Thursday, November 4, 2010

Barry As President: Forgiving GM From Paying 45 Billion Dollars In Taxes (Is That Patriotic According To Biden?)


General Motors Co. will drive away from its U.S.-government-financed restructuring with a final gift in its trunk: a tax break that could be worth as much as $45 billion.

GM, which plans to begin promoting its relisting on the stock exchange to investors this week, wiped out billions of dollars in debt, laid off thousands of employees and jettisoned money-losing brands during its U.S.-funded reorganization last year.

Now it turns out, according to documents filed with federal regulators, the revamping left the car maker with another boost as it prepares to return to the stock market. It won't have to pay $45.4 billion in taxes on future profits.

The tax benefit stems from so-called tax-loss carry-forwards and other provisions, which allow companies to use losses in prior years and costs related to pensions and other expenses to shield profits from U.S. taxes for up to 20 years. In GM's case, the losses stem from years prior to when GM entered bankruptcy.

Usually, companies that undergo a significant change in ownership risk having major restrictions put on their tax benefits. The U.S. bailout of GM, in which the Treasury took a 61% stake in the company, ordinarily would have resulted in GM having such limits put on its tax benefits, according to tax experts.

But the government, in a little-noticed ruling last year, decided companies that received bailout money under the Troubled Asset Relief Program won't fall under that rule.

"The Internal Revenue Service has decided that the government's involvement with these companies, both its acquisitions plus its disposals of their stock, means they should be exempt" from the rule, said Robert Willens, a New York tax consultant who advises investment banks and hedge funds.

The government's rationale, said people familiar with the situation, is that the profit-shielding tax credit makes the bailed-out companies more attractive to investors, and that the value of the benefit is greater than the lost tax payments, especially since the tax payments would not exist if the companies fail.

GM declined to comment.

The $45.4 billion in future tax savings consist of $18.9 billion in carry-forwards based on past losses, according to GM's pre-IPO public disclosure. The other tax savings are related to costs such as pensions and other post-retirement benefits, and property, plants and equipment.

The losses were incurred by "Old GM," the company that remained in bankruptcy after the current "New GM" resulted from the reorganization last June.

Investors typically view tax-loss carry-forwards losses as important assets in bolstering a company's balance sheet.

GM's chief domestic rival, Ford Motor Co., last year adopted a plan to preserve deferred "tax assets" which stood at $17 billion at the end of 2009. Ford declined to comment on the GM tax ruling.

Wednesday, November 3, 2010

2010 Election Night Viewership Tells The Story: FOX News Dominates Again


Unsurprisingly FNC easily won in primetime as well as the 5p-7pm period. CNN pulled ahead of MSNBC but not nearly by the margins separating FNC and CNN.


8-11p ET______MSNBC________CNN__________FNC

P2+_________1,945,000_____2,423,000_____6,957,000
25-54________669,000______1,030,000_____2,431,000

5p-7p_________MSNBC________CNN__________FNC

P2+__________869,000_______945,000______3,092,000
25-54________256,000_______283,000______750,000

Michele Bachman Mocks Chris Matthews And His "Tingly Feeling" Over Barry

Tuesday, November 2, 2010

Black Panther Intimidation Redux: The 2010 Mid-Term Elections

New Black Panther Seen At Polling Place

No Voter Intimidation Reported Tuesday At Poll

PHILADELPHIA - Fox 29 News spotted Tuesday a member of the New Black Panther Party standing outside of a local polling place where voter intimidation was reported two years ago.

The man was seen outside the polling place in North Philadelphia was wearing a pin that indicated his party affiliation, along with a black hat, sunglasses and leather coat.

In footage obtained by Fox News back in 2008, two members of the New Black Panther Party stood outside the same polling place shaking a Billy club and allegedly intimidating voters.

The case was ultimately dropped by the Department of Justice after President Obama's administration came into power, although controversy surrounding the incident's handling has persisted.

Just last month Attorney General Eric Holder was defending the Justice Department's performance on the matter, saying the top career person in the civil rights division made the decision to seek an injunction against one person.

The man seen at the same polling place Tuesday would not answer questions posed by Fox 29 News but was apparently working at the polls as a volunteer and greeting voters.

A check with Philadelphia election officials revealed no voter intimidation reports at the polling location this time. (source)

Barry As President: Keepin' It Real To Only Urban Audiences On Election Day


WASHINGTON (AP) - Even with voting already under way, President Barack Obama furiously worked the phones to urban-format radio stations Tuesday, arguing that his agenda would be "all at risk" if Republicans trampled Democrats.
"We need to keep moving forward, that's why I need folks to vote today," Obama told listeners to KPWR in Los Angeles.

Interrupting the music and chat of the station's morning show, Obama phoned in from the Oval Office to acknowledge voter frustration with the recession-bound economy - and say that even though he's not on the ballot, his agenda is.

"Are we taking the steps now to move us in the right direction, or are going to go back to the policies that got us into that mess in the first place?" he said.

Other calls went to radio stations in Las Vegas, Chicago and Jacksonville, Fla., with large African-American listenership. On Monday, Obama phoned a series of nationally syndicated radio programs.

With polls forecasting major GOP gains - possibly including a controlling majority in the House - Obama also scheduled a postelection news conference for 1 p.m. Wednesday in the White House East Room.

He strove to energize a key Democratic constituency hours after polls opened in the East and Midwest.

On the line to radio station KVEG in Las Vegas, Obama said, "I know things are still tough out there, but we finally have job growth again ... It is all at risk if people don't turn out and vote today."

That call to the state with the nation's highest jobless rate aimed to boost turnout for Senate Majority Leader Harry Reid, locked in a tight contest with Republican tea party-backed candidate Sharron Angle.

"Harry Reid has been my partner," Obama said. "Every poll shows the race between Harry Reid and his opponent neck and neck. We know that if people who voted in 2008 turn out to vote in 2010, Harry will win. if they don't turn out, he will lose."

Obama said losing lawmakers like Reid would make it hard for him to "keep making improvements in the economy."

"Across the board, thing have gotten better over the last two years," Obama said on KPWR. "The question is, can we keep that up? But we can only keep it up if I've got some friends and allies in Congress and in the state houses."

The host and others on the "Radio Big Boy" program were vocal in their support, and told the station's listeners how "cool" is is to have Obama as president.

Toward the end, Obama joked, "I know that everybody's thinking we need to get back to some music," then turned serious.

"The future is yours to shape," he said. "But if you don't get involved, then somebody else is going to shape it for you." (source)

Barry As President: Having To Take Back His Words Again (When Calling All Of Us "Enemies" Backfires)


Reuters) - President Barack Obama said on Monday he should not have used the word "enemies" to describe his political opponents as Republicans sought to make an issue of the comment a day before congressional elections.

Obama, in an interview with talk radio host Michael Baisden, said, "I probably should have used the word 'opponents' instead of enemies."

He was backtracking from a comment he made a week ago in an interview with Univision radio in which he sought to persuade Hispanics to vote for Democratic candidates instead of Republicans.

"If Latinos sit out the election instead of, 'we're going to punish our enemies and we're going to reward our friends who stand with us on issues that are important to us' -- if they don't see that kind of upsurge in voting in this election, then I think it's going to be harder," Obama had said.

Republicans in hot pursuit of control of the House of Representatives in Tuesday voting were drawing attention to Obama's "enemies" comment in hopes of encouraging more turnout by Republican voters.

Hammering home the issue was John Boehner, the Republican who would oust Democrat Nancy Pelosi as House speaker if Republicans win control of the House on Tuesday as most pollsters believe will happen.

"Today, sadly, we have president who uses the word 'enemy' for fellow Americans ... fellow citizens. He uses it for people who disagree with his agenda of bigger government ... people speaking out for a smaller, more accountable government that respects freedom and allows small businesses to create jobs," Boehner planned to say in Cincinnati.

"Mr. President, there's a word for people who have the audacity to speak up in defense of freedom, the Constitution, and the values of limited government that made our country great. We don't call them 'enemies.' We call them 'patriots,'" he planned to say.

Obama told Baisden that he was talking about opponents of a comprehensive overhaul of the U.S. immigration system. Hispanics have been disappointed that Obama has not pushed ahead on immigration legislation, which Republicans oppose. (source)

Democrats Outspend G.O.P. in TV Ads in House Races


Despite a deluge of campaign spending over the last few months by Republican-leaning outside groups, Democratic candidates and their allies have outspent Republicans over all on television advertising in House races, according to data provided by Kantar Media’s Campaign Media Analysis Group, which tracks political advertising. In Senate races, however, Republicans outspent Democrats.

The most recent numbers available, through Friday, showed that Democratic candidates and their allies spent $142 million on television advertising across all House races in the general election, compared with $119 million by Republican candidates and their backers. In the Senate, Republican candidates and their allies outspent Democrats, $159 million to $120 million.

The Democratic advantage on television spending in House races was something of a revelation, given all the attention that has been garnered this year by the staggering expenditures by Republican-oriented independent groups after a Supreme Court ruling in January that lifted restrictions on corporate political spending.

But it appears that the Republican-leaning groups were able to make a significant impact in many House races by leveling the playing field for underfinanced Republican challengers, who in previous elections might have had little chance against Democratic incumbents.

“Republican groups basically provided the advertising version of bridge loans for the underfunded challengers, running ads before they could go up on the air for themselves,” said Evan Tracey, president of the Campaign Media Analysis Group.

The pro-Republican groups were able to expand the political map, going up early with attack ads against Democratic candidates who had seemed to be in comfortable positions and putting them on the defensive.

What has remained something of an open question, however, was which party ultimately has had the financial upper hand, when spending by party committees and the candidates themselves was added to the spending by outside groups.

Democratic Party committees, for instance, have raised significantly more money than their Republican counterparts. And, in competitive House races, Democratic candidates have generally had a financial edge over their Republican opponents as well.

Making accurate total comparisons is difficult, in part because of limitations in the data available from the Federal Election Commission. A truly comprehensive analysis of candidate spending would also require diving into figures for specific expenditures.

As a result, the tabulations of television spending by the Campaign Media Analysis Group are useful. Those tallies, however, do not include spending on other activities, like radio and direct mail or local cable TV ads.

The overall Democratic spending advantage on television in the House holds true not only for all races, but also when just the 105 races that the group classifies as competitive are considered. Democrats have so far outspent Republicans on television in 68 of those 105 contests. In all House races, Republican-leaning outside groups spent $38 million on television, compared with $13 million by Democratic-oriented groups. But Democratic candidates outspent Republican ones, $97 million to $49 million. The Democratic Congressional Campaign Committee also outspent the national Republican Congressional Committee, $30 million to $26 million.

In the Senate, television spending by the candidates has been roughly equal, with both sides spending more than $80 million, while Republican-leaning third-party groups have swamped their Democratic counterparts, $58 million to $21 million. The Democratic Senatorial Campaign Committee has outspent its Republican counterpart, but the difference comes nowhere close to eliminating the gap among independent groups.

Nevertheless, Democratic candidates and their allies have managed to battle Republicans essentially to a draw on TV spending in certain crucial Senate contests — notably, Nevada and Colorado, according to the data. They had a slight advantage in Washington. But in races in Illinois, Missouri and Pennsylvania, Republicans had the edge. (source)

Monday, November 1, 2010

On 2010 Election Eve, Barry Can't Fill A 13,000 Seat Auditorium



CLEVELAND — President Obama wrapped up a weekend of last-minute campaigning in Ohio on Sunday, addressing Democrats in an indoor arena that, in a sign of the “enthusiasm gap” that the president is working so hard to close, was little more than half full.

About 8,000 people attended the Democratic National Committee’s Moving America Forward’ rally at Cleveland State University’s Wolstein Center, a hall where the capacity is 13,000. The rafters were largely empty.

Organizers noted the president was competing on a Sunday afternoon with church, football and Halloween. And Mr. Obama drew a huge crowd of about 35,000 when he was in nearby Columbus, Ohio, in an earlier October rally. Still, the thin crowd was perhaps a foreboding sign in the waning days of the midterm races, when Mr. Obama, who was joined Sunday by Vice President Joseph R. Biden Jr., considers getting Democrats to the polls his most important mission.

Mr. Obama was in Ohio to give a final push to Gov. Ted Strickland, who is in a tight race for re-election. Lee Fisher, the lieutenant governor and Democratic Senate candidate, also attended, and Mr. Obama gave a pitch for him as well, though he is trailing badly behind his Republican opponent.

“We’ve got to get Cleveland out to vote!” Mr. Obama said. “We’ve got to get everybody in Ohio out to vote.’’

He made a pitch for early voting: “There is early voting just a few blocks from here, so you can go right after this rally if you haven’t voted. Because if everyone who fought for change in 2008 shows up to vote in 2010, we will win this election, I’m confident that we will.’’(source)

MSM Diary: What Media Bias? (Reporters Accidentally record Their Plans To Wreck GOP Campaign Rally)



UPDATE:

From the Miller Campaign:

Now the media has gone from trying to create stories to openly lying. The audio was pulled directly from the voicemail message. Nothing was altered. “Everything that was recorded on my phone is what we released without change,” said Randy Desoto.

***

The following voice mail message was inadvertently left on the cell phone of Joe Miller campaign spokesperson Randy DeSoto.

The voices are believed to be those of the news director for CBS Anchorage affiliate KTVA, along with assignment editor Nick McDermott, and other reporters, openly discussing creating, if not fabricating, two stories about Republican nominee for U.S. Senate, Joe Miller.

The following is a transcript of a call recorded after CBS Alaska affiliate KTVA called Joe Miller’s Senate campaign spokesperson. The call failed to disconnect properly. It was later authenticated by McDermott, who sent a text to Randy DeSoto stating, “Damn iPhone… I left you a long message. I thought I hung up. Sorry.”

Clearly the reporters were conspiring to set up some type of smear of Joe Miller. With glee, they even cite a recent controversy over an incident involving the Rand Paul campaign, while discussing how they would spread the story via social media after whatever incident they had in mind came off. It also brings to mind another recent episode that ended with Jerry Brown’s California gubernatorial campaign being caught up in controversy when someone from Brown’s camp called Brown’s opponent, Republican Meg Whitman, a “whore.”

This calls into serious question what type of campaign coverage CBS’ KTVA has been providing Alaskans all along, given their reporters’ willingness to conspire against Miller. (source)

Profiles In Collagen: Nancy "El Duce" Pelosi


It took Democrats in the House of Representatives 40 years to become out-of-touch enough to get thrown out of office in 1994. It took 12 years for the Republicans who replaced them to abandon their principles and be repudiated in 2006. Now it appears that the current Democratic majority has lost voter confidence in only four years.

How did this happen? And what does the increasing speed of voter backlash mean for Republicans who will likely take control next Tuesday?

For answers, I decided to chat up Rep. Brian Baird, a six-term Democrat from Washington state. Even though he's never won re-election with less than 56% of the vote, Mr. Baird is retiring because the brutal congressional commute makes it impossible for him to see his twin five-year-old boys grow up. He's not sticking around, like so many former members of Congress, to lobby inside the Beltway. That allows him to be candid about Congress and his party.

"It's been an authoritarian, closed leadership. That style plus a general groupthink mentality didn't work when Tom DeLay called the shots," Mr. Baird says. "We've made some of the same damn mistakes, and we were supposed to be better. That's the heartbreak."

Mr. Baird, 54, is a loyal Democrat who voted for all of Speaker Nancy Pelosi's legislative priorities, including the stimulus bill, cap and trade and ObamaCare. But he admits all three have serious flaws.

Mr. Baird recalls that he was "very excited" when his party took control of Congress in 2006, but he saw ominous signs early on. Before the 2006 election, he says, Mrs. Pelosi had 30 members working on a rules package to make the House more ethical and deliberative. "We abandoned all that work after the election, and leaders told us we should trust them to clean things up. I don't know a single member of the Democratic caucus who saw the final rules package before they voted on it."

Democrats also watered down efforts to practice fiscal responsibility. "We initially had numbers a bit more honest than the Republicans—we at least included war costs in the budget," he says. "Now we're authorizing programs for three years instead of five in an attempt to pretend we're saving money."

When President Obama was elected in 2008, Mr. Baird was again optimistic that Democrats could bring real reform. But fierce Republican partisanship and the White House decision not to focus on job creation as its "number one, two and three" priority dashed that hope.

"Obama decided we weren't going to have a highway transportation bill because it might have required a gas tax increase," he recalls. After passing a misdirected stimulus bill, Mr. Obama made the fatal error of pushing forward with other priorities: cap and trade, financial services reform, ObamaCare. Each became compromised quickly.

"You don't get real reform by pandering to every special interest. With cap and trade we wound up with a bill that didn't accomplish much, was enormously complicated and expensive." Mr. Baird is especially upset that "good solid members will lose this fall because they took a tough vote for a cap-and-trade bill that never made it through the Senate." He has told environmental groups that they lost sight of the goal of reducing carbon emissions by focusing on the minutia of regulation to achieve it.

For some of the shortcomings of financial regulatory reform, Mr. Baird blames the disillusioning battle over ObamaCare. "When the House had to pass the Senate version of health care unchanged, some members asked why should they invest the mental effort in mastering the details" of financial reform. Mr. Baird found parts of the bill mind-numbing.

Although he voted for it, he says he was troubled that Fannie Mae and Freddie Mac, the entities at the heart of the housing meltdown, weren't addressed. They have clearly exercised undue influence on Capitol Hill, he notes. "When I was first elected I was puzzled why they were holding events in my honor as a mere freshman. I asked myself, why is a federal entity so involved in political activity?"


Regarding health care, his specialty, Mr. Baird gave House Democrats real heartburn. He voted against the first version of ObamaCare in November 2009, because the Congressional Budget Office and the Centers for Medicare and Medicaid Services hadn't yet analyzed the bill's impact on insurance premiums and medical costs.

"What the hell were we doing voting on this? I had labor groups come to me and insist the bill was so important we couldn't wait to know what was in it," he recalls. "I asked them if they were handed a new union contract and told it was so important they had to agree to it without reading it, would they go along?" They continued to insist he vote for the bill and threatened him with a primary challenger.

Mr. Baird had developed his own health-care proposal that drew on his 23 years of experience as a licensed clinical psychologist treating patients with cancer and brain injuries. His plan would have provided universal health care but held down costs through vouchers for the poor, medical savings accounts for the middle class, and reform of malpractice insurance.

He admits to being frustrated that ideas like his never got a fair hearing in a Congress dominated by inertia and interest groups. "Our problems are now so grave we can't afford petty partisanship and closed thinking," he tells me.

The health-care bill experience spurred Mr. Baird to push harder for a "72-hour rule" that would require all non-emergency legislation to be posted online, in final form, for at least 72 hours before a floor vote. "Members are too often asked to make decisions on bills that can be longer than telephone books, and are given only a few hours to actually read them," he complains. "Both parties are guilty, and both should stop doing it."

Mrs. Pelosi eventually allowed a 72-hour pause before the final passage of ObamaCare, and Mr. Baird is pleased that Republicans have agreed to adopt the 72-hour rule if they take the House majority. He just hopes they honor it even when it's inconvenient.

Mr. Baird stands by his vote for ObamaCare, noting that something had to be done for those denied insurance due to pre-existing conditions. But he acknowledges that the bill carried within it the seeds of its unpopularity. These include the nightmare mandate that all companies report to the IRS all of their business-to-business transactions over $600, so the government can capture unreported business income. At a recent forum with small business owners in his district, Mr. Baird was stunned at the complexity of the rules they now must follow.

"I warned my fellow Democrats that the insurance companies they were whacking could increase premiums just before the midterm election and blame them for it," he sighs. "I pointed out that the major benefits wouldn't kick in till 2014, but the costs were up front. I asked them, where was the political win? There was no real answer."

In his new book, "Character, Politics and Responsibility," Mr. Baird argues that in order to afford caring for the needy, liberals will have to challenge "unsustainable entitlements." "I would eliminate the concept of entitlements and move to needs-based social insurance," he says. "The key is to both promote personal responsibility while lowering expenditures by not promising or giving money or other benefits to those who don't need it."

Although Mr. Baird believes that Republicans blocked compromise on ObamaCare and that tea party activists raised false fears, he acknowledges the political harm that Democrats have done themselves. "It looks like we're going to lose the House, possibly badly, and could lose the Senate," Mr. Baird laments. "We will lose a lot of centrists while the people in the party some voters are most mad at survive in safe districts."

"A lot of rethinking is needed" after Democrats take their drubbing, Mr. Baird says, especially since he anticipates "a huge number of retirements" from Democrats unwilling to serve in the minority. He proposes that the House elect an independent speaker who would help drain partisanship from the body. Britain's House of Commons uses such a model.

Democrats, he says, will also have to recognize why they lost touch with voters. "Back in September, we had pollsters and strategists from my party tell members that the mass of people didn't care about the deficit. The mind-boggling lack of reality coming from some of the people who give us so-called advice is stunning."


I ask Mr. Baird what he would tell the incoming class of freshmen Republicans if given the chance to address them before the new Congress convenes. He summarized his bottom line:

"Governing isn't as easy as you think. Many of you have taken pledges that are contradictory—to balance the budget and cut taxes, for example. You must be honest about the numbers, since our annual deficit now exceeds all discretionary spending combined. If you set as your goal to roll back the size of government, you have an obligation to answer the tough questions and show real courage, not just appeal to ideology. Treat the voters like adults." (source)