Political Bulletin

WASHINGTON NEWS

White House Said To Be Priming Public For Health Benefit Tax

As Congress prepares to break for the Fourth of July with healthcare reform legislation unfinished, media reports indicate the White House is priming the public for the possibility of a tax on health benefits to pay for the measure. The reports come as media sources note the President pursues an "outside the Beltway" strategy to build support for reform legislation. CNN's The Situation Room reported, "As you remember, the first President Bush did break a major tax pledge, the whole 'read my lips' situation. Now top White House aides are suggesting President Obama may have to break that pledge, too. The President is now leaving the door open to raising taxes on the middle class in order to pay for health reform."

Roll Call reports White House Press Secretary Robert Gibbs "on Monday declined to reaffirm President Barack Obama's pledge not to raise taxes on families earning under $250,000 per year, calling questions about the promise - asked in the context of a possible tax on health benefits - speculative."

The move comes as Teamsters President James P. Hoffa says in a Roll Call op-ed, "A tax hike on health benefits to pay for health care reform is a bitter, bitter pill for middle-class wage-earners to swallow." Hoffa adds the tax "would destroy employer-sponsored health insurance."

Ed Schultz, host of MSNBC's The Ed Show, played clips of White House senior advisor David Axelrod on NBC's Meet the Press discussing the likelihood that the healthcare reform bill will include a public option. Schultz said that Axelrod's statements indicated that President Obama might "surrender on this issue." Schultz added, "I tell you, the Democrats better not be caving on this. I can't say it enough. Axelrod also refused to rule out the possibility of a tax hike on health insurance benefits. I'm against that. That would be attacking the consumer. No, no, no."

Union Ad Targets Baucus, Conrad Roll Call reports the Laborers' International Union of North America "is targeting Senate Finance Chairman Max Baucus (D-Mont.) and Senate Budget Chairman Kent Conrad (D-N.D.) with a television ad urging the two Senators to resist taxing health insurance benefits as a means to pay for health care reform." LIUNA, "a union representing construction workers, is running the ad on broadcast and cable television stations in Montana and North Dakota, with each specifically tailored toward Baucus and Conrad, respectively."

Firefighter Ruling Draws Partisan Reaction

In what some analysts are casting as a potential setback for Judge Sonia Sotomayor, the High Court yesterday overturned her ruling in an affirmative action case that had been highlighted by opponents of her Supreme Court nomination. ABC World News called the "the sweeping ruling" a "victory for white and Hispanic firefighters who said the city of New Haven discriminated against them because of their race." Sotomayor, "as an appeals court judge...was on a panel that ruled against the white and Hispanic firefighters."

While conservatives used yesterday's ruling to criticize Sotomayor, a number of media reports describe the 5-4 Supreme Court decision as changing the legal standards under which she made her decision as an appeals judge. The CBS Evening News says while "opponents called" the ruling "a legal rebuke of her lower court opinions," her backers "say that she was on solid ground: she was following case law at the time." NBC Nightly News also said that "supporters say" Monday's "decision sets a new legal standard, something she wasn't free to do as a lower court judge."

The AP reports, "Spinning a Supreme Court decision in its favor, the White House said Monday that the justices' reversal of a ruling that...Sotomayor endorsed as an appeals court judge proves that she follows judicial precedent." Robert Gibbs "said the ruling should put to rest claims by Sotomayor 's Senate critics that she's an activist judge." Roll Call, meanwhile, reports that "Democrats moved quickly to counter GOP criticism of...Sotomayor's involvement in" the "controversial affirmative action decision."

Under the headline "Ruling May Not Derail Nominee," the Washington Post says the ruling is "somewhat of an embarrassment, forcing administration officials to explain why the court overturned a controversial decision backed by its prospective next member." The Politico reports that Justice Kennedy 'and the justices in the majority appeared to join those critics who considered Sotomayor's panel unduly dismissive of the case."

The Los Angeles Times reports, "Sotomayor's critics have contended that the way her panel disposed of the case -- through a three-paragraph, unsigned opinion -- was as bad as the decision itself." The Washington Times quotes Senate GOP leader Mitch McConnell saying, "Not only did Judge Sotomayor misapply the law, but the perfunctory way in which she and her panel dismissed the firefighters' meritorious claims of unfair treatment is particularly troubling."

The Financial Times reports that the decision "gave ammunition to conservative opponents of...Sotomayor." USA Today says the ruling "heightened the politics" around Sotomayor's nomination."

USA Today reports that the ruling "is likely to affect employers nationwide trying to ensure that hiring practices do not exclude certain segments of society." The Wall Street Journal reports "the court's decision unsettled the already uncertain role of race in hiring and promotion, attorneys said."

Under the headline "High Court Curves In Conservative Direction," USA Today reports that "the Supreme Court shifted more to the right" this term, imposing "a new hurdle for employers trying to scrap tests and other seemingly neutral practices that favor whites at the expense of racial minorities, or men at the expense of women."

Obama, Clinton Said To Differ On Honduras

As regional leaders held an emergency meeting yesterday in Nicaragua to discuss Sunday's coup in Honduras, both President Obama and Secretary of State Clinton spoke out against the removal of President Manuel Zelaya. A number of media reports, however, saw differences in tone and substance between the Obama and Clinton statements. The CBS Evening News reported that following "talks with Colombian President Alviro Uribe," Obama called Zelaya's removal from office "not legal," and said he "should be reinstated." The AP says Obama's remarks "seemed more blunt than" those made by Clinton. The Washington Post reports, the President said Zelaya's removal was a coup, an "illegal" move that "could set a 'terrible precedent.'" Clinton, however, said the US "was holding off on formally branding it a coup." Her statement "appeared to reflect the US government's caution amid fast-moving events in Honduras."

Fox News' Special Report reported, "The US position on Sunday's involuntary change of power in Honduras is unclear tonight. The nation's top diplomat said one thing early this afternoon, but the Commander in Chief said another later." Obama was shown saying, "We believe that the coup was not legal and that President Zelaya remains the president of Honduras, the democratically elected president there." Fox added that "earlier...Clinton appeared to back off of the OAS demands." Clinton said, "We haven't laid out any demands that we're insisting on, because we're working with others on behalf of our ultimate objectives."

The Washington Times reports, "Obama, acknowledging a 'dark past' in which the US ignored democracy in favor of political stability or geopolitical interests, said America has moved beyond that." The situation in Honduras, ABC World News reported, has also "put...Obama on the same side as the arch US nemesis in the region: Venezuela's Hugo Chavez." But the Administration has not cut off aid or even withdrawn the US ambassador -- clear indications that as strong as the President has condemned the coup, there are limits to the US response."

Clinton's Annoyance With Zelaya Recounted The New York Times reports, "On June 2, Obama administration officials got a firsthand look at the brewing political battle when" Clinton "traveled to Honduras for an Organization of American States conference." Clinton "met with Mr. Zelaya, and he reportedly annoyed her when he summoned her to a private room late in the night after her arrival and had her shake hands with his extended family."

Sign up here to get the US News Political Bulletin emailed to you each morning at 8 a.m.

CAMPAIGN NEWS

McCain Aides Slam Palin

In a lengthy article in the August edition of Vanity Fair -- which appears on the magazine's website -- Todd S. Purdum offers an unflattering look at Arizona Sen. John McCain's (R) 2008 running mate, Gov. Sarah Palin (R), saying, "As Palin has piled misstep on top of misstep, the senior members of McCain's campaign team" are looking back and asking "what were we thinking" trying to promote someone "they believed for certain was nowhere near ready for the job, and might never be." However, Purdum adds, "None of McCain's still-loyal soldiers will say negative things about Palin on the record. Even thinking such thoughts privately is painful for them." The New York Daily News adds, "The Vanity Fair article recounts how strained Palin's relationship was with the McCain advisers."

Sanford Says He Still Has Work To Do

NBC Nightly News reports South Carolina Gov. Mark Sanford (R) yesterday "began his workday with an apology for disappearing for five days to see his mistress in Argentina," but "says he plans to remain in office for the next 18 months." Columbia, South Carolina's, The State adds that Sanford decided not to step down because "his friends worry a resignation would hurt statewide reform efforts he has spearheaded - and that it would impact the 2010 gubernatorial race." The Charleston (SC) Post and Courier adds, "Several legislators said Sanford's resignation would set the state back and slow down much-needed economic development progress to counter the state's 12 percent unemployment rate." And Sanford "also said legislators told him to stay on the job because leaving it would change the landscape for the 2010 governor's race." However, CNN reports that three Republican state legislators each told a Chamber of Commerce audience yesterday "that Sanford has lost the credibility to steer the state's economy."

Poll Shows Crist With Big FL Lead

The AP reports that a Mason-Dixon poll of 625 registered Florida voters conducted June 24-26 shows Florida Gov. Charlie Crist (R) leading ex-state House Speaker Marco Rubio (R) 51%-23% in a GOP Senate primary match-up. CQ Politics adds, however, that "among Republican voters who recognized both candidates, Crist's lead narrowed" to 33%-31%; 36% were undecided. In a hypothetical Democratic Senate primary match-up, the survey of shows FL17 Rep. Kendrick Meek (D) leading FL3 Rep. Corrine Brown (D) 27%-12%; 61% were undecided. In hypothetical general election match-ups, the survey shows Crist leading Meek 48%-26% and Brown 55%-24%. The Pensacola News Journal quotes pollster Brad Coker saying, "Half of the Republicans have never heard of Rubio but among the half that have, the race is essentially tied. If Rubio gets a little money and gets a little momentum going, it's a dead heat."

Sign up here to get the US News Political Bulletin emailed to you each morning at 8 a.m.

POLITICAL HUMOR

The Latest From Late Night Comedians

The late night shows were in reruns last week.

Sign up here to get the US News Political Bulletin emailed to you each morning at 8 a.m.