
Last week, Tim Pawlenty unveiled a plan to overhaul the tax code that would make Paul Ryan wince. But as radical as his proposal is, it could easily become the baseline for what it takes to pass muster in the GOP presidential primary. And that would carry enormous consequences for the general election and beyond.
We'll get a first glimpse of how Pawlenty's GOP rivals react to his proposal at tonight's debate. Do they embrace the underlying principles of the plan so that Pawlenty doesn't outflank them on the right? Or do they try to one up him with even more dramatic overhauls of the tax code?
Pawlenty proposes to reduce the top individual income tax rate from 35 percent to 25 percent, cut the top corporate rate from 25 percent to 15 percent, and allow pass-through corporations to pay taxes at the corporate rate. He also wants to completely eliminate capital gains taxes, taxes on dividends and interest, and the estate tax.
Altogether, according to the Tax Policy Center, it would cost the Treasury over $11 trillion over the course of a decade -- most of which would benefit the wealthiest Americans. It's a recipe for either a catastrophic budget crisis, or a fundamental dismantling of the public sector's role in American life, or both.
News has emerged that the health of Elizabeth Edwards, the estranged wife of former U.S. Senator and presidential candidate John Edwards (D-NC), has taken a turn for the worse. A statement issued by her family indicates that she is no longer receiving treatment for her metastatic breast cancer, and is resting at home with her family and friends.
People magazine reports:
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Report: White House To Remove References To 'Islamic Radicalism'
The Obama administration will reportedly remove terms such as "Islamic radicalism" from the upcoming National Security Strategy document, in an effort to emphasize that the administration does not view Muslim nations through a lens of terrorism. "You take a country where the overwhelming majority are not going to become terrorists, and you go in and say, 'We're building you a hospital so you don't become terrorists.' That doesn't make much sense," said National Security Council staffer Pradeep Ramamurthy.
Obama's Day Ahead
President Obama will meet with Secretary of State Hillary Clinton 9:30 a.m. ET. He will receive the presidential daily briefing at 10 a.m. ET, and meet with senior advisers at 11 a.m. ET. He will depart from Andrews Air Force Base at 7:30 p.m. ET, en route to Prague, Czech Republic, where he will sign the new nuclear arms control treaty with Russian President Dmitry Medvedev.
Obama Slams GOP Reversals On Fiscal Commission
In this weekend's YouTube address, President Obama called for taking action to reduce the budget deficit. He also blasted Republican Senators who stopped the formation of a Fiscal Commission, after having previously co-sponsored it:
"This past week, 53 Democrats and Republicans voted for this commission in the Senate. But it failed when seven Republicans who had co-sponsored this idea in the first place suddenly decided to vote against it," said Obama. "Now, it's one thing to have an honest difference of opinion about something. I will always respect those who take a principled stand for what they believe, even if I disagree with them. But what I won't accept is changing positions because it's good politics. What I won't accept is opposition for opposition's sake. We cannot have a serious discussion and take meaningful action to create jobs and control our deficits if politicians just do what's necessary to win the next election instead of what's best for the next generation."
Collins: Obama Administration Can't See A Terrorist 'Even When He Stands Right In Front Of Them'
In this weekend's Republican address, a very alarmed Sen. Susan Collins (R-ME) lambasted the Obama administration's handling of the Abdulmutallab case:
"The Obama administration appears to have a blind spot when it comes to the War on Terrorism," said Collins. "And, because of that blindness, this administration cannot see a foreign terrorist even when he stands right in front of them, fresh from an attempt to blow a plane out of the sky on Christmas Day. There's no other way to explain the irresponsible, indeed dangerous, decision on Abdulmutallab's interrogation. There's no other way to explain the inconceivable treatment of him as if he were a common criminal."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Sen. Joe Lieberman (I-CT) raised hackles among liberals earlier this week when he claimed that the public option wasn't a part of the 2008 presidential campaign. He repeated that claim to reporters tonight, though acknowledged, when pressed, that then-candidate Barack Obama did in fact include a public option in his campaign health care proposal.
"This is a kindof 11th hour addition to a debate that's gone on for decades," Lieberman told reporters tonight. "Nobody's ever talked about a public option before. Not even in the presidential campaign last year."
I asked in response, "How do you reconcile your contention that the public option wasn't part of the presidential campaign given that all three of the [leading Democratic] candidates had something along the lines of the public option in their white papers?'
Former John Edwards adviser Joe Trippi is pushing back against David Plouffe's claim that the Edwards camp tried to strike deals on the vice presidency during the 2008 Democratic primary.
As we reported last night, Plouffe charges in his new book "The Audacity to Win" that a "senior Edwards adviser" suggested Edwards would drop out and that he and Obama could team up as a joint ticket.
Trippi told the Washington Post's Greg Sargent he wasn't aware of the pitch. He also suggested Edwards, who was later mired by scandal due to an affair, was more interested in being attorney general than the No. 2 slot.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)In the thick of the Democratic presidential primary, a top operative offered up John Edwards' withdrawal from the race and endorsement - on the condition the person he endorsed would offer him a spot on the ticket.
David Plouffe details the deal that "a senior Edwards" adviser" tried to ink before the South Carolina primary, spilling the beans in his book "The Audacity To Win."
Plouffe, then campaign manager for Barack Obama, was worried after the New Hampshire loss and polls tightening in South Carolina.
He said that the rival Edwards camp was in trouble and wanted to make a move with either Obama or Hillary Clinton while Edwards was "at a point of maximum leverage."
In this portion of the book, Plouffe hedges a bit, saying he's not sure Edwards was aware of the effort's specificity.
But he also has direct quotes, suggesting he documented the conversation.
Read the excerpt after the jump.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Remember the mess that was Florida, Michigan and the earliest Iowa caucus in history?
Turns out some of the complications were orchestrated by the Obama campaign.
In his new book "The Audacity to Win" Obama campaign manager David Plouffe confesses they tried to "box in" Clinton after the Democratic National Committee's Rules and Bylaws Committee decided to strip Florida and Michigan of their delegates as punishment for holding primaries earlier than allowed. (In the end, it all worked out, but it caused complete chaos for months as the primary dragged on.)
Plouffe writes:
"Emboldened by the drift of the rules committee, we took it to the next level. I asked Steve Hildebrand to go on a secret diplomatic mission to speak with the four early-state party chairs, encouraging them to ask all the candidates to sign a pledge stating they would not campaign in any states (Florida and Michigan) that had violated the rules and were threatening the approved early states' primacy.PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)Yes, this was in our self-interest. But it was also in theirs. If these two big states were penalized as severely as possible, and we all committed not to campaign in them, then the role of the early states was protected with no ambiguity."
The CBS affiliate in Raleigh, WRAL-TV, reports that sources close to John Edwards expect the ex-Senator and former presidential candidate to admit that he is indeed the father of his former mistress Rielle Hunter's child.
It's unclear exactly when he would admit this, but the station's sources said it could occur before the end of the current criminal investigation into whether Edwards illegally paid Hunter money from his campaign. The central allegation is that hush money was funneled to Hunter in order to keep her from revealing the affair.
Edwards admitted in the summer of 2008 that he did in fact have the affair with Hunter, but strongly denied that he was the father of her child. Hunter had previously stated that the father of her child was a former Edwards staffer, Andrew Young.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Obama Meeting With Health Industry On Lowering Costs
President Obama is meeting today with drug companies, insurance companies, hospital executives and doctors to work on an industry initiative to decrease health care costs by $2 trillion over 10 years. The New York Times points out that the government wouldn't necessarily have a direct way to hold industry to these promises, but that the industry itself is undertaking this initiative in order to head off direct price constraints from being imposed by the government.
Obama's Day Ahead
President Obama will be meeting with health care reform stakeholders at 11:30 a.m. ET in the Roosevelt Room. At 12:30 p.m. ET, he will deliver remarks from the Eisenhower Executive Office Building, on reforming the health care system and reducing costs. At 2 p.m. ET, he will welcome the University of North Carolina men's basketball team an the South Portico.
Specter: "I'm Becoming Much More Comfortable With The Democrats' Approach"
During his appearance today on CBS' Face The Nation, Sen. Arlen Specter (D-PA) said that besides just the tough Republican primary he was facing, there was genuine principle at work in his party switch. "Frankly, I was disappointed that the Republican Party didn't want me as their candidate," said Specter. "But as a matter of principle, I'm becoming much more comfortable with the Democrats' approach."
GOP Sen. Hatch: Obama Using "Code Words" For Wanting Activist Judge
Appearing on ABC's This Week, Sen. Orrin Hatch (R-UT) accused President Obama of using code words for the type of Supreme Court Justice he will seek. "He's also said that a judge has to be a person of empathy -- what does that mean? Usually that's a code word for an activist judge," said Hatch. "But he also said that, that, he's going to select judges on the basis of their personal politics, their personal feelings, their personal preferences. Now, you know those are all code words for an activist judge who's going to be partisan on the bench."

