May 21, 2013

Second IRS official resigns after scandal

 Second IRS official resigns after scandal
Daniel Werfel(Photo: James J. Lee Military Times)

Story Highlights

Acting IRS Commissioner Steven Miller offered his resignation Wednesday
had targeted Tea for extra scrutiny
President called the misconduct “inexcusable”

(PhatzNewsRoom / ) — WASHINGTON — President said on Thursday that he was naming a trusted White House budget official, Daniel Werfel, to serve as his new acting IRS commissioner, while a second top IRS official announced he was stepping down from the agency in the aftermath of revelations that the agency had targeted for extra scrutiny.

, commissioner of the agency’s tax exempt and division, will retire on June 3, according to an IRS statement. Grant joined the IRS in August 2005 and became the deputy commissioner of the tax exempt division in 2007. He became the second senior IRS official in as many days to offer his resignation.

Grant had only be elevated to the position of commissioner of the division last week–two days before the agency confirmed the targeting of Tea Party groups and applying for .

Meanwhile, Obama announced that the controller of the of Management and Budget, Werfel, will move into the job of acting IRS commissioner next week, replacing Steven Miller.

“Throughout his career working in both Democratic and Republican administrations, Danny has proven an who serves with professionalism, integrity and skill,” Obama said in a statement. “The American people deserve to have the utmost confidence and trust in their government, and as we work to get to the bottom of what happened and restore confidence in the IRS, Danny has the experience and management ability necessary to lead the agency at this important time.”

Obama said on Wednesday that he’d accepted the resignation of Miller, saying the agency needed a change in leadership.

Werfel, 42, will start the job on Wednesday and has agreed to serve in the position through September.

Werfel, who is known around the White House as Danny, will lead the IRS efforts to restore its reputation that has taken a beaten since it was made public that the organization was targeting conservative groups.

He has served in a number of other positions at OMB, including deputy controller, chief of financial integrity and as a policy analyst. He also served during the George W. Bush administration as a member of the Federal Accounting and Standards Advisory Board.

Treasury Secretary Jack Lew, who has known Werfel for more than 15 years, said Werfel has the makeup to help the agency get through a difficult period.

“He is an immensely talented and dedicated public servant who has ably served presidents of both parties. Danny has a strong record of raising his hand for — and excelling at — tough management assignments,” Lew said in a statement.

Ex-British Prime Minister Margaret Thatcher dies at 87

 Ex British Prime Minister Margaret Thatcher dies at 87
Baroness Margaret Thatcher inside 10 Downing Street in London in 2010.(Photo: SUZANNE PLUNKETT AFP/)

(PhatzNewsRoom / BBC News) — Former Prime Minister Baroness Thatcher has died “peacefully” at the age of 87 after suffering a stroke while staying at the Ritz hotel in central London.

David Cameron called her a “great Briton” and the Queen spoke of her sadness at the death.

Lady Thatcher was from 1979 to 1990. She was the to hold the role.

She will not have a state funeral but will be accorded the same status as Princess Diana and the Queen Mother.

The ceremony, with full military honours, will take place at London’s St Paul’s Cathedral.

The union jack above Number 10 Downing Street has been lowered to half-mast while Parliament will be recalled from its Easter recess on Wednesday to enable MPs to pay tributes to the former prime minister.

tribute

After cancelling planned talks in Paris with French President Francois Hollande and returning to the UK, Mr Cameron made a statement outside No 10 in which he described Lady Thatcher as “the patriot prime minister” and said she had “taken a country that was on its knees and made it stand tall again”.

“Margaret Thatcher loved this country and served it with all she had. For that she has her well-earned place in history – and the enduring respect and gratitude of the British people,” he said.

“Start Quote

In an era in which politicians are all too often greeted with indifference, it is easy to forget that Britain was once led by a woman who inspired passion – both love and loathing.”

Nick Robinson Political editor

Lady Thatcher, who retired from public speaking in 2002, had suffered poor health for several years. She had been staying at the Ritz hotel since being discharged from hospital at the end of last year.

BBC political editor Nick Robinson said Lady Thatcher – whose husband Denis died in 2003 – had been a controversial politician who inspired “passion” among her critics and supporters.

Her government privatised several state-owned industries and was involved in a year-long stand-off with unions during the Miners’ Strike of 1984-5. She was also in power when the UK fought a war following Argentina’s invasion of the in 1982.

Lady Thatcher survived an assassination attempt in 1984, when the IRA bombed the Brighton Grand Hotel, where she was staying for the Conservative Party’s annual conference.

During her later years in office she became increasingly associated with Euroscepticism. She is also seen as one of the key movers behind the fall of communism in eastern Europe.

She stood down in 1990 after she failed to beat Michael Heseltine by enough votes to prevent his leadership challenge going into a second round.

LIFE OF MARGARET THATCHER

13 October 1925 – Born Margaret Hilda Roberts in Grantham, Lincolnshire
1951 – Married businessman Denis Thatcher
1959 – Becomes MP for Finchley
1970 – Made minister for education
1975 – Elected Conservative leader
1979 – Becomes UK’s first female prime minister
1982 – Falklands War
1983 – Elected prime minister for second time
1984 – Survives Grand Hotel bombing
1984-5 – Takes on unions in Miners’ Strike
1987 – Wins third term in Downing Street
1990 – Resigns as prime minister
1992 – Stands down as MP and accepts peerage
2002 – Retires from public speaking
8 April 2013 – Dies after suffering a stroke

World leaders and senior UK figures have been paying tribute to Lady Thatcher.

US President said the world had “lost one of the great champions of freedom and liberty” and that “America has lost a true friend”.

German Chancellor Angela Merkel said she would “never forget her part in surmounting the division of Europe and at the end of the Cold War”.

Ahead of his return to the UK, Mr Cameron told the BBC: “Margaret Thatcher succeeded against all the odds. The real thing is she didn’t just lead our country; she saved our country.

“I believe she will go down as the greatest British peacetime prime minister.”

A Buckingham Palace spokesman said: “The Queen was sad to hear the news of the death of Baroness Thatcher. Her Majesty will be sending a private message of sympathy to the family.”

Lady Thatcher was born Margaret Roberts, the daughter of a shopkeeper and Conservative councillor in Grantham, Lincolnshire, in 1925.

She studied chemistry at Oxford University and worked for a plastics company before marrying businessman Denis Thatcher in 1951.

She gave birth to twins Mark and Carol in 1953, the year she also qualified as a barrister, and served as MP for Finchley, , from 1959 to 1992.

Having been education secretary, she successfully challenged former prime minister Edward Heath for her party’s leadership in 1975 and won in 1979, 1983 and 1987.

Sir John Major, who replaced Lady Thatcher as prime minister in 1990, called her a “true force of nature”.

He added: “Her outstanding characteristics will always be remembered by those who worked closely with her: courage and determination in politics, and humanity and generosity of spirit in private.”

‘Unique’

Funeral route for Margaret Thatcher

Baroness Thatcher is to have a ceremonial funeral – a step short of a state funeral – with military honours to be held at St Paul’s Cathedral in London
The funeral parade will begin at Chapel of St Mary Undercroft at the Palace of Westminster
A hearse will take the body to the RAF Chapel at the church of St Clement Danes on the Strand
Baroness Thatcher’s coffin will be transferred to a gun carriage and drawn by the Kings Troop Royal Artillery to St Paul’s Cathedral
The route is to be lined by all three armed forces

Former Labour Prime Minister Tony Blair called her a “towering figure”, while his successor Gordon Brown praised her “determination and resilience”.

Labour leader Ed Miliband said Lady Thatcher had been a “unique figure” who “reshaped the politics of a whole generation”.

He added: “The Labour Party disagreed with much of what she did and she will always remain a controversial figure. But we can disagree and also greatly respect her political achievements and her personal strength.”

Deputy Prime Minister Nick Clegg described Lady Thatcher as one of the “defining figures in modern British politics”, adding: “She may have divided opinion during her time in politics but everyone will be united today in acknowledging the strength of her personality and the radicalism of her politics.”

Others to pay tribute included former chancellors Lord Howe and Lord Lawson, who resigned from her government following differences over economic policy, Europe and her leadership style. Lord Howe said the former prime minister was a “remarkable person” and a “very good” leader.

London Mayor Boris Johnson said Lady Thatcher’s memory would “live long after the world has forgotten the grey suits of today’s politics” while Scottish First Minister Alex Salmond described her as “a truly formidable prime minister whose policies defined a political generation”.
‘Party’ in Brixton, south London “Parties” are being held in Glasgow and in Brixton, south London, following Baroness Thatcher’s death

But Lady Thatcher’s economic policies and political style also came in for criticism.

Former Labour leader Neil Kinnock said income inequality had grown sharply during her time in office while Sinn Fein president Gerry Adams said she had “prolonged the war and caused great suffering” in Northern Ireland by the use of “draconian, militaristic policies”.

In a statement, The National Union of Mineworkers said Lady Thatcher had “set out to serve those whose interests were profit for the few” and this had led to the “decimation” of the coal industry.

And “parties” have been taking place in Glasgow and in Brixton, south London, to mark Baroness Thatcher’s death. BBC reporters said about 250 people are attending the event in Glasgow and 100 in Brixton.

Hear his ‘wetback’ comment

Alaska Rep. Don Young attempted to clarify his use of a derogatory term for immigrant workers.

 Hear his wetback comment  Hear his wetback comment  Hear his wetback comment  Hear his wetback comment  Hear his wetback comment

 Hear his wetback comment

Analysis: Justices not jumping on gay marriage bandwagon

 Analysis: Justices not jumping on gay marriage bandwagon
supporters demonstrate outside the Supreme Court on Wednesday.(Photo: Jewel Samad, AFP/)

Story Highlights

Over two days of arguments, high court seems split down the middle
Justices aren’t certain they should be deciding the issues at all
Only court’s liberals express outrage about state ban, federal law

(PhatzNewsRoom / ) — WASHINGTON — If the country is rushing headlong toward an endorsement of same-sex marriage, the Supreme Court apparently didn’t get the memo.

Over two days of on what has been described as the civil rights issue of the 21st century, the justices spent more time addressing mundane matters of states’ rights and judicial standing than threshold issues of equality and morality.

MORE: Justices attack both sides in Defense of Marriage case

TUESDAY: question gay marriage bans

The result still may be at least incremental progress for the , but it’s likely to come more with a whimper than a bang — and with substantial regrets about the way the two cases were presented, argued and decided.

The best guess at this point is that the court, controlled by , its , will leave California’s in the hands of that state’s courts, which already have struck it down. That would legalize gay marriage in the nation’s largest state — no small matter — but would not implicate similar bans in 37 other states.

And even on the federal Defense of Marriage Act, which offered a fatter target for the court because it denies financial and other benefits to legally married same-sex couples, the court fretted more over the government’s jurisdiction than matters of morality.

Even the progress on gay marriage evident in national polls, which now show majority approval overall and among young people, was used against the gay rights movement’s interests in the case. While opponents of the California ban and federal law cited discrimination, Chief Justice John Roberts noted “political figures are falling over themselves” to support gay marriage.

Several Republican lawmakers and centrist Democrats have announced over the past few days that they now support gay marriage, led by Ohio Sen. Rob Portman who was considered a top prospect to be ’s running mate on the GOP ticket last year.

Roberts clearly won’t be joining them, and that’s a loss for same-sex marriage proponents. The chief justice, who rescued President Obama’s health care law from extinction last June, poked holes in the government’s case against the law and even accused the president of lacking the courage to stop enforcing it himself. Justice Anthony Kennedy called the government’s position “very troubling.”

Several justices questioned whether the DOMA case belonged before them, a debate that was given only 10 minutes less time than the entire discussion of the merits. Roberts called it “unprecedented” to be considering a case in which the two sides — plaintiff Edith Windsor and the federal government — agreed on lower-court rulings. Justice Antonin Scalia fretted that more such cases would be forthcoming because the Obama administration won’t defend duly adopted laws of the nation.

It was left mostly to the three women on the court to sound any sense of moral outrage about the plight of legally married gay and lesbian couples in nine states and the District of Columbia where same-sex marriage is allowed.

Denied federal spousal benefits such as joint tax returns, marital deductions and Social Security survivor benefits, Justice Ruth Bader Ginsburg said, such couples “might well ask, what kind of marriage is this?”

Politico: President Obama in Israel – 5 takeaways

9bf9ecff560f56be3b2a1e07dc49a678 Politico: President Obama in Israel   5 takeaways

(PhatzNewsRoom / Politico) — AMMAN, Jordan — The White House insisted there would be no huge breakthroughs on President ’s to Israel as president — a promise Obama kept.

He made some progress in — not hard to do given how little Obama accomplished in the region during his first term. But building on those steps would require the kind of sustained involvement Obama seems hesitant to do.

Obama did seem to improve his standing significantly with the Israeli public and patch up his bruised relationship with Benjamin Netanyahu. That’s probably a for progress on , even if there’s nothing to show for it right away.

Here are POLITICO’s takeways from Obama’s visit to the region.

Bibi and Barack patch it up

For Obama and Netanyahu, it was definitely not love at first sight in 2009. But during the president’s three days in Israel, they finally seemed to build some rapport.

Netanyahu, who’s old enough that his first run as prime minister was when Bill Clinton was president in the 1990s, also leapt at every opportunity to pick up on Obama’s youthful . When Obama stripped off his and strode across the Tel Aviv airport tarmac in his shirtsleeves, proclaiming, “I’m a young man. I like to walk,” Netanyahu quickly stripped off his suit coat, as well. As photographers snapped away, the two men walked side by side with their jackets slung over their shoulders, looking vigorous and producing one of the iconic images of the trip.

Obama quickly struck a kind of buddy-buddy with Netanyahu, noting some colored markings on the pavement and quipping, “He’s always talking to me about red lines.”

By the time of a Thursday night, Obama and Netanyahu were leaning in to each other like old friends, chatting intensely. The president even used his hand to try to shield their words from prying cameras.

During their joint appearances, Netanyahu gushed over Obama, saluting his “great success mobilizing the international community” to sanction Iran over its nuclear program. The Israeli prime minister said he would “cherish” Obama’s remarks on the historical origins of the state of Israel and said there’s more between them now than most have come to expect.

“I think that people should get to know President Obama the way I’ve gotten to know him,” Netanyahu said, suggesting a kind of intimacy entirely at odds with the first four years of their relationship.

The White House’s decision to have Obama speak to the Israeli people from a convention center rather than at the Knesset and the public declaration that the speech was the centerpiece of the president’s trip initially seemed like a snub — a kind of end-run around Netanyahu. But the move also took some pressure off the leaders’ relationship. Obama did the same when he stressed publicly that he understood the complex nature of Israeli politics and Netanyahu’s new coalition, accepting that big breakthroughs on the peace process would require more than just a nod from the prime minister.

During Obama’s first couple of years in office, he pursued a strategy on Israeli-Palestinian peace that — intentionally or not — seemed to involve putting greater distance between the United States and the Jewish state. The initial approach sought to set the U.S. up as a kind of fair broker between Israel and the Palestinians by essentially prodding the Israelis to concede to Palestinians’ longtime demands that Israeli settlement activity in the West Bank cease before talks could resume.

It didn’t work and helped generate significant political blowback in the U.S. that dogged the president all the way through the 2012 election.

Obama’s second-term strategy became clear during the trip: express such unqualified, heartfelt love and affection for Israelis and the state of Israel that they trust him to have Israel’s back in future peace talks, then coax Palestinians back to the table despite the improbability that Israel will halt settlement construction outside the context of some kind of peace deal.

Going into the trip, Obama was going to make gestures of support for Zionism, like visiting the grave of the founder of modern Zionism, Theodor Herzl.

But Obama warmed the hearts of many Jews by paying tribute to the ideas of Zionism and Jews’ historic connection to the Holy Land within minutes of getting off the plane. Sure, he didn’t kiss the tarmac as some Jews do. But his statements were unequivocal and rejected Arab narratives about Jews and the Jewish state being interlopers or worse.

“I know that in stepping foot on this land, I walk with you on the historic homeland of the Jewish people,” the president declared just 20 seconds into his remarks at the Tel Aviv airport. “More than 3,000 years ago, the Jewish people lived here, tended the land here, prayed to God here.”

One of the downsides to Obama’s strategy is that in a part of the world where many take a zero-sum point of view, any step closer to the Israelis is a step away from the Palestinians. And the bear hug Obama seemed to give Israel left many Palestinians feeling they’d gotten the cold shoulder.

Obama’s itinerary fed that discomfort. While Israelis got a 50-minute speech to the nation and Obama’s presence at a state dinner, there were no such events for the Palestinians. He spoke for about 10 minutes at a press conference with Palestinian Authority President Mahmoud Abbas and then took a couple of questions.

Despite the lack of parity, Obama did say some things that could resonate with Palestinians. He compared the plight of their children to African-Americans in the United States under Jim Crow. And he criticized “settler violence against Palestinians [that] goes unpunished.”

But other aspects of Obama’s strategy remain murky. Obama seemed to publicly endorse a “borders and security ” first approach Secretary of State John Kerry has discussed publicly, urging the two parties to try to settle those questions before tackling trickier issues like Jerusalem, right of return for refugees and whether Palestinians will recognize Israel as a Jewish state. But a senior Obama administration official also dismissed “a lot of interim measures” as the way forward.

“What we want to do is get down to the fundamental issues here so the parties are dealing with questions that will resolve the conflicts, not simply open up a process of discussion,” said the official, who spoke on condition of anonymity.

Surprise substance: Obama defrosts Israel-Turkey ties

In advance of the trip, the White House signaled — almost boasted — that it didn’t expect any significant policy announcements during the visit. Yet a breakthrough came on an issue rarely mentioned in the U.S. press before this trip: Obama helped oversee a defrosting of the relationship between Israel and Turkey, the first majority Muslim country to recognize Israel and still one of the few to do so.

Relations between Ankara and Jerusalem went into a deep freeze in 2010 after an Israeli commando raid on a Turkish flotilla that claimed to be bringing aid to Gaza. The raid killed Turkish nationals and one American. Israel said their commandos came under attack from the self-styled peace activists.

Turkish officials demanded an apology and as recently as earlier this month, continued to sling hostile rhetoric at Israel. At a United Nations conference in Vienna, Turkish Prime Minister Recep Erdogan called Zionism a “crime against humanity,” a description that particularly rankles Jews in light of the Holocaust.

Netanyahu appears to have decided that Obama’s overtures or entreaties made it worth bending a bit. So on Friday, moments before the president took off from Israel for Jordan, Netanyahu and Obama went into a trailer at the Tel Aviv airport and made a call to Erdogan. With Obama standing by, the Israeli prime minister offered a kind of qualified apology, expressing regret for any loss of life caused by Israeli mistakes in the raid. Then the president jumped on the call and thanked the pair for getting things back on track.

“I discussed it with Prime Minister Netanyahu, and both of us agreed that the moment was right, and fortunately, they were able to begin the process of rebuilding normal relations between two very important countries in the region,” Obama said in a statement afterward.

Urgency of Iran raid decision dialed back

It could be simply that both Netanyahu and Obama were eager to paper over their differences about how best to resolve the grave concerns about Iran’s nuclear program, but the U.S. and Israeli stances seemed a little less in conflict during Obama’s visit to Israel.

While Netanyahu talked last fall about a need to act by spring — which just began — or by summer, he did not use that language this time around but instead spoke in vaguer terms. “Whatever time is left, there’s not a lot of time,” he said.

It’s unclear exactly why Netanyahu isn’t publicly suggesting action needs to be taken in the next few months, as he suggested would be the case in his speech at the United Nations last year. However, there are some indications that the Iranians might have encountered some difficulties in their program or might have chosen to slow it down somewhat for some reason.

So while it’s still the case that the U.S. and Israel differ about how soon action should be taken if Iran doesn’t abandon the program, the pressure to resolve those difference seems to have eased. That looks to have been enough to avoid a sharper exchange on this point during Obama’s visit.

Obama fears being drawn in on Syria

One of the three issues officially on the agenda for this trip was the crisis in Syria. The humanitarian aspect of the civil war there is disturbing enough, but the situation now threatens to destabilize other countries in the region, including Jordan.

King Abdullah II painted a frightening picture for Obama of the situation, with an estimated 460,000 Syrians having crossed the border to escape the fighting. The total could hit 1 million by the end of the year.

“This has added economic and financial costs due to the influx and has further strained the economy that is already under considerable external pressures with an unstable region,” Abdullah told reporters.

The U.S. has contributed aid to Jordan to help address the crisis and recently cleared the way to deliver more aid to Syrians in rebel-controlled areas. Obama said Friday that he will ask Congress to chip in another $200 million. But the administration has for more than a year rebuffed suggestions to send U.S. arms to the rebels despite former Secretary of State , former Defense Secretary Leon Panetta and Joint Chiefs Chairman Gen. Martin Dempsey pressing for such aid.

A former Obama aide said one of the president’s concerns about aiding the rebels is that it will lead to calls for direct U.S. military action.

“There are second- and third-order consequences to that sort of decision that are enormous,” former White House spokesman Tommy Vietor said on MSNBC last week. “We’re at the 10-year anniversary of the Iraq war. I think we need to remember … that 150,000 troops couldn’t stop a sectarian war.”

However, many former national security officials believe the U.S. should use military aid to hasten the fall of the Assad regime and to preserve U.S. influence with the future leaders of Syria.

”It’s shameful what we’re doing. We’re sitting on our hands,” said Steve Hadley, deputy national security adviser to President George W. Bush. “I know there’s a lot of nervousness those weapons could end up in the wrong hands. … If we keep doing what were doing, sitting on our hands, those weapons will end up in the wrong hands, because they will flow from other sources. … Every reason people gave for not arming has only gotten worse.”

Analysis: Obama faces skepticism from Democrats on budget deal

abc obama sequester 130301 wg Analysis: Obama faces skepticism from Democrats on budget deal

(Reuters) – President must work with a deeply skeptical partner as he tries to undo painful spending cuts and set U.S. finances on a more : the liberal wing of his own party.

While Republicans have dug in their heels against further tax increases, many of Obama’s have refused to consider cuts to popular health and that are projected to eat up a growing slice of the nation’s resources.

As a result, the lion’s share of deficit-reduction efforts so far – apart from tax increases – have come from cuts to military and domestic programs, including the $85 billion in reductions that went into effect last week. The nonpartisan projects that those “” cuts will eliminate 750,000 jobs.

Obama has said lawmakers in both parties will have to give ground to put an end to the budget wars that have slowed economic growth and dominated Washington for the past two years.

But many of his fellow Democrats already have ruled out the relatively modest changes the president has proposed to “entitlement” benefits such as the Social Security pension program and the Medicare health plan for the elderly.

“I am a supporter of the president, but me being a supporter of the president doesn’t mean I’m a servant of the president,” said U.S. Representative Keith Ellison of Minnesota, a leader of the party’s liberal wing in the House. “He and I don’t agree on this, and I’m going to fight him tooth and nail on it.”

Ellison and other liberals are not eager to compromise after last year’s election, in which Obama defeated , who called for further spending cuts and an overhaul of Medicare.

A majority of signed a letter last month telling Obama they would not support cuts to benefits as part of a deal to help tame the U.S. government’s debt, now more than $16 trillion. A majority of Senate Democrats signed a similar letter in December, rejecting cuts to Social Security.

Powerful labor unions and other outside liberal groups also are pushing Congress to leave benefits untouched.

That stance could complicate Obama’s efforts to build what he has called a “caucus of common sense” that could pair modest benefit cuts with reduced tax breaks for the wealthy to try to reduce the annual budget deficit and start to control the national debt.

Republicans have controlled the House since 2011, but they have needed Democrats’ support to pass budget deals.

‘DRIVING DEFICITS, CRUSHING INVESTMENTS’

Democrats’ reluctance to touch entitlement programs also means that their other priorities, from science to transportation programs, will bear the brunt of spending cuts.

According to the centrist Democratic think tank Third Way, job losses from last week’s “” cuts will fall heaviest on scientists, engineers and construction workers – the type of workers whose labor is particularly important to boosting U.S. productivity.

“There is no doubt that to solve our budget problems more revenue is needed, but we cannot ignore that entitlements are also driving deficits and crushing investments in the next generation,” Third Way policy adviser David Brown wrote in a report last week.

Social Security and Medicare are among the most popular services that the U.S. government provides.

As the automatic spending cuts loomed last month, the Pew Research Center found that only 10 percent of Americans would support scaling back Social Security and just 15 percent would back cuts to Medicare. By contrast, 48 percent said foreign aid should be cut.

But foreign aid and other programs that are funded annually by Congress are not the problem. Such “discretionary” spending is projected by the end of the decade to fall to its lowest level in 50 years as a share of the economy, because of spending caps put in place by a 2011 budget deal.

By contrast, Social Security, Medicare, and long-term care programs financed through Medicaid are projected to expand dramatically as the population ages in coming decades.

The Republican-controlled House twice has approved a budget plan that would try to rein in Medicare by offering participants a voucher to buy private coverage, but the measure failed to clear the Democrat-controlled Senate in 2011 and 2012.

The plan’s author, House Budget Committee Chairman Paul Ryan, is expected to unveil a new version on Wednesday aimed at achieving more dramatic savings.

Democrats, including Obama, have rejected Ryan’s approach on the grounds that it would force retirees to shoulder more of the their healthcare costs.

They argue that retirees on fixed incomes who depend on Social Security and Medicare should not be forced to bear the brunt of deficit reduction.

TOUCHING ENTITLEMENTS ‘A DEAL KILLER’

Obama has put other, more modest benefit cuts on the table.

Notably, he has proposed changing the way Social Security and other benefits are indexed to inflation to slow their growth over time, a concept known as “chained CPI” in Washington-speak.

The savings could be substantial: $340 billion over 10 years, according to the Congressional Budget Office.

Obama has floated a modified version to shield the neediest beneficiaries that would save $130 billion over 10 years, but many of his fellow Democrats say they cannot support it because it would cut too deeply into retiree payments over time.

“I’m going to read anything that’s sent over here, but it’s a deal killer for me,” said Ellison, the Democrat who co-chairs the House Progressive Caucus.

Obama also has proposed requiring wealthy retirees to pay more for their Medicare coverage, which would save about $35 billion over 10 years.

That may reflect the progressive notion that wealthier Americans should pay more for government services, but many liberal lawmakers and interest groups say it could undermine Medicare’s financial health and political popularity if it leads affluent retirees to abandon the program.

They also say it would snare too many middle-income retirees in coming years because it would not be indexed to inflation.

“What we’re really talking about … is getting more money from middle-class people by asking them to pay higher premiums, and that’s not progressive,” said Kelly Ross, deputy policy director at the AFL-CIO federation of labor unions.

Analysts say Obama will have a hard enough time persuading Republicans to agree to any tax increases after he won $600 billion in more revenue in January.

If Obama is going to do so, he’ll need to put entitlement cuts on the table, they say.

“It’s astonishing that more people haven’t pointed this out, that a balanced package would have to include something” on benefits, said Greg Valliere, an analyst with Potomac Research Group. “I think that’s the only way we could break the logjam.”

(Editing by David Lindsey and Lisa Shumaker)

‘Sequester’ kicks in, but no compromise in sight

 Sequester kicks in, but no compromise in sight
Neither side appeared close to compromise to end across-the-board spending cuts.(Photo: Alex Brandon, AP)

Story Highlights

Top White House official warns across-the-board reductions will slash 750,000 jobs
Republican leaders call cuts a “modest” step
Both sides pledge to avoid

(PhatzNewsRoom/ ) — WASHINGTON — President called Democratic and over the weekend, seeking a compromise to end the sweeping, across-the-board spending cuts now taking effect, the president’s top economic adviser said Sunday.

But neither side showed signs of relenting, as the latest Washington threatened for federal workers and cuts to government services coast-to-coast. The so-called kicked in Friday night and requires federal agencies to make $85 billion in spending cuts through the Sept. 30 end of the .

Gene Sperling, director of the White House Economic Council, did not release the lawmakers’ names, but said Obama spent Saturday afternoon on the phone calling senators of both parties “who he thinks could be part of a caucus of common sense to help move our country forward.”

Sperling’s remarks came on NBC’s Meet the Press, one of several TV appearances he made Sunday as the White House and top sought to deflect blame for the automatic spending cuts and sparred over how big a toll they could take on the U.S. economy. Some of the biggest impacts may be weeks away, in part, because many federal workers must have at least 30 days’ notice before they are sent home without pay.

“Nobody ever suggested that this harmful sequester was going to have all its impact in the first few days,” Sperling said. He argued the sequester would be a “slow grind,” eventually slashing 750,000 jobs if it is not repealed. “Our hope, is that as more Republicans start to see this pain in their own districts, that they will choose ,” he said.

Senate Minority Leader Mitch McConnell, R-Ky., however, said Republicans were determined to keep in place $1.2 trillion in cuts over a decade of which this year’s $85 billion is the first portion. He called the reductions imposed by the automatic, across-the-board cuts a “modest” step in solving Washington’s “spending addiction.” McConnell spoke on CNN’s State of the Union.

“I don’t know whether it’s going to hurt the economy or not,” House Speaker , R-Ohio, said on Meet the Press. “I don’t think anyone quite understands how the sequester is really going to work.”

Neither side appeared close to compromise to end the stalemate — the latest in the budget standoff between the White House and congressional Republicans that has dominated Washington for the past two years.

In the interview that aired Sunday, Boehner reiterated his opposition to including any new tax revenue in a deal to roll back the cuts. “The president got his tax hikes,” he said, pointing $620 billion in tax increases approved last year. “The issue here is spending.”

“The president got $650 billion of higher taxes on the American people,” Boehner said, referring to legislation that passed in January that imposed tax hikes on the wealthy as part of a 10-year deficit deal to avert the so-called fiscal cliff. “How much more does he want?”

Democrats, however, insist that additional tax revenue, such as closing what Obama calls “wasteful tax loopholes” must be considered as part of a more comprehensive agreement to address the nation’s soaring deficit.

Half of the across-the-board cuts hit the military. Over the weekend, U.S. Navy officials said they would begin planning furloughs for civilian employees and delays to maintenance contracts. The Navy also grounded planes, canceled the deployment of seven ships and cut short a drug-patrolling mission in the waters off Central America.

The next fiscal deadline looming over Washington may provide a narrow opportunity for compromise. March 27 marks the expiration of temporary legislation that funds federal agencies. The White House and Republican leaders in Congress have pledged that their larger fight over the sequester will not derail passage of another spending measure needed to keep the government running through Sept. 30.

Boehner said the House this week would take up the measure to keep the government open, and McConnell predicted it would get bipartisan support in both chambers. Sperling said the White House still will try to reach a compromise to undo the across-the-board cuts, but said Obama wants to avoid another fiscal showdown over the routine spending bill. “The president doesn’t believe in manufacturing another crisis,” he said.

Contributing: David Jackson

Politics: Republicans stall Hagel nomination

3382fdd15895f4b491d0813e3dd88b95 Politics: Republicans stall Hagel nomination

(CNN) – The Senate failed to garner enough votes Thursday to stop a filibuster against Defense Secretary nominee .

Fifty-eight voted to move forward with the nomination, while 40 voted to hold it up. One senator, Republican Sen. , announced present, and Republican Sen. David Vitter missed the vote.

Democrats needed 60 votes to end a filibuster, but the move failed due to GOP opposition surrounding questions about Hagel’s finances, as well as remaining tension between some and the White House over the terror attack in Benghazi, Libya.

The chamber largely voted along party lines, with the exception of four Republicans who voted with Democrats.

Republicans, however, signaled they’re willing to allow the nomination to proceed after recess, when only a simple majority of 51 votes are required to stop a filibuster. The Senate is not in session next week.

’s office announced the Senate will take up another vote to move forward on Hagel on Tuesday, February 26.

Filibusters of cabinet officials are extremely rare, largely because senators typically believe a president has a right to pick the leaders of his government.

“I regret that Republican senators, except the valiant four, chose to filibuster the nomination,” said on the . “Republicans have made an unfortunate choice to ratchet up the level of destruction here in Washington. Just when you thought things couldn’t get worse, it gets worse.”

The White House sent a letter to Capitol Hill Thursday stating that former Secretary of State called Libyan President Mohammed Magariaf the same night as the attack. President , according to the letter, did not speak to the Libyan president until the evening of the day following the violence.

Read the letter obtained from a Democratic official here.

Before committing to vote on Hagel’s nomination, three GOP senators–Sens. Lindsey Graham, and Kelly Ayotte–had demanded answers about the attack in a letter Tuesday to the Obama administration. Graham publicly stated that he was specifically asking whether Obama called Libyan officials on the night of the attack against the consulate in Benghazi, which left four Americans dead.

The administration had been wary of responding-saying the GOP was simply moving goal posts-but the response was a sign they were losing patience and getting nervous about the Hagel nomination.

Showing further scramble on the part of the White House to keep Hagel afloat in the confirmation process, Vice President Joe Biden made calls Thursday to Republican senators about the nominee, according to a senior Democratic source.

Hagel has been battling his way through a rocky nomination process. Democrats were at one point confident they had the 60 votes, including five Republicans, needed to stop a GOP filibuster, but concerns suddenly escalated Wednesday when McCain said he was reconsidering his previous commitment to vote against a filibuster.

McCain, R-Arizona, said Thursday evening on Fox News that Republicans approach to the Hagel vote was colored by past experiences.

“To be honest with you … it goes back to [that] there’s a lot of ill will towards Senator Hagel because when he was a Republican, he attacked President Bush mercilessly and [said] he was the worst president since Herbert Hoover and said the surge was the worst blunder since the Vietnam War, which was nonsense,” McCain said. “He was anti-his own party and people. People don’t forget that.”

McCain now says he’s satisfied with the answers the White House provided to questions about Benghazi and that he is in negotiations to get answers about Hagel’s finances. Sen. Ted Cruz, R-Texas, and other GOP senators want to know the source of Hagel’s income in the years after he left the Senate.

“I think it was an adequate response, yes,” McCain said about the Benghazi matter. “We are working on and having negotiations now trying to smooth this thing out and get it done.”

But he later said on the Senate floor that will vote “no” to ending the filibuster on Thursday. He will, however, vote “yes” after recess.

“That is sufficient time to get any additional questions answered and I will vote in favor of cloture on the day we get back and I believe that my colleagues, enough of my colleagues will do the same,” he said. A cloture vote would allow the nomination to proceed.

Graham, R-South Carolina, agreed and also told reporters he would vote for cloture after recess unless some huge “bombshell” comes out over the next week. His comments signaled that the votes will be there for Hagel when the Senate resumes session the week after next.

Multiple Republican senators told CNN earlier Thursday that they also planned to vote against ending a filibuster, saying the vote is too rushed with outstanding questions. When they hold a filibuster vote after the chamber gets back from recess, then they will allow the nomination to go through and the Senate can hold an up-or-down vote on Hagel.

Democrats, on the other hand, see this as a time to make it seem like Republicans are opposing Hagel for political reasons and holding the filibuster vote Thursday, as opposed to after recess, would further illustrate that objective.

Republican Sen. Lisa Murkowski of Alaska, one of the few lawmakers to go against her own party on the vote, said she voted for cloture because “I said I was not going to support a filibuster, and I stuck by my word.” Murkowski was one of the senators who spoke with Biden on Thursday.

Susan Collins of Maine, another Republican senator who voted yes, said she thinks the president should be able to choose his own cabinet. But she plans to vote no on Hagel when it comes to an up-or-down vote.

Reid took to the Senate floor on Thursday morning, building pressure on Republicans to back off of their threats. He added that the letter sent from the White House answers “all their questions.”

“This isn’t a high school getting ready for a football game or some play that’s being produced at the high school,” he also said. “This is, we’re trying to confirm somebody to run the defenses of our country, the military of our country.”

Outgoing Defense Secretary Leon Panetta says he will remain in his position until a defense nominee is “sworn into office,” a senior Pentagon official said Thursday.

Administration officials and Congressional Democrats said they were on the phone late into the night Wednesday discussing how to get Republican votes. The sources said the administration had been told they did not have enough GOP votes to gain the necessary 60 to stop a filibuster.

Meanwhile, some questioned whether Hagel would withdraw his nomination. But one senior administration official said that idea is “insane.”

Referring to the GOP, the official said, “No one knows what they really want. There is nothing real to be had.”

“They wanted testimony from (former Secretary of State) Hillary Rodham Clinton and Leon Panetta and they got it…there is nothing real to be had,” the official continued.

Hagel’s brother Tom, a law professor who’s in constant contact with his brother, also said Hagel will not withdraw his name.

“Knowing him, not only will he not withdraw, but he will be motivated to fight harder,” he said.

Asked Wednesday in a press conference whether the GOP was moving goal posts on the issue, Graham gave a firm “no.”

“I’m gonna hit you, and keep hitting you,” he vowed. “Absolutely. You’re not going to get away without answering the basic questions. Did you make a phone call on September 11th to any Libyan government official using the weight and the voice of the president of the United States to help these people in their time of great need.”

Speaking aboard Air Force One, however, White House Deputy Press Secretary Josh Earnest stressed earlier Thursday a sense of urgency in filling the new defense secretary position.

“It is difficult to explain to our allies why exactly that is happening. It also sends a signal to our men and women in uniform who are currently deployed around the world and who are currently serving in the frontlines of Afghanistan and are taking fire today,” he told reporters. “They need a new secretary of defense. So we urge Republicans in the Senate to drop their delay.”

53 senators urge approval of Keystone XL pipeline

 53 senators urge approval of Keystone XL pipeline
(Photo: Jacquelyn Martin, AP)

Story Highlights

Half the Senate is urging quick approval of the XL
Senators said the pipeline should be part of ’s
The Obama administration has twice thwarted the 1,700-mile pipeline

WASHINGTON (AP) — More than half the Senate on Wednesday urged quick approval of the Keystone XL oil pipeline, ramping up pressure on President Obama to move ahead with the project just days after he promised in his inaugural address to respond vigorously to the threat of .

A letter signed by 53 senators said Nebraska Gov. Dave Heineman’s approval of a revised route through his state puts the long-delayed project squarely in the president’s hands.

“We urge you to choose jobs, economic development and American ,” the letter said, adding that the pipeline “has gone through the most exhaustive environmental scrutiny of any pipeline” in U.S. history. The $7 billion project would carry oil from Canada to refineries along the Texas Gulf Coast.

“There is no reason to deny or further delay this long-studied project,” said the letter, which was initiated by Sens. , R-N.D., and , D-Mont., and signed by 44 Republicans and nine Democrats. Another Democrat, Jon Tester of Montana, supports the pipeline but did not sign the letter.

At a news conference Wednesday, senators said the pipeline should be a key part of Obama’s “all of the above” energy policy, in which he has expressed support for a range of energy sources from oil and natural gas to wind, solar and coal.

The Obama administration has twice thwarted the 1,700-mile pipeline, which Calgary-based TransCanada first proposed in late 2008. The State Department delayed the project in late 2011 after environmental groups and others raised concerns about a proposed route through environmentally sensitive land in Nebraska.

Under pressure from congressional Republicans to make a decision on the pipeline, President blocked it in January 2012, saying his concerns about the Nebraska route had not been resolved. TransCanada submitted a new application last spring.

The State Department said Tuesday it does not expect to complete a review of the project before the end of March. The State Department has jurisdiction over the pipeline because it crosses a U.S. border.

The renewed focus on the pipeline comes as Obama pledged during his inaugural address to respond to the threat of global warming. Environmental groups and some Democratic lawmakers argue that approving the pipeline would directly contradict that promise.

“If we are going to get serious about climate change, opening the spigot to a pipeline that will export up to 830,000 barrels of the dirtiest oil on the planet to foreign markets stands as a bad idea,” said Anthony Swift of the Natural Resources Defense Council.

The pipeline would carry heavy oil derived from tar sands in western Canada. The heat-intensive process uses more energy than traditional oil, producing more heat-trapping gases that contribute to global warming.

Environmental groups have been pressuring Obama to reject the pipeline, citing the oil’s high “carbon footprint.” They also worry about a possible spill.

At a news conference Wednesday, senators from both parties said the Nebraska decision leaves Obama with no other choice but to approve the pipeline, which would carry up to 800,000 barrels of oil a day from tar sands in western Canada to refineries in Houston and other Texas ports. The pipeline also would travel though Montana, South Dakota, Nebraska, Kansas and Oklahoma.

“No more excuses. It’s time to put people to work,” Baucus said.

“Back home, we call this a no-brainer,” added Sen. Joe Manchin, D-W.Va.

Hoeven, of North Dakota, said the tar sands oil will be produced whether or not the U.S. approves the project. “Our choice is, the oil comes to us or it’s going to China,” he said.

Nebraska’s approval of the pipeline means all six states along the proposed route now support the project, said House Speaker , R-Ohio. Majorities in the House and Senate also have endorsed the pipeline. repeatedly show a majority of Americans back the project.

Boehner said he recognizes the political pressure Obama faces from environmental groups and other opponents, but said “with our energy security at stake and many jobs in limbo, he should find a way to say yes.”

White House spokesman Jay Carney said Tuesday that the State Department was reviewing the project and he did not want to “get ahead of that process.”

Once that review is completed, “we’ll obviously address that issue,” Carney said.

Meanwhile, Secretary of State nominee John Kerry said he plans to divest holdings in dozens of companies in his family’s vast financial portfolio to avoid conflicts of interest if he is confirmed by the Senate.

Kerry, a Massachusetts Democrat, said he would not take part in any decisions that could affect the companies he has holdings in until those investments are sold off. Among the investments are holdings in two Canadian companies, Suncor and Cenovus Energy Inc., both of which have publicly supported the Keystone XL pipeline. Kerry’s investments are in family trusts.

___

Associated Press writer Stephen Braun contributed to this report.

Follow Matthew Daly on Twitter: https://twitter.com/MatthewDalyWDC

Politics: House Republicans back off from fiscal clash with Obama

d3826b5b47033388ac9c7c3b225022d5 Politics: House Republicans back off from fiscal clash with Obama

(Reuters) – Republicans in the House of Representatives backed away on Friday from a fiscal clash with President Barack next month that could have risked a government default and chaos in financial markets, shifting to a new, less .

Top , meeting in Williamsburg, Virginia, said they were prepared to allow the U.S. government to borrow enough money to keep it fully operating for the next three months without demanding immediate spending cuts from Obama.

Instead, the Republicans, who control the House, will require as part of the legislation raising the that the Democratic-led Senate pass a by April 15.

If the Senate fails to act, they said, would not get paid. How that might work in practice, in light of existing and constitutional restrictions on changing congressional salaries in the middle of a term, was unclear. House Republicans hope to pass the legislation next week.

Republican leaders, including House Speaker John Boehner and Majority Leader Eric Cantor, made the announcement after an annual retreat at a resort in Williamsburg, where members listened to pollsters describe the party’s decline in standing among American voters.

It followed a humiliating defeat in the “fiscal cliff” battle that ended on New Year’s Day with Obama getting tax increases he sought on the wealthy without committing to significant budget cuts Republicans were seeking in return.

World equity and oil prices rebounded after the statement by the Republican leaders.

STRATEGIC SHIFT

The announcement marked a major climbdown for Republicans, who have seen the debt ceiling as their strongest point of leverage in Washington’s partisan spending wars, despite the consternation it caused the White House, and public opinion.

The White House on Friday welcomed the three-month extension plan as long as it was not conditioned on spending cuts. Obama has argued that negotiations on spending cuts should be part of larger deficit reduction talks, and not be tied to the debt ceiling.

“We are encouraged that there are signs that may back off their insistence on holding our economy hostage to extract drastic cuts in Medicare, education and programs middle class families depend on,” White House spokesman Jay Carney said in a statement.

Adam Jentleson, a spokesman for Reid, also said the Republican approach was reassuring.

“If the House can pass a clean debt ceiling increase to avoid default and allow the United States to meet its existing obligations, we will be happy to consider it,” he said in a statement.

A spokesman for House Democratic leader Nancy Pelosi was less receptive. “This proposal does not relieve the uncertainty faced by small businesses, the markets and the middle class. This is a gimmick unworthy of the challenges we face and the national debate,” Drew Hammill said.

The details on the new Republican approach appeared less pressing to party leaders than defusing the politically and economically explosive debt ceiling battle that was expected in late February and early March.

The Treasury needs congressional authorization to raise the current $16.4 trillion U.S. debt limit sometime between mid-February and early March. How long a debt ceiling lasts – a few months or a few years – depends on the amount of borrowing authorized.

Republicans had promised to use the occasion to demand deep spending cuts from Obama and his Democrats, and some had said they were willing to push the government to the brink of default if their demands were not met.

That sort of rhetoric all but vanished on Friday.

“Next week, we will authorize a three month temporary debt limit increase to give the Senate and House time to pass a budget,” Cantor said in a statement.

“Furthermore, if the Senate or House fails to pass a budget in that time, Members of Congress will not be paid by the American people for failing to do their job. No budget, no pay.”

The statement made no mention of the 27th Amendment to the U.S. Constitution, which says that no law “varying the compensation” of members of Congress shall take effect until after an intervening congressional election.

The plan aims to draw the Senate into action to shrink deficits. The Senate has failed to pass a formal budget resolution in nearly four years, and it has taken no action on House-passed Republican budgets.

Mitch McConnell of Kentucky, the Senate’s Republican minority leader, said in a statement he welcomed the pressure on his Democratic counterparts who had “prevented this body from performing its most basic of duties: passing a federal budget.”

RETREAT REFLECTION

A key theme to emerge at the Williamsburg conference was a willingness to pursue more incremental steps on deficit reduction. Rather than one massive deal, each fiscal deadline would represent an opportunity to find savings.

After the deadline for a debt ceiling increase, Congress faces a March 1 deadline to avert automatic spending cuts, and the March 27 expiration of funding for government agencies and programs. A three-month debt limit extension would add a further deadline in April or May.

Representative Mick Mulvaney of South Carolina, one of the House’s most conservative budget hawks, said he had concluded that smaller steps were the best path forward in dealing with the immediate fiscal crisis.

Instead of passing regular budgets to try to reduce spending, Congress has relied largely on stop-gap spending measures, known as continuing resolutions, to keep the government running.

Senate leaders have said there was no need to pass a budget for the past two fiscal years because the last major budget deal in 2011 set spending levels that were more legally enforceable.

A House Republican leadership aide said it was not anticipated the three-month debt limit legislation would include spending cuts.

Although Boehner previously sought at least $1 in long-term spending cuts for every dollar of debt limit increase, the aide said the reforms associated with requiring budgets from both chambers would meet the speaker’s requirements.

(Editing by Fred Barbash and Peter Cooney)