Super Committee Democrat Picks Very Diverse; GOP Picks All WHITE Men!

Super Committee: Who are these guys?


They are the "super committee" -- and they have a lot of work to do.

Almost all men -- they are the 12-member panel charged with finding an additional $1.5 trillion in debt savings over a ten-year period.

It will be tough work and will likely require political sacrifice on issues like taxes and entitlements if meaningful progress is to be made toward stabilizing the national debt.

On Thursday, House Minority Leader Nancy Pelosi weighed in with her three Democratic picks: James Clyburn, Xavier Becerra and Chris Van Hollen.

The panel's six Republicans were named Wednesday to the body, joining three Senate Democrats.

The members have a range of political experience -- from novice to veteran. They are experts in taxes and the budget process. They hail from states as disparate as Texas, Michigan and Arizona.

In a sign that these appointees might not be the most willing to compromise, four of the members -- two Republicans and two Democrats -- served on the Simpson-Bowles deficit reduction panel but voted against the plan.

Norman Ornstein, a resident scholar at the American Enterprise Institute, said that if the goal is a grand compromise, the appointments "could have been a lot worse," but that this group "is not going to leave me dancing on a cloud."

The committee will have until Nov. 23 to propose ways to reduce deficits. Those proposals must be voted on by Dec. 23.

If the committee process fails to produce a debt reduction plan, as much as $1.2 trillion in across-the-board cuts would kick in -- evenly divided between defense and non-defense spending.



Here's a little about each member of the committee:

Rep. Jeb Hensarling of Texas (Republican and committee co-chair): Hensarling -- chairman of the House Republican Conference -- served on President Obama's debt commission but voted against it. What did he object to exactly?

Tax increases.

The debate over taxes is expected to be fierce. If his past positions are any clue, Hensarling is likely to be vocally opposed to any new revenues.

Sen. Patty Murray of Washington (Democrat and committee co-chair): Murray is not just a senator. She also chairs the Democratic Senatorial Campaign Committee, and it is her job to recruit candidates who can beat her Republican colleagues.

Her appointment has already drawn criticism from the Republican National Committee, which views her as an overly political figure.

She is a member of the Budget and Appropriations committees.

Rep. Chris Van Hollen of Maryland (Democrat): Van Hollen played a key role in the debt talks led by Vice President Joe Biden earlier this year, and is the ranking Democrat on the Budget Committee.

A Pelosi acolyte, Van Hollen frequently appears on television to represent House Democrats on policy issues.

Sen. Jon Kyl of Arizona (Republican): The No. 2 Republican in the Senate behind Mitch McConnell and a staunch advocate for the military, Kyl is a member of the Finance Committee.

Kyl is a reliable conservative vote and is opposed to tax increases. He has said he will not run for re-election and walked out of debt negotiations with Biden earlier this year after an impasse over increasing revenue.

Sen. John Kerry of Massachusetts (Democrat): A former presidential candidate, Kerry is best known on Capitol Hill for his foreign policy experience. He will lend his expertise on national security matters to the debate over cuts to military funding.

He is a member of the Finance Committee and has spent 27 years in the Senate so has participated in his share of closed-door negotiations.

Sen. Pat Toomey of Pennsylvania (Republican): Elected to the Senate last year, Toomey was a prominent voice in the debate over raising the debt ceiling, arguing that the United States could prioritize its payments in the event of a debt ceiling breach to avoid a true default.

In the end, Toomey voted against the debt ceiling bill that created the super committee. He sits on the Senate Budget and Banking committees, and is the former president of the staunchly anti-tax Club for Growth.

Sen. Max Baucus of Montana (Democrat): Baucus -- chairman of the Senate Finance Committee -- served on Obama's debt commission.

But Baucus voted against the final Simpson-Bowles recommendations because he said they cut too deeply into farm subsidies and would have changed Medicare, Medicaid and Social Security in away he found unacceptable.

Those same issues -- changes to those entitlement programs -- are likely to be a central part of any grand bargain to reduce deficits.

Sen. Rob Portman of Ohio (Republican): A former White House budget director in the Bush administration, Portman is a Senate novice and a member of the Budget Committee.

More moderate that some of his colleagues, Portman could be a key player in a compromise.

Rep. Xavier Becerra of California (Democrat): A senior member of the House Ways and Means Committee, Becerra served on the Bowles-Simpson debt commission.

But he voted against the plan because he said it cut too deeply into discretionary spending and did not raise revenues to a high enough level.

Rep. Dave Camp of Michigan (Republican): Camp -- the House Ways and Means Committee chairman -- served on President Obama's debt commission, but voted against it. He objected to the plan's tax hikes and said it failed to address rising health care costs.

An expert on taxes -- he will bolster GOP credentials on any tax reform that might be discussed.

Rep. James Clyburn of South Carolina (Democrat): The third-ranking Democrat in the House and veteran of the Appropriations Committee, Clyburn maintains close ties to Pelosi. He also participated in the Biden debt reduction talks.

Rep. Fred Upton of Michigan (Republican): Upton chairs the House Energy and Commerce Committee. He has taken some moderate positions in the past, including attempts to decrease tax cuts in the George W. Bush administration that remain contentious today.


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Harry Reid Selects Baucus, Kerry & Murray For Super Committee; Alan Simpson Disagrees

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Harry Reid's Super Committee Picks: Patty Murray, Max Baucus, John Kerry

Senate Majority Leader Harry Reid (D-Nev.) will appoint Sens. Patty Murray (D-Wash.), Max Baucus (D-Mont.) and John Kerry (D-Mass.) to the congressional debt-reduction "super committee" tasked with finding roughly $1.5 trillion in savings over the next decade. Murray will serve as one of the committee's two co-chairs, alongside a House Republican.

Reid's office announced the choices, which were first reported by Politico and the National Journal. Reid will make a formal announcement on Wednesday.

In making his picks, the Nevada Democrat becomes the first congressional leader to offer his three appointments to the super committee, who will be granted strong procedural powers to see their recommendations come to a vote. House Speaker John Boehner (R-Ohio), House Minority Leader Nancy Pelosi (D-Calif.) and Senate Minority Leader Mitch McConnell (R-Ky.) still must choose three members each, in advance of an Aug. 16 deadline.

Reid's picks suggest that he favored committee chairs and senior members of the party over some of the younger, more progressive-minded senators. Murray chairs the Democratic Senatorial Campaign Committee and will undoubtedly keep electoral implications in mind as she weighs various policy suggestions. Kerry, who chairs the Senate Foreign Relations Committee, is a top foreign policy voice in the party and will likely play a central role in carving out the cuts made to defense appropriations. Baucus, who chairs the Senate Finance Committee, is a leading figure on tax policy, another legislative component that falls within the committee's purview. None of the three were part of the so-called Gang of Six -– the informal bipartisan group of senators who worked to craft a debt reduction plan of their own.

The choices are not particularly trusted in liberal circles either, in part because of concerns that moneyed interests may come in to play when it comes time to negotiate. In FY 2009, for instance, companies in Murray's home state of Washington received $5.2 billion in defense contracts. Boeing Inc. is the fourth biggest contributor to Murray over the course of her career, according to data gathered by the Center for Responsive Politics.

More broadly, good government advocates were concerned that her post atop the DSCC, which comes with significant fundraising responsibilities, would influence her approach to the committee.

“Sen. Patty Murray may be a fine Senator, but putting Senate Democrats’ leading fundraiser in charge of a committee that will see a lobbying push like never before sends the wrong message to the American people,” said Nick Nyhart, president of Public Campaign, in a press release. “Instead of focusing solely on finding a balanced approach to deficit reduction, she will also be focused on raising money from the same interests hoping to influence the committee.”

Baucus, who was a major player in blocking President George W. Bush's efforts to privatize Social Security and was instrumental in crafting the Affordable Care Act, enjoys close ties to the financial sector. According to CRP data, he has received $5.2 million in campaign contributions from the finance, insurance and real estate industries since 2005.

In Kerry's home state of Massachusetts, meanwhile, the defense industry has tripled in size since 2000.

Should the committee not come to an agreement (and it would take only seven of its 12 members to reach one) or if its suggestions are not passed by Congress, then a trigger would be hit, resulting in major spending cuts and reductions in the defense budget.

On Monday, multiple Senate Democratic sources told The Huffington Post that Reid was leaning against including Baucus in his final three. Senate Democratic sources, when asked about the change of heart, said that while it didn't initially appear that Baucus would end up being picked, he was always considered an option. The two enjoy a close relationship in the Senate and even if Baucus hadn't ended up on the committee, he would have likely been expected to contribute –- either through suggestions or staff -– to its work on tax reform.

A Democratic source told The Huffington Post that Kerry "made it into the discussion" of who should serve on the committee by delivering "some powerful speeches" to the rest of the caucus. The speeches, the source added, were in defense of Democratic Party priorities, focusing on the need to protect entitlement programs and Kerry's desire to strongly push back against (what the source referred to as) "the right-wing agenda."


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Sources: Huffington Post, MSNBC, The Young Turks, Youtube, Google Maps

Obama Signs Short Term FAA Agreement; GOP Rejected Long Term Deal

The Impasse Over Putting FAA Employees Back To Work Has Ended Temporarily. Today Pres. Obama Signed A Bill Allowing FAA Employees To Continue Working Until Sept. 16th. What A Shame Those Tea Party Kooks Have High Jacked Our Federal Government Like This! VOTE OBAMA IN 2012 & REHIRE PELOSI!




Obama signs bill ending partial FAA shutdown

President Barack Obama signed legislation Friday temporarily restoring full funding to the Federal Aviation Administration, breaking a political impasse and allowing roughly 4,000 furloughed federal employees to return to work.

The measure also promises to restore tens of thousands of jobs in the construction industry and elsewhere tied to airport improvement projects put on hold as a result of the funding shortfall.

The bill took less than one minute to pass a nearly empty Senate chamber Friday morning. It was cleared with a legislative maneuver known as "unanimous consent," which allows as few as two senators to approve a bill so long as no objections are filed. Most members of Congress are currently away from Washington on their summer recess.

The president hailed the agreement, noting that it removed "the uncertainty hanging over the jobs of thousands of hardworking FAA employees."

"This impasse was an unnecessary strain on local economies across the country at a time when we can't allow politics to get in the way of our economic recovery," Obama said Friday. "I'm glad that this stalemate has finally been resolved."

The political differences that led to the funding shortfall, however, have not been resolved. Democrats and Republicans are still at sharp odds over whether to continue providing subsidies to smaller rural airports. The two parties also differ over whether to make it easier for airline employees to unionize.

Congress will have to revisit the issue within six weeks to avoid another lapse in funding.

Outrage over Congress's decision to adjourn for the summer without providing adequate funding for the approximately 4,000 employees contributed to the push for at least a short-term resolution. Transportation Secretary Ray LaHood repeatedly took to the airwaves over the past several days, cajoling lawmakers to come back from their break and reach an agreement.

For workers facing the possibility of lost wages for weeks to come, news of the breakthrough evoked an emotional response. Evelyn Martinez, an FAA inspector, cried when she learned of the deal.

The tears are "out of relief," Martinez said, adding that while her post-graduate education taught her how government works, "what we are experiencing is outside of any textbook."

"This is a tremendous victory for American workers everywhere," LaHood said in a statement Thursday. "From construction workers to our FAA employees, they will have the security of knowing they are going to go back to work and get a paycheck -- and that's what we've been fighting for."

Since authorization for FAA funding expired in late July, the agency has also been unable to collect federal taxes on airline tickets -- leading to a revenue loss of approximately $30 million a day. If the dispute had continued until Congress returned in September, the federal government would have lost over $1 billion in revenue.

Senate Majority Leader Harry Reid, D-Nevada, had been in talks this week with House Speaker John Boehner, R-Ohio, and administration officials about how to resolve the funding impasse, a Senate Democratic leadership aide told CNN.

Reid noted Thursday that the agreement "does not resolve the important differences that still remain."

"But I believe we should keep Americans working while Congress settles its differences, and this agreement will do exactly that," he said.

The agreement is the 21st short-term funding extension for the FAA. The Republican-led House previously passed a short-term extension, but it included a number of changes opposed in the Democratic-controlled Senate.

One of the changes involves language in the House bill that would reduce or kill subsidies to rural airports, specifically targeting some in Nevada, Montana and New Mexico -- three states with influential Democratic senators.

The Senate ultimately agreed to pass the House bill, but as part of Thursday's agreement, LaHood will notify congressional leaders that he has the authority to grant waivers to affected community airports, which would exempt them from the subsidy cuts.

While no specific exemptions are required, LaHood's authority gives Democrats the assurance that the disputed language they opposed can be overridden, the leadership aide noted.

A larger dispute regarding the unionization of airline workers has not been addressed at all, however.

Republicans are livid over a recent ruling by the National Mediation Board that makes passage of a vote to unionize dependent only on getting more than 50% support from those actually voting. For example, if a company has 1,000 workers but only 200 take part in the vote to unionize, the rule change would mean only 101 "yes" votes were needed for it to pass.

Under old rules, more than 50% of all workers eligible to vote -- or in this example 501 "yes" votes -- would have been required for it to pass. Workers who didn't cast ballots were counted as having voted "no," making it more difficult for supporters to succeed.

It remains unclear what -- if anything -- the divided Congress will ultimately do in response to the change.

Sources: CNN

Harry Reid Announces FAA Congressional Compromise! Real Deal Or Another Tea Party Trick?

Reid announces deal on FAA funding

Senate Majority Leader Harry Reid, D-Nevada, announced Thursday that Democratic and Republican leaders have "been able to broker a bi-partisan compromise between the House and the Senate" to fully fund the Federal Aviation Administration.

"This agreement does not resolve the important differences that still remain," Reid said in a written statement. "But I believe we should keep Americans working while Congress settles its differences, and this agreement will do exactly that."

The dispute could be resolved as early as Friday, a senior Democratic leadership aide told CNN earlier in the day.

The aide described a series of "active, productive discussions" on the issue.

Earlier, White House Press Secretary Jay Carney told reporters that President Barack Obama called House Speaker John Boehner on Wednesday to discuss ways to resolve the matter.

The impasse has resulted in the furlough of roughly 4,000 aviation workers, as well as tens of thousands of additional layoffs in the construction industry and elsewhere.

The FAA has also been unable to collect federal taxes on airline tickets -- leading to a revenue loss of approximately $30 million a day. If the dispute continues until Congress returns from its summer recess in September, the federal government will be out more than $1 billion in revenue.

Transportation Secretary Ray LaHood has been urging members of Congress to return to Washington from their summer break and, at a minimum, pass a temporary funding measure allowing the FAA and other workers to return to their jobs.

The Democratic-led Senate went on its summer recess Tuesday without approving what would have been the 21st short-term funding extension for the FAA. The Republican-led House previously passed a short-term extension, but included some changes opposed by Democrats.

The dispute over the extension involves language in the House proposal that would reduce or kill subsidies to rural airports, specifically targeting some in Nevada, Montana and New Mexico -- three states with influential Democratic senators.

A larger dispute behind the scenes also is a cause for the inaction. Republicans oppose a recent National Mediation Board decision backed by Democrats that makes it easier for airline employees to unionize.

The board's ruling made passage of a vote to unionize dependent on getting more than 50% support of those voting. For example, if a company has 1,000 workers but only 200 take part in the vote to unionize, the rule change would require 101 "yes" votes for it to pass.

Under old rules, more than 50 percent of all workers eligible to vote -- or 501 "yes" votes -- would have been required for it to pass. Workers who didn't cast ballots were counted as having voted "no," making it more difficult for supporters to succeed.

Sen. Orrin Hatch, R-Utah, told CNN Wednesday he blocked a short-term compromise bid proposed by Democratic and Republican colleagues because of the organized labor issue.

At a news conference Wednesday, top Senate Democrats blamed Republicans for the work stoppage.

"This issue has nothing to do with essential air services (at rural airports) and everything to do with a labor dispute between airlines and the American worker," said Senate Majority Leader Harry Reid, D-Nevada.

In response, Rep. John Mica, the Florida Republican who chairs the House Transportation Committee, said Senate Democrats have only themselves to blame.

"Senate Democrats had a House-passed FAA extension before them for two weeks but chose to do nothing," Mica said.

But LaHood said controversial items didn't stop lawmakers from passing extensions on other occasions.

"If you've got issues with labor, if you've got issues with money going to small airports to help airlines fly in and out, work that out," he said. "Don't hold the American jobs and American people hostage over controversial issues that were not a problem on 20 other times when Congress passed an extension."

As the dispute drags on, numerous FAA employees are being forced to dig into personal savings, prioritize their bills, and cut back on expenses in order to avoid financial devastation.

"We're pretty much going to burn through all of our savings within a month and ... now we're working on programs out there to give us no-interest loans," said Mark DePlasco, one of the furloughed employees.

"I don't think any of us can even fathom going without a paycheck for another month and a half or even longer."

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Agreement reached in FAA stalemate

Senate Majority Leader Harry Reid says there is bipartisan compromise to end the partial shutdown of the Federal Aviation Administration that has left 74,000 transportation and construction workers idled.

In a statement Thursday, the majority leader did not specify details.

But other officials say they expect the Senate to accept a House-passed bill as early as Friday.

The officials spoke on condition of anonymity, saying the precise terms remain confidential.


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Debt Ceiling Deal Includes Deep Cuts & GOP Triggers (Creates More Poverty)

McConnell Sees Deal “Very Close”; Focus Is on Triggers for Cuts


Senator Mitch McConnell of Kentucky, the Republican leader, said Sunday morning that he was “very close” to recommending to his members that they sign on to a debt deal with President Obama and the Democrats.

Speaking on the CNN program “State of the Union,” Mr. McConnell said the emerging deal included as much as $3 trillion in cuts over the next 10 years, with much of that decided later this year by a joint congressional committee.

“What conservatives want to do is cut spending,” he said. “We’ve come a long way. This agreement is likely to encompass up to $3 trillion is spending cuts.”

In addition, Mr. McConnell said the agreement would allow votes in Congress on a balanced budget amendment.

Mr. McConnell indicated that proposals to force action by the joint committee had been among the most contentious of the last week. He declined to be specific about so-called “triggers” of across-the-board cuts that would go into effect if the committee could not agree on a plan — a measure meant to put pressure on the committee to finish its work.

But he said the committee — made up of six Democrats and six Republicans — would be under tremendous pressure by the American people and the markets to implement the further spending cuts.

“That’s been an item of outstanding discussion for over a week,” Mr. McConnell said. “We’ll let you know what we’ve done on the trigger issues when we make the announcement.”

Congress and the White House are racing to strike a deal to raise the federal government’s borrowing cap before Tuesday, the day that the Treasury Department has said it would no longer be able to pay for all of its commitments. Congressional Republicans have demanded spending cuts in exchange for approval to raise the federal borrowing limit.

Late on Saturday night, the Senate delayed until 1 p.m. Sunday a crucial vote on a debt ceiling bill put forward by the Democrats, amid growing indications that a compromise was in the works.

Appearing after Mr. McConnell on the same program, Senator Charles E. Schumer of New York, a Democrat, Mr. Schumer agreed that the question of a trigger was “one of the key issues that’s still being debated.”

Mr. Schumer echoed Mr. McConnell’s optimism but had a different assessment of the tone. The debate, he said, has “an enmity that in my 37 years as a legislator I have never seen.’’

But, he said, “I feel a lot better today about the ability to avoid default than I did even yesterday morning.’’

“And default would have such disastrous consequences for our nation for decades to come,’’ he said, adding, “The fact that our leaders are talking, though hardly any one agrees with everything that’s come up, is a good thing,’’ he said.

But Mr. Schumer sketched out a key area of disagreement, the components of a trigger for what would happen if Congress does not follow up with a second round late this year, based on recommendations by the commission. That is still under negotiation, he said.

“The key to the trigger is one word, equality,’’ he said. “It should be equally tough on Democrats and Republicans.’’ He proposed a series of policy defaults that would take effect if Congress could not agree, to encourage such agreement.

For example, he said, it might include steps anathema to Democrats, like cutting college scholarships for middle-class children or prescription drug benefits. And for Republicans, he said, “They would have to do things they hate, like close loopholes for oil companies, and corporate jets.’’

But at the moment, he said, “We don’t even know what all the details are, so we’re not yet ready to urge anybody to be for it.

On the ABC program “This Week,” David Plouffe, senior adviser to Mr. Obama, was asked if there was a deal. “No, there’s not,” he replied. But he laid out the outlines of an emerging agreement: a package that includes $1 trillion in cuts, and a Congressional commission that would report to Congress in the fall with a plan for additional changes amounting to $1 trillion or more.

Mr. Obama and the Democrats are still pushing for revenue increases, he said, though the Republicans remain opposed. “I think the American people have spoken out that they want a balanced approach,’’ he said.

He said twice that it was “inconceivable” that there would not be a deal, and said the American people were “furious” that no agreement had been reached.

Mr. Plouffe was followed by Senator Lindsey Graham of South Carolina, a Republican who has sometimes shown tendencies toward bipartisanship. He said that the emerging deal represented progress.

“It’s a $3 trillion package that will allow $7 trillion to be added to the deficit over the next decade,” he said. Without the agreement, $10 trillion would have been added, he said.

“We’re no longer running toward oblivion, we’re walking toward it,” he said.

But he has not decided whether to vote for it, he said.


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Tea Party Led House Reject Reid's Bill! Childish Deficit Reduction Gimmicks!

Angry House Kills Reid Plan

Okay, now we’re even. Nah nah nah.

That may sound like a schoolyard taunt, but it also captures what is going down in Washington as the clock ticks inexorably toward a self-imposed crisis—a government default in three days.

Rather than muting the partisanship and hammering out a compromise so the wealthiest country on earth can keep paying its bills, the two sides seem farther apart than a week ago. It’s getting harder to envision an agreement by the midnight Tuesday deadline, but like an unsupervised schoolyard game, the players can always change the rules and stop the clock for a couple of days if a deal is at hand.

The House got its latest licks in on Saturday, voting down a debt measure sponsored by Senate Majority Leader Harry Reid, 246 to 173, in a nose-thumbing exercise by John Boehner’s Republican troops. The debate was marked by boos and catcalls. And yet there was no reason for the House to vote because Reid hasn’t even been able to get his bill through the Senate, where it remains stalled by a filibuster threat.

Then again, this may have been payback for the Senate’s move in voting down Boehner’s budget bill Friday night shortly after the House speaker had muscled it through his chamber.

“We need Republicans to work with us,” Reid said as the House vote was winding down. “But I haven’t heard anything from the Republican leaders…We’ve done a lot that they wanted.”

Each legislative body has now demonstrated that it can blow up the other’s preferred alternative. What neither has shown is the ability to craft a bill that could actually gain enough support from both parties to break the gridlock.

Ladies and gentlemen, your democracy in action.

The result is that soldiers in Afghanistan told Joints Chiefs chairman Adm. Mike Mullen on Saturday that they’re worried about getting paid. The stock markets, after six straight losing sessions, are getting rattled. China’s state-run news agency is lecturing the U.S. for “irresponsible” behavior.



The working assumption until this weekend has been that this was typical Beltway gamesmanship and that the two sides would agree to a last-minute deal because the alternative was unthinkable. Now that’s far from certain. The sheer mechanics of getting complex legislation through both chambers, a House-Senate conference committee and to the president’s desk mean that time is running exceedingly short.

Reid had envisioned his measure as a last-train-leaving-the-station compromise—and to be sure, it goes a considerable distance toward meeting Republican demands. The bill would reduce the deficit by $2.4 trillion—or slightly less, depending on budgetary assumptions—without raising taxes. Three months ago, that would have been seen as a total capitulation to the GOP. Even such conservative stalwarts as the Wall Street Journal editorial page are urging the Republicans to declare victory and make a deal. So what exactly are they fighting over?

Reid’s budget-cutting sword would fall twice, slicing $1.2 trillion in spending each time. But rather than relying on an unpleasant “trigger” to push Congress to raise the debt limit a second time, Reid borrows a technique from his Republican counterpart, Mitch McConnell. The Nevada Democrat would largely give President Obama unilateral power to boost the debt ceiling. Congress could block the move only by passing a resolution of disapproval. The Boehner bill, by contrast, would force a second vote on the debt limit during the 2012 campaign.

If the Senate operated by majority rule, the Reid measure would already have passed. But the Democrats need to get 60 votes to avoid having the bill talked to death, and McConnell has sent Reid a letter with 43 of the chamber’s 47 Republicans vowing to vote no. (The exceptions are Scott Brown, Lisa Murkowski, Susan Collins, and Olympia Snowe.)

Everyone knows Washington is a laughingstock right now. Many lawmakers, including the leaders of both parties, want desperately to resolve the crisis before a default rocks the fragile economy. But the two sides are dug into their respective trenches, with Boehner squeezed by his hell-no Tea Party faction and Reid limited by the Senate’s sclerotic rules. Obama, who according to the polls has public opinion on his side, has seemingly been unable to move any votes, asking the public instead to email and tweet its displeasure.

In the end, some ugly compromise will be reached, though it may come after significant damage has been done to the economy. But that will pale compared to the damaged reputations of members of Congress who, even at this late hour, seem more interested in scoring political points than in legislating.


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Harry Reid Vs. GOP's Debt Ceiling Filibuster: Obama Urges Compromise

It’s Up to the Senate

It was hard to imagine that the House bill to raise the debt limit, and slash and burn the economy, could get any worse. But on Friday it did.

The bill, which narrowly passed the House with 218 Republican votes and none from Democrats, would allow the government to keep borrowing only until November or December and then require both the Senate and the House to pass a balanced budget amendment to the Constitution before the limit could be raised again.

That’s right, in a bid to win over his recalcitrant caucus, Speaker John Boehner agreed to go through all of this again in just a few months — and then hold the country hostage to passing an amendment that will never get the two-thirds of each chamber that it would need. The bill was, as it should have been, promptly dismissed by the Senate.

Now the only hope left for avoiding default on Tuesday is for the Senate to piece together a compromise that can pass with bipartisan majorities in both chambers. It will undoubtedly cut far too much, at a time when the economy can’t afford it. It will contain no needed revenue increases and could still trigger a downgrade. But it would eliminate the imminent threat of financial chaos.

For six months, House leaders catered to their Tea Party members, perhaps hoping that they could turn them to a reasonable path, or at least count on their votes in a clinch. That wish crumbled on Thursday night. At least two dozen Republicans, mostly freshmen, adamantly refused Mr. Boehner’s pleas to support his bill — his last shot at keeping the House’s positions relevant.

Instead of worsening the bill, Mr. Boehner could have negotiated with Democrats to construct one with a chance of resolving the standoff and passing in the Senate. But concerned largely with preserving his position, he gave in to the very lawmakers who have been insisting for weeks that the Obama administration is lying about the coming default. That argument alone should have given him pause about giving in to their demands.

The Senate quickly tabled the revised House bill. The legislation being prepared by Harry Reid, the majority leader, would raise the debt ceiling through March 2013. That avoids another showdown, and potential meltdown, in the middle of the crucial retail shopping period and at the start of the presidential campaign cycle, when Washington will be even less open to rational compromise.

The bill would cut the deficit by about $2.4 trillion over the next decade. Unlike the House bill, it spares Medicare, Medicaid and Social Security from benefit cuts, and counts the drawdown of troops from Iraq and Afghanistan as part of its savings, easing the burden on domestic programs. Unfortunately, it surrenders to the unrealistic Republican demand of no new revenues, cutting too much spending at a time when the economy is still in serious need of government help.

Mr. Reid is negotiating with Republicans on their demands for an enforcement mechanism to make sure the deficit cuts take place in the later years of the deal. Both parties envision a bipartisan panel that could recommend cuts; if those are not adopted, some kind of automatic cuts would go into effect. This automatic knife can be dangerous, arbitrarily cutting without regard to economic circumstances. Democrats should insist that taxes and revenues are not ruled out as a way to lower the deficit.

The House planned a deliberately obstructionist vote on Saturday against the Reid bill, but some Senate Republicans are signaling they are willing to agree to this more reasonable framework. If enough of them can join the Democrats and ignore the bleats of the Tea Party, it may still be possible to avert calamity.


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Tax Cut Deal To Include Unemployment Benefits Extension: Gop & Dems Compromise

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U.S. Senators Say Deal Likely On Extending Tax Cuts, Jobless Benefits


Top U.S. Senators from both parties indicated Sunday that a deal was likely soon on temporarily extending Bush-era tax cuts for all Americans, along with unemployment benefits that have expired.

However, Republican senators made clear they are unlikely to budge in their opposition to other Democratic priorities in the final weeks of the lame-duck session of Congress that ends in early January.

Senate Minority Leader Mitch McConnell, R-Kentucky, told the NBC program "Meet the Press" he was "optimistic" about an agreement on the tax rates and jobless benefits, but added there likely wasn't time for the Senate to ratify a new nuclear arms treaty with Russia or complete work on a major defense bill that includes repeal of the "don't ask, don' tell" policy banning openly gay and lesbian soldiers.

Democrats, stymied by the ability of Senate Republicans to filibuster their agenda, shot back with angry words.

"I hope Americans will understand how craven and empty and hollow and contradictory the Republican position is," veteran Sen. John Kerry, D-Massachusetts, told CNN.

The posturing and rhetoric reflects the changed political equation in Washington in the aftermath of the November congressional elections described by President Barack Obama as a "shellacking" for Democrats, with Republican recapturing control of the House and narrowing the Democratic majority in the Senate.

Congressional Democrats have tried but failed to push through their preferred proposals in the lame-duck session, while they still have majorities in both chambers.

The House approved Obama's proposal to extend the Bush tax cuts only for people earning up to $200,000 a year as individuals or $250,000 a year for families, with income above those levels increasing to levels from the 1990s. In the Senate, Republicans on Saturday successfully blocked debate on the proposal, as well as a similar one that the income threshold for higher tax rates at anything over $1 million.

Democrats contend the nation must prevent working-class Americans from facing higher taxes, as promised by Obama in his 2008 election campaign, but can't afford the extra hundreds of billions of dollars it would cost to maintain the tax cuts for the wealthy. Republicans argue that the economy remains too fragile to allow anyone's taxes to increase.

For now, compromise appears to include a temporary extension of the tax cuts enacted in 2001 and 2003, probably for a year or two, while Congress works on a long-term plan to reduce the nation's debt.

"I've said that neither side has the votes to get what they want, so I think we're going to have to kick it over for two years," Republican Sen. Orrin Hatch of Utah told CNN's "State of the Union" program, adding that the deal also will have to include extending unemployment benefits, as demanded by Democrats. "If you want to go beyond that then I think things break down."

On the same program, Democratic Sen. Ron Wyden of Oregon called for a one-year extension of the tax cuts for everyone to buy time for Congress to work out a total tax overhaul. He said the key was to get a deal quickly and move forward.

"This is a town driven by a culture of procrastination," Wyden said. "If you don't force fast action, what you'll end up doing is just kicking the can down the road, and the only thing those jobless Americans will be is a kicked can."

Sen. Dick Durbin of Illinois, the chamber's second ranking Democrat, told the CBS program "Face the Nation" that the tax cut and jobless benefits issues must be linked.

"The notion that we would give tax cuts to those making over $1 million a year, which is the Republican position, and then turn our backs on 2 million Americans who will lose unemployment benefits before Christmas, 127,000 in the state of Illinois, is unconscionable," Durbin said.

On the same program, Republican Sen. Jon Kyl acknowledged that an agreement would include both the extended tax cuts and the unemployment benefits.

"There are other items that both the president and Republicans would like to see a part of this package as well," Kyl said. "As one of the six negotiators, I can tell you there have been a lot of discussions about a lot of the other elements as well. But at least in theory I think an agreement could be reached in the relatively near future."

Asked if Congress could break at the end of the year without acting on the measures, requiring a restart of the process when the new Congress convenes in early January, Hatch told CNN: "I don't think we can. I think that would be disastrous."

Kyl echoed that on CBS, saying: "It's almost Christmas Eve. I don't think anybody thinks that we can leave this thing hanging."

Or as Durbin put it: "There's nothing that motivates members of Congress more than the thought of a recess or going home."

The biggest challenge for Democrats may be getting their House caucus to accept a compromise, a senior Democratic aide told CNN on Sunday.

According to the source, House Democratic leaders met Saturday night with Vice President Joe Biden, White House Chief of Staff Pete Rouse, Treasury Secretary Timothy Geithner and White House budget chief Jack Lew to discuss the negotiations, while House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid visited the White House to meet with Obama.

"There's going to be a deal," the senior Democratic aide said on condition of not being identified by name, adding: "the folks who are going to have the toughest time agreeing to that are House Democrats."

McConnell and the rest of the Senate Republican caucus have refused to consider any other issues until Congress acts on the tax-cut extension and spending authorization plans for the rest of the fiscal year.

That leaves little time for more proposals being pushed by Democrats, McConnell said on NBC. In particular, he questioned if the Senate would have time to take up a major defense authorization bill that includes the "don't ask, don't tell" repeal, and the New START treaty with Russia that resumes mutual inspections of nuclear arsenals and limits the number of warheads.

The START treaty has some GOP support, including former Secretaries of State George Schultz, Henry Kissinger and Colin Powell, as well as the ranking Republican on the Foreign Relations Committee, Sen. Richard Lugar of Indiana.

Lugar told CNN's "State of the Union" that "the votes are there" to ratify the treaty now in the Senate, if it can be brought up for a vote. However, Kyl told reporters that "I don't think we're going to have time to do the treaty in the lame-duck session."

On NBC, McConnell offered a limited view of possible compromises with Obama and Democratic leaders, saying: "To the extent that the president wants to do things that I and my members are comfortable with, we want to do that for the country."

Kerry responded on NBC that the Republicans were using their filibuster power to hold Democratic proposals hostage.

"What we've seen is a Republican Party that's absolutely prepared to deny unemployment insurance to people who have been laid off, who can't pay their bills, who want to, you know, put food on the table for their families," Kerry said. "They (Republicans) have said, "No, we're willing to hold that hostage so we can give the wealthiest people in the country a bonus tax cut."

He called such politics hypocritical, and said of McConnell: "All he talked about was if they could do something that makes (them) comfortable. That's not how you compromise. They need to have a little discomfort, just as we have a little discomfort."


Sources: CNN, MSNBC

GOP Wins Tax Cut Extension Showdown! Now Jobs!

Senate Showdown May Pave Way For Year-End Tax Deal


U.S. Senate Republicans derailed legislation Saturday to extend expiring tax cuts at all but the highest income levels in a political showdown that paradoxically clears a path for a compromise with the White House on steps to boost the economy.

"We need to get this resolved and I'm confident we can do it," President Barack Obama said shortly after the near party-line votes. The public must have "the peace of mind that their taxes will not go up" on Jan. 1, he added.

Obama has signaled that he will bow to Republican demands for extending tax cuts at all income levels, and his remarks capped a day that lurched between political conflict and talk of compromise on an issue that played a leading role in last month's elections.

Sen. Chuck Schumer, D-N.Y., eyeing the 2012 campaign, accused Republicans of siding with "millionaires and billionaires" with their rejection of proposals that would let tax cuts passed during George W. Bush's presidency lapse on seven-figure incomes.

Republicans noted that unemployment rose to 9.8 percent last month and said it made no sense to raise taxes on anyone in a weak economy. Sen. Jon Kyl, R-Ariz., jabbed that Democrats were undergoing a "political catharsis" in public after losing control of the House and surrendering several seats in the Senate in the Nov. 2 election.

But the rhetoric subsided quickly after the votes, and Senate leaders in both parties said they hoped political clashes would give way to compromise in the next several days.

Kentucky Sen. Mitch McConnell, the GOP leader, said he was relatively confident there would be a deal with the White House "not to raise taxes in the middle of a recession." He said talks were continuing on the length of an extension to be enacted for the cuts that were put in place in 2001 and 2003.

Senate Majority Leader Harry Reid, D-Nev., said he hoped for an agreement by the middle or end of next week on legislation that would combine an extension of tax cuts with a renewal of expiring jobless benefits for the long-term unemployed.

Officials have said that in addition to tax cuts and unemployment benefits, the White House wants to include renewal of several other tax provisions that are expiring. They include a break for lower- and middle- class wage earners, even if they don't make enough to pay the government, as well as for college students and for companies that hire the unemployed.

Key lawmakers and administration officials have been at work negotiating the terms of a possible deal for several days.

But many congressional Democrats privately have expressed anger at Obama for his willingness to surrender to Republican demands to let the tax cuts remain in place at upper incomes, and numerous officials said no compromise would be possible until they had engineered votes in both the House and Senate.

Any deal would mean a reversal for Obama, who said in the 2008 presidential race and this year that he wanted to let cuts expire above incomes of $200,000 for individuals and $250,000 for couples.

In the Senate, a bill to enact Obama's original position was blocked on a vote of 53-36, seven votes short of the 60 needed to advance. Republicans were unanimous in their opposition, and were joined by Democratic Sens. Russell Feingold of Wisconsin, Joe Manchin of West Virginia, Ben Nelson of Nebraska, Jim Webb of Virginia and independent Joseph Lieberman of Connecticut.

The second measure would have kept the tax cuts in place on incomes over $1 million. It appeared crafted to appeal to senators from states with large high-income populations, as well as cast Republicans as protectors of the rich.

It was blocked on a vote of 53-37, also seven short of the 60 needed. A slightly different lineup of Democrats sided with Republicans, including Sens. Dick Durbin of Illinois, Tom Harkin of Iowa, Jay Rockefeller of West Virginia and Feingold. Lieberman also opposed it.

The White House opposed the second measure bill, and given the president's willingness to sign a bill to extend all the expiring tax cuts, there was never any doubt about the outcome of the day's proceedings in the Senate.

But Democrats said that even with elections nearly two years away, they intended to try and depict Republicans as defenders of the rich whose policies contribute to rising deficits.

"Do we want to extend those tax breaks for millionaires and billionaires at a time of huge deficits. I would argue vociferously we shouldn't, said Schumer.

Referring to the 2012 elections, he said about Republicans: "I'm going to be here for the next year, next two years, to remind my colleagues that they were willing to increase the deficit $300 billion to give tax breaks to people who have income over a million dollars."

Republicans sounded alternately bemused and offended.

"It is the most astounding theory I have ever seen. Raise taxes to create jobs," said Sen. John Thune, R-S.D.

Sen. Orrin Hatch, R-Utah, said Democrats perhaps viewed the votes as a gift to their political constituents. But, he added, "two years of wall to wall Democratic rule has only made the situation worse" in the economy.

The day's events capped a week that included a meeting at the White House at which Obama and top congressional Republicans sat down together for the first time since the elections.

Both the president and GOP lawmakers pledged afterward they would try to work together for the good of the economy, and agreed to set up a small negotiating group to discuss the tax issues.

The White House, Reid and Republicans have been negotiating quietly, and McConnell made a point of saying he had been in frequent touch with the administration in recent days.

In addition to tax cuts, Obama has made ratification of a new arms control treaty with Russia a priority of the postelection session of Congress, reducing his leverage with Republicans in the struggle over taxes.

Senior Senate Republicans have indicated they will not try to interfere with a debate on the issue as long as government spending and tax cut issues have been resolved to their satisfaction.

A two-thirds majority is required for ratification, meaning the White House will need the support of at least nine Republicans to prevail. Vice President Joseph Biden and other officials have been involved in talks with several GOP senators in hopes of lining up the votes needed.


Sources: AP, CNN, McClatchy Newspapers