Economy
Wall Street is moving up bonuses in case the Bush tax cuts do not expire
"Worried that lawmakers will allow taxes to rise for the wealthiest Americans beginning next year, financial firms are discussing whether to move up their bonus payouts from next year to this month ... If Congress does not extend the Bush-era tax cuts for the highest income levels,
Wall Street is moving up bonuses in case the Bush tax cuts do not expire
"Worried that lawmakers will allow taxes to rise for the wealthiest Americans beginning next year, financial firms are discussing whether to move up their bonus payouts from next year to this month ... If Congress does not extend the Bush-era tax cuts for the highest income levels,
A typical worker who earns a $1 million bonus would pay $40,000 to $50,000 more in taxes next year than this year, depending on base salary.
Goldman Sachs is one of the companies discussing how to time bonus season, according to three people who have been briefed on the discussions. Pay consultants who work with major Wall Street companies say that just about every other large bank has also considered such a move in recent weeks."
Fed chair Ben Bernanke hinted more quantitative easing may be coming,
Elizabeth Warren could end free bank accounts, reports Tom Braithwaite: "Elizabeth Warren, the US administration’s consumer financial protection supremo, is working on a deal with banks that would lead to more transparent products but could spell the end of free bank accounts. Ms Warren is seeking - through transparency rather than prohibition - to wean the industry off 'hidden' fees, such as overdraft charges, which can represent up to a third of core revenues for some banks. She is pushing the industry to adopt a shorter mortgage form and clearer disclosure for credit cards."
Democrats should let the Bush tax cuts expire, writes Paul Krugman: "Think about the logic of the situation. Right now, the Republicans see themselves as successful blackmailers, holding a clear upper hand. President Obama, they believe, wouldn’t dare preside over a broad tax increase while the economy is depressed.
And they therefore believe that he will give in to their demands. But while raising taxes when unemployment is high is a bad thing, there are worse things. And a cold, hard look at the consequences of giving in to the G.O.P. now suggests that saying no, and letting the Bush tax cuts expire on schedule, is the lesser of two evils."
European governments could learn from the 2008 American bailouts, writes Alistair Darling: http://nyti.ms/ifpmlt
Adorable, computer-illiterate animals interlude: 31 puppies use laptops incorrectly.
Health Care
Republicans will force Democrats to choose between Medicare or health-care reform's public health initiative, reports Sarah Kliff: "Congressional Republicans are hoping to put Democrats in a no-win new year's jam: defund a big chunk of their health care overhaul or slash Medicare payments instead. Despite rampant repeal rhetoric, Republicans have so far struggled to dismantle any part of health reform. Now, they see a new path forward: pilfer health reform dollars to pay for the next 'doc fix,' the must-pass patch to Medicare doctor payments. Republican Senate aides familiar with the issue told POLITICO they are seriously looking at the new law's $15 billion public health commitment to finance a one-year doc fix in the next session of Congress."
The federal government is compiling a database of federal employees' health records: http://wapo.st/f0ndee
Arizona is leading the country in health care cuts, reports Kevin Sack: "The options available to states for cutting Medicaid have been limited because the federal stimulus package and the health care law have required them to maintain eligibility levels. That has left states to cut payments to providers and trim benefits not required by federal regulations.
Many states, including Arizona, have done both. A September report by the Kaiser Family Foundation found that 39 states cut provider payments and 20 cut optional benefits in their 2010 fiscal years, with similar numbers planning to do so in 2011. Arizona reduced Medicaid payments to doctors by 5 percent last year and has frozen payments to hospitals and nursing homes for two years. All providers will undergo another 5 percent cut on April 1, Ms. Carusetta said."
Domestic Policy
The Senate will vote Wednesday on the DREAM Act
http://link.email.washingtonpost.com/r/BZYGW4/UULQGS/LS0F12/J8QAAQ/R2XRJ/B7/h
The GOP wants to use tax-exempt bonds to force disclosures about pension funding, reports Michael Corkery: "A bill introduced last week by three prominent House Republicans to deny states and localities the ability to sell tax-exempt bonds—the lifeblood for many governments—unless they report their pension-fund liabilities to the Treasury Department...
The goal, the congressmen say, is to get a better handle on funding woes of public pensions, which they say are not always forthcoming about the true extent of their financial exposure."
The Obama administration will require cars to have rear-view video cameras and monitors: http://on.wsj.com/g0t08w
SNES interlude: A guy proposes via EarthBound.
Energy
The Mexican government has issued a draft climate proposal at the Cancun summit, reports Fiona Harvey: "At the weekend, the Mexican hosts published a draft negotiating text that would require countries to try to prevent global warming of more than 2ºC above pre-industrial levels - viewed by scientists as the safety limit - while giving options for providing funding to developing countries and protecting forests. Jake Schmidt, of the US environmental group Natural Resources Defense Council, said: 'This text sets the stage for an agreement, but only if countries find ways to compromise. Narrowing down the differences that remain will not be easy.'"
Republicans are resisting attempts to regulate "fracking" http://politi.co/gjZYXA
Billions in ethanol subsidies could pass in the lame duck session, reports Darren Goode: "Senate Finance Committee Chairman Max Baucus (D-Mont.) undoubtedly gave comfort to backers of the corn-based gasoline additive when he included a sought-after one-year extension of a key expiring ethanol tax credit as part of a much-larger middle class tax cut package he unveiled Thursday...
The credit cost taxpayers an estimated $5 billion this year and lowering it to 36 cents would bring the annual cost down to $3.8 billion. Baucus also proposed extending for a year the 54-cent-per-gallon tariff on imported ethanol, as well as extending a small ethanol producer’s tax credit through next year at 8 cents per gallon."
read more @ http://www.washingtonpost.com/wp-srv/sectionfronts/business/economy/index.html?nid=roll_economy
The federal government is compiling a database of federal employees' health records: http://wapo.st/f0ndee
Arizona is leading the country in health care cuts, reports Kevin Sack: "The options available to states for cutting Medicaid have been limited because the federal stimulus package and the health care law have required them to maintain eligibility levels. That has left states to cut payments to providers and trim benefits not required by federal regulations.
Many states, including Arizona, have done both. A September report by the Kaiser Family Foundation found that 39 states cut provider payments and 20 cut optional benefits in their 2010 fiscal years, with similar numbers planning to do so in 2011. Arizona reduced Medicaid payments to doctors by 5 percent last year and has frozen payments to hospitals and nursing homes for two years. All providers will undergo another 5 percent cut on April 1, Ms. Carusetta said."
Domestic Policy
The Senate will vote Wednesday on the DREAM Act
http://link.email.washingtonpost.com/r/BZYGW4/UULQGS/LS0F12/J8QAAQ/R2XRJ/B7/h
The GOP wants to use tax-exempt bonds to force disclosures about pension funding, reports Michael Corkery: "A bill introduced last week by three prominent House Republicans to deny states and localities the ability to sell tax-exempt bonds—the lifeblood for many governments—unless they report their pension-fund liabilities to the Treasury Department...
The goal, the congressmen say, is to get a better handle on funding woes of public pensions, which they say are not always forthcoming about the true extent of their financial exposure."
The Obama administration will require cars to have rear-view video cameras and monitors: http://on.wsj.com/g0t08w
SNES interlude: A guy proposes via EarthBound.
Energy
The Mexican government has issued a draft climate proposal at the Cancun summit, reports Fiona Harvey: "At the weekend, the Mexican hosts published a draft negotiating text that would require countries to try to prevent global warming of more than 2ºC above pre-industrial levels - viewed by scientists as the safety limit - while giving options for providing funding to developing countries and protecting forests. Jake Schmidt, of the US environmental group Natural Resources Defense Council, said: 'This text sets the stage for an agreement, but only if countries find ways to compromise. Narrowing down the differences that remain will not be easy.'"
Republicans are resisting attempts to regulate "fracking" http://politi.co/gjZYXA
Billions in ethanol subsidies could pass in the lame duck session, reports Darren Goode: "Senate Finance Committee Chairman Max Baucus (D-Mont.) undoubtedly gave comfort to backers of the corn-based gasoline additive when he included a sought-after one-year extension of a key expiring ethanol tax credit as part of a much-larger middle class tax cut package he unveiled Thursday...
The credit cost taxpayers an estimated $5 billion this year and lowering it to 36 cents would bring the annual cost down to $3.8 billion. Baucus also proposed extending for a year the 54-cent-per-gallon tariff on imported ethanol, as well as extending a small ethanol producer’s tax credit through next year at 8 cents per gallon."
