Thursday, July 19, 2012

Only 17 members released tax returns, Becerra warns about Latino vote, Ayotte?s $120K headache, KBH mulled White House run, McCain/Graham blasts GOP attacks on Abedin, the Levin brothers? tax act

By Scott Wong (swong@politico.com or @scottwongDC)

ONLY 17 MEMBERS OF CONGRESS HAVE RELEASED THEIR TAX RETURNS ? McClatchy?s Kevin G. Hall and David Lightman crunch the numbers: Rep. Nancy Pelosi was emphatic. Mitt Romney?s refusal to release more than two years of his personal tax returns, she said, makes him unfit to win confirmation as a member of the president?s Cabinet, let alone to hold the high office himself. Sen. Harry Reid went farther: Romney?s refusal to make public more of his tax records makes him unfit to be a dogcatcher. They do not, however, think that standard of transparency should apply to them. The two Democratic leaders of the Senate and the House of Representatives are among hundreds of senators and representatives from both parties who refused to release their tax records. Just 17 out of the 535 members of Congress released their most recent tax forms or provided some similar documentation of their tax liabilities in response to requests from McClatchy over the last three months. Another 19 replied that they wouldn?t release the information, and the remainder never responded to the query.McClatchy?s Kevin G. Hall and David Lightman crunch the numbers: Rep. Nancy Pelosi was emphatic. Mitt Romney?s refusal to release more than two years of his personal tax returns, she said, makes him unfit to win confirmation as a member of the president?s Cabinet, let alone to hold the high office himself. Sen. Harry Reid went farther: Romney?s refusal to make public more of his tax records makes him unfit to be a dogcatcher. They do not, however, think that standard of transparency should apply to them. The two Democratic leaders of the Senate and the House of Representatives are among hundreds of senators and representatives from both parties who refused to release their tax records. Just 17 out of the 535 members of Congress released their most recent tax forms or provided some similar documentation of their tax liabilities in response to requests from McClatchy over the last three months. Another 19 replied that they wouldn?t release the information, and the remainder never responded to the query. ?

-- ?The widespread secrecy in one branch of the government suggests a self-imposed double standard. Yet while American politics has come to expect candidates for the presidency to release their tax returns, the president isn?t alone in having a say over the nation?s tax laws. Congress also stands to gain or lose by the very tax policies it enacts, and tax records ? more than any broad financial disclosure rules now in place ? offer the chance to see whether the leaders of the government stand to benefit from their own actions. ?

-- So who did release their tax returns? ?Sen. Claire McCaskill, D-Mo., and Rep. Barney Frank of Massachusetts, the senior Democrat on the House Financial Services Committee and a co-author of the Dodd-Frank law tightening regulations on Wall Street. ? Of the lawmakers who shared their tax returns, most got large deductions for interest on personal and investment real estate. That?s useful information for taxpayers, since a revamp of the tax code is expected in the next few years. McClatchy isn?t releasing the tax returns under the terms of the agreement with the lawmakers.? http://bit.ly/MtT9aB

BECERRA?S WARNING: INVESTMENT IN LATINOS MUST BE MORE THAN ?TOKEN? ? Huddle nabbed excerpts from House Democratic Caucus Vice Chairman Xavier Becerra?s Center for American Progress address this morning on the Latino vote in 2012: ?The 2010 Census confirmed what many of us already felt and understood: Latinos and other communities of color will be an ever larger part of drawing the blueprint for the next iteration of America and American greatness.? When you look at the numbers it?s clear that Latinos are at the beginning of a long arc and evolution as key decision-makers.

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?Being on the wrong side of Latinos is tantamount to being on the wrong side of history. Yet, even with this mounting evidence, there have been occasions of glaring indifference and confrontational reaction to the growing presence and prominence of the Latino community.? A lack of understanding of the Latino community leaves our politics and public institutions poorer. Understanding, addressing and delivering for Latinos is a linchpin for elected leaders invested in America?s success for tomorrow and longer term.?

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?But that investment must be more than token; it must be an investment in opportunities for Latinos as full participants at every level of society, from homes to schools to the workforce and beyond. In today?s atmosphere of extreme rhetoric, elected leaders who entrench themselves in absolutes ? whether about who they are or who they think others are ? those leaders are going to be on the losing end with Latinos.? 9:30 to 11 a.m. Center for American Progress, 1333 H Street, NW. http://bit.ly/QaTh2K

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THE OTHER BUDGET CUTS ? POLITICO?s Seung Min Kim writes that the sequester?s defense cuts are only half of the story:? ?The well-financed, sophisticated lobbying arm of the military industry has mobilized to warn against the looming budget ax. Defense Secretary Leon Panetta has become the loudest and most effective opponent of the cuts. And congressional Republicans fiercely protective of the Pentagon have aggressively drawn attention to the need to stave off the more than $500 billion in cuts that begin next year. But nobody seems to be talking about the other $500 billion in reductions ? to Head Start, child care and AIDS programs, as well as many other domestic programs that face across-the-board cuts. The limited lobbying and political attention on the domestic end of the sequester reveals the brutal reality of how Washington works when it comes to budgets: Industries with the biggest companies and the most powerful lobbyists still drive the conversation.? http://politi.co/NiNR5p

AYOTTE?S $120K LEGAL HEADACHE ? My story with Manu Raju: ?A bizarre but little-known lawsuit has caused headaches for freshman Sen. Kelly Ayotte and cost her at least $120,000 in legal fees just as her political stock rises and she?s being mentioned as a potential running mate for Mitt Romney. Ayotte, a New Hampshire Republican, has dismissed the suit as ?frivolous,? and a federal judge largely agreed when he tossed it out in May. But Boston blogger Chris King said he would appeal to the 1st Circuit Court of Appeals and threatened to take the case all the way to the Supreme Court. King, a self-described ?liberal,? also has continued to target Ayotte on his seven-year-old civil rights blog, KingCast.net, posting YouTube videos, audio recordings and written messages railing against the senator and her allies. The case shows how anyone with a legal background, a handheld video camera and a website can wage a one-man campaign against a U.S. senator, in this case, one who?s emerging as one of the Republican Party?s brightest stars. ?

-- ?The 44-year-old mother of two hasn?t held specific fundraising events or tasked her campaign fundraising team to raise money for her legal fund. Instead, she and her chief of staff, John Easton, have solicited cash by calling donors during their off hours or informally mentioning the suit to senators. A number of GOP senators including John Cornyn, Richard Shelby, Rob Portman and Lindsey Graham have donated to Ayotte?s fund through their political action committees or PACs. Honeywell International?s PAC has given $10,000, while Andy Card, former chief of staff to President George W. Bush, donated $1,000.? http://politi.co/Mtoryl

KBH MULLED PRESIDENTIAL BID ? Jennifer Bendery reports for the Huffington Post: ?Retiring Sen. Kay Bailey Hutchison (R-Texas) said Wednesday that she considered running for president years ago, but the timing wasn't right because of family responsibilities. ?Yes I have,? Hutchison, 68, said when asked if she's thought about a White House bid, during remarks at a women's conference hosted by National Journal. ?I would love to have had the right timing. But, timing is everything in life.? Hutchison, who has served in the Senate for 18 years, said she adopted her two children 11 years ago, which ?kind of put me out of the capability.? She said she's been going home every weekend to be with her kids, which has meant she hasn't been in Washington to make TV appearances on Sunday political shows and build her name identification ?in the way that you would if you were running for president.?? http://huff.to/Nki0RU

FEW DOWNSIDES FROM RUBIO BUZZ ? Sure, we?re almost certain Mitt Romney won?t tap Marco Rubio as his running mate, but The Tampa Bay Times? Alex Leary writes that the attention has been mostly positive for the freshman senator: ?The 41-year-old Floridian has spent months in the media glare, selling even more copies of his new memoir and drawing big crowds on an accompanying bus tour. Cable news shows have carried him into homes nationwide. And Rubio will have a prominent speaking slot at the Republican National Convention in Tampa next month. In 2004, a young state senator from Illinois used his speech at the Democratic convention as a breakout moment, putting him on a trajectory that ended at 1600 Pennsylvania Ave.? http://politi.co/MtnJkF

Huddle Math: Indeed, Rubio?s doing better in the money game as well. His reelection committee raised nearly $800,000 in the quarter that ended June 30, $271,000 more than the previous quarter or roughly a 52 percent increase. And that doesn?t include the money he?s pulling in for his Reclaim America PAC.

--The tea party still wants a Romney-Rubio 2012 ticket. In a Tea Party Express poll, ?Rubio was found to be a ?strong? candidate by 66.0% of the tea party supporters. [Paul] Ryan was second at 49.9%, and [Alan] West was third at 46.8% to round out the top three finishers.? http://bit.ly/NZc3rD

McCAIN BLASTS GOP ATTACKS ON TOP CLINTON AIDE ? I write for POLITICO: ?Sen. John McCain on Wednesday rushed to the defense of Huma Abedin, a top aide to Secretary of State Hillary Clinton, blasting five fellow Republicans who have questioned her loyalty to the U.S. and alleged she has ties to the Muslim Brotherhood. The allegations against Abedin, a Muslim American, are an ?unwarranted and unfounded attack on an honorable woman, a dedicated American, and a loyal public servant,? McCain said in a floor speech. ?

-- ?In a June 13 letter, five GOP congressmen ? Reps. Michele Bachmann of Minnesota, Trent Franks of Arizona, Louie Gohmert of Texas, Tom Rooney of Florida and Lynn Westmoreland of Georgia ? called on the State Department?s deputy inspector general to investigate whether Abedin and other department officials were trying to influence U.S. foreign policy to aid the Muslim Brotherhood and other Islamist causes. The congressmen cited a report by the far-right think tank Center for Security Policy. ? McCain debunked the accusations, saying the letter and report failed to offer any evidence Abedin is ?promoting anti-American activities within our government? or has been able to influence U.S. policy.? http://politi.co/Ni7OZY Watch here: http://bcove.me/qyt90o5g

Washington Post, A1, ?McCain defends Clinton aide accused by 5 in GOP,? By Ed O?Keefe. http://wapo.st/OISlwx

-- From the NYT editorial board: ?Since his defeat for the White House four years ago, Senator McCain has too often seemed a listless, unpredictable political figure, forgetful of his own bearings as his party steered resolutely rightward. It was heartening to hear him back on deck condemning Know-Nothingism, especially in a week that started with his vote against a campaign finance disclosure act that should have had his strong backing.? http://nyti.ms/NASTrh

-- Sen. Lindsey Graham (R-S.C.) tells Huddle he?s traveled all around the world with Clinton and Abedin, calling the attacks on Abedin ?ridiculous, really off-base, inappropriate. ? The person saying it has no idea what they?re saying because they?ve never met her. She is about as far away from the Muslim Brotherhood view of women and ideology as you possibly could get. She?s a very modern woman in every sense of the word, and people who say these things are really doing her a disservice because they don?t know what they?re talking about, and I don?t know what their motivations are, but clearly it says more about them than it does her.?

ED ROLLINS: SHAME ON YOU, MICHELE ? In a Fox News op-ed, Bachmann?s former presidential campaign manager accused his ex-boss of going on a witch hunt: ?Having worked for Congressman Bachman?s campaign for president, I am fully aware that she sometimes has difficulty with her facts, but this is downright vicious and reaches the late Senator Joe McCarthy ?level.? http://fxn.ws/MmTf5K

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GOOD WEDNESDAY MORNING, JULY 18, 2012, and welcome to The Huddle, Welcome to The Huddle, your play-by-play preview of the day?s congressional news. Please send tips, suggestions, comments, complaints and corrections to swong@politico.com. If you don't already, please follow me on Twitter @scottwongDC.

My new followers include, but are not limited to @TomNassif and @aterkel.

TODAY IN CONGRESS ? The Senate?s in at 9:30 a.m. and will hold a key procedural vote on a bill that provides incentives for businesses to bring jobs back to America. The House meets at 10 a.m. with first and last votes expected between 3 and 5 p.m. on the Defense Department appropriations bill.

AROUND THE HILL ? House Democratic Leader Nancy Pelosi holds her weekly news briefing at 10:45 a.m. in HVC Studio A. Speaker John Boehner will immediately follow at the same location at 11:15 a.m. Rep. Bill Keating speaks on new prescription drugs legislation at 11 a.m. at the House Triangle. Armed Services Committee Chairman Buck McKeon speaks on national security leaks at 11:30 a.m. at the Rayburn Horseshoe. Sens. Pat Leahy, Barbara Boxer and Jeanne Shaheen on speak on the Violence Against Women Act at 2 p.m. in SVC 268.

DRUDGE BANNER HEADLINE: ?HISTORIC POST OFFICE DEFAULT AUGUST 1? ? Links to a Wall Street Journal story by Jennifer Levitz: ?While lawmakers continue to fight over how to fix the ailing U.S. Postal Service, the agency's money problems are only growing worse. The Postal Service repeated on Wednesday that without congressional action, it will default?a first in its long history, a spokesman said?on a legally required annual $5.5 billion payment, due Aug. 1, into a health-benefits fund for future retirees. Action in Congress isn't likely, as the House prepares to leave for its August recess.? The agency said a default on the payment, for 2011, wouldn't directly affect service or its ability to pay employees and suppliers. But "these ongoing liquidity issues unnecessarily undermine confidence in the viability of the Postal Service among our customers," said spokesman David Partenheimer. The agency says it will default on its 2012 retiree health payment as well?also roughly $5.5 billion, due Sept. 30?if there is no legislative action by then.? http://on.wsj.com/Q7phGm

HOUSE PRESERVES MILITARY SPORTS SPENDING ? The AP: ?NASCAR and bass fishing can count on the military to keep the sponsorship money coming. The House voted Wednesday night to continue spending millions for the military to back sports to attract recruits for the all-volunteer force. On a vote of 216-202, the House rejected an amendment by Reps. Jack Kingston, R-Ga., and Betty McCollum, D-Minn., that would have trimmed $72.3 million for sports sponsorships from a $608 billion defense bill for fiscal 2013. The measure had targeted the money the National Guard spends to sponsor Dale Earnhardt Jr., NASCAR's most popular driver, as well as IndyCar Series driver JR Hildebrand. It also would have cut money the Army spends on the National Hot Rod Association drag racing, funds the Marine Corps uses for the Ultimate Fighting Championship and money spent on bass fishing.? http://es.pn/Qb2cBh

LEVIN BROTHERS LATCH ONTO ROMNEY TAX ISSUE ? Daniel Newhauser and Niels Lesniewski write for Roll Call: ?The Levin brothers are lashing out at a fellow son of Michigan, drawing attention to Mitt Romney?s tax returns, which have become a favorite Democratic talking point against the presumptive GOP presidential nominee. In the process, the two Michigan Democrats are highlighting their long crusade against offshore tax havens. The pair want to amend the Ethics in Government Act of 1978 to require presidential candidates to release 10 years? worth of tax returns and fully disclose all assets and bank accounts. House Ways and Means ranking member Sander Levin said Romney should release a decade of tax returns and information about his offshore bank accounts.?? http://bit.ly/Os4GJ6

WAXMAN RUNNING HARD ? Rep. Henry Waxman (D-Calif.) hasn?t faced a tough reelection bid in decades, but POLITICO?s Alex Isenstadt says things could be different this time around: ?Running in a drastically redrawn district against a free-spending self-funder looking to tap into anti-incumbent sentiment, Waxman is sounding the alarm: He isn?t saying outright he?s in trouble but is warning supporters he needs their help for the most serious race of his nearly four-decade congressional career. And after years of barely having to lift a finger in his races, the Democrat says he has begun putting the pieces in place to wage a hard-fought campaign. ?? ?Quite frankly, I haven?t had to run a serious campaign in quite a long time, but now, I?m going to,? Waxman told POLITICO. ?I?m not going to take anything for granted.?? http://politi.co/NiTkt2

REID TO HOSTS TWITTER TOWN HALL ? Senate Majority Leader Harry Reid joins John Podesta, chair and counselor at the Center for American Progress, at a Twitter Town Hall at 4 p.m. July 25. The town hall will give participants a chance to ask Reid questions about clean energy issues ahead of the upcoming?National Clean Energy Summit 5.0 in Las Vegas next month. To ask a question, send a Twitter message to @SenatorReid, followed by the hashtag #AskReidNCES.

IS PORTMAN THE ONE? ? Few really know the answer, writes The Cleveland Plain Dealer?s Stephen Koff: ?Those who know aren?t saying whether Rob Portman is in or out of the veepstakes. Or are they? A comment Wednesday by the Republican U.S. senator from Ohio set some in the chattering class off with this conclusion: Portman has either bowed out or knows he won?t be Mitt Romney?s pick for vice president. Asked on WTVN radio in Columbus whether it?s still true that he wants to help Ohio by continuing to serve in the Senate, as he has said repeatedly, Portman said, ?It is maybe even truer. No, look, I am happy where I am, I'm fortunate to get to represent our state, and I was elected in 2010 because of my interest in trying to help move our country forward and our state forward here in the U.S. Senate, so that's where I intend to stay.? Soon after making those comments to? radio host Joel Riley in a phone interview, Google and Twitter alerts started appearing.? ?


--?The online Washington Secrets column of the Washington Examiner took Portman's comments to mean that Portman was ?appearing to bow out of contention,? and noted his positive comments toward former Minnesota Gov. Tim Pawlenty, another possible Romney pick. ? Sources who would not talk on the record told The Plain Dealer that too much is being read into Portman?s comments and that nothing has changed. He has said for several months that he is happy serving the people of Ohio in the Senate. But that was a classic non-denial denial, and as Portman has acknowledged before, you don?t exactly run to be the running mate. The presidential nominee picks you.? http://bit.ly/LYBP1n

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ROLE REVERSAL ? ?Democrats and Republicans have traded hostages,? writes The Hill?s Russell Berman. ?In the span of a year, the two parties have reversed roles in accusing one another of holding the U.S. economy captive to a major policy demand. In July 2011, it was the GOP that was warning it would not increase the debt limit if Democrats did not agree to dramatic spending cuts. Democrats said Republicans were threatening a first-ever default by the federal government on its debt. Now it?s the Republicans? turn to cry bloody murder. House Speaker John Boehner (R-Ohio) on Wednesday accused Democrats of threatening to ?tank? the economy by saying they would let taxes rise for all Americans at the end of the year and allow deep defense cuts to go through if the GOP did not agree to a tax hike on the wealthy.? http://bit.ly/Lurm7A

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WEDNESDAY?S TRIVIA WINNER ? Wilfred Codrington was first to correctly name four U.S. presidents to win the White House while losing their birth stat: Polk lost North Carolina, Lincoln lost Kentucky, George H.W. Bush lost Massachusetts, and George W. Bush lost Connecticut.? George Forgie, however, noted there were two more: Both Presidents Harrison and Taylor did not carry their birth state of Virginia.

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TODAY?S TRIVIA ? Sticking with presidential trivia, Sal Sempari offers this question: What is the most repeated first name for a U.S. president, and how many presidents had that name?? First to correctly answer gets a mention in the next day?s Huddle. Email me at swong@politico.com.

WEATHER ?? Highs around 90 with possible afternoon storms, according to ABC7?s Brian van de Graaff.

THE NATS? LINE ? Jordan Zimmerman pitched six scoreless innings and his teammates? bats provided just enough support to help the Nats edge the New York Mets 4-3 at Nationals Park. The teams have a day game today, with the first pitch set for 12:35 p.m.???

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