Harry Reid

Post image for Will the Super Committee Legalize Online Poker?

Online poker enthusiasts are betting the house (or insert other painful pun here) on the possibility that Internet poker legislation will be added to the congressional super committee as a means of coming up with revenue that will help to achieve the $1.5 trillion in deficit reduction the committee is required to come up with by November 23. Internet poker legislation is, in this case, a subset of Internet gambling which would include games like blackjack, roulette, online slot machines, etc.

The evidence for passage via super committee is mostly circumstantial, but there is quite a bit of it:

1. Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Jon Kyl (R-Ariz.) recently co-wrote a letter to the Department of Justice asking them to “reiterate the Department’s longstanding position that federal law prohibits gambling over the Internet, including intra-state lotteries.” Speculation continues over the purpose of this letter, but the smart money is that Reid and Kyl have reached a deal whereby Kyl will not stand in the way of some form of regulated online poker, as long as it excludes other forms of online gambling as Kyl still hates freedom. Kyl has been a historical enemy of online gambling, though he has recently weakened his stance on online poker. It’s also worth noting that Kyl is serving his last term in the Senate, so he might view a deal that he has control over as better than a deal written without him after his retirement.

2. Reid was recently quoted as telling the Las Vegas Review-Journal that Internet poker legislation “will get done” and that it will be “good for Nevada.” Harrah’s Harry Reid is earning those campaign contributions. There aren’t comprehensive estimates of the potential revenue to be gained by gambling legalization, but the estimates I’ve seen place revenue somewhere between $20-40 billion over the next decade. Not a huge dent by any means, though it might be preferable to $40 billion in spending cuts that will be highly contested by a variety of interest groups. (Side note: Internet poker players across the nation are looking desperately at the Las Vegas Review-Journal reporters for a more substantive article on that giant tease of a tweet.)

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Post image for Regulation of the Day 166: Cowboy Poetry

This year’s budget battle is especially heated. Democrats want the federal budget to be $3.7 trillion. Republicans want it to be $3.6 trillion. Both sides are willing to shut down the federal government rather than give in.

That’s where cowboy poetry, of all things, comes in. This traditional American art form, which I’d never heard of until today, has suddenly become the latest front in the epic struggle over the size and scope of government.

It is currently official federal policy to financially support cowboy poetry. But the GOP wants to cut $61 billion, or 1.6 percent, out of President Obama’s proposed budget. And cowboy poetry funding is on the chopping block.

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With 2011 a month and a half away, the ethanol industry is pushing full steam ahead for a renewal of the tax credit and tariff provided to support the industry. There seems to be ample opportunity to push this legislation, as it could be attached to either any energy or tax legislation that makes it way through Congress. Rent-seeking lobbyists and politicians are out in full force hoping the river of cash doesn’t run dry:

A group of senators have pressed Harry Reid over concerns that the expansion of ethanol is being constrained by “marketplace limitations.” It also implies that eventually the ethanol industry will be ready to leave the government teat, though we must ensure this isn’t done prematurely and that there is ample time for “broader discussions” on how to address the limitations facing biofuels (hint: they aren’t cost competitive).

The ethanol lobby is also out in full force, attempting to scare politicians over potential job losses. Should they get much attention to their cause, the U.S. will be seeing increased amounts of flex-fuel vehicles and billions of dollars wasted to fund ethanol pipelines and pumps around the country.

Finally, Senator Harkin (D-Iowa) threatened to oppose electric vehicles if his colleagues don’t support biofuel policies. Politics at its best. Let’s hope they can’t come to an agreement and stop the subsidies for both.

Need another reason to oppose ethanol subsidies? We are now subsidizing European drivers because our ethanol producers are receiving tax credits for ethanol exported to the EU.

Image credit: Rascaille Rabbit’s flickr photostream.

Unemployment averaged about 5.2 percent under both Clinton and Bush, but rose to an average of 9.43 percent under Obama (the current rate is at least 9.6 percent, and may rise to over 10 percent next year).  See this graph.  The unemployment rate began rising in 2007, after House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry Reid (D-Nev.) took charge of Congress (their control of Congress led to massive increases in federal spending).  It rose further after passage of the $800 billion stimulus package under Obama.  48 out of 50 states have lost jobs since passage of the stimulus package.  The Obama administration mistakenly said the stimulus would keep unemployment under 8 percent.

As noted earlier, the stimulus package contained wasteful “green jobs” funding, 79 percent of which went to foreign firms, effectively sending American jobs overseas.  A recent biofuel program actually wiped out jobs rather than creating them as intended, while costing taxpayers a lot of money.  New EPA rules are expected to wipe out at least 800,000 jobs, and the EPA is considering new ozone rules that could wipe out 7.3 million jobs. The stimulus package contained provisions that wiped out thousands of jobs in America’s export sector.  New laws backed by Obama, and Obama Administration regulations governing employers, have discouraged employers from hiring new employees.

Senate Majority Leader Harry Reid (D-Nev.) mothballed cap-and-trade legislation when it became apparent that he could not muster the three-fifths super-majority required to end a Republican filibuster. Because coal-state Democrats don’t like cap-and-trade either, assembling the requisite 60 votes to stop a filibuster was never easy. It became more difficult after Democrats lost their 60-seat majority with the election of Republican Senator Scott Brown of Massachusetts.

Unsurprisingly, sore losers are now calling for a change in Senate rules to abolish the filibuster or lower the number of votes required for cloture.

Congressional Quarterly Online reports that the BlueGreen Alliance, a coalition of labor unions and environmental organizations hawking cap-and-trade as a font of ”green jobs,” and a group of freshmen Democratic Senators led by Tom Udall of New Mexico, are calling for a change in Senate rules.

There’s just one small problem. It takes a two-thirds (67-vote) supermajority to change Senate rules. To belabor the obvious, two-thirds is more than three-fifths. If cap-and-traders were strong enough to change the rules, they wouldn’t need to change them — they could already easily overcome GOP filibusters.

If BlueGreenies can’t see what a pickle they’re in, they should try reading Aristophanes, the master of Greek comic poetry. 

Aristophanes’ play Ecclesiazusae, “Assemblywomen” or “Congresswomen,” is a ribald satire on egalitarian excess. Although written millennia ago, it is spot-on relevant in the Age of Reid, Pelosi, and Obama. 

As the play opens, a cabal of women led by Praxagora don fake beards, sneak into the Athenian Assembly, and agitate for a law to establish the rule of women. They gain the support of enough men to pull it off, because Athenians crave change and the rule of women is the only thing they have not yet tried.

Praxagora and her cohorts claim their agenda is to end all injustice, i.e., inequality. They set up cradle-to-grave welfare and institute a regime of free love in which every man may sleep with every woman.

To ensure that not even the natural assets of youth will be allowed to create inequality, Praxagora decrees that before a young man may sleep with a beautiful young woman, he must first sleep with an ugly old hag. Conversely, before a young woman may sleep with a stud, she must gratify a geezer. 

But, as Orwell was to observe centuries later, under socialism, some are more equal than others. Praxagora, you see, is married to a flatulent dotard named Blepyrus, so she has already done her duty to the elderly. She is now free to consort with as many young bucks as she pleases. It’s kinda like cap-and-trade, in which energy-rationing profiteers reap windfalls (regulatory rents) at public expense in the name of saving the planet.

To pass the Kerry-Lieberman bill, BlueGreenies would have to sneak into the Senate, don Republican disguises, and give Tom Udall and his pals a 67 vote super-majority.

Obviously, that’s not gonna happen, not this Congress or next, because fake beards only work in comedy.

There won’t be any reform of Fannie Mae and Freddie Mac, the corrupt, government-sponsored mortgage giants that even Obama administration officials admit were at the “core” of “what went wrong” in the financial crisis.

The “Obama Administration says Fannie, Freddie reform” is “‘too hard,’” reports the Washington Examiner.

Last week, the Senate passed a 1,500 page financial “reform” bill.  But it contained no meaningful reform, and won’t do anything to prevent the next financial crisis, as even liberals like Clinton’s Labor Secretary Reich have admitted.

In a party-line vote, Senate Democrats earlier blocked any reform of Fannie Mae and Freddie Mac.

(Obama received $125,000 in contributions from these mortgage giants as a Senator, second only to the corrupt Senator Chris Dodd, who is retiring this year due to his financial scandals.  Dodd is the chief drafter of the financial “reform” bill.)

The so-called financial “reform” bill would give government officials the ability to nationalize businesses that they claim are at risk of failing — and block meaningful judicial review of such seizures by shareholders alleging violations of their constitutional rights.  (That will increase the ability of presidents to shake down businesses for donations to their political allies, since a business in danger of being seized by the government will try to curry favor with government officials, the way the drug manufacturers are currently running ads for Senate Democratic Leader Harry Reid in order to curry favor with him and the Obama administration.)

The financial “reform” bill’s House architect, Barney Frank, boasts that it will create “death panels” for American companies (this is the same Barney Frank who for years blocked any reform of the corrupt mortgage giants Fannie Mae and Freddie Mac).

The Obama administration earlier lifted a $400 billion limit on bailouts for Fannie Mae and Freddie Mac, two mortgage giants known as the Government-Sponsored Enterprises (GSEs).   Soon, they will be receiving much more: “Late last year, the Obama administration pledged to cover unlimited losses through 2012 for Freddie and Fannie,” reports the New York Times.

At the direction of the Obama administration, Freddie Mac ran up more than $30 billion in losses to bail out mortgage borrowers, some of whom have high incomes.  Federal regulators sought to make Freddie Mac hide the resulting losses from the SEC and the public.)  By contrast, the Republican alternative, rejected by the Senate, aimed “to wind down, and break up” the mortgage giants and “limit taxpayer exposure” to their losses.

The Obama administration showered the mortgage giants’ executives with $42 million in compensation.

Fannie and Freddie helped spawn the mortgage crisis by acting as loan toilets, buying up risky mortgages and thus creating an artificial market for junk.  “From the time Fannie and Freddie began buying risky loans as early as 1993, they routinely misrepresented the mortgages they were acquiring, reporting them as prime when they had characteristics that made them clearly subprime.”  They paid their CEOs millions, and engaged in massive accounting fraud — $6.3 billion at Fannie Mae alone — to increase the size of their managers’ bonuses.  As Government-Sponsored Enterprises, they were exempt from the capital requirements that apply to private banks, so they did not have enough reserves to cover their losses when their mortgages started defaulting.

Banking expert Peter Wallison, who warned for years about the risky practices of Fannie and Freddie, said the financial “reform” bill would lead to “bailouts forever,” contrary to Obama’s claims.

Government pressure on banks to make loans in economically-depressed neighborhoods was a major cause of the mortgage crisis.  That pressure will increase under the financial “reform” legislation.  Legislators approved Obama’s proposal to create a new consumer “protection” agency.  But it may harm rather than help consumers.  Why?  “The agency would be in charge of enforcing the Community Reinvestment Act, a law that prods banks to make loans in low-income communities.”  It would do so without regard for banks’ financial safety and soundness, even though the Community Reinvestment Act was a key contributor to the financial crisis.

With the nomination of former SEIU associate general counsel Craig Becker to the National Labor Relations Board (NLRB) most likely dead in the Senate, the question now turns as to whether President Barack Obama will recess-appoint him to the Board. Senate Majority Leader Harry Reid and AFL-CIO President Richard Trumka have both urged Obama to go the recess appointment route.

Organized labor went all-out for Obama during the 2008 election cycle, so union bosses are likely to put considerable pressure on Obama to recognize their efforts by moving forward on their policy goals, of which Becker’s nomination to the Board is a major one. However, Obama has other priorities, as well, mainly his stalled health care reform effort, for which he will need to spend political capital. Whether Obana is willing to spread that political capital around (to borrow his own phrase) would likely be a difficult decision for him.

Unions are so keen on Becker because of his radical anti-employer views. He has stated that employers should have no say in the unionization of their employees, and that changes to facilitate organizing could be advanced through the NLRB’s adjudicating process. The latter would allow unions to skew the law in favor of unionization, something they have tried but failed to do as the misnamed Employee Free Choice Act (EFCA) remains stuck in the Senate. With Massachusetts’ Scott Brown becoming the 41st Republican in the Senate, the chances for the Democrats getting EFCA through a filibuster look even slimmer.

Whatever happens, the defeat of cloture on Becker’s nomination is good news for free enterprise and for the economy. If recess-appointed,  Becker is almost certain to not be confirmed, so would never get to serve a full term. Therefore, whatever havoc he could cause would be limited; some cases would come before him, but others that would have, were he to serve a full term, would not. If Obama were to nominate somebody else, however friendly to organized labor, it is almost impossible to imagine somebody worse than Becker.

For more on Becker, see here.

Richard Morrison, Jeremy Lott and the American Spectator’s Jim Antle collaborate on Episode 78 of the LibertyWeek podcast. We cover the reverberations from Scott Brown’s Senate election, Obama’s 77% disapproval rating among investors, the 1st Amendment verdict in the Citizens United case, the shame of UN climate science and a new hope for Haiti.

On Saturday, the Senate voted 60-to-39, along party lines, to press towards passage of a massive health care bill, by blocking a Republican filibuster.  Senators ignored the fact that the bill received a failing grade from health care experts like the Dean of Harvard Medical School, since it will raise taxes, deficits, and medical costs, while reducing lifesaving medical innovations.

Afterward, however, the bill drew criticism even from moderate Democrats who usually support the Obama administration, which backs the bill.  Veteran Washington Post editorialist David Broder called the bill a “budget buster in the making,” saying it will violate President Obama’s “pledge that health insurance reform will not add to our federal budget deficit over the next decade.”  He pleaded with the Obama administration and Congress not to “pass along unfunded programs to our children and grandchildren.”

In the Examiner, a Democrat who backed Obama in 2008 criticized the administration for backing a health care bill that violates Obama’s campaign promises by raising taxes on the middle class, citing the bill’s many tax increases, such as its tax on uninsured people and taxes on cosmetic surgery and other medical procedures.

Earlier, Tennessee Governor Phil Bredesen (D) criticized ObamaCare for driving up state spending and budget deficits, calling it “the mother of all unfunded mandates.”

Washington Post columnist Robert Samuelson today called ObamaCare a generational rip-off.  Earlier, he noted that the health care bill is “hypocritical” and “dishonest” and aggravates the worst features of the “status quo.”

In the Senate, all Democrats voted for the bill.  But many received payoffs for doing so.  And there really are no “moderate” Democrats left in the Senate: most of its so-called “moderate” Democrats are not moderate or conservative on anything except on a handful of social issues needed to survive in a “red state,” like gun control.  No Senate Democrat today deviates from the liberal party line as often as the moderate Democrats who once served in the Senate, like Senators Alan Dixon of Illinois and J. James Exon of Nebraska.

As I noted yesterday, Senate Majority Leader Harry Reid (D-Nev.) lined up the 60 votes through payoffs to wavering Senators and powerful unions (some mismanaged unions will receive a taxpayer bailout of their health plans, to the tune of up to $10 billion).

The Dean of Harvard Medical School recently gave Obama’s health care plan a “failing grade,” saying it will harm America’s health and finances, and hamper medical innovations needed to save patients’ lives.  Dean Jeffrey S. Flier wrote in The Wall Street Journal that along “with dozens of health-care leaders and economists,” he had concluded that the bill “will markedly accelerate national health-care spending,” would harm care “by overregulating the health-care system in the service of special interests such as insurance companies,” and would reduce “our capacity to innovate and develop new therapies” that save lives.

Other experts agree.  The health care “reform” bill backed by President Obama “would reduce senior care,” increase “medical costs,”  and “could jeopardize access to care for millions,” report health care experts at the federal Centers for Medicare and Medicaid Services.  The House recently passed a similar bill by the razor-thin margin of 220 to 215.

The bill will raise taxes on the middle class.  It will increase taxes on individuals, employers, and hospitals, impose new taxes on medical devices and cosmetic surgery, and levy a 40% tax on health-care plans above $8,500.  It will increase the deficit, drive up state government spending, and cost taxpayers at least twice as much as predicted.  It is one of the most expensive bills of all time.

It contains special-interest pork, such as payoffs for trial lawyers, and racial preferences that drew criticism from the U.S. Commission on Civil Rights. The bill restricts national competition in health insurance, which is permitted in countries with cheaper health care.

ObamaCare spends money on frills like “cultural competency,” while cutting spending on crucial things like anesthesia.

“ObamaCare is all about rationing,” and tax increases, says one of Obama’s own economic advisers, Martin Feldstein.

Fact-checkers say Obama is lying about health care. Obama often contradicts himself. In the very same speech, Obama claimed that Medicare is “unsustainable” and “running out of money,” then contradicted himself by claiming that “Medicare is a government program that works really well,” making it a model for national health care.

CNN noted that Obama’s plan would take away “5 freedoms,” contradicting Obama’s claim that the bill will leave you free to choose your doctor and keep your healthcare plan without government interference.

The bill does nothing to curb massive waste and fraud in existing government health care systems like Medicare and Medicaid, even though it proposes to make massive cuts in Medicare (cuts so painful that most of them will never happen: year after year, Congress waives “the annual cut in fees paid by Medicare to physicians” mandated by an earlier law.  The cuts were added to the bill only to reduce its apparent cost.  As economist and former Congressional Budget Office director Douglas Holtz-Eakin notes in The Wall Street Journal, the promised cuts to pay for ObamaCare will not happen: “Senate Democrats chose to ignore this reality and rely on the promise of a cut to make their bill add up. Taking note of this fact . . . destroys any pretense of budget balance.”)

Backers of ObamaCare have refused to cut medical costs through malpractice reform, with Senate Majority Leader Harry Reid saying that such reforms would save “only” $54 billion.  The Pacific Research Institute estimates that just one type of cost that could be reduced through malpractice-lawsuit reform — defensive medicine — costs around $200 billion annually (which is almost as much as France spends annually on health care for all of its citizens; like most countries, France has no punitive damages, and fewer lawsuits against doctors).

One reform opposed by the Democrats — setting up specialized health tribunals to hear malpractice cases — would be particularly helpful. Replacing uninformed juries with specialized health courts would provide more consistent rulings from case to case, eliminate meritless cases, reduce defensive medicine, and more speedily compensate injured people who truly are victimized by doctors’ carelessness. Such tribunals already exist in countries like “Sweden, Denmark, Finland, Iceland and New Zealand.”

Martin Feldstein, one of Obama’s own advisors, has said that Obama’s health-care plan would explode the federal budget deficit and lead to “crippling deficits,” as well as “higher taxes, debt payments, and interest rates” that would cut America’s standard of living. Feldstein also noted that Obama’s health-care plan would harm people with insurance, and predicted that it would lead to massive tax increases. Other analysts have predicted that it will drive up medical costs and inflation.

Obama has relied on $2 trillion in imaginary savings to pay for healthcare “reform.”

The healthcare bill is on the verge of passing the Senate, despite the fact that it has received a failing grade from healthcare experts like the Dean of Harvard Medical School, and the fact that it will increase taxes, deficits, and medical costs, while reducing lifesaving medical innovations.

In a 60-to-39 vote, Senators voted to quash a Republican filibuster, moving it closer to a final vote where it will need the votes of only 51 of the Senate’s 60 Democrats to pass it (60 votes are needed to stop a filibuster). The vote was along strict party lines: all 60 Democrats voted to advance the bill.

Senate Majority Leader Harry Reid (D-Nev.) lined up the 60 votes through payoffs to wavering Senators and left-wing unions (some mismanaged unions will receive a taxpayer bailout of their health plans, to the tune of up to $10 billion).

The Dean of Harvard Medical School recently gave Obama’s healthcare plan a “failing grade,” saying it will harm America’s health and finances, and hamper medical innovations needed to save patients’ lives.  Dean Jeffrey S. Flier wrote in the Wall Street Journal that along “with dozens of health-care leaders and economists,” he had concluded that the bill “will markedly accelerate national health-care spending,” would harm care “by overregulating the health-care system in the service of special interests such as insurance companies,” and would reduce “our capacity to innovate and develop new therapies” that save lives.

Other experts agree.  The health-care “reform” bill backed by President Obama “would reduce senior care,” increase “medical costs,”  and “could jeopardize access to care for millions,” report health care experts at the federal Centers for Medicare and Medicaid Services.   It is one of the most expensive bills of all time.  The House recently passed a similar bill by the razor-thin margin of 220 to 215.

The bill will raise taxes on the middle class.  It will increase taxes on individuals, employers, and hospitals, impose new taxes on medical devices and cosmetic surgery, and levy a 40% tax on health-care plans above $8,500.  It will increase the deficit, and cost taxpayers at least twice as much as predicted.

It contains special-interest pork, such as payoffs for trial lawyers, and racial preferences that drew criticism from the U.S. Commission on Civil Rights. The bill restricts national competition in health insurance, which is permitted in countries with cheaper health care.

ObamaCare spends money on frills like “cultural competency,” while cutting spending on crucial things like anesthesia.

“ObamaCare is all about rationing,” and tax increases, says one of Obama’s own economic advisers, Martin Feldstein.

Fact-checkers say Obama is lying about health care. Obama often contradicts himself. In the very same speech, Obama claimed that Medicare is “unsustainable” and “running out of money,” then contradicted himself by claiming that “Medicare is a government program that works really well,” making it a model for national health care.

CNN noted that Obama’s plan would take away “5 freedoms,” contradicting Obama’s claim that the bill will leave you free to choose your doctor and keep your healthcare plan without government interference.

The bill does nothing to curb massive waste and fraud in existing government healthcare systems like Medicare and Medicaid, even though it proposes to make massive cuts in Medicare (cuts so painful that most of them will never happen: year after year, Congress waives “the annual cut in fees paid by Medicare to physicians” mandated by an earlier law.  The cuts were added to the bill only to reduce its apparent cost.  As economist and former Congressional Budget Office director Douglas Holtz-Eakin notes in the Wall Street Journal, the promised cuts to pay for ObamaCare will not happen: “Senate Democrats chose to ignore this reality and rely on the promise of a cut to make their bill add up. Taking note of this fact . . . destroys any pretense of budget balance.”)

Backers of ObamaCare have refused to cut medical costs through malpractice reform, with Senate Majority Leader Harry Reid saying that such reforms would save “only” $54 billion.  The Pacific Research Institute estimates that just one type of cost that could be reduced through malpractice-lawsuit reform — defensive medicine — costs around $200 billion annually (which is almost as much as France spends annually on healthcare for all of its citizens; like most countries, France has no punitive damages, and fewer lawsuits against doctors).

One reform opposed by the Democrats — setting up specialized health tribunals to hear malpractice cases — would be particularly helpful. Replacing uninformed juries with specialized health courts would provide more consistent rulings from case to case, eliminate meritless cases, reduce defensive medicine, and more speedily compensate injured people who truly are victimized by doctors’ carelessness. Such tribunals already exist in countries like “Sweden, Denmark, Finland, Iceland and New Zealand.”

Martin Feldstein, one of Obama’s own advisors, has said that Obama’s health-care plan would explode the federal budget deficit and lead to “crippling deficits,” as well as “higher taxes, debt payments, and interest rates” that would cut America’s standard of living. Feldstein also noted that Obama’s health-care plan would harm people with insurance, and predicted that it would lead to massive tax increases. Other analysts have predicted that it will drive up medical costs and inflation.

Obama is relying on $2 trillion in imaginary savings to pay for his health care plan. He is also relying on tax increases, which breaks Obama’s campaign promise not to raise taxes on the middle class.  Obama’s support for the bill, which will massively increase the deficit in the future, also breaks his promise not to sign a healthcare bill that adds even “one dime” to the deficit, now or in the future.