The daunting task of deciding who gets to be saved from Foreclosure

Republican Sen. Judd Gregg withdraw his name in protest over economic stimulus package

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Another Obama Appointee Withdraws Citing Tax Troubles

President Obama’s choice for the position of chief White House performance officer has withdrawn from consideration for the post, an administration official said Tuesday, after coming forward with concerns about her tax returns.

Nancy Killefer, appointed by the president last month to a new position to scrutinize government spending, told the administration on Monday that she intended to step down from the position at the Office of Management and Budget. An administration official, speaking on condition of anonymity because the announcement was not finalized, confirmed that Ms. Killefer’s withdrawal came because of questions with her taxes. Update: In her resignation letter to Mr. Obama, she described the problem as a tax-related issue stemming from Washington, D.C. unemployment.

The Presidents Stimulus plan hits the skids

Feb 3,2009

With public opinion turning sour over a big-government economic recovery package, some taxpayer advocates and officials are posing the question that seemed verboten in Washington just a week ago:

Who needs a stimulus?
said Michael Steele, newly elected Republican National Committee chairman, in an interview with FOXNews.com Tuesday.

A Gallup poll released Tuesday finds a strong majority of Americans want Congress to pass some form of stimulus, but have severe doubts about the measures currently being considered to boost the economy.

Though Republican senators are trying to negotiate an alternative bill with Democrats as debate gets underway in their chamber, the unanimous opposition of the House GOP last week to a $819 billion bill signaled that some lawmakers are prepared to reject a stimulus outright, rather than engage in what appears to be an uphill fight for significantly reduced spending.
Most Americans are now looking for major revisions in the way the government is approaching the recession.
A Gallup poll out Tuesday showed that a majority of Americans want Congress to either reject or make "major changes" to the economic stimulus package on Capitol Hill.
The poll, conducted from Friday through Sunday, found that 75 percent of Americans want Congress to pass some version of the plan. But the survey reflected deepening doubts about the effectiveness of the programs and spending items currently being considered by federal lawmakers. Only 38 percent of those polled favored the existing stimulus proposal, down from a slight majority holding that view in the Jan. 28 Gallup survey.
Thirty-seven percent want major changes and 17 percent reject the plan outright.
"This idea that the public is not excited about this package ... is really having an effect on Capitol Hill," Sen. Lindsey Graham, R-S.C., told FOX News, adding that most of the Senate suffers from a "herd mentality" and is swayed by public opinion.
"There's nothing inevitable about this," said Phil Kerpen, director of policy at Americans for Prosperity. "The American economy is enormously resilient and it's always recovered in the past."
Americans for Prosperity has launched a petition on the Web site called NoStimulus.com to oppose what it calls the "big-government pork-barrel spending bill."
The conservative Cato Institute also recently took out a group of ads with a statement, signed by 200 economists, saying they "do not believe that more government spending is a way to improve economic performance."
The Senate is currently debating a nearly $890 billion version of the bill, and top Democrats wanted to add $25 billion in highway and mass transit funds during debate Tuesday. Republicans want more provisions to make housing more affordable.
President Obama said Tuesday that the nation can't afford the "same partisan gridlock" on the measure, and assured that the "vast majority" of investment would be made in the next 18 months.
With such a clamoring for the bill, Kerpen said, realistically, he expects a stimulus of some form to pass. But he said the bill in its current form was dealt a "severe and perhaps mortal blow in the House" that could lead to a much different version on the Senate side.
Steele said his party members could possibly sell the program to their constituents if it contains more tax relief. Steele said he wants the plan to eliminate the capital gains tax, for instance. But he told FOXNews.com that Republicans should continue to lock arms against the bill if it retains the "wacky spending" items in the bill now.
Steele said the economy would likely recover within a couple years anyway, and government actions like the first stimulus package last year and the $700 billion financial bailout have produced, "In a word, nothing."
"I think if the government were to get out of the way and let the small business community and corporations of America weed themselves through this process, it's survival of the fittest," Steele said.
The Washington Post reported Tuesday that banks have generally not used the money they received through the financial rescue package to increase lending as was intended. The article reported that banks receiving government money on average cut back on lending more sharply than those that did not receive funding. However, Citigroup announced Tuesday it will make $36.5 billion available for credit cards and home loans.
The Gallup poll also found that even with a stimulus package, only 10 percent of people think the economy will improve this year as a result of the plan. Fifty-three percent said the plan will either have no effect on their families or make their financial situations worse.
The poll reflects a substantial partisan divide, with 59 percent of Democrats calling for passage without changes while 43 percent of Republicans want major changes and another 35 percent reject it.
But even Democratic leaders on the Hill are calling for significant changes. Nebraska Sen. Ben Nelson told FOX News he's looking to strip out "tens of billions" of dollars worth of spending items from the bill.
Sen. Claire McCaskill, D-Mo., a top Obama ally, told FOX News Tuesday that some of the spending is uncalled for in this package.
"We've got to cut some of the spending for programs," she said. "This is not the place to increase spending on programs."
She criticized billions for programs like alternative energy loans and the Census Bureau.
"We may have to fund the Census Bureau but not in a stimulus bill," she said. "That's the problem here. We have got to be disciplined about making sure this bill does only two things: Get money directly into the economy and create jobs. Period. That's it," McCaskill said.
FOXNews.com's Judson Berger contributed to this report.

Team Obama Pictures

Geithner questioned about former housekeeper, taxes

WASHINGTON (CNN) -- Members of the Senate Finance Committee met Tuesday with treasury secretary nominee Tim Geithner over concerns involving his personal taxes and the immigration status of a former housekeeper, transition officials said.

Timothy Geithner has been nominated for the post of treasury secretary in the Obama administration.

The Geithners employed a housekeeper whose employment authorization document expired about three months before she stopped working for them in October 2005, according to a written statement from the Senate Finance Committee.
Later, the housekeeper, who is married to a U.S. citizen, was granted a green card, transition officials said.
The second concern involves Geithner's taxes while he worked for the International Monetary Fund (IMF). According to a statement released by the committee, Geithner failed to pay self-employment taxes while the IMF paid him from 2001 to 2004.
In 2006, the Internal Revenue Service audited Geithner for tax years 2003 and 2004, and he paid $16,732 for the taxes and interest for those years, the statement said. After Obama nominated him for treasury secretary, Geithner voluntarily amended his taxes for 2001 and 2002, paying $25,970 for those taxes and interest, the committee said.
The presidential transition team told Finance Committee staff about Geithner's taxes early last month, the committee said.
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As an international organization, the IMF does not withhold money from employees' paychecks to pay Social Security and Medicare. U.S. employees are required to pay them on their own.
Robert Gibbs, the incoming White House spokesman, called Geithner's tax issue a "common mistake."
"The president-elect chose Tim Geithner to be his treasury secretary because he's the right person to help lead our economic recovery during these challenging times," Gibbs said in a written statement. "He's dedicated his career to our country and served with honor, intelligence and distinction. That service should not be tarnished by honest mistakes, which, upon learning of them, he quickly addressed."
The Finance Committee said it would continue to review Geithner's tax returns and other information ahead of a nomination hearing.
"When errors or issues of concern are discovered, transparency is vital to allow members of the committee and the entire Senate to fully review and assess the relevant information before hearings and votes occur," the committee said.
"I believe that these errors, although serious, do not rise to the level of disqualification. He is an extremely competent man," said committee Chairman Max Baucus, D-Montana. "The errors were, in my judgment, honest mistakes. He did not in any way intentionally make those mistakes."
Sen. Charles Schumer, D-New York, also said the mistakes were "not at all disqualifying."
"Tim came to the committee, admitted he had made some mistakes, and was very contrite," he said. "I continue to strongly support his nomination and given the tough economic conditions, hope we can confirm him as quickly as possible

Daschle Withdraws Nomination for Health and Human Services Secretary

Daschle Withdraws Nomination for Health and Human Services Secretary
With "sadness and regret," President Obama has accepted the decision of Tom Daschle to withdraw his nomination to be health and human services secretary.

Tom Daschle withdrew his nomination for health and human services secretary Tuesday, after fielding mounting criticism over his failure to pay more than $130,000 in taxes.
The move marked a stunning turnaround from the day before, when Daschle mounted a campaign to retain allies on Capitol Hill and President Obama told reporters he "absolutely" stands by the former South Dakota senator.
But the president accepted Daschle's withdrawal with "sadness and regret" Tuesday morning, according to a White House statement.
"Tom made a mistake, which he has openly acknowledged. He has not excused it, nor do I," Obama said. He added that the "mistake" should not diminish the "many contributions" Daschle has made to the country.
Watch FOX News' Chris Wallace interview President Obama on Special Report with Bret Baier at 6 p.m. ET.
White House press secretary Robert Gibbs said Tuesday that the move was Daschle's decision, and that the president still has confidence in the vetting process.
It was unclear whether Daschle, with his deep network of ties in the Senate stemming in part from his time as majority leader, would have been able to weather the criticism over his tax problems in confirmation. Sources told FOX News that concern was growing that even if Daschle was confirmed his tax lapses would detract from the drive for health care reform.
Daschle said in a statement that his presence would have complicated that effort.
"If 30 years of exposure to the challenges inherent in our system has taught me anything, it has taught me that this work will require a leader who can operate with the full faith of Congress and the American people, and without distraction," Daschle said. "Right now, I am not that leader, and will not be a distraction."
Daschle had also been tapped to be Obama's health czar but he apparently will not be taking on that role either.
"I will not be the architect of America's health system reform, but I remain one of its more fervent supporters," Daschle said.
Daschle was one of Obama's earliest supporters on the campaign trail.
Senators were reluctant to state publicly any opposition to Daschle's nomination in recent days. But that started to crack Tuesday morning, as Republican Sen. Jim DeMint called for Obama to withdraw the nomination -- becoming the first senator to say that the former majority leader's tax problems are disqualifying.
DeMint told FOX News that Daschle's failure to pay $134,000 in federal taxes reflects a "problem with integrity" that the government cannot afford to tolerate. DeMint spoke out against Daschle as a number of prominent newspapers, including The New York Times, called for the South Dakota Democrat to drop his bid.
Daschle has since paid $146,000 in back payments and interest, and apologized on Monday for what he called income tax errors.
Lawmakers on Tuesday expressed surprise at Daschle's decision to withdraw.
"I'm too emotionally upset to answer," said Sen. Tom Harkin, D-Iowa, when asked for his reaction.
"I think he would have been confirmed," said Senate Finance Committee Chairman Max Baucus, D-Mont., the man charged with navigating Daschle's nomination through the Senate. "I'm surprised."
Illinois Democratic Sen. Dick Durbin said Daschle did the "honorable thing" by preventing an "arduous political struggle."
"It's just the kind of class move you'd expect from a person like Tom Daschle," Durbin said.
Republican Sen. John Ensign said Daschle saved Obama from "being embarrassed" by stepping aside.
The New York Times, in its editorial, complained that Timothy Geithner was already confirmed as treasury secretary despite his tax problems.
"It would send a terrible message to the public if we ignore the failure of yet another high-level nominee to comply with the tax laws," the Times wrote.
Several other newspapers, including the Chicago Tribune, Philadelphia Inquirer, Boston Globe and Pittsburgh Post-Gazette, also called for Daschle to withdraw. Some officials expressed other concerns about Daschle. Politico.com reported Tuesday, for instance, that Daschle was pushing the businessman who supplied him with a free car and driver -- much of the source of his tax woes -- for a job in the Obama administration.
Daschle was also drawing ridicule for an unearthed1986 campaign ad that showed the former senator driving an old, beat-up Pontiac to work -- to stress his distance from the world of "BMW's and limos" in Washington. "Maybe he's sentimental, or just cheap. Whatever the case isn't it too bad the rest of Washington doesn't understand a penny saved is a penny earned?" the narrator in the ad says.
Daschle is not the only high-profile nominee to withdraw his name. Bill Richardson withdrew his nomination for commerce secretary amid an ethics investigation in New Mexico.
Obama's pick to be the White House's first performance officer, Nancy Killefer, also withdrew her nomination on Tuesday because of her own tax liabilities, namely a $946 tax lien imposed by the D.C. government for failure to pay $298 in unemployment compensation tax on household help.
Noting the importance of the post, Killefer wrote in her withdrawal letter to the president that "my personal tax issue of D.C. unemployment tax could be used to create exactly the kind of distraction and delay those duties must avoid."
FOX News' Major Garrett, Trish Turner and Chad Pergram contributed to this report.

Eric H. Holder Jr. Attorney general

Eric H. Holder Jr.
Confirmation: Confirmed Feb. 2
Chosen for: Attorney general
Will bring to the job: A heavyweight résumé bursting with legal and law enforcement credentials. Mr. Holder has spent most of his career as a federal prosecutor, and his friends say his views on the law and the role of government align closely with Mr. Obama’s.
Is linked to Mr. Obama by:Mutual friends and shared experiences, though Mr. Holder and Mr. Obama did not meet until 2004, when they were seated next to each other at a small dinner party in Washington. Mr. Holder has said he immediately “clicked” with Mr. Obama over the dinner, hosted by Ann Walker Marchant, niece of Vernon E. Jordan Jr., one of the city’s superlawyers. Mr. Holder and Mr. Obama attended Columbia as undergraduates (although Mr. Holder, at 57, is 10 years older than the president-elect). Each had an immigrant father (Mr. Holder’s parents are from Barbados). Another connection: Mr. Holder is close to Valerie Jarrett, an Obama confidant and co-chairwoman of the Obama transition team. During the campaign, Mr. Holder was part of a vice-presidential advisory team that helped pick Senator Joseph R. Biden Jr. of Delaware as Mr. Obama’s running mate.
In his own words:“Loyalty is something I value an awful lot. And so my decision to support Barack was not necessarily a difficult one, but I had to be really moved by him. My inclination would be support Senator Clinton, but I was overwhelmed by Barack.” (From a recent profile in American Lawyer magazine.)
Used to work as:Deputy attorney general under Janet Reno in the Clinton administration. Had been United States attorney for the District of Columbia; a federal judge on the superior court bench in Washington; and a prosecutor in the Justice Department’s public integrity section, which investigates political corruption. In recent years, Mr. Holder has worked as a partner at Covington & Burling, representing big-name clients like the National Football League, Chiquita Brands International and Merck.
Carries as baggage:His role in President Bill Clinton’s controversial pardon of Marc Rich, the fugitive financier, who in 1983 fled to Switzerland rather than face tax evasion charges. The pardon bypassed the usual Justice Department process, and so Mr. Holder, as deputy attorney general, had no direct role in it. But when queried about his view of the pardon, Mr. Holder told the White House he was “neutral, leaning towards favorable.” The comment was later seized on by Democrats to defend the pardon and by Republicans to blast Mr. Holder for endorsing the most heavily criticized pardon of Mr. Clinton’s presidency, in part because it turned out that Mr. Rich’s former wife, Denise Rich, donated large amounts of money to Mr. Clinton’s presidential library.
Résumé includes:Born Jan. 21, 1951, in the Bronx and raised in New York City ... attended public schools and graduated from Stuyvesant High School ... graduated from Columbia University and Columbia Law School ... married to Sharon Malone, an obstetrician in Washington ... the couple has three children.