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New facts released by the office of House Budget Chairman Paul Ryan, R-Wis., reveal a hidden tax increase in President Obama's budget proposal. Obama's plan would, these facts demonstrate, impose a 20 percent increase in the top income tax rate – a significantly greater increase than the president has admitted. The news media fancies itself a watchdog, so if the president is going to dramatically hike taxes, one would hope that Americans would hear about it first. But thus far, there has been almost no coverage of these stealth tax hikes. On Monday, Washington Post fact-checker Greg Kessler confirmed the veracity of Ryan's claims. Whether other major media outlets report on them will be the true test. Congressman Ryan broke down the president's proposed tax hikes into a pair of separate measures that effectively increase the top tax rate. Taken with an existing Medicare payroll tax, the new top tax rate under Obama's plan would be 44.8 percent, not the 39.6 percent the administration claims – and significantly higher than current top tax rates. The first provision of Obama's budget that Ryan's office noted is the reinstatement of so-called “PEP and Pease” provisions, which refer to two laws that limited deductions for high-income taxpayers. Kessler reported Monday: Ryan calculates that reinstating “PEP and Pease” would add about 2 percentage points to a wealthy person’s tax rate. The precise calculation can vary, but Ryan’s estimate appears to be in the ballpark. Ryan then adds Medicare payroll taxes to his total rate. Unlike Social Security, there is no wage cap on Medicare taxes. Currently, employees and employers split the cost of the 2.9 percent Medicare tax, though many economists say it makes sense to assume some of the employer’s tax payments result in lost wages for the employee. Ryan does that to come up with a “net” tax rate of 2.3 percent. (However, we should note, this is an existing tax; it is not new under Obama.) Interestingly, when some conservatives complain that half of all Americans do not pay income taxes, they are not counting payroll taxes, which is the main tax paid by lower-income Americans. We have not seen Ryan make this claim; it certainly would be inconsistent for him to count payroll taxes here and not in other circumstances. Meanwhile, starting in 2013, the new health care law adds a surtax on high earners — an additional 0.9 percent tax on incomes over $200,000 for individuals and $250,000 for couples filing joint returns. For someone making $390,050, thus triggering the 39.6 percent tax rate, that means at least an extra $12,600 in Medicare taxes just from the health care law. (The health care law also imposes additional taxes on investment income, but we won’t get into that now.) Adding up all of these figures, you get to an effective marginal rate of nearly 45 percent. One can quibble with some of the assumptions, but tax experts we checked with found Ryan’s calculations to be reasonable. The two percent income tax increase from PEP/Pease and the 0.9 percent “surtax” imposed to pay for Obamacare, when taken with the 2.3 percent payroll tax increase, bring the new top tax rate to 44.8 percent. The hidden tax hikes in Obama's budget amount to a 7.5 percent increase in income taxes for top earners – a 20 percent increase over current rates. The new top tax rate under Obama's budget would be the highest it's been since the 1980s, and significantly higher than the president himself has admitted. The revelations are crucial as a means to evaluate the administration's performance on the number one policy priority of American voter: jobs. Raising tax rates on the highest income earners can depress job growth, as the wealthiest Americans are generally the ones investing in job-creating ventures. So a push to so dramatically increase taxes on those earners is anathema to a job-creating economic agenda. The president himself has criticized the business community for supposedly sitting on $2 trillion in capital (a claim that was itself misleading ). But Obama apparently expects investors to risk what capital they have without knowing whether they will face punitive tax rates in the near future. So the “uncertainty factor” of these stealth tax hikes, which would raise rates even higher than the roughly 40 percent claimed by the White House, undermines the president's own rhetoric on job creation. Not only is this tax increase likely to hinder job creation, it is unlikely to meaningfully contribute to deficit reduction, for reasons detailed in this video, compliments of Learn Liberty : So the president's stealth tax increase will not likely aid in efforts to address the electorate's top priority, or its own stated goal of bringing down the federal budget deficit. Will the media report on these tax hikes now that they have been unearthed, or simply accept the president's claims at face value? The Washington Post has admirably taken the lead. Let's hope that others follow.

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Francis Fukuyama: ‘Americans are not very good at nation-building’

In his new book, The Origins of Political Order, the author of the The End of History lays down the conditions required for a nation to become a democracy. He talks to Stephen Moss about his fears for our immediate future – but why he is still an optimist Francis Fukuyama is on day 24 of a world tour to plug his fat new book, The Origins of Political Order. I bump into him and a minder as he arrives at his publisher’s offices in central London. The offices, in what looks like an old warehouse, aspire to be a bit Manhattan – open plan, stripped wood, buzzy. The downside is that the ancient lift has packed up, and the office is three floors up. Nobly, Frank – as his friends call him – insists on carrying a suitcase, which is almost as large as he is, as well as his backpack up all three flights, despite my efforts to help. He has just had breakfast with the Financial Times and is doing the rounds of TV studios, but pausing only to get a cup of tea we plunge straight in to what for me is a rather intimidating seminar on global politics. It’s a bit like being 20 again and, horribly underprepared, going to a tutor to discuss the church under Henry II. Happily, Fukuyama fields my scattergun questions with polite aplomb. The only time he looks disconcerted is when the photographer asks him to start taking off his clothes to get a more relaxed look – Fukuyama doesn’t really do relaxed. Almost 20 years after it appeared, he is still best known as the author of The End of History . It was that book – perhaps even just that title – that turned a foreign policy wonk and middle-ranking figure in the state department into a global super-pundit. The 1992 book, which expanded on a famous essay published three years earlier, was much quoted without being much read. Much mocked, too, after 9/11, when his critics pointed out that, far from being over, history seemed to be more urgent and unpredictable than ever. But they had misunderstood his thesis: he had not argued that conflict would cease but that, with the collapse of the Soviet empire, the ideological struggle was over. Liberal democracy was the only game in town. The new book, the first of two volumes, explores how liberal democracies are established, how – in a nice phrase he uses prominently – countries “get to Denmark”. In the west we take a great deal for granted – that we can vote governments out, that the rule of law will more or less hold sway, that corruption will be punished, that we will enjoy political freedoms, but much of the world doesn’t enjoy those privileges. Fukuyama is attempting to work out how states developed and why some became liberal democracies and others, notably China, opted for an authoritarian model. Fukuyama argues that getting to Denmark relies on three things that have to be in harmony – a functioning state, the rule of law and accountable government. China’s problem was an overmighty state: it got civilisation too soon. By a series of happy accidents, England managed to get all three by the 17th century, exported them to the US via freedom-conscious settlers and provided a model for the rest of the world. Those three preconditions of liberal democracy are the holy grail. “The fact,” he writes, “that there are countries capable of achieving this balance constitutes the miracle of modern politics, since it is not obvious that they can be combined.” The condition that the debt-ridden and divided EU is in at the moment made me wonder whether “getting to Denmark” was quite so desirable a journey these days, and I begin by asking him what he makes of Europe’s nervous breakdown. “Collectively it seems to me that the EU is in big trouble,” he says. “They basically let in a whole bunch of countries that they shouldn’t have. There’s no mechanism for disciplining them once they’re in and there’s no exit strategy.” He doesn’t understand why Greece, Ireland and Portugal are submitting to the euro straitjacket. “The policy which is now being dictated out of Berlin is crazy. There’s just no way those countries are going to grow with a strong currency and an austerity policy that stretches out for years into the future. They’ll have to consider coming out.” The point I’m driving at is a pessimistic one: that the EU might implode; that the predicted decade of austerity could produce very nasty, ultra-competitive national politics; that Beacon Europe might become Fortress Europe; that as in the 1930s liberal democracy could come under assault even in its heartlands. To my surprise, he accepts the argument, in part at least. “That’s one of the things that is in this book that wasn’t in my original book – the possibility of political decay. I don’t think there’s any particular reason why, if you are a liberal democracy, you can’t decay. Your institutions can get too rigid; your ideas can get too rigid. I think right now a lot of developed democracies are going to have to renegotiate their basic social contract, because a lot of the welfare state arrangements are just not sustainable, and that’s something democracies are really not good at. They aren’t good at persuading people to pay higher taxes and accept cuts in benefit for the sake of something that’s going to happen a generation from now.” Apocalypse now? “Things could get bad quickly,” he admits. “We’re seeing the rise of populist parties across Europe. There’s a lot of political correctness about immigration and the whole nexus of problems associated with it. People aren’t allowed to talk about that, and there’s now been this explosion on the right where people not only talk about it but are saying some pretty nasty things about it.” He finds it odd that the crash of 2008 and the political disaffection that has flowed from it have fuelled rightwing populism but not leftwing populism, either in the US or Europe. “The left isn’t strong anywhere,” he says. “You don’t have charismatic, inspiring leaders anywhere. You look at Italy. Why is this rascal Berlusconi still prime minister? It’s because the left in Italy can’t come up with an inspiring agenda that anyone believes in.” He seems to think that the long-term trend is towards liberal democracy and political freedom, but in the short term we may all be dead because democracies struggle in slumps. “It is much easier to run a democracy and a capitalist economy that produces inequalities if you have long-term growth because, even if it’s not evenly shared, at least everybody is benefiting down the road. Without growth you return to a Malthusian world where it’s more zero sum. One person gets rich at the expense of another person, and then it becomes much harder to maintain democracy.” So is he an optimist – the conventional reading after The End of History – or a pessimist? “I’m basically an optimist because I do think there’s this historical modernisation process, and by and large it’s been very beneficial to people. But there are blips. History doesn’t proceed in a linear way.” Or in a geographically even way – the current pessimism in Europe is offset by hope in north Africa and the Middle East. “The Arab spring has,” he says, “put a lot of authoritarian governments on notice.” Fukuyama’s official position these days is as a senior fellow in international studies at Stanford University in California. This is one of those glorious American academic jobs where he gets to teach when he wants to, and is essentially being paid to think – and to add lustre to his department. It leaves him free to sit on a dozen advisory boards around the world, and to get involved in putting into practice the overriding lesson of his new book, which is that building workable democracies is tough and relies on the grassroots being cultivated. “I’ve been running an international development programme and doing a lot of work with the World Bank and aid agencies which are trying to improve governance and deal with corruption in weak states,” he says. “The Denmark problem is a big one. People have unrealistic expectations for the kinds of improvements that can be made, and how quickly. They need to set more modest goals.” This new realism also feeds into the political journey he has undergone. In the 1980s he was a strong supporter of Reaganism and worked for the state department under both Reagan and George Bush Sr. He supported George W Bush in 2000, and favoured intervention after 9/11. But he has since renounced both Bush and the attempt to impose democracy on countries such as Iraq and Afghanistan. He voted for Obama in 2008 and tells me that, following his move last year from Washington to the west coast, he does not intend to register as a Republican supporter (registration enables you to vote in state primaries) but will register as an independent, or perhaps even as a Democrat. For a conservative thinker with strong Republican links and a reputation in the 1980s as a leading neocon, a Rubicon has been crossed. The turning point was the younger Bush’s mishandling of the Iraq war. “They didn’t launch the war to export democracy,” he says. “They launched it because of security concerns, and attached this democracy justification as an afterthought, which I didn’t think was helpful to the cause of democracy. If you thought the problem through, you’d realise that this is a long-term, costly endeavour, and you would think long and hard before you took it on, because if you just do it in a half-arsed way and give up after a few years you’re liable to make things worse.” Fukuyama made a powerful case against his former neocon allies in his 2006 book America at the Crossroads. He still wants to “export American ideals”, but tells me “it ought to be done through soft-power instruments”. “In general,” he says, “Americans are not very good at nation-building and not very good colonialists. Look at the impact of the United States on Latin America or the one colony we had, the Philippines. Those countries are still not doing very well. We stumbled into Afghanistan and Iraq, which are basically tribal societies, and most Americans have no idea of how a tribal society operates.” The mistakes of the Bush years were, he believes, a direct consequence of Reagan’s success in seeing off the Soviet Union in the 1980s, a high-stakes gamble that could have backfired and succeeded only because of the liberalising role played by Mikhail Gorbachev. “This minor political miracle happens – they take this very principled stand against a dictatorship, they’re not willing to compromise, and then the dictatorship collapses. That was their [the Republicans'] last experience of government, then you had the Clinton years, and what they were hoping for was a repeat of that in Iraq. You take a principled stand against a dictator, you depose him, and then you have a similar eastern Europe-style upwelling of support. But they should have realised that the eastern European situation was an unusual one. The roots were there. They were basically western countries that had been knocked off course by the Soviet Union, and it was natural that they should embrace western values and democracy, whereas Iraq, because of the Israeli-Palestinian situation and the whole history of colonialism, was never going to embrace the west.” What about Libya? Is intervention there also a mistake? “I supported the no-fly zone. It would have been terrible if Gaddafi had got into Benghazi. Having said that, we’re stuck now, and there’s not an obvious good way out, but I still think this is better than letting Gaddafi take Benghazi. He’s more likely to collapse than the opposition, and you just have to keep your fingers crossed.” The bigger question is how to build a successful state once he has gone, and the National Endowment for Democracy – one of the organisations Fukuyama advises – is mentoring rebel groups in an effort to create the conditions for a successful transition. Fukuyama, who is 58, was born in Chicago but grew up in New York. His father is a second-generation Japanese-American whose own father fled the Russo-Japanese war in 1905 and started a shop on the west coast before being interned in the second world war (that distant family experience has made Fukuyama a critic of Islamophobia). His mother, who comes from an academic family in Japan, met her husband when she came to study in the US. Some Japanese was spoken at home, but Fukuyama, an only child, never learned to speak it – “it just wasn’t fashionable to be ethnic when I was growing up” – though he says his three children have embraced their dual identity and his eldest son is learning Japanese. His education was multi-layered: classics and humanities at Cornell, comparative literature at Yale, political science at Harvard. He specialised in the Soviet Union and in 1979 joined the Rand Corporation thinktank, before spending two spells as an adviser at the state department under Republican administrations in 1981-82 and 1989-90. As well as moving away from the Republicans – he says the party is “out to lunch at the moment” – he insists that he is not one of those Kissinger-style academics who covets a big job in the government, of whatever hue. “I’ve figured out in the course of my life that the one thing I’m good at doing is writing books,” he says, “and it would be crazy to trade that in for something else. I can still contribute to the political debate.” If he had pat solutions to the world’s problems he might be tempted, he says, but there are no pat solutions. “Take Pakistan, which I think is the scariest and most dangerous issue facing us right now. I have no idea what you do there.” One thing he is sure about is that Obama was right to authorise the killing of Bin Laden. “In an extraordinary case like that, it wouldn’t have been possible to put him on trial,” he says. “It would have been a circus.” Despite all the problems, he sees cause for hope. He points to South American presidents such as Brazil’s Lula who gave up power when they could have come up with a political fix and carried on. He also welcomes the end of America’s hegemony, and believes the world’s new multi-polarity could create greater stability. On the downside, he says Russia is “hopeless – if they didn’t have energy, they’d be a totally inconsequential country. Nothing good has happened there since Putin came to power, and it’ll need a generation of younger Russians to take over who don’t have this chip on their shoulder.” He sees China as a “really interesting challenge – a very high-quality authoritarian government”. Can it challenge the liberal democratic model? “It’s theoretically possible,” he admits, “but it’s such a hard system to duplicate, and I don’t think the Chinese believe that anyone can duplicate it, and therefore they’re not proselytising other countries to adopt it.” For all the qualifications and the new mood of pessimism over the immediate prospects for countries caught up in the crash, he still holds to his belief that liberal democracy is the endpoint of political evolution and the system to which countries will continue to aspire. China, the only current viable alternative, “lacks a basic legitimacy in the same way that these Arab regimes do, because it doesn’t respect the rights of ordinary Chinese; it tramples on them all the time. There are lots of violent social protests that we never get to hear about, and the economic model is going to run out of steam because you cannot keep growing at 10% a year based on exporting all this stuff to people who can’t afford it any more.” There is no immediate threat to the Chinese system, he says, but in 20 or 30 years it will come under severe pressure. Liberal democracy is likely to win again, proving that he was right about the “end of history” even in this most dramatic and history-making of epochs. That, at least, is the theory. Francis Fukuyama United States Stephen Moss guardian.co.uk

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MPs condemn Kraft over boss’s snub to parliament

Irene Rosenfeld’s failure to attend hearings into the Cadbury takeover verged on ‘contempt for the House of Commons’, says MPs’ report Kraft came close to showing contempt for the House of Commons in refusing to put forward chief executive Irene Rosenfeld to answer questions about its acquisition of Cadbury, MPs said on Monday. A report from the Business, Innovation and Skills select committee lifts the lid on the correspondence between the American food group and the committee. Rosenfeld declined invitations to answer questions on the £11.5bn deal on two separate occasions – during the last parliament in early 2010 and again, more recently, as part of the select committee’s review of the takeover . “Irene Rosenfeld, the chief executive officer and chairman of Kraft, refused to give evidence despite repeated requests from us that she should appear. Neither that refusal to attend, nor the manner of it, reflected well on Kraft, nor did Kraft’s persistence in failing to acknowledge the seriousness of the Takeover Panel criticism – criticism which, by its gravity, would alone have merited Ms Rosenfeld’s appearance before us, as a committee of public scrutiny. That sorry episode overshadowed what could have been a positive discussion on the future of Cadbury under Kraft’s ownership. In its correspondence with the committee, Kraft in our view steered close to a contempt of the House. We trust that that will not be repeated,” the committee’s report said. Kraft was criticised by the Takeover Panel for suggesting it would keep open Cadbury’s Somerdale plant near Bristol – and then backtracking a week after the takeover. The committee’s report quotes correspondence from Kraft questioning the MPs’ insistence on calling Rosenfeld as a witness. Marc Firestone, executive vice president of Kraft, wrote to the committee in February of this year: “Given our understanding that the committee’s purpose is to inquire into relevant facts, the repeated demands for Ms Rosenfeld to appear in person are regrettable. Based on the experience of last year’s hearing and recent comments by some committee members, there seems to be a desire to have a ‘star witness’ towards whom ill-founded allegations and insults can be made, with little or no attempt to discuss the facts and look rationally into the evidence. Indeed, a review of the transcript from last year’s hearing shows that it went far beyond spirited debate to a remarkable level of rancour.” The MPs said this was a “total misrepresentation” of their reasons for inviting Rosenfeld, adding: “The description of the committee’s ‘motive’ for inviting Ms Rosenfeld in our view fell short of an explicit contempt of the House, but not by much. The manner and tone of the letter was unacceptable and showed a distinct lack of judgment by Mr Firestone.” The committee concluded that Rosenfeld’s “repeated refusal to appear before a committee of Parliament demonstrates a regrettably dismissive attitude to a national parliament – an attitude which we trust Kraft will rapidly take action to shed.” The report does detail “encouraging” progress from Kraft in other areas. “It would appear from the evidence given to us that Kraft is currently honouring the undertakings given to our predecessor committee and is committed to investment in Cadbury. We were especially encouraged by continued investment in Bournville and recruitment into research. Given the particular responsibility Kraft has to Cadbury employees following the Somerdale episode, we trust that this approach to investment will continue. It would also assist considerably in rehabilitating Kraft’s reputation if the savings planned from integration synergies were used to support further investment for growth and accommodate the results of that growth in terms of recruitment needs.” The committee also remains concerned that some marketing functions have been transferred away from the UK to Zurich. Trade union Unite said that it welcomed the scrutiny of Kraft, “in particular the recommendation that the UK urgently needs a new takeover regime. The committee also says a repeat of Kraft’s behaviour over Cadbury’s Somerdale plant – which it promised to reprieve from closure then subsequently reneged on this once it had purchased the confectionary firm – must be guarded against by ensuring that promises made during bids are made binding. “So concerned has Unite been about Kraft’s failure to disclose basic information since the takeover that it is now seeking to use international agreements to ensure it informs the union about its plans. Unite says Kraft must come clean on plans for the next five-year period at least to reassure the workforce of its commitment to the UK.” Kraft Food & drink industry Cadbury Alex Hawkes guardian.co.uk

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Republican Tim Pawlenty announces run for US president

Tim Pawlenty, the former Minnesota Governor, says he will seek the 2012 Republican presidential nomination Former Minnesota Governor Tim Pawlenty has announced that he is seeking the 2012 Republican presidential nomination, adding some weight to a field of candidates seen as struggling to defeat President Barack Obama. “Tomorrow my first campaign stop will be in Iowa and that’s where I’m going to begin a campaign that tells the American people the truth,” Pawlenty said in the video on his website. “I’m Tim Pawlenty and I’m running for president of the United States.” Pawlenty, 50, is respected by political insiders and could emerge as one of his party’s strongest candidates, although he has been near the bottom of the pack of potential Republican challengers in public opinion polls. Pawlenty, known as “T-Paw” to his supporters, was a popular two-term governor in a Democratic-leaning state, giving him credibility as a Republican who can attract vital support from independent voters. The son of a truck driver who grew up near stockyards and a meat-packing plant, Pawlenty was 16 when his mother died of cancer and his father lost his job. Pawlenty went on to work his way through college and law school at the University of Minnesota. Despite the struggles of his early life, the soft-spoken Pawlenty is seen by some Republicans as lacking the toughness needed to take on an incumbent president with strong campaign finances like Obama. The president leads potential Republican candidates in most polls but he could slip if unemployment numbers do not improve quickly enough. Former Massachusetts Governor Mitt Romney has been leading some early polls for the Republican nomination. Newt Gingrich, a former speaker of the US House of Representatives who entered the race two weeks ago, has had a rocky start having drawn the ire of fellow conservatives by criticising a Republican plan to overhaul the Medicare health insurance program for the elderly. Prominent Republicans such as Indiana Governor Mitch Daniels, former Arkansas Governor Mike Huckabee and Mississippi Governor Haley Barbour have decided not to join the race. Two potential candidates with ties to the conservative tea party movement, US Representative Michele Bachmann and 2008 vice presidential nominee Sarah Palin, have not announced their plans. United States Tim Pawlenty Republicans US politics US elections 2012 Minnesota guardian.co.uk

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Newt Gingrich: I’m Debt-Free and Frugal!  No, Really!

Click here to view this media (h/t David at VideoCafe) I love Newt Gingrich’s campaign strategy of demanding that the media only hold him accountable for how great he is *right now*. Ignore all those ethical issues in his past tenure as Speaker of the House , he’s *now* the only one with leadership skills. Ignore all those infidelities in the past , he loves his wife *now*. Ignore what he said last week about Paul Ryan’s budget, he thinks it’s the best thing for America *now*. Likewise, *right now* Newt knows exactly how to get us out of the economic crisis we’re in because he’s debt-free and frugal, just ignore the fact that his own financial dealings have been less than cut and dried. Bob Schieffer brings up this week’s revelation that Callista Gingrich disclosed five years ago an outstanding debt to Tiffany’s Jewelers in the six figures. Callista claimed the debt (of somewhere between $250,000 and 500,000) was her husband’s. Now, I don’t know about you, but I think it’s hard to claim understanding the financial concerns of most Americans when you’re floating a six figure debt to Tiffany’s, but Newt wants you to know that *right now* he and Callista are living frugally and debt-free . Whew! I’m relieved to know that, aren’t you? Except… Newt’s “small businesses” actually owed back taxes just a short time ago : Companies run by Republican presidential candidate Newt Gingrich have faced overdue tax bills in four states worth more than $6,000, according to records reviewed by The Associated Press. The tax liens, which generally allow governments to seize assets or property to settle tax bills, ranged in size from a $195 property tax bill in the Atlanta suburbs to $1,969 in unpaid Missouri taxes. Most of the liens were paid shortly after tax authorities filed them. One exception was in Pennsylvania, where Gingrich Holdings Inc. last week paid off a $1,599 lien for unpaid corporate income taxes just days before Gingrich formally announced he would run against Democratic incumbent Barack Obama. Gingrich spokesman Rick Tyler said Gingrich and his firms were unaware of most of the tax liens until being contacted this week by the AP. And on the subject of being debt free…Newt never really has ever explained where he came up with the money to pay his ethics violation charges. Initially, he said he’d pay it via a $300K loan from Bob Dole , but then the outrage made him back down and offer to pay for it himself . Where that money came from is anyone’s guess. Then-wife Marianne Gingrich (Callista was only a little something something on the side) said that the Gingriches were extremely cash-poor in those days and Newt’s plan to write a book to cover expenses fell apart . So where did the money come from? We know that Citizens United donated money to Newt’s production company and we know he’s raking in cash (some $14 million according to some sources) from donations to various foundations . Maybe Gingrich ought to release his tax filings so we can see just how frugal and debt-free he is.

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Dick Armey: ‘Time to start drafting Paul Ryan’ for president

Click here to view this media Indiana Gov. Mitch Daniels (R) has pledged not to run for president in 2012, leaving former House Majority Leader Dick Armey (R-TX) unimpressed with the remaining Republican candidates. “We have about 2 million activists across the country, and frankly we’re disappointed,” Armey told CNN’s Candy Crowley Sunday. “Now, obviously, we’ll have to start looking, and I was just saying this morning maybe it’s time to start drafting Paul Ryan.” “We understand the fiscal crisis of this nation and this nation’s government faces is so acute that somebody’s got the stand up and take on the big issues. Paul Ryan has done that.” He added: “I have said for years on, for example, the subject of medicare. It’s always a debate that’s governed by Republicans that don’t dare and Democrats that don’t care, and at least now we have a Republican that dares. He needs to be applauded, encouraged, and his work needs to be appreciated as serious professional work.” The FreedomWorks tea party organizer also suggested that he wasn’t worried that future seniors might have trouble paying for insurance if Republicans are successful at enacting Ryan’s plan to turn Medicare into a voucher system. “I’m perfectly capable of having my own health insurance, that which I’ve had all my life,” Armey said. “Paul Ryan is doing more to save grandma’s health care than anybody I know right now because Medicare is going to go bust and bring the government to going bust if it’s not attended to, and he ought to be applauded.”

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Angry at lack of support by the Democratic Party in the face of Republican attacks, unions have sharply cut back their financial support, reports the Washington Post . Union political action committee spending for House Democrats dropped nearly in half for the first quarter of 2011, compared to the same period…

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Chair of House Oversight Committee Issa’s Company Underpaid Millions in Tariffs on Chinese Imports

Click here to view this media As Cenk Uygur noted here, apparently the current Chairman of the House Committee on Oversight and Government Reform wasn’t doing much oversight of his own company. And as he noted, ironically this is the same man who once made the statement that “There will be a certain degree of gridlock as the president adjusts to the fact that he has been one of the most corrupt presidents in modern times.” Par for the course, Republican hypocrisy knows no bounds. Here’s more from The San Diego Union-Tribune. Company Issa founded underpaid tariffs : The Vista car-alarm company once owned by Congressman Darrell Issa was paying about half the required tariffs on certain parts it imported from China for years and paid an estimated $2.5 million in back duties earlier this year to rectify the situation. Issa no longer owns DEI Holdings Inc., although he is still on the board of the company, which is being sold to Boston-based Charlesbank Capital Partners for $285 million in cash. In a prepared response to questions from The Watchdog, Issa said he was aware of the misclassifications and participated in efforts to resolve them. “Once these issues came to the attention of the board of directors, we called for an independent review by expert counsel,” he wrote. “My understanding is the company has made appropriate tariff adjustments and disclosures both to Customs and our independent auditors.” DEI said the classifications were corrected as quickly as possible when the problem was discovered early in 2010. In the first quarter of this year, the company reported the underpayments to Customs and Border Protection, the federal agency that enforces tariffs. Former DEI executive Mike Wilhelm noted that the disclosure was made a year after the fact, and only after he filed a whistle-blower complaint with Customs on March 14 of this year. “They weren’t going to do it unless I forced them to,” said Wilhelm, a DEI vice president who resigned over the issue in March after 10 years with the company. “Frankly, I became ashamed to work there.” Read on…

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Mitch Daniels Says No To Presidential Run

enlarge Indiana Governor Mitch Daniels has declined to run for the 2012 Republican nomination for president. In a late-night press release, he said this: “On matters affecting us all, our family constitution gives a veto to the women’s caucus, and there is no override provision,” Daniels said. “Simply put, I find myself caught between two duties. I love my country; I love my family more.” So that leaves Newt Gingrich, currently groveling his way back into the good graces of the TeaBirchers, Tim Pawlenty, and Mitt Romney with maybe Jon Huntsman finding his way into the field. Oh, and Michele Bachmann. Please, let’s not forget Michele. She just may be the most interesting, if frustratingly stupid, candidate they’ll have. This is what I think. I think the Republicans have decided to put up a nominal fight for the Presidency in the hopes that Democrats will think it’s a cakewalk for Obama. Why? So they can take more state and local seats as well as the Congress. The real fights in 2012 will be for the Senate and the House. At least, that’s how it looks right now. I qualify all of these statements with the assumption that things can change very fast. But like Digby , I’m having trouble wrapping my head around why they are going all the way to the wall on this insane Paul Ryan plan unless there is some larger strategy at the state level that they’re insane enough to believe will work. She’s right about this: I don’t think anyone with any sense thought they’d go with budget slashing and deficit reduction, abstractions in a world filled with real problems. It will likely have a salutary effect on the long term goal of crippling government. (After all, the Democrats seem to be willing to do some serious cutting themselves — and tax hikes are still considered something akin to child molestation.) But the political damage for the Republicans, in both the long and short term, could be severe. The result is craziness like Newt Gingrich speaking the truth about the whole thing only to be cut off at the knees and brought into line. It either speaks to Republicans’ amazing blind hubris, or there’s some sort of evil plan that hasn’t fully emerged yet. Or, there’s this possibility: I think we’re seeing the decadence and delusion of the end stages of a successful political movement. They pretty much fulfilled the corporate wish list. The only things they haven’t accomplished are the looney wingnut agenda items, which until now they’ve managed to keep at arms length, only giving little bits when necessary to keep the rubes on board. Maybe they just have nothing left to do. Whatever it is, it seems Mitch Daniels will be on the sidelines for it.

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Austin Box often played hurt. Always tried to motivate his teammates. And one practice had the entire defense keeled over in laughter — at the expense of defensive coordinator Brent Venables . Box, Oklahoma’s starting middle linebacker who just received his college degree in criminology and sociology last weekend, died Thursday. He was found unconscious by friend J.T. Cobble, who told authorities he feared Box had overdosed on “pain pills.” Cherokee Ballard, spokeswoman for the state medical examiner’s office, said Friday the office had begun an autopsy on Box, but official cause of death won’t be determined for days. Funeral services have been set for 11 a.m. Friday at Emmanuel Baptist Church in Box’s hometown of Enid. The burial will take place at Enid’s Memorial Park Cemetery. ‘A great guy to be around’ Gerald McCoy was driving home after working out with other former Sooners now in the NFL when the news reached him. “I was driving when I got a text from one of my friends that said, ‘Did you hear about Austin Box ?’” said McCoy, a teammate of Box’s from 2007-09, and now a defensive tackle with the Tampa Bay Buccaneers. “I typed his name on Google, and it said they found him unresponsive at his house and flew him to a hospital. First thing I did was immediately start praying, because unresponsive was already not good. Once I started praying, I simply said, ‘God, just let him wake up, let him respond, let his heart beat, something.’ “When they finally said what they said, it was like shock. I watched the guy when he got recruited, I played with him. We weren’t necessarily the closest of friends, but he was my brother because we were teammates. “He was a great guy to be around, a lot of fun.” Atlanta Falcons linebacker Curtis Lofton, who played with Box from 2006-07, took pride in watching another native Oklahoman tear it up in practice. “What I remember is he came in as a freshman, and he could run like the wind. He was running with the defensive backs. He was really strong, too,” Lofton said. “I remember thinking, ‘This guy can’t be a freshman.’ It made me proud. I’m from Kingfisher, and he was from Enid. We had that Oklahoma pride. “Austin was just a hilarious, hilarious guy. Always made you laugh, a fun guy to be around.” Box had his teammates laughing hysterically one afternoon during practice. “One day, Coach V (Venables) was real hot, Box had messed up. Coach V was trying to push his buttons, get Box angry, looking to see if he had that mean streak,” recalled former OU linebacker Keenan Clayton, now with the Philadelphia Eagles. “While Coach V demonstrated how to shed an offensive lineman, Box shed Coach V to the ground. It surprised everybody. It went silent. Then everybody cried laughing. It was one of the most hysterical things to come out of practice. The highlight of practice for a few months. We never let Coach V live that one down. “Box was a great kid. He kept the energy alive in the meeting rooms, on the field, off the field; he never complained to Coach V about playing time. He wanted his teammates to do good. “It’s really hard to see him go.” ‘Someone you could go to war with’ Box’s football career was defined by injuries. But also overcoming them. Heading into his redshirt freshman season in 2008, Box was the presumptive starter at outside linebacker. But days before the Sooners’ opener, he underwent arthroscopic knee surgery, opening the way for Travis Lewis to take his job. The same season, Box re-emerged in the starting lineup at middle linebacker after starter Ryan Reynolds was lost for the season to injury. But in the regular-season finale at Oklahoma State, Box suffered a sprained knee that knocked him out of the lineup again. In 2009, Box dealt with elbow and knee injuries that ultimately kept him out of two games. And in 2010, a preseason disc issue in his back forced him to sit the first five games of the year. But once again, Box fought his way back onto the field, even though the injury was first believed to be career-ending. By Game 10, he had regained his status as a starter and proved to be crucial to OU’s five-game winning streak to close the season. At Oklahoma State, he made a diving interception in the fourth quarter that helped seal OU’s 47-41 Bedlam victory. Then in the Fiesta Bowl, he set the tone by stuffing running back Robbie Frey behind the line on fourth-and-1 on Connecticut’s second possession. “My memory of Box is that he gave it his all,” said the Carolina Panthers’ Nic Harris, who was Box’s Sooner teammate from 2006-08. “He put it on the line. You knew he was going to do whatever it took. You knew he was someone you could trust. “Someone you could go to war with.” Source: News OK!

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