The President spent his weekly talk on the economy, speaking about two things that have been discussed here in the last week. The first deals with the clean energy economy, and the jobs involved in a renewable energy sector. The second is the coming political battle over the extension of the Bush tax cuts, and the Democrats making the case that the Republicans want to take us back to the failed Bush economic policies.
An important political point to be considered here will be the tax situation for those who are not in the wealthiest tax brackets. An across the board tax increase for those folks, including stiff increases in inheritance taxes, will create a backlash against Democrats nationally. The terrain upon which the battle will be fought over the Bush tax cuts being extended will be the key to victory. If the Democrats can define the fight as the President does, they can survive. But if the Republicans can convert the political spin to a tax increase for all (as Rep. Pence does here) then it could spell more trouble for the Dems.
An overhaul of the tax system is needed to deal with this problem, but a deal does not appear likely before the mid-terms. Both sides are digging in and preparing for battle. Read the Washington Post story here.
The General Mills Methuen plant, which makes Yoplait Yogurt, became the first General Mills plant in the Country to power themselves with solar energy. Yesterday I attended the groundbreaking for the panels with Senator Steve Baddour, Rep. Barbara L’italien, and State Commissioner of Energy Resources Philip Giudice. Governor Deval Patrick sent a video talking about this project and his commitment to greatly expanding renewable energy in Massachusetts.
This project is an excellent example of how Massachusetts has made a significant effort to expand renewables and create jobs. And many of those jobs are right here in the Merrimack Valley. This project had Nexamp of North Andover making the solar panels, and Solectria of Lawrence making the inverters. Governor Deval Patrick and the Legislature deserve great credit for being willing to invest in renewables and begin to make Massachusetts a national leader in an industry that is so vital to our future. This project was made possible by a rebate on the installation by the Massachusetts Clean Energy Center.
This project is not a small one. The panels provide a year-round average of 55 percent of the annual electricity consumed by the warehouse building. (80% in the summer) The panels generate enough electricity (110.7 kilowatts) to power approximately 12 average Massachusetts homes every year. Solar power will offset more than 112,000 lbs of carbon dioxide annually. This is the equivalent of taking 10 cars off the road. Congratulations to General Mills for investing in this project. That plant has been a great asset to Methuen, and we look forward to many years of continued partnership.
New strikes by both Democrats and Republicans warmed up the Governor’s race a bit, with Charlie Baker unveiling a new radio ad touting his experience as the head of Harvard Pilgrim health care, and Tim Murray issuing a new internet video slamming Baker for that experience. Murray used the video to tie Baker to the national Republican policy of fighting against the extension of unemployment benefits while highlighting his big salary over at Harvard Pilgrim. Neither side mentioned Tim Cahill.
Jon Keller is reporting that the conference committee reconciling the gambling bills of the House and Senate has encountered some heavy turbulence. Some reports indicate that the Senate has rejected a House proposal that would license two racetracks (instead of four) for slots on a competitive basis and license three resort style casinos, with the locations to be determined by a State Gaming Commission. The Senate appears to be prepared to license one location for slots on a competitive basis, with no guarantee that it would go to a track. Reports indicate that the Senate proposal would bring 750 slot machines to the one licensed site, while the House proposal would still bring 3000 slot machines to two racetracks. The Speaker’s original proposal calls for 3000 slots, to be given on a no bid basis, to four racetracks. It also appears clear that the House side is doing the leaking on the apparent stalemate. More to come, with the Governor’s hand strengthening with every day that goes by.
The Republican leadership that appeared on Meet the Press seemed to me to have a pretty rough show. Maybe before their next appearance they will take an hour or two to do some preparation. I had earlier posted clips of them stumbling pretty badly when asked for specific cuts they would make to reduce the deficit. But they have also given the Democrats an opportunity to jump on them for suggesting a return to the agenda of President George W. Bush. I realize that President Obama is experiencing declining approval ratings, but I don’t believe that makes the Presidency of George W. Bush an attractive ideological alternative. And jump the Democrats did, producing an ad that reminded people of the Bush record. Maybe the Republicans ought to re-consider who they send out for the Sunday morning talk shows. I am sure Michael Steele would have been available.
The fate of casino gambling in Massachusetts has come down to the wire, with House and Senate conferees working to reach agreement before the July 31st deadline. With the closer deadline comes the possibility of a conference agreement that could be vetoed by Governor Patrick with no chance of a legislative override due to the end of session. Patrick has expressed his opposition to slots at the tracks, which Speaker Deleo has insisted be part of a final bill. Rep. Brian Dempsey, the lead House negotiator, played down the Governor’s potential role in the final outcome: From the State House News Service:
“I think we’re certainly mindful of various concerns, but I think the conference is clearly between the House and the Senate and we are focused on reconciling the differences between the two branches, and we’ll go from there.”
Democratic leaders are facing political pressure from the trade unions, who are threatening to sit out the November election cycle if a bill is not signed into law.
“If something doesn’t get done, I think it’ll be viewed, certainly by me and I think by our membership, as more than a missed opportunity,” said Frank Callahan, president of the Mass. Building Trades Council. “I think it’d be extremely difficult to get our members involved. I think they’d throw their hands up in frustration.”
A group of twelve Mayors has weighed in, sending a letter of support for the House version, which promises to get the locals additional local aid quickly, based on the more immediate financial results from race track slots. (I did not sign that letter.)
The impetus for a bill seems strong, but the clock is running down. Senator Baddour, on the radio program I hosted last week, indicated that he believed an agreement could be reached. Senator Steve Pangiotakos has expressed similar optimism. Who was it that said that in matters of gaming, “The House always wins”????
Should there be resort style casinos, and should the tracks get slots? What do you think?
The Republicans were all over weekend talk shows talking about their prospects for victory in November. Plenty of criticism for the President and Democrats on the deficit, but when repeatedly pressed for one area where they would make substantive change to reduce the deficit they repeatedly refused to do so. Chris Van Hollen had it right at the end of this clip when he referred to the Rep. Paul Ryan (R) “roadmap” for a balanced budget, which calls for major changes in medicare and social security. At least Ryan had the guts to put on paper what Sessions and Coryn took pains to avoid discussing. As with my earlier praise for Tea Party candidates honesty, until people in politics are willing to actually say what they mean a real discussion and debate cannot happen. And we need a real debate, with honest choices. How can these guys cut the deficit when they are afraid to mention one specific cut, and when they say that tax cuts that add billions to the deficit do not need to be accounted for in deficit reduction efforts. Nonsense. Chris Matthews does have this one right.
The Republican primary for U.S. Senate in Arizona continues to get nasty, with John McCain, thought to be in trouble, piling up a huge lead over former Congressman J.D. Hayworth. Hayworth has been badly tarnished by his participation in an infomercial for a company that essentially fleeces folks, with his first response that consumers should practice “caveat emptor”. He has since apologized, but has been put under an enormous barrage from Team McCain. He has been pounding Hayworth on the earmark issue, where ole J.D. has some pretty big vulnerability. McCain has put out a fact sheet highlighting Hayworth’s record on issues.
Hayworth’s Former Colleagues In The House, Rep. John Shadegg And Former Congressman Joe Scarborough Recall Hayworth “Beating The Hell” Out Of Fiscal Conservatives Who Stood Up Against Earmark Spending. “Scarborough then recalled one episode during his time in Congress when he and Shadegg were dressed down by Hayworth and Gingrich. ‘John Shadegg and I along with about seven, eight, nine Republicans used to give Newt Gingrich hell after Newt decided he liked earmarks and liked big spending. And [Gingrich] liked teaming up with Dave Obey and attacking us, and I’m quoting Newt, as “jihadists,”’ Scarborough said. ‘So Newt called us “jihadists” and I remember our friend JD Hayworth standing up in those caucus meetings and just beating the hell out of us.’ Hayworth, Scarborough recalled, was ‘saying how dare you do this to poor Newt, blah, blah, blah, blah. And all we were trying to do was balance the budget.’ ‘Yeah, that’s right,’ Shadegg responded. ‘J.D. was on the other side of those fights from us “jihadists.”’” (Andy Barr, “John Shadegg, Joe Scarborough laugh at J.D. Hayworth,” Politico, 2/25/10)
The Methuen Exchange Club recently held their “Service to Seniors” banquet at the Methuen Senior Center. This years recognition went to Theresa Robinson, who has done a great job at Methuen’s Senior Center. Congratulations Theresa, who embodies the spirit of giving that makes our Senior Center the great place that it is.
“Rene J. Morissette”
SERVICE TO SENIORS AWARD
The Methuen Exchange Club and Methuen Council on Aging proudly present this year’s “Rene J. Morissette Service to Seniors Award” to…
THERESA ROBINSON
Theresa officially began volunteering at the Methuen Senior Activity Center ten
years ago and became a Methuen Senior Activity Center Trustees last year.
Starting out small with just a project or two, today you’ll find Theresa involved
on a daily basis in nearly every event and program including the annual Holiday
Craft Fair, Arts, Crafts and Music Festival, health fairs, informational talks, the
daily lunch program, TRIAD Senior Safety Program and more! Intergenerational
programs are particularly dear to Theresa and she participates weekly in the
Adopt-A-Grandparent program with Methuen High students and year after
year in the Pen Pals Project with 3rd graders at the CGS Grammar school.
Theresa also volunteers her time helping with the Happy Hearts Choral Group
ever week, on occasion in the Thrift Shop or as a trip monitor for one of the
many tours offered though the senior center and is always one of the first to help
out with the big newsletter mailing twice a year! Theresa’s commitment to
helping others doesn’t end with the senior center. You might see her helping
with fundraising and awareness efforts for our US Military, Elder Services of
the Merrimack Valley, the American Cancer Society and more!
No matter the task, Theresa jumps right in! Don’t let her quiet demeanor fool
you… She’s an absolute powerhouse of versatility and volunteerism and her
participation and unwavering support Methuen’s Senior Center is nothing short of amazing!
The President took to the airwaves to pound Republican Senators for obstructionism, pointing to the filibuster against the extension of unemployment benefits and the lack of action on a small business tax relief bill. The President and the Democrats have been lectured repeatedly by the Republicans on the evils of deficit spending, and without question they have driven up the short term deficit to deal with the mess that was inherited. The idea of applying fiscal stimulus in the type of situation that President Obama found himself in on inauguration day used to be settled economic policy, but I guess that is now heresy in the Republican Party.
The Republicans seem to have two points on deficits that they like to make. The first is a sheepish admission that while they controlled Congress and the Presidency they ran up huge deficits. But they have learned their lesson. Back then it was just “standard practice” to not pay for things. From the Washington Monthly.
“it was standard practice not to pay for things,” said Sen. Orrin Hatch, R-Utah. “We were concerned about it, because it certainly added to the deficit, no question.” His 2003 vote has been vindicated, Hatch said, because the prescription drug benefit “has done a lot of good.”
Standard practice indeed. Let us not forget that President Bush inherited a balanced federal budget from President Clinton, and piled on tax cuts while enacting a huge new entitlement with the prescription drug benefit, and allowing borrowing to fund the waging of two wars. But that hypocrisy is now over, according to Republicans. They are ready to stand tall against deficit spending. Which brings us to the present.
Point two of the Republican position on deficit spending is that tax cuts that add to the deficit need not concern us. Yes it apparently is sound fiscal policy to increase the deficit by cutting taxes, but unsound to increase the deficit to extend unemployment benefits. The Republican leadership in the Senate has made their position clear. From the Huffington Post:
“[Y]ou should never raise taxes in order to cut taxes,” said the Arizona Senator during an appearance on Fox News Sunday. “Surely Congress has the authority, and it would be right to — if we decide we want to cut taxes to spur the economy, not to have to raise taxes in order to offset those costs. You do need to offset the cost of increased spending, and that’s what Republicans object to. But you should never have to offset cost of a deliberate decision to reduce tax rates on Americans.”
So the next time Republicans lecture about the deficit it should be clear that the hypocrisy of their position is extraordinary.
The Republicans deserve to be whipped on the deficit, but the Democrats continue to lose the political fight on this issue. And the reason they continue to lose is that they are not showing the public that they consider this a serious issue. They have not explained the difference between the benefits of short term spending and the real tough decisions that lie ahead for the country on this. And while the President has put together a deficit commission over the objections of Republicans the report will not be issued until after the November elections. The Democrats also need to realize that even for good causes like unemployment benefits being extended they cannot just ignore the deficit as an issue. They need to deal with the continuing assault that has been launched by Republicans, and spend some time and political capital fighting back on this.
Bill Manzi.com 