A reading of the U.S. Constitution text was the first order of business for the Republican-controlled 112th Congress. Image: The White House

The U.S. Constitution text was read in the House of Representatives Thursday as Republicans kicked off the 112th Congress with blatant Tea Party pandering. The GOP-led sideshow was accompanied by controversy and melodrama. Republicans omitted passages of the original U.S. Constitution text, and a birther disrupted the proceedings.

Tea Party pandering on display

The reading of the U.S. Constitution text in the House was a Republican gesture to Tea Party activists who handed the party the majority in the 2010 election. The reading lasted about an hour and a half. It was a symbolic gesture to emphasize a new Republican rule requiring that all proposed bills must cite the section of U.S. Constitution text that permits them to become law. New Speaker of the House Rep. John Boehner, R-Ohio, had the honor of reciting the preamble’s words:

“We the people of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.”

Three-Fifths Clause doesn’t make the cut

Partisan bickering over the U.S. Constitution text began before it was read. Republicans insisted on deleting sections of the Constitution supplanted by amendments. One of those sections included the “Three-Fifths Clause.” The Three-Fifths Clause states slaves are only to be considered “three fifths of all other persons.” Rep. Jesse Jackson, D-Ill, said “Many of us don’t want that to be lost upon reading of our sacred document.” The fact that the Three-Fifths Clause was abolished by an amendment should be considered a reminder to conservatives that the Constitution is malleable, and has evolved along with the nation.

‘Help us Jesus!’

The reading of the U.S. Constitution text was shared by both Republicans and Democrats in what may be the final bipartisan gesture in the 112th Congress. The event took a turn when Frank Pallone, D-N.J., read the section requiring the president be a “natural born citizen.” A woman in the audience shouted “Except Obama, except Obama, help us Jesus!” The woman was arrested and escorted from the chamber.

Sources

ABC News

Washington Post

NPR

The U.S. Census has revealed the slowest population growth in decades, and that 12 seats in Congress will change states. Image from Wikimedia Commons.

Congressional representation is set to change thanks to population changes noted by the U.S. Census. Due to changing population in various areas, 12 seats in the House of Representatives are changing states. Most new seats are located in Republican strongholds.

House changes 12 seats thanks to Census

The data from the U.S. Census dictated that some changes were due to the number of seats in the House of Representatives allotted to some areas, according to the Washington Post. As states have a number of seats in the House of Representatives, changes in population can mean seats gained or lost. In all, 12 seats are changing, affecting 18 states. Texas gained the most, picking up an additional four House seats. Florida gained an additional two seats in the House. Arizona, Georgia, South Carolina, Nevada, Utah, and Washington state all gained one additional seat in the lower house. Illinois, Iowa, Louisiana, Massachusetts, Michigan, Missouri, New Jersey, and Pennsylvania lost a single set. New York and Ohio both lost two seats.

Population growth slowed during last census

The 2010 Census revealed that population growth in the United States was slower than in previous decades, according to AOL News. The census showed that the U.S. population grew by only 9.7 percent since 2000, to 308,745,538 people. The growth rate was the lowest since the Great Depression. Nevada’s population rose the most, growing by 35.1 percent, while Michigan was the only state to lose people, having shrunk by 0.6 percent. Southern states grew in population by 14.3 percent, while the Northeast grew by only 3.2 percent.

Gains bear grim tidings for Democrats

The gains in House seats will likely be realized most by Republicans. The areas in which House seats were gained were largely Republican strongholds, especially Texas. Texas experienced a population boom of its own, having increased in population by 20 percent since the last census. Most seats that were lost were in historically Democrat held areas.

Sources

Washington Post

AOL News

The tax bill has passed through Congress and will be signed by the President after a huge bipartisan effort. Image from Wikimedia Commons.

The tax bill that has been the subject of a fair amount of partisan bickering has been passed by Congress. The bill extends cuts in taxes instituted during the Bush administration, thus they’re commonly referred to as the Bush tax cuts. The bill was passed by a coalition of Republicans and Democrats.

House of Representatives passes tax bill

Despite objections from members of both parties over the final, compromised version of the bill, the tax bill extending the Bush era tax cuts has passed the House of Representatives, according to the Washington Post. After the Senate tax bill passed, the bill had to clear the House before legislators left on a break. President Obama has said that the bill contains flaw, but that not signing it would do more harm than good. Criticisms were made about the bill from both sides of the aisle, but the bill passed after some bipartisan collaboration. The House voted 277 to 148 in favor of the bill, with 36 Republicans and 112 Democrats voting against.

What the bill does

Current income tax rates remain unchanged, according to CNN. The ceiling for exemptions from the Alternative Minimum Tax is raised to $47,450 for individuals and $72,450 for couples filing jointly. For 2011, it increases to $48,450 and $73,450. Payroll tax going to Social Security for workers earning $106,000 a year or less is being cut from 6.2 percent in 2010 to 4.2 percent in 2011. The child credit is being raised to $1,000 from $500 for 2011 as well. The controversial estate tax measure exempts any estate less than $5 million for individuals, $10 million for couples, left to heirs, but estates worth more than that will be taxed at 35 percent.

Benefits extended along with deficit

The bill also includes a federal unemployment benefits extension for unemployed workers in states with high rates of unemployment. Benefits usually last for 26 weeks, but they are extended to 99 weeks in states with high unemployment rates. Other tax credits are being kept as well, such as the Opportunity credit for college students. The bill has rubbed some people the wrong way, as the cuts in government revenue will add to the near $14 trillion federal deficit.

Sources

Washington Post

CNN

Though Bernie Sanders, pictured here, tried to filibuster the bill to death, the tax cut bill is close to a Senate vote. Image from Wikimedia Commons.

The vote for the tax cut bill is near to passing the United States Senate with compromises. The bill, which would extend the Bush tax cuts, has been approved to proceed to a Senate vote. If it passes the Senate, it will have to pass the House of Representatives by Friday to take effect.

Senate votes to debate tax cut bill before voting on bill

Though the inner workings of legislatures are tedious, there are procedures that will have to be followed before the tax cut bill can be voted on. Currently, the tax bill that may extend the Bush tax cuts is getting the path cleared for a vote in the Senate, according to USA Today. All told, 79 Senators voted to bypass procedural rules and begin debate on the tax bill. Final debates are heard just before a legislative body votes on a law, and there has already been intense debate over whether this bill should be passed, and in what form. Senator Bernie Sanders (I-VT) filibustered for more than eight hours to try to kill the bill before it was voted on.

Bill has to pass before House vote

Should the tax bill pass the Senate, it will have to go to the House of Representatives to go through House revisions. If the House of Representatives passes the bill, the Senate has to reconcile and approve any revisions before it can go to the desk of the president. In its present form, the Bush era tax cuts across all income levels will be preserved, as well as an unemployment benefits extension which is set to run out soon. The bill, all told, totals about $860 billion.

Estate of confusion

The bill would also serve as an extension of cuts in payroll taxes. The estate tax will be reinstated at 35 percent on estates of $5 million or more. If the bill does not pass, the estate tax will revert to the pre-Bush rate of 55 percent on estates of $1 million or more. There was no inheritance tax for 2010.

Sources

USA Today

Judge G. Thomas Porteous is the first federal judge since Walter Nixon, pictured here, to be impeached. Image from Wikimedia Commons.

Federal Judge G. Thomas Porteous has been removed from office by the United States Senate. Porteous was convicted on four impeachment counts by the Senate related to corruption charges. He cannot serve in public office ever again.

Senate convicts Federal Judge Porteous

Federal Judge G. Thomas Porteous has been found guilty on four different impeachment charges by the U.S. Senate and was therefore removed from office, according to CNN. Porteous was found to have engaged in conduct unacceptable for a federal judge, stemming from allegations of corruption. Judge Porteous, appointed to the bench in Louisiana under President Clinton, allegedly accepted gifts and cash from people that have been in his court in order to pay gambling debts, according to the Los Angeles Times. He cannot hold public office in the United States again.

How impeachment works

In impeaching federal officials, the allegations are weighed by the House of Representatives, who can vote to begin an impeachment trial or not. If the House votes to impeach, the Senate carries out the investigation and impeachment trial proceedings. Should a person be found guilty of an impeachable offense in the Senate trial, including misconduct, that person can be found guilty of impeachment articles and removed from office. The Senate has not had an impeachment trial since 1999, when then-President Bill Clinton was looking at impeachment for lying about sexual misconduct with Monica Lewinsky. Clinton was famously and very closely acquitted.

Eighth federal judge to be impeached

Porteous is only the eighth judge on the federal judge to be impeached. The last judge to be impeached and removed from office was Walter Nixon of Mississippi, who was found to have committed perjury and was removed from office in 1989. Last year, Judge Samuel Kent of Texas resigned after being impeached by the House of Representatives but before the Senate could try him for impeachment.

Sources

CNN

Los Angeles Times

Charlie Rangel, after he was convicted of ethics violations, has been recommended for a Congressional Censure. Image from Wikimedia Commons.

Charlie Rangel was convicted by his peers of severe ethics violations, and a censure has been recommended. Censure is the sternest of reprimands in Congress. He may be the first Congressman to be censured in some time.

Rangel recommended to receive a censure

Not long ago, Charlie Rangel (D-NY) went on trial for committing ethics violations, by failing to pay taxes and improperly soliciting favors and donations. He took campaign contributions through improper channels, and did not pay taxes on income and property . Monday, Rangel stormed out of the trial, protesting that he didn’t have a lawyer, but he was convicted anyway, according to CBS. The committee held that he had adequate time to secure counsel. Congressman Rangel was found guilty of 11 of the 13 counts against him by the House Ethics committee. Rangel asked for “fairness and a drop of mercy” in the punishment recommendations. The chief counsel for the House ethics committee, Blake Chisam, recommended that Rangel be censured, which Rangel has argued is excessive.

Sternest punishment short of expulsion

A Congressional censure is the strongest punishment that can be handed down by Congress to an errant member, short of expulsion. A censure carries far more stigma than a reprimand and is practically a “scarlet letter” in the legislature. The procedure is rarely used, and to be censured is for a legislator to join infamous ranks. The last Representatives that received censures were Gerry Studds and Daniel B. Crane, according to Wikipedia. They were censured for their part in a 1983 sex scandal involving congressional pages. The last expulsion in the House was James Traficant (D-OH) in 2002, who was released from prison in 2009.

Blow for Democrats

Charlie Rangel is one of the longest serving House Democrats, and after the 2010 election results, the Democrats are already seen as on the ropes. This may not be the end of his tenure as a Congressman, but it certainly doesn’t do him any favors. Rangel may escape censure, but a reprimand is all but assured.

Sources

CBS

Wikipedia on Congressional Censure

Many Wall Street banks and firms have argued against the Financial Reform Bill. Image from Flickr.

Late this week or early next week, a Financial Reform Bill summary is due to be debated in the Senate. To get a good idea of the Financial Reform Bill summary that will regulate everything from a payday lender to the biggest banks, it is possible to put together a financial reform bill summary of both HR 4173, the House bill that was passed last December and S 3271, the Senate bill that will debated this week. Keep in mind that this Financial Reform Bill summary could change during reconciliation, though the broad strokes will likely remain the same. This article covers HR 4173, the House Bill. For a full Financial Reform Bill summary of the Senate bill, see Part 2.

Financial Reform Bill Summary | HR 4173

HR 4173 is the House of Representatives Financial Reform Bill. This financial reform bill originated in the House Financial Services Committee and is generally known as the Wall Street Reform and Consumer Protection Act. A full text of HR 4173 is available in PDF form on the U.S. House of representatives website.

Financial Reform Bill HR 4173 summary | Consumer Protections

First, a Consumer Financial Protection Agency is set to be a separate Federal agency focused solely on decoding, regulating, and ensuring the safety of U.S. financial product consumers. The day-to-day functionality of the Consumer Financial Protection Agency might include creating disclosure standards, working for consumer education about personal loan companies, and examining the details of new financial products.

Anti-predatory lending laws and mortgage reform would also be included. A standard that borrowers must be able to repay the loans they are sold would be instituted. The role of credit rating agencies would also be addressed, and credit rating agencies would be given some liability for their ratings.

HR 4173 Financial Reform Bill summary | Stability and Investing

The Financial Stability Council would be an “inter agency council” charged with identifying what financial firms are especially risky. The Securities and Exchange Commission would also be given stronger investor-protection powers.

Financial Reform Bill HR 4173 Summary | Too Big To Fail

Firms that are considered “Too Big To Fail” would no longer be given taxpayer dollars to keep running. Instead, the Financial Reform Bill would create a system for dismantling financial businesses when they start to fail. In short – no more bailouts for big companies.

Summary of HR 4173 | Investors Say on Pay

HR 4173 would give shareholders of a company a “say on pay” of the executives of a company. While the vote would only be advisory, regulators are also given the ability to ban “inappropriate or imprudently risky” pay packages. In other words, no more executives getting paid millions for running their companies into the ground.

HR 4173 Summary | Derivatives

The “derivatives” market would be regulated for the first time ever. A financial derivative is a product developed from another product. For example, the “mortgage-backed securities” were a financial product derived from residential mortgages. Any “derivative” product with “substantial risk” would be monitored.

Financial reform bill summary | Private Pools Investing Money

Hedge funds and private equity firms – the businesses who are in the business of investing with private money – are not currently regulated. Under HR 4173, a “private pool of capital” – a group of people that pool their money to invest it – would be examined for risk by the Financial Stability Council.

Financial reform bill HR 4173 | Office of Insurance

Finally, the Financial Reform Bill HR 4173 would create a unified insurance regulatory agency. Rather than insurance companies being subject to multiple sets of rules, a single Office of Insurance would monitor, regulate, and report on the insurance industry.

This is a summary of the Financial Reform Bill that passed the House of Representatives as HR 4173. See a full summary of Senate bill S 3271 in S 3271 | Financial Reform Bill Summary Part 2

Sources:

Reuters
Daily Finance
OpenCongress.org
Wall St Journal