I/II.
http://www.washingtonpost.com/wp-dyn/content/article/2010/06/17/AR2010061705855.html?hpid=topnews

<http://www.washingtonpost.com/wp-dyn/content/article/2010/06/17/AR2010061705855.html?hpid=topnews>Apparently
blood isn't thicker than oil
 Dana Milbank<http://projects.washingtonpost.com/staff/articles/dana+milbank/>
Friday, June 18, 2010

Everybody knew there would be a spectacle when BP's chief executive, Tony
Hayward, came to testify before Congress. Capitol Police lined the driveway
to the Rayburn building, scores of photographers staked out every corner,
and aspiring hecklers slept in line overnight to be assured they would get a
seat in the hearing room.

But what nobody could have anticipated is that the spectacle would have
little to do with the Englishman at the witness table. The radioactivity
came, rather, from the top row of the dais, whereJoe
Barton<http://www.whorunsgov.com/Profiles/Joe_L._Barton>,
the top Republican on the House Energy and Commerce Committee, gave a most
unusual opening statement.

"I'm ashamed of what happened in the White House yesterday," the Texan said
of BP's offer, under pressure from President
Obama<http://www.whorunsgov.com/Profiles/Barack_Obama>,
to set aside $20 billion to pay damages to Gulf Coast residents ruined by
the oil spill. "I think it is a tragedy of the first proportion that a
private corporation can be subjected to what I would characterize as a
shakedown."

Heads of the other committee members spun, cartoon-like, in the direction of
Barton. Rep. Diana
DeGette<http://www.whorunsgov.com/Profiles/Diana_DeGette>(D-Colo.)
froze, her coffee cup suspended equidistant between tabletop and lips. Henry
Waxman  <http://www.whorunsgov.com/Profiles/Henry_A._Waxman>(D-Calif.), the
panel chairman, scrunched his face and shook his head as though he had just
witnessed a bloody wreck.

In a sense, he had. And Barton wasn't done. The $20 billion BP would pay to
those who are now out of work because of the spill is a "slush fund," he
said. Then he did the unthinkable: He apologized to the man whose company is
destroying a large piece of the nation. "I apologize," he said, adding that
he doesn't "want to live in a country" that does such things to poor BP.

There, in front of the cameras, one of the most senior Republicans in the
House had suffered an acute attack of Obama Derangement Syndrome. The
president had just secured from a British oil company a promise to set aside
$20 billion to help devastated Americans -- and Barton had sided with the
firm that has devastated the Gulf of Mexico.

Suddenly, the hearing was not about Hayward. Rep. Ed
Markey<http://www.whorunsgov.com/Profiles/Henry_A._Waxman> (D-Mass.)
chucked his opening statement and instead gave an extemporaneous address
rebuking Barton. Rep. Michael
Burgess<http://www.whorunsgov.com/Profiles/Michael_C._Burgess> (Tex.),
the ranking Republican on the subcommittee conducting the hearing, felt the
need to tell Hayward: "I am not going to apologize to you."

Even Hayward distanced himself from the man who had just apologized to him.
"I certainly didn't think it was a slush fund," the executive said.
II.
http://www.washingtonpost.com/wp-dyn/content/article/2010/06/17/AR2010061705548.html?hpid=topnews

Jobs bill blocked in Senate
 Lori Montgomery and Brady
Dennis<http://projects.washingtonpost.com/staff/articles/lori+montgomery+and+brady+dennis/>
Washington Post Staff Writer
Friday, June 18, 2010

The Senate effectively rejected a slimmed-down package of jobless benefits
and state aid late Thursday, rebuffing President
Obama<http://www.whorunsgov.com/Profiles/Barack_Obama>'s
call for urgent action to bolster the economic recovery.

Sens. Ben Nelson <http://www.whorunsgov.com/Profiles/Ben_Nelson> (D-Neb.)
and Joseph I. Lieberman<http://www.whorunsgov.com/Profiles/Joseph_I._Lieberman>
(I-Conn.)
voted with a united Republican
caucus<http://projects.washingtonpost.com/politicsglossary/Congressional/caucus/>
to
block the approximately $120 billion package. The measure needed 60 votes to
advance, but garnered only 56.

Democratic leaders, who had predicted victory less than 24 hours earlier,
vowed not to give up on the measure, but acknowledged that they have no
clear path to securing the one or two Republican votes needed to push it to
final passage. Though the sprawling package contains a number of must-pass
provisions, Republicans have been steadfast in their opposition, insisting
that the full cost of the measure be covered by cutting existing government
programs.

"Americans are frustrated with the amount of spending and borrowing around
here," Senate Minority Leader Mitch
McConnell<http://www.whorunsgov.com/Profiles/Mitch_McConnell> (R-Ky.)
said after the vote. "Let's not wave on through legislation that is going to
worsen the deficit and dig an even deeper hole than we are in."

With midterm 
elections<http://projects.washingtonpost.com/politicsglossary/election/midterm-election/>
looming
this fall, conservative Democrats also had voiced opposition to the size of
the package and its impact on deficits, already driven to record levels by
government spending to combat the recession. But congressional leaders have
struggled to pare the legislation back.

The measure would protect doctors from a steep cut in Medicare rates
scheduled to take effect Friday and extend emergency unemployment benefits
that support more than 5 million people. Without congressional action, an
estimated 1.2 million people will stop receiving checks by the end of the
month, according to independent estimates.

The package also would extend some expired tax breaks for businesses and
individuals, including the hugely popular research and development tax
credit. And it would raise taxes on oil companies, multinational
corporations and investment partnerships.

During the past month, Democratic leaders have winnowed the overall price
tag down from $200 billion and reduced its impact on the deficit by
two-thirds. The House narrowly approved the package and sent it to the
Senate, where Majority Leader Harry M.
Reid<http://www.whorunsgov.com/Profiles/Harry_M._Reid> (D-Nev.)
has been trying to add $24 billion in aid to state governments, a top Obama
priority designed to avert thousands of state layoffs and prevent the 9.7
percent unemployment rate from shooting even higher.

To squeeze in that extra cash, Reid has hacked away at other pieces of the
package. The latest version would protect doctors from the Medicare pay cut
for six months rather than the 19 months approved by the House, for example,
and it would dock $25 from the checks of all 15 million people who receive
unemployment benefits, repealing a boost approved in last year's stimulus
legislation.

The resulting measure, unveiled late Wednesday, would add $55 billion to
deficits over the next 10 years, according to the Congressional Budget
Office<http://projects.washingtonpost.com/politicsglossary/legislative/Congressional-Budget-Office/>.
And with that, Democrats believed they had secured the votes of at least two
Republicans: Sens. Olympia J.
Snowe<http://www.whorunsgov.com/Profiles/Olympia_J._Snowe> (Maine)
and Scott Brown (Mass.).

But any deal unraveled during a long day of talks Thursday, leaving
Democrats frustrated and perplexed.

"We thought we had enough votes to pass this," Reid told reporters, adding
that Lieberman had been prepared to come on board. He and Senate Finance
Committee Chairman Max
Baucus<http://www.whorunsgov.com/Profiles/Max_Baucus> (D-Mont.)
said they would regroup Friday. But aides said the path forward would not
become clear until next week at the earliest.

"The vast majority of Americans want us to create jobs, to help pull us out
of this recession," Baucus said. "The bottom line is we're going to keep
trying, because that's what the American people want us to do."

White House spokeswoman Amy Brundage blamed Republican obstructionism for
the bill's failure. "These measures are vital to our nation's families and
our economic recovery, and the President urges those opposing these measures
to end this obstruction and stand on the side of the American people,"
Brundage said.




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