POLITICO: “If Four Federal Agencies Closed Their Doors, Would Anyone Notice?” (Darren Samuelsohn, “Furlough Friday: 4 Agencies Closed For Business, POLITICO, 5/23/13)

FOUR MAJOR FEDERAL AGENCIES CLOSED TODAY DUE TO THE SEQUESTER:

Roughly 5 Percent Of The Federal Workforce Will Take An Unpaid Holiday: “This is no philosophical experiment Friday when, thanks to sequestration, the IRS, EPA, HUD and OMB turn a normal workday into an unpaid holiday for nearly all of their employees. In all, about 115,000 people — roughly 5 percent of the federal workforce — won’t be on the clock for the day. Staffers for the Labor and Interior departments will also get an extra unpaid day for their Memorial Day weekend.” (Darren Samuelsohn, “Furlough Friday: 4 Agencies Closed For Business, POLITICO, 5/23/13)

Washington Post: “Three Big Federal Agencies To Close Friday.” “Three of the largest federal agencies will close to the public on Friday, the first time since the government shutdowns of the 1990s that large corners of the government have ceased operations on a weekday. The mass furlough of 115,000 employees at the Internal Revenue Service, Environmental Protection Agency, Department of Housing and Urban Development and the small Office of Management and Budget — 5 percent of the federal workforce — is happening because of the budget cuts known as sequestration.” (Lisa Rein, “Three big federal agencies to close Friday, The Washington Post, 5/23/13)

FLASHBACK: DIRE WARNINGS FROM THE ADMINISTRATION

President Obama Predicted A Series Of Harmful Consequences: “[Obama] warns that if Republicans refuse him another tax increase and prevail with their ‘meat-cleaver’ approach to the budget, there will be no first responders to help disaster-struck communities recover; prosecutors will be unable to put away criminals; schools will have to lay off teachers; parents will lose child care; and kids won’t get vaccinations. As a warning shot, the administration began releasing detained illegal immigrants—a move that will not help the cause of immigration reform.” (Shikha Dalmia, “Obama’s Phony Sequester Outrage,” Reason, 3/5/13)

President Obama: “Across the country, these cuts will force federal prosecutors to close cases and potentially let criminals go.  Air traffic controllers and airport security will see cutbacks, and that could cause delays at airports across the country.  Tens of thousands of parents will have to scramble to find child care for their kids.  Hundreds of thousands of Americans will lose access to primary care and preventive care like flu vaccinations and cancer screenings, including more than 3,500 children right here in Virginia. “ (President Obama, “Remarks by the President on the Impact of the Sequester – Newport News, VA,” White House, 2/26/13)

BUT SOME OFFICIALS ARE NOW SKEPTICAL THAT ANYONE WILL NOTICE

President Of The American Federation For Government Employees (AFGE): “I Don’t Think Anyone Will Think Much About It.” “[S]ome say closing down may not be such a disaster for the public. ‘Unless something dramatic occurs such as the Great Lakes catching fire, I don’t think the public will think much about it . . . unfortunately,’ said John O’Grady, president of the American Federation of Government Employees Local 704, which represents EPA employees.” (Lisa Rein, “Three big federal agencies to close Friday, The Washington Post, 5/23/13)

AFGE Official: “In The Overall Scheme Of Things, The Impact Will Be Small.” “’We could have done better customer service and provided employees with more flexibility to choose all of their days off,’ said Carolyn Federoff, an attorney and AFGE official at HUD’s Boston office. ‘But in the overall scheme of things, the impact will be small.’” (Lisa Rein, “Three big federal agencies to close Friday, The Washington Post, 5/23/13)

And While Lawmakers Continue To Ramp Up The Rhetoric …

President Obama: “No Smart Way” To Cut $85 Billion: “The problem is, when you’re cutting $85 billion in seven months … there’s no smart way to do that. There’s no smart way to do that.” (“Obama on Sequester Cuts: ‘There’s No Smart Way To Do That,’” Real Clear Politics, 2/26/13)

Sen. Tom Harkin (D-Iowa) Asks If They Will Have To Eliminate All Funding For Special Education: “Sen. Tom Harkin (D-Iowa), who heads the Senate Appropriations Labor subcommittee, argued the cuts would be devastating.  ‘Do they intend to eliminate the entire National Institutes of Health? That wouldn’t be enough to achieve their proposed cut,’ he said. ‘Do they plan to eliminate all funding for special education, Title I, after-school centers, and teacher quality? Again, that wouldn’t be enough to achieve their proposed cut.’“ (Erik Wasson, “Here Comes Sequester: Part 2,” The Hill, 5/22/13)

It Remains Clear That There Is A “Smart Way” To Make Cuts:

The Hill: “GAO: Government Not Cutting Waste.” “Congress and the Obama administration have scrapped just a fraction of the duplicative programs targeted for cuts by Government Accountability Office (GAO), the agency’s chief told lawmakers Wednesday. Comptroller General Gene L. Dodaro said just 12 percent of more than 300 recommendations issued by GAO since 2011 to eliminate, combine or modify duplicative programs have been fully carried out.” (Ben Goad, “GAO: Government not cutting waste,” The Hill, 5/22/13)

The Highlights:


Billions Still Being Wasted On Duplicative Programs: “The hearing follows the release of the latest in a series of GAO reports finding billions of taxpayer dollars are being wasted on government overlap spread across dozens of federal agencies.  Among its findings is the existence of two separate programs responsible for federal catfish inspections, 76 different drug abuse programs and a general lack of coordination between departments charged with providing veterans services.“ (Ben Goad, “GAO: Government not cutting waste,” The Hill, 5/22/13)

$82 Million In Unnecessary Expenses At The Pentagon: “The Pentagon has wasted $82 million in unnecessary expenses for military uniforms that now come in seven different camouflage patterns.” (Ben Goad, “GAO: Government not cutting waste,” The Hill, 5/22/13)

Billions Lost At The IRS And $66 Million In Overlapping Contracts At The Department Of Homeland Security: “The report identified billions more in revenue lost as a result of untargeted enforcement by the Internal Revenue Service and dozens of contracts awarded by the Department of Homeland Security that overlapped with activities already conducted elsewhere in the department. Together the contracts totaled roughly $66 million.” (Ben Goad, “GAO: Government not cutting waste,” The Hill, 5/22/13)

AND THE LIST GOES ON …

U.S. Military Camouflage An “Expensive Case Study In Federal Duplication”: “In 2002, the U.S. military had just two kinds of camouflage uniforms. One was green, for the woods. The other was brown, for the desert. Then things got strange.  Today, there is one camouflage pattern just for Marines in the desert. There is another just for Navy personnel in the desert. The Army has its own ‘universal’ camouflage pattern, which is designed to work anywhere. It also has another one just for Afghanistan, where the first one doesn’t work. … In just 11 years, two kinds of camouflage have turned into 10. And a simple aspect of the U.S. government has emerged as a complicated and expensive case study in federal duplication.” (David A. Fahrenthold, “With 10 Patterns, U.S. Military Branches Out On Camouflage Front,” The Washington Post, 5/8/13)

GAO Finds The Pentagon Spent More Than $12 Million On Designing New Camouflage Patterns: “At the Pentagon, a GAO study commissioned by the Senate Armed Services Committee found that the military services have spent more than $12 million on designing new camouflage patterns. The cost of buying, stocking and shipping 10 different types of camouflage uniforms is believed to be millions more. Is anybody trying to fix this?” (David A. Fahrenthold, “With 10 Patterns, U.S. Military Branches Out On Camouflage Front,” The Washington Post, 5/8/13)

Congress Forces Pentagon To Spend Billions On Tanks, Ships And Planes It Doesn’t Need. “Lawmakers have nixed several of the money-saving ideas, instead forcing the Defense Department to purchase or maintain equipment it says it doesn’t need. Take for instance the half-billion dollars in Abrams tanks that Congress ordered up for the next two years, or the seven obsolete ships the Navy is being forced to keep. The Pentagon says it doesn’t want them, or need them. But taxpayers will keep paying the price.” (Phillip Swarts, “Lawmakers force Pentagon to buy tanks, keep ships and planes it doesn’t need,” The Washington Guardian, 5/10/13)



Billions Lost In Unemployment Fraud. “A study by the St. Louis Federal Reserve released last week found that of the $108 billion paid out in unemployment benefits in 2011, some $3.3 billion was paid out dishonestly The largest share of the fraud payments—$2.2 billion—went to people who were still working.” (Mark Koba, “$3.3 Billion Lost in Unemployment Fraud: Study,” CNBC, 4/29/13)

Taxpayers Suffer Loss In Auto Company Investment: “Fisker Automotive Inc. spent more than six times as much U.S. taxpayer and investor money to produce each luxury plug-in car it sold than the company received from customers, according to a research report. … Fisker has spent $1.3 billion in taxpayer and venture capital money, or $660,000 for each car it sold, the report said.” (Angela Greiling Keane, “Fisker Spent $660,000 on Each $103,000 Plug-in Car,” Bloomberg, 4/18/13)

The potential loss of $171 million would be largest loss of federal loan money since the 2011 failure of solar panel maker Solyndra, which declared bankruptcy and laid off all its workers after receiving a $528 million loan from the Energy Department.” (Matthew Daly, “Obama Adminsitration Had Advanced Warning On Fisker,” The Associated Press, 4/24/13)

FAA Tech Upgrade Running Nearly Half A Billion Over Budget “With No End In Sight:” “For more than a decade the FAA has promised to modernize and make the civil aviation system more efficient and reliable, but the only things it has reliably generated are delays or cost overruns or usually both. The project, known as NextGen, is four years off schedule with no end in sight. … A 2011 investigation found that one part of NextGen ran $330 million over budget—or half of the FAA sequester—and then the FAA paid the contractor responsible $150 million in bonuses…. The overruns are now approaching $500 million, and that’s merely one item.” (The Wall Street Journal, “Flying the Government Skies,” 4/23/13)

IRS Overpaid Upwards Of $13 Billion In Tax Credits: “The Internal Revenue Service (IRS) overpaid between $11.6 billion and $13.6 billion in tax credits designed to help low-income families in fiscal 2012 , the Treasury Department announced in a report released Monday.” (Julian Hattem, “IRS overpaid up to $13.6B in low-income tax credits, report finds,” The Hill, 4/22/13)

Postal Service Hemorrhaging $25 Million A Day:  “The U.S. Postal Service could become ‘a significant burden to the taxpayer’ if it does not get needed flexibility to change its business operations, Postmaster General Patrick R. Donahoe told Congress Wednesday. … ‘We are losing $25 million dollars every day and we are on an unsustainable path.’” (“USPS losing $25 million daily with ‘broken business model,’” The Washington Post, 4,17,13)

Redundant Federal Programs Wasting Billions: “Redundant federal programs are leading to billions in waste, congressional auditors say, and the government is slow to adopt reforms to fix the problem. The White House says President Obama recognizes the problem and will propose eliminating redundant programs in the budget plan he releases Wednesday. … Over the past three years, the Government Accountability Office found 162 areas where agencies are duplicating efforts, at a cost of tens of billions of dollars. How many billions? No one knows.” (Gregory Korte, “Report: Redundant Federal Programs Waste Billions,” USA Today, 4/9/13)

Billions For New Mapping Data: “Government agencies are spending billions on new mapping data — without checking whether some other government agency already has maps they could use.” (Gregory Korte, “Report: Redundant Federal Programs Waste Billions,” USA Today, 4/9/13)

Duplicative Renewable Energy Programs: “At least 23 different federal agencies run hundreds of programs to support renewable energy.” (Gregory Korte, “Report: Redundant Federal Programs Waste Billions,” USA Today, 4/9/13)

Lack Of Coordination Between Branches Of The Armed Services: “Each branch of the armed services is developing its own camouflage uniforms without sharing them with other services.” (Gregory Korte, “Report: Redundant Federal Programs Waste Billions,” USA Today, 4/9/13)

Overlapping Research At The Department Of Homeland Security: “29 Department of Homeland Security contracts that partly or completely overlapped with research being done by another part of the same department. Five contracts funded research into the detection of the same chemical.” (Gregory Korte, “Report: Redundant Federal Programs Waste Billions,” USA Today, 4/9/13)

Stimulus-Funded Condom Study Creates Zero Jobs. The details of a stimulus grant awarded to Indiana University to study condom use have now been released on a government website. The study, titled ‘Barriers to Correct Condom Use,’ is now completed, according to the website, and the university received $423,500 of stimulus funds to perform the study. The stimulus project yielded a total of 0.00 jobs created, according to the federal government. ‘No jobs created/retained,’ the form says under ‘Description of Jobs Created.’” (Daniel Halper, “$423,500 Stimulus Program on ‘Correct Condom Use’ Yields Zero Jobs,” The Weekly Standard, 4/4/2013)

House Oversight and Government Reform Committee Report Finds Unimplemented Recommendations Could Have Saved Taxpayers $67 Billion. “The Committee’s review found that the backlog had grown to a high of 16,906 open recommendations. Using the most conservative cost-saving estimates, implementing these recommendations could save taxpayers $67 billion per year.” (House Oversight and Government Reform Committee Report, “Staff Report: Open and Unimplemented IG Recommendations Could Save Taxpayers $67Billion,” 3/5/13)

Energy Department Approved $3.5 Million in Bonuses to 10 Employees, Some As Much As 82 Percent Above The Market Rate. “Federal employees are facing unpaid days off and salary cuts due to the sequester, but several contract workers inside the Energy Department are still raking in the cash. Ten individuals at the department’s Oak Ridge nuclear laboratory are set to make an extra $3.5 million above and beyond their normal pay, according to an Energy Department inspector general investigation that exposes a lavish bonus system. The 10 people are executives at the company UCOR, which the department hired for environmental clean-up.  And despite watchdog warnings that the executives’ salaries are as much as 82 percent above the market rate, Energy Department officials continue to pay out the bonuses.” (Phillip Swarts, “Energy Department approves lavish bonuses: $3.5 million to 10 workers alone,” Washington Guardian, 3/29/13)

IRS Video Production Unit Costs Taxpayers $4 Million A Year: “The Senate’s top tax-writer wants answers from the IRS about a ‘StarTrek’ spoof that the tax-collecting agency has now apologized for making. … Baucus also questioned why the IRS had a video production unit at all — especially at its reported $4 million a year price tag. The ‘Star Trek” parody and a separate takeoff on “Gilligan’s Island” cost around $60,000 in tandem, the IRS has said.” (Bernie Becker, “Baucus to IRS: How did the ‘Star Trek’ video happen? Who’s responsible?” The Hill, 3/27/13)

Energy Department Mismanaged More Than $90 Million In Stimulus: “The Energy Department’s (DOE) internal watchdog is attacking DOE management of a $1.5-billion stimulus program to help develop technology that captures industrial carbon dioxide emissions. An Office of Inspector General (IG) audit made public Tuesday examines $1.1 billion in funding for 15 projects. The audit notes three project recipients together received $90 million even though reviews of the proposals ‘identified significant financial and/or technical issues.’” (Ben Geman, “Report: Energy Department Mismanaged Stimulus-Backed Climate Program,” The Hill, 3/22/13)

“Pentagon Handed Out $419 Million In Improper Travel Reimbursements Last Year.” “While making improvements in some spending areas, the Defense Department was singled out this week for failing to trim unnecessary travel reimbursements. In fact, the Pentagon’s internal watchdog concluded that wasteful travel spending actually grew last year to a total of $419.3 million, accounting for roughly five percent of the Pentagon’s mammoth $8.4 billion travel budget.” (Phillip Swarts, “Pentagon Handed Out $419 Million In Improper Travel Reimbursements Last Year,” The Washington Guardian, 3/21/13)

These were words President Obama never used during his speech at the National Defense University yesterday. Rather, he said anything but anything that sounded like Winston Churchill’s immortal speech about defiance in the face of the march of tyranny.

In large part, there was nothing new in the counterterrorism strategy the President announced. Flash back to 2011—that was the real turning point. Before then, Obama really followed what was called “Bush-lite,” pretty much the same tactics as the previous Administration—just dropping all the rhetoric.

The war of ideas was completely banned from the Obama lexicon. Islamist terrorism became “violent extremism.” Terrorism became “senseless violence.” In 2011, however, Obama shifted course dramatically. More than dumping the war of words, the White House signed off on a new counterterrorism strategy that amounted to running away from Iraq and Afghanistan as quickly as possible and limiting the offensive campaign to whacking top-level al-Qaeda with drone strikes.

The new strategy was bound to fail, fighting the last war while al-Qaeda evolved into a global insurgency that has spread from Pakistan to Nigeria.

Yet, even as the new fronts in the war on terrorism sprang up, the Administration continued to argue that it was winning. After Islamist terrorists murdered Americans and burned a U.S. consulate to the ground in Benghazi, the President claimed he was winning. As homegrown terrorists kill in Boston and London, he claims he is winning. As the Taliban mocks the U.S. standing down in Afghanistan, he claims he is winning.

>>> See what the Administration said about the London attack:

Yesterday’s appalling attack on a London street in the middle of the day, which left a British solider dead, was a barbaric act of terrorism perpetrated by Islamist fundamentalists. British Prime Minister David Cameron acknowledged the motivations behind yesterday’s cowardly act by saying:

This country will be absolutely resolute in its stand against violent extremism and terror. We will never give in to terror—or terrorism—in any of its forms. Second, this view is shared by every community in our country. This was not just an attack on Britain—and on our British way of life. It was also a betrayal of Islam—and of the Muslim communities who give so much to our country. There is nothing in Islam that justifies this truly dreadful act. We will defeat violent extremism by standing together.

In stark contrast, the Obama Administration’s response has been to avoid calling the attack terrorism, let alone terrorism motivated by a radical Islamic ideology. Instead the Administration, via the State Department, said it stood with the U.K. in the face of “such senseless violence.”

Senseless violence? One can hardly term a targeted attack on a U.K. soldier in broad daylight — where the assailants gleefully admit the radical motivation behind their attack — “senseless violence.”

Yet, use of this terminology is nothing new for the Obama Administration. “Senseless violence” is the Administration’s catch-all phrase loyally called upon whenever motivations for a despicable act should not be ascribed, lest someone take offense.

Particularly troubling is that “senseless violence” is the same terminology the Administration used when describing the terrorist attack in Benghazi that killed the American Ambassador and three other U.S. citizens.

The terrorist attack in London was indeed a senseless act of violence; however, in refusing to admit the nature and motivations behind the attack, the Obama Administration does disservice to the men and women killed in terrorist attacks. As Heritage’s Nile Gardiner advises in The Telegraph:

It’s time for President Obama to acknowledge reality. This is a global war between the free world and the forces of Islamist terror. These are not acts of “senseless violence.” They are acts of brutal terrorism aimed against Great Britain, the United States and all who defend the principles of liberty, freedom and Western-style democracy. It is important that political leaders on both sides of the Atlantic identify exactly who the enemy is, what their aims are, and why they must be emphatically defeated.

For the Administration to do otherwise would be, well, senseless.

Rather than admit failure and change course, faced with criticism here at home, the President has decided to declare victory, hoping this will reenergize support from the left. In his speech, he promised to do even less and make the less more transparent. This will no doubt please progressives who were unhappy that Obama carried over any vestige of the Bush policies.

While this speech may make the President more popular with the progressive caucus, it amounts to Maginot Line strategy: The U.S. won’t go after them if they don’t come after us. If they do come after us—we will treat them like any other criminal. If they do get through—it won’t be our fault; it will be the result of addled minds and “senseless” violence. Obama has warped backed to the Clinton counterterrorism strategy of the 1990s without remembering that was the strategy that led to 9/11.

Obama framed the challenges we face today as a false choice between sitting back and global, endless, borderless war. In reality, there is much that the U.S. can to defend itself: dismantle global terrorist networks; push back on political Islam; and champion freedom in the world. There are options between doing nothing and invading countries. President Obama has decided to ignore them. He is sick of fighting. Unfortunately, America’s enemies are not.

Obama to scale back drone policy?. Apple, former Washington wallflower, now at center of tax fight. Justice Department tells lawmakers no bank is too big to jail

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Speaking at National Defense University, President Obama said the civilian deaths that have resulted from drone strikes haunt him, but “the unspeakable loss” is better than not acting at all.

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At the National Defense University, President Obama reiterated that it would be unconstitutional for the U.S. government to use drones to target and kill any American citizen without due process, or to use drones on U.S. soil.

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While speaking about the closing of Guantanamo Bay at National Defense University, a heckler interrupted President Obama’s speech and he addressed her directly.

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Judicial Watch’s “District of Corruption” trailer

The Washington Post reports, “As soon as White House counsel Kathryn Ruemmler heard about an upcoming inspector general’s report on the Internal Revenue Service, she knew she had a problem. The notice Ruemmler saw on April 24 gave her a thumbnail sketch of a disturbing finding: that the IRS had improperly targeted tea party and other conservative groups. She shared the news with White House Chief of Staff Denis McDonough and other senior White House aides, who all recognized the danger of the findings. But they agreed that it would be best not to share it with President Obama until the independent audit was completed and made public, in part to protect him from even the appearance of trying to influence an investigation. This account of how the White House tried to deal with the IRS inquiry — based on documents, public statements and interviews with multiple senior officials, including one directly involved in the discussions — shows how carefully Obama’s top aides were trying to shield him from any second-term scandal that might swamp his agenda or, worse, jeopardize his presidency.”

“The Unaccountable Executive”

The Wall Street Journal editorializes, “Every day brings new revelations about who knew what about the IRS targeting conservative groups during President Obama’s re-election campaign, but the overall impression is of a vast federal bureaucracy run amok. While the White House continues to peddle the story of a driverless train wreck, taxpayers are being treated to a demonstration of the dangers of an unwieldy and unaccountable administrative state. Look, Ma, no hands! In his press events, Mr. Obama has said that while he learned about the Cincinnati rogues on the news, he plans to ‘hold accountable those who have taken these outrageous actions.’ But the White House began its response by pushing the line that the IRS is an ‘independent agency,’ and Mr. Obama has since given the impression that he sits atop a federal government which he does not, and could not possibly, control.”

Did IRS’s Lerner Waive Right to Plead the Fifth?

Bloomberg reports, “A U.S. House committee chairman said the Internal Revenue Service official who refused to answer his panel’s questions today about her involvement in scrutinizing small-government groups may have waived her right to avoid testimony and might have to return. Lois Lerner, a mid-level official at the center of the controversy over IRS treatment of small-government groups, invoked her constitutional right not to testify after reading a statement denying that she had committed any crimes. Representative Darrell Issa, chairman of the House Oversight and Government Reform Committee, said Lerner might have waived her constitutional right against self-incrimination by making a substantive opening statement.”

The IRS Scandal and a Culture of Intimidation

Senator Mitch McConnell editorializes in The Washington Post, “Revelations about the Internal Revenue Service targeting conservative groups have raised important questions about the Obama administration’s commitment to the First Amendment. Yet there is ample evidence to suggest that the culture of intimidation in which these tactics were allowed to flourish goes well beyond one agency or a few rogue employees. For years, administration officials have used the power of the federal government to isolate their opponents. Meanwhile, the unionized employees who populate the IRS and other agencies across the country routinely take their cues from union bosses, whose political donations and speeches show their support for the White House. When it comes to rewarding friends and punishing enemies, the IRS is not alone. In fact, recent efforts to revive the so-called Disclose Act suggest that these tactics are alive and well in Washington. This bill, which would force grass-roots groups to make their member and donor lists public, may seem benign to some. But as a longtime defender of the First Amendment, I have always seen it for what it is: a backdoor effort to discourage those who disagree with the Obama administration from participating in the political process.”

Poll: 53 Percent Say Their Health Care Situation Will Worsen Under Obamacare

Fox News reports, “Majorities of American voters say their family will be worse off under the Affordable Care Act, and think it would be better to go back to the pre-ObamaCare health care system. A Fox News poll released Wednesday finds that while 26 percent of voters say their health care situation will be better under the new law, twice as many — 53 percent — say it will be worse.  Another 13 percent say it won’t make a difference.  Almost all Republicans (85 percent) and just over half of independents (51 percent) say they will be worse off under ObamaCare.  Nearly half of Democrats expect to be better off (48 percent), while about one-quarter believe they will be worse off (24 percent). Young voters and seniors are pessimistic about ObamaCare.  Majorities of those under age 35 and those 65+ think things will be worse under the 2010 health care law.”

GAO Report Finds GAO Recommendations Aren’t Being Made, Costing Taxpayers Billions

The Hill reports, “Congress and the Obama administration have scrapped just a fraction of the duplicative programs targeted for cuts by Government Accountability Office (GAO), the agency’s chief told lawmakers Wednesday. Comptroller General Gene L. Dodaro said just 12 percent of more than 300 recommendations issued by GAO since 2011 to eliminate, combine or modify duplicative programs have been fully carried out. … The hearing follows the release of the latest in a series of GAO reports finding billions of taxpayer dollars are being wasted on government overlap spread across dozens of federal agencies. Among its findings is the existence of two separate programs responsible for federal catfish inspections, 76 different drug abuse programs and a general lack of coordination between departments charged with providing veterans services.”

Insurers Under Pressure from Health Group Linked to Administration

The Hill reports, “The links between a nonprofit promoting President Obama’s healthcare law and the White House have created an ‘air of expectation’ that insurers will contribute to the group, according to an insurance industry official. Current and former administration officials have taken on leadership and fundraising roles for Enroll America, a nonprofit aiming to make sure people sign up for new coverage options. As the ties grow deeper, the organization has come to feel like ‘just an arm of the administration,’ said one official who works closely with insurers.  Health and Human Services (HHS) Secretary Kathleen Sebelius has already come under fire from congressional Republicans because she has raised money for the organization. They say it puts inappropriate pressure on insurers, who will need the department’s approval to sell their products through a federally run insurance exchange in more than half the country.”

“Kathleen Sebelius, Meet Oliver North”

Lamar Alexander writes in The Wall Street Journal, “Major news outlets in recent days have reported that U.S. Department of Health and Human Services Secretary Kathleen Sebelius is raising money from the private sector—including from health-care executives—for use by a private entity that is helping to implement ObamaCare. The entity, Enroll America, is run by a former White House aide. The Washington Post quoted an HHS spokesman last week saying, ‘We requested additional money [from Congress] . . . but we didn’t receive any additional funding for the exchanges. So we had to come up with Plan B.’ My immediate thought was: Isn’t ‘Plan B’ what got Oliver North in trouble during the 1980s?  … A select Joint Committee of Congress investigated what became known as Iran-Contra. The problem was not just where the money came from, but also where and how it was spent. Article I of the U.S. Constitution does not permit government officials to spend money that Congress has refused to authorize or appropriate. Federal laws such as the Anti-Deficiency Act make this behavior unlawful. … If the money being raised by Ms. Sebelius is being spent to do an end-run around Congress, then the Obama administration had better brush up on its Iran-Contra history.”

“Stop Lavishing Money on Rich Farmers Who Don’t Need It”

Bloomberg editorializes, “The deal in December to avert the so-called fiscal cliff had one welcome consequence: It derailed a new farm bill, the $100 billion annual spending package that’s renewed every five years and filled with subsidies for some of the U.S.’s most prosperous businesses. To keep the money flowing to farmers, as well as to food-stamp recipients, the 2008 bill was extended until this September, allowing Congress time to come up with a bill that would cut unnecessary handouts to farmers while preserving safety-net programs. Instead, Congress is poised to make ill-advised cuts and dole out fresh largess to farmers who don’t need it. … Congress should build on this, starting with strict means testing for farm benefits. U.S. farmers as a group, with an average annual household income of more than $89,000, are much better off than most Americans. This year, farm net income will reach $128 billion, the highest in inflation-adjusted terms in 40 years. Congress also should cap subsidies to individual farmers at $40,000 a year, saving $1 billion annually.”

Conservatives Propose Higher Debt Limit in Return for Balanced Budget

The Washington Times reports, “Conservative Republicans said Wednesday that they will demand that Congress produce a budget that balances in 10 years in exchange for agreeing to raise the federal debt limit, and that House Speaker John A. Boehner promised as much during a GOP retreat this year. One member of the rump group of conservatives said another option Republican leaders are mulling — to tie a debt increase to a general plan for tax reform — is ‘nonsensical.’ Rep. Raul R. Labrador, Idaho Republican, called that option — apparently shopped to him by leadership — ‘a slap in the face,’ though he said he would be ‘open-minded’ about a separate vote on tax reform in general. … ‘The agreement was that any debt ceiling increase would correspond with the reforms that are necessary to meet the requirements in our budget — to get us to a balance in 10 years,’ the Louisiana Republican said at a monthly forum of conservative members of Congress.”

Lack of Confidence Causing Companies to Hold Onto Cash

Bloomberg reports, “Any lament that U.S. executives are sitting on a record $1.73 trillion at their companies instead of investing in plants and equipment may be about to get louder. … The trends, based on data from about 2,300 U.S. companies compiled by Bloomberg, suggest executives’ lack of need or confidence to invest deepened with threats of federal spending cuts and the economic slowdowns at home, in Europe and China. … ‘When uncertainty is rearing its head, you want to preserve cash,’ said Walter “Bucky” Hellwig, who helps manage $17 billion at BB&T Asset Management in Birmingham, Alabama. Among his wealthy clients who own businesses, he said, ‘it’s all about cost management and a reluctance to invest. They’re not laying people off, but when somebody quits they don’t replace them. That goes into building cash.’”

Commerce-Secretary Nominee Understated Income by $80 Million

The Wall Street Journal reports, “On the eve of her Senate confirmation hearing, commerce-secretary nominee Penny Pritzker alerted Congress that she mistakenly understated her 2012 income by at least $80 million. The admission came in new financial disclosure documents that Ms. Pritzker filed with the Senate on Tuesday. The newly disclosed payment came from U.S. accounts and was tied to Ms. Pritzker’s work over the past decade carrying out a complex plan to divide her family’s assets—work that included restructuring, managing and selling various trusts, said her assistant, Susan Anderson. Ms. Anderson said the omission was due to an inadvertent ‘clerical error.’”

“The Fed Squeezes the Shadow-Banking System”

Andy Kessler, a former hedge-fund manager, editorializes in The Wall Street Journal, “Here is the great economic paradox of our time: Despite the Federal Reserve’s vast, 4½-year program of quantitative easing, the economy is still weak, with unemployment still high and labor-force participation down. And with all the money pumped into the economy, why is there no runaway inflation? Federal Reserve Chairman Ben Bernanke told Congress on Wednesday, that ‘We are pushing real hard at this point but there are a lot of headwinds.’ But the usual excuses—commercial banks not lending, not enough government spending, weak retail sales, Europe in disarray—are straw men. The Fed has even discussed an exit strategy from its asset purchases, but without ever explaining why its buying spree led to so little economic growth. The explanation lies in the distortion that Federal Reserve policy has inflicted on something most Americans have never heard of: ‘repos,’ or repurchase agreements, which are part of the equally mysterious but vital ‘shadow banking system.’”

This week, the White House admitted that senior aides insulated President Obama from the IRS audit, deciding it was best to keep him “out of the loop.”  While, the president has insisted numerous times that, ultimately, the buck stops with him, Jay Carney said that the president agreed with the decision of senior staff to keep him in the dark.  With top IRS officials pleading ignorance (and the fifth) and given the evolving story from the White House, it’s worth asking: Is anyone going to take responsibility – or is this just big government in action?

TOP IRS OFFICIALS PASS THE BUCK

Washington Post: “IRS Official Lois Lerner To Take The Fifth.” “Lois Lerner, the IRS official who first disclosed the agency’s improper targeting of conservative groups two weeks ago, will invoke her right not to testify Wednesday for fear of self-incrimination, her lawyer has told the House Oversight Committee.” (Aaron Blake, “IRS Official Lois Lerner To Take The Fifth,” The Washington Post, 5/21/13)

IRS Chiefs Claim They Didn’t Know About Targeting: “Testifying before the Senate Finance Committee, former IRS Commissioner Doug Shulman, who was in charge when the targeting began in the agency’s Cincinnati office, and acting IRS Commissioner Steven Miller, who took the top job last year and is now departing, said they didn’t know about the IRS’s practice of targeting conservative groups right away. When they found out in 2012, they said, they didn’t tell Congress immediately because they couldn’t be sure they had all the facts.” (Siobhan Hughes, Damien Paletta and Michael Crittenden, “IRS Chiefs Dispute Senators’ Allegations,” The Wall Street Journal, 5/21/13)

Former IRS Commissioner “Dismayed” And “Saddened” By Findings: “Former IRS Commissioner Doug Shulman told a Senate panel he was ‘dismayed’ and ‘saddened’ after reading an inspector general’s report last week that concluded agency employees wrongly targeted conservative groups seeking a tax exemption. “  (Lauren French, “Former IRS chief Doug Shulman ‘dismayed’ at targeting, POLITICO, 5/21/13)

But Refuses To Accept Responsibility: “Shulman didn’t offer any apologies, telling committee members that he wasn’t responsible for the targeting program. ‘I certainly am not personally responsible for creating a list that had inappropriate criteria on it,’ Shulman said. ‘I very much regret that it happened on my watch.’” (Lauren French, “Former IRS chief Doug Shulman ‘dismayed’ at targeting, POLITICO, 5/21/13)

Instead, IRS Chiefs Shift Blame To Lower-Level Employees: “The current and former Internal Revenue Service chiefs sounded a defiant note at the second congressional hearing into a newly revealed IRS practice of giving extra scrutiny to conservative groups, disputing allegations that they weren’t forthcoming with Congress and blaming lower-level employees for practices that began in 2010. “ (Siobhan Hughes, Damien Paletta and Michael Crittenden, “IRS Chiefs Dispute Senators’ Allegations,” The Wall Street Journal, 5/21/13)

NBC News: “Ex-Cincy IRS Official Doubts Agency’s Explanation For Tea Party Scandal.” “A former manager at the IRS Cincinnati office at the center of the controversy over the targeting of conservative political organizations seeking tax-exempt status tells NBC News she doesn’t think low-level employees acted on their own in flagging them for further scrutiny.”  (Rich Gardella and Lisa Meyers, “Ex-Cincy IRS Official Doubts Agency’s Explanation For Tea Party Scandal,” NBC News, 5/21/13)

SO, WHO HAS THE BUCK?  NOT THE PRESIDENT

POLITICO: “White House Defends Keeping Obama In Dark On IRS.” (Jennifer Epstein, “White House Defense Keeping Obama In Dark On IRS, POLITICO, 5/21/13)

Jay Carney: Senior Staff “Did The Right Thing” In Not Informing Obama of IRS Audit. “White House senior staff did the right thing in not informing President Obama of the ongoing IRS investigation, press secretary Jay Carney said Tuesday. …’If the opposite had happened in this or any other White House, there would have been questions … about what the president might have done with that information,’ Carney said.” (Jennifer Epstein, “White House Defends Keeping Obama in Dark on IRS,” POLITICO, 5/21/13)

Jay Carney Defends Decision of Not “Looping In” Obama. “’People in the know and people who understand why it’s important to maintain distance from these kinds of things for the White House understand that that was the right call,’ Carney said.” (Jennifer Epstein and Reid J. Epstein, “White House IRS Timeline Shifts Again,” POLITICO, 5/21/13)

Despite Embracing Accountability, President Obama Agrees With Decision To Keep Him Out Of The Loop:

SHOT: President Obama: “Ultimately, The Buck Stops With Me.” “Well, here’s what I remember, is that when I came into office, I knew I was going to have a big mess to clean up and, frankly, the mess has been bigger than I think a lot of people anticipated at the time. We have made steady progress on these fronts, but we’re not making progress fast enough. And what I continue to believe is that ultimately the buck stops with me. I’m going to be accountable…” (David Jackson, “Obama: ‘The Buck Stops With Me’,” USA Today, 8/17/11)

CHASER: Obama Comfortable With Counsel’s Decision To Keep Him In The Dark: “President Barack Obama has faith in his chief lawyer and agrees with her decision not to inform him of a pending report on the Internal Revenue Service’s improper targeting of conservative groups, White House press secretary Jay Carney said Tuesday.” (Jared A. Favole,” Spokesman: Obama Agrees With Counsel’s IRS Decision,” The Wall Street Journal, 5/21/13)

HERE’S WHAT THEY’RE SAYING ABOUT THE WHITE HOUSE INSULATION

Associated Press: “More Obama Aides Who Knew of IRS Audits, Obama Not Told.” “The apparent decision to keep the president in the dark about the matter underscores the White House’s cautious legal approach to controversies and reflects a desire by top advisers to distance Obama from troubles threatening his administration.” (Charles Babington and Julie Pace, “More Obama Aides Knew of IRS Audit; Obama Not Told,” Associated Press, 5/20/13)

Press Secretary Jay Carney:  “Some Matters Are Not Appropriate To Convey To Him, And This Is One Of Them.” (Charles Babington and Julie Pace, “More Obama Aides Knew of IRS Audit; Obama Not Told,” Associated Press, 5/20/13)

New York Times: “White House Says It Didn’t Loop Obama In On I.R.S. Inquiry.” “The Treasury Department’s legal office informed the White House counsel’s office about the nearly finished I.R.S. audit along with other reviews nearly a month before its release, the White House said. Kathryn Ruemmler, the White House counsel, was personally told on April 24, and she notified the White House chief of staff, Denis McDonough, and other senior aides without informing the president, the White House said.” (Peter Baker and Jonathan Weisman, “White House Says It Didn’t Loop Obama In On I.R.S. Inquiry,” The New York Times, 5/20/13)

Reuters: Obama Aides “Knew Weeks Ago.” “Those questions gained more urgency on Monday when the White House revealed that two senior aides to Obama knew weeks ago about a draft Treasury Department watchdog report detailing the IRS targeting that occurred for an 18-month period starting in early 2010. …Obama has said he did not learn of the report’s findings until May 10, when IRS official Lois Lerner apologized for the targeting at an American Bar Association conference.” (John Whitesides, “IRS Officials Back On Capitol Hill Hot Seat Over Targeting,” Reuters, 5/21/13)

POLITICO: White House Counsel Concluded Investigation Was “Not A Matter She Should Convey to the President.” (Jennifer Epstein, “Senior W.H. Staff Knew Of IRS Investigation, Did Not Tell Obama,” POLITICO, 5/20/13)

NBC News: “White House Aides Learned of IRS Details in April, But Didn’t Tell Obama.” “The White House first learned of a draft report detailing abuses by IRS officials in targeting conservative groups in late April, though the top administration spokesman maintained on Monday that President Barack Obama was not notified of the emerging controversy at that time.” (Michael O’Brien, “White House Aides Learned of IRS Details in April, But Didn’t Tell Obama,” NBC News, 5/20/13)

Bloomberg: “Obama’s Defense in IRS Case: Pre-Election Ignorance.” “What’s now an embarrassment to President Barack Obama’s administration would be elevated to a lasting stain if evidence emerges that anyone outside the IRS knew or was involved, either in inspiring the selective scrutiny or in withholding disclosure to the public, during the sensitive election season.” (Mike Dorning and Richard Rubin, “Obama’s Defense in IRS Case Is Pre-Election Ignorance,” Bloomberg, 5/21/13)

Washington Times: “Aides Insulated Obama From IRS Scandal.” “White House aides first learned of a draft report detailing the IRS abuses in late April, but chose to insulate President Obama by not informing him until it exploded in the press, the president’s spokesman said Monday.” (Susan Crabtree, “Carney: White House Aids Insulated Obama From IRS Scandal,” Washington Times, 5/20/13)

The Hill: Jay Carney: “Obama Out of IRS Loop.” “Senior White House officials were briefed about a federal audit of the IRS’s improper focus on conservatives, but they decided not to tell President Obama about it, press secretary Jay Carney claimed Monday.” (Bernie Becker and Jonathan Easley, “Carney: Obama Out of IRS Loop,” The Hill, 5/20/13)

FLASHBACK: ABC News: “Obama’s Inability to Hire Good Help Rears Its Head … Again.” (Jennifer Parker, “Obama’s Inability to Hire Good Help Rears Its Head … Again,” ABC News, 5/12/08)