Today At TRNS

The Washington Bureau will be covering the following events:

-Remarks by National Economic Council Director Lawrence Summers on "Rescuing and Rebuilding the U.S. Economy: A Progress Report”

-An appearance by Education Secretary Arne Duncan, White House Press Secretary Robert Gibbs, and Agriculture Secretary Tom Vilsack at event to read to children.

-A House Financial Services Committee hearing on "Industry Perspectives on the Obama Administration's Financial Regulatory Reform Proposals."

-A discussion on "Scholars and Scribes Review the Rulings: The Supreme
Court's 2008-2009 Term” at the Heritage Foundation.

-A discussion on discussion on "Healthcare Reform: Putting Patients First."

Obama’s Domestic Policy Formed From Necessity

By Joseph Russell- Talk Radio News Service

National Economic Council Director Larry Summers highlighted the Obama Administration’s plan to improve the economy during a speech to the Council on Foreign Relations' annual conference in New York.

Summers emphasized that the President has been absolutely clear that “the actions we take are those of necessity, not choice.”

Summers also said, “the President has been unambiguous. . .that any intervention goes with, rather than against, the grain of the market system. Our objective is not to supplant or replace markets. Rather, the objective is to save them from their own excesses and improve our market-based system going forward.”

Summers outlined the President’s position to support additional financial regulatory reform toward individual institutions. While Summers admitted the details are complex and “can blind sophisticated observers to the obvious,” he echoed Obama by saying such reform is necessary to overt future financial crises.

While no examples of possible legislation were given, Summers said the center of the financial crisis was, and continues to be, excessive leverage and systemic risk by banks and other financial institutions. He noted the administration will continue to move forward with its domestic agenda,
even though the effects of these policies may not be known for up to
four years.

Obama promises tax cuts for middle class, increase for the wealthy

Sen. Barack Obama's tax plan would cut taxes to rates that are lower than those seen under Ronald Reagan, according to Jason Furman, the Obama for America Economic Policy Director. He and others held a conference call to discuss Obama's tax plan, and to dispel any myths that they feel were spread by Sen. John McCain's campaign.

Furman went on to say that taxes on middle class families would be significantly cut, with the overall tax rate brought down to less than 18 percent of our nations Gross Domestic Product (GDP). In addition, he said Obama would supplement these cuts by ending the war in Iraq responsibly and cut subsidies to Medicare HMOs. Furman also said that any family earning below $250,000 annually can expect no tax increases under an Obama administration, while McCain cannot say the same thing. He said that McCain's plan, for the first time in history, would force Americans to pay taxes on health insurance they receive from employers. Furman said this would result in a $3.6 trillion tax increase on middle class Americans.

Austan Goolsbee, Chief Economic Advisor for Obama for America said that the top one percent of households would see their taxes go from 21 percent to less than 25 percent. In addition, Goolsbee said that Obama would lower taxes on dividends and capital gains.

Former Treasury Secretary Larry Summers points out that while the McCain campaign and Conservatives in Washington have said that a Democratic tax plan would cause a recession, he points to the tax plan of the early 1990's under President Clinton. This plan was followed by the largest economic boom our nation has ever seen.