Heritage Foundation’s Morning Bell: Dead Legislation Walking

Dead Legislation Walking

Another day, another stream of health care fantasy from the White House. A quick look at two health care events from yesterday, one in Glenside, Pennsylvania, and the other in Tawas City, Michigan, clearly exposes the yawing gap between the Obama administration’s health care rhetoric and cold hard legislative reality. First in Glenside, President Barack Obama turned up the volume on his already tired “final push” for health care reform. In addition to the usual litany of false claims about the legislation in Congress (in fact, you don’t get to keep your doctor, it isn’t paid for, it doesn’t reduce costs) President Obama also repeated his new line from his doctors-in-lab-coats address last week:

We have now incorporated almost every single serious idea from across the political spectrum about how to contain the rising cost of health care … Our cost-cutting measures mirror most of the proposals in the current Senate bill…

But, as we pointed out last week, there is one not-so-minor difference between the Senate bill and the President’s new proposal: the Senate bill actually exists. Now, Democrats may be telling their conservative counterparts that they will have reconciliation legislative text in front of the Budget Committee by tomorrow, but don’t hold your breath. The “fixes” that the White House is promising wavering House Democrats they will make all sound easy at first glance: 1) scaling back the tax on high-end health insurance policies; 2) closing the Medicare D loophole; 3) boosting insurance subsidies; 4) increasing Medicaid payments; and 5) fixing the Cornhusker Kickback. But when you take a second look, you see that all of these “fixes” will cost more money. Just look at the Cornhusker Kickback which the President chose to address, not by taking away Nebraska’s special Medicaid payments, but by extending those extra Medicaid payments to every state! Every single item in the President’s proposal either increases spending or reduces new revenues. And he didn’t put forward any way to pay for them. If passing health reform were as easy as giving away free candy, Obamacare would be law already. Finding a way to pay for all these fixes is going to be just as difficult as every earlier effort to pay for this bill. So don’t expect any solutions anytime soon.

And we haven’t even mentioned “abortion” yet, which brings us to Tawas City where Rep. Bart Stupak (D-MI) hosted his own health care townhall. Now the Associated Press headline may read “Stupak: Health bill abortion fight can be resolved” but then the AP actually reports “Rep. Bart Stupak said he expects to resume talks with House leaders this week…” In other words, there is no agreement yet. And what kind of timeline is Stupak looking at for such an agreement? WJRT reports: “[Stupak]’s confident a bill will pass sometime this year.” “Sometime this year” is a bit longer of a timeframe than the White House deadline of next Thursday. But even more importantly, look at the process Stupak suggests for final passage: “According Stupak, until the House and the Senate bills and the president’s proposals become one piece of legislation, health care will remain in limbo.” Considering that everyone agrees that abortion cannot be fixed in reconciliation, Stupak’s position is a total rejection of the White House’s current plan to have the House pass the Senate bill now on the promise that the Senate might come back and try and fix it sometime in the future. Stupak clearly wants “one piece of legislation,” and the only way to accomplish that is to scrap the current Senate bill and start over.

In the meantime, legislative “limbo” has not been kind to the Senate bill. Every day seems to bring news of yet another yes vote switching to undecided or no vote. Just yesterday, former-yes votes Reps. Michael Arcuri (D-NY), Dan Maffei (D-NY), Bill Owens (D-NY) and Dan Lipinski (D-IL) all confirmed they were either now undecided or would vote no. And Rep. Artur Davis (D-AL), who voted no the first time, said he would suspend his campaign for Governor just so he could come back to Washington to vote against Obamacare again. The President can travel the country talking about an up-or-down vote for “our proposal” all he wants, but the reality is he simply doesn’t have the votes in the House for the only piece of health care legislation that actually exists.

Heritage Foundation’s Morning Bell: No Votes Until the People Speak

No Votes Until the People Speak

On March 5th of last year, firefighter Travis Ulerick, of Dublin, Indiana, introduced President Barack Obama at a White House summit on health care. Upon hearing the first rumblings of dissent about the President’s plan, Ulerick tells USA Today he thought at the time: "I definitely think it’s going to have to be a huge consensus." It’s now 12 months later, and the only consensus that exists among the American people is strong opposition to the President’s health care plan.The White House, however, is now completely uninterested in establishing a consensus for their health care plan before they jam it through Congress. Today, in a speech from the White House, President Barack Obama will urge Congress to move swiftly to pass his health care plan by implementing a legislative tactic that can be used to pass legislation that has failed to gain broad support among the American people. It’s known as reconciliation.

Reconciliation has been used in the past, but only for procedural reasons, not because the underlying policy change was unable to muster 60-vote support. So, for example, the 1996 welfare reform law signed by President Bill Clinton was passed through reconciliation, but it also ended up getting 78 votes in the Senate (28 of them from Democrats). President Ronald Reagan also passed seven bills through reconciliation, but every single one of those bills passed through a Democratically-controlled House and won Senate votes from both parties. Never has reconciliation been used to pass any bill on purely partisan lines.

In an attempt to provide some political cover for his nakedly-partisan health care push, President Obama released a letter yesterday identifying "four policy priorities" that "I am exploring." Specifically he is "open" to: 1) random undercover investigations of health care providers that receive reimbursements from Medicare and Medicaid; 2) $50 million in cash for states that reform medical malpractice laws in ways the White House approves of; 3) increased spending on Medicaid; and 4) language that clearly allows Health Savings Accounts (HSAs) to qualify as health insurance.

The White House has not yet released any legislative language for any of these "policy priorities." In fact, his letter does not even promise that whatever legislation the White House does eventually offer will contain language on each of these issues. He only says he is "exploring" the issues. This is beyond a sham of bipartisanship. Details matter. The American people must be allowed to see real legislative language and they must be allowed the time to read and comment on it before any votes are taken.

Most importantly, simply adding so-called conservative ideas to the bill does not change the fundamental direction of the proposal. The bills before Congress, including the President’s new additions, would still result in a massive shift of power over health care financing and delivery of care to Washington politicians and bureaucrats. The public has spoken, and it does not want a federal take over of health care.

Julia Denton of Yorktown, Virginia, another of the Obama administration’s hand-picked March 5 health summit attendees, tells USA Today: "The legislation as proposed is so long and tough to read that people are afraid of it. Health care is such a highly personal issue. I cannot see how anyone will win if unpopular reforms are forced through over vigorous opposition." Denton is 100% correct. The American people should not have unpopular health care reform forced down their throats in the face of strong bipartisan opposition. At a bare minimum they should have the opportunity to see actual legislation from the White House and be allowed to speak to their members about it while they are home in their districts over Easter break.

Conservatives should continue to press the Administration and leaders in Congress for bipartisan solutions that are based on elements of common ground, including letting states take the lead on health reform, tackling the tax treatment of health insurance, sensible insurance market reforms, and an honest commitment to fixing existing health care programs that the government already controls.

For real bipartisanship to work, the President must set aside the current proposals that are based on consolidating power over health care in Washington and instead embrace solutions that would give individuals and families more control over health care dollars and decisions. Simply adjusting the magnitude of the existing proposals or adding so-called conservative provisions does not change this fundamental direction.

Heritage Foundation’s Morning Bell: The Edifice Falls

The Edifice Falls

Having failed to convince the country that we should reorder one-sixth of our economy (health care) in one fell swoop, liberals in the Administration and Congress are now doubling down and moving on to the next big thing. This time it’s the transformation of everything, through climate legislation. One could almost stand agape, admiring the boldness of the overreach, were not so much prosperity at stake.

The latest attempt to force the U.S. economy to turn away from readily available, affordable fuels and leaving it to the tender mercies of untried, experimental and expensive technologies is a bipartisan effort by Sens. John Kerry (D-MA), Lindsey Graham (R-SC) and Joseph Lieberman (I-CT). A legislative package from them, according to The Washington Post on Saturday, would individually cap how much traditional energy the main pillars of the American economy would be able to use. This would of course cripple our economy and threaten our prosperity. Any doubts about how broad and deep this effort is are dispelled by reading the following paragraph in the Post:

According to several sources familiar with the process, the lawmakers are looking at cutting the nation’s greenhouse gas output by targeting, in separate ways, three major sources of emissions: electric utilities, transportation and industry.

The reason the Senators could not act through their preferred vehicle, a “cap-and-trade” scheme that would put an across-the-economy ceiling on the use of traditional sources of fuel such as coal, oil and natural gas—above which companies using these fuels would have to pay for extra rights—is that the whole edifice of global warming is now falling apart.

It is collapsing with such rapidity that it is worth pausing from time to time to take stock.

The foundations of such edifice rest on a single assumption. This hypothesis—one that drove many people, even some reasonable ones, to contemplate upending the world as we know it — is that that traditional fuels will have cataclysmic consequences on the environment because they emit gases that make the world too hot.

The authority to turn this assumption into fact rested largely on a U.N. document - the Intergovernmental Panel on Climate Change’s 2007 report - which declared climate change “unequivocal” and its man-made origin “very likely.” The purpose of the IPCC report was to turn hypothesis into fact.

The reason Sens. Kerry, Graham and Lieberman had to turn away from cap-and-trade, and target industries individually, is that the idea of an iron-clad scientific consensus is now being revealed to be a bit, shall we say, exaggerated. The IPCC’s turning of hypothesis into fact now looks less like the scientific process and more like the magician you paid $50 an hour to pull flowers out of hats at your daughter’s birthday.

The first scales began to come off the global warming edifice in November, when emails from the University of East Anglia in the UK revealed how scientists at that key global research center had tried to suppress the opinion of peers who dissented from their view and hid evidence that countered the theory of man-made global warming.

Then the U.N.’s Copenhagen summit that was supposed to produce a global agreement to replace the expiring Kyoto Protocol fell apart in December, with the key countries refusing to hobble their own economies for the sake of science that was less and less there.

Then, last month it started to become clear that the 2007 IPCC report was more hollow than hallowed. Its claims that half the Netherlands is below sea level was off by a factor of two. Ditto for the outlandish fear-mongering that the glaciers of the Himalayas would melt by 2035. The IPCC was forced to admit that, actually, its projections were that that would happen by 2350. Oops!

Then last Friday, the news pages of The Wall Street Journal published yet one more devastating story on the IPCC and its hapless chairman, Rajendra Pachauri. The front page story detailed how inconclusive science, political pressure and shoddy administration all led to the Cassandra-like pronouncements of the IPCC report. Imagine that: politicians putting pressure on scientists to come up with theories that would vastly add to their regulatory and taxing powers.

Things have gotten so desperate that Al Gore himself had to come out of seclusion and pen a piece for The New York Times. On Saturday he implored readers that all these cascading events didn’t amount to a hill of beans. The article was vintage Gore. Let’s say it was not restrained. Here’s Gore on what will happen if we fail to act now:

Our grandchildren would one day look back on us as a criminal generation that had selfishly and blithely ignored clear warnings that their fate was in our hands.

The former Vice President and failed presidential candidate was so exercised he even took a jab at FOX, apparently blaming it for the troubles global warming is experiencing: “Some news media organizations now present showmen masquerading as political thinkers who package hatred and divisiveness as entertainment.”

Alas for Gore, Pachauri, et al., the climate alarums are working less and less not because of FOX, but because the alarmists overreached. Even an embarrassed U.N. was forced to announce Saturday that an independent board of scientists will be appointed to review the workings of the IPCC.

Unfortunately, climategate and IPCCgate have not put a dent on the Obama Administration’s plan to (mis)use the Environmental Protection Agency to regulate CO2, and thereby the companies that power our nation. Its Administrator Lisa Jackson was out in front of Congress last week again repeating the same shibboleths on a scientific consensus on global warming. This should make us all wonder if stopping global warming really was ever the end game.

As for Sens. Kerry, Graham and Lieberman, their reaction is to slap carbon controls on individual sectors of the economy separately, instead of setting a national target through cap-and-trade. The foundations for doing cap-and-trade have been torn asunder. Our research shows that cap-and-trade would be a $1.9 trillion tax on businesses over eight years, more expensive than the Vietnam War, Hurricane Katrina or the New Deal. But taxing the different pillars of our economy individually would be just as economically suicidal.

Sen. Kerry told the Post last week about his legislative effort, “What people need to understand about this bill is this really is a jobs bill, an economic transformation for America, an energy independence bill and a health/pollution-reduction bill that has enormous benefits for the country,” Kerry said. Notice he said nothing about global warming or climate change, the reason we were supposed to take this long walk off a short pier. Notice also he didn’t say it was about handing the political class the reins of the private economy. Kerry, Graham and Lieberman want electric power to be first on the economic chopping block. Previous analysis of similarly severe carbon cuts project electricity prices will rise over 70 percent, even after adjusting for inflation. Not only is this a nightmare for household utility bills, the higher cost will hit consumers over and over since businesses must pass on their higher costs as well.

Someone Needs to Tell the President His Health Care Plan is Dead

The day before yesterday’s White House health care summit, Sen. Kent Conrad (D-ND) told reporters: “The only way this works is for the House to pass the Senate bill and then, depending on what the package is, the reconciliation provision that moves first through the House and then comes here.” When Conrad was reminded that Speaker Nancy Pelosi (D-CA) has repeatedly insisted that the House will not pass the Senate bill until the Senate passes a second bill that fixes the first, Conrad replied: “Fine, then it’s dead.”

This was the dynamic that President Barack Obama was trying to alter with his eventually-seven-hour meeting. And judging by pretty much every major news outlet, he completely failed. Rep. Jason Altmire (D-PA), who is one of the 39 House Democrats that the White House needs to switch from a “no” the first time around to a “yes” this time, told The New York Times: “I don’t see very many at all who voted no who are going to switch their votes unless there are substantial changes in the bill.”

And that reality is already spreading throughout Capitol Hill. Politico reports that while Democrats were hoping to pass Obamacare by Easter, “there were signs Thursday night that the schedule was slipping. One Democratic lawmaker involved in the negotiations, who asked not to be identified to speak candidly of the process, said the party would not, in fact, start down the path of reconciliation next week.”

That is some rare great news for the American people. As Rep. Paul Ryan (R-WI) ably explained yesterday, Americans do not want Washington dictating their health care decisions to them, and that is exactly what Obamacare would do:

The difference is this: We don’t think all the answers lie in Washington regulating all of this. … if the National Restaurant Association or the National Federation of Independent Business, on behalf of their members, wants to set up an association health plan, we think they’ll probably do a good job on behalf of their members. Let them decide to do that instead of restricting insurance competition by federalizing the regulation of insurance, and by mandating exactly how it will work, you make it more expensive and you reduce the competition among insurers for people’s business. We want to decentralize the system, give more power to small businesses, more power to individuals, and make insurers compete more. But if you federalize it and standardize it and mandate it, you do not achieve that. And that’s the big difference we have.

President Obama bristled at this analysis, responding: “Can I just say that, at this point, any time that a question is phrased as, “Does Washington know better,” I think we’re kind of tipping the scales a little bit there since we all know that everybody is angry at Washington right now.”

The President seems to understand that the American people do not want bureaucrats in Washington controlling their health care decisions, but then he seems completely oblivious to the fact that increasing bureaucratic control at the expense of every American’s ability to make their own choices is exactly what his plan does.

The American people know this. That is why support for the President’s health care plan has been steadily declining. That is why the most recent CBS News/New York Times Poll shows 53% of Americans say the United States cannot afford to fix health care at this time. It is why 52% of Americans tell Gallup they do not want to see Obamacare pass with only 50 Senators in support (Vice President Joe Biden casting the 51st vote). That is why 59% of registered voters tell Fox News they want the President to start over.

And he should. If the President truly wants to enact historic bipartisan and lasting health care reform, he needs to admit this version of Obamacare is dead. In 2011, when there is likely to be a more centrist Congress in place, then Obama should come back and start again.

Morning Bell: The White House Learned Nothing from Massachusetts

In July of this year, the American people were mostly undecided about Obamacare: equal numbers opposed and supported the health care bills that the White House was shepparding through Congress. But then August happened and informed Americans turned out at townhalls across the country to express their strong disapproval of Obamacare. The larger American public noticed and and pluralities of the American people began to oppose Obamacare. The White House concluded they had a “communications problem” so they scheduled a prime time speech in front of a rare Joint Session of Congress. But the President’s speech arrogantly dismissed the concerns of the American people and after a brief uptick in support (from the low 40s to the mid 40s), opposition to the President’s plan grew.

Then in November, liberals lost governor’s races in New Jersey and Virginia as opposition to President Obama’s signature policy priority inched towards 50%. Again the White House concluded that nothing was wrong with their policy agenda and they dismissed their setbacks in two states that had voted for President Barack Obama as local elections with weak candidates. Instead of rethinking their policies and procedures the White House doubled down and pushed for a speedy passage of Obamacare with as little debate as possible. Over the next two months the White House bought support for their health care plan with the Louisiana Purchase, the Cornhusker Kickback, and big labor tax breaks. And their behind-closed-doors, backroom-deal tactics almost worked … until Massachusetts happened.

Just like in August and November, Sen. Scott Brown’s (R) upset win over Attorney General Martha Coakley (D) took the Obama administration completely by surprise. Again, the White House concluded they had a “communications problem” so this time they scheduled a six-hour health care summit that is supposed to take place at The Blair House, across the street from the White House, this Thursday. But like everything else that has come out of the Obama administration during this health care debate, the President’s effort to “seek common ground” at the summit is completely disingenuous. The New York Times reported this past Friday that the White House is drafting, and will release this morning, a final health care bill they expect Congress to pass quickly. And this bill is specifically designed to pass without any conservative support:

Democratic officials said the president’s proposal was being written so that it could be attached to a budget bill as a way of averting a Republican filibuster in the Senate. The procedure, known as budget reconciliation, would let Democrats advance the bill with a simple majority rather than a 60-vote supermajority.

And a “simple majority” does not mean they need 51 Senators. The nuclear option the White House is now pushing, reconciliation,  only requires the Obama administration to muster 50 votes before Vice President Joe Biden can cast a tie breaking vote in favor of a government takeover of health care.

And make no mistake, a government takeover of health care is exactly what Obamacare is. Just last night the White House revealed that one new feature of their legislation will be to give the federal government sweeping new authority to set prices for health insurance. This is on top of the sweeping new authority that Obamacare already grants the federal governemnt to micromanage the coverage details of every single health insurance policy in the country. And since the nuclear option only requires 50 Democratic Senators for passage, Majority Leader Harry Reid (D-NV) has signaled that an outright government run health insurance company, the public option, will also be included in the final bill.

There is a reason that the longer this health care debate has dragged on, more and more Americans have become solidly against Obamacare: the plan has been exposed as a welfare state takeover of our health care sector that can only be passed by the most partisan and venal tactics. If the President was capable of listening to the American people, and learning from August, November, and Massachusetts, then he would abandon the legislative disasters still pending in the House and Senate and start over. That is what the American people want.

Global Warming - Is There Anything It Can’t Do?

Tomorrow, NBC (which is owned by General Electric) will begin broadcasting the 2010 Winter Olympics from Vancouver, Canada. Only two events are scheduled for the opening day (alpine skiing and ski jumping), but even those events will be difficult to pull off. Why? There is no snow in Vancouver. And International Olympic Committee President Jacques Rogge knows exactly what is to blame: global warming. Rogge tells AFP: “Global warming of course is a worry, it is a worry for the entire world.”

Considering that NBC/GE  has already received billions in TARP bailout cash from the Obama administration and is actively lobbying for a global warming energy tax bill so that it can receive billions more in government green-energy subsidies on top of the millions it already receives, we are sure to hear lots from NBC announcers about how the lack of snow in Vancouver is just another reason Washington needs to act now to stop global warming.

But back in Washington, the global warming scare-monger crowd is singing a slightly different tune. Facing record snowfalls, Time is reporting: “Snowstorm: East Coast Blizzard Tied to Climate Change.” But do not confuse this headline with Robert F. Kennedy Jr.’s column from two years ago claiming that global warming was causing “anemic winters” in the Washington region.

No snow, too much snow. It does not matter to the enviroleft crowd. For them, global warming always is to blame. That is the whole reason the movement made a deliberate decision earlier this decade to stop calling it “global warming” and start calling it “climate change.” That way they could expand the universe of terrible things they could plausibly blame on global warming. One British citizen even maintains a comprehensive list of everything the enviroleft has tried to blame on global warming including: Atlantic ocean less salty, Atlantic ocean more salty, Earth slowing down, Earth spinning faster, fish bigger, fish shrinking, and (most importantly) beer better, beer worse.

The media are not the only ones complicit in the climate fear industry. The 2007 Nobel Prize-winning Intergovernmental Panel on Climate Change (which is the most prestigious scientific body charged with determining what is and is not settled science) has also been found to be cooking the books. In just the past year, the IPCC’s 2007 report has been exposed for overstating the science on glacier loss in the Himalayas, crop loss in Africa, Amazon rain forest depletion and damage from weather catastrophes.

Here is what we do know: the cap-and-trade system in Europe is completely failing to reduce carbon emissions; the cap-and-trade system proposed here in the United States would do nothing to affect global temperatures, but would do trillions of dollars of damage to the U.S. economy.

Something to think about while you shovel out your driveway today.

Is USA Today Serving the Goals of Al-Qaeda?

Yesterday, USA Today ran an editorial on the Obama administration’s handling of terrorism, writing: "Officials’ handling of Christmas Day attack looks like amateur hour." Graciously given the space to respond to this charge, Obama administration Deputy National Security Adviser for Homeland Security and Counterterrorism John Brennan replied: "Politically motivated criticism and unfounded fear-mongering only serve the goals of al-Qaeda." Got that? The Obama administration considers any criticism of its national security policies, even from as benign a source as USA Today, as serving "the goals of al-Qaeda." And the problems with Brennan’s letter don’t end there: Interrogation Contradictions: First Brennan asserts that "Umar Farouk Abdulmutallab was thoroughly interrogated and provided important information." But just one sentence later Brennan admits: "The most important breakthrough occurred after Abdulmutallab was read his rights." So which is it? Was the first interrogation so thorough that no active and useful intelligence was lost, or did "the most important breakthrough" come over a month later, giving al-Qaeda a month’s head start? 

Coordination Contradictions: Brennan asserts "Senior counterterrorism officials from the White House, the intelligence community and the military were all actively discussing this case before he was Mirandized and supported the decision to charge him in criminal court." But this has been directly contradicted by the sworn testimony of National Intelligence Director Dennis Blair and FBI Director Robert Mueller. Someone is not telling the truth about a vital national security matter. Congress must investigate. False Miranda History: Brennan writes: "Would-be shoe bomber Richard Reid was read his Miranda rights five minutes after being taken off a plane he tried to blow up. The same people who criticize the president today were silent back then." But Brennan leaves out the fact that Reid was arrested in December 2001, before the military detention system was in place. This is like accusing George Washington of treason for not using machine guns against the British. He didn’t use them because they didn’t exist yet! Military vs. Civilian Custody: Brennan writes: "There is little difference between military and civilian custody, other than an interrogator with a uniform. The suspect gets access to a lawyer, and interrogation rules are nearly identical." That is perhaps the most fatuous sentence in Brennan’s op-ed. The roles of lawyers in the civilian and military system are completely different. In military custody, detainees are not read their Miranda rights and their lawyer’s purpose is to challenge his detention as an enemy combatant. Under civilian custody, the suspect is read his Miranda rights and his lawyer is there to make sure he does not say anything that will incriminate himself. The situations are completely different, not "nearly identical." Military vs. Civilian Trials: "Cries to try terrorists only in military courts lack foundation." The false choice of all civilian or all military trials is what lacks foundation. There are hundreds of witnesses who stand ready to testify and send Umar Farouk Abdulmutallab to jail. We do not need his testimony to be admissible. There is nothing stopping the administration from questioning Abdulmutallab as an enemy combatant without reading him Miranda rights and then trying him in civilian court later. Last month, The Washington Post editorial board, who has endorsed every single Democratic Presidential candidate since 1988, wrote:

UMAR FAROUK Abdulmutallab was nabbed in Detroit on board Northwest Flight 253 after trying unsuccessfully to ignite explosives sewn into his underwear. The Obama administration had three options: It could charge him in federal court. It could detain him as an enemy belligerent. Or it could hold him for prolonged questioning and later indict him, ensuring that nothing Mr. Abdulmutallab said during questioning was used against him in court. It is now clear that the administration did not give serious thought to anything but Door No. 1. This was myopic, irresponsible and potentially dangerous.

Myopic. Irresponsible. Potentially dangerous. That is a spot-on assessment of the Obama administration’s knee-jerk Miranda-rights-for-everyone counterterrorism policy. And admitting as much would be the first step to defeating, not supporting, al-Qaeda.

When Did the American People Elect Eric Holder Commander in Chief?

Following weeks of strong bipartisan criticism of their handling of terror trials and detainees, Attorney General Eric Holder released a letter yesterday defending the Obama administration’s criminal justice system approach to prosecuting the war against al-Qaeda. Defending his administration’s handling of the Flight 253 terrorist, Holder wrote: “I made the decision to charge Mr. Abdulmutallab with federal crimes, and to seek his detention in connection with those charges, the knowledge of, and with no objection from, all other relevant departments of the government.”

First, this statement directly contradicts the sworn Congressional testimony of Director of National Intelligence Adm. Dennis Blair who, when asked by Sen. Susan Collins (R-ME) under oath if he had been consulted about how Abdulmutallab should have been interrogated, responded: “I was not consulted.” Under intense political pressure from the White House, Blair has since said his remarks were “misconstrued.” But his politically-pressured retraction was not made under oath. His initial statement was. At the very minimum, Congress must demand that both Holder and Blair testify under oath to settle this contradiction.

But more importantly, both the personal pronouns and the underlying substance of Holder’s letter speaks volumes about this administration’s approach to protecting the American people. Holder wrote yesterday: “Neither advising Abdulmutallab of his Miranda rights nor granting him access to counsel prevents us from obtaining intelligence from him. On the contrary, history shows that the federal justice system is an extremely effective tool for gathering intelligence.” Holder appears to be arguing that reading suspects their Miranda rights is a great way to get them to talk. But as American University law professor Kenneth Anderson notes: “The point of offering suspects the Miranda warning and associated rights is not in order to persuade them to talk, but in order to make sure they know they don’t have to and, if they have much in the way of brains, won’t.” Read the rest of this entry »

Heritage Foundation’s Morning Bell: A Budget for a European Welfare State

A Budget for a European Welfare State

Last Friday, President Barack Obama accepted an invitation from House Republicans to speak and answer questions at the Republican House Issues Conference. During the Q&A period, Rep. Paul Ryan (R-WI) pressed the President: The spending bills that you’ve signed into law, the domestic discretionary spending has been increased by 84 percent. You now want to freeze spending at this elevated level beginning next year. … So my question is, why not start freezing spending now?" President Obama replied: "The fact of the matter is, is that most of the increases in this year’s budget, this past year’s budget, were not as a consequence of policies that we initiated but instead were built in as a consequence of the automatic stabilizers that kick in because of this enormous recession. So the increase in the budget for this past year was actually predicted before I was even sworn into office and had initiated any policies. … Now, the reason that I’m not proposing the discretionary freeze take into effect this year — we prepared a budget for 2010, it’s now going forward — is, again, I am just listening to the consensus among people who know the economy best. And what they will say is that if you either increase taxes or significantly lowered spending when the economy remains somewhat fragile, that that would have a de-stimulative effect and potentially you’d see a lot of folks losing business, more folks potentially losing jobs. That would be a mistake when the economy has not fully taken off." First of all, note that the President never contradicted Rep. Ryan’s factual claim that discretionary spending under President Obama has increased 84%. But more importantly, notice how eagerly the President attempts to make it seem like he had no choice in the matter by shifting the blame for our nation’s deficits to other administrations. Earlier in that same Q&A, the President said he did not want "to re-litigate the past." Fair enough. Our focus should be on our future policies, and the budget the Obama administration released yesterday is a great place to start. Heritage Foundation fellow Brian Riedl has completed a quick analysis of the budget released yesterday, and this is what President Obama’s policies would do:

  • Permanently expand the federal government by nearly 3 percent of gross domestic product (GDP) over 2007 pre-recession levels;
  • Raise taxes on all Americans by more than $2 trillion over the next decade (counting health care reform and cap and trade);
  • Raise taxes for 3.2 million small businesses and upper-income taxpayers by an average of $300,000 over the next decade;
  • Leave permanent deficits that top $1 trillion in as late as 2020; and
  • Double the publicly held national debt to over $18 trillion.

Riedl adds: "Before the recession, federal spending totaled $24,000 per U.S. household. President Obama would hike it to $36,000 per household by 2020 — an inflation-adjusted $12,000-per-household expansion of government." The deficit reduction measures proposed in the President’s budget are all more rhetoric than action. The Pay-as-You-Go provisions and spending freeze cover such tiny fractions of the budget and are so filled with loopholes that they are destined to be ineffectual. The President’s Deficit Reduction Commission is compromised by a lack of legislative "fast track" protections, a deadline that sends recommendations to a lame duck Congress, and a complete lack of any public hearings that allow for Americans’ input. Commenting on the President Obama’s budget, Rep. Ryan tells National Review Online: "This budget presents a choice of two futures. … This budget is about more than specific programs or policies. It is really about the American idea, and whether we want to move towards a European-style welfare state." Or as then-California Gov. Ronald Reagan put it in a slightly different context over 40 years ago: "This is the issue of this election: Whether we believe in our capacity for self-government or whether we abandon the American revolution and confess that a little intellectual elite in a far-distant capitol can plan our lives for us better than we can plan them ourselves."

Heritage Foundation’s Morning Bell: A Speech Only Washington Could Love

A Speech Only Washington Could Love

The more things change, the more things stay the same. A little over a year ago, President Barack Obama came to office expecting to pass a “big bang” of policy changes all in the first year: health care, cap-and-trade, and banking regulation. With the big-bang strategy officially a failure, President Obama’s State of the Union address last night desperately tried to keep all of these legislative efforts alive while also acknowledging that the country has firmly rejected his policy agenda.

The result was an incoherent mess of promised tax cuts for small businesses coupled with the threat of tax hikes from his health care and energy proposals; more federal money to encourage banks to lend to businesses, coupled with new taxes on banks and individuals; the continued waste of his $862 billion stimulus plan and $2 trillion in new health care spending, coupled with a delayed and temporary spending freeze. As one of the longest State of the Unions in the past 45 years, we cannot cover everything here. But our crack team of Heritage experts did hit almost every issue last night, and you can read their full reactions here. Highlights include:

The New Hire Tax Credit
The tax credit for new hires is another recycled idea from Washington. Last tried in the 1970s, the tax credit proved to be a windfall for big businesses that were planning to hire anyway. Small businesses, the engine of job growth, did not use the tax credit largely because they were unaware of it and did not understand how to take advantage of the credit. The jobs tax credit proposal will likely also delay hiring since businesses that understand the tax credit now face an incentive to postpone hiring decisions to take advantage of the tax credit. Extending the Bush tax cuts and undoing the heavy taxes in the health care legislation is a better step to job creation than this tax credit.

The Bank Tax
President Obama tonight called for a new tax on banks and other large financial institutions, “a modest fee,” he said, “to pay back the taxpayers who rescued them in their time of need.” That sounds great, but in truth, the new tax would do nothing of the kind. Mr. Obama knows that almost every major bank has paid-back their bailout funds, with interest. Taxpayers made substantial profits on those repayments. On the other hand, most of the companies that still owe billions to taxpayers, including Fannie Mae and Freddie Mac, and auto firms GM and Chrysler, would not be subject to the tax. In short, Mr. Obama would tax those that have paid back taxpayers and exempt those who have not.

The Spending Freeze
Obam’s spending freeze would apply to a narrow sliver of spending (somewhere around 1/8th of total spending) and at best, savings would be less than one percent of the total budget. Moreover, it explicitly exempts the very entitlement programs driving future deficits. At a time when the deficit is $1.4 trillion and we face a sea of even worse red ink as far as the eye can see, such a freeze is tantamount to bailing out – forgive the double entendre – the Titanic with a dixiecup. And it would start next year, conveniently after the elections. Freezing spending is the right idea, but this freeze falls short of real action.

Energy Production
His calls for new nuclear power, offshore oil and gas exploration, and other new energy technologies are certainly welcome. The problem is that his program of subsidies, special tax treatment, and government support will not work. While government programs can create jobs in specific sectors, the President ignores the evidence that these programs end up killing more jobs than they create. Spain has already gone down this road, and its experience should give the President caution. Between 2000 and 2008, the Spanish government spent $36 billion in taxpayers’ money on wind, solar and mini-hydro development. Each green job created cost on average $758,471.

Foreign Policy
Many around the world have expressed concern that a U.S. administration so focused on domestic priorities and troubles as the current one will be too inward-looking to be deeply engaged in the world. Judging by its placement in his list of priorities, foreign affairs did seem like an afterthought, briefly addressed. In Afghanistan, allied nations are hardly coming together to support the President’s surge — indeed French President Nicolas Sarkozy very publicly stated this week that he would not be contributing any more troops to the endeavor, this on the eve of the Afghanistan conference in London.

And the fight on terrorism has not, as stated, been advanced by the Obama administration — quite the reverse as the nation has become more vulnerable. Nor has the administration distinguished itself by its support for human rights in Iran — in fact it missed a critical moment to get involved during last summer’s uprisings against the Iranian regime. As for the President’s aspiration to control nuclear materials around the world, a goal to be reached through an international conference — that horse left the barn a long time ago.

In “Government’s End,” Jonathan Rauch writes: “Economic thinkers have recognized for generations that every person has two ways to become wealthier. One is to produce more, the other is to capture more of what others produce. … Washington looks increasingly like a public-works jobs program for lawyers and lobbyists, a profit center for professionals who are in business for themselves.” From complicated new tax credits that small business owners don’t have the time or expertise to take advantage of, to new energy, financial and trade regulations that only large corporations have the lawyers and lobbyists to take advantage of, every policy proposal in Obama’s speech last night is a boon for the lawyer/lobbyist economy in Washington and a hindrance to wealth-creating Americans everywhere. This was a speech only the entrenched interests in Washington could love.


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