The Political Chase

Notable

Every blogger gets a rush when given an honorable mention from another site. Toy is noted at The Progressive today for this post.

Congratulations Toy.

Bush To Nominate FCC Commissioners

According to the Washington Post, Bush is preserving the two parties’ balance of power on the FCC and thus continuing to limit Chairman Kevin J. Martin’s freedom of action.

The commission, which has five members when at full strength, has operated for most of this year with two Republicans, two Democrats and one vacant seat. As a result, Martin, a Republican, has had to strike compromises with the Democrats on a series of decisions.

The chairman has proved adroit in cutting deals with the Democrats but this has forced him to compromise on many issues. For example, the FCC last week approved SBC Communications Inc.’s purchase of AT&T Corp. and Verizon Communications Inc.’s acquisition of MCI Inc. by a 4-0 vote. However, at the Democrats’ behest, the commission imposed a series of conditions on the mergers, which Martin had wanted to approve without any limitations.

Republican Commissioner Kathleen Q. Abernathy must step down when the Senate’s current session expires, which is expected later this year. As a result, even if Tate and Copps are quickly confirmed by the Senate, Martin would still be grappling with an evenly split commission unless the White House were to takes steps — such as a recess appointment — to bolster the Republicans’ position.

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Republicans Propose Additional Tax Cuts

Why should we be worried about the deficit when we can pass bonds to China for several billion dollars and just print out a few twenties? Right? If I had the privilege of printing money at will, with no repercussions, I would not be concerned about loss of revenue from another source. And so it goes. Sen. Charles Grassley (R-IA) submitted a bill for yet another tax cut — $70 billion worth of cuts.

The obvious question, which alludes Republicans, is if we cut revenue in one area, exactly where will that loss in revenue be recovered? Income from a stimulated economy is not the answer.

Now, let’s take a closer look and see who the real beneficiaries of the tax cut are.

• Extend several of Mr. Bush’s biggest tax cuts, including those on stock dividends and capital gains. High income earners: +2
• Prevent for one year an expansion of the alternative minimum tax. Middle income earners: +0 (no points for prevention due to no tax or income change)
• Extend tax breaks for:
  • college tuition. All levels: +0 (effects all levels, therefore 0 points)
  • for capital investments by small business All levels: +0 (guesstimate)
  • investment in research. Big business: +1

Results:

• High income earners: 2 points
• Middle income earners: 0 points
• Big Business 1 point
• All others 0 points

Now, its blatantly obvious this is a less than rudimentary method of measurement and does not consider the financial variables in each area. But, what it does do is act as a simple scoreboard on who gets tax benefits and who doesn’t. Status quo for those who need aid the most. Solid gains for those who need it the least. The puck (buck?) slides across the ice and big business and high income earners hit the goal dead center again.

Ten percent or $7 billion of the bill is allocated for Katrina relief; the concept is fine, but is it the best way or only way? And, the question still remains - where’s the cash flow in to compensate for the outflow.

A few days ago, I noted Alan Greenspan’s warning to Congress about the soaring deficit. An excerpt from his report to Congress is worth repeating. [Emphasis added.]

With just three months left before he leaves office, Federal Reserve Chairman Alan Greenspan raised a warning to Congress: The country could face “serious economic disruptions” if bloated budget deficits are not curbed.

The Fed chief’s strong comments, made during an appearance Thursday before Congress’ Joint Economic Committee, come after the government produced a $319 billion budget deficit this year _ an improvement from the record amount of red ink registered in 2004 but still the third-highest deficit on record.

That’s pretty clear to me.

Furthermore, Greenspan does not make bold warnings like the above frequently. His method of management is not Chicken Little. Recognize, but remove the fact of the federal budget sliding from a substantial surplus to record deficits, things have changed over the past six to seven years. In the late 90’s, if it was even rumored that Greenspan might give a significant warning, the financial markets would spin like a top.

In spite of Greenspan’s warning and the record of performance, the GOP keeps offering up tax-cut bills.

Our economic policy seems to be developed by the same group that developed the peace plan for Iraq, and the justification for invasion. Any bets on how long it will be before the dollar has an equivalent value of the peso?

McClellan Deflects Questions on Torture Exemption A Couple Dozen Times

Here’s an amazing transcript!

At today’s White House press briefing, Scott McClellan was hit with a number of questions about the “ethics classes” the president’s staffers are now attending. But much of the briefing featured efforts by Helen Thomas, at the start, and then other reporters to get McClellan to explain the apparent contradiction between his claims that the U.S. does not torture anyone and Vice President Cheney’s request for an exemption in this matter.

Chalabi Gets a Cautious Welcome in Washington

What does this man really know, I wonder? In The NYTimes today:

An administration official, declining to be identified because of the delicate nature of the visit, described Mr. Chalabi as “an avid fisher in troubled waters, sometimes to our advantage and sometimes not.”

Perhaps he will be the key in the investigations into the misuse of prewar intelligence in Iraq. Except that:

It was considered doubtful that Mr. Chalabi would accommodate them, however, because he will have a busy few days meeting with friends, former friends and possible new friends in Washington.

He does have to reconcile his relationship with the Bush Administration. There are actually people that are impressed by this man. And I have to say I am a little too, but for all the wrong reasons. It amazes me that we would applaud lack of loyalty so blatantly. We really have strayed far beyond what I thought this country was about.

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C.I.A. Asks Criminal Inquiry Over Secret-Prison Article

It seems that inquiries and investigations abound. Now it seems that J. Dennis Hassert and Bill Frist are trying to find the leak of the Secret Prison article that appeared in last Wednesday’s Washington Post. In the NY Times today, there’s an article by DAVID JOHNSTON and CARL HULSE.

“If accurate,” the letter said, “such an egregious disclosure could have long-term and far-reaching damaging and dangerous consequences and will imperil our efforts to protect the American people and our homeland from terrorist attacks.”

I’m all for making sure classified information isn’t leaked and jeopardizing our security, but I question why the Republicans want this “technicality” out when it only shows that we were illegally going against the Convention set up by the UN. At the end of the article, though, Sen. John Warner (R - VA) who heads the armed service committee, says “In my judgment, the further investigation is simply unnecessary.” I’m sure he doesn’t want to really get to the bottom of this.

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Dems Win, GOP Whines

Democrats won the gubernatorial races in New Jersey and Virginia. The Dems have their party hats out, especially because of the Virginia win. Virginia has been a solid red state for several years.

I’ve heard some out-of-the-park excuses and prognostication before, but Ken Mehlman, chairman of the RNC, hit a grand slam with this one. [Emphasis added.]

[I]n the last seven elections, the party that had won the White House the year before had lost the race for Virginia governor. As for New Jersey, Mr. Mehlman said, "It’s a tough state, and our candidate was overwhelmingly outspent [sic]."

As to Mr. Mehlman’s statement on New Jersey, that is a bit revealing in spite of his insinuation that the election results had nothing to do with issues, the candidates themselves, or the negatively perceived effect of the Republican party in trouble nationally. GOPers have a very good history of campaign fund raising nationally and they have been quick to boast not only can the GOP beat the Dems at the polls, they leave them way behind in fund raising.

In light of a double-digit defeat in New Jersey, it seems only logical that Mehlman would not want to air all of his dirty laundry.

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Victoria (toy) DeIorio

I am quite pleased to announce that Victoria (toy) DeIorio will be a guest contributor at The Political Chase over the next few days. For the next day or so, I will not be able to be glued to the keyboard quite as much, and no, this isn’t a Home Depot joke. Toy, editor of Toyus Interuptus, will keep a watchful eye on TPC while I am out and about.

TPC is fortunate to have Toy’s eclectic contribution. Moreover, Chicago is her home. If luck is really running our way, Toy may bump into America’s newly found hero, Patrick Fitzgerald, and quiz him a bit on what is really happening inside the Beltway.

Many thanks to Toy for spending some time at The Political Chase.

—- David Pleasant 

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