Voter Political Blog

Jan. 4 (Bloomberg) — President-elect Barack Obama is pushing for tax cuts amounting to hundreds of billions of dollars in a stimulus package he’s asking Congress to pass within the next several weeks, a transition official and a Democratic aide say.

Obama is asking that tax cuts make up 40 percent of a stimulus package, the officials say. The measure may be worth as much as $775 billion, the Democratic aide says, meaning tax cuts may constitute more than $300 billion of the legislation.

Making tax cuts such a large part of the stimulus may help win support from congressional Republicans. Senate Minority Leader Mitch McConnell, a Kentucky Republican, said today his party would support an immediate middle-class tax cut as part of any stimulus package.

“Republicans, by and large, think tax relief is a great way to get money to people immediately,’’ McConnell said on ABC’s “This Week.”

Obama’s plan would attempt to boost consumer demand by spending $140 billion on tax breaks worth $500 for individuals and $1,000 for couples, according to a House Democratic aide. The change would come by altering tax-withholding rules, rather than though a rebate check as with the previous stimulus plan enacted last year, so that workers would see an immediate increase in their take-home pay.

Business Tax Breaks

The plan also includes business tax breaks, including ones allowing companies to write off more of their losses against previous years’ tax bills. Other provisions would allow companies to write off more of the cost of their equipment, the aide said. The plan also attempts to combat joblessness by offering companies tax breaks for hiring more workers, the aide said.

Many of the business tax incentives would be accelerated from future years so that any dollar written off now would not be able to be claimed in future years, the aide said. That would reduce the long-term impact of the tax cuts on the federal budget deficit.

The tax cuts would be part of stimulus Obama is seeking which will also boost spending for roads, bridges, power grids and other public works projects.

Lawmakers and Obama say it’s imperative for legislation to be passed to prop up the U.S. economy, which is in its worst slump in decades and could deteriorate further without significant fiscal stimulus. Economists surveyed by Bloomberg last month projected gross domestic product would shrink in the fourth quarter by 4.3 percent, the biggest decline since 1982.

The news on the size of the tax cuts was first reported in the Wall Street Journal.

(CNN) — New Mexico Gov. Bill Richardson is withdrawing his nomination to be commerce secretary, citing the distraction of a federal investigation into ties to a company that has done business with his state.

Two Democratic officials told CNN the investigation involves a California company that won municipal bond business in New Mexico after contributing money to various Richardson causes.

In a statement Sunday, Richardson said he asked Obama “not to move forward” with his nomination now.

“I do so with great sorrow. But a pending investigation of a company that has done business with New Mexico state government promises to extend for several weeks or, perhaps, even months,” the statement reads. “Let me say unequivocally that I and my Administration have acted properly in all matters and that this investigation will bear out that fact. But I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process.

More at CNN

Chicago—President-elect Barack Obama used his weekly radio address to drum up bi-partisan support for his nearly trillion dollar economic plan, which calls for pouring money into the nation’s infrastructure, building new schools and giving a tax cut to the middle class. Obama, who will move with his family to Washington this weekend, is scheduled to meet with leaders from both parties to discuss his proposal, which he has promised will save or create 3 million jobs over the next three years.

“For too many families, this new year brings new unease and uncertainty as bills pile up, debts continue to mount and parents worry that their children won’t have the same opportunities they had,” he said. “However we got here, the problems we face today are not Democratic problems or Republican problems. The dreams of putting a child through college, or staying in your home, or retiring with dignity and security know no boundaries of party or ideology.”

Obama has faced push back from Republicans concerned about the ballooning cost of the plan — it now stands at $775 billion — and leaders have called for public hearings and said the plan should be free of special interest earmarks.

“This is taxpayers’ money, and they deserve to know their hard-earned tax dollars aren’t being wasted,” said John Boehner (R-OH) in a statement.

Republicans have put forward a plan of their own which is largely based on reforming tax laws that they say would create one million jobs.

Obama said his plan will provide jobs in the short-term and long-term economic growth, by upgrading classroom technology and “greening” buildings and reforming the health care system.

“This plan must be designed in a new way - we can’t just fall into the old Washington habit of throwing money at the problem. We must make strategic investments that will serve as a down payment on our long-term economic future,” he said. “We must demand vigorous oversight and strict accountability for achieving results. And we must restore fiscal responsibility and make the tough choices so that as the economy recovers, the deficit starts to come down.”

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The political drama from Illinois is nothing short of spectacular.  If this were a book, a warning would be placed on the cover not to read late at night as the contents may keep reader up all night long.   (I am loving this story!!)

The latest article to titillate from the Chicago Tribune, (the famed paper is doing an outstanding job during the past month covering every angle of the story as is WGN Radio and TV) is the possibility that Governor Rod Blagojevich will escort his nominee for the U.S. Senate to Washington, even to the Senate floor.  There is also a report that armed guards may be there to block the entrance to the floor.  If Roland Burris ever wanted to be remembered in the history books, this just might do it.  (Will C-SPAN 2 get a record number of viewers?)

Whether this happens is of course contingent on the actions of the Illinois Secretary of State Jessie White, the Illinois State Supreme Court, and the leaders in the Senate.  But given the chapters of this story that we already have watched unfold this past month I am not betting against anything from happening.

As U.S. Senate leadership developed an elaborate set of contingency plans Wednesday to keep Roland Burris from taking over President-elect Barack Obama’s seat, the disputed appointee promised not to “create a scene” when the Senate convenes next week.Gov. Rod Blagojevich, the outcomes range from a denial of entry to a limbo where he can hire staff but not vote.Jesse White to certify Blagojevich’s paperwork making the appointment.

If Burris shows up Tuesday to claim the seat given to him by disgraced

On Wednesday, Burris’ lawyers took the first legal action in what could be a prolonged court fight, seeking to force Illinois Secretary of State

Should Burris appear in Washington without that certification, armed police officers stand ready to bar him from the Senate floor, said a Democratic official briefed on Senate leaders’ plans.

Leadership also is considering the possibility of Blagojevich appearing in person to escort Burris. Ironically, the scandal-plagued governor would be allowed onto the Senate floor, because sitting governors are allowed floor privileges, while Burris would not without certification. Blagojevich spokesman Lucio Guerrero said the governor had not decided whether he will appear in Washington next week with Burris.

Democratic leaders hope to avoid any standoff, and in an interview with the Tribune on Wednesday, Burris said he hoped to claim the Senate seat without added drama.

“We’re not going to create a scene in Washington,” Burris said. “We hope it’s negotiated out prior to my going to Washington.”

Senate leaders have expressed no willingness to negotiate and have vowed to bar anyone appointed by Blagojevich because of his alleged attempt to sell Obama’s seat.

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NASA chief, Michael Griffin, is doing his best to retain his position in the upcoming Obama administration.

Griffin has an online petition that he is asking people to sign in hopes it will pressure Barack Obama to keep him. His wife has publicly asked friends to sign it.

As of today, the petition had 1,585 signees, but many included unfavorable comments.

“Dr. Griffin is useless, and in fact - detrimental, as a NASA admin.”

“This petition is a scandal.”

“Get him out, this petition is a disgrace.”

The position is a political appointment so it would be unlikely for Griffin to keep his position with a new President. The lobbying effort is a risky venture in itself, as Presidents do not generally like to be pressured on their political appointments by their prospective political appointees.

Griffin has also not cooperated well with Obama’s staff. He has not eagerly provided information that the transition team has requested and even told the head of the space transition team, Lori Garver, that she was not qualified to judge him.

To Griffin’s credit, many consider him responsible for pointing NASA in the right direction for its important and wide-ranging missions planned for the next decade.

Griffin also has some scientific differences with Obama. For example, he is not convinced that global warming is manmade or that anything should be done about it, even if it is.

Instead of a petition, a little humility probably would have gone a lot further.