Federal gas tax will not be raised, Lahood says

March 4, 2009

The Wall Street Journal reports:

Transportation Secretary Ray LaHood rejected increasing the gasoline tax to fix a worsening shortfall in funding for highways and mass-transit systems, saying the government should instead turn to ideas such as private investment and new tolls to raise money.

Mr. LaHood, a former Republican congressman from Illinois, said that even with $48 billion for transportation projects included in the economic stimulus bill, states would be forced to slash spending and construction jobs this year unless new funds emerge. Less money is available for such projects because the main revenue sources — taxes on gasoline and vehicle purchases — are declining amid a cutback in driving, a shift to fuel-efficient cars and slumping auto sales.

Last year, Congress transferred $8 billion into the Highway Trust Fund — the federal mechanism that channels fuel taxes into transportation projects — to ease the crunch. Mr. LaHood said Congress will face the same dilemma this year and beyond until a permanent fix is found.

Mr. LaHood dismissed the idea of raising the 18.4-cent federal tax on a gallon of gasoline, which hasn’t changed since 1993. Last week a congressionally chartered commission said Congress should consider raising the rate this year as it fashions a multiyear transportation bill that could cost $500 billion. The commission said the U.S. faces a $68 billion annual funding gap if nothing changes.

“If you talked to the people who served on this commission, they will tell you, rightly so, there is not enough money in the Highway Trust Fund to do what we want to do,” Mr. LaHood said. “With the economy the way it is right now, trying to propose a 10-cent-a-gallon increase in the gasoline tax is not going to fly anywhere in America, including Washington, D.C.”


Smart Grid backers have Obama’s ear

March 4, 2009

Big Oil, no more. The Smart Grid may be the big beneficiary of Obama’s energy policies:

Obama’s $787 billion economic stimulus bill includes $4.5 billion in funding for the so-called Smart Grid, an ambitious plan to modernize the country’s electric grid that many Obama contributors are helping to shape.

Among the companies with significant stakes in the Smart Grid are technology giants Google, Microsoft and IBM, whose employees were top donors — and, in some cases, advisers — to Obama’s campaign last year.

Workers at Microsoft, along with family members and other associates, gave more than $800,000 to Obama, while people connected to Google contributed nearly $784,000, according to the Center for Responsive Politics. And those with ties to IBM gave more than $517,000.

Executives at some of the companies also helped line Obama’s coffers. Google Senior Vice President and Chief Legal Officer David Drummond gave $4,600, and so did Robert Alan Eustace, senior vice president of engineering and research. At IBM, three senior officials gave either $2,300 or $4,600, and at Microsoft, two senior officials each gave $4,600. IBM’s Michael Parham also was an Obama campaign bundler, committing to raise $200,000.


GOP leaders fret that Steele may have been wrong choice

March 4, 2009

Politico reports that a serious of gaffes from its new party chairman have party leaders scratching their heads and wondering if a mistake might have been made in electing the former Lt. Governor of Maryland:

Steadily becoming a dependable punch line, Steele has brushed back Rush Limbaugh, threatened moderate Republican senators, offered the “friggin’ awesome” Louisiana Gov. Bobby Jindal some “slum love,” called civil unions “crazy” and promised more outreach to “urban-suburban hip-hop settings” via an “off the hook” public relations campaign.

He even threw a shout-out to “one-armed midgets.”

That’s in just 30 days on the job — and that’s just the PR part.

On the organizational side, Steele does not have a chief of staff, a political director, a finance director or a communications director. Last week, one of the two men sharing the job of interim finance director was forced to resign.

For now, “the fourth floor,” as the RNC’s executive suite is known, is being run by a pair of consultants.

“There’s frustration that there’s no discipline, no planning,” said a well-known Republican consultant. “He’s risking being overexposed by accepting every interview, which makes gaffes more likely.”


The Geography of a Recession

March 4, 2009

The New York Times provides this county-by-county map of unemployment rates across the country in supplementing its lead story today on the breadth of the recession:

nytimes-map

Ohio’s numbers are perhaps less disconcerting than they are elsewhere. Franklin and Hamilton Counties have unemployment rates of 6.1 and 6.2%, respectively, while Lucas and Cuyahoga Counties have struggled more to keep people employed.

nytimes-ohio


Obama’s continued repudiation of Bush

March 3, 2009

The Atlantic’s Ron Brownstein writes that President Obama is utilizing the “authority to repudiate” in everything from his budget to his foreign policy to his simple handling of the presidency.


GOP’s Rising Stars

March 3, 2009

With the national debate embroiling Republicans over who is the de facto leader of the GOP–Rush Limbaugh, Michael Steele, Newt Gingrich, or someone else–Politico reports that U.S. Attorney Generals are perhaps the most fertile ground for future party leadership.


Boehner’s job on the line in 2010

March 3, 2009

House Minority Leader John Boehner could be in trouble come the next round of Congressional elections.

Under his watch, Republicans have not only lost seats, they have lost some very important ones in Boehner’s backyard in Ohio. He has the highly ambitious Rep. Eric Cantor (R-Va.) just below him in the leadership, and it’s no secret there could be a big push to move Cantor up and Boehner out if the GOP loses more seats this time around.

This pressure has Boehner applying some pressure of his own — on his fellow Republicans.

Boehner is threatening to deny help to GOP members who fail to hit specific benchmarks for raising money, putting together effective campaign operations, hiring the right people and smartly managing their campaign resources.

If the members miss their metrics, GOP leaders will refuse to bail them out with last-minute infusions of cash from the National Republican Congressional Committee.

“Boehner and [Minority Whip] Eric Cantor are on board with this 110 percent,” said Rep. Mike Rogers (R-Mich.), who is running the program — called “Patriot” — for the GOP.


The global recession in a nutshell

March 2, 2009

Paul Krugman explains:

We’re suffering from a global paradox of thrift: around the world, desired saving exceeds the amount businesses are willing to invest. And the result is a global slump that leaves everyone worse off.

So that’s how we got into this mess. And we’re still looking for the way out.


Republicans concede budget will be hard to block

March 2, 2009

Congressional Republicans, bracing for a fight over the federal budget, are conceding they’ll have a limited ability to prevent passage of whatever Obama and the Democrats want.

The Democrats are expected to begin moving the budget through Congress this month with hopes of winning approval by early April. Congressional Republicans say it’s unlikely that they would be able to block the budget because they don’t have enough votes.

Congress follows special rules for approving the annual budget that make it hard for the minority party to block it. Senate rules requiring 60 votes to end debate are suspended. That requirement had made three Republican senators’ support for the stimulus bill crucial, even though Democrats enjoy large majorities in the House and Senate.


When must judge recuse self? SCOTUS to decide

March 2, 2009

The Washington Post reports on a Supreme Court case that could have a tremendous impact on courts across the country:

Hugh Caperton was born into the coal business, but for more than a decade he has spent more time in a courthouse than in a mine. The complex, intrigue-filled legal tale he will present to the Supreme Court this week was literally enough to spawn a suspense novel, but it boils down to this:

Caperton and his little coal company sued a huge coal company on claims that it unlawfully drove him out of business, and a jury agreed, awarding him $50 million.

That company’s chief executive vowed an appeal to the West Virginia Supreme Court — but first, he spent an unprecedented $3 million to persuade voters to get rid of a justice he didn’t like and elect one he did.

That justice provided the decisive vote in overturning Caperton’s multimillion-dollar award.

And the case raises profound questions about the way Americans elect their judges, the duty of judges to recuse themselves when the people who bankrolled their campaigns come before them and, even, the very meaning of judicial impartiality.

The facts are so compelling that John Grisham used them as a basis for his bestseller “The Appeal.” On opposing sides during oral arguments Tuesday will be two of the court’s most prolific and persuasive practitioners, former solicitor general Theodore B. Olson and Andrew L. Frey.

But the implications go far beyond West Virginia, energizing critics of the multimillion-dollar political campaigns that are now the norm in many of the 39 states that elect judges, where no-holds-barred television advertising has replaced the staid and polite debates of the past. Among the outpouring of supporters for Caperton are a number of unlikely compatriots — Wal-Mart siding with the Brennan Center for Justice at the New York University School of Law, for instance.