Thursday, January 31, 2013

Reuters: Politics: House lawmakers mull path to citizenship for illegal immigrants

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House lawmakers mull path to citizenship for illegal immigrants
Feb 1st 2013, 01:42

By Rachelle Younglai

WASHINGTON | Thu Jan 31, 2013 8:42pm EST

WASHINGTON (Reuters) - A bipartisan group in the U.S. House of Representatives is attempting to craft a bill that would give millions of illegal immigrants a way to become citizens, House aides said on Thursday, mirroring an effort in the Senate.

One of the aides said the House legislation would be tougher in some ways than the plan put forward on Monday by four Democrats and four Republicans in the U.S. Senate.

The Senate proposal, which has not yet been put into legislative form, would require illegal immigrants to undergo background checks and pay back taxes and penalties before obtaining temporary legal status in the United States.

The House aide, who requested anonymity, said the House proposal was "tougher in terms of the application process," but would not go into detail.

The House group includes Republicans Mario Diaz-Balart of Florida, John Carter of Texas and Raul Labrador of Idaho, and Democrats Luis Gutierrez of Illinois and Zoe Lofgren from California. The latter is the top Democrat on a House Judiciary subcommittee overseeing immigration.

Another congressional aide said the House legislation was 90 percent complete and included a similar provision to the Senate plan that would make it harder for employers to knowingly hire illegal immigrants.

"We are in touch with our counterparts in the House," New York Democratic Senator Charles Schumer, one of the "Gang of 8" senators who released the Senate proposal on Monday, told a news conference.

"We believe that they're moving along on a set of principles that will be fairly similar to ours, not completely the same."

Any major changes to the immigration law must win support in the Republican-controlled House, where conservatives have in the past rejected what they consider would be an amnesty for those who entered the country illegally.

The fact that the bipartisan group of House lawmakers is likely to include a "path to citizenship" in its proposal is no guarantee that the idea will overcome expected opposition from conservatives, but it could help because it shows some House Republicans are on board.

However, it was unclear on Thursday whether Labrador, one of the House group's newest members, would sign off on the path to citizenship.

"I don't think there should be a new path to citizenship for the adults," Labrador told Reuters. "I Believe that in the House it will be very difficult to pass any bill that has a pathway to citizenship," he said.

Labrador has proposed a program that would allow illegal immigrants who have jobs to apply for temporary but renewable work visas.

The House group, with a membership that has varied, has been meeting privately for about four years. Lawmakers were ready to unveil their immigration legislation in 2012, but shelved the bill because they knew it would not go anywhere in an election year.

(Reporting By Rachelle Younglai; Editing by David Brunnstrom)

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Reuters: Politics: Republicans assail Pentagon nominee Hagel at confirmation hearing

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Republicans assail Pentagon nominee Hagel at confirmation hearing
Feb 1st 2013, 00:26

By Phil Stewart and Patricia Zengerle

WASHINGTON | Thu Jan 31, 2013 7:26pm EST

WASHINGTON (Reuters) - Republican lawmakers attacked Chuck Hagel on Thursday at a contentious hearing over his nomination to become the next U.S. defense secretary, questioning his judgment on war strategy and putting him broadly on the defensive.

In one of the most heated exchanges, Senator John McCain aggressively questioned Hagel, interrupting him and talking over him at times. He voiced frustration at the former Republican senator's failure to say plainly whether he was right or wrong to oppose the 2007 "surge" of U.S. troops in Iraq.

"Your refusal to answer whether you were right or wrong about it is going to have an impact on my judgment as to whether to vote for your confirmation or not," McCain said.

Hagel, who like McCain is a decorated Vietnam War veteran, declined to offer a simple yes or no answer, responding, "I would defer to the judgment of history to sort that out."

As President Barack Obama's choice to lead the Pentagon in his second term, Hagel could clinch Senate approval thanks to help from majority Democrats. But he appeared to pick up little new Republican support as his hours-long hearing wore on.

Although Republicans could create procedural hurdles to block him, there were no overt promises at the hearing to do so.

"Unless the Republicans filibuster him, the nomination is going to go through," said Bill Galston, a former adviser to President Bill Clinton.

Ford O'Connell, a Republican strategist, said, "It's been a tough day for Chuck Hagel overall."

"I think the Republicans are trying to decide whether they really want to push the pedal to the floor with Hagel," he said.

The Senate Armed Services Committee's Democratic chairman, Carl Levin, praised Hagel's performance after the nearly eight-hour hearing ended. "I thought he did very well. I thought he was responsive. He kept his cool. His experience was both modestly and eloquently described," the Michigan senator said.

The earliest the committee will vote on Hagel's nomination is next Thursday, Levin added.

Hagel's fellow Republicans dredged up a series of his past controversial statements on Iran, Israel and U.S. nuclear strategy, trying to paint him as outside mainstream security thinking. Even in polarized Washington, the grilling was highly unusual for a Cabinet nominee.

Senator Lindsey Graham of South Carolina laid into Hagel for once accusing a "Jewish lobby" of intimidating people in Washington, comments Hagel repeatedly said he regretted. Asked whether he could name one lawmaker who had been intimidated, Hagel said he could not. It was one of the many times he appeared uncomfortable.

"I can't think of a more provocative thing to say about the relationship between the United States and Israel and the Senate or the Congress than what you said," Graham said.

SEEKING TO SET RECORD STRAIGHT

If he is ultimately confirmed, Hagel will take over the Pentagon at a time of sharp reductions in defense spending, and with the United States still facing major challenges, including China, Iran and North Korea.

Hagel, speaking publicly for the first time since the attacks against his nomination began, seemed cautious and halting at times. He sought to set the record straight, assuring the panel that he backed U.S. policies of preventing Iran from obtaining a nuclear weapon and supporting a strong Israel.

"No one individual vote, no one individual quote, no one individual statement defines me, my beliefs, or my record," Hagel said in opening remarks to the packed hearing room.

"My overall world view has never changed: that America has and must maintain the strongest military in the world."

In an unusual reversal of partisanship, Democrats, more than Republicans, gave Hagel sympathetic support and time to air his views, which adhered broadly to Pentagon policy.

"I feel like I want to apologize for some of the tone and demeanor from today," said Senator Joe Manchin, a Democrat from West Virginia.

Galston said Thursday's hearing appeared to sap some of the momentum Hagel had going into the session after weeks of pushback by his allies against criticism.

He added, "It's going to be harder to present Hagel's confirmation now as a victory for bipartisanship - overcoming doubts, or coming together around sensible mainstream policies."

Despite the harsh tone from many Republicans, some senators from the party approached Hagel more collegially.

Senator Saxby Chambliss of Georgia called Hagel by his first name and exchanged jokes with him during his testimony. He served alongside Hagel in the Senate.

But Hagel years ago angered many Republicans by breaking with his party over the handling of the Iraq war.

It was one of several contentious chapters of modern U.S. history that surfaced during the session, from the Vietnam War, where Hagel served as an infantryman and was wounded, to former President Ronald Reagan's call for nuclear disarmament.

Hagel, who would be the first Vietnam veteran to serve as Pentagon chief, also was questioned on his view of the Pentagon budget. He is known as an advocate for tighter spending controls.

'WRONG' MAN FOR THE JOB

Even before Hagel started speaking, James Inhofe, the panel's senior Republican, called him "the wrong person to lead the Pentagon at this perilous and consequential time."

"Senator Hagel's record is deeply troubling and out of the mainstream. Too often it seems he is willing to subscribe to a worldwide view that is predicated on appeasing our adversaries while shunning our friends," said Inhofe of Oklahoma.

McCain's harsh attitude toward Hagel - whom he also singled out for opposing Obama's increase of forces in Afghanistan - was a far cry from their past, warm ties. McCain campaigned for Hagel in his Nebraska U.S. Senate race in 1996, and Hagel was national co-chairman of the Arizona Republican's unsuccessful 2000 presidential bid.

On Thursday, McCain said concerns about Hagel's qualifications ran deep.

"Our concerns pertain to the quality of your professional judgment and your world view on critical areas of national security, including security in the Middle East," he said.

In the entire Senate, which would vote on Hagel if he is cleared by the committee, only one of the 45 Republicans - Mississippi's Thad Cochran - has said he backs Hagel.

Senators Marco Rubio of Florida and Dan Coats of Indiana on Thursday joined the list of Republicans who said they would vote against Hagel.

(Additional reporting by David Alexander; Editing by Warren Strobel, Jackie Frank and Peter Cooney)

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Reuters: Politics: Exclusive: Colorado Lieutenant Governor a top pick for US Labor chief - sources

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Exclusive: Colorado Lieutenant Governor a top pick for US Labor chief - sources
Feb 1st 2013, 00:29

Colorado Lieutenant Governor Joe Garcia (R) looks at notes while campaigning with Colorado Governor John W. Hickenlooper in Denver, Colorado in this 2010 file photo. Garcia is a leading candidate to become secretary of labor during President Barack Obama's second term, sources familiar with the situation told Reuters on Thursday. REUTERS/Evan Semon

Colorado Lieutenant Governor Joe Garcia (R) looks at notes while campaigning with Colorado Governor John W. Hickenlooper in Denver, Colorado in this 2010 file photo. Garcia is a leading candidate to become secretary of labor during President Barack Obama's second term, sources familiar with the situation told Reuters on Thursday.

Credit: Reuters/Evan Semon

By Jeff Mason

WASHINGTON | Thu Jan 31, 2013 7:29pm EST

WASHINGTON (Reuters) - Colorado Lieutenant Governor Joe Garcia is a leading candidate to become secretary of labor in President Barack Obama's second-term cabinet, sources familiar with the situation told Reuters on Thursday.

Garcia, a Hispanic former president of Colorado State University-Pueblo, would bring racial diversity and a Western flair to Obama's team.

The president has faced criticism for failing to choose women and minority candidates for cabinet vacancies at the departments of state, defense, and treasury.

Garcia, if nominated and confirmed, would succeed Labor Secretary Hilda Solis, a Latina who earlier this month announced plans to resign.

Garcia, through a spokesman, declined to comment. The White House also declined to comment.

The promotion to lead a federal government agency would be a big jump for Garcia, who rose rapidly from a career in higher education to become Colorado Governor John Hickenlooper's No. 2.

Hickenlooper picked Garcia to be his running mate in 2010. Once in office, he made Garcia executive director of Colorado's Department of Higher Education in addition to his lieutenant governor role.

"Joe Garcia is one of the most extraordinary individuals I've worked with. Everything he does he excels at," Hickenlooper said in a statement emailed to Reuters by a spokesman.

"We would hate to lose him, but our loss without question would be the nation's gain," he said.

The choice of Garcia would highlight the importance of Latinos - a hugely influential voting bloc - and of Colorado, a political swing state that supported Obama in the 2012 election.

U.S. Interior Secretary Ken Salazar, a fellow Hispanic from Colorado, said earlier this month he planned to leave his post by the end of March to return to his ranch.

Garcia was credited with revitalizing student enrollment, improving finances and strengthening the reputation of Colorado State University-Pueblo.

"Joe Garcia is incredibly talented," said Rick Palacio, chairman of the Colorado Democratic Party, who said he was not aware that Garcia was a candidate for the Labor post. "I think he brings a lot to the table."

Obama has singled out Garcia for praise during campaign trips to Colorado, calling him "one of the finest lieutenant governors" during a trip to Denver in May.

Obama chose John Kerry, a former Democratic presidential nominee and Massachusetts senator, to succeed Hillary Clinton as secretary of State; Jack Lew, a former White House chief of staff, to succeed Timothy Geithner as treasury secretary; and Chuck Hagel, a former Republican senator, to succeed Defense Secretary Leon Panetta.

Garcia is a graduate of the University of Colorado at Boulder and Harvard Law School.

(Editing by Alistair Bell and Cynthia Osterman)

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Reuters: Politics: Florida governor seeks higher school aid, business tax cuts

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Florida governor seeks higher school aid, business tax cuts
Jan 31st 2013, 23:40

By Michael Peltier

TALLAHASSEE | Thu Jan 31, 2013 6:40pm EST

TALLAHASSEE (Reuters) - Florida's Republican governor on Thursday proposed a hefty $4 billion hike in state spending in a budget plan that includes a $1.2 billion increase in school aid, cuts in business taxes, and relies on fatter state sales-tax collections.

Accompanied by teachers, business leaders and state employees, Gov. Rick Scott told reporters at the Capitol that his $74.2 billion spending plan for fiscal year 2013-14 illustrated economic recovery in Florida and tough budget decisions made by lawmakers over the last few years when revenues were faltering.

Buoyed by increases in sales-tax revenues, Scott's plan was the first since the 2008-09 budget cycle that did not include a sizeable revenue shortfall going into the legislative session set to begin in March.

Scott's proposal includes recommendations to lawmakers, who craft the state's spending plan ahead of the new budget year starting on July 1.

Florida's general revenue portion of the budget, a $27.1 billion pot used for discretionary spending, marks an increase of 4.7 percent over last year.

"This is further evidence that Florida's economy is back on track and growing again," Scott told reporters.

Other states, such as California, are also seeing increased revenues. Jerry Brown, California's Democratic governor, three weeks ago proposed a budget plan with the state's first surplus in a decade, but urged restraint in spending.

Some other governors are championing tax cuts, and in Texas on Tuesday, Republican Gov. Rick Perry recommended returning excess state revenue to taxpayers.

Florida's jobless rate stood at 8 percent in December, the best showing in four years for a state still battling back from the U.S. housing bust. But it still remains among the highest rates and above the national unemployment rate of 7.8 percent, according to federal government data. (For details, please see: here)

For business, Scott's plan calls for expanding the state sales-tax exemption on machinery and equipment used in manufacturing, a tax break expected to save 17,500 employers about $140 million a year.

On the education front, Scott seeks an across-the-board $2,500 raise for public school teachers as part of his proposed $1.2 billon of increases in K-12 education spending.

The plan drew praise from Florida's largest teachers union, whose members generally haven't seen raises in several years.

"We are happy the governor is recognizing and investing in Florida's high performing public schools," said Andy Ford, president of the Florida Education Association. "In most of Florida, our public schools are the largest employer."

The governor's proposal also includes $60 million for Everglades restoration and another $75 million for the state's environmental land buying program.

Scott sees a lean year for bonding. His budget blueprint includes about $750 million in transportation bonds, which are paid for by fuel tax revenues and do not affect the state's general revenue budget. The proposal does not include any bonding for school construction or environmental land purchases.

(Writing and additional reporting by Michael Connor in Miami; editing by Gunna Dickson)

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Reuters: Politics: Exclusive: Colorado Lt. Governor a top pick for Labor chief - sources

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Exclusive: Colorado Lt. Governor a top pick for Labor chief - sources
Jan 31st 2013, 21:45

By Jeff Mason

WASHINGTON | Thu Jan 31, 2013 4:45pm EST

WASHINGTON (Reuters) - Colorado Lieutenant Governor Joe Garcia is a leading candidate to become secretary of labor during President Barack Obama's second term, sources familiar with the situation told Reuters on Thursday.

Garcia, a Hispanic former president of Colorado State University-Pueblo, would bring racial diversity and a Western flair to Obama's team.

The president has faced criticism for selecting white men to fill cabinet vacancies at the departments of state, defense, and treasury.

Garcia, if nominated and confirmed, would succeed Labor Secretary Hilda Solis, a Latina who earlier this month announced plans to resign.

Garcia's pick would highlight the importance of Latinos - a hugely influential voting bloc - and of Colorado, a political swing state that supported Obama in the 2012 election.

A spokeswoman for Garcia declined to comment.

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Reuters: Politics: Former New York mayor Ed Koch moved to hospital intensive care

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Former New York mayor Ed Koch moved to hospital intensive care
Jan 31st 2013, 22:26

By Edith Honan

NEW YORK | Thu Jan 31, 2013 5:26pm EST

NEW YORK (Reuters) - Former New York City Mayor Ed Koch was moved to a hospital intensive care unit on Thursday, his spokesman said, in a sign that his health could be deteriorating.

Koch spokesman George Arzt said the 88-year-old politician, who earned a reputation for being as outspoken as he is colorful, was being moved so his cardiologist could better monitor his condition. Koch has been treated at New York-Presbyterian Hospital on and off since January 19.

Koch was re-admitted to the hospital on Monday after complaining of shortness of breath. He was unable to attend Tuesday's premier of "Koch," a documentary about his turbulent three terms as mayor, at the Museum of Modern Art.

In New York's City Hall from 1978 to 1989, Koch - with his trademark phrase "How'm I Doing?" - was seen as the personification of New York City.

"I don't think there was anybody who had more fun being mayor as Ed Koch," City Council Speaker Christine Quinn, who is in the race to be the city's next mayor, said while walking the premier's red carpet.

Koch was credited with helping to restore confidence in the city at a time when it stood at the brink of financial ruin. Under his leadership, New York City regained its fiscal footing and underwent a construction boom.

His time in office was also marked by corruption among his political allies, racial tensions, a rise in cases of AIDS and HIV, and an increase in homelessness and the crime rate.

(Reporting by Edith Honan; Editing by Ellen Wulfhorst)

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Reuters: Politics: Massachusetts Representative launches bid for Kerry's Senate seat

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Massachusetts Representative launches bid for Kerry's Senate seat
Jan 31st 2013, 18:39

U.S. Representative Stephen Lynch (D-MA) meets with officials at the Iraqi Foreign Ministry during his visit to Baghdad July 26, 2009.

Credit: Reuters/Hadi Mizban/Pool

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Reuters: Politics: Kerry likely to move cautiously on Middle East peace

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Kerry likely to move cautiously on Middle East peace
Jan 31st 2013, 19:21

File photo of Secretary of State-designate John Kerry in Columbia January 30, 2004. REUTERS/Kevin Lamarque

File photo of Secretary of State-designate John Kerry in Columbia January 30, 2004.

Credit: Reuters/Kevin Lamarque

By Arshad Mohammed

WASHINGTON | Thu Jan 31, 2013 2:25pm EST

WASHINGTON (Reuters) - The United States has hinted it might try Middle East peace-making once again, but Secretary of State-designate John Kerry is likely to move cautiously, in contrast to U.S. President Barack Obama's failed, high-profile first-term initiative.

While the possibility of another failure may hang over the White House, Kerry suggested this week that time was running out for a two-state solution with Israel living alongside a sovereign Palestinian state. He said it would be "disastrous" if it did.

When Obama came into power in 2009, he made peace between Israelis and Palestinians a priority, visiting the State Department two days after taking office to announce his choice of former Senator George Mitchell as his special envoy.

Four years later, the president has little to show for it.

Formal talks between the Israelis and the Palestinians broke down in 2010 within weeks of resuming. Mitchell resigned in 2011 and both sides have since taken steps that have antagonized the other - Israel by building Jewish settlements on land the Palestinians want for a state and the Palestinians by seeking enhanced status at the United Nations.

Against this backdrop, former senior U.S. peace negotiators said they expect Obama to proceed cautiously and to let Kerry, who will be sworn in on Friday, take soundings for any fresh effort. That could allow Obama to avoid investing too much personal capital in a fresh effort until there was a prospect of real progress.

"I believe that Kerry and Obama are committed and interested in doing something," said Aaron David Miller, a vice president at the Woodrow Wilson International Center for Scholars, who advised Democratic and Republican secretaries of state on Arab-Israeli peace negotiations from 1982 to 2003.

However, Miller said the two sides were too far apart right now for any big initiative to succeed and that a more circumspect approach made more sense.

"Unlike last time around ... (Obama) is going to be quite patient and deliberate in avoiding the mistakes he made during his previous run, which is why it's really hard right now ... to predict the arc of any sort of big initiative," he said.

While neither Kerry nor Obama have specified what approach they plan, some of Kerry's allies outside government have suggested that he wants to move aggressively.

Miller and other former U.S. diplomats interviewed said they were not privy to what plans, if any, the two men might have.

However, they said Obama's second term offered a new chance with Kerry, a new chief diplomat who has made no secret of his interest in the Middle East, and that the January 22 Israeli elections created a somewhat better environment for peace despite the intrinsic challenges.

Having watched the peace process unfold, and unravel, from his perch on the Senate Foreign Relations Committee over the last three decades, analysts said Kerry has a deep knowledge of the issue and its players.

Among the obstacles are the divisions within the Israeli and Palestinian societies about making peace; a sense of disbelief that peace itself may ever be possible; and the rise of Islamist parties, notably in Egypt, that may be less supportive of it.

'DISASTROUS'

At his January 24 confirmation hearing, Kerry said "my hope ... my prayer is that perhaps this can be a moment where we can renew some kind of effort to get the parties into a discussion."

"We need to try to find a way forward, and I happen to believe that there is a way forward," he said, but added:

"I also believe that if we can't be successful, the door ... to the possibility of a two-state solution could shut on everybody and that would be disastrous."

The two-state solution refers to the idea of Israel living alongside a sovereign Palestinian state in the West Bank and the Gaza Strip, territories it seized in the 1967 Middle East War.

To achieve this, the two sides would have to agree on borders, Jewish settlements, the status of Jerusalem and the fate of Palestinian refugees, compromises that have eluded them for decades.

Martin Indyk, vice president of foreign policy studies at the Brookings Institution think tank, said there were signs of Obama's skepticism about the odds for peace. He cited a piece by The Atlantic's Jeffrey Goldberg in which Obama is reported to have said "Israel doesn't know what its own best interests are."

Indyk said that if Obama believed "that the prime minister of Israel doesn't have the best interests of Israel at heart, is a political coward, isn't going to take risks for peace - if that your basic view, why would you bother, why would you try?"

"On the other side is John Kerry's belief that the window is closing on the two-state solution and that it is an obligation of the United States to try to stop that from happening, at least to preserve the hope of a two-state solution," he said.

'TESTING THE WATERS'

"The combination could lead to a willingness on the part of the president to have the secretary of state try again, but rather than jump in ... it's likely to be a testing of the waters," Indyk, the former top U.S. diplomat for the Middle East as well as a former U.S. ambassador to Israel, said.

The fact that Israeli Prime Minister Benjamin Netanyahu and his right-wing allies lost ground in Israel's election while centrists did better than expected suggested Israel's next coalition government may tilt more toward peace-making.

"I actually think that this election opens doors, not nails them shut," outgoing Secretary of State Hillary Clinton said on Tuesday, adding that a significant number of Israelis were signaling a desire for different approach on peace with the Palestinians as well as on domestic policy.

Dennis Ross, a long-time U.S. Middle East peace envoy now at the Washington Institute for Near East Policy think tank, said one danger would be if the Palestinian society evolved toward an Islamist rather than a nationalist identity.

"The combination of disbelief on the part of each side and the issue of the future identity of the Palestinians being at stake argues for making an effort," he said. "I think that it's likely that the new secretary of state will make an effort."

(Editing by Warren Strobel and David Brunnstrom)

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Reuters: Politics: Obama might back territorial tax system, business chief says

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Obama might back territorial tax system, business chief says
Jan 31st 2013, 18:40

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U.S. President Barack Obama delivers remarks at the White House in Washington November 28, 2012. REUTERS/Kevin Lamarque

U.S. President Barack Obama delivers remarks at the White House in Washington November 28, 2012.

Credit: Reuters/Kevin Lamarque

WASHINGTON | Thu Jan 31, 2013 1:40pm EST

WASHINGTON (Reuters) - The president of a group of more than 200 CEOs said on Thursday that President Barack Obama had told the business community last month he might back a territorial tax system, which would exempt offshore profits from taxation.

Corporate America is pushing for the United States to move to such a regime, which they say would make domestic business more competitive.

John Engler, president of the Business Roundtable, said that in meetings with Obama during a year-end budget standoff between the White House and Congress, the president left the impression he was moving in that direction.

"A favorable impression was left," Engler said in a briefing with reporters on Thursday.

A territorial system would exempt most domestic companies' offshore profits from U.S. tax. That contrasts with the worldwide system now in place, whereby all offshore profits are taxed when they are brought back into the United States.

(Reporting by Kim Dixon; Editing by Howard Goller and Gerald E. McCormick)

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Reuters: Politics: Republican maverick Hagel forged bond with Obama over Iraq

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Republican maverick Hagel forged bond with Obama over Iraq
Jan 31st 2013, 18:06

Former Sen. Chuck Hagel (R-NE) (L), sits down before giving testimony to the Senate Armed Services Committee to be Defense Secretary, on Capitol Hill in Washington, January 31, 2013. Hagel, 66, is a decorated Vietnam War veteran and a former two-term Republican senator. REUTERS/Kevin Lamarque

Former Sen. Chuck Hagel (R-NE) (L), sits down before giving testimony to the Senate Armed Services Committee to be Defense Secretary, on Capitol Hill in Washington, January 31, 2013. Hagel, 66, is a decorated Vietnam War veteran and a former two-term Republican senator.

Credit: Reuters/Kevin Lamarque

By Susan Cornwell

WASHINGTON | Thu Jan 31, 2013 1:06pm EST

WASHINGTON (Reuters) - From his lonely position as an early Republican critic of the Iraq war, former Nebraska Senator Chuck Hagel sometimes lectured his more timid Senate colleagues. "If you wanted a safe job, go sell shoes," he told them.

President Barack Obama's nominee for defense secretary began a Senate confirmation process on Thursday that revived the contentious relations the fiercely independent Vietnam war veteran had with fellow Republicans over his political career.

"I'm proud of my record," Hagel declared before the Armed Services Committee. "I'm on the record on many issues. But no one individual vote, no one individual quote, no one individual statement defines me, my beliefs or my record."

A social conservative and strong internationalist who co-chaired John McCain's failed Republican presidential campaign in 2000, Hagel might have seemed an unlikely pick for Obama were it not for his opposition to the Iraq war launched in 2003 by former President George W. Bush, a Republican.

Opposing that war was the issue on which Democrat Obama also rose to national prominence and he has said that Iraq was not the only matter where he held similar views with Hagel, who was also once touted as presidential material.

"He's a staunch Republican, but Chuck and I agree almost on every item of foreign policy," Obama said in August 2008, a month after joining Hagel on a tour of Iraq.

Hagel's detractors noted he had voted at times against U.S. sanctions on Iran, and said he had made disparaging remarks about the influence of what he called a "Jewish lobby" in Washington.

Hagel rejects the allegations, saying that he had always supported Israel, and if confirmed he would ensure America's military is prepared to strike Iran if necessary.

Hagel has also been critical of the size of the American military, saying in an interview in 2011 that the Defense Department was "bloated" and needed "to be pared down."

Hagel served two terms in the Senate, representing the state of Nebraska, and left in 2008. He is now a professor at Georgetown University in Washington D.C.. He also serves as co-chairman of the President's Intelligence Advisory Board and is a member of the Secretary of Defense's Policy Board.

Since he left the Senate, Hagel has been a big critic of his own party. He told the Financial Times in 2011 that he was "disgusted" by the "irresponsible actions" of Republicans during a fractious debate over raising the U.S. debt-ceiling in 2011.

Last year he endorsed a Democratic candidate for Senate from Nebraska - former Senator Bob Kerrey - instead of Republican Deb Fischer, who won.

Hagel would not be the first Republican to serve Obama as Pentagon chief. Bob Gates, Obama's first defense secretary, was a holdover from his predecessor George Bush.

CLASHES WITH FELLOW REPUBLICANS

While he was in the Senate as a member of the Foreign Relations, Banking, and Intelligence Committees, Hagel often clashed with his party's leaders on foreign and defense policy.

He co-sponsored legislation to ease U.S. trade restrictions with Cuba, and at times voted against trade sanctions on Iran and Libya.

In 2002 Hagel said the U.S. should try to improve relations with the countries Bush had branded an "axis of evil" - Iraq, Iran, and North Korea.

The same year, when Hagel expressed doubts about the Bush administration's buildup to war in Iraq, the conservative Weekly Standard magazine branded him part of an "axis of appeasement." But Hagel did vote to give the president the authority to carry out the March 2003 invasion.

Later Hagel said he regretted that vote and became a persistent critic of the conflict. In January 2007, he was the only Republican on the Senate Foreign Relations Committee to support a non-binding measure that criticized Bush's decision to send more troops to Iraq.

Hagel told senators they must take a stand on "the most divisive issue in the country since Vietnam," a war in which he had fought, but later decided was wrong. His stance put him at odds with McCain, who also has a reputation as a maverick, and Hagel was pilloried by other Republicans.

Bush's vice president Dick Cheney reflected the view of many in his party when he told Newsweek: "I believe firmly in Ronald Reagan's 11th Commandment: thou shalt not speak ill of a fellow Republican. But it's very hard sometimes to adhere to that where Chuck Hagel is involved."

Hagel did not make a public endorsement in the 2008 presidential race, but his wife Lilibet endorsed Obama and sat with Obama's wife Michelle during a presidential debate with McCain.

Hagel skipped the 2008 Republican convention, an important pre-election event, and further irked his party by telling the Omaha World-Herald newspaper that it was a "stretch" to say McCain's running mate Sarah Palin would be qualified to be president.

He had once been considered a contender for the 2008 presidency himself. Instead he said in September 2007 that he was dropping out of politics and retiring from the Senate when his term ended the following year.

Born in 1946, Hagel grew up in Nebraska as the oldest of four boys, and made a fortune by launching a cellphone company in the 1980s. His father was also a military man, a World War II veteran who died of a heart attack when Chuck was 16.

Hagel and his younger brother Tom volunteered for Vietnam, and Hagel saved Tom's life there by pulling him out of a burning vehicle.

In the early 1980s, when Ronald Reagan was president, Hagel served as deputy administrator of the Veterans Administration. (Reporting By Susan Cornwell; Editing by David Storey)

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Reuters: Politics: Lawmakers seek mortgage settlement documents from regulators

Reuters: Politics
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Lawmakers seek mortgage settlement documents from regulators
Jan 31st 2013, 16:48

The U.S. Federal Reserve Building is pictured in Washington, March 18, 2008. REUTERS/Jason Reed

The U.S. Federal Reserve Building is pictured in Washington, March 18, 2008.

Credit: Reuters/Jason Reed

By Emily Stephenson

WASHINGTON | Thu Jan 31, 2013 11:48am EST

WASHINGTON (Reuters) - Lawmakers on Thursday asked bank regulators to turn over documents related to the $8.5 billion settlement that ended a government-mandated review of crisis-era foreclosures, saying transparency was needed to boost confidence in the settlement.

Senator Elizabeth Warren and Representative Elijah Cummings, both Democrats, said the Federal Reserve and the Office of the Comptroller of the Currency (OCC) must address concerns that financial institutions have not been held accountable for misdeeds during the 2007-2009 U.S. financial crisis.

In a separate letter also released on Thursday, Representative Maxine Waters, also a Democrat, said questions remain about why the independent reviews were stopped and how borrowers will be evaluated for potential compensation.

The case-by-case reviews of foreclosures came in response to the "robo-signing" scandal of 2010, in which banks were said to have used defective or fraudulent documents to pursue home foreclosures.

But after the review process got expensive without resulting in relief to consumers, regulators opted for a different approach.

They said settlements with mortgage servicers, which were announced earlier this month would replace the reviews with a broader framework that allows borrowers to receive compensation regardless of whether they faced actual harm.

"We believe that public confidence in the settlement - the confidence necessary to speed recovery of the housing markets - will exist only if the OCC and the Federal Reserve provide additional transparency into the process used and information gathered during the Independent Foreclosure Review process," Warren and Cummings said in their letter.

Cummings was critical of the settlement when regulators announced it earlier this month and said the OCC and the Fed had not sufficiently answered questions, such as who would get the funds.

The financial industry has been closely watching Warren since she won election to the U.S. Senate in November.

She gained a reputation as an opponent of Wall Street excess by overseeing the financial system bailout and later setting up the Consumer Financial Protection Bureau, and she would lend a high profile to whatever issue she chooses for her first big push as a lawmaker.

The pair called on regulators to turn over documents on the independent contractors who reviewed borrower files, the total number of reviews undertaken by each contractor and the number of files in which unsafe practices were found.

Waters, who is the top Democrat on the House of Representatives Financial Services Committee, criticized the sudden end of the reviews and asked the regulators to establish an independent monitor to oversee the settlement process.

Both letters were addressed to Fed Chairman Ben Bernanke and Comptroller of the Currency Thomas Curry.

The initial settlement called for Bank of America Corp, Citigroup Inc, JPMorgan Case & Co, Wells Fargo & Co, MetLife Bank, and five others to pay $3.3 billion directly to eligible borrowers, and $5.2 billion in loan modifications and forgiveness.

Separately, HSBC, Goldman Sachs and Morgan Stanley also reached similar settlements, bringing the total payout to $9.3 billion.

(Reporting By Emily Stephenson and Margaret Chadbourn; Editing by Kenneth Barry)

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Reuters: Politics: Analysis: Medicare premium support idea rising from ashes?

Reuters: Politics
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Analysis: Medicare premium support idea rising from ashes?
Jan 31st 2013, 16:16

By David Morgan

WASHINGTON | Thu Jan 31, 2013 11:16am EST

WASHINGTON (Reuters) - Just months after President Barack Obama's re-election ended Republican hopes of controlling U.S. healthcare policy, one of the most controversial Republican proposals for Medicare is showing signs of rising from the political ashes.

Premium support, a policy idea that would greatly expand the role of private insurers in providing Medicare coverage for hospital and doctor services, was considered dead soon after Republican Mitt Romney's November loss to Obama, when polls showed registered voters rejecting it by 2-to-1 margins.

But premium support is gaining fresh momentum among congressional Republicans as a way to control Medicare spending as the debate rages over entitlement reform and the deficit, say analysts, lobbyists and congressional aides.

"It's an idea that becomes more politically seaworthy with every passing day, because there are no other legitimate alternatives that can simultaneously control costs in a rational fashion and broaden access to quality care," said Robert Moffitt of the conservative Heritage Foundation.

U.S. Rep. Paul Ryan, Romney's former running mate and the Republican most identified with premium support, is expected to embrace the policy for a third consecutive year in the budget he will soon release as chairman of the House Budget Committee.

A spokesman for the Wisconsin congressman declined to discuss the budget. But others with knowledge of closed-door discussions said the party's caucus would not back down after retaining support among elderly voters in 2012, despite Democratic attacks on the Republicans' Medicare position.

"They feel like they won the premium-support battle last year. So they're not at all shy about taking that on again," said a lobbyist with strong Republican ties.

Democrats are likely to reject the idea again. Many doubt the premium-support model can control spending, and charge that it would instead privatize the $590 billion-a-year Medicare program that serves 50 million elderly and disabled Americans.

With Congress now looking set to accept $1.2 trillion in automatic "sequester" spending cuts as deficit reduction, including a 2 percent across-the-board cut for Medicare, some congressional aides say the entitlement debate over Medicare, Social Security and Medicaid could be delayed for months.

"The sequester doesn't solve the deficit problem. But if it went through, for some time, there'd be no incentive to bend over backwards on entitlements," said a Senate Democratic aide.

DEAR PRUDENCE

Lobbyists say Republicans could still push for entitlement reform in March, when Democrats will need their cooperation to keep the federal government open, or during the summer when debt limit debate may resurface. Much hangs on the contents of the budget proposals that emerge from Obama, Ryan and the Senate Budget Committee within the next month or two.

Republican aides say premium support could gain ground in the cut and thrust of future negotiations, given word that Democrats plan to take a hard line against raising the Medicare eligibility age to 67 from 65 - another Republican policy goal that appears to have been thwarted by pressure from influential beneficiary groups, including AARP.

But Democratic aides counter that there will be no major changes to Medicare without Republican support for new tax revenue, an idea Republicans roundly reject.

Ryan himself sounds less interested in short-term deals than in awaiting the next Republican swing of the political pendulum.

"I'll advance reforms to protect and strengthen Medicare and Medicaid, to reform healthcare," Ryan said in a speech to the National Review Institute on January 26 in which he recommended a path of political prudence for conservatives.

"Guess what? The Democrats are unlikely to accept our proposals. I know that may come as a big surprise to you. They refuse to consider real reform that's needed to get the country on the right track. But we will lay the groundwork for future endeavors. So when reform is possible, we will be ready."

A potential way to move the premium-support model forward emerged in the Senate last week, analysts say, when Senator Orrin Hatch proposed consolidating Medicare's Part A hospital and Part B physician benefits into a single program that would allow private insurers to bid against traditional Medicare and reward seniors for choosing cheaper coverage.

"By allowing private health plans to compete with traditional fee-for-service Medicare, we can provide seniors with their guaranteed Medicare benefit while, at the same time, reducing costs and improving the quality of care," Hatch, a Utah Republican, said on the floor of the Senate.

"Hatch is trying one more time to get the point across that most people agree with - that you're going to cover Medicare A and B without any question," said Joseph Antos of the conservative American Enterprise Institute. "This is something Ryan certainly meant but it didn't come out that way."

In fact, analysts and business lobbyists said Hatch could offer a way forward for Republican rhetoric by focusing his remarks on competition and consumer choice, and drawing parallels between his proposal and Medicare Part D, the popular prescription drug benefit that also employs competitive bidding to set costs.

(Reporting by David Morgan; editing by Ros Krasny and Matthew Lewis)

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Reuters: Politics: White House shutters jobs council, citing progress on issues

Reuters: Politics
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
White House shutters jobs council, citing progress on issues
Jan 31st 2013, 16:44

WASHINGTON | Thu Jan 31, 2013 11:19am EST

WASHINGTON (Reuters) - The White House said on Thursday it is disbanding President Barack Obama's jobs council, a group of high-profile chief executives who gave advice on how to boost hiring at a time of high unemployment.

The White House said it has made progress on the council's recommendations and will begin a new, expanded effort to work with the business community to advance policy priorities promoted by the panel.

"The expanded effort to build on progress made by the jobs council fits into a broad and aggressive engagement strategy that has already begun," a White House official said.

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