Nutter's Washington

Sugary Soda: New National Enemy but Can I have a Refill?

New York City is considering banning the sale of large sodas and other sugary drinks in the restaurants, delis and movie theaters in order to “fight the fat” problem in America. This kind of idiotic regulation is usually an amusement for me and not the kind of subject write about

The proposal would take 20-ounce sugar soda bottles off the shelves for the most part and eliminate super-sized sugar drinks from fast-food joints. It is the latest initiative from outrageous governments all over the country to limit individual choice and to control the most detailed facets of everyday life.

Romney and Obama: Ready to Rumble

Mitt Romney will be the Republican Presidential nominee. That is not news as it has been likely for some period of time. Last night, however with a primary win in Texas, it more or less ends the race as Mr. Romney has won enough delegates to secure the nomination. Now the ugliness begins in earnest and ugly and nasty it will be.

At this point the Presidential election looks close. However, it is all about the Electoral College and the map would seem to favor the President. He intends to retain office by putting together his supporters from Black and Hispanic Americans, younger voters, white urban and suburban liberals and union members. National polls show Mr. Romney has pulled almost even with the President but it is, of course, the state-by state voting that is crucial.

CBO Report: Did anyone pay attention?

The Congressional Budget Office released a day or so ago a report setting forth some of the scenarios and consequences of the year end fiscal mess the Government has created. By government, I mean this Congress, past Congresses and the Obama Administration as well as past Presidents.  The report is entitled “Economic Effects of Reducing the Fiscal Restraint That Is Scheduled to Occur in 2013.”  It is a bad title but a good read.

It is well known the end of this year is a crossroads for critical events, which will impact the future of the country. At the end of the year, unless Congress and the Obama Administration can reach some agreement, the following will happen: 

• The Bush tax rate cuts for all taxpayers will expire at the end of the year. The marriage penalty will also be re-instated.
• The current rates on capital gains now at fifteen percent will expire at the end of the year.  
• The lower rates on dividends installed in 2003 will expire at the end year.
• The Alternative Minimum Tax (AMT) will scoop up millions of taxpayers.
•  The temporary 2% employee payroll tax cut will also expire at the end of the year.
• More than 100 other tax provisions will have expired or will expire.
• Spending cuts are scheduled to hit the Pentagon and other federal agencies to meet an arrangement made last year over the nation’s debt limit due to the utter failure of the Supercommittee.

Politics of the Day: Bain Capital, Wisconsin recall, Catholic Church and more

The Congressional Memorial Day recess is descending on Washington DC, although it is difficult sometimes to discern when Congress is actually in session on gone to campaign. I would like to be writing about the next great piece of tax reform legislation that addresses the flaws in the current tax code but alas, it is all politics these days. A few things are around, though, that are worth noting

Wisconsin Recall Election

The liberal and pro-union forces were quite upset when the State of Wisconsin changed some of the laws dealing with public unions. Their ire about the changes led to a recall petition and campaign to oust the Governor. However, at this point it seems that Gov. Scott Walker will survive when the results are posted a couple of weeks from now.  

Boehner: No More Kicking the Can Down the Road on Debt

Speaker of the House of Representatives John Boehner brought up a nasty topic yesterday--the federal deficit and the debt limit. He has been savagely attacked for his remarks by the left and the New York Times (which means he may be on to something). In essence, he said he does not think the debt limit should be increased again unless there is some sort of corresponding reduction in federal spending.

Raising the debt limit will never go away as long as Congress with the encouragement and consent of the Administration continues to spend, spend and spend.

Mr. Boehner’s comments underscore what has been apparent for some time. The fiscal condition of the Federal government is woeful and the country is in a political jam. Mr. Boehner said he would not allow Congress to duck tough decisions with another round of short-term measures and he urged lawmakers in both parties to reach a long-term deal on spending and tax changes — but no additional taxes — to head off a fiscal meltdown.

Chesapeake Energy: Drilling Its Way Out or Selling Off Assets?

The business and political news in Washington for the past few days has been the huge trading losses incurred by the banking investment giant JP Morgan Chase. How could this happen? Why did it happen? Who will take the blame? Of course, in Washington, the issue is what is the role of government to regulate business behavior? Interesting stuff. However, there in a better story out there. It involves Chesapeake Energy, the second largest natural gas producer in the country.

By way of background, Chesapeake Energy Corporation headquartered in Oklahoma City is a natural gas and oil exploration and production company. It also provides substantial marketing, midstream, drilling and other oilfield services. As of December 31, 2011, the Company owned interests in approximately 45,700 producing natural gas and oil wells producing around 3.5 billion cubic feet of natural gas equivalent per day, net to its interest. That is a lot of hydrocarbons.

Senator Lugar: Time Gone Past plus Gas Prices, Hacks and Josh Hamilton

The news is dismal these days. Not horrible, just dismal. Not exciting but dismal. I am weary of the Presidential candidates already but have to say, it will be interesting at the end. A few things caught my eye today: 

Richard Lugar, 6 times elected U.S. Senator from Indiana, was defeated last night in the Republican primary by conservative favorite Richard Mourdock. The race was nationally portrayed as a purge of a moderate from the ranks of establishment Republicans by upstart tea party activists.

Senator Lugar has over the years been a legislative workhorse instead of a showhorse. He is an example of a good legislator grappling with important issues, trying to address and solve the problems as he saw them. He made a number of contributions, will be missed but the Republic shall survive.

Let's Vote Now: Stop the Campaign Agony

The Presidential election is about six months from now. The country has months and months to be subjected to inane campaigning. Millions and millions of dollars will be spent and raised, paying consultants, pollsters and political hacks.

It seems like a waste. Will any of us know more than we do now to make a decision? Why not get it over with now? Let’s vote!

EPA Official: Bearer of Crosses

EPA official Al Armendariz, resigned recently, or more likely followed suggestions, to leave his post as the Environmental Protection Agency’s (EPA) Regional Administrator for Region VI. Seems like Mr. Armendariz had become a poster child for overzealous acts on the part of the Agency. He made no secret of his desire to punish businesses in the oil and gas sector. Brings new light to the “I am from the government and here to help you” motto.

Seems like he had an interesting philosophy on enforcement of environmental laws. In remarks, Mr. Armendariz painted a picture of Roman conquerors pacifying villages by “find[ing] the first five guys they saw and . . crucif[ying] them.”. An analogy of crucifixion is usually never a good idea. Mr. Armendariz suggested the most effective approach to enforcement is to “make examples out of people who are in this case not compliant with the law.”