THURSDAY, MAY 11  ■  Reichert & Co. borrow $69B for wartime upper-class tax cut
■  In today's Tri-City Herald -- Extension of WA tax break stripped from GOP bill -- A deduction that saves Washington residents some $500 million a year expired at the end of last year, but Republicans stripped a provision to extend it from their tax-break bill. (Thanks Reichert & Co.!)
■  In today's NY Times -- Tax benefits to the rich and patient -- Studies show that most of the tax-cut package's benefits will flow to high-income Americans. Fully 80% of the tax savings will flow to the top 10% of taxpayers and almost a fifth of the benefits will go to the top one-tenth of 1%.
■  In today's NY Times -- The GOP agenda for 2006: Tax cuts for a favored few (editorial) -- There's nothing in it for most Americans, and yet all of us will pay its cost: $69 billion in the near term.
■  In today's NY Times -- The GOP agenda for 2006: Tax increases for everyone else (editorial) -- If Republicans get their way, the people who benefit the most from today's tax cuts -- wealthy Americans with lots of investment income -- will get special protection from future tax increases.
■  In today's Wash. Post -- Tax cuts, again (editorial) -- Congressional Republicans' formula hasn't changed: a windfall for the rich, and a hole in the federal budget.

Meanwhile...:
■  Today from AP -- China isn't rigging currency, White House says as critics object -- Critics complain the Bush administration dropped the ball by failing to cite China for a currency system that's a prime culprit in the loss of millions of U.S. manufacturing jobs. "Bush and the Treasury Department... are all bark and no bite," says AFL-CIO Secretary-Treasurer Richard Trumka.
■  Related story from AP -- Whirlpool to shut 3 U.S. plants, cut 4,500 jobs -- Whirlpool CEO: “This is an important step in our integration process that will allow us to drive continuing performance improvements and will better align our brands, products and operations with the markets we serve domestically and globally.” (Translation: "We can make these cheaper in China.")

Immigration news:
■  Today from AP -- Senators agree to revive immigration bill -- Senate leaders aim to revive a broad immigration bill that could provide millions of illegal immigrants a chance to become American citizens and said they'll try to pass it before Memorial Day.
■  In today's Seattle P-I -- Consider value of work and dignity of workers (op-ed) -- The U.S. has the right to secure its borders. But we must achieve that without ignoring the dignity of today's immigrants who enrich our communities with their family values just like immigrants of past eras.

Political news:
■  In today's Olympian -- Money flows to initiative efforts -- I-933 "takings" initiative raises the most, while the referendum to repeal the gay-lesbian nondiscrimination law gets little financial support.
■  In today's Seattle P-I -- Reichert, GOP set "suburban" agenda -- They outline plans to keep gangs and Internet predators out of the Burbs, to improve teacher quality and preserve green space. (This begs the question: "Uh, since you're in charge and all, what have you been waiting for?")
■  In today's Wash. Post -- Democrats fractured over strategy, cash -- DCCC's Emanuel spews "a trail of expletives" at DNC's Dean, who's screamin' through money with his 50-state strategy.

Local news:
■  In today's Tri-City Herald -- Buyer interested in Welch's plant -- Port of Kennewick executive says there is a company interested in buying the juice packing plant that closed in February.
■  In yesterday's (Aberdeen) Daily World -- Biodiesel plant on a fast track -- The plan is to have the construction of the $40 million facility under way by the summer of 2007.

National news:
■  In today's News Tribune -- Medicare drug deadline cut for some -- The deadline still stands for beneficiaries who live off more than $14,000 a year. If they miss Monday's (arbitrary, punitive) cutoff, they'll have to pay a minimum of 7% more out-of-pocket costs for the rest of their lives.
■  In today's Seattle P-I -- Trumping states on health care (editorial) -- The U.S. Senate is headed toward approving a bill that could make health insurance available to more small-business employees but only at an unacceptable cost in higher premiums, less coverage or both.

Like a Hole in the Head news:
■  Today from AP -- Another Bush in the White House? -- Jeb would be "great," says Big Brother.

Reps. Dave Reichert (R-8th), Cathy McMorris (R-5th) and Doc Hastings (R-4th) all voted with the majority in a 244-185 vote to approve $69 billion in tax cuts targeted to wealthy Americans, despite a massive budget deficit fueled by war costs, increased domestic spending, and an impending revenue crisis for Medicare and Social Security.

The Republican package approved yesterday extends tax breaks on dividends and capital gains, among other things. The nonprofit Tax Policy Center estimates that 80 percent of the package's tax savings will flow to the top 10 percent of taxpayers and that almost a fifth of the benefits go to the top one-tenth of 1 percent.

Meanwhile, a tax deduction that saves Washington residents some $500 million a year expired at the end of last year, but Republicans stripped a provision to extend it from their tax-break bill. Washington Democrats were furious at the move, but no comment from Reichert & Co. on why they were unable or unwilling to preserve this tax break.

"The Republican Party... is sending all the millionaires on an all-expenses-paid vacation -- for $41,000 a year," said Rep. Jim McDermott (D-7th), who joined the rest of Washington Democratic congressional delegation in voting no (although Rep. Smith was absent). "The rest of America is being forced to choose between filling the gas tank or stocking the refrigerator." 

Reichert & Co. voted for these upper-class tax breaks after voting for borrow-and-spend budgets that ran up $760 billion in unpaid bills in 2005.  In one year, they racked up $156,000 of debt for every man, woman and child in America.  In one year.  For a family, it's like having a $750,000 mortgage -- and no house.

The official estimate of the latest tax-cut bill's cost was $69 billion.  But this assumes the tax breaks will be in place for only a year or two.  If they were to continue for the next decade -- which President Bush and his Republican supporters want -- the cost would be more than 15 times more, according to the Congressional Budget Office.

The New York Times today points out that "the people who benefit the most from today's tax cuts -- mainly wealthy Americans with lots of investment income -- also will get special protection from future tax increases." It adds that Republican claims that the tax cuts will pay for themselves are "seriously delusional. Economic theory suggests that a fraction of the tax cuts' cost could, perhaps, be offset by higher growth, all other things being equal. But when a nation must borrow to pay for tax breaks, as is the case in the United States today, any ability of tax cuts for investors to spur growth is severely diminished."  

Many Democrats also pointed out that the latest round of tax cuts will reduce revenues precisely when commitments for Social Security and Medicare benefits explode.

CALL TO ACTION:  Why not give the members of our state's Republican congressional delegation a call?  They borrow-and-spend like drunken sailors (not that there's anything wrong with drunken sailors, but we wouldn't loan them our money.)  Meanwhile, the rest of us are struggling to pay our health care bills and fill our gas tanks.  Where's the "shared sacrifice" when our nation is at war?  The upper class gets more tax breaks and the working class gets nothing except more unpaid bills to pass on to our children.

• Rep. Dave Reichert -- Mercer Island: 206-275-3438

• Rep. Cathy McMorris -- Spokane: 509-353-2374; Colville: 509-684-3481; Walla Walla: 509-529-9358

• Rep. Doc Hastings -- Yakima: 509-452-3243; Pasco: 509-543-9396