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Economy

Bunning: Steinbrenner ‘Was Smart Enough To Die In 2010′ And Pay No Estate Tax

When the 2003 Bush tax cuts were passed, a phase out of the estate tax began that culminated this year with the tax’s full repeal. But since the Bush administration wanted to minimize the long-term cost of its massive tax cuts (which overwhelmingly benefited the richest Americans), they expire at the end of this year. So the estate tax is scheduled to come back at its Clinton-era level of 55 percent with a $1 million exemption in 2011.

This week, New York Yankees owner George Steinbrenner passed away, making him at least the third billionaire to pass on his estate to his heirs tax free. Today, during a Senate Finance Committee hearing Sen. Jim Bunning (R-KY) said that Steinbrenner is a genius for dying this year and escaping the estate tax:

Because he was smart enough to die in 2010, there is zero tax liability on the estate tax,” he said.

Bunning’s comment echoes those Rush Limbaugh made earlier in the week, saying Steinbrenner “knew when to die,” because of the repealed estate tax. Steinbrenner’s net worth was about $1.15 billion, making him the 341st richest person in America.

Some conservatives have seized on the expiration of the estate tax to push for cutting the rate going forward. Today, Sens. Jon Kyl (R-AZ) and Blanche Lincoln (D-AR) reintroduced their plan to cut the rate to 35 percent with a $5 million exemption, complete with a Bush-style phase-in “meant to make the short-term cost of the bill appear smaller.” President Obama and many Democrats, meanwhile, have proposed permanently setting the tax at the 2009 level of 45 percent with a $3.5 million exemption.

The Lincoln-Kyl plan would cost about $91 billion more than permanently adopting the 2009 rate, which itself costs hundreds of billions relative to current law. Lincoln and Kyl have said that they plan to raise spending offsets to make up the difference, raising the prospect that Congress will waste offsets on a tax cut for the richest of the rich.

After all, only the wealthiest 0.25 percent of households are subject to the estate tax at the 2009 level. At that rate, 62.5 percent of estate tax revenue comes from estates worth more than $20 million and another 35 percent comes from estates worth between $5 million and $20 million. Sens. Sheldon Whitehouse (D-RI), Tom Harkin (D-IA), and Bernie Sanders (I-VT) have proposed an even more progressive estate tax, adding higher rates for estates worth more than $10 million, $50 million, and $1 billion.

Politics

Northeast Hit With Devastating Floods, As Federal Flood Insurance Expires Due To GOP Obstruction

Last week, Senate Republicans, led by Sen. Tom Coburn (R-OK), blocked an extension of unemployment benefits, claiming that they objected to granting the extension without offsetting it with a spending cut elsewhere. Last month, Sen. Jim Bunning (R-KY) and a handful of his Republican allies did the same thing, with Bunning telling Democrats who wanted to pass an extension by unanimous consent “tough sh*t.”

But it wasn’t only unemployment benefits that expired: the same package that the Republicans blocked also included extenders for the National Flood Insurance Program (NFIP). And the critical nature of NFIP was brought into the spotlight this week, as many northeastern states have been battered with record amounts of rainfall, which has led to widespread flooding.

Flooding in Rhode Island was the worst it’s been in 100 years, with some rivers “several feet above all-time records.” Boston saw its wettest March since record keeping began in 1872, while “bridges and highways have washed out from Maine to Connecticut and sewage systems have been overwhelmed to the point that families were asked to stop flushing toilets.” National Guard troops have been mobilized to aid residents in both Rhode Island and Massachusetts.

According to the Property Casualty Insurers Association of America, there are 5.5 million flood insurance policy holders in flood plains, and as of this week, homeowners were rendered unable to renew their policies. If any of those homeowners were victims of the current flooding, they will “face complications” filing claims. As Blain Rethmeier, spokesman for the American Insurance Association, put it, “it’s unfortunate that the NFIP has fallen victim to the political process”:

Ultimately the people who will suffer the most are property owners who need new coverage or who need to renew their flood insurance policies. One can only hope that Mother Nature is kind until April 12. Otherwise, there’s not much people can do.

According to Roll Call, Republicans hope to blame the expiration on Democrats when they come back from the current recess, since House Democrats objected to the spending offsets that the Senate had agreed to. But Republicans have made it clear that they fully endorse obstructing these extension packages. After all, Sen. Jon Kyl (R-AZ) said this week that “we didn’t give [Bunning] as much help as we probably should have.” “It took an act of courage like Sen. Bunning’s to perhaps jolt people,” Kyl said.

Cross-posted on the Wonk Room.

Update

Joe Romm points out that the storms are a “record global warming type deluge“:

The Northeast has been walloped with record-smashing deluges and flooding. I have called this type of rapid deluge, “global warming type” record rainfall, since it is one of the most basic predictions of climate science — and it’s an impact that has already been documented to have started.

Economy

Kyl: We Should Have Supported Bunning More When He Was Blocking Unemployment Benefits

Last month, Sen. Jim “tough sh*t” Bunning (R-KY) was joined by a cohort of Republicans in blocking an extension of unemployment benefits. And last week, the GOP decided to put together a sequel, with Sen. Tom Coburn (R-OK) stepping into Bunning’s role. While Bunning was eventually worn down last time, Coburn had enough support for his stand that the Senate adjourned without extending benefits, which means that, for at least one week, some recipients of benefits will see them run out.

That their obstruction is actually going to have a concrete effect has triggered some introspection among Republicans. However, it hasn’t led them to rethink their current position. Instead, as Sen. Jon Kyl (R-AZ) revealed, it’s made them decide that they should have lent more support to Bunning last time around:

We didn’t give [Bunning] as much help as we probably should have,” Kyl said at a press conference…”I think the sentiment [over the growing deficit] has been there for a long time,” Kyl said. “It took an act of courage like Sen. Bunning’s to perhaps jolt people into the awareness of how bad it had really gotten.

Kyl added that, while he’s not sure the entire GOP caucus will agree to continue blocking the benefits after Congress returns from recess, “the sentiment will be much stronger going forward than it has been in the past.” Coburn added that people whose benefits run out will actually appreciate the GOP’s obstruction. “Hopefully they’re not going to stay unemployed, and when they’re reemployed, one of two things is going to happen: Either we’re going to cut spending or somebody’s going to raise their taxes,” he said.

Of course, it’s not like support for Bunning was in short supply when he took his stand. Sen. Jim DeMint (R-SC) called him a “national hero,” Sen. Jeff Sessions (R-AL) said that he respected Bunning’s for standing “like a solid rock,” and Sen. John Cornyn (R-TX) added that he admired Bunning’s “courage.”

According to the National Employment Law Project (NELP), one million people will see their benefits expire in April without an extension, while 212,000 are going to lose their benefits over the Congressional recess. “It is unacceptable that Congress has, for a second time, failed to extend the existing federal benefits programs with so many people counting on this assistance. We have been down this road already and seen the turmoil it caused. Congress cannot continue to play games with people’s lives,” said Christine Owens, Executive Director of NELP.

Of course, these numbers may not mean anything to Republicans, since they seem to believe that unemployment benefits create “hobos,” and “turn the ‘safety net’ into a hammock.” Earlier this month, 16 Republican senators from states with double-digit unemployment voted against an extension of unemployment benefits.

Politics

After initially applauding Bunning’s obstruction, Cornyn now runs away.

This week, there has been a significant public backlash against Sen. Jim Bunning (R-KY), the obstructionist who has been blocking the temporary extension of unemployment benefits. The Republican Party is also coming under fire for largely staying away from criticizing Bunning (with the exception of Sens. Susan Colllins and James Inhofe). Sen. John Cornyn (R-TX) was doing damage control today, insisting that Bunning was just “one senator. This does not represent the position of the caucus.” On Friday, however, Cornyn was singing a very different tune, and actually took to the Senate floor to laud Bunning:

I admire the courage of the junior senator from Kentucky, Senator Bunning. It’s not fun to be accused of having no compassion for the people who are out of work, the people for who these benefits should be forthcoming, and I believe will be forthcoming. But somebody has to stand up, finally, and say enough is enough, no more inter-generational theft from our children and grandchildren by not meeting our responsibilities today. And that’s what I interpret him to have done.

Looks like Cornyn isn’t too interested in standing up for Bunning’s “courage” now that it’s not politically popular.

Politics

Bunning finally stops hurting millions of Americans, gives up blocking unemployment benefits.

The suffering of hundreds of thousands of unemployed Americans eased tonight as Sen. Jim Bunning (R-KY) finally stopped blocking legislation temporarily extending unemployment and COBRA benefits, which stopped on Sunday. The New York Times reports:

It came after Mr. Bunning’s fellow Republicans began to air their own concerns about how the Senate blockade had the potential to damage their political brand while also having a direct impact on their constituents.

While Democrats hailed the progress, they also said Mr. Bunning’s decision to delay the aid had caused serious disruptions in federal programs and could create bureaucratic problems as people try to reclaim their federal aid.

“Sometimes just because we have the power to do things, we ought to think twice before we use that power,” said Senator Richard J. Durbin of Illinois, the No.2 Democrat in the Senate.

Bunning had been stating that he didn’t want to extend the benefits because the weren’t “paid for,” even though, as ThinkProgress reported earlier today, he voted for an unpaid-for extension during the Bush administration. Bunning’s obstruction affected the jobs of federal transportation workers (who have been furloughed without pay for the past two days), Medicare payments to doctors, television service for rural residents, small business loans, and flood insurance. The bill is now expected to come up for a vote tonight.

Yglesias

Bunning Enthusiastically Backed Extending Unemployment Benefits That Weren’t Paid For In 2003

My colleague Zaid Jilani has a great find of Senator Jim Bunning enthusiastically touting a 2003 extension of Unemployment Insurance benefits in a press release:

U.S. Senator Jim Bunning today announced that legislation to extend temporary unemployment benefits for an additional five months has passed the United States Congress. The legislation, which was unanimously approved yesterday by the Senate and by a vote of 416-4 today in the House, would also provide a temporary 13-week extension of unemployment benefits for all individuals who exhaust their traditional benefits before June 1, 2003. “The 108th Congress is off to a solid start,” said Bunning. “This is hopeful news for our most needy families in Kentucky. By approving this legislation we will help those folks who are currently without work continue to make ends meet until they can find new employment.” Passage of this legislation means that there will be no lapse in assistance for the nearly 10,000 Kentuckians who have filed claims so far for extended benefits. The last extension expired on December 28, 2002. President Bush is expected to sign the bill tomorrow, which means the next payment to states can still be made on Friday, January 10, as originally scheduled.

His excuse for his current bout of obstructionism is that the proposed extension isn’t “paid for,” but this 2003 vote was no different.

Meanwhile, most of Bunning’s Republican colleagues seem to know that he’s in the wrong but are unwilling to actually come out and say so.

Politics

Afraid To Speak Out And Criticize Jim Bunning, GOP Senators Hide Behind Susan Collins

Sen. Jim Bunning (R-KY) has been blocking important legislation that would temporarily extend unemployment and health benefits to laid-off American workers; these benefits expired on Sunday because Congress failed to pass an extension. Because of Bunning, 2,000 federal highway employees were furloughed without pay as of yesterday, and doctors are facing a 21 percent cut in Medicare fees, and more than a million people in rural areas may not be able to watch television.

Today, Sen. Susan Collins (R-ME) spoke up and asked for “unanimous consent that the Senate proceed to the immediate consideration of HR 4691″ — what Democrats have repeatedly requested in recent days. Collins said that she was supported by “numerous” other GOP senators who are tired of Bunning’s obstruction:

On my own behalf, and on behalf of numerous members of the Republican caucus who have expressed concerns to me, I ask unanimous consent that the Senate proceed to the immediate consideration of HR 4691 — with one of hour of debate equally divided between the leaders or their designees, and that following the use or the yielding back of time, the bill be read a third time and the Senate proceed to a vote on passage. [...]

Madam President, I hope that we can act together for the American people, and again, I want to emphasize that this issue is so important on senators on both sides of the aisle. Many of my colleagues have expressed concerns to me that this was not done last week, when it should have been done. So Madam President, I do propose the unanimous consent request.

Watch it:

Collins’ speech reportedly had the “blessing” of Senate Minority Leader Mitch McConnell (R-KY), who has refused to criticize Bunning thus far. In fact, after Collins’ move, McConnell decided not to follow her lead and instead just “launched into a speech criticizing Democrats on health care legislation.”

GOP senators have all largely stayed away from criticizing Bunning, and several have even wholeheartedly embraced his obstruction. Sen. Orrin Hatch (R-UT) told reporters today that Bunning’s block is “not as big of a deal as some of you are trying to make it.” Yesterday on the Senate floor, Sen. Jeff Sessions (R-AL) said of Bunning, “I respect him for the courage he’s showed.” Similarly, Sen. Bob Corker (R-TN) has said that Bunning’s move is something that the Senate should “honor” and Sen. John Cornyn (R-TX) has said that he “admire[s]” the obstruction.

So if there are “many” GOP senators upset at Bunning, why don’t they speak out? Why are they all hiding behind Sen. Collins?

Transcript: Read more

Economy

Bunning Responds: ‘Why Not Now?’ ‘What Better Time’ For Obstructing Unemployment Benefits?

Today, Sen. Jim Bunning (R-KY) continued his stand against a bill that would temporarily extend unemployment benefits that expired over the weekend, once again objecting to a unanimous consent motion to move the bill forward. Bunning has been receiving heat not just from Democrats in Congress, but from the press about his stand, so he took to the Senate floor to try to respond to those wondering why this particular bill is the one that he decided to throw himself in front of:

The question I’ve been asked mostly is ‘why now’? Well why not now? What better time for it than to stand up when the Majority Leader has the ability to do exactly on this bill what he has done on 25 bills in the last five months. File cloture, fill the tree, and vote yea or nay. Get the sixty votes, pass the bill, and extend these temporary benefits.

Watch it:

So instead of relenting, Bunning would prefer that Reid file for cloture, which turns what should be a short process into one that takes days, with at least 30 hours of debate. And of course, there are plenty of reasons for “why not now” when it comes to blocking benefits. For one thing, over the weekend, 400,000 workers lost their unemployment benefits, at a time when there are six unemployed workers for every job opening. Another 1.1 million workers will lose their benefits this month.

But its not only unemployment benefits that Bunning is obstructing. The bill also included an extension of highway funding, which means that 2,000 federal highway workers are currently furloughed and construction projects across the country have halted. The bill also included a provision to prevent a 21 percent cut in Medicare payments to physicians as well as money for the Federal Flood Insurance Program. The Des Moines Register noted that Bunning’s blockage of flood insurance comes just “days after the National Weather Service warned that all of Iowa is at risk for ‘significant flooding.’

Several Republicans — including Sens. Bob Corker (R-TN), John Cornyn (R-TX) and Jeff Sessions (R-AL) have supported Bunning’s filibuster — but today, Sen. Susan Collins (R-ME) admonished Bunning “on behalf of numerous members of the Republican caucus who have expressed concerns.” Watch it:

Today, the Lexington Herald-Leader, from Bunning’s home state of Kentucky, said that Bunning’s stand “shows callous contempt for the more than one in 10 working Kentuckians whose jobs disappeared in the economic meltdown.” CNN today “tried to get Bunning to comment more extensively on the controversy but the senator emphatically declined.” But, hey, at least he didn’t flip anyone off this time!

Politics

Refusing to explain his obstruction of unemployment benefits, Bunning shoots reporter the middle finger.

Since last week, Sen. Jim Bunning (R-KY) has been obstructing legislation to extend unemployment benefits, telling Sen. Jeff Merkley (D-OR) “tough sh*t” when Merkley pleaded with Bunning to drop the hold on the Senate floor. Bunning blocked the measure because of “a dispute over how [the bill] should be funded,” leaving 400,000 Americans in limbo after the benefits expired at midnight on Sunday. Today, an “angry” Bunning refused to answer questions about his hold, running away from an ABC reporter and taking refuge in a senator’s only elevator. Shouting “Excuse me!,” Bunning would not say whether he was concerned about people losing their benefits. Watch it:


Off camera, when ABC producer Z. Byron Wolf tried to engage Bunning, he said, “I’m not talking to anybody” and gave Wolf the middle finger.

Politics

Thousands Of Federal Workers Are Furloughed Without Pay Today Because Of Sen. Bunning’s Partisanship

Sen. Jim Bunning (R-KY) Over the weekend, approximately 400,000 laid-off workers may have lost their unemployment benefits, COBRA subsidies to help defray health care costs expired, and loans for small businesses ran out of time — all because of Sen. Jim Bunning (R-KY).

Last week, the House passed an extension of these benefits. Bunning, however, blocked the Senate from moving forward over “a dispute over how [the bill] should be funded,” and complained that the Democrats’ insistence on trying to ensure that unemployment benefits not expire had caused him to miss a college basketball game.

Several Republicans have defended Bunning’s destructive tactics, although Sen. Jim Inhofe (R-OK) called on him to move aside. Inhofe pointed out that since the bill also contained transportation funding, an expiration could lead to furloughs of employees of the Federal Highway Administration. Indeed, today, 2,000 federal transportation workers have been furloughed without pay. From a Department of Transportation press release, which lays the blame directly on Bunning:

The action comes as a result of Kentucky Sen. Jim Bunning’s decision to block key legislation that would have extended several critical priorities for middle class families. [...]

Because of the shutdown, federal inspectors will be removed from critical construction projects, forcing work to come to a halt on federal lands. Projects span the country, including the $36 million replacement of the Humpback Bridge on the George Washington Parkway in Virginia, $15 million in bridge construction and stream rehabilitation in Coeur D’Alene, Idaho, and the $8 million resurfacing of the Natchez Trace Parkway in Mississippi. [...]

At the National Highway Traffic Safety Administration, the furloughs will disrupt safety programs that operate in partnership with the states and advocacy groups, such as Mothers Against Drunk Driving (MADD) and the International Association of Chiefs of Police (IACP). [...]

Assistance to consumers whose goods are held hostage by rogue moving companies will be unavailable during this period. And work addressing texting while driving for commercial truck and bus drivers, electronic on-board recorders and hours of service will also be suspended.

On Friday, Senate Majority Leader Harry Reid (D-NV) also pointed out that 1.5 million people may also “be unable to watch local TV stations” beginning today — also because of Bunning’s block on the bill, which includes a “satellite television extension” allowing rural residents to watch local TV stations via satellite. According to MultiChannel news, without the extension, “satellite operators will not be allowed to import distant affiliate TV station signals to viewers who cannot receive a viewable version of their local affiliate.”

Yesterday, Sen. Jon Kyl (R-AZ) said that the Senate will most likely pass a temporary extension of the unemployment benefits this week, although a year-long extension may be a tougher sell.

Update

The top two Republicans hoping to replace the retiring Bunning applauded his obstructionist tactics.

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