January 29, 2013

BIPARTISAN PLAN FACES RESISTANCE IN G.O.P.

[Republicans are betting that opposition from Tea Party activists and the party’s most conservative supporters will have less impact because of the dire electoral consequences of continuing to take a hard line regarding immigrants. The senators on Monday released a blueprint for a new immigration policy that opens the door to possible citizenship ahead of a Tuesday speech on the subject by Mr. Obama in Las Vegas.]


By Michael D. Shear
Doug Mills/The New York Times
Senator Marco Rubio, at lectern, and other members of a bipartisan group 
of lawmakers offered an immigration plan on Monday.
GREENVILLE, S.C.At Tommy’s Country Ham House, a popular spot downtown for politics and comfort food, not much has changed since 2007, the last time conservatives here made it crystal clear to politicians how they felt about what they see as amnesty for people who entered the country illegally.
“What we need to do is put them on a bus,” said Ken Sowell, 63, a lawyer from Greenville, as he ate lunch recently at the diner. “We need to enforce the border. If they want to apply legally more power to them. I don’t think just because a bunch of people violate the law, we ought to change the law for them.”
Six years ago, the intensity of that kind of sentiment was enough to scuttle immigration overhaul efforts led by President George W. Bush and a bipartisan group of lawmakers, including Senators John McCain of Arizona and Lindsey Graham of South Carolina, both Republicans.
Now, as a new bipartisan group of eight senators, including Mr. Graham and Mr. McCain, try again — this time with President Obama as their partner in the White House — members of Congress will have to overcome deep-seated resistance like that expressed in the restaurant if they are to push legislation forward.
Republicans are betting that opposition from Tea Party activists and the party’s most conservative supporters will have less impact because of the dire electoral consequences of continuing to take a hard line regarding immigrants. The senators on Monday released a blueprint for a new immigration policy that opens the door to possible citizenship ahead of a Tuesday speech on the subject by Mr. Obama in Las Vegas.
There is some evidence that the politics of immigration may be changing. Sean Hannity, the conservative host at Fox News, said days after the 2012 presidential election that he has “evolved” on immigration and now supports a comprehensive approach that could “get rid of” the issue for Republicans. Senator Marco Rubio of Florida, a rising star in the Republican Party, is pushing his own version of broad immigration changes — and getting praise from conservative icons like Grover Norquist and Ralph Reed.
But the Republican-controlled House remains a big hurdle. Speaker John A. Boehner on Monday was noncommittal about the emerging proposal, with a spokesman saying that Mr. Boehner “welcomes the work of leaders like Senator Rubio on this issue, and is looking forward to learning more about the proposal.”
Representative Lamar Smith, Republican of Texas and a senior member of the Judiciary Committee, said that “when you legalize those who are in the country illegally, it costs taxpayers millions of dollars, costs American workers thousands of jobs and encourages more illegal immigration.”
And if the lunch rush conversation at Tommy’s is any indication, many Republican lawmakers will soon return home to find their constituents just as opposed to the idea as they were before. Concern about immigration varies regionally. But in many Congressional districts around the country, the prospect of intense opposition carries with it the threat of a primary challenger if Republican lawmakers stray too far from hawkish orthodoxy on the issue.
“The people who are coming across the border — as far as I’m concerned, they are common criminals,” said Bill Storey, 68, a retired civil engineer from Greenville. “We should not adopt policies to reward them for coming into this country illegally. I have all the regard for them in the world if they come through the legal system, but not the illegal system.”
Charlie Newton, a construction worker in the Greenville area, praised the work ethic of Hispanic co-workers, but said he opposes any laws that would provide benefits to illegal immigrants, including help becoming citizens.
“I think we need to help our own people before we keep helping somebody else,” he said.
The president’s proposals are expected to include more border enforcement, work site verification systems that allow employers to check the status of their employees online, and a road map to citizenship for the estimated 11 million illegal immigrants now living in the country. Democratic senators could begin work on a bill in the next couple of weeks.
In the Fourth Congressional District in South Carolina, which includes Greenville, the formal arrival of such a plan is likely to anger the constituents of Trey Gowdy, a Republican House member who was elected in the 2010 Tea Party wave and is now the chairman of a key subcommittee that will deal with immigration.
Mr. Gowdy has already taken a hard line, signing on last year to the “Prohibiting Backdoor Amnesty Act,” which aimed to reverse Mr. Obama’s plans to delay deportations for some young illegal immigrants. The congressman will be under pressure to change his mind from the White House and its allies, including groups like the U.S. Chamber of Commerce. But when he goes home to Greenville, Mr. Gowdy may find that his constituents want him to hold firm in his opposition.
“If you had to go find the heartburn, you’d find it in Greenville,” said Katon Dawson, a former chairman of the Republican Party in South Carolina. Mr. Dawson, who supports comprehensive immigration changes, said the matter was likely to become a hot-button issue again, as it was in 2006 and 2007.
“All I’d ever hear is, ‘Why don’t you enforce the laws that we already have?’ And then I’d hear, ‘Why don’t you just build the fence?’ ” Mr. Dawson said, describing the comments he expects to hear again during the immigration debate.
Mr. Gowdy referred questions about the immigration debate to the Republican chairman of the House Judiciary Committee, Representative Robert W. Goodlatte of Virginia. But veterans of South Carolina politics say the reaction in his district, and others like it across the country, will help determine the fate of the national legislation.
Bruce Bannister, the Republican majority leader of the South Carolina House of Representatives, said much of that response will depend on how the White House and its allies in Washington frame the debate.
“The amnesty provisions that got everybody fired up — I think you’re not going to see states like South Carolina ever support that, even though we recognize that shipping or sending home all the folks that came here illegally is almost impossible,” Mr. Bannister, who represents Greenville, said.
Josh Kimbrall, a conservative radio talk show host in South Carolina, agrees with Mr. Bannister. Mr. Kimbrall supports immigration law changes, but says Republicans like Mr. Bush and Mr. McCain allowed their effort in 2007 to be portrayed in a bad light by opponents.
“It’s how you message it,” Mr. Kimbrall said. “In Greenville, it’s the rule of law. As soon as the word amnesty is thrown in, very few people are willing to go along.”
INDIA LOWERS BENCHMARK INTEREST RATE TO FUEL GROWTH

[Bond and stock markets were largely unmoved as dealers had already priced in a quarter-percentage-point rate cut. The 10-year bond yield was flat at about 7.87 percent. India’s main NSE index was also flat, with the bank sub-index up 0.2 percent, paring initial stronger gains.]
By Reuters
MUMBAI — India’s central bank lowered its key policy rate on Tuesday, as expected, for the first time in nine months to support an economy that is poised for its slowest growth in a decade, but signaled there was less room for aggressive cuts because of concerns over inflation.
The Reserve Bank of India cut its benchmark rate by 0.25 of a percentage point to 7.75 percent, in line with a Reuters poll this month.
The central bank unexpectedly also reduced the cash reserve ratio, the share of deposits banks must keep with the central bank, by 0.25 of a percentage point to 4 percent, which will pump an additional 180 billion rupees, or $3.3 billion, into the banking system.
India’s headline inflation rate moderated to a three-year low of 7.18 percent in December, and the central bank said there was likelihood that inflation would remain around current levels heading into the 2013-14 fiscal year, which starts in April.
“This provides space, albeit limited, for monetary policy to give greater emphasis to growth risks,” the central bank said in its quarterly monetary policy review.
Bond and stock markets were largely unmoved as dealers had already priced in a quarter-percentage-point rate cut. The 10-year bond yield was flat at about 7.87 percent. India’s main NSE index was also flat, with the bank sub-index up 0.2 percent, paring initial stronger gains.
The Indian rupee strengthened to 53.79 to the dollar from about 53.84 before the decision.
“RBI has not abandoned its cautious stance, stressing on the ‘calibrated and limited’ nature of rate support,” said Radhika Rao, an economist at Forecast Pte in Singapore. “The scale of rate cuts is closely tied to the government’s sustained efforts to correct the twin imbalances and moderating inflation trajectory.”
The central bank, however, reiterated its concerns over a bloated fiscal and current account deficits, adding that its pro-growth stance would be conditioned by the management of the risks posed by them.
“Financing the CAD with increasingly risky and volatile flows increases the economy’s vulnerability to sudden shifts in risk appetite and liquidity preference, potentially threatening macroeconomic and exchange rate stability,” the bank said, referring to the current account deficit.
Since a 0.5 percentage point cut in April, the central bank had kept interest rates on hold as inflation stayed stubbornly high, ignoring repeated calls from the government for a cut.
Having grown at near-double-digit pace before the Lehman Brothers crisis, the economy has suffered a rapid deceleration.
The central bank cut its G.D.P. growth forecast for Asia’s third-largest economy to 5.5 percent for the current fiscal year, from 5.8 percent previously, and lowered its projection for headline inflation in March to 6.8 percent from 7.5 percent earlier.