Health Care Bill Passes - Although Neither Side Likes the Bill

Rep. John Dingell, the longest serving House member in history, woke up early Thursday morning to catch the historic health care vote.

Afterward, the 83-year-old, 28-term congressman stood on crutches in the Senate halls and told reporters that lawmakers will have to accept a lot of what they don’t like in order for the bill to become law.

“It’s pretty clear to me, and I think pretty clear to all of you, that nobody is going to be happy with this,” Dingell said. “There are going to be a lot of surprises, some of them unpleasant, and we’re going to have to start on doing two things: one is setting up the administration and the other is perfecting the legislation as it proceeds.” - Politico Story

US Going Bankrupt - Passing Trillion $ Bills and Authorizing Bigger Debts

A $290 billion increase in the federal debt ceiling narrowly cleared Congress Thursday, giving Treasury just enough leeway to pay the government’s bills into February and setting the stage for a showdown over fiscal policy early next year.

Senate Republicans insisted that 60 votes be required for passage and then held back their own members in order to force as many Democrats as possible to walk the plank on what has never been a popular or easily-explained decision back home.

The same issue returns with a vengeance Jan. 20th when senators will be asked to vote on a still larger, long term debt increase within days of President Barack Obama’s new budget and State of the Union address.

Treasury’s daily statements this week indicate it is still about $65 billion under its current $12.1 trillion ceiling and conservatives argued that special measures could be invoked still to avert default over New Year’s. But with Congress leaving for the holidays, Senate Banking Committee Chairman Christopher Dodd (D—Conn.) said that failure to act would have been “catastrophic” for the U.S. internationally. And Senate Finance Committee Chairman Max Baucus (D—Mont.) said that payments to Social Security recipients were also at risk.

“The bottom line is we have no choice,” Baucus told his colleagues. “We have to approve it.” - Politico Story

Senate Plays with Numbers, Health Care will Increase Deficit by Billions

Republicans, emboldened by a new letter from the Congressional Budget Office, accused Democrats on Wednesday of "Bernie Madoff accounting" for double counting the savings from Medicare as a means to pay for the Senate health care bill.

As the Senate prepares for a crucial vote before final passage of a massive overhaul bill that Democrats argue will reduce the deficit by $132 billion over 10 years, Sen. Jeff Sesssions, R-Ala, said the nearly $500 billion in cuts to Medicare actually will add $300 billion to the deficit

"The real score on this legislation is that it would cause the deficit to increase, and not be a surplus as the president has promised," Sessions told Fox News. "And a lot members of our Congress have said I won't vote for this bill unless it's deficit neutral. It's not deficit neutral. It will add to the debt. That's clear today."

Sen. Judd Gregg, R-N.H., added, "This is Bernie Madoff accounting and it's an outrage."

The senators also spoke at a news conference just hours before the Senate was to take up a procedural vote before a final passage vote Thursday.

"I think it's a potential game changer," Sessions said.

"The seniors have been had and our kids our gonna get the bill," Gregg said. "We're talking here about double-counting, spending the same money twice in order to create a massive new entitlement that has nothing to do with seniors."

A spokesman for Senate Majority Leader Harry Reid claimed the CBO letter dealt explicitly with Medicare, not the overall short and long term budgetary impact of the legislation. But the spokesman did not address the accusation of double counting. - FOX News Story

Housing Market again Crashes, Recovery not here yet

Hopes for a strong recovery in the housing market were dealt a blow on Wednesday when the government said new home sales unexpectedly tumbled in November, taking their steepest decline since the darkest days of the recession amid uncertainty over the extension of a federal tax credit.

The Commerce Department said sales of new homes slumped 11.3% to an annualized pace of 355,000 units last month, surprising analysts who had predicted a rise of 6.2%. Further, the government lowered its estimate for October by 30,000 units to 400,000.

Supplies of new homes jumped from 7.2 months’ worth to 7.9 months.

It seems prospective home buyers were spooked by ambiguity over the extension of the federal tax credit for first-time home buyers, which happened after many contracts would have been signed.

November’s performance was a “hangover from the tax-credit-induced binge in the July thru October period," Peter Boockvar, market strategist at Miller Tabak, wrote in a note.

The surprise drop in new home sales was led by the South, which suffered a 21.1% decline. Sales in the West fell 9.2% and dropped 3.3% in the Northeast. On the other hand, new home sales in the Midwest soared 21.4%.

Meanwhile, prices continued to fall on an annual basis, with the median sales price of a new home in November sinking 1.9% to $217,400. However, prices were up 3.8% from October. - FOX Business Story

Democrats again backing ACORN

The beleaguered community organizing group ACORN properly spent all federal dollars it received in the past five years, according to a study by the nonpartisan Congressional Research Service (CRS).

The report, requested by House Judiciary Committee Chairman John Conyers, D-Mich., also found that no voters who were allegedly registered to vote improperly cast any ballots.

The report comes as the federal government and the California law enforcement officials are probing the Association of Community Organizations for Reform Now -- a group that President Obama worked with in the early 1990s.

The CRS said officials have probed ACORN 46 times.

Rep. Steve King, R-Iowa, has asked Conyers to hold hearings to scrutinize ACORN's activities but Conyers has declined.

ACORN came under fire in September when a series of undercover videos showed a couple posing as a pimp and prostitute receiving advice from ACORN employees on how to evade tax laws. offices.

The CRS report indicated that the filming may have violated laws in Maryland and California, where some of the taping was done. The CRS study says both states "appear to ban private recording of face to face conversations absent the consent of all the participants."

Congress has voted to strip ACORN of federal funding. But a federal judge ruled this month that the move was unconstitutional -- a decision that the Justice Department is appealing.

The CRS indicated that courts "may have sufficient basis" to rule that unconstitutional. The Constitution bans "bills of attainder," laws that specifically target one group or person. - FOX News Story

Obama Running Fast and Far Away from Public Option

Now that the Senate has firmly rejected the public option, President Obama is trying his darnedest to distance himself from the controversial, and failed, proposal. But that may be harder than he thought.

In an American Urban Radio interview yesterday, he said, "this is not the most important aspect of this bill." And today he told The Washington Post, "I didn't campaign on the public option."

But that's not true. In a campaign position paper on health care, Obama mentions the public plan eight times. The Obama-Biden campaign wrote:

Through the Exchange, any American will have the opportunity to enroll in the new public plan or an approved private plan, and income-based sliding scale tax credits will be provided for people and families who need it. Insurers would have to issue every applicant a policy and charge fair and stable premiums that will not depend upon health status. The Exchange will require that all the plans offered are at least as generous as the new public plan and meet the same standards for quality and efficiency. Insurers would be required to justify an above-average premium increase to the Exchange. (h/t: Think Progress)

Candidate Obama also signed on to the principles set down by the progressive group Health Care for America Now, the biggest proponent of a government-run plan. Those principles included support for a public option:

Everyone gets a choice of health insurance plans, including the right to keep your current insurance, choose another private plan or to join a public health insurance plan.

And while it's true that reform will include many of the reforms he ran on, it's not accurate for the president to claim he didn't run on passing a public option - Politico Story

Democrat Moving to Republican blames House Leadership

Democratic Rep. Parker Griffith announced Tuesday that he's switching parties – saying he can no longer align himself “with a party that continues to pursue legislation that is bad for our country, hurts our economy and drives us further and further into debt.”

“Unfortunately there are those in the Democratic Leadership that continue to push an agenda focused on massive new spending, tax increases, bailouts and a health care bill that is bad for our healthcare system,” Griffith said in a statement. “I have always considered myself to be an independent voice and I have tried to be that voice in Congress – but after watching this agenda firsthand I now believe that the differences in the two parties could not be more clear and that for me to be true to my core beliefs and values I must align myself with the Republican party and speak out clearly on these issues.

Griffith’s party switch comes on the eve of a pivotal congressional health care vote and will send a jolt through a Democratic House Caucus that has already been unnerved by the recent retirements of a handful of members who, like Griffith, hail from districts that offer prime pickup opportunities for the GOP in 2010.

The switch represents a coup for the House Republican leadership, which had been courting Griffith since he publicly criticized the Democratic leadership in the wake of raucous town halls during the summer. - Politico Story

Democrat Jumps Ship for Republican Party, More to Come?

The outlook for the 2010 elections just grew dimmer for Democrats, with the abrupt announcement Tuesday that Rep. Parker Griffith, an Alabama freshman, was jumping to the Republican Party.

While Griffith’s departure from the now 257-member Democratic Caucus will have almost no impact on the balance of power in the House, his party switch highlighted the growing unease among the Democratic Party’s most vulnerable members about the party’s ambitious national agenda and its role in contributing to the deteriorating political environment in which they must run for reelection.

Publicly, congressional Democrats mostly remained silent, a reflection of the unexpected timing —Griffith blindsided House leadership with the news and had even attended Speaker Nancy Pelosi’s pre-recess holiday party — and a desire to downplay the significance of his exit.

In the only statement issued by a top Democrat, Democratic Congressional Campaign Committee Chairman Chris Van Hollen simply asked for the party’s money back after devoting considerable resources to his 2008 election and reelection campaign.

"We were committed to helping Mr. Griffith deliver for his constituents and successfully helped Mr. Griffith fend off the personal attacks against him from the far right,” said Van Hollen in a statement. “Mr. Griffith, failing to honor our commitment to him, has a duty and responsibility to return to Democratic Members and the DCCC the financial resources that were invested in him. His constituents will hold him accountable for failing to keep his commitments.”

A Griffith spokesman confirmed to POLITICO on Tuesday that DCCC money would be returned.

During last year’s election, the DCCC poured more than $1 million into Alabama’s 5th Congressional District in an effort to fend off attacks on Griffith from the National Republican Congressional Committee and other conservative groups. Pelosi herself recently donated $2,000 to Griffith’s campaign coffers. - Politico Story

Democrats Push for Health Care Fast then Attempt to Rebuild Image for Elections

The White House privately anticipates health care talks to slip into February — past President Barack Obama’s first State of the Union address — and then plans to make a “very hard pivot” to a new jobs bill, according to senior administration officials.

Obama has been told that disputes over abortion and the tight schedule are highly likely to delay a final deal, a blow to the president, who had hoped to trumpet a health care victory in his big speech to the nation. But he has also been told that House Democratic leaders seem inclined, at least for now, to largely accept the compromise worked out in the Senate, virtually ensuring he will eventually get a deal.

Internally, White House aides are plunging into a 2010 plan calling for an early focus on creating jobs, especially in the energy sector, along with starting a conversation about deficit reduction measures, the administration officials said.

Both will be major themes for his first State of the Union speech, which will most likely take place on Jan. 26 or Feb. 2. White House aides are in the early stages of planning for the national address, but Obama will not only trumpet what he has described as his “B-plus” performance in 2009 but also set the stage for the 2010 congressional campaigns.

Obama and Democrats seem in agreement that they want to minimize the number of tough votes moderates in their party must take in the aftermath of the health care debate. They also seem in agreement that a jobs bill is a must — and that they need to show a serious commitment to reducing the deficit, a very difficult task after racking up record spending in Obama’s first year. - Politico Story

If the American People allow the Democrats to spend and spend and then fall for their debt reducing talk in an election year, we deserve the hell that we are getting ready to go through. These are the most corrupt politicians in the world. It is amazing that we will attack leaders from other countries for the corrupt government, but the USA is just as if not more corrupt. Our Senators and House bribe each other to win votes and call that business as usual. WOW. This is such great change that we got!!!!

Nebraska Senator Takes Big Payout for Vote

Sen. Ben Nelson in a single day won more friends than he can count -- and certainly more enemies.

With the Nebraska senator's decision to back Senate Majority Leader Harry Reid's health care bill, the partisan sea in his state has parted, with Democrats on one side applauding him for saving the bill and Republicans assailing him on the other.

Nebraska Democrats held a press conference Monday to sing Nelson's praises. State Sen. Danielle Conrad, one of the handful of state and local officials there, said Nelson did his job by protecting his state.

The news conference came after Nelson broke in favor of the bill on Saturday, giving Senate Majority Leader Harry Reid the 60 votes he needs to overcome a GOP filibuster. Nelson joined 59 other senators in the first successful test vote shortly after 1 a.m. ET Monday.

But with the Senate bill now heading toward a final vote after months of negotiations, Nebraska Republicans see Nelson's decision as unforgivable.

"Senator Nelson frankly did a horrendous job negotiating and sold Nebraskans down the river," Nebraska Republican Party Chairman Mark Fahleson said. The state GOP has launched a new Web page, GiveBentheBoot.com, to collect online donations in order to "retire" Nelson.

Fahleson said Nelson's decision makes the second-term senator highly vulnerable once he's up for re-election in 2012. The chairman said Nelson to this point has stayed in office in conservative Nebraska by running as a moderate, but his health care vote "obliterates" that persona. - FOX News Story

Bribery and Pork to get Health Bill Passed

The multimillion-dollar deals cut with Sen. Ben Nelson (D-Neb.) and others to win the 60 votes needed for the historic health care reform bill gave President Barack Obama the margin he needed to fulfill a central campaign promise — but may also have upped the ante for future presidential horse trading.

With the bill hanging in the balance, Nelson won a provision exempting his state from paying the usual share of costs for new Medicaid patients. The deal critics have dubbed the Cornhusker Kickback is expected to cost the federal government $100 million over 10 years.

Before a close vote last month, Sen. Mary Landrieu (D-La.) won an even larger break for her state — an estimated $300 million in extra federal spending, in a move opponents derided as the Louisiana Purchase.

Some critics branded the special deals as functionally equivalent to the kind of earmarks Obama crusaded against as a senator — and a quantum leap from eleventh-hour deals Obama’s predecessors have cut.

After Nelson and Landrieu, what will key congressional swing votes want from future White Houses?

“It’s a much bigger deal, a much larger piece of legislation than half-a-million dollars for a peanut museum in North Carolina,” said Thomas Schatz of Citizens Against Government Waste. “We’re now talking about programs worth hundreds of millions or billions of dollars. ... Sooner or later, other members are going to be saying: Why didn’t I think of this?” - Politico Story