Obama and Congress Facing New Challenges, While the Auto Industry is Dealt Another Blow

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Officials on Tuesday said the Obama administration is trying to find ways to sidestep Congress in order to prevent American companies from reincorporating overseas to avoid paying U.S. taxes, Josh Lederman reports, Obama Seeks Executive Ways To Limit Tax Inversions. President Barack Obama has condemned so called tax inversions as unpatriotic and urged Congress to stop them, but Republicans and Democrats disagree about the best solution making congressional action unlikely. Messing with inversions without Congressional approval would further open up Obama to charges he’s unilaterally rewriting tax codes as House Republicans are already suing Obama for exceeding his authorities. Treasury Secretary Jacob Lew, last month, stated that the administration had examined the tax code and without new laws its option were limited. However, on Tuesday, the Treasury Department said in a statement: “Treasury is reviewing a broad range of authorities for possible administrative actions that could limit the ability of companies to engage in inversions, as well as approaches that could meaningfully reduce the tax benefits after inversions take place.” As Lederman explains it, “In an inversion, a U.S. business merges with or is acquired by a foreign company in a country with a lower tax rate, allowing the company to lower its tax bill. Frequently the companies maintain their U.S. headquarters and operations, and the U.S. entity often maintains control of the company. Obama argues that amounts to companies attempting to choose which tax laws they want to follow — a luxury not granted to individual taxpayers.” Both parties generally agree that inversions are a problem, but do not agree on the causes and the solutions. While Democrats want to make it harder for U.S. firms to reincorporate overseas, Republicans argue that Congress needs to lower the corporate tax rate to keep businesses in the U.S. The united States has the highest corporate tax rate at 35 percent in the industrialized world and taxes income that’s earned overseas and brought back to the U.S. Sen. Elizabeth Warren, D-Mass., one of the three Senator Democrats who wrote to Obama Tuesday urging him to take immediate executive action on inversions, stated, “It would be an important first step toward treating companies that renounce America the same way we treat people who renounce America — as freeloaders who get cut off from other benefits.” A House Speaker John Boehner spokesman said Tuesday that Obama should work with Congress on adding inversions rather than action on his own, while the U.S. Chamber of Commerce warned that actions taken by Obama could make the situation worse. The Congressional Research Service confirmed that 50 U.S. based companies have merged with or acquired foreign businesses over the past decade in inversions.

Meanwhile, Congress according to a Washington Post/ ABC News poll released Tuesday, found that 51 percent of Americans disapprove of their own congressional representative, Ariel Edwards Levy reports, A Record Number Of Americans Don’t Like Their Own Member Of Congress. This is the first time in a quarter century that the poll has had a disapproval rating higher than 50 percent and even higher than the 47 percent disapproval rating of last year’s government shutdown. Terrible ratings are nothing new since Congress has an average approval rating of under 12 percent, however, in the past, Americans approved more of their district’s representative than the legislative branch as a whole, but that number took a dive as well. In June before Republicans took back the House in 2010, 40 percent of Americans told Gallup their represented didn’t deserve to be re-elected, yet 85 percent of members seeking re-election held their seat. The poll also found among the 1,029 adults from both parties surveyed via phone between July 30 and Aug. 3 disapproved of their representative equally at 46 Democrats and 44 percent Republicans. This also differs from the past two midterms as polls found higher anti-incumbent sentiments among the party that would go on to win the House.

An even bigger threat to Congress and the White House, according to what U.S. officials told CNN, is a new leaker that exposed national security documents in the aftermath of surveillance disclosures by former NSA contractor Edward Snowden, Evan Perez reports, New leaker disclosing U.S. secrets, government concludes. The Intercept, a news site launched by Glenn Greenwald who also published Snowden’s leaks, published Tuesday a news story based on national security documents shows proof of the newest leak. The article focuses on the growth in the U.S. government databases of known or suspected terrorist names during the Obama administration citing documents prepared by the National Counterterrorism Center dated August 2013 which was after Snowden left the U.S. to avoid criminal charges. Government officials are trying to find out the identity of the person, while Greenwald, in a February interview with CNN’s Reliable Sources, said: “I definitely think it’s fair to say that there are people who have been inspired by Edward Snowden’s courage and by the great good and virtue that it has achieved. I have no doubt there will be other sources inside the government who see extreme wrongdoing who are inspired by Edward Snowden.” It is not clear how many documents the new leakers shared or how much damage it caused as the documents shard are labeled “Secret” and “NOFORN” which means it was not shared with foreign government. That’s a lower classification than most of the documents leaked by Snowden. Government officials said he stole 1.7 million classified documents many of which were labeled “Top Secret” a higher classification for most important government secrets.

On Tuesday, Democratic Senator Claire McCaskill of Missouri has proposed a new bill called the Motor Vehicle and Highway Safety Enhancement Act aimed to improve automotive safety following the high profile recalls of General Motors and Toyota, Autoblog reports, Senator Pushes For Up To Life Sentence For Auto Execs Found To Delay Recalls. The plan includes doubling the budget for the National Highway Traffic Safety Administration over the next six years, removing the $35-million limit for fining automakers, and most importantly a provision to punish auto executives who knowingly delay recalls with a life sentence. McCaskill’s office told the Detroit News: “(The bill) gives federal prosecutors greater discretion to bring criminal prosecutions for auto safety violations and increases the possible penalties, including up to life in prison for violations that result in death.” If a delayed recall ends in serous injuries, execs could face a 15 year stint behind bars. By removing the limit on per-vehicle fines, the fine structure can be increased from $5,000 to $25,000 e.g. GM could have been hooked for $55 billion in fines for its ignition switch recall rather than just $35 million. According to The News, McCaskill said: “With millions of Americans behind the wheel every day, and more than 33,000 killed on our roads each year, we’ve got to do more to keep our cars and the roads we drive them on safe. Painful recent examples at Toyota and GM have shown us we also must make it easier to hold accountable those who jeopardize consumers’ safety. For too long, auto safety resources have remained virtually stagnant while cars and the safety challenges they present have become more complex.”

Repubs Fight Obamacare, Botched Executions, Firing Squads, Obama Limits Business Mergers, Failed VA Reform and the End of a Dream

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According to federal data released Wednesday to ProPublica, nearly one million transactions on the federal exchange have occurred following more than 5 million people who signed up using Healthcare.gov before April 19, the end of the open enrollment period, according to Charles Ornstein, Obamacare Website Getting So Much Traffic It’s Surprising Experts. All told, between federal exchange and 14 state exchanges, more than 8 million signed up fro coverage. The data covers the 36 states using the exchange including Texas, Florida, Illinois, Georgia and Michigan. Charles Gaba, who runs the site acasignups.net tracks enrollment numbers estimating that between 6,000 and 7,000 people sign up for coverage reach day on the exchange after the official enrollment period ended. About 86 percent of those sign ups are eligible for government subsidies to help lower their monthly payments, whole those subsidies are being challenge by lawsuits in federal court contenting that they aren’t allowed by the Affordable Care Act. Two federal appeals courts came to conflicting decisions Tuesday on the permissibility of subsidies with one saying no and one saying yes. The Obama administration said they will remain in effect as the cases proceed in court. The next time that the general public can sign up fro coverage through the exchanges is November 15 to February 15, 2015. On Thursday, House Speaker John Boehner (R-Ohio) told reporters: “You know, the discussions about Obamacare and what the replacement bill would look like continue. We’re trying to build consensus around one plan. Not there yet.” According to Igor Bobic, Don’t Worry, Republicans Are Still Working On A Plan To Replace Obamacare, the remarks were made following an April decision by the party to delay a promised alternative to the exchange. However, Boehner is intent on keeping his focus on Obamacare by trying to sue the Obama administration for failing to implement a portion of the law in a timely manner.

While healthcare seems to continue to be a hot button issue, another issue has taken the spotlight recently due to botched executions. An influential federal appeal court judge on Thursday said that the nation’s third botched lethal injection in six months reinforces his call to bring back firing squads, according to the Associated Press, Judge argues for return of firing squad executions. Chief Judge Alex Kozinski of the 9th U.S. circuit Court of Appeals, said lethal injection was a dishonest way to disguise the brutal nature of capital punishment, the AP reported. Kozinski wrote unfavorably about lethal injection in his decision Monday and while arguing against delaying the execution of Joseph Rudolph Wood III in Phoenix, who gasped for more than 90 minutes for breath taking nearly two hours to die Wednesday. According to Kozinski, a properly trained firing squad would be foolproof and quick in executing an inmate and avoid complications surrounding lethal injection. He told the AP: “I’ve always thought executions should be executions not medical procedures.” Kozinski said he supports capital punishment but states and federal government should stop lethal injections for a foolproof plan such as firing squads or the guillotine, however, he doubted that the public would accept the latter form.

From botched executions to bad business practices, President Obama is addressing misgivings about tax driven overseas mergers of U.S. corporations by issuing a new call to end the practice now and questions the patriotism and citizenship of those companies, the Associated Press explains, Obama wants limits on US company mergers abroad. The push comes as many companies try to reorganize with foreign entities partly to reduce their tax payments to the U.S. Though Obama did include a proposal to rein in such mergers and acquisitions in his 2015 budget, his administration brought more attention to these transactions last week with a letter from Treasury Secretary Jacob Lew to House and Senate leaders saying such deals known as inversion “hollow out the U.S. corporate income tax base.” Obama is urging Congress to enact legislation retroactive to May in order to stop companies from rushing into deals to avoid the law. However, Republicans and some Democrats prefer to make these changes as part of a comprehensive overhaul of corporate tax code that would also lower corporate tax rates and reduce incentives for companies to seek out countries with lower taxes. Administration officials estimate the deals if continued will cost the U.S. Treasury $17 billion in lost revenue over the next decade. Lew in the letter said: “We should not be providing support for corporations that seek to shift their profits overseas to avoid paying their fair share of taxes.”

Meanwhile, while the tax code has failed to regulate the way it should, the VA continues to suffer from fallout of scandals and Congress failing to do its part. In an interview Wednesday night with Larry King, Sen. Bernie Sanders (I-Vt.) criticized President Obama for underestimating the Republican opposition causing them to spin their wheels waiting for a legislative compromise. Sam Stein reports,
How VA Reform Fell Apart In Less Than 4 Days, on Thursday Sanders told reporters he may have also been victimized by the oppositions, announcing that after weeks of negotiations with House Affairs Committee Chair Jeff Miller (R-Fla.) over reform legislation aimed at the Department of Veterans Affairs and his Senate Veterans Affairs Committee that negotiations have ground to a halt. The two men spoke on Monday for an hour via phone conference with acting VA Secretary Sloan Gibson on the costs of the VA reform bill that the Congressional Budget Office valued at $50 billion for the Senate bill and $54 billion for the House bill. The money was meant to allow vets without a VA facility the option of going outside the system for medical treatment, however, the discussion moved to funding needed to repair facilities, build new ones, hire personnel and update records systems totaling $17.6 billion according to Gibson. Senate Majority Leader Harry Reid (D-Nev.) said he was worried on Tuesday that VA reform would not get done before the recess in August. Sanders said that Gibsons request can be reduced and the cost for veterans to find care outside the VA could be lowered as well in an effort to find middle ground. However, Sanders and miller have not talked again since their Monday phone call. On Wednesday, Sanders upped the public pressure by going to the Senate floor to warn about the possibility of Congress leaving for recess without solving the issue that lawmakers deem a must fix crisis followed by a press conference to brief reporters. On Wednesday, Jessica Eggimann, Chief clerk of Miller’s committee, sent an email to a top staffer on Sanders’ committee, asking her to forward the notice that Miller was hosting an open conference committee meeting the next day to discuss the legislation. However, Sanders’ office took the move as inconsiderate and a political stunt. The worst offense for Democrats was a line asking Sanders to join Miller in convening a conference on July 28 “for a formal vote on this proposal.” Sanders organized a press conference with fellow Senate Democrats criticizing Miller for demanding a vote on a proposal that did not adhere to the outlines of earlier discussion, according to an aide. A Senate Democratic aide said that by ratcheting up the politics of VA reform, the party increased the possibility of passage. By the end of the day Thursday, both Sanders and Miller paved the way to restart talks saying that they would work through the weekend to finalize a deal.

Meanwhile, Sen. Marco Rubio (R-Fla.) on Thursday demanded in a statement that the Obama administration needed to “wind down” a policy helping more than 550,000 undocumented workers who came to the U.S. as children which could restart deportation of young people who lived here for years. Elise Foley reports, Marco Rubio: End Relief For Dreamers, Rubio’s statement outlined suggestions to deal with the crisis of more than 57,000 unaccompanied minors who cross the U.S. border illegally since October. According to the statement, Rubio believes: “Because the recent wave from Central America spiked after DACA was announced, it is in our interest to wind down this program. If you are not currently in it, you should not be eligible for it.” New immigrants aren’t eligible for Deferred Action for Childhood Arrivals, or DACA, the Obama administration policy that allows undocumented immigrants called Dreamers who enter the country as children before June 15, 2007 to apply for temporary authorization to stay and work legally. Most Republicans have opposed the policy since its introduction in 2012, but the GOP’s calls to end the policy have gotten louder. All 24 Republican House members and both senators in the Texas congressional delegation sent a letter to Obama on Thursday calling for suspension of efforts to expand deportation relief. The letter reads: “Your Deferred Action for Childhood Arrivals (DACA) Executive Order has shielded over half a million illegal immigrants from current law. And it has sent the regrettable message that illegal immigration will not be punished in the United States.” Last month, according to Foley, Rep. Darrell Issa (R-Calif.) was joined by 32 House Republicans calling for Obama to end DACA and in a letter Issa accused Obama of selectively enforcing the law. The letter reads: “DACA rewards families and individuals who have broken our laws, further encouraging others to seek similar benefits.” Lawmakers have been vague about what to do with these undocumented young people who are eligible for DACA. Cruz’s bill would apply to future relief, while Rubio said relief should not be given out in the future meaning current DACA recipients could keep their temporary status. However, ending the policy could mean that undocumented young people could risk deportation and those current under the policy would eventually have to reapply. Rep. Bob Goodlatte (R-Va.) explained earlier this month that if the administration ends DACA and similar policies protecting Dreamers from deportation: “They should not be under a process created that the president doesn’t have the authority to do, and they would be in the status that they were in prior to this program being established.”

Obamacare ‘Glitch’ Allows Some Families To Be Priced Out Of Health Insurance

Obamacare ‘Glitch’ Allows Some Families To Be Priced Out Of Health Insurance.

I know Obamacare was suppose to help but who I don’t know. The sad reality is some families will not be able to afford health insurance because of a glitch in the president’s overhaul law and what was hoped to be rectified by IRS regulations issued Wednesday has no fix the problem. How many people will be affected by this is still unclear. As a result, some families who cannot afford employer coverage will not get financial assistance from the government to purchase their own independently. The Obama administration is passing the buck onto Congress because the way the law is wrote he cannot do anything, while officials say that the administration tried to lessen the impact by forgiving tax penalties  for those who can’t get coverage as ruled by the IRS. Ron Pollack, executive director of Families USA, says this is a significant problem that must be fixed through legislation not regulatory process. Little help will come from the Republican controlled House who want to see the rule repealed, so an immediate fix may not come. Staring Oct.1 many middle class uninsured will be able to sign up for government subsidized private coverage through health care exchanges coverage would go into effect Jan. 1, while low income people will use expanded safety net programs. All Americans will be required to have health insurance whether through their employer, a government program, or buying it themselves. According to an advocacy group for children, First Focus, 500,000 children may remain uninsured because of the glitch. Congress defined the law so that the coverage can’t cost more than 9.5 percent of family income restricting people who meet the affordable coverage from using subsidies to go into the new insurance markets. The restriction was to prevent people from moving away from employer coverage. The issue is that a typical workplace plan costs $5,600 for an individual and $15,700 for a family according to Kaiser Family Foundation. If the employer is not willing to pay part of the cost, then a family cannot afford the full premium on their own locking them out of financial assistance from the health care overhaul law. Employers are relieved that the president did not put the cost of providing for family coverage on them.  What happened to the idea of Universal Healthcare? I hear Canada or even Mexico is looking good this time of year.

 

 

 

 

 

 

 

 

 

Obamacare Pre-Existing Condition Fee To Cost Companies $63 Per Person

Obamacare Pre-Existing Condition Fee To Cost Companies $63 Per Person.

I don’t really care for Obamacare, but I am glad that corporate America is being held responsible for the health of its employees since they work them so dang hard, but it does not make up for universal healthcare not even close.