OMB Director Remains Cautious Of Fragile Economy

By Rob Sanna- Talk Radio News

Peter Orszag made his last public address as Director of the Office of Management and Budget Wednesday and lauded policies that have helped the economy begin to recover. However, he believes that the economy is far from fixed.

“We are back from the brink, but not out of the woods,” Orszag said. “The most pressing danger we now face is unacceptably weak growth and persistent unemployment, rather than outright economic collapse, more needs to be done.”

According to Orszag, the deficit is predicted to drop from of 9.2% of GDP to 5% GDP by 2015, which is the fastest deficit reduction since the end of World War II.

Orszag touted the Health Care Act and said it will drive down health care costs which will help the status of a the country’s struggling economy. In addition to lowering health care costs, the OMB Director says government spending is being reduced through cutting outdated or inefficient programs.

Orszag said that critiques against a rising defit are ill informed. Orszag argued that radically reducing the deficit would hinder the progress of an already weakened economy and job market.

“It would be foolish to dramatically reduce the deficit immediately because that would choke off the economic recovery before it had a chance to develop adequately, but it would be equally foolish not to reduce the deficit significantly by 2015, because it would seriously imperil economic growth at that point”

Sen. Johanns Wants Repeal Of Health Care Paper-Work Provision By August Break

By Alexa Gitler- Talk Radio News Service

Sen. Mike Johanns (R-Neb.) told reporters Wednesday that he hopes to bring an amendment to the floor that would repeal a provision in the health care reform law requiring businesses to file a 1099 tax form if they spend more than $600 per year through an individual vendor.

“It could be for something as trivial as paying the phone bill,” he said. “Can you imagine how many 1099s Verizon will have to deal with?”

Johanns noted that he hopes the amendment will pass prior to the August recess.

With the new provision in effect, it is expected to impact over 40 million businesses all over the country including approximately 26 million sole proprietorships.

“In addition to the filing requirements and charges that businesses will pay, they will also have to pay for a tracking fee,” said Johanns.

Johanns explained that the health care bill went through congress so quickly and had so many components that little things like this provision were missed.

“I can’t imagine that a Senator could go back home in August and tell their constituents that he or she voted against this amendment when it is so critical for small businesses all over the country,” Johanns said.

Added Johanns, “This is the priority of Republican Senate leadership to try and get this passed.”
 

Democrats Attempt To Blur Line Between Tea Party And GOP

By Brandon Kosters - Talk Radio News Service

As November’s midterm elections approach, the Democratic Party is moving to link the GOP with the extreme elements of the Tea Party movement.

Speaking alongside a handful of Congressional Democrats at a press conference in the Democratic National Committee’s headquarters Wednesday, Rep. Debbie Wasserman Schultz said that in terms of policy, the GOP and the Tea Party are “one and the same.”

“Essentially, you don’t know where the Republican Party ends and the Tea Party begins,” Wasserman Shultz claimed.

While the Tea Party movement, essentially made up of a collection of conservative activists, has proven to be popular in some circles, it has at times walked a political tight rope. Tea Party favorites Sharron Angle (R) in Nevada and Rand Paul (R) in Kentucky both won their party’s Senatorial primaries due in part to their strict conservative platforms, but have taken a more moderate tone in recent months to garner centrist support.

The House Democrats who spoke at Wednesday’s conference criticized the Tea Party for their opposition to health care reform, Wall Street reform, the Environmental Protection Agency and the 17th Amendment to the Constitution, which gives citizens to directly elect their Senators.

“The Tea Party Republicans offer a retrograde, reactionary program for the American people that is extreme… [and] way out of the mainstream,” Rep. Keith Ellison (D-Minn.) said.

Afghanistan Needs Continued American Commitment, Says Official

Philip Bunnell - Talk Radio News Service

Special Representative to Afghanistan and Pakistan Richard Holbrooke told the House Appropriations Committee Wednesday that if the United States is going have a successful run in Afghanistan, its commitment and investment must continue unwavered. 

Holbrooke said strengthening the Afghan government and weeding out corruption is critical if President Obama’s war strategy is to succeed. 

“The steps we’ve taken so far to fight corruption is a start,” said Holbrooke, citing the multiple recent arrests of corrupt Afghan officials. Despite the progress, Holbrooke acknowledges that there was still a lot of work to do in erasing corruption within the Afghan government.

One of the keys to a stronger Afghan government, Holbrooke said, is an effective transfer of control from US and NATO forces to locals. He said that, without a commitment to a smooth transfer, “the process will not move forward.”

Holbrooke stressed that persistent investment in the Afghan military and police forces and the economic development of the country is vital. Accomplishing these goals will require “continued American commitment,” and patience even after American troops have left the country.

Holbrooke’s testimony comes in wake of wavering Democratic support for the war in Afghanistan, including a vote for an additional $37 billion in war spending that 106 House Democrats voted against.

Rep. Jim Moran (D-VA), one of the opposing Democrats, questioned the validity of the United States’ mission in Afghanistan. Moran recounted his recent visit to Afghanistan where he was told that from the perspective of some Afghan tribal leaders, the United States “didn’t liberate Marja, the Taliban liberated it from a corrupt police chief who was preying on his own people.”

Senate Republicans Denounce Energy Bill

Robert Hune-Kalter - Talk Radio News Service

Senate Republicans were quick to denounce Majority Leader Harry Reid’s (D-Nev.) new energy and oil spill legislation that was announced late Tuesday evening. 

“Democrats are treating the serious subject of clean energy like an unwanted relative,” said Senate Republican Conference Chair Lamar Alexander (R-Tenn.).

Alexander told reporters that Republicans have been prepared to debate clean energy for a year, insisting many of the party’s policies are similar to those proposed by the White House.

Sen. Lisa Murkowski (R-Alaska) said she believes that the energy plan put forth by Republicans is much more responsive than the package released by Reid.

“It has been suggested that our Republican plan is a cobbled together, not thought-out process,” she said.  “We put together a package that responded to the situation in the Gulf. We must increase the strict liability limits, structurally reorganize the MMS, [and] we amend the oil spill liability trust fund.”

Republicans are concerned with one part of the Reid bill that aims to end hydraulic fracturing, the method used by the natural gas industry. Later in the day, Reid told reporters that such criticism is invalid, explaining that the U.S. should explore cleaner methods of extracting natural gas. 

Democrats are launching an aggressive move to pass the legislation before adjourning for the August recess.