April 28th, 2010, Washington, DC–From ALG News’ Capitol Hill Correspondent Derek Baker: 
In the Senate, it’s déjà vu, as cloture on Dodd’s Wall Street takeover bill failed again last night by an identical vote of 57-41. Once again, Sen. Ben Nelson joined all Republicans present to vote no. Reid voted yes this time, but is still in a position to repeat the procedure ad nauseam, with another such vote today. Negotiations continue between Sens. Dodd and Shelby. Rumors are that the $50 billion fund – which Republicans strenuously object to – may be dropped and that language addressing the looming problems of Fannie Mae and Freddie Mac may be inserted along with provisions limiting the new powers of the Fed and the FDIC. Reid still plans to pressure Republicans by continuing to force more cloture votes on the bill in the hope off flipping at least one nervous Republican from no to a yes… and there appears to be several moderate Republicans that are squeamish to continue voting no to block consideration of the bill. In a rare and highly unusual strategy, Reid’s third cloture vote come today and a fourth tomorrow.
Though Sen. Voinovich called the repeated votes “absolutely” counterproductive, he has already indicated he will eventually vote for cloture, though it is not clear why he would publicly announce this while negotiations are ongoing.
Bottom Line: While Americans are generally supportive of the concept of financial reform, recent polls have indicated that Republicans won’t suffer from voting “No” on this and other seemingly popular legislation… if they articulate a good reason for it (which they are doing now). The real problem for Republicans is weak-kneed sisters in their own party. Premature and unwise statements like those of Voinovich only serve to destroy any bargaining edge Republicans gain by winning two cloture votes in a row.
In the House, a bill passed yesterday that would freeze Member salaries at the current rate of $174,000 by an overwhelming vote of 402-15. Congress must proactively act to stop a pay raise (or cost of living adjustment) for themselves or it automatically goes into effect.
Meanwhile, a vote tomorrow on Puerto Rico statehood has many Republicans on different sides of the issue. Several have suggested that Governor (and for GOP Rep.) Fortuno has greased the skids for PR statehood with this bill and charmed many of his former colleagues to be supportive of legislation they would normally oppose on process and policy grounds. There are a number of politically difficult amendments planned, addressing issues such as English first and gun rights.
Bottom Line: Though PR statehood is certainly not a hot-button issue or of concern to most Americans, the vote does have significant political ramifications. Some suggest that statehood for Puerto Rico would automatically hand Democrats up to six more seats in the House, and a seat in the Senate. All the more reason to handle the issue fairly and not tip the scales to one side.
At the other end of the Avenue, in a ceremony launching the Debt Commission Obama created by Executive Order, BO declared that “everything has to be on the table.” In other words, the panel must consider including a value-added tax and other tax increases in its proposal to address the nation’s out-of-control debt and spending problems. The reason why efforts to create a debt commission legislatively failed was because Republicans argued the design of the commission was weighted toward tax increases and against reducing federal spending.
The commission’s co-chairmen are former Sen. Alan Simpson (GOP) and former White House Chief-of-Staff Erskine Bowles (Dem), and their recommendations are due by December 1st. The launch of the debt commission comes on the same day as Federal Reserve Chairman Ben Bernanke said the U.S. tax code must be reformed in order to increase federal revenue.
Bottom Line: Precisely what Republicans warned is already coming to fruition: Democrats are literally unable to consider spending cuts, and the net product of this Debt Commission will be a proposal (by unelected officials) for new taxes, penalties, and fees on the American people.
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