The Joplin Globe, Joplin, MO

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November 14, 2012

Obama: No evidence of security breach in scandal

WASHINGTON — President Barack Obama said Wednesday he has seen no evidence that national security was threatened by the widening sex scandal that ensnared his former CIA director and top military commander in Afghanistan.

In his first postelection news conference, Obama also reaffirmed his belief that the U.S. can’t afford to continue tax cuts for the wealthiest Americans, a key sticking point in negotiations with Republicans over the impending “fiscal cliff.”

The tangled email scandal that cost David Petraeus his CIA career and led to an investigation of Gen. John Allen has disrupted Obama’s plans to keep a narrow focus on the economy coming out of last week’s election.  And it has overshadowed his efforts to build support behind his re-election pledge to make the wealthy pay more in taxes in order to reduce the federal deficit.

Obama said he hoped the scandal would be a “single side note” in Petraeus’ otherwise extraordinary career.

Petraeus resigned as head of the CIA last Friday because of an extramarital affair with his biographer, Paula Broadwell, who U.S. officials say sent harassing emails to a woman she viewed as a rival for the former general’s affection. The investigation revealed that that woman, Jill Kelley, also exchanged sometimes-flirtatious messages with Allen.

Obama brushed aside questions about whether he was informed about the FBI investigations that led to the disclosures quickly enough. White House officials first learned about the investigations last Wednesday, the day after the election, and Obama was alerted the following day.

“My expectation is that they follow the protocols that they’ve already established,” Obama said.  “One of the challenges here is that we’re not supposed to meddle in criminal investigations and that’s been our practice.”

Turning back to the economy, the president vowed not to cave to Republicans who have pressed for tax cuts first passed by George W. Bush to be extended for all income earners. Obama has long opposed extending the cuts for families making more than $250,000 a year, but he gave into GOP demands in 2010 when the cuts were up for renewal.

That won’t happen this time around, he said Wednesday.

“Two years ago the economy was in a different situation,” Obama said. “But what I said at the time was what I meant. Which was this is a one-time proposition.”

The president and Congress are also seeking to avoid across-the-board spending cuts scheduled to take effect because lawmakers failed to reach a deal to reduce the federal deficit. Failure to act would lead to spending cuts and higher taxes on all Americans, with middle-income families paying an average of about $2,000 more next year, according to the nonpartisan Tax Policy Center.

 

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  • Amendment 7 backers tout safety, new jobs; foes say special interests to benefit

    Billions of dollars are on the line when Missouri voters head to the polls on Tuesday to consider Amendment 7.
    The constitutional amendment, sent to the voters by the Legislature this year, would temporarily increase Missouri’s sales tax by three-quarters of 1 percent, raising an estimated $5.4 billion for the next decade to fund transportation projects. That includes more than $114.1 million in state funds for projects in Newton and Jasper counties, on top of additional revenue for localities that would be raised.
    After the Missouri Department of Transportation downsized in recent years, these projects are now mostly designed and built by private engineers, contractors and laborers — many of whom have contributed tens of thousands of dollars to a campaign effort to sway voters to support the measure.
    Last Monday — eight days ahead of the primary election day — supporters of the measure reported having raised more than $4.1 million for a campaign committee called Missourians For Safe Transportation and New Jobs, which was established last fall to support the measure.
    The International Union of Operating Engineers in St. Louis and Kansas City have contributed nearly $250,000 to the effort. That total was dwarfed by the $649,398 put in by the Industry Advancement Fund Heavy Constructors. Between its Missouri and Kansas companies, APAC — a construction contracting company that specializes in transportation projects — has contributed more than $150,000.
    “The whole idea that money is flowing into the campaign, of course it is,” said Sen. John Lamping, a St. Louis Republican who is opposed to the measure. “It would be a smart business decision to do that.”
    Lamping said the money pouring into the campaign supporting Amendment 7 is indicative of the financial gain the measure bodes for contractors and laborers.  
    Lamping proposed a measure in the Legislature that would redirect one-eighth of existing sales and use tax revenue directly to transportation projects, but he said that measure was rejected by legislative leaders. The coalition “didn’t hear about it,” the outgoing senator said, “because it was my idea instead of someone else’s idea.”
    Lamping, who filibustered a similar measure in 2013, said Republicans have an ideological consistency problem on the issue. He pointed to the Legislature passing a sales tax increase only a few weeks after overriding Democratic Gov. Jay Nixon’s veto of an income tax cut that will largely help businesses organized as limited liability corporations, like many of the companies that could benefit from the measure. Lamping said that the tax increase will mostly affect taxpayers who did not get a significant tax cut.
    “Who wants a tax cut in Missouri?” he said. “Businesses. (Republican leaders) wanted to make them happy and then they passed a tax cut. This is grand-scale special interest cronyism.”
    The ad campaign being funded mostly by the business interests features paramedics and construction workers claiming the measure would “fix our roads and keep Missouri families safe.”
    “We have a chance to give our highways and bridges the repairs they need,” says one ad, which is running in Joplin and statewide in the lead up to Tuesday’s vote. “We have a chance to fix what’s broken by voting yes on Amendment 7.”
    The commercial uses a lot of words to talk about the benefits of the measure, but two words in particular are noticeably absent from the commercial: “Tax increase.”  
    “The ads don’t mention any of the ballot language,” said Jewell Patek, a spokesman for Missourians For Safe Transportation and New Jobs. “We figure Missourians will see the language when they go to the polls.”
    Patek, a former state representative who now lobbies the Legislature, said he disagreed with Lamping’s notion that Amendment 7 is all about special interest gain.
    “There’s quite a bit to gain for Missourians,” he said. “We have serious road needs. We’ll win or lose by the benefits in Amendment 7. I’m not sure I agree with Senator Lamping’s assessment.”
    If approved, Amendment 7 would prevent an increase in the state’s fuel tax, a funding boost opponents of the amendment like Democratic Gov. Jay Nixon and some of the state’s social welfare groups have said would be more appropriate because it could pull in revenue from people who use the roads — like the state’s trucking industry.
    The Missouri Truckers Association’s political action committee has contributed more than $27,000 to the effort to pass the measure. Tom Crawford, president of the association, said his members support the amendment because they see the problems on the road and deal with them every day. And passage of the measure does not mean anyone will stop paying fuel tax.
    “We overpay our fair share on the fuel tax,” he said, pointing to statistics by the American Transportation Research Institute that show truckers have accounted for about 14 percent of road usage while paying for 39 percent of all taxes and fees owed by motorists. “We pay sales taxes just like everybody does on goods and products that people buy in the stores.”
    Crawford said truck companies do not pay state sales taxes on the purchase of trucks, but they do pay a federal tax. “So, we won’t be impacted on new equipment purchase, but other areas of our business will be impacted just like every other taxpayer in the state will,” he said.
    Thomas Shrout, who is helping lead the campaign against the tax hike, said that is not good enough and that Amendment 7 lets truck drivers off the hook. “Under Amendment 7, they wouldn’t have to pay any more,” he said.
    Shrout’s opposition campaign has raised just over $27,000 — less than 1 percent of the total money raised by its supporters. They are targeting their opposition at the state’s urban core by spending money on direct mail and targeted robocalls in the final week.
    “We think using the sales tax to fund road projects is poor policy for the state of Missouri,” he said. “It should be rejected.”
    Shrout said the Missouri Department of Transportation and its supporters should go back to the drawing board and consider some of the other options like campaigning for toll roads or a gas tax increase — both based on road usage.
    Representatives for APAC and the Heavy Constructors Association declined requests for comment.

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