McConnell to Obama: Build bipartisan plan
WASHINGTON, Feb. 2 (UPI) -- Senate Minority Leader Mitch McConnell quoted some of President Barack Obama's comments on an economic stimulus package Monday, saying he agreed with him.
The president before the start Super Bowl XLIII offered his opinion of what kind of package he thought was proper to jump-start the nation's economy, McConnell told a news conference Tuesday.
"He said exactly this: 'It has no earmarks. We're going to be trimming out things that are not relevant to putting people back to work right now.' I couldn't agree with that more," McConnell said.
McConnell also said he agreed with Obama that he's reached out to Republicans because they have "some good ideas and I want to make sure those ideas are incorporated."
"Of course, that's not where we are right now," McConnell said. The House passed its version of the package without Republican support. The Senate version, scheduled to be considered this week, has drawn concern from both Republicans and Democrats, who were scheduled to meet with Obama Monday.
"I hope he can get through to them that the way to build this package is, indeed, to do it on a bipartisan basis, which doesn't mean just talking to us, but including ideas that we think would work," McConnell said.
While not tipping his hand about what amendments may be offered or what parliamentary techniques may be used, McConnell said a stimulus plan must address the housing crisis and include a provision to lower tax rates for middle-class taxpayers.
Geithner to announce financial strategies
WASHINGTON, Feb. 2 (UPI) -- The Obama administration is fine-tuning plans for financial and homeowner rescue strategies that will be unveiled next week, a U.S. Treasury official said.
The official said Treasury Secretary Timothy Geithner will outline the strategies that many expect will cost more than the original $700 billion bailout plan that was put together by the Bush administration last year, The Wall Street Journal reported Monday.
Under consideration is a two-step approach for financial firms, including a government purchase of some toxic assets and a guarantee on what it does not buy, the Journal said.
The unfinished details include deciding what the government should pay for hard-to-value assets.
The Obama administration is also preparing an announcement laying down tougher restrictions on compensation to financial firm executives.
The get-tough-on-executives stance is meant to counter the perception -- just before more spending is announced -- that executives in charge of failing financial firms are sidestepping consequences for decisions that have put the financial system in turmoil, the Journal said.
Daschle apologizes for income tax flubs
WASHINGTON, Feb. 2 (UPI) -- Tom Daschle, trying to defend his bid to become the next U.S. health and human services secretary, apologized to two key lawmakers for income his tax errors.
Also Monday, President Obama said he "absolutely" stands by his nomination of Daschle, a former Senate majority leader who represented South Dakota in the U.S. Senate.
In the letter released Monday, Daschle offered a seven-month time line account of the particulars, saying he discovered a series of errors resulting in $146,000 in back taxes for the previous three years' returns, The Washington Post reported.
"I am deeply embarrassed and disappointed by the errors that required me to amend my tax returns," he wrote to Sen. Max Baucus, D-Mont., and Sen. Charles Grassley, R-Iowa, chairman and ranking minority member, respectively, of the Senate Finance Committee. "I apologize for the errors and profoundly regret that you have had to devote time to them."
The committee, which must vote on the nomination before it can move to the full Senate, was scheduled to meet Monday and Daschle was to be available to answer questions. The letter was released to reporters overnight, the Post said.
During an appearance before reporters Monday, Obama said he "absolutely" stands behind Daschle, the Post said.
In his two-page letter, Daschle said issues around his tax filings arose during the Obama transition team's vetting process.
"During the course of those reviews, the vetting team flagged charitable contributions they felt were deducted in error," he said, referring to $15,000 worth of donations that lacked proper receipts. Questions about other items were raised as well.
Daschle said that he "remedied these issues by filing amended tax returns with full payments, including interest."
Baucus has said Daschle paid the back taxes Jan. 2, informing the committee and White House about two days later.
Ohio city warned to avoid tainted water
BELLAIRE, Ohio, Feb. 2 (UPI) -- The Bellaire, Ohio, water department is warning residents to avoid contact with tap water after hydrochloric acid was mistakenly added to the system.
Kirk Baker, superintendent of the water department water department said Monday emergency crews were at the city water treatment plant after a supplier mistakenly gave the plant hydrochloric acid instead of fluoride, WTOV-TV, Steubenville, Ohio, reported Monday.
Baker said about 40 pounds of the acid was added to the water supply by workers Sunday and the error was not noticed until Monday morning, when crews noticed the low fluoride levels.
"It looks like it was caught in time and nothing major has happened at this time," Baker said.
He said crews were working Monday to flush the entire water system.
"It could have been a serious situation we want everybody to know the guys have been great. We've been on it," Baker said. "Luckily we caught it but it's nerve racking."
The department said between 2,300 and 2,400 people were affected by the incident.
Peterson's 'ex' says engagement a stunt
BOLINGBROOK, Ill., Feb. 2 (UPI) -- A woman said to be former Bolingbrook, Ill., policeman Drew Peterson's ex-fiance says the engagement was a publicity stunt and the two were never truly engaged.
Peterson -- whose fourth wife is missing -- "had told me that his lawyer had wanted him to be in the media and wanted to propose to someone at a restaurant," Christina Raines said Monday on CBS' "The Early Show." "That's how it went down, but I would not go with it. I would not go along with it."
Raines moved out of Peterson's home last week.
She said Peterson had told her, "Well, if it comes out that I'm engaged to someone, it's not really true."
Raines's father, Ernest Raines, said his daughter, 24, and Peterson, 55, became acquainted at a Bolingbrook restaurant, and the Raineses had lived in the Chicago-area community for years. He said he wasn't happy about the situation and that his daughter "knew how I was, how I felt about it."
Christina Raines described Peterson as a "very kind" man who was a great father and never displayed any violent tendencies toward her. She declined to answer questions concerning Stacy Peterson's disappearance in October 2007, or the mystery surrounding the death of Peterson's third wife.
Christina Raines said her boyfriend told her Peterson was "not a good guy" and the ruse "is not right." She and the man were living together when she began dating Peterson. They eventually lived together at Peterson's home.
"(Her boyfriend) kind of opened up my eyes, and a lot of things made sense," she said.
