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House Retains Public Option In Compromise, But Delays Vote Until September

Ok, here's some late breaking detail on the nature of the compromise between House Blue Dogs and Democratic leaders.

I'll fill in more blanks as I get more information, but here's my immediate read on the situation: Substantively, leadership seems to have given up very little, but, Blue Dogs succeeded at slow walking the bill, which won't get a vote until after the August recess.

After a week or so of canceled hearings, the Energy and Commerce Committee will continue to mark up House health care legislation this afternoon, and pass a bill by the end of the week. On substance, the exemption from penalties for small businesses that do not provide health care to workers has been raised to include small businesses with payrolls of $500,000 per year or less. Originally the bill called for the exemption to apply only to businesses with payrolls half that size.

The public option hasn't gone away, and remains in tact. Now, though, instead of being directly tied to Medicare, the rates will be negotiated by the Health and Human Services secretary--a provision which at a glance seems similar to the public option the Senate HELP Committee endorsed. States will be able to erect health care co-operatives if they choose, but that would be in addition to the public option.

The Blue Dogs managed to pull $100 billion in savings from the bill by lowering by one percent the rate at which people living between 300 and 400 percent of the poverty level will be subsidized to buy health care in insurance exchanges--they had originally tried to eliminate that bracket entirely.

Blue Dogs will likely herald this as a major victory, but compared to their original wishlist, this seems pretty minor.

As before, it's hard to know what will happen to the politics of this over the August recess. But there will almost certainly be a bill ready for a vote when the House comes back into session in September. That bill will have been endorsed in preliminary votes by a significant number of Blue Dogs. And in the House, where there's no filibuster, that makes its prospects for ultimate passage look very solid.


62 Comments

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This health care debate is kinda like Bass fishing. When you've just about given up and are about ready to turn around and go home, you get another bite and things turn around again.

What a roller coaster.

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Bass fishing ends up with people dead (statistically the most dangerous job in America) this......leaves people dead. Hey I guess you are right.

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How do you figure bass fishing is a job?

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Fly fishing, on the other hand — now that's a job.

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Or dangerous?

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I thought that was crab fishing...

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Baucus bill is pissing me off because they are trying to claim they cover 95 percent of Americans and costs 900 billion. That health insurance gieveaway of a deal is going to be touted as something fantastic. Makes me sick to my stomach.

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I hope (but don't trust) that this leads to something in the way of substantive reform. I was thinking we might have to accept the "reform" as the removal of the disqualification due to pre-existing conditions - with an expectation of little more than that. I look forward to hearing what Dean says about it all when he hosts KO again tonight.

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Yep. Don't change the lure. Just change the retrieve, and be patient.

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Great saying. Love it!

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What if this was the plan all along...

Let the Blue Puppies raise a stink, after lots of push and pull we reach a hard fought agreement.

Americans love a good fight, and the reasonable government that comes from it.

This agreement takes into consideration the concerns of more conservative voices and still has those elements that the President laid out.

- Choice of providers
- Lower costs
- Public Option

Maybe he really is the smartest guy in the room...

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I don't know if he's the smartest. But he certainly has a knack for coming off like the adult in the room.

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YES!!! What a relief! If Waxman had caved in to the Blue Curs on the public option, I would have croaked (nyuk, nyuk)!

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OK. 4 of 5 bills have a public option. Could 4 committees really fold up and give in on it because Fuckus' is a crappy senator?

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The pressure is on Max and the hacks now.

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Depends on how effective the scary commericials the industry sockpuppets will be flooding the airwaves with in August are at generating mail and phone calls.

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Let's give Waxman a big round of applause. He has stood up to the Blue Currs when nobody else would.

He's tried to bring investigations into the abuses of the Bush administration, the CIA and the FBI only to be told to by the Democratic leadership to layoff.

The Democrats could use some more Waxmans. Lord knows, they don't have anything/nobody else.

You don't have to be a blind conservative not to see it, just an ignorant one to deny it.

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Long live Wax, down with Max!

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Wax on, Max off.

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WaPo said four of the seven blue dogs on the panel went for it, giving it enough votes to pass committee. This whole process has made it clear that the Democrats must separate the wheat from the chaff. Time to primary the obstructionists. I'm tired of hearing them whine about the "tough vote" on cap and trade. Suck it up, guys, or go join the GOP and their loose coalition of freaks, racists, Christian nutsos and obstructionists.

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Agreed on the need for a few primary challenges. I'm going to keep my eyes open for campaigns that need donations next year. As Matt Yglesias keeps pointing out, we don't necessarily have to win the primary in order to change incentives and give candidates a push in the right direction -- which in this case means the left direction.

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Look how suddenly responsive Arlen Specter has become, what with Sestak joining in.

Or how Jane Harman became less of a jerk when she got a primary challenger.

Yes, primary challengers are a good thing.

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It's different in the House, since elections are much more frequent. Members are just about always campaigning, so that progressive pressure is more meaningful. Specter knows he's in for a fight next year, so he has to kiss as much blue behind as possible. After (if) he's reelected, who's to say he doesn't revert to his BS "centrist" ways? That's where we need strong Senate leadership to stay on him, and so a strong, or at least outspoken, primary challenge for Harry Reid is needed.

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Sometimes competition is a beautiful thing indeed!

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Here's the thing, if they are expecting the public to back off over the recess they are wrong. They are going to get an earful back home, Democrats and Republicans alike, and it's all going to be in favor of getting it done with a robust public option, if not single payer. I can't see that slow walking this thing helps anyone but the progressives at this point. The public now expects something to be done.

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Now we turn up the pressure.

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Actually I think having a whole month to work over the blue dogs might not be such a bad thing. I can just imagine what the local OFA phonebanking team that keeps emailing me could do with a month to work with.

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I agree, runfast! I want to repeat something I said in a comment on my Keep Making Noise post the other day:

We just need to be more persistent and coherent than the fear-mongers. I think Barack and company will be right there with us.

I think that a lot of the MSM naysayers are viewing this in terms of the Clinton health reform failure, as if there was nothing different about this administration or the level of public support for reform this time around. Obama and his people have shown themselves to be fierce and wily fighters. There's no reason to believe they will spend an August recess cowering and allowing the opponents of reform to control the narrative.

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Yes, this delay only serves the progressives because we might have bcome complacent thinking giving Dems the House and Senate meant they would represent the ideals for which we all got out and voted. NOT SO! We must increase the pressure and keep it up because, now we know, they will take us for granted. As for those Blue Dogs, they do need to realize even if they are only half blue and half dog, that blue half expects something.

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Has this made it easier or harder for these blue dogs to go on August break? Did some just cover their butts temporarily?

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Easier, I would think. This is exactly what they wanted: Tons of press demonstrating their "power" in Washington and their "moderate" politics. There will be town hall meetings all over Blue Dog territory next month where they get to brag, then come back to Washington basking in the adoration of their constituents.

And since that's how politics works, I guess I'm not too fussed about it, unless they come back and try to keep playing the game and obstructing progress when the time comes for a full vote.

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Thanks for the update, Brian. This seems like a strong bill, and giving the states an option to create co-ops in addtion to a public option really calls Baucus and his bi-partisan club on their bullshit.

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Is there any support here, given no primary challenge, of supporting Sen. Baucus' Republican opponent, if for no better reason than to get him off the Finance committee?

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Unfortunately, he was just re-elected in 2008.

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Small wonder he has that Chair, huh?

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Blue Dogs will likely herald this as a major victory, but compared to their original wishlist, this seems pretty minor.

sorry Brian. they got the ONE thing they wanted out of all their tantrums and obstruction - the August delay.

oh, and now look, a House bill with those phony co-ops in it, how handy for conference


why a veteran like Waxman didn't pre emptively stifle these 7 bastards is waaay beyond me at this point

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It's not really a "House Bill". It's just the mark up coming out of Waxie's committe, and not one strongly supported by anyone other than the Blue Dogs. It will need to be pulled together with the other two mark ups from the Tri-Coms, and then polled around the House floor to see where the support is.

Strategically, this looks to be a way to nail down enough Blue Dogs *right now* to have all of the Tri-Coms be able to say they approved a bill, especially one with a Public Option. It puts more pressure on Sen-Fi as being the outliner proposal.

Sen-Fi isn't going to rollover at the moment, not with Baucus and Conrad playing their games. But the House now has three markups to pull together into one bill, with Leadership working to see what they can pull together for support (and/or arm twist). One suspects that by "gun to the head vote time" that the Dems will have enough support behind something between the markup from Waxie's committee and the other two that will pass without too much of the caucus bailing out.

The Senate of course is a different issue.

John

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This is EXCELLENT NEWS!!!!

for

MAX BAUCUS!!!!

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Here is what the DailyKos says:
http://www.dailykos.com/storyonly/2009/7/29/759303/-Pressure-Works:-Blue-Dogs,-Waxman-Cut-Deal,-Baucus-Struggles-
I am glad Waxman and the others stood up to Baucus.

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Thanks for a clear summary.

It is also clear who the Blue Dogs are working for. The Blue Dogs are actually Republicns who are from strongly Democratic districts. They work for the corporations and monied interests. Let their true constituencies vote for them in the primaries and they will receive a few hundred votes in each state. Let the rest of us vote for candidates who are willing to fight for our interests.

In short, throw the bums out. Seriously.

Here is a list from the "Blue Dog Coalition Website". If you are an activist or prone to donating campaign money, its time to work for progressive democrats who are gearing up to run against these obstructionists

Blue Dog Leadership Team

Rep. Stephanie Herseth Sandlin (SD), Blue Dog Co-Chair for Administration
Rep. Baron Hill (IN-09), Blue Dog Co-Chair for Policy
Rep. Charlie Melancon (LA-03), Blue Dog Co-Chair for Communications
Rep. Heath Shuler (NC-11), Blue Dog Whip

Blue Dog Members

Altmire, Jason (PA-04)
Arcuri, Mike (NY-24)
Baca, Joe (CA-43)
Barrow, John (GA-12)
Berry, Marion (AR-01)
Bishop, Sanford (GA-02)
Boren, Dan (OK-02)
Boswell, Leonard (IA-03)
Boyd, Allen (FL-02)
Bright, Bobby (AL-02)
Cardoza, Dennis (CA-18)
Carney, Christopher (PA-10)
Chandler, Ben (KY-06)
Childers, Travis (MS-01)
Cooper, Jim (TN-05)
Costa, Jim (CA-20)
Cuellar, Henry (TX-28)
Dahlkemper, Kathy (PA-03)
Davis, Lincoln (TN-04)
Donnelly, Joe (IN-02)
Ellsworth, Brad (IN-08)
Giffords, Gabrielle (AZ-08)
Gordon, Bart (TN-06)
Griffith, Parker (AL-05)
Harman, Jane (CA-36)
Herseth Sandlin, Stephanie (SD)
Hill, Baron (IN-09)
Holden, Tim (PA-17)
Kratovil, Jr., Frank (MD-01)
McIntyre, Mike (NC-07)
Marshall, Jim (GA-03)
Matheson, Jim (UT-02)
Melancon, Charlie (LA-03)
Michaud, Mike (ME-02)
Minnick, Walt (ID-01)
Mitchell, Harry (AZ-05)
Moore, Dennis (KS-03)
Murphy, Patrick (PA-08)
Nye, Glenn (VA-02)
Peterson, Collin (MN-07)
Pomeroy, Earl (ND)
Ross, Mike (AR-04)
Salazar, John (CO-03)
Sanchez, Loretta (CA-47)
Schiff, Adam (CA-29)
Scott, David (GA-13)
Shuler, Heath (NC-11)
Space, Zack (OH-18)
Tanner, John (TN-08)
Taylor, Gene (MS-04)
Thompson, Mike (CA-01)
Wilson, Charles (OH-06)

Those of us who live in any of these districts need to give these folks their walking papers.

Oh yeah...Yes we can.

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IF, the real public option is gone, this whole thing with blu dawgs and their alledged conservative credentials is all CRAP..They're not conservatives - they're obstructionists!! WORSE than republicans!!!

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The public option is NOT gone, but INTACT.

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You would think people read stories before they popped off. I see similar comments on this Waxman deal at other sites. This is good news, people. Especially since it's on the heels of the avalanche of shit news coming out of Baucus this week.

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Chalk it up to the poor quality of mainstream reporting. By the time I got done reading the article on MSNBC, it sure felt like the Democrats had caved on everything.

Speaking of MSNBC, they have an article on healthcare reform just about every day, and a link to a NewsVine blog. Posting on that blog is rough going, lots of Republican misinformation campaigns and generally angry conservatives. It would be nice to read more good posts from progressives there.

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I know. It is astounding how bad the media coverage is. Maybe I'm stupid and naive for expecting something more. How many times do I have to hear that the public option is unlikely, while the plain facts show that all the committees' bills, save for Baucus mini-panel of bipartisan crusaders, have some version of a public option????

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Having criticized the Blue Dogs above I want to assure that I have not popped off. My wish to be rid of the Republican wing of the Democratic party is carefully considered. That the Public Option remains for now is a tribute to Waxman. That the Blue Dogs are trimming the necessary funds and stalling to work further subversion condemns them

Lieberman and he Senate Dogs come next and we can look forward to their appearances on Meet the Press et al. with the progressives like Waxman cast as fringe actors with minority opinions.

Congressional lifers only understand two things: money and votes.

I repeat. Throw them out.

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Agreed, it is very good news. I don't mind giving in on things that are a matter of degree rather than substance if it gives the Blue Dogs the cover they feel they need with their constituents, as long as the basic principles of the bill remain intact. And that's what Waxman has managed to negotiate.

I wish we could figure out a way for Waxman to kick some butt in the Senate!!

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Last week I sent my Congresswoman aka The Speaker a nasty email re: the public posturing of the Blue Dogs.

I noted that I had received several emails from VanHollen soliciting contributions for health care reform to the DCCC

I concluded "There have to be consequences"

Well thank you Madam Speaker!

Just responded to today's email from VanHollen and sent the Good Guys some more money. Let Menendez hit up Lieberman

And as an extra added bonus to the window decal(!) you will get access to a live conference call with Chris vanHollen, a DCCC Health Care Townhall this Friday 2:30 EDT
http://www.dccc.org/page/invite/healthcarecall?stg_signup_id=15109270
I can hardly wait

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The point being folks -- keep up the pressure!

Emails, phone calls, and faxes do work. We need to blast these folks during August and drive home the point: reform health care now!

It'll be a long haul. We'll be battling to the end of the year.

But forget all the pessimism, fearmongering and prognostications -- like all the talk last week about health care being dead, etc,.

It's the 5th inning. We have a few more rounds to go.

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TIME Health-Care Poll: Americans Back Obama's Reform Goals but Worry About Details

Which is precisely why I rejoice that the House and the Senate Finance Committee seem to have acted and will frame the REAL debate around the REAL concerns of REAL citizens..not us policy wonks

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If a savings of 1% on the 300-400 percent above poverty bracket saves $100 billion, 1% = 0.01, if 'x' is the total amount necessary for the 300-400% bracket subsidy then:

0.01x = $100 billion

100 *(.01)x = 100 *($100 billion)

1 x = $10,000 billion or x = $10 trillion??

A pretty hefty amount to subsidize one bracket??

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I *think* they are reducing the subsidy level by 1%, not that it's a 1% reduction in the amount of the subsidy. So, if a family at 300-400% of poverty level would have received a 5% subsidy they would now receive a 4% subsidy. That's a 20% reduction in the amount of the subsidy, so to save $100,000 billion, the subsidy would have "only" had to have been $500,000 billion.

**These numbers are all invented for the purpose of the example -- I can't find anyplace where they have published exactly what the sliding subsidy scale will be. **

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A one percentage point reduction, in other words, not a one percent reduction. Yes, that's how I read that, too.

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Here is the way I see this playing out: Ben Nelson, Mary Landrieu and Joe Lieberman.

All this other talk is nonsense. The only three that really matter are these three Democrats because they have to get us past the filibuster. And, if they don't get sixty senate votes, health care reform is likely in trouble (I don't see the Baucus bill getting 50 votes, nevermind 60).

So, while it's nice to know the House will include the public option, we better hope the Senators have some courage to go with health care reform on an all-Democrat basis. And, the leadership of the party should plan on a new -- and alternative -- way of enacting health care reform (i.e. primaries in Senate and House districts where members voted against meaningful reform).

Yes, we're hanging our hats on Joe Lieberman, Ben Nelson and the gang of moderate Senate Democrats. You better get the word out about the current massive concentration in the health insurance industry.

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The news on huffpost is not this sunny.. looks like the public option is in name only and can't use medicare rates.. Anyone shed some light on this? Thanks

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Typo alert: "Intact" is one word, Brian, not two.

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Anyone else pointing out that the "Gang of Six" on whom our political system--in the absnece of what should be justified outrage--has conferred enormous political power over health care, all come from small states with a total population of less than 3% of the nation. And their gross take from the for-profit health industry is over $3 million


----- Original Message -----
From: Kate Stayman-London, CREDO Action
Subject: Baucus and friends have a nasty secret on health care.

Have you heard about the six senators who are out to kill health care reform? Health care policy that isn't just bad — it's corrupt.

The "Gang of 6" has accepted more than $3 million in campaign contributions from insurance companies and big pharma — now they're pushing a lame excuse for health care reform that would benefit those very companies most of all. Tell them to give that tainted money back.
Of course, that's not how they'd phrase it. Sens. Baucus, Bingaman, Conrad, Enzi, Grassley and Snowe say they're striving for "bi-partisan compromise." But what they're actually doing is working to make sure reform won't include a public option or mandatory employer-based insurance — two key policies needed for effective reform.
There are 100 members of the Senate, but these six, inexplicably, seem to be holding all the cards when it comes to health care.
So you probably won't be surprised to learn that all six have taken a huge amount of money from the health insurance industry and pharma.* Take a look:
Senator Lifetime contributions from Insurance/Pharma
Sen. Max Baucus (D-MT) $1,203,205
Sen. Jeff Bingaman (D-NM) $206,297
Sen. Kent Conrad (D-ND) $442,165
Sen. Mike Enzi (R-NV) $342,228
Sen. Chuck Grassley (R-IA) $702,595
Sen. Olympia Snowe (R-ME) $161,706
TOTAL: $3,058,256

These six senators — who, by the way, represent only 2.74% of Americans — are writing bad policy, and they're doing it while they take money from the very companies who stand to benefit the most.

visit my website www.michaelmunk.com

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These six senators — who, by the way, represent only 2.74% of Americans

Ooooh, very good point! I hadn't noticed it before, but those six Senators are all from lightly populated states.

I am tired of national policy being determined by such small minorities.

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To understand just how completely undemocratic the US Senate is please chew on this...... Mississippi, Alabama, and Louisiana have the same votes on national policy as California, New York, and Illinois. That simple fact is most of the reason America is sinking into a shithole of debt and war and unemployment. You just cannot be a progressive nation when a tiny tiny group of knuckle dragging swamp dwellers gets to veto everything the well educated practical majority attempts. I am sometimes wishing we had LOST the Civil War!

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http://www.time.com/time/printout/0,8816,1913410,00.html

The President's perspective on the topic, and how it has been covered by the media, and his opponents.

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Is there any way I can send all of these comments to Obama's website. All of them hit the nail on the head and I would like to remind him about how he got to the WH. It was the votes of all of us and he needs to be reminded of that, if he would like to have a second term that is.
I'm sure Rahm Emanuel would know/knows how to play hardball with the blue(yellow bellied)dog democrats.
Oh, and by the way "shit can lieberman".(no! I did not forget to capitalize his name. When he stops being (as I see it) a traitor I will capitalize his name. One more thing in regards to the comment policy, I would tell him to his face that I think he is a traitor.)


Windancer

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What happens in the Senate if we lose Ted before the vote? He isn't doing well.

Without swift action from Massachusetts we will be back to 59 votes.

I was hoping the bill would be named after Ted...

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