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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Francis Cianfrocca to talk about the latest consumer spending and savings numbers that came out this morning. Then Congressman Sean Duffy discusses debt ceiling negotiations, Democrat calls for tax hikes, and Obama’s overreach on Libya.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

Related Links:

Consumers Pulling Back on Spending as Inflation Builds
Obama Tries to Salvage Debt Talks as Party Leaders Bicker Over Meaning of ‘Tax Hike’
Debt Ceiling Negotiations Break Down Over Taxes
Medicare dominates Duffy’s town hall chat
Lawmakers send Obama message of discontent on Libya
Congressman Sean Duffy

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On the heels of the huge GOP victory in the Massachusetts Senate race, Senate Minority Whip Jon Kyl (R-Ariz.) decided to stand up to the Obama administration with one of the strongest weapons at his disposal — he halted Senate votes on Treasury Department nominees.

As there are a number of areas where the conservative movement takes issues with administration objectives, this is a target-rich environment.  A strong stand here could show America what the Republican Party stands for and what the party will fight for.  So, is Kyl standing up for improvements in the health care bill, reduced federal spending, or limits on federal power?  No, he is not.  Sadly, Sen. Kyl is wasting this powerful, one-shot weapon to register his dissatisfaction with the administration’s granting of a delay in implementing Internet poker and gaming-related financial regulations — a delay that was requested by his fellow Republicans.

The law for which Kyl pushed with so much vigor for so many years is fatally flawed.  Despite a decade of trying, beginning with his attempt to add a national online poker and gaming prohibition to the Crime Prevention Act of 1995, Kyl found himself unable to pass an online gaming prohibition through Congress.  In 2006, he settled for a law prohibiting money from going from U.S. financial transactions to sites offering “unlawful Internet gambling.” To move this through the Senate, Kyl had this bill tacked on to the must-pass SAFE Port Act in the middle of the night just as the 2006 Congressional term was coming to a close.  Thus, the Senate never even voted on this as a free-standing bill.

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Yesterday, Democrats on the Senate Finance Committee torpedoed efforts to require Mediciad applicants to show IDs. We noted that, with fraud running at around $100 billion in Medicaid and Medicare, this might not have been the wisest vote. Well, it turns out Democrats on the Senate Committee are perfectly fine with a 10% fraud rate.

Today, the Committee voted on an amendment from Sen. Cornyn which would have delayed expansions in Medicaid until steps had been taken to get its error/fraud rate down to 3.9%, the average of all government programs. Details below:

Cornyn Amendment #C30 to America’s Healthy Future Act of 2009

Short Title: Reducing waste, fraud, and abuse in the Medicaid program.

Description of Amendment: Prior to implementing the mandatory Medicaid program expansions in the Chairman’s Mark, the Secretary of Health and Human Services must certify that states have implemented program integrity and quality improvement measures specified in the Chairman’s Mark and that the Medicaid program’s average Payment Error Rate Measurement is less than 3.9 percent.

Offset: No offset needed.

 Republicans

CHUCK GRASSLEY -yes, ORRIN G. HATCH -yes, OLYMPIA J. SNOWE -yes, JON KYL -yes, JIM BUNNING -yes, MIKE CRAPO -yes, PAT ROBERTS -yes, JOHN ENSIGN -yes, MIKE ENZI -yes, JOHN CORNYN -yes

Democrats

MAX BAUCUS -no, JOHN D. ROCKEFELLER -no, KENT CONRAD -no, JEFF BINGAMAN -no, JOHN F. KERRY -no, BLANCHE L. LINCOLN -no, RON WYDEN -no, CHARLES E. SCHUMER – no, DEBBIE STABENOW -no, MARIA CANTWELL -no, BILL NELSON -no, ROBERT MENENDEZ – no, THOMAS CARPER -no

Not Agreed to (10-13)