Pelosi Announces Run For House Democratic Leader

/PRNewswire/ -- Speaker Nancy Pelosi released the following letter to her Democratic colleagues Friday afternoon announcing that she will run to become House Democratic Leader in the next Congress.

Excerpt from her letter to Democratic colleagues:

"Our work is far from finished. As a result of Tuesday's election, the role of Democrats in the 112th Congress will change, but our commitment to serving the American people will not. We have no intention of allowing our great achievements to be rolled back. It is my hope that we can work in a bipartisan way to create jobs and strengthen the middle class.

"Many of our colleagues have called with their recommendations on how to continue our fight for the middle class, and have encouraged me to run for House Democratic Leader. Based on those discussions, and driven by the urgency of protecting health care reform, Wall Street reform, and Social Security and Medicare, I have decided to run."

* * *

Below is the full text of the letter:

November 5, 2010

Over the past several days, I have spoken with many Democratic colleagues about how to continue our fight for to make our country more secure and strengthen the middle class, create jobs, protect Social Security and Medicare, and promote the innovation, technology and education to make America Number One in the world. As always, I am inspired by the fighting spirit of our Democratic Members.

As you know, Democrats have produced historic legislation in the area of health care, veterans' benefits, women's rights, Wall Street reform, and cutting taxes for 95 percent of the American people and millions of small businesses. And we have restored fiscal discipline to the Congress by making the deficit-cutting Pay As You Go rules the law of the land.

These accomplishments have begun the difficult work of recovering from the worst economic collapse since the 1930s and, according to independent reviews, prevented our country from plunging into another Great Depression. As a result, numerous congressional experts call this the most productive Congress in a half century. This was only possible because our Members had the courage of their convictions and put the interests of the Country first.

Our work is far from finished. As a result of Tuesday's election, the role of Democrats in the 112th Congress will change, but our commitment to serving the American people will not. We have no intention of allowing our great achievements to be rolled back. It is my hope that we can work in a bipartisan way to create jobs and strengthen the middle class.

Many of our colleagues have called with their recommendations on how to continue our fight for the middle class, and have encouraged me to run for House Democratic Leader. Based on those discussions, and driven by the urgency of protecting health care reform, Wall Street reform, and Social Security and Medicare, I have decided to run.

I am writing to respectfully request your support and I look forward to hearing your views. Please let me know what you are thinking.

Thank you for your leadership and friendship.

best wishes,

Nancy Pelosi

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Senate to Consider Eliminating $21 Million in Tax Credits for Poorest Georgians

The Senate Finance Committee revived a proposal yesterday that died in the House on Crossover Day -- a proposal that eliminates the refundable portion of the Low Income Tax Credit. The Senate could vote on the measure (House Bill 1198) on Wednesday or in the final legislative days next week.

Currently, taxpayers with income below $20,000 are eligible for a tax credit ranging from $5 to $26 for individuals, with additional benefits for the elderly and families with children. If the tax credit exceeds a taxpayer's income tax liability, he or she receives the remaining credit as a refund.

More than one million Georgia taxpayers claimed the Low Income Tax Credit in 2007, receiving $29 million in credits. If legislators eliminate the refundable portion of the credit, they will cut the Low Income Tax Credit by two-thirds, lowering the total credits to low-income Georgians by $21.8 million, according to the fiscal note to the bill.

At the same time, legislators have passed about a half a billion dollars in new tax breaks for corporations and the state's wealthiest individuals. HB 1023 cuts the capital gains tax in half and eliminates the corporate net worth tax ($380 million annually when fully implemented). HB 1055 eliminates the income tax on retirement income for the state's wealthiest seniors ($150 million when fully implemented). These bills await the governor's signature or veto.

Why is the Credit Refundable?

The refundable portion of the Low Income Tax Credit (the portion that exceeds income tax liability) is indended to offset some of the sales tax liability faced by low-income Georgians.

Low-income taxpayers do not have a large income tax liability. Instead, they pay substantial sales taxes because they consume a greater portion of their income than higher income residents do.

Georgians earning less than $16,000 pay 7.8 percent of their income on average in state and local sales and excise taxes; however, Georgians earning $62,000 pay 4.4 percent and those earning over $433,000 pay 0.9 percent on average. Click here for a chart on tax liability by the Institute on Taxation & Economic Policy.

In its current refundable form, the Low Income Credit offsets a small fraction of sales tax liability for low-income taxpayers, making an overwhelmingly regressive tax somewhat less so. Since relief cannot be targeted specifically to low-income taxpayers through the sales tax, it must be done through the income tax.

Are Other Tax Credits Refundable?

The Low Income Tax Credit is not the only refundable credit -- it just happens to be the only one targeted to the very lowest-income taxpayers.

Corporations doing business in Georgia can claim certain tax credits even if they have zero corporate income tax liability. These include the film tax credit, the jobs tax credit, and the headquarters tax credit. A corporation with tax credits in excess of its income tax liability is able to receive the remaining credits by taking the credits against employee payroll withholding.

Here's how it works: Employees have income withheld from their paychecks for state income taxes. That money typically flows to the state. However, if the company has tax credits and no income tax liability to use the credits against, the state allows the corporation to keep the employees' withholding payments in the amount equal to the excess tax credits.

Corporate tax credits taken against payroll withholding (the essentially refundable portion) cost $20.9 million in 2007, nearly matching the cost of the Low Income Tax Credit refunds.

"If lawmakers pursue HB 1198 because they do not believe in refundability for more than one million of Georgia's lowest-income taxpayers, then it follows that they will also need to enact legislation to correct the refundable nature of certain corporate tax credits," said Sarah Beth Gehl, deputy director of the Georgia Budget & Policy Institute.

Conclusion

There is no doubt about the fact that Georgia desperately needs more revenues. However, there are many logical and fair options for seeking revenues, without focusing solely on those taxpayers who have the least ability to afford a tax increase now or after the recession. "Lawmakers should seek either broad-based revenue measures or those targeted at taxpayers with the greatest ability to afford it," said Gehl. Click here for a $450 million option.

Download the Georgia Budget & Policy Institute's analysis of the proposal (which was originally in HB 1219), including a more sensible alternative, here. The Institute on Taxation and Economic Policy has an analysis of the bill as well.

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DC Elites Look to 2010 Election

/PRNewswire/ -- According to StrategyOne's recent Beltway Barometer survey of DC's elite, the question Washington elites are pondering is not IF Democrats will lose seats in the House, but HOW MANY seats they will lose.

The survey, conducted January 14-17, 2010, finds Republicans and Democrats at odds on how many seats Democrats will lose.

So what are the DC insiders thinking?

Both parties think Democrats will lose seats in 2010, and only 7% of Democratic elites think Nancy Pelosi will maintain (5%) or increase (2%) her seat margin in the House.

Elite Republicans in Washington generally expect to see their party gain between 20 and 39 seats in November. In fact, 56% of elite Republicans expect Democrats to lose between 20 and 39 seats, and 25% of elite Republicans expect Democrats to lose 40 or more seats and with this their majority.

At this stage the majority of elite Democrats in Washington expect to keep the losses under 20 seats. Specifically, 62% believe Democrats will lose fewer than 20 seats and 28% believe Democrats will lose between 20 and 39 seats. Only 2% of elite Beltway Democrats currently think that Democrats will lose the House majority in November. This sentiment may change depending on the election results in Massachusetts today.

StrategyOne will be tracking elite DC opinion on the 2010 elections and reporting this data first to our clients and then to the media.

The warning signs are clearly present for Democrats at this point, and although wild card events could easily change the arc of the 2010 election season, the trend is certainly beginning to suggest a Republican wave.

Question Text & Data:

Now, looking ahead to the 2010 elections to the House of Representatives... As you know, Democrats control the House of Representatives with a 40 seat majority at the present time. Which ONE of the following do you think will happen in the 2010 elections?

  Answer                                              DEM      GOP
 ------                                              ---      ---
 Democrats will increase their number of seats in
  the House                                                2%       1%
 ------------------------------------------------        ---      ---
 Democrats will maintain their current number of
  seats in the House                                       5%       1%
 -----------------------------------------------         ---      ---
 Democrats will lose fewer than 20 seats, but
  maintain their majority                                 62%      16%
 --------------------------------------------            ---      ---
 Democrats will lose between 20 and 39 seats, but
  maintain their majority                                 28%      56%
 ------------------------------------------------        ---      ---
 Democrats will lose 40 or more seats and lose their
  majority                                                 2%      25%
 ---------------------------------------------------     ---      ---
 Unsure/Refused                                            2%       3%
 --------------                                          ---      ---

Survey Methodology:

StrategyOne conducted 400 telephone interviews among 200 Republicans and 200 Democrats. The overall margin of sampling error for the total N of 400 is +/-4.9%. The margin of error for the N of 200 per party is +/-6.9%. Interviews were conducted January 14-17, 2010. The full (crosstab) results can be found here: http://www.strategyone.net/documents/Jan_2010_Crosstabs.pdf. For more information on the Beltway Barometer, please visit www.beltwaybarometer.com.

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Pelosi, Boehner Statement on Security Breach Relating to Confidential House Materials

/PRNewswire/ -- Speaker Nancy Pelosi and House Republican Leader John Boehner released the following statement today on a security breach relating to confidential House materials:

"In response to a recent data breach associated with the use of peer to peer applications on a non-House computer, we have directed the Office of the Chief Administrative Officer's (CAO) Information Security Department to perform an immediate and comprehensive assessment of the policies and procedures for handling sensitive data. CAO Information Security Policy prohibits the use of peer-to-peer applications on House Computers. We are working diligently to provide the highest level of data security for the House in order to ensure that the operations of House offices are secure from unauthorized access."

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ACCCE Statement in Regards to the Passage of the American Clean Energy and Security Act

/PRNewswire/ -- Today, the U.S. House of Representatives passed the American Clean Energy and Security Act of 2009 (H.R. 2998). In response to passage of this legislation, Steve Miller, CEO and President of the American Coalition for Clean Coal Electricity (ACCCE), released the following statement:

"ACCCE supports the timely adoption of federal carbon management legislation that could include a mandatory cap and trade program. Accordingly, over the past several months, ACCCE has offered constructive proposals to members of the House of Representatives concerning how H.R. 2998 should be changed. The House did make important improvements to H.R. 2998. However, ACCCE cannot support this bill, as it is written, because the legislation still does not adequately protect consumers and the domestic economy or ensure that the American people can continue to enjoy the benefits of affordable, reliable electricity, which has been so important to our nation.

"We look forward to working with the U.S. Senate and other stakeholders during the coming months to make additional, vital modifications to H.R. 2998 so the legislation ultimately adopted by Congress and signed by the President ensures greater energy independence, produces environmental benefits, and promotes economic prosperity for millions of Americans."

U.S. Members of Congress Introduce Legislation on Argentine Debt and Court Defaults

/PRNewswire / -- American Task Force Argentina (ATFA), a coalition of more than 40 taxpayer, investor, educator, Latino and agriculture organizations, today commended members of the U.S. House of Representatives for introducing legislation imposing stiff penalties on wealthy and middle-income nations that, like Argentina, refuse to honor obligations to U.S. creditors.

The effort is being led by Representative Eric Massa, a Democrat from New York State who was raised in Argentina while his father served as U.S. Naval Attache in Buenos Aires. Also introducing the legislation were Representatives Paul Tonko (D-NY), Robert Wexler (D-FL), Timothy Bishop (D-NY), Carolyn Maloney (D-NY), Dan Maffei (D-NY), and Mike McMahon (D-NY).

The bill, H.R. 2493, called the Judgment Evading Foreign States Accountability Act of 2009, would bar from U.S. capital markets any nation that has been in default of U.S. court judgments totaling more than $100 million for more than two years. The legislation would also require the U.S. government to consider the default status of these countries before granting them aid.

"Argentina is ignoring billions of dollars in U.S. court judgments, which has hurt not just U.S. citizens, but also Argentine citizens," said ATFA Executive Director Robert Raben. "U.S. taxpayers are still waiting to be repaid money they lent to Argentina in good faith. At the same time, Argentina is saddled with the reputation of a deadbeat because their government defaults on court judgments. This legislation should pave the way for a fair resolution for both countries."

In 2001, Argentina defaulted on $81 billion in obligations to investors - the largest sovereign debt default in history. In 2005, Argentina offered bondholders 27 cents on the dollar for outstanding debt, far below the international norm for sovereign debt restructurings. Argentina repudiated its debts to the 50 percent of foreign lenders who declined the offer. U.S. courts have ruled in favor of these "holdout" bondholders in numerous cases, but the Argentine government has refused to repay its debts, choosing to default on those judgments.

"President Kirchner has said several times she's prepared to negotiate with bondholders, but we've seen no action whatsoever," Raben said. "Argentina has $45 billion in reserves and can afford to pay its $3.5 billion in debts to U.S. bondholders many times over. It's time to resolve this issue for the benefit of both nations."

A team of Argentine economists concluded in 2006 that Argentina's default status causes the nation to lose more than $6 billion in foreign direct investment every year. The U.S. State Department warned in February 2009 that Argentina's unresolved debts, and the resulting court judgments, have created a risky climate for U.S. investors.

Argentina's refusal to resolve its outstanding debts may be setting a precedent in the region. Ecuador in recent months defaulted on more than $3.8 billion in obligations to foreign investors, citing Argentina as a model.

The legislation introduced today is intended to encourage responsible lending, support the rule of law and improve international accountability by:

-- Denying Argentina and other foreign states that have been in default
of U.S. court judgments exceeding $100 million for more than two years
access to U.S. capital markets;
-- Denying domestic corporations of such judgment evading foreign state
that remain in default for more than three years access to the U.S.
capital markets;
-- Requiring the U.S. government to consider the default status of
countries before granting them aid; and
-- Requiring the Secretary of the Treasury to issue annual reports naming
these states and analyzing the impact of their behavior on the U.S.
economy.


The legislation would not affect poor nations, including those eligible for International Development Association financing or relief through the World Bank's Heavily Indebted Poor Countries (HIPC) Initiative or the Multilateral Debt Relief Initiative.

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U.S. Senate Joins House of Representatives in Passing Legislation to Establish September 11 as a National Day of Service

/PRNewswire/ -- The U.S. Senate today joined with the U.S. House of Representatives in passing historic national service legislation (ServeAmerica Act S. 277) which, like the House GIVE Act, includes a key provision that would formally authorize federal support for establishing the anniversary of the September 11 terrorist attacks on America as a "National Day of Service and Remembrance." U.S. Senator Charles Schumer (D-NY) worked closely with U.S. Senators Edward Kennedy (D-MA) and Orrin Hatch (R-Utah), co-sponsors of the ServeAmerica Act, to include language supporting the 9/11 Day of Service observance, a program long advocated by the MyGoodDeed.org organization. The 9/11 nonprofit organization was founded in 2002 with widespread support from the 9/11 family community to establish September 11 as a National Day of Service and Remembrance.

Now passed, the House and Senate bills will proceed to conference to reconcile any differences. A final bill approved by both houses of Congress is expected to be delivered to President Barack Obama for his signature within days.

"For more than seven years, we have worked along with many 9/11 families, first responders, volunteers, and rescue and recovery workers with the hope that one day we would be able to formally establish 9/11 as a National Day of Service and Remembrance," said David Paine, founder and president of MyGoodDeed.org. "Today we stand just a pen stroke away from creating a historic observance that ensures that the lives of those lost are forever remembered in a constructive and compassionate way by millions of people for generations to come."

"I could not be more proud to work to pass this important provision," said Senator Schumer in a press release (http://schumer.senate.gov/new_website/record.cfm?id=309892). "September 11 should not only be a day for mourning - it should be a day to think about our neighbors, our community and our country. We can take a tragic day in our nation's history and turn it into a force for good."

A New Catalyst for Volunteerism

Under both the House and Senate bills, the anniversary of 9/11 would annually be observed in ways similar to Martin Luther King Jr. Day. Individuals, employees, students, members of organizations and others would voluntarily engage in service and remembrance through acts of good deeds, personal and organized service activities and reflection. However, the anniversary of 9/11 would intentionally not be a federal holiday - rather than a traditional day off, it would be a day devoted to community service and other acts of goodwill.

"We are confident that establishing 9/11 as a National Day of Service and Remembrance will play a major role in further energizing volunteerism in America, while also bringing a sense of national healing to one of the worst human tragedies in U.S. history," said Jay S. Winuk, co-founder and vice president of MyGoodDeed.org, and brother of attorney and 9/11 rescuer Glenn J. Winuk, a firefighter/EMT who perished when the World Trade Center's South Tower collapsed.

MyGoodDeed.org, a 501c(3) charitable organization based in New York, has lead the seven-year effort to establish 9/11 as a National Day of Service and Remembrance. Each year MyGoodDeed.org organizes activities that encourage individuals and organizations to set aside time on the anniversary of 9/11 to perform simple acts of good deeds and service that help others in need. Along with Senator Schumer, U.S. Representative Peter King (R-NY) has been a vocal advocate of the Day of Service initiative and serves as co-chair of MyGoodDeed's Congressional Advisory Board.

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House GOP to Force Vote on Federal Government Spending Freeze TODAY

Today’s jobs report is yet another reminder of how much families and small businesses are hurting. Their savings are evaporating, their job prospects are weakening, and their costs of living are rising. Consequently, they are being forced to make difficult budget decisions each and every day.

Isn’t it time for Washington to make some tough budget choices as well?

For the last several weeks, as the $410 billion “omnibus” spending bill has made its way through Congress, House Republicans have been calling for a spending freeze for the remainder of the fiscal year, which ends in September. After all, if American families are making difficult choices about how to cut their family budgets, shouldn’t Congress and the Administration do the same?

During today’s debate on a continuing resolution to keep the federal government running until early next week – a resolution that’s necessary while congressional Democrats determine exactly how they plan to enact the $410 billion monstrosity – House Republicans will offer a simple, straightforward federal spending freeze as a motion to recommit proposal.

What does the spending freeze mean? For starters, it means taxpayers won’t be forced to bankroll the some 9,000 unscrutinized earmarks loaded into the omnibus spending bill. It also means Americans won’t have to shoulder the financial burden of the largest discretionary spending hike since the Carter Administration (save for a brief increase after the September 11 terrorist attacks). It would simply keep the federal government running for the rest of the fiscal year without the massive spending increases Washington Democrats are seeking....
http://republicanleader.house.gov/News/DocumentSingle.aspx?DocumentID=113593

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House Passes ALFA-Supported National Silver Alert Bill

/PRNewswire-USNewswire/ -- The U.S. House of Representatives passed legislation this week backed by the Assisted Living Federation of America to help law enforcement quickly locate missing seniors.

The National Silver Alert Act (H.R. 632), authored by Congressman Lloyd Doggett (D-TX), passed the House on a voice vote.

"We commend Congressman Doggett for his leadership. This legislation will help protect seniors living with Alzheimer's Disease and other forms of dementia," said ALFA President & CEO Richard P. Grimes.

The legislation creates a voluntary national system to search for missing seniors patterned on the Amber Alert program which is used to find missing children. Under the bill, a new Silver Alert Coordinator at the Department of Justice will consult with other federal agencies to develop best practices for Silver Alert programs. The bill authorizes up to $10 million in state grants to develop and maintain Silver Alert programs.

"When it comes to the safety of missing seniors, there is no silver bullet, but one meaningful way of helping is through the National Silver Alert," said Rep. Lloyd Doggett, a senior member of the House Ways and Means Committee, in a press release. "As more Americans approach their golden years, National Silver alert can provide some reassurance. Reuniting missing seniors with their families requires a rapid, united response. What's missing from current efforts is sufficient federal support-this bill closes that gap."

ALFA is an original endorsing organization of the National Silver Alert Act. According to the Alzheimer's Foundation, more than 5 million Americans currently suffer from Alzheimer's disease, and approximately 3 million will wander away at some point. Wandering is a symptom of the disease.

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Pelosi and Spratt Statement on New Director of the Congressional Budget Office

/PRNewswire-USNewswire/ -- Speaker Nancy Pelosi and House Budget Committee Chairman John Spratt today announced their support for Dr. Douglas W. Elmendorf to become Director of the Congressional Budget Office. Under the Budget Act, the Director is appointed by the Speaker of the House and the President Pro Tempore of the Senate, after considering recommendations from the House and Senate Budget Committees. By custom, the House and Senate alternate in taking the lead role on the CBO Director's selection; this time it is the House's turn. Chairman Spratt stated that he will convene the Budget Committee and ask it to recommend Dr. Elmendorf while Speaker Pelosi announced her intention to name him to the position.

"In consultation with bipartisan Congressional leaders, it is my intention to move forward on the appointment of Dr. Doug Elmendorf as the new Director of the Congressional Budget Office," Speaker Pelosi said. "Dr. Elmendorf possesses a broad base of experience, having worked in all of the critical federal agencies which implement and oversee national economic policy: Treasury, the Federal Reserve, and the Council of Economic Advisers plus the Congressional Budget Office. He has the intellect, experience and integrity to serve the Congress in this critical position and shares our commitment to controlling deficits."

"We undertook an aggressive search process for this position and interviewed a number of outstanding candidates," said Chairman Spratt. "Doug Elmendorf has a superb macroeconomic background with particular expertise in housing and financial market issues, which will be critically important when he is advising the Congress on proposals to tackle our economic crisis. Given the state of our economy, I hope the House and Senate Budget Committees can move forward quickly in the new year to make our statutory recommendation."

"I am very pleased to join House Budget Committee Chairman Spratt in recommending Douglas Elmendorf to be the next Director of the non-partisan CBO," Senate Budget Committee Chairman Conrad said. "Dr. Elmendorf is one of our nation's leading economists. He will bring a wealth of knowledge and experience to this post."

Senate President Pro Tempore Robert C. Byrd said, "The operation of the government - to enforce our laws, to serve our people, to protect our liberties - depends upon the Congress providing the funds necessary to do so. So it is imperative that we have at the helm of our independent Congressional Budget Office an individual who will not only review the budget submitted to the Congress by the President, but will also advise the members of Congress about how to best establish spending parameters as we craft a budgetary framework for the next fiscal year and beyond. In my capacity as a member of the Budget and Appropriations Committees and as President Pro Tempore of the United States Senate, I look forward to working with Dr. Elmendorf in these endeavors."

Dr. Douglas W. Elmendorf, an economist with a Ph.D. from Harvard, is currently Director of the Hamilton Project at the Brookings Institution, has taught at Harvard, worked at the Congressional Budget Office, the Federal Reserve, and served during the Clinton Administration at the Council of Economic Advisers and at the Treasury Department.

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