other issues on the pollsters’ lists.

During his November news conference, President Obama continued:

If, on the other hand, we can shape an agenda that says we can create jobs, advance growth and make a serious dent in climate change and be an international leader, I think that’s something that the American people would support. So you know, you can expect that you’ll hear more from me in the coming months and years about how we can shape an agenda that garners bipartisan support and helps move this — moves this agenda forward.

So let’s hear from you, Mr. President. Since it’s so hard to put carbon back in the smokestack or to put the pieces back after our super-storms, let’s have a national conversation about climate change in the coming months rather than the coming years. Don’t worry about us. We’re world-class worriers. It’s a skill that’s been passed down from generation to generation. We, like you, are able to handle more than one important issue at a time.

– Bill Becker is Executive Director of the Presidential Climate Action Project (PCAP), an initiative of Natural Capitalism Solutions to help the President of the United States take decisive action on global warming and energy security.

Economy

What You Need To Know About President Obama’s New Budget

President Obama will today release a sweeping budget proposal that is aimed at reaching a grand bargain with House and Senate Republicans on the nation’s long-term debt and deficits. The budget, as expected from reports last week, largely mirrors the compromise offer Obama made to Republican leaders during fiscal cliff negotiations at the beginning of the year, as it seeks investments aimed at spurring economic growth and new revenues in exchange for cuts to both domestic discretionary spending and entitlement programs.

The Obama budget replaces the automatic budget cuts — sequestration — that went into effect on March 1 with a total of $1.8 trillion in deficit reduction achieved through a mix of spending cuts and revenue increases, and it also includes many of the administration’s priorities, including stimulative investments, funding for a universal preschool program, and an increase in the minimum wage to $9.00 per hour. But it also includes further spending cuts and changes to entitlement reforms top administration officials say Obama is offering not as an ideal policy package but instead in an effort to reach a long-term budget deal with Republicans. Here is a breakdown of the budget’s key components:

Spending cuts: The budget cuts $200 billion from discretionary spending, balanced evenly between defense and domestic programs. It also includes $200 billion in cuts from mandatory spending by reducing farm subsidies and reforming federal retiree benefit programs. It also achieves $210 billion in savings from reduced interest payments on the debt and $400 billion in health savings aimed at cutting waste and fraud and strengthening Medicare.

Chained CPI: The most contentious of the budget’s provisions is a new inflation measure, known as chained CPI, that will save $230 billion over the next decade. The Obama budget applies chained CPI to all government programs except those that are means tested in an effort to protect programs that benefit the most vulnerable. It does, however, apply to Social Security — meaning certain beneficiaries would see benefit cuts under the reform. The budget also includes protections for low-income seniors to offset those benefit cuts, and senior White House officials said Tuesday that the administration would not accept the reform without those benefit protections. Chained CPI was a key feature of Obama’s compromise plan to Republican leaders in January, and though administration officials asserted that the White House is not necessarily fond of the reform, it was included in an attempt to foster compromise with Republicans who have demanded entitlement reforms in past negotiations.

Taxes: The budget seeks $580 billion in new revenues through the closure of tax loopholes — including oil and gas subsidies and tax credits that benefit companies who shift jobs overseas — and by limiting deductions for wealthy taxpayers. It also closes loopholes Obama has targeted before, including the corporate jet loophole and one that benefits wealthy hedge fund managers. It also institutes the Buffett Rule, a plan named for wealthy investor Warren Buffett that would institute a minimum income tax rate on millionaires. Meanwhile, it makes permanent the America’s Opportunity Tax Credit that goes to families with children in college, improves the Child and Earned Income tax credits, and gives tax cuts and other breaks to small businesses, all of which it pays for by closing tax loopholes.

Job creation: The budget includes a modest amount of stimulative investments, many of which were derived from Obama’s American Jobs Act that the GOP blocked in 2011. It has $50 billion in infrastructure investments, $1 billion to launch manufacturing innovation programs, and increases for research and design. It also includes education investments and funding for job training programs.

Universal preschool: Following up on a promise made in his State of the Union address, Obama’s budget includes funding to expand preschool programs to low-income children. The program, funded by increased tobacco taxes, would help expand preschool enrollment among four-year-olds by partnering with states to subsidize preschool for children in families who earn up to 200 percent of the federal poverty line.

In total, the budget represents a sharp move to the center for Obama, who embraced entitlement reforms unpopular among his base while also including $2 in spending cuts for every $1 in revenues. The budget would bring the total deficit reduction achieved in the last four years to more than $4 trillion, the vast majority of which has already been through spending cuts and not revenues. Overall, it reduces deficits to 2.8 percent of the economy in 2016 and 1.7 percent by 2023.

And while it focuses more on job creation, infrastructure, and other important long-term investments than Republicans have, it achieves less in both stimulus spending and revenues than budgets offered by House and Senate Democrats, and it still focuses largely on reducing the deficit at a time when America’s borrowing costs are historically low and unemployment is persistently high. Administration officials said Tuesday that the budget proves that both deficit reduction and job creation could be achieved at the same time, but job growth remains slow and deficit reduction efforts have thus far hindered the economic recovery compared to past post-recession periods, begging questions about whether further spending cuts should be the focus at all. Focusing solely on stimulus and job creation, though, is out of the question with the very Republicans with whom this budget is seeking to compromise.

Election

Obama’s Grand Bargain Could Destroy His Political Coalition

There are two keys to achieving real political dominance for the Obama coalition.  First, the Obama coalition must be mobilized beyond Presidential elections.  That means between elections in the struggle to achieve legislative victories and in Congressional elections, where turnout patterns must align more closely with Presidential elections.  Second, the Obama coalition must be widened to take in a larger share of the white working class.  Otherwise, the hostility of these voters will undercut public support for the President’s agenda, as well as remaining a lurking threat in every election, particularly Congressional ones.

Both of these objectives will be seriously compromised if strong growth does not return to the American economy and soon.  Take white working class voters.  These voters are primarily looking for material improvements in their lives, improvements that are not possible without strong economic growth and the jobs, tight labor markets and rising incomes such growth would bring.  In a low growth environment, these voters will remain exceptionally pessimistic and inclined to blame Democrats and government for their lack of upward mobility.

Even more serious, core groups of the Obama coalition will be weakened by continued slow growth.  Obama was well-supported by these groups in 2012, but a sluggish economic environment, where unemployment continues pushing 8 percent will try these voters’ patience.  How much enthusiasm will Hispanics, blacks, youth, single women, etc., whose unemployment rates are considerably above the national average, continue to have for a party that cannot do more to improve economic conditions?  Attrition in support will be inevitable in such a scenario and the opportunity to consolidate a dominant coalition will be lost.

So the stakes in the battle for more and faster growth are high.  But you would not guess that from the issues preoccupying Washington.  Instead, in the very same week when we received a dreadful jobs report—just 88,000 jobs were added to the economy—President Obama has made yet another attempt to revive a Grand Bargain with Republicans by outlining a budget plan that replaces the automatic sequestered spending cuts with other spending cuts while also raising $580 billion in revenue and making cuts to Social Security and Medicare.

Whatever the other merits of this proposal may be, it will do nothing for economic growth and, in fact, will continue the ongoing pattern of spending cuts that are undermining our recovery and thereby the future prospects of the Obama coalition.  Grand Bargains are no substitute for growth and both consumers and voters know the difference.

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