Progress.

WASHINGTON (AP) — President-elect Barack Obama’s proposed stimulus package would provide businesses with billions of dollars in refunds on taxes they paid several years ago.

The refunds are popular among business groups and could increase pressure on Republicans to support Obama’s massive stimulus package, even though most of them are wary of government spending increases that could send its total cost to $800 billion or more.

“This gives companies an infusion of cash just when they need it,” Dorothy Coleman of the National Association of Manufacturers said of the proposed refunds.

Obama’s proposal to stimulate the economy includes tax cuts of up to $300 billion, including more than $100 billion for businesses.

The refund provision would enable some companies posting losses last year to get refunds for taxes paid as far back as five years earlier. The businesses could refile their old tax returns, using the losses suffered last year to offset profits made when times were good.

Under current law, businesses can use losses to offset profits the two previous years.

Obama’s team has yet to provide estimates on what the refunds could total. When Congress considered the same idea last year, carrying back losses to offset profits in the previous five years would have provided businesses an estimated $25.5 billion in refunds.

With business losses mounting in 2008 because of the recession, the price tag on Obama’s plan would probably be much higher, said Bruce Wein, who heads the U.S. tax practice for the law firm DLA Piper.

“I think it’s creative, I think it’s bold,” Wein said. “It’s going to get a lot of backing from Republicans for the obvious reasons.”

Obama’s tax package also targets individuals, providing a $500 tax cut for most workers and $1,000 for couples, at a cost of about $140 billion to $150 billion over two years. The individual tax cuts may be awarded through withholding less from worker paychecks, effectively making them about $10 larger each week.

Another provision brought to the negotiations by the Obama team would award companies that hire new workers a one-year tax credit at a total cost of $40 billion to $50 billion over two years. Businesses also would get additional incentives to invest in new equipment.

Obama takes office in two weeks. Meeting with congressional leaders Monday at the Capitol, he described the nation’s economic condition as “precarious” and said he’d like Congress to have a stimulus package ready for signing into law by early February.

The ability to write off losses and apply them to tax bills retroactively was “at the top of the list from businesses’ viewpoint,” said Bruce Josten, the executive vice president for government affairs at the U.S. Chamber of Commerce.

Josten said the Obama transition team has held more than a dozen meetings with chamber officials to discuss a number of issues, with several of the meetings devoted to the economic recovery plan. The tax relief package detailed in press reports on Monday “fits the criteria that we’ve outlined,” he said.

“It doesn’t help autos, who haven’t paid taxes previously. It probably doesn’t help steel, probably doesn’t help airlines,” he said. “But the rest of the business community, I think it’s safe to say that was at the top of their list.”

Sen. Chuck Grassley of Iowa, the top Republican on the Senate Finance Committee, said tax cuts could help boost the economy “if it’s done right.”

“It’s tricky to make sure the relief is big enough to make a dent in our huge economy and done in a way that stimulates growth,” Grassley said in a statement. “Business tax incentives should be strong enough to spur investment and create jobs.”

House Republican leader John Boehner of Ohio said he is concerned the package could include “wasteful spending.” But he is pleased Obama and congressional Democrats “agree with Republicans that tax relief for middle-class families and small businesses has to be a major part of this economic package.”

A source said today that Gov. Rod Blagojevich was taken into federal custody at his North Side home this morning. The U.S. attorney’s office would not confirm the information.

A Blagojevich spokesman said he was unaware of the development. “Haven’t heard anything – you are first to call,” Lucio Guerrero said in an e-mail.

The stunning, early morning visit by authorities to the governor’s North Side home came amid revelations that federal investigators had recorded the governor with the cooperation of a longtime confidant and had begun to focus on the possibility that the process of choosing a Senate successor to President-elect Barack Obama could be tainted by pay-to-play politics.

Blagojevich was taken into custody hours after the Tribune reported that the investigation into allegations of pay-to-play politics within his administration had been expanded to include his pending choice of a Senate replacement for Obama. The Democratic governor has said he expects to make a decision on the state’s next senator in weeks.

Sources told the Tribune that investigators intensified their investigation into Blagojevich amid concerns that the process of choosing a new senator could be tainted. The actions by federal authorities came a day before Blagojevich’s 52nd birthday.

The Tribune previously disclosed that federal investigators had recordings of Blagojevich. Those recordings were aided by the cooperation of longtime Blagojevich confidant and former congressional chief of staff John Wyma.

On Monday, Blagojevich said he has done nothing wrong in his stewardship of the state and challenged critics to record him because his discussions were “always lawful.”"

Order of Succession according to the Illinois Constitution.  Article V, Section 6

a)  In the event of a vacancy, the order of succession to the office of Governor or to the position of Acting Governor shall be the Lieutenant Governor, the elected Attorney General, the elected Secretary of State, and then as provided by law. 
(b)  If the Governor is unable to serve because of death, conviction on impeachment, failure to qualify, resignation or other disability, the office of Governor shall be filled by the officer next in line of succession for the remainder of the term or until the disability is removed.

UPDATE: Statement released by the U.S. Attorney office

“The breadth of corruption laid out in these charges is staggering,” said U.S. Attorney Patrick Fitzgerald in a statement.

“They allege that Blagojevich put a ‘for sale’ sign on the naming of a United States Senator; involved himself personally in pay-to-play schemes with the urgency of a salesman meeting his annual sales target; and corruptly used his office in an effort to trample editorial voices of criticism,” Fitzgerald said. “The citizens of Illinois deserve public officials who act solely in the public’s interest, without putting a price tag on government appointments, contracts and decisions.”

FBI spokesman Frank Bochte said federal agents arrested the governor and Harris simultaneously at their homes at 6:15 a.m. and took them to the Chicago FBI headquarters. Bochte said he did not know if either man was handcuffed or if the governor’s family was their North Side home at the time of his arrest. He did say Blagojevich and Harris both were given time to get dressed before being taken to the headquarters.

Corruption in the Blagojevich administration has been the focus of a federal investigation involving an alleged $7 million scheme aimed at squeezing kickbacks out of companies seeking business from the state.

Some of the allegations in the 76-page Affidavit according to USA Today.

The FBI complaint said that in one of the phone calls, Balgojevicfh entertained the idea of appointing himself to the seat if none of the mentioned hopefuls offer him anything of value.

“I’m going to keep this Senate option for me a real possibility, you know, and therefore I can drive a hard bargain,” he allegedly said. Later, he referred to the Senate as a “valuable thing, you just don’t give it away for nothing.”

The official complaint alleged that, Blagojevich, on various occasions, discussed exchanging the Senate appointment for:

• A substantial salary for himself at a either a non-profit foundation or an organization affiliated with labor unions;

• Placing his wife on paid corporate boards where he speculated she might garner as much as $150,000 a year;

• Promises of campaign funds — including cash up front;

• A cabinet post or ambassadorship for himself.

Blagojevich also was charged in the federal complaint with illegally threatening to withhold state assistance to Tribune Co., the owner of the Chicago Tribune, in the sale of Wrigley Field, according to a federal criminal complaint.

In return for state assistance, Blagojevich allegedly wanted the Tribune to fire members of the paper’s editorial board.

The complaint alleges that Harris, the governor’s chief of staff, allegedly told Balgojevich that he had spoken with an unidentified “Tribune Financial Advisor” to deliver the message that the governor would be cooperative with the state assistance in exchange for the dismissal of editorial board members, particularly deputy editorial page editor John McCormick, a strong critic of Blagojevich’s administration.

Harris allegedly said that the advisor is “very sensitive to the issue” and had advised about “certain corporate reorganizations and budget cuts coming and, reading between the lines, he’s going after that section.” To which Blagojevich allegedly replied in the taped conversation: “Oh, that’s fantastic.”

Later, however, Harris reported that there had been some layoffs at the newspaper, but that the editorial board was not among them.

UPDATE x2: U.S. Attorney, Patrick Fitzgerald, News Conference

The Feds announced that Gov. Blagojevich worked feverishly to get as much money from contractors through pay-for-play politics as possible before the end of the year.  Fitzgerald said that Blagojevich “sold influence like a salesman meeting a sales target.”  In one of the conversations, Blagojevich was reported to be upset about being “stuck” as governor.  Fitzgerald reported that the government has had wiretaps in place since 2004.  Such wiretaps were placed at Blagojevich ’s office and inside his home. 

AG Fitzgerald went on to say that the complaint makes NO allegations against the President elect or any of his staff and cautioned people not to cast dispersions against anyone based on the fact that an unscrupulous individual tried to figure out a way to approach such individual in an effort to better his own political or economic position.  The U.S. Attorney also reported that Governor Blagojevich said the following regarding trying to get something from the Pres. elect. “[T]he Obama team are not willing to give me anything but appreciation…f@#&  them.”  Fitzgerald repeated that there is no reference in the complaint about any conversations that the governor had with the Pres. elect or any allegations in the complaint that any such conversation ever took place.

As to the senate seat appointment, Fitzgerald believes that because these allegations are now in the light of day it is less likely that the Governor can get away with appointing a person through corrupt means. Charges include solicitation of a bribe and mail fraud.  Blagojevich is scheduled to appear in court today on the charges.

UPDATE x3:  President-elect Obama said that he is “saddened and sobbered” by the Blagojevich case.  Also said that he has “had no contact with the Governor or his office and so I was not aware of what was happening.”  Lastly, the Pres. elect said “it is a sad day for Illinois, beyond that I don’t think its appropriate to comment.”

The jist of what the case argued:

“Since Barack Obama´s father was a citizen of Kenya, and therefore subject to the jurisdiction of the United Kingdom at the time of Senator Obama´s birth, then Senator Obama was a British citizen ‘at birth,’ just like the framers of the Constitution, and therefore, even if he were to produce an original birth certificate proving he were born on U.S. soil, he still wouldn´t be eligible to be president.” Washington Times, quoting Donofrio

Reactions to Thomas requesting such a review in the first place:

Trevor Morrison

[Trevor] Morrison [a professor of law at Columbia University School of Law] said that Thomas’s actions are once in a decade. “When that does happen, the case has to be of an extraordinary nature and this does not fit that circumstance,” he said. “My guess would be that Thomas accepted the case so it would go before the conference where it will likely be denied. If Thomas denied the petition, then Donofrio would be free to go to the other justices for their consideration. “This way, I would guess, the matter would be done with. Petitions of Donofrio’s types are hardly ever granted.” New America Media 3 Dec

Earl Hutchison in American Chronicle:

Thomas´s legal meddle on the Obama birth certificate [sic] non-issue fits perfectly in with his jaundiced interpretation of law and its practice and his private vow to get revenge on his liberal tormentors. Obama is the latest would be victim. He almost certainly stirred Thomas´s personal ire back in August. Obama was asked at a joint church gathering with Republican rival John McCain at the mega Saddleback church in Lake Forest, California which justice he wouldn´t have nominated to the Supreme Court. He didn´t hesitate. He named Thomas. And he told why.

“I don´t think that he was a strong enough jurist or legal thinker at the time, for that elevation, setting aside the fact that I profoundly disagree with his interpretations of a lot of the constitution.” Earl Hutchinson in American Chronicle.  He went on to say that [Thomas] wants more judges to think and act like him on the bench. Obama has made it clear not only that he would not appoint another Thomas to the High Court but that the type of judges he´d appoint will be the diametric opposite of him.

Les Payne opines:

The bitter Justice Thomas is seemingly bent these days on exacting revenge on the larger black community. It is perhaps in this light that we catch a glimpse of him stoking the Donofrio case as much for Limbaugh laughs as for the backhand it applies to the aspirations of African-Americans. Newsday

“We expect to have during the first couple of weeks of January a package for the president’s consideration when he takes office.”

The key members of the Obama Economic Dream Team are:

Treasury Secretary - Timothy Geithner
National Economic Council Director - Larry Summers 
Chair Council of Economic Advisers - Christina Romer                                                                                                                                                                         Director of the Domestic Policy Council - Melody Barnes    (Executive Vice President for policy at the Center for American Progress, chief counsel Sen. Ted Kennedy on the Senate Judiciary Committee.  Melody will essentially be the czar of domestic policy in the Obama Administration.

In Pres. Elect Obama’s choice of nominees for his economic team it is clear that he intends to strike a balance between experience and fresh  thinking.  Both Christina Romer and Melody Barnes both represent a fresh, outside-the-beltway, way of thinking in Washington.  While Larry Summers and Timothy Geithner represent experience in the ways of Washington.

WASHINGTON - President-elect Barack Obama is on track to nominate Hillary Rodham Clinton as secretary of state after Thanksgiving, an aide to his transition said Thursday.
One week after the former primary rivals met secretly to discuss the idea of Clinton becoming the nation’s top diplomat, the two sides were moving quickly toward making it a reality, barring any unforeseen problems.

The transition aide told The Associated Press that the two camps have worked out financial disclosure issues involving Clinton’s husband, former President Bill Clinton, and the complicated international funding of his foundation that operates in 27 countries. The aide said Obama and Hillary Clinton have had substantive conversations about the secretary of state job.

Clinton has been mulling the post for several days, but the transition aide’s comments suggested that Obama’s team does not feel she is inclined to turn it down.

CBS) Since Barack Obama was elected the 44th president of the United States 12 days ago, he has largely remained out of sight, getting high-level government briefings and conferring with his transition team. But he surfaced on Friday afternoon in Chicago, alongside his wife Michelle to give 60 Minutes his first post-election interview.

It covers a wide range of subjects including the economy, the ailing automobile industry, the government’s $700 billion bailout program, their visit to the White House, the emotions of election night and the quest for a family dog. You’ll hear all of it. But we begin with the president-elect and his thoughts about the new job.

Steve Kroft: So here we are.

President-elect Barack Obama: Here we are.

Kroft: How’s your life changed in the last ten days?

Mr. Obama: Well, I tell you what, there seem to be more people hovering around me. That’s for sure. And, on the other hand, I’m sleeping in my own bed over the last ten days, which is quite a treat. Michelle always wakes up earlier than I do. So listen to her roaming around and having the girls come in and, you know, jump in your bed. It’s a great feeling. Yeah.

Kroft: Has this been easier than the campaign trail?

Mr. Obama: Well, it’s different. I think that during the campaign it is just a constant frenetic, forward momentum. Here, I’m stationary. But the issues come to you. And we’ve got a lot of work to do. We’ve got a lot of problems, a lot of big challenges.

TRANSCRIPT

Maya Soetoro-Ng could have accepted her brother’s invitation to be at his side on Election Night in Chicago. But Barack Obama’s sister knew where she belonged.

As she had for much of the past eight years, Soetoro-Ng stayed in the two-bedroom apartment on Beretania Street where she had taken care of their maternal grandmother, Madelyn Dunham.

Dunham had died of cancer just two nights before at the age of 86, with Soetoro-Ng at her side. Then, on the day that Obama was elected as America’s first black president, Dunham’s koa urn arrived and Soetoro-Ng surrounded it with pictures of Dunham’s late daughter, Stanley Ann Dunham, Dunham’s grandchildren and her great-grandchildren, “all of us who benefited so much from her steady voice and hand,” Soetoro-Ng wrote

Maya also gives some insight into the strength and wonderful sense of humor of their grandmother Madelyn Dunham

Dunham, whom Obama called “Toot” after the Hawaiian word for grandparent, tutu, never showed self-pity or fear as she faced the end of her life, Soetoro-Ng wrote.

But Dunham could be wickedly funny.

“When she saw the number of flowers that had been sent to her,” Soetoro-Ng wrote, “she said, ‘Oh my … with all of this hullabaloo, it’s going to be embarrassing if I DON’T die.’ I gave her a chuckle and of course told her that I wouldn’t at all mind such an embarrassment, and then I invited her to stay and dance with me into the new year. She couldn’t stay, but she certainly tried, and defied expectations again and again.”

Maya gave permission to her friends to release the letter to the press.  Read the whole letter for yourself. 

“President-elect Barack Obama has pledged to change the way Washington works and curb the influence of lobbyists,” said Podesta in another statement. 

“During the campaign, federal lobbyists could not contribute to or raise money for the campaign…the president-elect is taking those commitments even further by announcing the strictest, and most far reaching ethics rules of any transition team in history.”

Looks like President-elect Obama has already begun to keep his campaign promises.

PROGRESS

Transcript Below (with props to Dopeman).

Charles:

I was born in ‘22. I lived through the Great Depression. That’s the reason I’ve been a Democrat all my life, ’cause I saw what Roosevelt did when he first come into office. My mother would have lose her farm and we would’ve lose everything we had if it hadn’t have been for President Roosevelt elected to office.

Merideth:

Charles started volonteering with us here about 4 weeks ago now, it was right after his wife passed away. He’d been married to her for 69 years. And he has been helping us with the front desk, greeting folks, signing them in, making sure they feel welcome here, um, he’s just, he’s one of the most amazing people I’ve met on the campaign. he saw our raffle box that we had set up for every volunteer who came in to help us was able to submit a raffle ticket to be pulled at random and the next day was the day that we pulled out, we pulled the winner and I stuck my hand in the big box then swirled it around at random and pulled out Charles Alexander’s ticket and everyone was just in shock. Everyone said that if there is one one person out of Boulder County, out of Colorado could meet Barack, this was the guy that absolutely deserved it, um, and we told him the next day and he looked at us and he said ‘are you pulling my leg? Are you kidding me? I’ve never won anything in my life.’

Charles:

Oh that’s the greatest thing in my life, I tell ya, I never did think I would meet.. uh… someone going to be the president of the United States in my lifetime. He is such a lovely person, he is just the same in person as he is on tv. And uh, if he gets to be elected president it will be one of the greatest jobs this country’s people ever done for this country. to elect him president now, somebody who can unite the country back together. ‘Cause divided we will never go no place when we are divided.

Merideth:

He’s the type of person that gets me up out of bed every morning and keeps me going.

Charles:

My God, all these young people here, they are tomorrow’s future. I’m dying off. Everybody my age is dying off. Everybody. The next 4 or 5 years, I probably won’t be around. These young people are going to take the lead. That’s what I love about seeing all these young people in here volunteering ’cause they are all tomorrow’s future. They are my grandkids’ future and great great grandkids, the young people that you see here today. God knows that I see a bunch of them. They really are wonderful people. They’re just as friendly as they can be. They are real united people. And that’s what this country needs to be, 100% united. and I just think Barack Obama is the person that can do it.

Barack will unlock credit needed to keep small businesses growing by implementing a nationwide emergency lending facility for small businesses.

Provide Temporary Tax Relief

To stimulate investment and job growth and spark our long-term recovery, the Small Business Rescue Plan will provide temporary business tax incentives through 2009.

Eliminate Capital Gains Taxes

Barack’s plan will eliminate all capital gains taxes on investments made in small and start-up businesses, encouraging investment and innovation.

Cut or Freeze Taxes for 99% of Small Business Owners

To help individuals with small business income — including the country’s more than 20 million self-employed individuals — Barack will provide a $1,000 Making Work Pay tax credit to 95 percent of workers and their families, and freeze any tax increases for the remaining 4 percent.

Lower Health Care Costs and Ease the Health Care Burden

Barack will give small businesses new incentives, help cut costs, and improve efficiency for all firms to provide health care to their workers at an affordable rate.

Expand Opportunity for Small Businesses

Barack will put in place far-reaching reforms to expand the ability of women-, service-disabled veteran-, and minority-owned firms to compete in today’s marketplace

SEE FULL PLAN

One last thing.  General Powell made a really interesting point about allegations from the Right that Sen. Obama is proposing redistributing wealth through his tax policy.  To paraphrase, Powell said that all tax policy is about redistribution of wealth in some form because for the government to function it cost money.  Think about it this way, when the Republican party and its leaders Bush/McCain demand military actions in other regions of the world knowing that it will result in significant government expenditures and then demand deep tax cuts simultaneously for a small group of Americans in the highest tax bracket, this results in wealth redistribution from the middle class and the working poor to the rich.  So for republicans and McCain to call Sen. Obama tax policy wealth redistributing, they are for redistributing themselves but to a different socio-economic class…..the rich.