A Bluestem Prairie

Tuesday morning news digest: budget bill edition

The Washington Post reports House Approves Spending Bill. The lead:

The House last night approved a $515.7 billion domestic spending measure that shaves billions from spending levels desired by Democrats and uses emergency spending and other tactics to challenge President Bush on his budget demands.

The legislation, which passed 253 to 154, funds every agency of government but the Defense Department for fiscal 2008. The House then voted 206 to 201 to approve an amendment that includes $31 billion for fighting in Afghanistan but none for the war in Iraq.

The Walz congressional office sent out some background information about the bill:

The Rules Committee has posted the text of the omnibus spending bill (in a non-searchable format) here:

This legislation contains funding for a number of specific Minnesota projects, 20 which are included at the request of Congressman Walz. A final installment of $195 million for the I-35W Bridge in Minneapolis is also in this bill.  It can be found in Division K, page 21, line 22. 

Download  OmnibusReportSprdsht0final.xls,  the list of projects requested by Congressman Walz.  Some of the money is for Highway 14;  over at IDHA, DJ notices Day ignores transportion (among other issues) to hang with the Minutemen.  Danielson an artist's rendering of Day's press release claim that he go to look through night vision glasses. We suspect that Santa found Day's googles here.  KAAL reports Highway 14: A Dangerous Drive.

The Strib reports I-35W bridge funding passes House and Money for Minnesota, including the Walz money for Highway 14.

More grieving at Winona State University, as another college student dies.  An ignorant reader comments that the deaths are alcohol-related, and other readers object. KTTC has more  in A Tragic Month, including the news:

So far there is no indication that any of the student deaths had to do with drugs or alcohol.

Politically Connected House Watch: Nope, the editors still haven't changed the top links for stories  listed under "National Politics: House." The November 29 (Updated December 4) Day press release on immigration is still a top item on December 18. 

Mankato Free Press editorial: Walz votes for fiscal responsibility in AMT fix

Yesterday, the NRCC issued another one of its Beltway-generated boilerplate press releases about what it calls a "clean" patch for the alternate minimum tax. 

Today's editorial in the Mankato Free Press, Another blow to fiscal common sense, helps clear the air.

The board spells out what's dirty in the NRCC's spin on the issue:

Some members of Congress continue to live in a virtual fiscal world where you don’t have to pay for a $50 billion expense.

The good news: Members of both houses voted to prevent 19 million Americans from paying a possible extra $2,000 in taxes by passing a bill to adjust the alternative minimum tax so it wouldn’t hit people it wasn’t intended to hit.

The bad news: The $50 billion expense will add to the federal deficit if the House agrees to the Senate’s lack of fiscal responsibility. The lose-lose situation: No House-Senate agreement means average people pay $2,000 more in taxes or if the House agrees to the Senate bill, the deficit will rise.

The Senate needs to swallow hard and agree to the House plan that will provide the tax relief but also require the government to pay for it and not increase the deficit. Of course, the Senate could also vote to decrease spending somewhere else to pay for the AMT. There is plenty of money in the area of earmarks.

The $50 billion expense on the AMT is the amount of money that won’t be coming to the treasury because the House and the Senate changed the income brackets so as to make sure middle class taxpayers don’t get hit with the tax. . . .

. . .Democrats in the House passed a bill to fix the problem, but under new House rules Democrats imposed this year (good for them), they actually have to make up the loss of $50 billion, so as not to increase the federal deficit.

And they did this by what they describe as closing a loophole in federal tax code that lets investment fund managers escape some income tax through setting up offshore operations.

Republicans, however, mostly in the Senate, call this a “tax increase” and feel they have enough support for people to believe them.

Republicans in the Senate, and ironically enough, Senate Majority Leader Harry Reid, D-Nev., don’t really want to pay for the $50 billion cost of the tax change or be required to cut spending by $50 billion somewhere else. They voted against imposing the PAYGO rule. Right now, those Senate Republicans and Reid are saying they’re OK with increasing the federal deficit which we find reprehensible.

PAYGO rules: How they voted

Minnesota Sen. Norm Coleman, R, voted against imposing the budget discipline of Pay As You Go rules on the bill to halt the unfair imposition of the alternative minimum tax. Sen. Amy Klobuchar, D, voted in favor of a requirement to pay for the $50 billion expense and not increase the federal deficit.

Rep. Tim Walz, D-1st District, and Rep. Colin Peterson, D-7th District, voted in favor of paying for the AMT expense. Rep. John Kline, R-2nd District, voted against paying for the AMT expense.

Calling this move "clean" is one of those classic propaganda tactics first-year students at community colleges learn to recognise and avoid.  One can readily understand why glittering generalities are so dear to the NRCC and  Republican operatives who blog.

Updated: if we are lucky, the Free Press's editorial will help the Strib's stenographers go beyond repeating Republican catch phrases in their reporting. We're beginning to wonder what's up with the Strib's coverage of the U.S. House in general:  it looks as if it's all GOP news, all the time.  From the screen shot from today's "House" section of Politically connected, you'd never guess that there was a DFL candidate forum this week for the open seat in CD 3 during which one non-anointed contender dominated the field or an endorsement battle in the Sixth.

Indeed, the immigration story--which still mistakenly reports that Day accompanied the Border Patrol--was first published on November 29, so it's now over two weeks old at the Strib, which is some pretty stinky virtual fishwrap.  (BSP,  by the way, first caught the story of Day's Minuteman ride-along on November 19, from reading a MM blog; poor Mark Brunswick had to wait until Day sent him a press release).

The Kline story reports on an action that the Second District representative took back in the summer that the right is trying to elevate to heroic status.  And the Meyer withdrawal, which is deemed worthy of the top visual billing? We have to agree with contender Dick Day on this one:

"I don't think it's a factor at all, because I don't know if he had over two delegates in the entire district that were for him," Day said this morning. "On the polling that was done, from what we gathered, he just didn't have any support."

"What is newsworthy?" is a concept taught in introductory Mass Communications classes in Minnesota's finest public colleges and universities.  Perhaps a generous soul could chip in some coin and provide D.J. Tice and PC editor McGrath refresher course vouchers for their Christmas stockings.

AMT vote press release: "Fighting for middle class families is something I always do"

From the congressional office:

Congressman Walz Votes For Middle Class Tax Relief for Millions of Americans

WASHINGTON - Today, Congressman Walz voted again to provide tax relief to tens of millions of middle class families who would otherwise pay higher taxes under the alternative minimum tax (AMT) this year. The Alternative Minimum Tax Relief Act of 2007 provides a one year extension of AMT relief for nonrefundable personal credits and increases the AMT exemption amount to $66,250 for joint filers and $44,350 for single filers to ensure that no additional taxpayers are liable for the AMT this year.

"Fighting for middle class families is something I will always do in Washington," said Walz. "This bill will ensure that 23 million middle class Americans will be protected from the alternative minimum tax this year and it will save nearly 44, 000 families in southern Minnesota from being caught by the AMT. Passing this critical tax relief is the right thing to do."

Short Summary of the Alternative Minimum Tax Relief Act of 2007: In addition to providing middle class tax relief to tens of millions of middle class taxpayers next year, this legislation:
* Expands the refundable child tax credit to provide relief to more than 12 million children
* Closes loophole allowing hedge fund managers to defer compensation in offshore accounts

On Monday, both IDHA and Bluestem shredded last Friday's claims by the MNGOP about an AMT gotcha vote on the Energy Bill.

Tuesday morning news digest: 999,999 cases of beer edition

We make no secret of our fondness for Schells Beer,  and so our heart is cheered this dark winter morning to read in  999,999 cases of Schell’s and still brewing that the brewery will put out its millionth case of beer tomorrow.

And the New Ulm Journal tells us that the brew to get the honor is one of our favorites:

Schmaltz’s Alt, which is named after Ted Marti’s father, Warren “Schmaltz” Marti, is the Schell’s craft brew that will have the honor of being in the Millionth Case. It is the only beer Schell’s makes that is named after one of its former presidents.

Ted Marti said “Schmaltz” led the company though some of its toughest times in the late 1960s, when many family-owned breweries were going out of business and facing competition from ‘the big guys.’

We demand a congressional resolution to commemorate the occasion. And a bottle opener.

KEYC-TV reports Walz Says Minnesotans May Have Tax Refunds Coming. Apparently, 150 Southern Minnesotans are owed unclaimed tax refunds.

Democrats Pull Budget Offer, according to the Washington Post.

In the Netroots, Minnesota Central asks Does Dick Day think the Surge is working ? (news about decreased border vrossings dues to work by the Border Patrol) , while in Star Tribune is Teh Werst, MnPublius echoes an observation about the continued top billing of the faux Day border ridealong in the paper's PC section. Minn Central had commented on the persistent prime billing of this story nearly a week ago.

IDHA: More ‘gotcha’ from the GOP: Carey stretches truth in effort to ambush Walz

As we had hoped in this morning's post, IDHA's DJ Danielson walks his readers through the latest whopper from MN GOP headquarters in St. Paul in More ‘gotcha’ from the GOP: Carey stretches truth in effort to ambush Walz.

Danielson writes:

. . .the underlying bill was the energy bill, not one dealing with the Alternative Minimum Tax. Carey seems to think the House should have allowed this amendment to be considered, regardless of the subject’s relevance to the bill.

You see, the subject of the song was “I’m Just a Bill,” not “How a Motion to Recommit Gets Put to a Vote” or “How an Amendment Gets Through the Rules Committee” (though I am sure both would provide for excellent educational fodder for our nation’s children). As far as I am aware, since the Schoolhouse Rock video was produced, the main vehicle for which legislation is passed is still a bill. And yes, amendments to these bills can and do come up for discussion.

Almost always though the amendment offered is germane to the bill at hand. Not so in this case: the Republicans wanted to make an amendment to the energy bill essentially wiping it out and replacing it with Alternative Minimum Tax language. Walz and the majority then voted for the rule prohibiting such an amendment.

Yes, how dare that elitist liberal majority use its power in such as way as stopping non-germane amendments. Personally, I am not a very big fan of closed rules such as the one used for the energy bill, but the obstructionist tactics (such as this proposed amendment) the GOP has employed time and time again make their use necessary.

This isn’t the first time the GOP has used press releases about a “gotcha” vote to try and make Walz appear in poor light: Randy Demmer used loaded rhetoric, eerily similar to that used by Carey, in October to describe a Walz vote on a motion to recommit.

Remember when the GOP grandstanded on SCHIP during debate on the agriculture appropriations bill? Same thing all over again. This is classic “gotcha” from the GOP, but lucky for you, we’re here with the truth about what happened. . . .

Meanwhile, read our post today to what the editorial board of the Waseca County News wrote about Walz. And no, no one on the board is a relative as far as we know, though our maternal grandmother's family still lives in that neck of the woods.

Why do we suspect that we'll hear a few more whimpers from Carey's press release in Minnesota righty blogosphere, but not much else? The Rochester Post Bulletin has already praised the Energy Bill as landmark legislation, after all.

Monday morning digest: girls with guns edition

Along with the effervescent DJ Danielson, we attended the Becky Lourey Roast yesterday in St. Paul, which was probably the huggiest roast in Minnesota political history. Speakers kept saying that roasting Lourey was like trying to roast Mother Teresa. Dane Smith of Growth and Justice got off some good shots, though, riffing off Lourey's exhaustive energy and dead aim at hundreds of yards with a .30-06 rifle.  Jim Robins, an old college chum, caught Lourey's hug for former Rochester state senator Sheila Kiscaden, who had just shared some entertaining tales about Lourey's advice on raising teenagers. Lourey and her husband Gene raised 12 children.

The Grand Forks Herald's Minnesota Politics Notebook shares information about Congressman Walz's internet safety toolkit for parents. 

In the Winona Daily News'  letters section, Southeast Minnesota Central Labor Council president Russell Hess writes in about Workers rights and human rights.  The beginning:

It’s International Human Rights week, the 59th anniversary of the signing of the United Nations Declaration of Human Rights.

This year, the U.S. must face a hard fact: America’s workers rank lower on measure after measure than workers in many other industrialized nations, according to a new study by the London School of Economics.

We have less paid leave, less vacation and we work even more hours than workers in Japan. Instead of setting the standards, we are falling behind. . . .

Such close scrutiny of our lives as working Americans might be what causes the GOP to search for fear-driven distractions. There's a good example in today's WDN opinion section.

Tuesday morning news digest: war, vets and railroad edition

In today's Winona Daily News, Paul Ibisch takes time off from his obsessive-compulsive letter writing against State Rep. Ken Tschumper to scold Congressman Walz in Walz needs to support our troops.   A more favorable guest view is handed in by fellow veteran Fred Orlowske  in Realities of a broken government are hitting our veterans hard. A sampling:

I am pleased to see the House of Representatives voted to attach a deadline for troop withdrawal from Iraq to the war supplemental funding bill (Rep. Tim Walz “yea,” Rep. Michele Bachmann “nay”).

Unfortunately, the Senate could not muster enough votes to pass it (Amy Klobuchar “yea,” Norm Coleman “nay”). Now administration officials, including Defense Secretary Robert Gates, are threatening to shut down military bases and layoff Department of Defense employees.

I find it appalling that President George W. Bush scolded Congress and said they’re, “acting like a teenager with a new credit card.”

Face it, Bush is spending more on the wars in Iraq and Afghanistan than on domestic programs — most notably the expansion of the children’s health care program.

Reports now indicate that Bush threatens to veto a transportation and housing bill for $3 billion — of which a significant portion would be going to the rebuilding of the I-35W Bridge....

The Austin Daily Herald picks up on the latest DM & E/CP  railroad wrinkle in Railroad officials to meet with area leaders.

In the netroots, the Bruin Democrats look at Democratic economic populism. Walz is mentioned.  Minnesota Central looks at the Senate's failure to move the Farm Bill and AMT reform.

Walz votes for Temporary Tax Relief Act of 2007

The Washington Post reports in House Passes Bill to Ease Alternative Minimum Tax:

The House yesterday narrowly approved a $73.8 billion measure to protect millions of families from the alternative minimum tax and offer new tax breaks to middle-income homeowners and low-income parents, offset by tax increases that would land primarily on wealthy Wall Street financiers.

The 216 to 193 vote came after a fiery debate that divided Democrats and energized Republicans, who assailed proposed tax increases that Rep. Sam Johnson (R-Tex.) called "an assault on free enterprise." Democrats countered that they were only closing tax loopholes on super-rich private-equity and hedge fund managers in order to live by a pledge of fiscal responsibility.

The New York Times says that the measure's fate in the Senate is uncertain in House Backs Tax Relief Bill, but Fate in Senate Is Unsure:

But the bill, approved 216 to 193, faces a highly uncertain future in the Senate. Republicans are staunchly opposed to any tax increases, and some Democrats are torn between appealing to their party instincts and alienating some of their big contributors.

President Bush has already threatened to veto the bill, which also includes extensions of several other tax provisions, if it includes higher taxes that would shift more of the tax burden to the wealthy. He argues that Congress should freeze the alternative minimum tax without trying to make up the $50.6 billion revenue loss for the 2007 tax year.

Following Mr. Bush’s prescription, however, would increase the budget deficit, something Democrats have vowed to avoid. Because it is not adjusted for inflation, and because of the way it interacts with Mr. Bush’s tax cuts of 2001 and 2003, the alternative tax has exploded in the last six years and is set to hit people with incomes as low as $50,000.

The press release sent out by Walz's congressional office contained a statement about Walz's vote for the  bill:

The Temporary Tax Relief Act of 2007 also provides relief from the Alternative Minimum Tax for tens of thousands of Minnesota taxpayers and increases the AMT exemption amount to $66,250 for joint filers and $44,350 for individuals. 

“Unless the President signs this legislation, 23 million middle class Americans will be hit by the Alternative Minimum Tax this year,” said Walz.  “This legislation will provide them with real tax relief and save nearly 44,000 residents of Minnesota’s 1st District from paying the AMT this year.”

Walz votes for Mortgage Forgiveness Debt Relief Act

We missed a story in a rather hectic week at work. The House passed the Mortgage Forgiveness Debt Relief Act on October 4, by a vote of 386-27.

Under the current tax code, cancelled mortgage debt on primary residences is counted as taxable income. The bill will permanently let borrowers to avoid this burden as long as the debt forgiven by a bank is for a foreclosed primary residence. 

Walz has voted to change the tax code:

Congressman Tim Walz voted to ease the financial burden on families going through home foreclosure by supporting H.R. 3648, the Mortgage Forgiveness Debt Relief Act of 2007. This bipartisan legislation will close an unfair provision in the tax code that forces people who have their homes foreclosed on to pay taxes on debt forgiven by their bank. 

Walz said today that the relief offered in this bill will restore fairness to homeowners in financial and economic distress by eliminating that tax burden.

"This is a critical issue for families throughout the country," said Walz. "Currently, when a bank forecloses on an individual's home, the bank forgives the debt and takes the home.  But the homeowner still needs to pay taxes on the value of the property, even though they no longer own it.  That is patently unfair to people who are already in a bad situation.  This legislation will eliminate that unfair provision in the tax code and allow people to get back onto their feet more quickly and, in turn, help to stabilize families and neighborhoods across the country."

The subprime mortgage market expanded rapidly from 2002-2005, however in 2006 the housing market declined and resulted in late mortgage payments and foreclosures across the country. The Mortgage Forgiveness Act is timely legislation that will help to stabilize the tumultuous housing market.

With the exception of Michele Bachmann, all of Minnesota's congressional delegation voted for the bill.  The Bush administration supports temporary relief, and hopes to make changes to the legislation as it makes its way through both houses of Congress.

Certainly the mortgage crisis is troubling to many Americans. A recent Minnesota Poll found Mortgage crisis worries 70%.

Does the spirit of Gil Gutknecht haunt Randy Demmer?

Reading an article in the Rochester Post Bulletin about a new law that removes wind energy production taxes from school district's revenue streams, we stumbled across this passage:

Republican Rep. Randy Demmer of Hayfield added that he had no idea this provision was put in the education bill when he voted. He has scheduled a meeting with education officials to discuss the policy and see if "there might be some rationales I'm not aware of."

Demmer didn't know what was in a bill he voted for?  Hmmm...what First District Republican legislator does that bring to mind?  Let's see..

Oh yeah, now we remember--that DM & E Railroad loan provision Gutknecht didn't know about when he voted on the transportation bill it was in:

Gutknecht campaign spokesman Bryan Anderson said it was “problematic” that the DM&E Railroad loan provision “was placed in the transportation spending bill late at night without a lot of members knowing about it.” Gutknecht was one who didn’t know about it.

A candidate for the Republican endorsement in MN-01 seat, Randy Demmer is campaigning on returning to traditional Republican values. We see now that he means it.

Update: another reminder of this spirit in action, last fall's lovely "Railroaded" Youtube:

Strib: Homage to the Club for Growth's script

The word "scenario" gets tossed around a lot in political analysis. Reading this morning's Star Tribune, we recalled the origin of the term:

A scenario (from Italian, that which is pinned to the scenery) is a synthetic description of an event or series of actions and events. In the Commedia dell'arte it was an outline of entrances, exits, and action describing the plot of a play that was literally pinned to the back of the scenery. It is also known as canovaccio or "that which is pinned to the canvas" of which the scenery was constructed.

Since Walz noted that he'd listen to farmers in his district, rather than ideologues at the Club for Growth, he's been on the conservative group's crosshairs.  And D. J. Tice's political reporters give us a glimpse behind the scenery where the Club for Growth is pinning its script on the canvas. Unfortunately, readers aren't given the context to understand the group directing this snake oil show.

Not missing an opportunity to give voice to conservative Beltway interests in its political coverage, the Star Tribune takes up the Club for Growth's talking points in Oberstar's gas tax may hit some political potholes:

'Don't make me vote on this'

With the president and many other Republicans opposed, some observers say it is unlikely that Democrats will want to press a close, party-line vote to increase the federal fuel tax, which has stood at 18.4 cents a gallon since 1993.

"If the president isn't interested, it has almost zero chance of passing," said David Keating, executive director of the small-government group Club for Growth.

One reason, Keating said, is that Democrats don't want to hand an election-year issue to Republicans. "The idea of Congress passing higher gas prices on motorists -- I don't think anyone's going to be interested," he said. "And any Democrat in a vulnerable district is going to think 'Please, guys, don't make me vote on this.' "

One example is freshman Democrat Tim Walz, whose rural Minnesota constituents could be hit hard by higher gas prices. Walz, considered a top legislative target for Republicans next year, has taken no position on Oberstar's proposal so far.

Note how the entire scenario above is spun straight from the mouth of the director of the Club for Growth. We'll doubtless hear it echoed in Right Blogisota as if it were a quote from Walz himself, rather than an invention of a DC ideologue.  A more judicious journalist might note that Walz's style is to listen to his constituents, and use research-based decision-making while dealing with constraints, rather than to jump on a bandwagon. Details, details.

Likewise, the Strib's readership might be better served were Diaz to more fully define the scriptmakers beyond  a "small-government group." 

What is the Club for Growth? Open Secrets,  Sourcewatch, PFAW ( also check out its archives), and the Center for Public Integrity provide some helpful information about the group and its funders. The PFAW site notes:

Club for Growth is comprised of two connected entities:

First, CFG is a “527” organization, which is allowed to collect unlimited contributions without disclosing donors’ names, and to run “issue ad” campaigns during elections. These ads do not directly call for the election or defeat of a candidate, and “527” groups do not have to disclose donors’ identity or reveal its activities to the IRS or the FEC.

Second, it is a political action committee (PAC), and organization capable of giving limited donations directly to campaigns and is regulated by the FEC.

Given the fact that contributions are unlimited, the spending by the “527” is far larger than that of the PAC, though specific finances are hard to trace. However, in total, CFG raised $9.2 million for its activities during the 2002 election cycle.

This information is a little dated, given  the FEC filed a lawsuit against the organization in 2005.  The lawsuit is still pending, but in order to make sure it can get around the rules, the Club has simply reorganized itself, according to Roll Call's April 11, 2007 article, Club for Growth, Other Big Groups Altering Tax Status.  Some choice excerpts from behind the subscription firewall:

The Club for Growth, the conservative political organization known for targeting moderate Republican lawmakers, recently shelved its 527 tax status in favor of the designation used by AARP, the National Rifle Association and others, a legal retooling many expect to accelerate as the 2008 election cycle turns on the afterburners.

"There's been a lot more scrutiny over the past several years on 527 organizations," said Michael Toner, former chairman of the Federal Election Commission and now a Republican election law attorney in private practice. "There's a growing recognition that 501(c)'s are the vehicles of choice in this legal and political environment."

Former Rep. Pat Toomey (R-Pa.), the group's president, first told club members in January of the plan to transfer operations from the much-maligned 527 tax status to 501(c)(4), a section of the tax code used by social welfare organizations. Charities, labor unions and business groups also are organized under section 501(c) of the tax code. . . .

. . .The club's reorganized tax status will alter little of the group's focus on "promoting economic freedom," Toomey wrote, but also will allow unlimited anonymous donations from individuals and allow the group to take part in a variety of new lobbying activities. Club directors also reconfigured its political action committee, which it can use to channel hard-dollar donations to candidates.

"With the Democrats now in charge of Congress, we need that hard-hitting advocacy more than ever ... we can now directly lobby Congress and run grassroots lobbying campaigns without paying huge tax penalties," Toomey wrote. "Unlike in the past, your donations to the Club will not be disclosed to the public, except in very limited circumstances."

A report out Tuesday by the Campaign Finance Institute also suggests that 527s will prove pass, once the chips for the 2008 election cycle are counted and cashed. Instead, big-dollar, soft-money donors increasingly may prefer redesigned groups such as the Club for Growth, which are precisely crafted to avoid hefty FEC fines and can keep their donor lists confidential. The requirement that 527s make public their donor lists proved politically troublesome recently for White House nominee and GOP donor Sam Fox.

"There was significant energy among the 501(c) advocacy groups and newer 'taxable' entities in '06," according to the Campaign Finance Institute's report "Soft Money in the 2006 Election and the Outlook for 2008." . . .

. . .The club has "decided that it would rather tangle with the [Internal Revenue Service] over the appropriateness of activity going on within a 501(c)(4) then tangle with the FEC in the current environment," Elias said.

Club President Toomey said his new group should be largely immune to meddling by Federal Election Commission lawyers. The group continues to wait for a federal judge's decision in a nearly two-year-old legal battle with the FEC over whether the club, as a 527 organization, should be required to file with the agency as a political action committee for raising and spending "millions of dollars to affect Congressional elections in the 2000, 2002, and 2004 campaigns."

Although its new status could shroud the group from some legal scrutiny, [Democratic election lawyer Marc] Elias said that simply switching to 501(c)(4) tax status does not eliminate altogether the possibility of an FEC lawsuit.

"If a 501(c)(4) ran an ad that 'expressly advocated' the election or defeat of a clearly identifiable candidate, the FEC would almost certainly take the position that that was impermissible ... because it would be a corporation making expenditures in connection with a federal election," Elias said.

Elias also speculated that the club's ongoing legal battles and its recent decision to reorganize are hardly isolated, suggesting that the club - and perhaps many other 527s - may face a decision of survival: switch tax status, or be prepared for lengthy and expensive court battles with the federal government.

"Does that mean the [club's] litigation is going well, or going badly?" Elias asked.

From the few procedural rulings by the court against the Club that we found in Lexis, not so good. No decision or settlement has been rendered in the case, near as we can tell.  Later in April, Congresswatch research director Taylor Lincoln wrote that the IRS Needs to Draw the Line on 501(c) Electioneering
One observation:

Public Citizen has warned for years that restrictions on 527s could prompt a flood of new Section 501(c) registrations by political groups unless there is better enforcement. This prediction is proving prescient. In the face of the FEC's growing oversight of 527s, the Club for Growth recently converted to 501(c) status. Former FEC Chairman Michael Toner chalked up the club's decision to "a growing recognition that 501(c)s are the vehicles of choice in this legal and political environment."

In 2004, the IRS cracked down on groups registered under Section 501(c)(3) of the tax code - charities and churches - which are forbidden from engaging in any electioneering efforts. But the agency has been derelict in enforcing the rules that apply to 501(c)(4), 501(c)(5) and 501(c)(6) groups. These groups' electioneering expenditures dwarf those of the charities and churches that ended up in the IRS's cross hairs.

Given the secretive Big Money contributors to the Club for Growth, it's been interesting reading the Club's puppets mouth pieties about Walz pandering to the rich.

The Strib article ends on a grace note. As if an afterthought, Diaz adds:

But Walz is hardly alone in reserving judgment in the early going. Rep. Jim Ramstad, a Minnesota Republican who, like Walz, positions himself as a moderate, said he is "reviewing the proposal."

Ah, yes, the moderate Republican. Doesn't look as if the Club revealed any stage directions about t he fate of the Rammer to Kevin Diaz.   

In the past, the Club for Growth has focused more on defeating moderate Republicans than on Democratic candidates and legislators. It did endorse one Democratic primary candidate down in Texas in 2006. Cough; both Democrats in the primary ended up winning House seats, but that, as Mr. Kipling used to say, was another story (and script).

Friday news digest: farm bill hearings and more

Farm Bill hearings
A friend in the Farmers Union passed this email along to us:

Dear Friend:

Next week, Congressman Tim Walz will begin a series of Farm and Energy Forums across the First Congressional District.  Attached you will find a brochure outlining the Farm and Energy Forum's and the impact of the Farm Bill on the daily lives of Minnesotans.

The House Agriculture Committee - on which Congressman Walz proudly serves alongside fellow Minnesotan and Chairman, Collin Peterson - will write a new farm bill this year.

Few pieces of legislation Congress will consider this year will have as much an impact on southern Minnesota as the farm bill.  The legislation lays out our country's priorities for farm policy, conservation, rural development, renewable energy and nutrition programs like the School Lunch Program and Food Support programs.

From his seat on the House Agriculture Committee, Congressman Walz will have the chance to play a key role in drafting this legislation. The Farm and Energy Forum's are designed to receive input from farmers and local residents.  The bill is being written from the ground up and the Congressman wants to make sure southern Minnesota farmers and rural communities are well served.

We hope you join Congressman Walz at a Farm Bill Forum in your area. The Congressman is eager to take your ideas and suggestions and turn them into actions that help our farm and ranch families build a stronger rural economy, increase conservation and promote renewable sources of energy.   

Attached is a Farm Bill Impact brochure and a list of events we will hold during the April recess.   If you have any questions or need additional information, please do not hesitate to contact me at 507-993-1284.

All the best,
Matthew Wohlman
Agriculture Director
Office of Congressman Timothy J. Walz

Congressman Timothy J. Walz Farm Bill Forum's

Monday, April 2, 2007

·  4 p.m. - Slayton Farm Bill and Energy Meeting
o       Pizza Ranch - 2306 Broadway Avenue
o       This meeting will be specifically aimed toward discussing renewable energy policy.

Wednesday, April 4, 2007

·  3 p.m. -Austin Farm Bill Meeting
o       Elks Lodge, 102 1^st Avenue Northeast

Monday, April 9, 2007

·  10 a.m. - Fairmont Farm Bill Meeting
o       Red Rock Center, 222 East Blue Earth Avenue

·  2 p.m. - Albert Lea Farm Bill Meeting
o       Freeborn / Mower Cooperative Services Headquarters Community Room, 2501 Main Street East

Tuesday, April 10, 2007

·  2 p.m. - New Ulm Farm Bill Meeting
o       Martin Luther College - Luther Student Center Building Cafeteria, 1995 Luther Court

Wednesday, April 11, 2007

·  10 a.m. - Jackson Farm Bill Meeting
o       Minnesota West Community and Technical College, Room Y101

·  2 p.m. - Blue Earth Farm Bill Meeting
o       Town and Country Plaza - Ag Center Building, 415 South Grove Street (Hwy 169)

Friday, April 13, 2007

·  11:00 a.m.- Plainview Farm Bill Meeting
o       St. Joachim's Church School - 900 West Broadway

Saturday, April 14, 2007

·  3:00 p.m. - St. James Farm Bill Meeting
o       St. James Community Center Theater, 505 1^st Avenue

Download Representative Tim Walz's Farm Bill brochure.

WaPo's The Fix: Dems Dominate List of Endangered House Members
Like Karl Rove, Chris Cillizza compiles a list of vulnerable Dems and doesn't put Congressman Walz on it.

Evil Bobby gives his take in Tim Walz scares Rove....  Perhaps Rove has figured out the answer to the question he asked Walz back in November.

At Truthsurfer, Mr. Blue's post Tilt-A-Whirl: The State Ride? points out Senator Day's indifference to kindergartners in the Second District part of his turf.

Fairmont Sentinel: Walz stands by budget plan
Megan Feddersen reports on Walz's reaction to the House budget plan:

The budget blueprint passed Thursday by the U.S. House of Representatives should benefit agriculture and rural development in communities like Fairmont and surrounding towns, according to Congressman Tim Walz, D-Minn. . . .

. . .Walz said Republicans “accusations of ‘tax and spend’ are not true. But ‘borrow and spend’ has been the norm around here, but that is going to end.”

Democrats hope to eliminate the deficit and balance the budget, predicting a surplus of $153 billion by the year 2012.

Representative Walz sees benefits from the budget plan for veterans:

“The crown jewel of this week is increases for veterans,” he said. “... With this budget we’re providing more resources in the first three months than the last five years combined.”

Dick Day afternoon: short memory

In Dick Day's Short Memory, Minnesota Republican Watch expands on the Lutefisk Liberal's now-and-then examination of Dick Day's reversals on gas taxes. Day is seeking the GOP endorsement for the MN-01 congressional seat.

Sunday news digest: Coffeeklatching with the congressman

Mouse failure slowed this morning's post, which starts with the New Ulm Journal's write-up of yesterday's Saturday Store Stop at the New Ulm Hy-Vee.  We ventured into the pea-soup to get some pictures, which we'll upload in a separate post. Kurt Nesbitt's story in today's New Ulm Journal accurately captures the spirit of the stop, with Congressman Walz introducing himself to the breakfast bunch, while old friends from the Guard, DFL activists, and curious Republicans stopped by.  Nesbitt writes:

. . . The war in Iraq was the most-frequently discussed topic during the freshman Democrat’s visit, as were military veteran’s issues, even though the Farm Bill, Medicare Part D and U.S. relations with China were high on the list of issues that Walz and the diners talked about.

“It’s pretty much a consensus that we’ve got to everything we can to support our soldiers and veterans but that we’ve got to force the Iraqis to start taking responsibility for this,” said the freshman Democrat, three hours after he arrived at the supermarket.

“That was a tough vote for me yesterday,” he said, referring to the U.S. Troop Readiness, Veteran’s Health and Iraq Accountability Act of 2007, which calls for a withdrawal of all U.S. troops from Iraq by April 2008.

“..Because I clearly understand, being someone with a military background, that the Executive and the commander-in-chief is the commander-in-chief, but I also understand that the Constitution as it is written gives us a fully-formed branch of government and the authority that we put into that to exercise to make sure we’re forcing the Iraqis take responsibility is now going to be there.”

Walz also met several people who he knew in the Army and served with who served in Iraq that he trained.

“They’re doing a fantastic job. I’m hearing it from across the Army spectrum. These from Minnesota are getting a great reputation,” he said. . . .

We'll post pictures later of one of those Iraq vets whose brother is still in Iraq.  Nesbitt's picture in the Journal is pretty good; Walz is a hard subject to photograph.

After the stop ended, the fog had lifted on the northern bank of the Minnesota River Valley, and we went up to Fort Ridgely State Park to do some birding.  The bluebirds have returned; their cheerful song graced the historic site.

U-DFL Blog: Forum with Walz
Those Twin Citians who bemoan a drive into the lovely Minnesota River Valley can get a chance to see Congressman Walz in Minneapolis on April 12, according to the U-DFL Blog:

The Center for the Study of Politics and Governance will be hosting a series of public forums with a number of prominent elected Minnesotans.  All of these forums will take place in Cowles Auditorium at the Humphrey Center:

Monday, April 2: Senator Amy Klobuchar Noon-1:30pm

Monday, April 9: Congresswoman Betty McCollum Noon-1:30pm (not yet confirmed)

Thursday, April 12: Congressman Tim Walz 10am-11:30am

Wednesday, May 30: Congressman Jim Ramstad Noon-1:30pm

MnPact! Progressive Blog: Top o' the morning, Senator Day
David Mindeman takes another look at Senator Day's  comments on the gas tax in Heavens to Lucky Charms: Dick Day is Still Full of Blarney.  Mindeman's onservations are nicely supplemented by the Lutefisk Liberal's See Dick Flop, which runs a tidy then and now contrast of Day's evolving position.  Day is seeking the GOP endorsement for congress in the 1st.

Auf Deutsch: Another perspective on Murphy, Murtha and Walz
In Bush ruft US-Kongress zur Zusammenarbeit auf, we see the Murphy, Murtha, and Walz photo taken from over Walz's shoulder.

Early evening digest: Walz news and more

Mankato Free Press: Walz eager to dig into legislative issues
The Free Press's Mark Fischenich reports that the First's new representative is ready to get an important piece of legislation passed:

The rookie Democrat is a co-sponsor of legislation to boost the minimum wage for the first time in a decade, lifting it from $5.15 per hour to $7.25.

“It’s a clean bill, so it will go pretty smoothly,” he predicted. “... I think you’ll see this pass, and I think you’ll see the president sign it.”

The wage legislation is part of a series of bills the new Democratic majority in the House hopes to pass in its first 100 hours of floor sessions. Action in the more tightly split Senate, where rules give the minority more opportunities to block legislation, is expected to be slower.

House Democratic leaders came under criticism from Republicans when they announced plans to fast-track the legislation in the first 100 hours. Walz said he isn’t entirely comfortable with restricting opportunities for hearings and Republican amendments on the Democrats’ 100-hour agenda.

When it comes to the minimum wage bill, Walz said it would be easy to deflect opposition because the wage hike is so overdue. It’s unjust that someone can work 40 hours a week, 52 weeks a year and still be below the poverty level — which is the case with full-time minimum wage workers now, he said.

“I’m sure not afraid to debate the minimum wage bill with anyone considering that 89 percent of the people in the country support it,” he said.

Walz is also comfortable with new rules that prevent legislators from traveling  on lobbyists' dime and restricting gifts from lobbyists:

Walz was pleased with the rules the Democratic majority put in place in its first days in charge, including restrictions on gifts from lobbyists and a ban on lobbyist funded travel for members of Congress. . . .

. . . Walz said he was able to hold dozens of meetings with groups and constituents between the election and his swearing-in.

“No one had to fly me to Florida, nobody had to buy me lunch, no one had to give me a gift,” he said. “That’s my job.”

Walz had campaigned on restoring pay-as-you-go rules and was happy to see the House approve them:

Walz also applauded the House’s decision to reinstate the pay-as-you-go budget rules that were dropped when President Bush and congressional Republicans were pushing large tax cuts in 2001. The rules, which were credited for helping to balance the federal budget in the years leading up to 2001, require that tax cuts and spending increases be offset by tax increases or spending cuts.

Essentially, PAY-GO rules attempt to force Congress to prioritize rather than simply borrowing more money to cover the cost of spending more or taxing less.

It’s going to be difficult. It’s going to be painful,” Walz said. “... But to me, it’s an absolute imperative.”

New Ulm Journal:  Wary of taxes
The New Ulm Journal's editorial board suggests caution on tax increases, but sees two specific areas in which taxes could be raised:

Be wary of taxes

THUMBS UP: Republican senators and Gov. Tim Pawlenty are sounding a concerned note with the first round of legislative proposals coming from Senate DFLers. There are a number of tax increases included, and Republicans think we should rely on the increases in revenue that are already showing up in the budget.

We are wary of new taxes too, but there are a couple of tax proposals that deserve consideration. One would be an increase in the gasoline tax, which has stayed at 20 cents per gallon since 1988. Since then inflation has eaten away at the purchasing power of the gas tax, and the volume and cost of necessary highway repairs has grown. We are far from raising the estimated billion dollars a year that is needed simply to keep up with road and bridge repair and rebuilding needs.

There is also a proposal for an amendment to raise the sales tax, with the increase dedicated to the outdoors, the environment and the arts. This would require a public referendum. Why not let the people make the decision?

When it comes to tax proposals we prefer a cautious look rather than a knee-jerk “No!”

Knee-jerk conservatives called out by the New Ulm Journal?   The times they are a-changin'.   

More legislative news in the Journal here.

Strib: What the new speaker says
Editorial page columnist Lori Sturdevant talks to the new speaker of the Minnesota House and comes away with a few observations:

This is a city politician with a decidedly rural stamp. The résumé includes state 4-H president and dairy princess -- but that's only a little of what Kelliher took with her from the farm near Lake Crystal when she moved to Minneapolis.

Add a capacity for hard work ("I never took a vacation until I was an adult,") a knack for problem-solving ("We were forever talking about how to fix things") and realistic expectations ("It was about making a living, not making a fortune.")

Looking out for the whole state comes naturally to her. Transportation policy is a case in point. Kelliher won't reject out-of-hand proposals to create a metro-only funding base for transportation improvements. She's too pragmatic for that. But she'd prefer a whole-state approach that addresses rural highway safety as well as metro congestion. "That's the way we do things in Minnesota."

She easily sees similarities among people and places. "The place where we live (the Bryn-Mawr neighborhood in Minneapolis) is very engaged in the community. I like that a lot. It reminds me of things that were very important to me as a kid -- my little Lutheran Church, my 4-H club. ...

"The values of my legislative district seem very reflective of the values of the state right now. There's a real interest in attacking rising property taxes. There's a care and concern for our great educational system, from early childhood to higher ed. And health care -- these things are not specific to any one district. They've become universal to Minnesota."

Rochester Post Bulletin: Bataan survivor: Important thing is to help other people
Here's an inspiring story about a veteran:

PLAINVIEW -- Every memory shared by World War II veteran Ken Porwoll about the brutality of war seems to be accompanied by a story of human kindness.

A survivor of the Bataan Death March, Porwoll spent nearly 31/2 years in prisoner of war camps in Japan, witnessing and enduring grueling treatment that killed many of his comrades.

And yet, when asked by a high school student Friday about the most important thing he learned then, Porwoll answered: "To help other people."   . . .

Read the whole thing.

Austin Daily Herald: Austin native competes in VH1's white rapper contest
More signs of change in southern Minnesota as Austin native raps to the political beat on VH1.  Here's a link to Jus Rhymes (Jeb Middlebrooks) You Tube video and honors undergraduate thesis at the U.  Decide for yourself: for better or worse, we leave music criticism to the Wege.

Lakefield Standard: These are taxing times for everyone

Byron Kroeger, at the Lakefield Standard, writes that These are taxing times for everyone, some more than others. After reviewing the situation in Jackson County, he concludes with what we read as a call for a more progressive tax structure in Minnesota:

. . . I note what is happening right here in Jackson County...

The county board continues to investigate spending some $15 million on projects that offer no financial returns to the taxpayers. The school district was asking for millions, as well, I guess because the school board, administrators and teachers can’t make ends meet.

One can only imagine what the tax consequences would be if they all got their wish. I figure if they did I would be paying over $60 a month in property taxes, just on my little hovel in Lakefield.

So, what can we taxpayers do to stem the tide? I suppose we could start by continuing the trend that might have started with the November elections – let our representatives know we aren’t happy and if they refuse to take note they will lose their opportunity to represent us.

I think that the state should be the first target because they are withholding the funding to local governments causing an imbalance in the tax burden. By placing the tax burden on the property owners you remove the burden from the people and corporations who make the most money.

In other words, you not only make it more difficult for the average John Q. and Jane Public to own property, you also take away their ability to buy even the basic necessities of life. In other words, “the rich get richer and the poor get poorer.”

Yes, I realize that you don’t want to put roadblocks in the way of the economy but what good does this do when more and more consumers get locked out of this economy?

No, it’s not an easy decision for our representatives to make but, gee whiz, why do you want to chase people out of our state? So the people who have the wherewithal to live comfortably can have it all to themselves?

I say it’s about time everyone in America comes to their senses. Our government types should pay more attention to the reality of the increasing number of people who can’t afford the high cost of living; business types should realize their businesses cannot survive without customers; and the taxpayers should speak a little louder so their deafened representatives can hear them more clearly.

Wake up America!

The mainstream media rarely broaches the subject of progressive and regressive tax structures, so we suggest you visit our friends at Across the Great Divide for more on this topic here,  and here.