Key Healthcare Provisions Take Effect January 1, 2011

Key healthcare provisions take effect Jan. 1, just as GOP moves into House
By Jason Millman - 12/28/10

http://www.whitehouse.gov/healthreform

Key parts of the new healthcare law will go into effect on Jan. 1, 2011, just before a Republican-controlled House returns to Washington.

The massive overhaul of healthcare approved by Congress earlier this year will begin to take effect in 2011, though some of the biggest changes prompted by the law — including the mandate that everyone buy insurance, the state insurance exchanges and subsidies to help most Americans buy insurance — don't kick in until 2014. Still, more than 20 provisions of the reform law go into effect in 2011, according to a Kaiser Family Foundation timeline. Republicans taking over the House have vowed to repeal the healthcare law, though that will be difficult with President Obama still in the White House for at least two more years. Democrats also still hold a slim majority in the Senate. As a result, Republicans under Speaker-designate John Boehner (Ohio) are expected to try to withhold funding for the new law, which could impede its implementations. Democrats, however, will fight any efforts at defunding the law aggressively. Democrats frontloaded the law with a number of consumer-protection related provisions that they expect will boost support for the overhaul. Among the changes taking effect next year are provisions that could prove popular, including a requirement for healthcare plans that spend less than 80 percent of premiums on healthcare services to provide rebates to customers. The so-called "donut hole" would also be narrowed, with Medicare beneficiaries receiving a discount on brand-name prescriptions. Democrats have touted the healthcare law as the crowning achievement of the two years they were in charge of both Congress and the White House. In a note to supporters on Tuesday, Vice President Joe Biden said 32 million people would have health insurance because of the law. But the new law has been far from overwhelmingly popular. Polls show voters have mixed feelings at best, and Republicans running against healthcare won a huge victory in the midterm elections, crushing Democrats at the polls.

Here's a complete list of the changes that will go into effect Jan. 1, 2011 :

Medical-loss ratio requirements: Healthcare plans must provide rebates to customers if they spend less than 80 percent of premiums on health care (85 percent for the large-group market). However, a number of plans have been exempted from the requirements. Healthcare plans must begin calculating the ratios next year, with rebates starting in 2012. Also in 2011, so-called "mini med" plans will be required to collect and share data so federal regulators can decide how to apply the medical-loss ratio to the low-value plans going forward.

Closing the donut hole: Medicare beneficiaries will receive a 50 percent discount on brand-name prescriptions, as the government works to close the Medicare Part D "donut" hole. The discount applies to drugs whose manufacturers have signed agreements with the Centers for Medicare and Medicaid Services; those who don't won't see their drugs covered by Part D. The "donut hole" refers to a gap in Medicare prescription drug coverage included in the 2003 law that created the program. Below a certain threshold ($2,830 in 2010), Medicare pays 75 percent of drug costs. And for beneficiaries who reach a catastrophic level of spending on drugs ($6,440), Medicare pays for 95 percent of the costs above that threshold. Beneficiaries whose spending falls between those two thresholds — the so-called donut hole — until now had to pay 100 percent of costs in the gap. The new reform law progressively closes the gap, first with $250 rebate checks starting in 2010 and then with a 50 percent discount on brand-name drugs starting next year. By 2020, beneficiaries will get a 75 percent discount, thus completely closing the donut hole.

Primary care bonus: Doctors will get a 10 percent Medicare bonus for primary care services, while general surgeons in health professional shortage areas will also get a 10 percent bump. The temporary bump lasts through Dec. 31, 2015.

Medicare prevention benefits: Cost-sharing for Medicare-covered preventive services earning an "A" or "B" grade from the U.S. Preventive Services Task Force will be eliminated. Medicare deductibles for colorectal cancer screening tests will also be waived, and Medicare coverage will be authorized for a personalized prevention plan.

CLASS Act: A national, voluntary program will allow employees to purchase long-term care insurance. Enrollees who become disabled will be able to get payments to help them in their daily lives after they pay into the program for five years.

Premium threshold freeze: The income threshold for income-related Part B premiums will be frozen at 2010 levels for 2011 through 2019. The Part D premium subsidy will be reduced for individuals earning more than $85,000 and couples earning above $170,000.

Medicare Advantage changes: Payment rates to private Medicare Advantage plans will be gradually reduced in comparison to Medicare fee-for-service (FFS) rates. Payments will be frozen at 2010 levels, and plans cannot impose higher cost-sharing requirements for some benefits than required under the FFS program.

Health home payments: States can allow Medicaid enrollees to designate a home healthcare service as their provider, and states can receive 90 percent federal matching payments for two years for home health-related care.

Chronic disease prevention: States can receive three-year grants to develop comprehensive health lifestyle programs for Medicaid enrollees.

Tax-free spending accounts: Costs for over-the-counter drugs not prescribed by a doctor will not be reimbursed through a health reimbursement account or flexible spending account. They also may not be reimbursed on a tax-free basis through a health savings account or Archer medical savings account.

Quality strategy: The Department of Health and Human Services must report to Congress a strategy to improve healthcare service delivery, patient health outcomes and population health. The plan must be updated each year.

Supreme Court ~ Now Belongs to Large Corporations !

"Person" of the Year: The U.S. Supreme Court
Bob Burnett.Berkeley writer, retired Silicon Valley executive
Posted: December 31, 2010

It's difficult to look beyond the tumult of current events and ask, "what happened this year that will be remembered ten, twenty, or fifty years from now?" However, there was one 2010 event that, in terms of its long-term impact, loomed above the others, the Citizens United v. FEC Supreme Court Decision.

Writing in the New York Review, law professor Ronald Dworkin explained Citizens United v. FEC: "In the 2008 presidential primary season a small corporation, Citizens United, financed to a minor extent by corporate contributions, tried to broadcast a derogatory movie about Hillary Clinton. The FEC declared the broadcast illegal under the BCRA [Bipartisan Campaign Reform Act]. Citizens United then asked the Supreme Court to declare it exempt from that statute on the ground, among others, that it proposed to broadcast its movie only on a pay-per-view channel." In an extraordinary example of judicial activism, the Supreme Court conservative majority, led by Chief Justice John Roberts, declared the entire BCRA act unconstitutional. The Supreme Court hadn't been the story of the year since the December 12, 2000, Bush v. Gore decision. This paved the way for Bush's installation as president and his nomination of John Roberts as Chief Justice in September of 2005. Many Supreme Court observers regard Roberts as the judicial equivalent of the "Manchurian Candidate." New Yorker legal analyst Jeffrey Toobin noted Roberts' dogmatic conservatism: "In every major case since he became the nation's seventeenth Chief Justice, Roberts [and his conservative allies] has sided with the prosecution over the defendant, the state over the condemned, the executive branch over the legislative, and the corporate defendant over the individual plaintiff." John Roberts had worked as an attorney for both the Ronald Reagan and George H. W. Bush administrations and, therefore, possible conservative "judicial activism" was a concern of the Democratic Senators who questioned him before confirmation. Roberts denied that he was an activist and appeared to honor the legal tradition of stare decisis, abiding by precedent. Five years later, it's apparent that Roberts hid his true philosophy. In the Citizens United decision Roberts aggressively advanced the conservative agenda along three fronts. First, the decision to hear this case was an extraordinary example of judicial activism. Professor Dworkin observed, Citizens United "did not challenge the constitutionality of [BCRA]. But the five conservative justices -- Chief Justice Roberts and Justices Samuel Alito, Anthony Kennedy, Antonin Scalia, and Clarence Thomas -- decided on their own initiative, after a rehearing they themselves called for, that they wanted to declare the act unconstitutional anyway." [Emphasis added] Justice Kennedy, who wrote the majority opinion, explained that the conservative justices called for the rehearing because they had dissented on the most pertinent precedent, McConnell v. FEC, and had continued to complain about it. Second, the Citizens United decision strengthened the conservative contention that corporations have "personhood" and, therefore, enjoy the same rights as ordinary individuals, including the right of free speech. (For a compelling account of how the bizarre notion that corporations enjoy the same constitutional rights as human beings has evolved, see radio host Thom Hartmann's book, Unequal Protection.) Third, the Citizens United decision allowed corporations to spend unlimited funds in political contests. It was this aspect that caused President Obama to observe, during his January 27, 2010, State of the Union Address, "The Supreme Court reversed a century of law that I believe will open the floodgates for special interests -- including foreign corporations - -to spend without limit in our elections." The decision granted corporations more rights than those of human beings. The 2010 midterm elections demonstrated the lethality of the Citizens United decision. The non-partisan group, Opensecrets.org calculated that, excluding Party Committees, $294 million was spent by outside groups. Conservative outside groups spent twice as much as did Liberal groups. For example, the US Chamber of Commerce, a conservative-leaning outside group, spent $32.8 million, more than the combined total of the two leading Liberal groups: the SEIU ($15.7 million) and the AFSCME ($12.6). (The McClatchey Newspapers reported that the US Chamber, which has foreign corporations as members, expected to spend more than $75 million in all forms of political support.) Massive spending by outside groups influenced the outcome of the midterm election. In the Pennsylvania Senate race, outside spending was more than $12 million: $5.9 million was spent on ads attacking the Democratic Candidate (Joe Sestak), whereas only $1.9 was spent attacking the Republican (Pat Toomey); Sestak lost. In Illinois, $6.2 million was spent attacking the Democratic candidate (Alex Giannoulias), whereas only $1.5 million was spent attacking the Republican (Mark Kirk); Giannoulias lost. There are many similar examples, including outgoing New York Democratic Congressman John Hall who attributed his defeat to the decision. We've entered a new phase of American history, the Corporatist period where multinational corporations have unbridled political influence. This movement started before the Citizens United decision, but the Roberts' Supreme Court has accelerated the pace and thereby profoundly weakened our democracy.

Retired Rubber Workers Lose Again ! It`s The VEBA !

Is There No End to it ? Retired and Losing Everyday !

It`s The VEBA !

By: Underdog = Don Jones...12/29/10

http://www.uswlocal878.com/

Healthcare, The Retiree`s biggest cost ! Losing Every Year !

One day last week, I was informed that my dental benefits would be changing. I would lose half of my benefit. Remember those working in the plants pay for dental coverage out of their Cost of Living Raise`s (COLA), not Goodyear ! I`m not sure that those Union Members working owe me my dental program ? However, I`m so very grateful to them. They care more about me than Goodyear or the Steelworkers ! Goodyear merely administers the dental program.This week, Goodyear notified me that my pension would be lowered another $50.00, that is now a total of $125.00 a month for my Health Insurance. You say, that is cheap, you are correct, except that the Volunteer Employee Benefits Association (VEBA) Steelworkers take it right out of my pension ! I blogged the VEBA, when it was negotiated, I told you that if the VEBA was not properly funded, it would go broke. Little did I know, that they would fund it out of the retired employees pensions ! Understand, it is still a bargain at $125.00 per month. The problem is, it is taken out of our retirement pension. I don`t know about you, but if the VEBA is still with us, in a couple of more years, I will owe them money, as my pension will not cover my VEBA premium ! If you are not on medicare and retired, lookout, it is going to cost you more ! I do not know, how much ? If this does`nt sound correct to you, you can call the United Steelworkers Union Hall in Union City Tennessee at (731)885-6641. Ask for David Nelson or Jerry Ivey, our pension and insurance representatives ! If this sounds like sour grapes from this writer, it is !

I don`t mind telling you that my pension is now a whopping $209.94 per month !

Sad, but true ! I don`t know about you, but I thought I earned this pension while I worked ? Another thing, I did`nt authorize the Steelworkers VEBA to have access to my pension, I did`nt think ? They are kinda like our President`s on Social Security, they get ready and just reach in and grab a hand full. I will try to write more, when I learn more ! Sorry, about the bad news ! maybe it is time for the Retiree`s (SOAR) to act on our own ? If you know, what I`m saying ? Hey Leo Gerard, are you reading ? Hey Stan Johnson, are you reading ?

Titan Tire ~ Des Moines~Return to Work !

Shutdown Ends, Workers Return

Members of a local United Steelworkers Union have approved a two-year contract with Titan Tire, ending a one-week shutdown at the Des Moines plant.
Reporter: Associated Press

The Des Moines Register says the 500 members of Local 164 approved the deal on Thursday. Local union chief Mike Mathis says the vote was by a majority, and workers will return to work Sunday night. The shutdown began when management locked the doors at the plant on Dec. 17 after contract talks failed. Morry Taylor, chief executive of Titan Tire, said he was pleased with the vote.
The new contract freezes wages at $22 per hour and requires a greater workers contribution to the company's insurance coverage. The Des Moines plant makes tires for agricultural equipment. It has about 800 workers.

Editorial : They Approved the contact ! I hope you understand, they made concessions to Titan. They lost ! Welcome to the third world. Thanks to Mike Stanley for this.

Pulmonary Hypertension ~Protein May Provide Early Detection and Reversal Treatment for PH

Protein May Provide Early Detection and Reversal Treatment for Pulmonary Hypertension
By Mary Kyle December 6, 2010

http://www.phassociation.org/

Researchers believe that earlier diagnosis for pulmonary hypertension could be achieved by a simple blood test that checks the levels of PIM-1.

In addition to early diagnosis, researchers believe that they’ve unlocked the key to completely reversing pulmonary hypertension. Researchers found that they were able to completely reserve pulmonary hypertension by blocking the PIM-1 protein in patients. This finding is significant because it’s the first time that a therapy has been discovered which has the potential to completely reverse the condition. Dr. Bonnet, one of the study authors, called the finding......“remarkable.”

Sources:
Heart and Stroke Foundation of Canada (2010, October 25). Gene therapy can reverse pulmonary hypertension, study suggests. ScienceDaily. Retrieved December 5, 2010, from

http://www.sciencedaily.com¬/releases/2010/10/101024122345.htm

Pulmonary Hypertension, The Mayo Clinic, 09 Feb 2010, http://www.mayoclinic.com/health/pulmonary-hypertension/DS00430

Editorial : Dr. Anna Hemnes (upper left)Vanderbilt University, Nashville TN. Dr. Ivan Robbins (upper right) Vanderbilt University, two of Vanderbilt's top PH physicians. My Dr.`s !

MERRY CHRISTMAS...2011...My Prayer at Christmas

Merry Christmas...
By : Don Jones...12/24/11

It`s Christmas Eve...I offer to God and You my Christmas Prayer !

(1.) I pray for wellness for my family and friends !

(2.) I pray for decent good paying/union jobs for all Americans.

(3.) I pray for Universal Health-Care for everyone.( I dream of new medical breakthroughs) Cancer and Stem-Cell Cures for the betterment of all mankind.

(4.) I pray for more tolerance of belief`s/religion other than my own.

(5.) I pray for the "Gift of Life" for all those waiting on Organ Transplants.

(6.) I pray for the Free-Democratic Labor Unions to return with the strength and fervency we had at one time.

(7.) I pray for a better quality of life for me !

(8.) I pray for politicians to become more involved in their constituents wish`s.

(9.) I pray for greed, racial discrimination,and religious difference to end. A new corporate beginning in human rights. To become a new way of thinking and loving.

(10.) I pray for the Afghanistan war to END.

(11.) I pray for a cure to be found for Pulmonary Hypertension.

(12.) I pray for every man to find his life long, loving wife, as I have !

I`m sure if you make your own Christmas Wish/prayer List, it will differ from mine, and that's fine. I understand. I hope you understand mine !

"Merry Christmas to ALL and to ALL Goodnight" !

"God Bless Everyone" !

Titan Tire USW Reject Contract Offer !

Titan Tire union rejects pact but will resume work Sunday.Titan Tire employees enter Freeport's Masonic Temple for a meeting Monday, Dec. 20, 2010, about contract talks between the United Steelworkers Union and Titan Tire.

by:By Eric Petermann
THE (FREEPORT) JOURNAL-STANDARD

FREEPORT — Local members of the United Steelworkers Union employed at Titan Tire rejected the company’s contract offer Thursday, but its membership will return to work Sunday night. Morry Taylor, chairman and CEO of Titan Tire, announced Thursday night that the company would lift the current lockout at its three manufacturing plants in Freeport; Des Moines, Iowa; and Bryan, Ohio. The company shut down the plants when the previous contract expired and negotiations with the USW ended Dec. 17. Taylor said employees who return to work when the plant reopens Sunday night will be working under the terms of the new agreement, regardless of the union vote. “Des Moines approved the new contract, and Freeport and Bryan rejected it, which is what I expected,” Taylor said. Kevin Kirk, president of USW Local 745, said Thursday night that despite the outcome of the contract vote he expects union members to return to work Sunday. “We will not be implementing a strike action, and we’ve instructed our membership to return to work,” Kirk said. Active members of Local 745 cast ballots between 8 a.m. and 3 p.m. Thursday. The union would not announce the exact outcome of the balloting, which involved 580 active members of Local 745.
Provisions of the Freeport contract have not been made public. In Des Moines, the Des Moines Register reported that the contract between Titan and Local 164 called for a wage freeze and a significant increase in employee insurance premiums. Titan locked out workers last Friday when negotiations from the three USW locals ended. Workers have been picketing at the plants since then. The USW and Titan began negotiations in September and were working on a contract that contained changes the company said it needed to regain profitability at its three manufacturing plants. Talks were extended to Dec. 17 after the original contract expired Nov. 19.

Editorial : I`ll say this, These Union Members have guts ! They are to be commended for their stand. Being on strike against these tyrants of today is almost like suicide. Thanks to Mike Stanley for this !

The Heart of District#9~Tennessee ~ Steve Cohen

News from District#9 Memphis-Shelby County
http://www.cohen.house.gov/

This week I joined Bishop Al Green at the Full Gospel Tabernacle Church’s 34th anniversary. I also voted to keep the federal government running, ensure the food we eat is safe, and invest in our children’s science education.

111th Congress Accomplishments:
On Wednesday I spoke on the House floor about the many accomplishments of the 111th Congress. Those accomplishments included the passage of health care reform, the Lilly Ledbetter law, and other historic legislation. Click here to see my remarks. http://www.youtube.com/watch?v=ScCVTSic8zw&feature=player_embedded

Full Gospel Tabernacle Church
On Sunday I joined Bishop Al Green at the Full Gospel Tabernacle Church’s 34th Anniversary celebration. The event was hosted by Judge Betty Thomas Moore and Robert White. It was a great celebration that marked an amazing achievement. During my presentation I discussed how my relationship with Bishop Green dates back to 1977 when I attended the first anniversary of the church as the Vice President of the 1977 Constitutional Convention. Bishop Green, known to fans over the world as Al Green, is a musical icon and one of Memphis’ ambassadors to the world. There was much “love and happiness” in the church. Bishop Green and the Full Gospel Tabernacle Church have helped many charitable causes in Memphis over the years, including St. Jude Children’s Research Hospital.

Funding the Government
On Tuesday I voted to support the Continuing Resolution, legislation that would keep the federal government funded until March 4. Had the measure failed to pass the House, the federal government would have shut down. The Senate approved the measure earlier that day.

Food Safety
This week I also voted to support the Food and Drug Administration Food Safety Modernization Act, the first major overhaul of our food safety system in 70 years. The measure would help protect our children and families from contaminated food.

COMPETES Act
On Tuesday I voted to support the America COMPETES Reauthorization Act of 2010, which makes investments in science, innovation and education to strengthen U.S. scientific and economic leadership. The measure would also help create jobs with innovative technology loan guarantees for small and mid-sized manufacturers. The legislation was sponsored by Congressman Bart Gordon, who retired this year after 25 years of service. It was a pleasure and an honor to work with Congressman Gordon over the years. I especially appreciated his help on the MED.

Government Efficiency
I voted to support the bipartisan Government Efficiency, Effectiveness, and Performance Improvement Act, which offers Congress new tools to reduce wasteful and ineffective spending and cut the deficit by assessing the performance of federal agencies.

Credit Check Lawsuit
The New York Times ran an article this week on how the Equal Employment Opportunity Commission is suing the Kaplan Higher Education Corporation citing its discrimination against black job applicants through the way it uses credit histories in its hiring process. I authored the Equal Employment for All Act (H.R. 3149) to prohibit employers from using credit checks as part of the hiring process unless the position sought involves national security, FDIC clearance or tremendous financial responsibility. Click here to read the article, and click hear to learn more about my bill. http://cohen.house.gov/index.php?option=com_content&task=view&id=1303&Itemid=25

Norm Brewer :

Norm Brewer died of cancer this week. Norm -- who served as a political analyst and commentator on WREG-TV Channel 3 for many years -- was a good friend that I will miss dearly. He once said I belonged in the “Hall of Fame of Persistence” for my work to establish the Tennessee Education Lottery. I was and remain quite appreciative of that comment. Norm was an important part of a collective conscience in Memphis that will be sorely missed. Please keep Norm and his family in your thoughts and prayers.

Cancer Treatment Research
On Monday I announced the U.S. Department of Health and Human Services has awarded the University of Tennessee Health Science Center $307,100 for cancer treatment research.

Health Insurance Rates
New proposed Affordable Care Act regulations announced this week by the U.S. Department of Health and Human Services (HHS) will bring new transparency and scrutiny to proposed health insurance rate increases. These proposed rules allow HHS to work with states to require insurers to publicly disclose and justify unreasonable rate increases. Under the proposed regulations, states with effective rate review systems would conduct the reviews. If a state lacks the resources or authority to do thorough actuarial reviews, HHS would conduct them. Meanwhile, HHS will continue to make resources available to states to strengthen their rate review processes. Click here to learn more. http://www.healthcare.gov/news/factsheets/ratereview.html

Grant Announcements
Each week I release a list of grant announcements from federal agencies like the Department of Health and Human Services, the Environmental Protection Agency, the Department of Transportation, and others. These federal funding opportunities are available to faith-based and neighborhood associations, nonprofits and other community organizations in the 9th district. The announcements are updated weekly on my website.

Genevieve Cohen
My mother, Genevieve Cohen, passed away on December 9. I was called home to Memphis on December 7 to be by her side and accordingly missed votes for the remainder of that week. I pride myself on good attendance in Congress and hope you will understand why I missed votes that week. I thank the many constituents who relayed their condolences. For those who would like to memorialize her, her favorite charity was St. Jude Children’s Research Hospital.

Wishing you a happy and safe Christmas with your family and friends,

As always, I remain,

Most sincerely,

Steve Cohen
Member of Congress, District#9~Tennessee

Goodyear Union City TN ~ Are You Reading ?

OK City OKs Expansion Funds for Michelin Plant
December 22, 2010

Ardmore, Okla., city commissioners gave the thumbs up to Ardmore Development Authority request Monday to borrow money to aid expansion at the Michelin North America tire plant in the city. The plan is for the Ardmore Development Authority to borrow $60 million, purchase the equipment and improvements MNA desires, and then lease them back to MNA. “The loan is non-recourse to the city and the ADA, so neither is at risk,” said ADA President and CEO Wes Stucky. “This provides some tax advantages to the company and helps keep our plant competitive.”

Editorial : I hope that Goodyear Union City is aware of this ? If not ? Why not ? Thanks to Mike Stanley for this one !

Be Careful What You Pray for ~ You Might Just Get It !

The Shameless Assault on Christianity by Intolerance and Greed
By Brent Budowsky - 12/21/10

You betcha I am talking privately to very senior Democrats about reaching out to the great religions for an enlightened renewal of values. But let me correct Armstrong Williams. America was founded on the idea of religious tolerance and diversity, and Jesus taught again and again about the obligation of Christians to feed the hungry, clothe the needy, treat the ill and help the hurting. Jesus taught we should sell our possessions and give the proceeds to the poor, not that Wall Street bonuses should be huge while we pass tax cuts for the rich while we neglect hunger and homelessness in the land. Armstrong says we should take a cue from the Tea Parties. I will do so only when the Tea Party shows some commitment to feed the hungry, help the poor and end the greed and rapacious behavior that is the true adversary of Christianity as taught by Jesus. I found it odd and sad, but not surprising, that Armstrong and so many others on the right wave the banner of Christianity with barely a mention of helping those who are the poorest, and show outright hostility in their ideology to ending the despoiling of the planet that violates the most basic concept of stewardship. Those who foul our markets and rip off our people have nothing in common with Christianity. Greed is not Christian. Those who foul and pollute the planet in the service of greed have nothing in common with Christianity. Pollution is not Christian. Polluters violate the traditional Protestant concept of stewardship while others violate the traditional Catholic concept of social justice accepted by Catholics of all persuasions, supported by popes over many generations and taught by Jesus with timeless truths teaching the truest faith. And those who preach or practice intolerance do no service to the founding principles of our nation or truest values of Christian faith.

Senator Mitch McConnell (R) Kentucky ~ Scrooge of the Year !

Senator Mitch McConnell (R) Elected 2010 Scrooge of the Year!

Health & Pharmaceutical Industry, Hyatt runners-up in national contest to determine who did the most harm to workers and their families this year.

Senator Mitch McConnell took 42% of the thousands of votes cast in Jobs with Justice’s eleventh annual national contest to determine the greediest, most cold-hearted person or company of the year. A small number of Senators, led by conservative Senate Minority leader Mitch “puppet of the rich” McConnell, have spent this Congressional session aggressively blocking almost all legislation from passing, especially laws that would help working people. McConnell could have shown great leadership to support people in need at a time when so many are struggling, but this Scrooge doesn’t care about governing or making this country a better place to live. McConnell’s goal is to do whatever is necessary to hoard power for himself and his party. “We hope that by being elected national Scrooge of the Year, Senator McConnell will see the 'Ghost of Christmas Yet to Come' and understand the dire consequences that his actions will have for generations of Americans,” said Sarita Gupta, National Jobs with Justice Executive Director.
The Kentucky chapter of Jobs with Justice plans to deliver the Scrooge of the Year award in person to Senator McConnell’s offices in Louisville. The Health Insurance and Pharmaceutical industry, with their single-minded focus on profits at the expense of our health, was the first runner-up with 22% of the vote. Hyatt Hotels won 10% of the vote for attempts to eliminate quality healthcare and make the recession permanent for its employees, and for their safety record. Other nominees included Rite Aid, Publix, and Giumarra Vineyards, and popular write-in candidates were Honeywell CEO Dave Cote and Del Monte Fresh. Express Scripts was a candidate for Scrooge of the Year, but reached a settlement with workers and their nomination was pulled.

Editorial : Senator McConnell has won before...did`nt change him one bit ! He is still opposed to the middle class. WAKE UP KENTUCKY !

Tennessee District#9~Memphis/Shelby County

Imagine a Congressman who actually Voted The way his Constituency Asked Him too ! You got it > Steve Cohen Did !

http://www.cohen.house.gov/

This week the House passed the tax compromise that was reached between President Obama and the GOP, Congress continued working to pass the FY2011 budget, Electrolux announced plans to transfer jobs to Memphis, and I voted for the repeal of DADT.

Obama/GOP Tax Proposal:
On Thursday I voted against the Obama/GOP tax compromise. Before casting this difficult vote, I asked each of the contacts I received from constituents—emails, letters, phone calls and the web poll. Of course I wanted to extend unemployment benefits and provide tax breaks to middle class families, which I have previously voted for as stand-alone bills, but the price of this plan is too high. In the end, I could not support this agreement because it is a bad deal for America—it increases the deficit by $858 billion without creating enough jobs or providing enough economic stimulus to justify its cost. Further, it gives tax cuts to millionaires and billionaires, threatens Social Security and enacts a too-liberal estate tax. In voting no, I was joined by 77% of the Progressive Caucus and 64% of the Congressional Black Caucus, including the legendary Congressmen John Lewis and John Conyers. The Obama/GOP proposal ultimately passed the House by a vote of 277-148. Thanks to everyone who called, emailed and responded my web poll question about the tax proposal. To view my statement on the floor further explaining my vote, click here.
http://www.youtube.com/repcohen#p/a/u/0/wzJdWQhG0eU

Passing a Federal Budget:
Congress will likely not adjourn until next week because the Senate is still working on passing funding for the federal government. It is imperative that we at least pass a Continuing Resolution (CR) for the remainder of the Fiscal Year, as the current funding authority expires soon and the federal government would shut down without action. The Senate was working on an Omnibus bill that included earmarks, which did not increase the spending, only allocated funding within the budget. However, the agreement was breached when Republican Senators who previously agreed to vote for the Omnibus pulled out because of threats from the Tea Party. There are nearly $13 million of projects that would benefit Memphis that would be included in the Omnibus but not in a CR. They include:
- $500,000 for AgBioworks Initiative, Memphis Bioworks Foundation
- $500,000 for Operation Safe Community, U of M
- $400,000 for Stop the Killing, Freedom From Unnecessary Negatives
- $400,000 for the Memphis Center for Entrepreneurship & Innovation, U of M
- $750,000 for Biofuel Micro-Refineries for Local Sustainability, U of M
- $750,000 for renovation of the National Civil Rights Museum
- $1,550,000 for Pigeon Harbor Industrial Park
- $1,000,000 for Memphis Airport Runway Seismic Retrofit
- $225,000 for Le Bonheur Children's Hospital-Pediatric-equipped Ambulance
- $550,000 for Methodist Healthcare Foundation
- $1,600,000 for the St. Jude Global Education and Collaboration Center
- $1,000,000 for Winchester Road Airfield Crossings-Seismic Retrofit Phase 1, Memphis-Shelby County Airport Authority
- $2,400,000 for Intelligent network centric sensor development program, U of M
- $1,200,000 for new technologies for infectious disease pathogens, UT Health Science Center

Renew Tax Incentives:
I recently issued a letter to House Committee on Ways and Means Chairman Sander Levin and Ranking Member Dave Camp urging them to “include a two year renewal of tax incentives for empowerment zones, renewal communities, and enterprise communities in any upcoming legislation to extend expiring tax measures.” Memphis is a renewal community. Click here to read the letter.

Electrolux:
Electrolux -- one of the largest and most respected home appliance manufacturers in the world – announced this week that they will transfer jobs and manufacturing functions to Memphis from Canada. This is great news for the city of Memphis. Memphians are capable and ready to work. The new jobs created by Electrolux and its suppliers will be a great shot in the arm for our city and economy.

Don’t Ask, Don’t Tell:
On Wednesday I voted to support legislation that would repeal a ban on gays and lesbians serving openly in the U.S. military. If someone wants to defend and serve their country they should be allowed to do so. It shouldn’t matter whether someone is gay or lesbian. Gays and lesbians deserve the same rights and opportunities everyone else gets in America. Many of our troops, our generals and a majority of the American public agree that it is time to repeal ‘don’t ask, don’t tell.’ The measure now heads to the Senate for consideration.

Earthquake Preparation:
Yesterday was the 199th anniversary of one of the largest earthquakes ever to strike the United States. The earthquake occurred in 1811 and 1812 in the New Madrid Seismic Zone (NMSZ), a fault system in the Central U.S. that includes Federal Emergency Management Agency (FEMA) Regions IV, V, VI and VII and eight of the states that make up those regions: Alabama, Mississippi, Tennessee, Kentucky, Illinois, Indiana, Arkansas and Missouri. The geological characteristics in this zone increase the potential for an earthquake to cause greater damage, in amount and size, than other earthquake-prone areas in the U.S.

The NMSZ is a major issue which is why I introduced HR 4852, the Critical Infrastructure Earthquake Preparedness Act directs the Federal Emergency Management Agency to establish a grant program to improve the ability of trauma center hospitals and airports to withstand earthquakes. If enacted, Memphis would be eligible to obtain grant money to retrofit The MED and/or the Memphis International Airport because of the 9th District’s location in the New Madrid Seismic Zone. Last year, I secured a $500,000 federal grant from the U.S. Department of Homeland Security for a seismic mitigation study for the 9th District. The destruction caused by the earthquakes in Haiti and Chile are evidence of the vastly different outcomes that can result from catastrophic earthquakes depending upon the level of preparedness. The FEMA READY Campaign is encouraging all Americans to prepare for earthquakes and other disasters by making a new year’s resolution to “Resolve to be Ready” in 2011. It only takes a few simple steps to prepare for emergencies, and anyone can visit http://www.ready.gov/ to learn more.

Grant Announcements:
Each week I release a list of grant announcements from federal agencies like the Department of Health and Human Services, the Environmental Protection Agency, the Department of Transportation, and others. These federal funding opportunities are available to faith-based and neighborhood associations, nonprofits and other community organizations in the 9th district. The announcements are updated weekly on my website.

As always, I remain,

Most sincerely,

Steve Cohen
Member of Congress, Tennessee District#9

Seniors Take a Cut...Milionaires Get Richer !

Senate, House Pass Tax Cuts that Include Social Security Payroll Tax “Holiday”

The House on Thursday night voted on the $858 billion tax cut package negotiated by the White House and Republican leaders. Lawmakers in both parties expressed unhappiness with aspects of the package, but the House passed it 277-148 and sent it to the President for signature. On Wednesday, the Senate had overwhelmingly approved the measure by a vote of 81-19. Results of the House and Senate votes are available at http://bit.ly/fVJM4o and http://bit.ly/eBs1iS. According to The New York Times, many Democrats opposed provisions granting tax cuts to the highest earners, as well as an exemption for estates of up to $5 million per person, or $10 million per couple. However, Republicans said they would not accept any change. Another tax reduction, a one-year payroll tax cut, would lower from 6.2% to 4.2% the Social Security tax levied on income up to $106,800. The government would then borrow about $112 billion to make Social Security whole. Workers making $50,000 in wages would get a $1,000 tax cut; those making $100,000 would get a $2,000 cut. The deal would also extend unemployment benefits at their current level for 13 months, through the end of 2011. “Seniors worry – with good reason - that relying on borrowed money could eventually force the Social Security program to compete with other federal programs for scarce dollars, leading to cuts,” said Edward F. Coyle, Executive Director of the Alliance. Last Friday, the Strengthen Social Security Campaign, comprised of 250 organizations and representing more than 50 million members from many of the nation’s leading aging, labor, and civil rights organizations - including the Alliance - sent a letter to Congress regarding the Social Security payroll tax cut. The letter urged Congress to oppose the tax “holiday.” To see it, go to http://bit.ly/gakc4Y .

Also last week, a group of Senate Democrats, led by Sens. Jeff Merkley (OR) and Mary Landrieu (LA), pushed for an alternative tax cut agreement that strengthens Social Security rather than providing bonus tax cuts on income over $1 million. To see the Senators’ letter to Senate Majority Leader Harry Reid (D-NV), go to http://bit.ly/i6sQGZ .

Editorial : Republicans do not want to add to the deficit. Let me see if I understand this correctly ? We are going to borrow money to give millionaire`s a tax-break. And then cut Social Security payroll tax's by 2 1/2% ! And borrow the money to make it up in Social Security ! Are we all NUTS ! No, just the Republicans who need a tax break...Give me a Break !

Bonus for Millionaires ~ Cuts for Social Security Recipients

Millionaire$ get a Gold Mine ~ Social Security Recipients get Shaft !

http://action.ourfuture.org/p/dia/action/public/?action_KEY=131

Did it make you crazy that the President thought he had to give the Republican hostage-takers a tax windfall for the very wealthy in order to get a weak stimulus ?
Well get ready for the next, even bigger hostage battle. This one we have to win.

Republicans are demanding Social Security cuts. If they don’t get those cuts, they will threaten to destroy the economy by refusing to raise the debt limit when it has to be extended in March. This time, we have maybe a month to make sure the President is on our side – before the upcoming State of the Union address. This is no time to let frustration with Washington paralyze progressives. Too much is at stake.
Tell the President: "Don't Give Social Security Cuts To The Republican Hostage-Takers." Sign the "No Social Security Cuts" petition.

http://action.ourfuture.org/p/dia/action/public/?action_KEY=131

Rumors are rampant that the President will embrace Social Security cuts in his upcoming State of the Union Address, to avoid a showdown over raising the debt ceiling.

We have to tell him: You can’t give a $700 billion windfall to the richest families in America, and then cut Social Security!

We cannot let this happen. And it won't happen if we sternly remind the White House that Social Security cuts will shatter his grassroots base. And we need to tell him now, before the State of the Union address is written.

Tell the President: "Don't Give Social Security Cuts To The Republican Hostage Takers." Sign the "No Social Security Cuts" petition.

If ten of thousands of the President's most committed supporters tell him in no uncertain terms that cutting Social Security is political suicide, he will have no choice but to heed our call.
As the President himself said to progressive activists earlier this year, "keep holding me accountable." If we don't, the hostage-takers will.

Tennessee District#9 ~ A Congressman Actually asking his Constiuents How To Vote ?

Congressman Steve Cohen, Asking How to Vote ?

http://cohen.congressnewsletter.net/mail/util.cfm?gpiv=2100066726.6835.194&gen=1

http://www.cohen.house.gov/

Dear Friend,

This week the House will vote on the tax cut deal reached by President Obama and the Republican leadership. This vote will be one of the most difficult I have ever cast because the deal includes the extension of unemployment benefits to many Memphians who are looking for work in these tough economic times and who need the extended benefits to stay in their homes and feed their children. The unemployment benefits extension will stimulate the economy because the recipients will spend those funds, supporting business and increasing tax revenues. The deal would also extend tax breaks for middle class families, many of whom are struggling. Middle class tax cuts will likewise benefit the nation’s economy. Economists confirm that these timely, targeted and temporary measures stimulate the economy. The tax deal would also continue for two years the $2,500 tax credit that helps students and their families cover the cost of tuition, benefitting more than 8 million students. However, the deal will give tax breaks to millionaires and billionaires who don’t need the breaks and will enact a very liberal estate tax with a $5 million exemption at a 35 percent rate. The $5 billion exemption will benefit only 6,600 families at a cost of $25 billion over two years. The estate tax measure approved by the House, and which I supported, would set the rate at 45 percent with a $3.5 million exemption. The tax deal also includes a reduction in employees’ Social Security contributions from 6.2 percent to 4.2 percent which will jeopardize the long-term solvency of Social Security. In addition to the wars in Iraq and Afghanistan, much of our national debt can be attributed to the Bush tax cuts for the wealthy. Continuing the Bush tax cuts will impede any progress toward decreasing the national debt. The gap between wealth and poverty has increased dramatically over the last three decades. The current wealth gap is reminiscent of the days before the Great Depression when the rich got richer and the poor got poorer. As Supreme Court Justice Louis Brandeis said, “We can have concentrated wealth in the hands of a few or we can have democracy, but we can’t have both.”

I am asking for your help in making the best choice for the 9th District. I would appreciate your participation in this survey.

How should I vote ?

I favor Congressman Cohen voting for the Obama/GOP Tax Deal.

I oppose Congressman Cohen voting for the Obama/GOP Tax Deal.


As always, I remain,

Most sincerely,

Steve Cohen
Member of Congress, Tennessee District#9 Memphis~Shelby County

Editorial : Please go to this link or his web-site to vote ! The idea of asking his constituency how to vote...How unique ! Oh, this is actually how it is suppose to work ! Thanks Congressman Cohen.

http://cohen.congressnewsletter.net/mail/util.cfm?gpiv=2100066726.6835.194&gen=1

Web-Site > http://www.cohen.house.gov/

Definition of Labor Unions or Killing the Myth !

A Simple Guide for Talking Unions

by Zoe Bridges-Curry on December 14, 2010 .

http://www.uswlocal878.com /

It’s no secret: Not everyone sees unions as key to rebuilding America and the middle class.

It’s easy to tune out the misinformation about unions and the workers who make them strong when you hear it on the news, but what should you do when the same misinformation comes from your friends and family? We’re here to help with some simple facts so you can speak up the next time you encounter someone attacking unions, and help shed light on what unions are really all about!
MYTH: Unions are run by big, overpaid bosses.
FACT: Unions are run by workers.

A union is simply a group of employees who join together to address workplace issues, so they can improve their working conditions and have a fair shot at a better life for themselves and their families.
Unions are democratic institutions. At the local, state, and national level, all union leadership is elected by majority votes—just like elections for public office.
MYTH: Unions only care about their members.
FACT: Unions are fighting to improve the lives of all workers.

It’s easy to forget that we have unions to thank for a lot of things we take for granted today in today’s workplaces: the minimum wage, the 8-hour work day, child labor laws, health and safety standards, and even the weekend.
Today, unions across the country are on the front lines advocating for basic workplace reforms like increases in the minimum wage, and pushing lawmakers to require paid sick leave. Studies show that a large union presence in an industry or region can raise wages even for non-union workers. That means more consumer spending, and a stronger economy for us all. So it’s no wonder that most Americans (61%) believe that “labor unions are necessary to protect the working person,” according to Pew’s most recent values survey.
MYTH: Union workers are lazy, and unions are bad for business.
FACT: Unions and profitability go hand in hand.

Actually, unions make the workplace more efficient – despite the stereotype that we all hear.
Unions raise productivity on average by up to 24% in manufacturing, 16% in hospitals, and 38% in the construction. Union workers have higher professional standards because unions increase opportunities for worker training. Many even offer their own training programs. Union workers are employed in some of the most respected professions. They’re nurses, firefighters, teachers, day care providers, engineers, and NASA scientists. Union members are responsible for building nuclear subs, the space shuttle, The Smithsonian, the Hoover Dam Bypass Bridge, and even the American flag. Even small business owners think that unions are good for workers—and the economy. In fact, over 80% agree “strong unions make the free market system stronger.” They’re right. Unions exist at some of the most successful companies out there, including AT&T, Costco, UPS, and Southwest.
MYTH: Unions ask for too much. In this economy, people should be thankful for any job.
FACT: Good jobs mean a stronger economy, and that means more jobs.

This idea is coming straight from the same corporations that ran our economy into the ground. Now they’re taking advantage of our financial worries to grab an even bigger slice of the pie. It’s just plain wrong to make working Americans foot the bill for Wall Street’s party. And it’s also bad for the economy. Because when workers can’t afford the products they produce, consumer spending takes a serious hit, and the economy does, too. But when workers can bargain for family-sustaining pay and benefits, consumer spending increases. The result is a stronger economy—one that creates jobs and enables people to work their way into the middle class.
MYTH: Public employees are to blame for our budget woes.
FACT: Public employees earn less than private-sector workers in similar jobs.

You’re going to hear this a lot more soon. But we can’t afford to have extremist policymakers get away with scapegoating civil servants like teachers, fire fighters, and police officers. Private-sector workers should be angry about the inadequate benefits they receive, but the solution isn’t to take hope away from the public sector workers who keep our communities strong. We have to make the economy work for everyone. Recent studies show that public employees make significantly less than private-sector workers with comparable education and experience, even when you factor in benefits. And according to Nobel laureate economist Paul Krugman, state and local employees’ pensions make up only 6 percent of non-federal public sector spending. Still not convinced? It turns out that what’s bad for public workers is bad for the economy, too. The Center for Economic Policy Research reports that freezing federal workers’ pay will mean a loss of $2.5 billion in consumption by 2012—18,000 private sector workers stand to lose their jobs as a result. And don’t forget, it was Wall Street’s recklessness that caused budget shortfalls in states across the country—not public service workers. Making public service workers pay for Wall Street’s wrongdoing won’t create jobs, and it won’t save the public services we all depend on.

Editorial : Free Democratic Labor/Trade Unions are one of the greatest resources in our Country`s history, and ought to be taught in every class room in this country. DVJ

Work for Government...Not Bad !

The Five Best-Paying Government Job$
By Elham Khatami

How well do the best-paid federal employees do ?

Pretty well, compared to the rest of us, but still far below the millions received by the best-paid workers in the private sector. After President Barack Obama’s proposal to freeze federal wages stirred up controversy, we decided to look at some of the best-paying jobs in the U.S. government. A few of those jobs are rather hard to get. Obama makes $400,000 a year; Vice President Joe Biden, $227,300; incoming Speaker of the House John Boehner and Chief Justice John Roberts, $223,500. But aside from those positions, here are some of the best-paid jobs in the federal government, according to the Office of Personnel Management.

Senior Examiner, National Credit Union Administration: $238,815

Senior examiners are in charge of scrutinizing and verifying the validity of various financial records. They coordinate the agency’s goals and make sure the administration runs in an efficient manner. At the National Credit Union Administration, senior examiners make an average of $238,815.

General attorney, Office of the Comptroller of Currency: $222,751

Federal attorneys investigate cases for various government agencies. Many also help draft and interpret laws and legislation. At the Office of the Comptroller of Currency, where general attorneys make an average of $222,751, lawyers are responsible for cases affecting the financial services industry, developing banking regulations and laws to update banking law and often represent the Comptroller in related litigation.

Chief Medical Officer, Department of Veterans Affairs: $220,382

The chief medical officer is the head of the hospital’s physicians and is responsible for serving as a liaison between the medical staff and the administration. CMOs at the Department of Veterans Affairs handle the clinical functions of their specific network’s integrated system of hospitals. They are also in charge of a variety of multi-specialty outpatient clinics and primary care clinics.

Economist, Securities and Exchange Commission: $202,259

Most of the economists at the Securities and Exchange Commission work in the Office of Economic Analysis, where they help the Commission understand and assess the economic effects of its regulatory policy. They provide analytical and technical support and conduct research in the areas of corporate finance, market microstructure or mutual funds.

Physicist, Centers for Disease Control and Prevention: $199,016

Health physicists are trained to identify, analyze and assess radiological agents in food, human tissue and the environment. The CDC created the field about 60 years ago through the Manhattan Project, as an occupation with a focus on investigating the possible negative health consequences that could result from the development of atomic energy. Since then, the job has expanded greatly and is constantly evolving.

Elham Khatami writes for Congressional Quarterly.

Correction: An earlier version of this post misstated the salaries of auditors at the National Credit Union Administration. Auditors at the NCUA make an average of $166,700.

WTO Ruling~Is It Enough to Save Goodyear Union City TN. ?

USW PRESIDENT GERARD STATEMENT:

U.S. Prevails Before WTO in China Challenge of Tire Trade Case

http://www.usw.org/tires

Pittsburgh (Dec. 13) -- Leo W. Gerard, President of the United Steelworkers (USW) issued the following statement today, applauding an announcement by Ambassador Ron Kirk, U.S. Trade Representative, that a World Trade Organization (WTO) dispute settlement panel found in favor of the United States, a challenge by China on imposition of import duties on passenger and light truck tires under the Section 421 safeguard mechanism included in China’s Protocol of Accession to the WTO. “The USW has never shied from using every tool we have available to fight for fair trade and to fight for our members’ jobs. Today’s decision confirms that the rules of trade, when vigorously enforced, can be made to work for working people. “When President Obama imposed the tariffs on Sept. 11, 2009, he became the first president to provide trade relief under Section 421. Since the tariffs have been in effect, U.S. domestic tire production has increased, tire producers have made new capital investments, and new jobs have been created for American tire workers. “We applaud the Obama Administration for standing up and defending American jobs in its original decision to impose relief and in its strong defense of that action at the WTO. We look forward to continue working with the administration to take full advantage of all enforcement tools available to us so that the benefits of fair trade are made available to all Americans. “Fair trade law enforcement should be the standard of our government in requiring China to fulfill its obligations under its accession agreement with the WTO more than a decade ago.”

BACKGROUND:

The USW original petition was filed in April 2009 under the Section 421 provision of the U.S. Trade Act of 1974. The Section 421 trade act provision was an important commitment made by the Chinese to permit its entry into the WTO. It was designed to facilitate the mutually beneficial growth in trade by reducing the adverse effects of distortions inherent in China’s non-market economy. When the International Trade Commission (ITC) examined the surge in tire imports from China, it discovered material injury to the domestic industry through continuous declines in U.S. producer’s domestic capacity, production, shipments and employment from 2004 to 2008. Notably, domestic tire capacity declined from 226.8 million tires to 186.4 million tires during the four-year investigation period, while actual production dropped from 218.4 million tires to 160.3 million tires. As capacity utilization fell from 96.3 percent to 86 percent, the number of production workers substantially declined as did their hours worked and wages.
The WTO panel found in favor of the United States with respect to all of China’s claims. Both sides have the right to appeal the panel’s findings to the WTO Appellate Body within 60 days. For documents and background on the USW trade case, plus a first-year implementation report on the positive impact of the duties on China imports underwritten by the Alliance for American Manufacturing (AAM) titled, ‘Obama’s Bold Economic Move on Chinese Tire Imports is Paying Off,’ go to: www.usw.org/tires

Editorial : President Obama has let me/us down on several of his initiatives, however this one he did good ! Will it be to little to late ? Union City Goodyear, only time will tell ! DVJ

Social Security ~ President Obama Has Let Us Down !

The Coming Cave -In... Social Security:
By : Robert Kuttner. Co-founder and co-editor of The American Prospect
December 12, 2010

If you think the Democratic base is mad at Obama now for making a craven deal with Republicans that continues tax breaks for the richest Americans and adds new ones for their heirs through a big cut in the estate tax, just wait a few weeks until Obama caves on Social Security. How will this occur ? The deficit commission appointed by the President has called for an increase in the retirement age, as well as other cuts in benefits over time. And the deal that Obama made with the Republicans just gave deficit hawks new ammunition by increasing the projected deficit by nearly $900 billion over a decade. Social Security will be in the cross-hairs. The deficit commission has tried to camouflage these cuts by emphasizing that Social Security benefits for the very poor would not be reduced, and might even be increased. But in the commission's proposal, the cuts would affect middle-class retirees. Larry Summers, who is stepping down as Obama's economic chief, has refused to rule out cuts. Social Security has also been softened up by the element of the tax deal that temporarily cuts payroll taxes. Supposedly, the trust funds will be made whole by a transfer from general government funds. But this increases the deficit. So Obama has created a kind of pincer attack on Social Security. One arm is the deficit commission, which has created the blueprint. The other is the tax-cut deal, which increases the deficit, adding to the artificial hysteria that Social Security is going broke. Meanwhile, the right is playing a very cute game, congratulating Obama for the deal. According to columnist Charles Krauthammer, writing in Friday's Washington Post, "Barack Obama won the great tax-cut showdown of 2010." Really ? How did he do that ? It sure looked like he got rolled. "The President negotiated the biggest stimulus in American history, larger than the 814 $billion 2009 stimulus package." The New York Times' resident right-wing pundit, David Brooks, also writing Friday, was peddling the same line:
"The fact is, Obama and the Democrats have had an excellent week," Brooks wrote. "The White House negotiators did an outstanding job for their side."
When the right congratulates Obama for winning, you know he is losing. For starters, the proposed compromise isn't much of an economic stimulus. If the deal passes Congress, taxpayers will be paying the same income tax rates in 2011 and 2012 as in 2010. No stimulus there. The only real stimulus is the temporary cut in Social Security taxes, the extension of unemployment insurance plus a few minor tax breaks for regular people, totaling about $200 billion. That's a little more than one percent of a $15 trillion economy. Pretty puny, certainly a lot smaller than the inadequate stimulus of February 2009 when the recession was only beginning to deepen. Except for the extension of unemployment insurance, which should be done out of common decency, most of the "stimulus" is pure Republican ideology -- stimulate the economy by cutting taxes. If that had worked, the huge tax cuts of the Bush years would have kept the economy out of recession. There is not a nickel of public investment or direct job creation in this proposed deal. And it is well recognized by economists that in a recession, temporary tax cuts, especially tax cuts tilted to the rich, provide far less bang for the buck than public investment. If Obama had fought for a deal that restored Clinton-era tax rates on the richest two percent of the population, and used the revenue for direct investment and job creation, that would have been a stimulus worth celebrating. And doubtless, commentators like Krauthammer and Brooks would be condemning it. Because the Congressional Budget Office assumed that all the Bush tax cuts would expire on December 31, 2010, the tax-cut deal creates a new budgetary reality. Suddenly, the ten-year deficit will be almost $900 billion larger than projected. This, in turn, will give new ammunition to the deficit hawks. And here is where Obama has set up Social Security to take the hit, unless he drastically shifts ground. The supposed crisis of Social Security is a phony. Social Security is financed by payroll taxes. Reduce unemployment, increase wages, and the crisis disappears. Even with only modestly better unemployment rates and wage growth, the modest projected shortfall could be eliminated by eliminating the cap on income subject to tax.
A Democratic president with strong progressive principles and political nerve would have taken his party into the mid-term election pledging never to cut Social Security and daring Republicans to take a similar pledge. Instead, Obama appointed a deficit commission with a majority of appointees wanting to cut the Democrats' signature program -- thus blurring party differences on the Democrats' biggest political winner. Obama also signaled Democrats in Congress that he might well include Social Security cuts as part of a grand deficit-reduction deal. If that occurs, the civil war in the Democratic Party will only deepen.
Coda: The other day, I was part of a conversation in which the question came up: If Democrats in Congress do hold their noses and vote for the tax-cut deal in order to prevent unemployment benefits from being cut off on Christmas, what might they ask of Obama in return? There is not a great deal that he can deliver legislatively, unless he decides to get serious about wielding his veto pen. The best idea to emerge was this: Democrats should demand, in return for their aye votes, that Obama appoint Elizabeth Warren to chair the National Economic Council, to succeed the departing Larry Summers. Warren is the one senior administration official who has not stopped fighting to protect regular Americans. She is not a Ph.D economist, but neither was the man for whom the Council was created, its first head, Robert Rubin. Nor was Rubin's successor, Gene Sperling. According to press reports, the man about to get the job is Roger Altman, an investment banker and former deputy to Rubin. Altman has been to the White House at least three times in recent weeks, and his appointment seems all teed up. Altman would continue the Wall Street dynasty around Obama -- the very gang whose reckless deregulation and speculation brought us the economic collapse whose damage is now being used to justify wrecking Social Security.
Getting Warren instead of Altman would almost justify voting for this stinker of a tax deal. Maybe Warren could even get Obama to think twice about the political and economic wisdom of throwing Social Security on the pyre of deficit reduction.

Robert Kuttner's latest book is "A Presidency in Peril." He is co-editor of The American Prospect, and a senior fellow at Demos.

Editorial : Republicans want to save Social Security...Sure They do, When Pigs fly !