As CPAC gets under way, bloggers so far on both sides of the aisle give their take on the rift between some conservative politicians and groups who have boycotted the conference because of the presence of GOProud, a gay conservative organization.

John Cole at liberal blog Balloon Juice:

It’s kind of wild to think about it, but CPAC, which was made up of wingnuts so crazed they cheered Beck and Limbaugh as speakers the past two years, is no longer the nuttiest group of the GOP. There are even more extreme folks who don’t think CPAC is quite bigoted enough and has been too nice to the gays.

And Jim DeMint, tea party extraordinaire, is the leader of thew new wing.

And conservative blogger Erick Erickson at RedState said that he is breaking his silence on the divide because GOProud co-founder and board chairman Christopher Barron criticized the conservative think tank Heritage Foundation, which dropped out of the confab because of GOProud’s participation.

In an interview with Metro Weekly, Barron said of Heritage:

”They’ve chosen to – and it’s a mystery to me why – but they’ve chosen to align themselves with the losers.”

Erickson:

I have done my best to stay out of this business, keep my mouth shut, and appreciate my friends on both sides of the CPAC divide. Had I not seen this particular attack by GOProud against long time solid conservatives I’d continue keeping my mouth shut. But this is too much. And my guess is that there aren’t many if any willing to call foul, so I will do it.

As someone who spent time trying to give them the benefit of the doubt, I accept this as conclusive proof that, while it is a Republican organization, GOProud is not a conservative organization.

Those groups and people who have sat out CPAC this year have done so not because they hate the gays, as Grover Norquist and GOProud would have you believe, but because GOProud is not a conservative organization and its agenda is not a conservative agenda.

For that, they are called losers and nasty bigots.

These losers and nasty bigots have done a lot more for the conservative movement than GOProud. And I am very happy to call them my friends.

This week, I’d much rather be with them than be at CPAC.

Move over Kay Bailey Hutchison, Kent Conrad, Joe Lieberman, and Jim Webb. The latest U.S. senator to announce that he/she won't run for re-election in 2012: Arizona Sen. Jon Kyl (R).

NBC News has confirmed through sources that Kyl, the No. 2 in the GOP Senate leadership, will announce his retirement at a press conference today from Phoenix.

The Arizona Republic adds:

Kyl was first elected to the Senate in 1994. Early in his Senate career, Kyl generally was overshadowed by the better known and more senior Sen. John McCain, his GOP colleague from Arizona who was emerging as a major national figure. But as Senate minority whip, Kyl is the No. 2 Republican senator and one of the highest-ranking Arizonans to ever serve on Capitol Hill.

Developing: Two separate sources source inside Egyptian President Hosni Mubarak's office are telling NBC News that tonight is the decisive night and that Mubarak will step down.

Omar Suleiman would take over as president, per these sources.

"Slow ride, take it easy" describes 2012 GOP presidential field so far… That said, CPAC gets underway today with speeches by Bachmann (9:15 am ET), Newt (12:30 pm), Santorum (2:00 pm), and Rand Paul (3:45 pm)… What to watch at CPAC… The libertarian-vs.-social conservative drama at the confab… And the straw poll… Obama heads to Michigan, where he speaks and unveils wireless plan at 1:30 pm… Boy, that escalated quickly, Christopher Lee… Why Democrats -- if they find the right candidate -- can still win Webb’s Senate seat… And don’t forget: George Allen won’t be able to avoid a Tea Party primary like Bob McDonnell was.

From Chuck Todd, Mark Murray, Domenico Montanaro, and Ali Weinberg
*** Slow ride, take it easy: It’s striking to think that four years ago to this very day, Barack Obama announced his presidential bid in Springfield, IL. And it’s equally striking when you consider -- as some potential GOP White House aspirants begin speaking today at the Conservative Political Action Conference -- that only one Republican so far has even formed an exploratory committee: Herman Cain. Indeed, at this same point in the ’08 cycle, these 17 candidates had either already declared their candidacy or formed an official committee to LEGALLY begin raising money: Biden (Jan. 7, 2007), Brownback (Jan. 20), Clinton (Jan. 20), Dodd (Jan. 11), Edwards (Dec. 28, 2006), Gilmore (Jan. 9), Giuliani (Nov. 20, 2006), Huckabee (Jan. 28), Hunter (Oct. 30, 2006), Kucinich (Dec. 12, 2006), McCain (Nov. 16), Obama (Feb. 10), Paul (Jan. 11), Richardson (Jan. 21), Romney (Jan. 3), Tancredo (Jan. 16), and Vilsack (Nov. 9, 2006). As a matter of fact, the first person to drop out of the race -- Vilsack -- would do so on Feb. 23.

*** CPAC’s line up: But the slow start to the GOP presidential race won’t stop the attention at CPAC; in fact, in a way, it only intensifies it. Two potential presidentials speak today, Newt Gingrich (12:30 pm ET) and Rick Santorum (2:00 pm ET), as the rest of the day appears to be an homage to the Tea Party with speeches by Reps. Michele Bachmann, whose staffers want treated as a potential presidential, (9:15 am), Kristi Noem (11:15 am) and Raul Labrador (11:45 am), and Sen. Rand Paul (3:45 pm). Tomorrow, we’ll see Romney (10:30 am), John Thune (1:30 pm), Tim Pawlenty (3:00 pm), Ron Paul (3:30 pm), Cain (4:30 pm), and Mitch Daniels (7:30 pm). And on Saturday, Haley Barbour (9:30 am) will be the main draw. The no-shows are Sarah Palin, who skipped last year’s CPAC, and Mike Huckabee.

*** What to watch: To us, the biggest storyline at CPAC is the reception that Romney and Barbour get. Can both men be acceptable to the conservative base without losing their establishment credentials? And is being part of the establishment still the drawback that it was in 2010? There's Mitch Daniels: Does he try out his "truce on social issues" line to the crowd and see if he gets booed? Another question we have: What kind of reception does Senate Minority Leader Mitch McConnell (who speaks at noon ET today) get? And are there any subtle shots at Palin or attempts to distinguish themselves from her? Earlier, Santorum knocked Palin for skipping CPAC. “I have a feeling that she has some demands on her time, and a lot of them have financial benefit attached to them,” he said, adding: “I don’t live in Alaska and I’m not the mother to all these kids and I don’t have other responsibilities that she has." Well, Palin fired back on FOX: “I think the reports were much worse than what he really said. I think some things were really taken out of context. So I will not call him the knuckle-dragging neanderthal that perhaps others would want to call him. I’ll let his wife call him that instead.” Ouch. http://politi.co/fJKfOs and http://bit.ly/f3mRTe

*** CPAC drama: It’s also worth pointing out that this year's CPAC has attracted additional scrutiny as some prominent conservative groups (like the Heritage Foundation, the Family Research Council, and Concerned Women for America) and some conservative politicians (like Sen. Jim DeMint and Ohio Rep. Jim Jordan) are skipping the confab, in part, because of the inclusion of a gay Republican group, GOProud. The drama is reflective of the libertarian-social conservative split inside the conservative movement and the Republican Party. Conservatives believe the media over-dramatizes splits inside their tent, but this mini-kerfuffle was self-inflicted.

*** And the straw poll: As far as the CPAC straw poll, the results of which will be announced on Saturday at 5:15 pm ET, 15 Republicans are on the ballot: Bachmann, Barbour, Cain, Chris Christie, Daniels, Gingrich, Huckabee, Jon Huntsman, Gary Johnson, Palin, Paul, Pawlenty, Romney, Santorum, and Thune. Romney won the CPAC straw poll in 2007, 2008, and 2009, and Paul won it last year. Per Politico’s Ben Smith, Paul might win it again this year -- given the word that his camp has purchased 1,000 tickets to the conference.

*** “After you… No, you first”: While the battle for the 2012 GOP presidential nomination hasn’t yet begun, both the Obama White House and congressional Republicans are already in 2012 general-election mode. Why? Because underneath all the happy talk yesterday of finding “common ground,” neither side wants to do anything big, especially when it comes to cutting spending. For example, conservative rock star Marco Rubio was quoted as saying that he wants to tackle Medicare and Social Security, but is looking for “the right” presidential leadership on the matter. So Republicans are saying, “This will take presidential leadership,” while the White House is saying, “Let’s see plans from their side.” And the Obama White House is playing down the idea they'll unveil any bold deficit reduction or government reorganization plans with their budget next week. Bottom line as we head into next year: The status quo benefits both Obama and congressional Republicans, and neither side sees any reason to unveil something BIG only to become a target. It's another form of bipartisan gridlock. Say big things, talk a big game, then simply run the ball up the middle three times and punt.

*** Obama to Michigan: Today, the president travels to Marquette, MI, where he “will see a demonstration of how Northern Michigan University’s WiMAX network has enabled distance learning for university and community students,” the White House says. Then, at 1:30 pm ET, Obama will deliver remarks “on the National Wireless Initiative at Northern Michigan University.”  

*** Boy, that escalated quickly: Yesterday, we wrote that House Republicans were off to a shaky start in the majority (bad vote-counting in the House, message stumbles, etc.). And they had this additional news to deal with last night: “A married congressman from upstate New York” -- Republican Christopher Lee -- “resigned suddenly Wednesday after a scandal erupted over emails and a shirtless photo supposedly sent to a woman in response to a Craigslist dating ad.” You have to give credit, however, to how quickly Boehner, et al dealt with Lee. Within hours of the news breaking, Lee had resigned his post, effective immediately. It's similar to how fast Boehner convinced Mark Souder to bolt. And it’s a marked contrast to what happened after the news about David Vitter (who won re-election last year) and John Ensign (who’s still in the Senate) dropped.  http://on.msnbc.com/gZnku7

*** Virginia isn’t Indiana: The news yesterday the Sen. Jim Webb (D) wouldn't seek another term wasn't surprising -- given that Webb is probably too restless of a soul to want to spend another six years in the world's greatest deliberative body. But what was surprising was some of the commentary now writing off the seat for Democrats. Make no mistake: National Dems would have preferred Webb to run for re-election, and there's a real chance that George Allen (R) can win back the seat. But as Mark Warner, Tim Kaine, Webb, and Obama have proved, a good Democratic candidate can win statewide in Virginia. The task for the DSCC will be finding that candidate. (Can the White House push Kaine into the race? If not, who's Plan B? Tom Perriello? Don't forget, in the spring/summer of 2006, there weren't many who considered Webb a serious candidate. And remember this: Virginia isn’t Indiana; Allen isn’t John Hoeven; and 2012 isn’t 2010.

*** Allen’s primary: There's another thing to remember: Allen has a real primary on his hands against Tea Party leader Jamie Radtke (R). In 2009, Bob McDonnell benefited from NOT having a primary challenge, which allowed him to move to the middle after getting in the race. Allen won’t have that same luxury…

Countdown Chicago’s mayoral election: 12 days
Countdown to Election Day 2011: 271 days
Countdown to the Iowa caucuses: 361 days
* Note: When the IA caucuses take place depends on whether other states move up

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Politico: "More than 11,000 conservative activists will gather Thursday in Washington to weigh in on battles over the Republican party’s presidential nomination and the values of the conservative movement itself. For a movement that’s at a moment of ascendancy, however, it won’t always be pretty. The 38th Annual Conservative Political Action Conference offers a glimpse at the ferment roiling a vibrant conservative movement that’s at war with itself over the place of social issues – particularly gay rights – in its portfolio, and the tension between principle and inclusion. There’s also a presidential candidate to pick for 2012, and no less than eight potential contenders will show up to audition, in what has emerged as the first big event of the cycle (even though it will be minus Sarah Palin and Mike Huckabee)."

And it offers five things to watch: the 2012 presidential field, the straw poll, "schism city," the tea party takeover, and Obama's role.

The Washington Post: "A wide field of Republican potential presidential hopefuls will descend on Washington on Thursday for the conservative movement's biggest annual party, where they will navigate the tussle for attention between social conservatives and newly empowered tea party activists. A year out from the Iowa caucuses, the 2011 Conservative Political Action Conference is widely viewed, as it is every four years, as a forum for presidential message-testing. This year, following the growth of the tea party movement and the huge gains Republicans made last year by focusing on economic issues, would-be candidates almost certainly will try to prove their credentials as fiscal conservatives who are ready to cut government and taxes, reduce the deficit and ease the burden of regulations on free enterprise."

The L.A. Times: "A dozen potential GOP presidential candidates will address the nation's largest annual conservative gathering this week, opening a window into the likely influence of the 'tea party' in choosing President Obama's 2012 opponent."

The Hill: "One of the biggest annual conservative gatherings opens in Washington on Thursday amid lingering controversy over the participation of a gay-rights group and hopes of momentum for close to a dozen possible White House candidates."

Sarah Palin yesterday hit back at Rick Santorum (R-PA) for his shot at her for not showing up to CPAC. “I will not call him the knuckle-dragging Neanderthal,” Palin told FOX. “I'll let his wife call him that instead.”

A controversy over the invitation of a conservative gay-rights group sets the backdrop at CPAC, but the group is brushing aside the controversy. "The truth is that it's five boycotters and 10,000 people who are attending the conference, so we're celebrating the 10,000 people and not the five who are boycotting," GOProud Board Chairman Chris Barron told RealClearPolitics. "It would be a little like us announcing we were boycotting the DNC, even though we never participating in it. Most of the organizations speaking out weren't CPAC sponsors last year, so who the hell cares if they're boycotting, quite frankly?"

James C. Miller and Penny Nance, on the other hand, pen a Politico op-ed suggesting that the inclusion of GOProud hurts the conservative movement. "The attack on social conservatives centers on their honorable defense of marriage as the union of one man and one woman. Social conservatives rightly believe that marriage and family are two of the foundational cornerstones of American society — on which we as Americans have built a country that is the envy of the world."

Channeling what we wrote in First Thoughts yesterday, the New York Times says, “Under pressure to make deeper spending cuts and blindsided by embarrassing floor defeats, House Republican leaders are quickly discovering the limits of control over their ideologically driven and independent-minded new majority.” More: “For the second consecutive day, House Republicans on Wednesday lost a floor vote due to a mini-revolt, this time over a plan to demand a repayment from the United Nations. Earlier in the day, members of the party’s conservative bloc used a closed-door party meeting to push the leadership to go well beyond its plans to trim about $40 billion from domestic spending and foreign aid this year, demanding $100 billion or more.”

"[T]he Tea Party caucus is giving those leaders a bit of their own shellacking," the Boston Globe writes of House GOP unity. "First, the Tea Party contingent insisted on delivering its own Republican response to Obama’s State of the Union speech. Then, it urged far bigger budget cuts than Republican leaders have proposed. And on Tuesday night, in a particularly embarrassing step, at least seven Tea Party-backed members joined with Democrats to defeat an extension of several provisions of the Patriot Act. The libertarian-minded lawmakers voted against the extensions on grounds that the act, which gives federal authorities extra power to monitor people, smacks of big government. Although the Tea Party-backed members were not the only Republicans to vote with Democrats, they represented the margin of defeat."

Rep. Chris "Lee’s resignation is the latest in a series of problems that have beset the new House GOP majority since it took control last month," Roll Call writes. "On the first day of the 112th Congress, National Republican Congressional Committee Chairman Pete Sessions (Texas) and Rep. Mike Fitzpatrick (R-Pa.) missed the official swearing-in in order to attend an event with donors. Then Majority Leader Eric Cantor (R-Va.) was forced on Tuesday to pull a trade bill off the floor after conservative opposition grew so intense that it was clear the measure would have failed. That evening, conservatives and progressive Democrats came together to defeat an extension of the USA PATRIOT Act. Republicans were handed yet another legislative defeat Wednesday, when one of Cantor’s signature YouCut spending reduction bills was defeated."

There will be a special election for his suburban Buffalo/Rochester, NY, seat. "Once New York Gov. Andrew Cuomo formally declares Lee’s seat vacant, a special election must be held within 30 to 40 days, according to state election law," Roll Call writes.

The Buffalo News: "Lee resigns from Congress over Craigslist scandal." The paper writes, "Lee's resignation brought an astonishingly rapid end to a two-year, two-month congressional career that at one point seemed potentially limitless."

The Washington Post: "President Obama is to unveil a plan Thursday to bring wireless high-speed Internet access to all Americans, a goal the administration says is key to the country's ability to compete globally in the years to come. In an afternoon speech at Northern Michigan University in Marquette, Obama is to explain how he plans to bring mobile broadband connections to 98 percent of the American people in five years, a goal announced last month during his State of the Union address."

“Indiana Gov. Mitch Daniels boasts that he would turn heads with his fundraising firepower and roster of big- name GOP supporters if he jumps into the 2012 presidential race,” Politico writes. ‘If I were to decide to do this, we would have an unbelievable letterhead,’ Daniels predicted… Daniels suggested three things could keep him from plunging in: his wife’s concerns, the calculation that his party or the country aren’t ready for his tough-love message or the emergence of another capable candidate.”

The Conservative Political Action Conference, or CPAC, kicks off tomorrow in Washington.

First Read's obtained a copy of the final version of the straw poll. There are 15 potential GOP candidates listed. But in addition to the straw poll line, which garners most of the attention (more on that below) -- Ron Paul, by the way, won last year -- there are some other interesting questions, like, for example:

4.    Would you say that you are generally satisfied with the names that have been floated as potential Republican Presidential contenders for 2012 or do you wish the Republican Party had a better field of potential candidates?

Plus, there are questions of the group's priorities, as well as its level of confidence in Republicans to be able to "Repeal Obamacare," "Reign in Federal Spending," "Cut Federal Taxes," "Reduce Government Regulations," and "Pay Down the National Debt."
 

You can read the full poll, being conducted by GOP pollster Fabrizio-McLaughlin, in a PDF document here or below:

Fabrizio, McLaughlin & Associates

WASHINGTON TIMES/CPAC Straw Poll

FEBRUARY 10 - 12, 2011

Thank you for taking a moment to fill out this brief questionnaire for the organizing committee of CPAC.  Your personal responses to these questions will remain anonymous & the results will be released at a national press briefing on Saturday.

Circle your responses to each question.  Please answer the questions on both front & back.

1.    Type of CPAC Registrant:

1.    Individual

2.    Associated with CPAC Participating Organization

3.    CPAC Participating Organization

4.    Student

2.      Thinking ahead to the 2012 Presidential election, who would you vote for as your FIRST CHOICE to be the next Republican nominee for President?

1. Michele Bachmann, MN Representative    2. Haley Barbour, MS Governor

3. Herman Cain, Former Godfather Pizza CEO    4. Chris Christie, NJ Governor

5. Mitch Daniels, IN Governor     6. Newt Gingrich, Former House Speaker

7. Mike Huckabee, Former AR Governor     8. Jon Huntsman, Former UT Governor

9. Gary Johnson, Former NM Governor     10. Sarah Palin, Former AK Governor    

11. Ron Paul, TX Representative     12. Tim Pawlenty, Former MN Governor

13. Mitt Romney, Former MA Governor    14. Rick Santorum, Former PA Senator

15. John Thune, SD Senator     16.  Other _______________________

17. Undecided

3.      Now from the SAME list, who would you vote for as your SECOND CHOICE to be the next Republican nominee for President?

1. Michele Bachmann, MN Representative    2. Haley Barbour, MS Governor

3. Herman Cain, Former Godfather Pizza CEO    4. Chris Christie, NJ Governor

5. Mitch Daniels, IN Governor     6. Newt Gingrich, Former House Speaker

7. Mike Huckabee, Former AR Governor     8. Jon Huntsman, Former UT Governor

9. Gary Johnson, Former NM Governor     10. Sarah Palin, Former AK Governor    

11. Ron Paul, TX Representative     12. Tim Pawlenty, Former MN Governor

13. Mitt Romney, Former MA Governor    14. Rick Santorum, Former PA Senator

15. John Thune, SD Senator     16.  Other _______________________

17. Undecided

4.    Would you say that you are generally satisfied with the names that have been floated as potential Republican Presidential contenders for 2012 or do you wish the Republican Party had a better field of potential candidates?

    1.    Generally satisfied with the field of potential candidates

    2.    Wish the GOP had a better field of potential candidates

5.    Which ONE of the following comes closest to your core beliefs and ideology?

1.    My most important goal is to promote individual freedom by reducing the size and scope of government and its intrusion into the lives of its citizens.

2.    My most important goal is to promote traditional values by protecting traditional marriage and protecting the life of the unborn.

3.    My most important goal is to secure and guarantee American safety at home and abroad regardless of the cost or the size of government.

6.    Which of the following issues is MOST IMPORTANT to you personally?

    1.  Illegal Immigration                2.  The War in Iraq

    3.  The War on Terrorism            4.  Reforming Social Security

    5.  Lowering Taxes                6.  Reducing Government Spending

    7.  Improving Education                8.  Reducing Health Care Costs

    9.  Reducing size of Federal Government    10.Restoring Honesty to Government   

    11. Doing Away with Abortion            12.Protecting Traditional Marriage    

    13. Stimulating the Economy to Create Jobs    14. Promoting Traditional Values

    15. Protecting Gun Owners’ Rights        16. Other____________________

7.    EXCLUDING YOUR FIRST CHOICE, which of the following issues is SECOND MOST IMPORTANT to you personally?

    1.  Illegal Immigration                2.  The War in Iraq

    3.  The War on Terrorism            4.  Reforming Social Security

    5.  Lowering Taxes                6.  Reducing Government Spending

    7.  Improving Education                8.  Reducing Health Care Costs

    9.  Reducing size of Federal Government    10.Restoring Honesty to Government   

    11. Doing Away with Abortion            12.Protecting Traditional Marriage    

    13. Stimulating the Economy to Create Jobs    14. Promoting Traditional Values

    15. Protecting Gun Owners’ Rights        16. Other____________________

8.    In your opinion, which of the following should be done to reduce the federal debt?

1.    Raising Taxes

2.    Cutting Spending

3.    Combination of Raising Taxes and Cutting Spending

Do you think that the Republicans in Congress will be able to accomplish the following ….?

         Yes    No    9.   Repeal Obamacare        1    2    10. Reign in Federal Spending        1    2 11. Cut Federal Taxes        1    2 12. Reduce Government Regulations    1    2 13. Pay Down the National Debt        1    2

14.    What is your age?            15.    What is your gender?

1.    Under 18               

18 – 25                    1.    Male

26 – 40                    2.    Female

41 – 55           

56 – 65               

Republican Rep. Christopher Lee of New York resigned Wednesday, merely hours after a gossip site reported that the married congressman sent a shirtless photo of himself to a woman he contacted through website Craigslist.com.

On Wednesday afternoon, Gawker.com posted the photo and emails exchanged between Lee, 46, and an unnamed woman who placed an ad on the site’s “Women for Men” personals section.

In the emails to the 34-year-old Maryland woman, Lee - who is married with one son - identified himself as a divorced lobbyist and a “fit fun classy guy,” the site reported. He also said he was 39 years old.

Just hours after the story broke, Lee announced his resignation, effective immediately. A clerk read his letter of resignation on the House floor.

"I regret the harm that my actions have caused my family, my staff and my constituents," Lee said in a statement. "I deeply and sincerely apologize to them all. I have made profound mistakes and I promise to work as hard as I can to seek their forgiveness."

A spokesman for House Speaker John Boehner told NBC News that it was Lee's decision to resign.

His exit triggers a special election, which Democratic Gov. Andrew Cuomo must call. Lee was first elected in 2008 with 55 percent of the vote, and GOP presidential candidate John McCain won the district - New York's 26th - in 2008 with 52 percent.

NBC's Domenico Montanaro and Shawna Thomas contributed.

From NBC's Ali Weinberg
Treasury Secretary Tim Geithner and Sen. Orrin Hatch (R-UT) gave similar prescriptions for reforming the tax code, but laid responsibility for implementing those changes with two different branches of government.

Speaking separately at an event held by the Atlantic magazine, both Geithner and Hatch said the top rate at which corporations are taxed should be reduced from 35% to 25%. They differed, however, on measures that would accompany any changes to the tax code.

Geithner said that while he could support cutting the corporate tax, businesses wouldn't get further tax cuts - something CEOs have been pushing for.

"We're not going to ask Americans to pay higher taxes so we can lower taxes on businesses, and we don't have unlimited resources in the country," Geithner told moderator Judy Woodruff of PBS' "NewsHour."

Geithner said the executive branch would not be spearheading efforts to change the tax code. For example, President Obama's fiscal 2012 budget will not contain specific policy recommendations on taxes. Geithner suggested that the administration will rely on Congress to lead on chances to the tax code.

"We're now in the process of trying to shape consensus among the key people in Congress, both Republicans and Democrats, and among the broad cross section of the business community that's going to be so affected by this," Geithner said.

Sen. Hatch, however, cited past precedent when he said members of Congress should look to the president for leadership on significant issues like simplifying the tax code.

"Frankly, we've won battles by great presidential leadership: Reagan, Bush One, Bush Two and even my friend Bill Clinton. He did some remarkable things," Hatch said. 

Like Geithner, Hatch cited lowering the corporate tax rate as a way to make doing business in America easier but added that the government should preserve some "reasonable" tax expenditures, which are tax breaks, credits and subsidies that are written into the tax code.

He also urged Republicans to stick to their fiscally conservative guns, lamenting those who he called the "three to six moderate to liberal Republicans who will go on Democrats with spending issues."

When Woodruff asked Hatch how many Republican moderates were left in Congress, Hatch seemed to give a nod to the conservative Tea Party movement which ousted his fellow Utah senator Robert Bennett in the last midterm elections, and which Hatch is courting to avoid the same fate as his colleague in 2012.

"They're diminishing right now," Hatch said of Republican moderates. "We hope we can diminish a few more - not by losing them, keeping the ones we have but by expanding and getting more fiscal conservatives. We don't need nuts in the United States Senate, we need fiscal conservatives."

From NBC's Shawna Thomas
The House finished voting on another "suspension" bill, which means it needs a two-thirds majority of voting members to pass, and it failed. Only two Republicans voted against it, and 26 Dems voted for it, so while this isn't an example of Republican infighting, it is an example of the majority party not quite counting their votes correctly. It's, well, embarrassing. 

Final Vote Tally YEA-259 NAY-169 PRESENT-0 NOT VOTING-6

(This bill needed 284 votes to pass.)

This bill, while not as sexy as last night's vote, was part of the GOP's much touted YouCut program, where they ask the public, what you would like to see cut from federal spending. HR 519 would basically instruct the United Nations to give the excess money the U.S. contributed to a specific fund back and ask the Secretary of State to withhold funds from this program until the U.S. had gotten its money back. 

It was described on the YouCut Web site like so:

Obtain Refund of Funds Owed to the U.S. by the U.N. Tax Equalization Fund
Approximate $180 million in one time savings

As of December 31, 2009, the United Nations reported that it was holding almost $180 million that the U.S. had overpaid into the U.N.'s Tax Equalization Fund (TEF). It appears that the U.N. is still holding the U.S. funds because the Administration has not instructed the U.N. on how it wishes to dispose of them. By instructing the U.N. to return those funds to the U.S. we can generate savings for American taxpayers. In addition, the Administration should also demand that the process for Tax Equalization Fund withholdings be revised to prevent (or at least reduce) future discrepancies leading to such large surpluses.

However, the Congressional Budget Office scored this bill and wrote, "CBO estimates that implementing H.R. 519 would have no effect on the federal budget. Enacting H.R. 519 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. The bill would establish a new policy to direct the United Nations (U.N.) to return $179 million that the United States overpaid to the U.N. as well as any similar over-payments in future years."

And one Democratic member, according to The Hill newspaper said: "It's stupid," he said. "Vote 'no' on stupid."

From NBC's Pete Williams
What's the point, asks Virginia's attorney general, of letting the federal appeals courts chew over the constitutionality of the health care law when only the U.S. Supreme Court can decide whether it's willing to expand the powers of Congress?

That's the question at the heart of an unusual request filed Wednesday by Virginia, asking the Supreme Court to bypass the appeals courts and take up a review of the health care law as soon as possible. The Supreme Court grants such requests exceedingly rarely, and one justice signaled just last week that she would resist such a move.

The Justice Department has already indicated it will oppose this request.

Ken Cuccinelli (R), Virginia's attorney general, argues that this is the kind of case the justices should take up, because conflicting district-court decisions about the constitutionality of the health-care law have left states and businesses unsure about which requirements, if any, will survive the legal battle.

"States, citizens, and the economy remain mired in uncertainty," he says in his court filing. "Citizens and businesses are widely believed to be reducing spending and delaying hiring in response to the overhand of uncertainty."

Allowing lawsuits filed by Virginia and other states to take their normal course through the appeals courts "will not further focus the controlling issues," Cuccinelli writes. "It is not clear to what extent the courts of appeal are even entitled to engage in independent legal development in the face of binding precedent" from the Supreme Court.

Some aspects of his court filing lean more on political arguments than legal ones.  He says, for example, that the health care law "has roiled America. The party that unanimously opposed" the law in the House "has just seen its largest electoral gains in over seventy years."

At a public forum in Washington last week, Supreme Court Justice Ruth Bader Ginsburg suggested that she, for one, would look unfavorably on an attempt to bypass the appeals courts. Asked about the practice in general, but reminded that the health care issue was coming, Ginsburg said of the appeals process, "In most cases, travel is rather slow.  And one reason that that's good is by the time that the case comes to the Supreme Court, other courts have considered the issue.

"We will get a range of views, we will get good minds on federal courts of appeals, district courts, giving their best interpretation of the Constitution as it applies to this particular law. So, we do so much better when we have the views of other federal judges who are certainly no less qualified then we are," Justice Ginsburg said.

From NBC's Lauren Stephenson
Besides adding author to his list of achievements, former Defense Secretary Donald Rumsfeld will soon be able to add another title: Hall of Honor inductee and Alumni Achievement award recipient at New Trier High School in Winnetka, IL. 

The award has caused controversy. Some alumni, current students, and faculty have voiced their disappointment with the high school's decision to honor Rumsfeld. “He is a liar and war monger,” wrote one woman on the “New Trier Alumni Against Rumsfeld’s ‘Achievement Award’” Facebook page. However, the school cites Rumsfeld’s 50 years of public service and his philanthropic contributions through the Rumsfeld Foundation.

But maybe the bigger controversy? Local newspapers have focused on what some consider a snub to Rahm Emanuel, the former White House chief of staff and current Chicago mayoral candidate who happens to be another famous alum of New Trier. “New Trier hall of fame: Rumsfeld in, Rahm Out,” wrote the Chicago Sun-Times. The Huffington Post's Chicago page put it more bluntly: “Rahm Emanuel Loses New Trier Popularity Contest: Left Out of School’s Hall of Fame.”

According to Nicole Dizon, New Trier's communications director, a committee consisting of alumni, administrators, faculty, and a student conducted the “very thoughtful” selection process that included nearly 90 nominees. She added, “People are trying to make it seem like a competition, one person against another. This was more of an individual process. There were many notable alumni who were not nominated.”

When asked if Emanuel was nominated, Dizon said the list of nominees is not available since “nominations are active for five years.” This means if Emanuel was nominated, he would automatically be considered for the award for the next four years. 

As it turns out, Rumsfeld will be unable to attend the first-ever New Trier Hall of Honor induction and the Educational Foundation's Alumni Achievement award dinner on March 22, since he will be on his book tour. However, Dizon says he expressed his gratitude and appreciation for the award and spoke highly of his time as a student.

“We are hopeful he will be able to come to the school and speak to students," Dizon said. "He has indicated interest.”

Note: Stephenson is a graduate of New Trier High School.

With the news that Sen. Jim Webb (D) won't seek re-election, Republicans now have a clear path to taking back the majority in 2012.

Right now, Democrats hold a 53-47 majority in the chamber. So Republicans would need to net a pick-up of three Senate seats if the Democrats don't hold on to the White House. If they do, then Republicans would need to net four Senate seats.

Well, here are the four:
1). North Dakota, where Sen. Kent Conrad (D) is retiring. Republicans don't have a clear candidate here, but they have a solid chance of picking up the seat.

2) Nebraska, where Sen. Ben Nelson (D) appears to be running for re-election. Republicans have recruited a top candidate in state Attorney General Jon Bruning (R).

3) Montana, where Sen. Jon Tester (D) is running for re-election, but Republicans have recruited Congressman Denny Rehberg (R).

4) Virginia, where Webb (D) is retiring, and Republicans have a top challenger in former Sen. George Allen (R).

Of course, this means that Republicans would almost need to run the table to take the majority -- if no more Senate seats become competitive. But the GOP path is there...

From NBC’s Luke Russert and Domenico Montanaro
After last night’s failed vote to extend provisions of the PATRIOT Act, House Speaker John Boehner (R-OH) said the GOP isn’t “going to be perfect every day,” but he blamed it on Democrats -- despite 26 members of his caucus voting against it.

"Well listen, we've been in the majority four weeks, we're not going to be perfect every day,” Boehner said. “If the Democrats who had voted for these provisions last year had voted for them this year, it would have passed. We're going to get these extensions of the PATRIOTIC Act enacted, because it's important for the safety and security of the American people."

Asked why leadership brought the bill up under suspension rules, which would require a two-thirds majority, if it didn’t have the votes, Boehner insisted the vote was there.

"It was," he said.

Another area of disagreement within the GOP caucus, particularly the Tea Party wing, is on spending. Some Tea Party-backed members – and Tea Party groups at large -- have criticized the GOP for not cutting spending enough, at least not to their proposed $100 billion promise in the “Pledge to America.”

"I have made it clear for a month now that I believe we ought to allow the House to work its will,” Boehner said. “I've been a big believer of this for the 20 years that I've been here. Now we have a chance to do it. Let's let the House make that decision. It's not about my decision, it's not about anybody else's decision. All members Democrats and Republicans ought to have a chance to involve themselves in the process of legislating and let all members represent all Americans to develop how much cutting the American people really want. I'm looking forward to debate, I'll look at the amendments, let's let the House vote on them."

Ahead of next week’s White House budget release, Boehner said the GOP will release its spending cuts bill tomorrow.

"Tomorrow, we'll unveil our budget-cutting bill to fund the government from March 4^th to Sept. 30^th, again keeping our pledge to the American people that we will cut spending,” Boehner said. “All of this will create an environment for more jobs in America."

This announcement means that tomorrow the public will be able to see which government programs specifically the GOP would propose cutting in order to bring spending down by $32 billion for the rest of fiscal year 2011.

Boehner, Majority Leader Eric Cantor (R-VA), and Majority Whip Kevin McCarthy (R-CA) will be at the White House this afternoon to have lunch with President Obama. They’re expected to talk about spending cuts among other items.

“These are the kind of issues that we are going to talk to him about,” Cantor said, “and hopefully, we can find some common ground so we can see jobs growing in this country again."

While Cantor emphasized “common ground,” McCarthy took a shot at the president.

“As the leader said, when we go down to see the president I am very hopeful,” he said. But then added to the reporters gathered, “You want be there -- the teleprompters won't be there.

“I hope we have a very frank conversation about how we are going to create jobs and cut the spending in Washington."

First Read confirms the news that Virginia Sen. Jim Webb (D) won't seek re-election next year.

He narrowly won his race in 2006, edging out incumbent Sen. George Allen. Allen has already announced he's running for his old seat.

Webb just released this statement:

It has been a great and continuing privilege to serve in the United States Senate. I am very proud of my talented and dedicated staff, which has worked tirelessly to resolve the issues on which I based my candidacy, and to protect the interests of all Virginians in this national forum. Among other contributions we have given our Post- 9/11 veterans the best GI Bill since World War Two; we have taken the lead in reforming our criminal justice system; we have led the way toward stronger relations in East and Southeast Asia; and we have been a strong voice in calling on China to act more responsibly in the world community. We will continue to work on these and other issues throughout the rest of my term.

However, after much thought and consideration I have decided to return to the private sector, where I have spent most of my professional life, and will not seek re-election in 2012.

Notwithstanding this decision, I have every intention of remaining involved in the issues that affect the well-being and the future of our country.

*** UPDATE *** With Webb not running for re-election, the speculation turns to whether DNC Chairman (and former Virginia Gov.) Tim Kaine (D) will run.

A Democratic strategist tells NBC News that just because Kaine has not indicated interest in the Senate seat doesn't mean that he won't run. (The question is whether Democratic leaders can pressure Kaine to run, and whether Kaine really wants the seat.)

Another Democratic name -- if Kaine passes -- is former Virginia Congressman Tom Perriello, who lost his bid for re-election last November.

Democrats point out that Obama won Virginia by six percentage points in 2008.

That said, without Webb or Kaine on the ballot, Democrats might have a difficult time holding on to this seat, even in the 2012 presidential year.

Tea Party defiance in defeating House legislation to extend the Patriot Act… But was the failure really surprising, and what does it mean for the debt-ceiling vote?... The House GOP’s shaky first month… Phasing out Fannie and Freddie… Michelle Obama on “TODAY”… Hatch hugs the Tea Party… Focusing on Obama’s faith… And focusing on the Iowa GOP’s very conservative electorate.

From Chuck Todd, Mark Murray, Domenico Montanaro, and Ali Weinberg
*** Tea Party defiance: In a defeat last night for House Republican leaders, legislation to extend certain Patriot Act programs was unable to get the two-thirds vote needed for passage as 26 Republicans voted no, including seven freshmen who are associated with the Tea Party. Per NBC’s Luke Russert, the vote -- 277 to 148 -- represented the first insurrection against the House GOP leadership by its freshman members since it was expected to pass easily. House Judiciary Committee Chairman Lamar Smith (R-TX) blamed Democrats for the defeat. “I am surprised that so many Democrats who supported an extension of these very same provisions last Congress suddenly changed their votes,” he said in a statement. “It’s unfortunate that partisan politics seems to have prevented so many Democrats from doing what’s best for America’s national security.” But when your party controls the House, and when 26 of your members voted against, it’s hard to pass the blame (and it was the House GOP leaders, after all, who made the decision to bring the bill to the floor under these rules). As Russert notes, had those seven Tea Party freshmen voted yes, the legislation would have passed. 

*** Was the failure really surprising? Still, House Republicans can vote again on the legislation under regular procedures that would require only a simple majority. While the legislation last night was expected to pass, we probably shouldn’t be surprised that an issue like the Patriot Act was able to unite libertarian-leaning Tea Party folks and liberals. The question for House GOP leaders -- as well as the Obama White House -- is what the vote means on future matters, such as the upcoming push to raise the debt ceiling. This was the first test of the vote-counting abilities of the House GOP leadership. And either they knew this was going to go down and wanted to make a point, or they were surprised, which means their job in keeping their caucus in line is going to be as tough as the so-called "Conventional Wisdom" crowd has been predicting. Today, at 12:30 pm ET, President Obama and Vice President Biden will have lunch with the three House GOP leaders who are responsible for rounding up their party’s votes, Speaker John Boehner, Majority Leader Eric Cantor, and Majority Whip Kevin McCarthy.

*** The House GOP’s shaky start: Although overshadowed by other events -- the Arizona shootings, Obama’s State of the Union, the unrest in Egypt -- the House GOP’s first month in power has gotten off to a shaky start. In addition to last night’s failed Patriot Act vote, a member of the House leadership (NRCC Chair Pete Sessions) didn’t show up for his original swearing in but still cast votes; House Budget Committee Chairman Paul Ryan outlined a $32 billion cut in government spending, which is lower than earlier promises; and the House GOP has been criticized for focusing more on ideological battles (the health-care law, abortion) than on the nation’s economy. The good news for the House GOP? The lack of attention to these events.  

*** Phasing out Fannie and Freddie: Here’s some news out of the White House: “More than two years after the government seized Fannie Mae and Freddie Mac, the Obama administration will recommend phasing out the housing-finance giants and gradually reducing the government's footprint in the mortgage market, according to people familiar with the matter,” the Wall Street Journal says. “The administration is expected to include three options for a post-Fannie and Freddie world when it releases a long-awaited proposal for the future of the nation's $10.6 trillion mortgage market, which could come as soon as Friday. Together with federal agencies, Fannie and Freddie have accounted for nine of 10 new loan originations in the past year.” Can the housing market handle this? How Wall Street responds to this news today could impact which plan gets emphasized. Bottom line: This is a classic trial balloon leak.

*** The first lady on “TODAY”: In an exclusive interview this morning on “TODAY,” First Lady Michelle Obama was asked about a whole host of issues. On the subject of Egypt, she declined to weigh in on policy, but said the issue was of critical importance to the White House, and the entire West Wing is focused on it. On the news she revealed yesterday that her husband has kicked his smoking habit, Mrs. Obama said, “We want him to be healthy, and he has worked hard at it.” What if he’s sneaking a drag or two? “You can tell,” she responded. And on her campaigning for her husband’s re-election, “I’m not thinking about it right now. But when it’s time to get on the road, it’s something I enjoy doing,” she said. “I will do whatever I’m asked to do.”

*** Hatch hugs the Tea Party: Just how hard is Sen. Orrin Hatch (R) trying to protect his right flank so he doesn’t meet the same fate as his former Utah colleague, Robert Bennett? Well, last night he attended the Tea Party Town Hall Meeting in D.C., along with Tea Party stalwarts like Sens. Rand Paul (R-KY) and Mike Lee (R-UT) and Reps. Michele Bachmann (R-MN) and Allen West (R-FL). At the event, Hatch called himself a Tea Partier before there was a Tea Party, NBC’s Catherine Chomiak reports. "I've been watching what the Tea Party does. I've been very impressed. I think it's time for America to take back America and the Tea Party's playing a role in that." More Hatch: "The Tea Party movement is having an imprint on America that is very good... It's a real good thing for us to see that we're finally getting people up in arms, willing to stand up, willing to do the things that can really pull this country where it really ought to be and that is a free market system without government intrusion in every step of our lives.”

*** Focusing on Obama’s faith: This FOX focus group of Iowa Republicans who watched Obama's interview with Bill O'Reilly is more evidence that no matter how many times the president talks about his Christian faith (remember he did so VERY publicly just last week), a certain segment of the population still believes -- incorrectly -- that he's a Muslim.  

*** And focusing on how conservative Iowa Republicans are: The focus group is also a reminder how conservative the GOP presidential caucuses are in the Hawkeye State. After all, there’s a reason why Pat Robertson (in 1988) and Mike Huckabee (in 2008) did better there than anywhere else, and why John McCain (in 2008) essentially skipped the contest and why Mitt Romney (in 2012) might as well. And don’t miss this quote from Iowa Sen. Chuck Grassley (R), who told Roll Call that the candidate he’ll back has to be able to win beyond Iowa. “[W]hat I'm looking at isn't just the guy that I think is the most ideal candidate to be president, because I want to know that they've got the resources, if they win Iowa, to go beyond Iowa. Too often you get people in Iowa that are just the ideal candidate, but then they can't go anyplace beyond Iowa. I want somebody that's going to be able to challenge in New Hampshire, South Carolina, Nevada." Grassley here is TRYING to begin the conversation on electability; it's a tricky line for him because what if he and Branstad both endorse the loser? Neither has the grassroots ties in the more conservative wing of the Iowa GOP.

Countdown Chicago’s mayoral election: 13 days
Countdown to Election Day 2011: 272 days
Countdown to the Iowa caucuses: 362 days
* Note: When the IA caucuses take place depends on whether other states move up

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The AP calls Obama’s lunch today with Congressional Republican leaders, “part of a concerted effort to reach out to the GOP.”

The Wall Street Journal: “More than two years after the government seized Fannie Mae and Freddie Mac, the Obama administration will recommend phasing out the housing-finance giants and gradually reducing the government's footprint in the mortgage market, according to people familiar with the matter,” the Wall Street Journal says. “The administration is expected to include three options for a post-Fannie and Freddie world when it releases a long-awaited proposal for the future of the nation's $10.6 trillion mortgage market, which could come as soon as Friday. Together with federal agencies, Fannie and Freddie have accounted for nine of 10 new loan originations in the past year.”

Per the New York Times, "President Obama is proposing to ride to the rescue of states that have borrowed billions of dollars from the federal government to continue paying unemployment benefits during the economic downturn. His plan would give the states a two-year breather before automatic tax increases would hit employers, and before states would have to start paying interest on the loans."

The Boston Globe got its hands on an uncorrected proof of Gov. Deval Patrick’s memoir. In the paper’s top story today, it reports on Patrick writing that he considered resigning in 2007 after his wife was hospitalized with depression, “that he failed the bar exam twice, and that he and his wife, Diane, were rejected — ‘blackballed,’ he says — by The Country Club, a famously exclusive retreat in Brookline. … He also delves into his friendship with the president, revealing that shortly after Obama took office as a US senator in 2005, Patrick sat on a brown leather sofa in Obama’s Washington office and scored his ‘first major political endorsement’ for governor. ‘I’m in,’ Obama told Patrick, then a little-known lawyer. ‘What do you want me to do?’”

Patrick is in Washington today after a meeting last night with Democratic National Committee Chairman Tim Kaine. The Boston Globe’s Johnson writes that the book release, his dinner with Kaine, and his “promise to travel more in promotion of the state and its businesses” means “citizens of the state are going to see him less while the citizens of the nation — and the world — see him more. … Patrick' staff wouldn't explain the dinner meeting with Kaine, but the governor has already expressed interest in campaigning on behalf of President Obama when he seeks re-election in 2012. Kaine is in charge of recruiting a squad of effective surrogate speakers, and Patrick surely qualifies.” 

“The House yesterday failed to extend the life of three surveillance tools that are key to the nation’s post-Sept. 11 antiterror law, a slipup for the new Republican leadership that miscalculated the level of opposition,” the AP writes. “Republicans brought up the bill under a special expedited procedure requiring a two-thirds majority, and the vote was seven short of that level.”

Roll Call called yesterday the “worst day” of Republicans majority “so far when internal GOP divisions resulted in a pair of unexpected and unwelcome defeats for the new leadership Tuesday.” First, “In the afternoon, Republicans abruptly yanked a bill that would extend expiring Trade Adjustment Assistance programs, which provide worker education and retraining, after it became clear that conservative objections to the spending would doom the floor vote.” And then, they lost the 26 members on the expedited version of the Patriot Act.

Speaker John Boehner says he “should be” considered a member of the Tea Party. "I don't know if I actually pay dues, but I'm a big believer in the Tea Party,” he told a Cincinnati talk radio show. “I talk to Tea Party activists all over my district and all over the country every day."

“Republicans, who came to power in the US House on a Tea Party platform of job creation and budget cuts, yesterday clashed sharply with Democrats over a GOP effort to push through a host of new antiabortion measures, including a proposal that would eliminate tax deductions for private insurance plans that cover abortions,” the Boston Globe writes. “The move is being watched closely as a test of how far Republicans are willing to try to extend influence beyond their economic agenda and push a social issue that has inflamed politics and divided Americans for decades.”

“A plan to make Congress vote on spending cuts for projects or programs designated as wasteful by a president is gaining momentum in the Senate,” AP reports, adding, “The measure is a weaker version of the line-item veto power possessed by most governors and briefly enjoyed by President Clinton in the 1990s — before the Supreme Court ruled it was an unconstitutional infringement on Congress’s power.”

Senate Democrats retreat today to Charlottesville, VA, where they “are hoping to put some meat on a sparse floor agenda and polish their messaging on the economy,” Roll Call writes. 

On Friday, former House Majority Leader Dick Armey said this to the Ripon Society: “My biggest disappointment with respect to Paul Ryan is that he hasn’t gotten the support across-the-board in the Republican conference that I think he should have had. In 1995 when we took the majority, we had a man named John Kasich from Ohio. It was only in recent months … that I realize what happened to the Republican majority in days past.  Well, it went to hell in a hand basket. And largely [the GOP majority] was rejected by the American people because it went from budget discipline to budget indulgence. It went from a broad national policy vision for America to short-term, political, parochial visions for themselves. "

The Washington Post’s Cillizza breaks down the 2012 potential presidential field as he sees it: The In Crowd (Gingrich, Huntsman, Pawlenty, Romney, Santorum), a bunch of On the Fencers, and Out Means Out (Christie, Jindal, Perry, Rubio).

“Sen. Chuck Grassley will pick a horse in the 2012 GOP presidential primary but told Roll Call on Tuesday that the candidate he backs must meet very specific criteria: win beyond Iowa… “Too often you get people in Iowa that are just the ideal candidate, but then they can’t go anyplace beyond Iowa. I want somebody that’s going to be able to challenge in New Hampshire, South Carolina, Nevada,” Grassley said.

It’s all about Israel for potential 2012 candidates, Politico writes. “A stop in the Jewish state is becoming as critical to a would-be president’s political resume as an early trip to Iowa or New Hampshire, a sort of global two-fer. Get some early foreign policy street-cred and play a little dog-whistle politics with Christian conservatives who are deeply invested in Israel’s fate - some because they view it as critical to the Biblical vision of the end of days.”

GIULIANI: GOP12 notes that Giuliani has been “scoping out New Hampshire,” citing the AP, which wrote, “In recent weeks, Giuliani and his allies have quietly been talking to activists [in New Hampshire] to see just how much damage he dealt himself among the political class who view their first-in-the-nation role as sacred.”

But damage is spending more than $65 million and winning just one delegate…

JOHNSON: “For weeks, Gary Johnson was told there just wasn’t room for him to speak at CPAC. But late this morning, the former New Mexico governor landed a last-minute invite,” Politico reports.

PALIN: First Lady Michelle Obama responded to Sarah Palin’s criticisms of her healthy eating initiative at a press luncheon by saying, “I don’t think about her in this initiative because it’s not really about ... this initiative is about balance and giving parents the kind of advice and tips that they’ve been asking for.”

SANTORUM: “Rick Santorum knocked Sarah Palin’s decision to skip CPAC, saying on Tuesday that she must have ‘business opportunities’ that are keeping her from the annual conservative conference that is a showcase for potential presidential contenders,” Politico writes. “’I have a feeling that she has some demands on her time, and a lot of them have financial benefit attached to them,’ Santorum told conservative commentator S.E. Cupp, who hosts an online radio show on Glenn Beck’s website.”

THUNE: “South Dakota U.S. Senator John Thune is expected to announce in the coming weeks whether he will run for president in the 2012 presidential campaign,” The State Column reports. “’You’ve got to get out at the starting gate because most of the other candidates are starting to make moves, and so sometime before the end of the month we’ll probably let folks know what my intentions are,’ Mr. Thune said, adding ‘It’s such a big decision unlike anything we’ve ever contemplated before.’”

IOWA: CNN reports that Gov. Terry Branstad delivered a clear message to those contemplating running for president: Don’t skip Iowa. “The first real contest is the Iowa Caucuses and I would certainly urge candidates not to take that for granted,’ Branstad told Radio Iowa.’ And those that have in the past I think have regretted it.’” 

Despite conservatives best efforts, including a column by National Review editor Rich Lowry, former Florida Gov. Jeb Bush reiterates to Politico’s Jonathan Martin that he’s not running:

"Yes," Bush wrote in an email when asked if the door remained firmly shut on a White House campaign next year.

First Lady Michelle Obama today said President Obama has given up smoking, and hasn't had a cigarette for about a year.

"Yes he has, yes he has. Very proud," she told a group of reporters today when asked if the president had stopped smoking, reports Lynn Sweet. "Totally," she added.

"It's been a while and I'm very proud of him," Michelle Obama said, per the Washington Post. She added, "He has always wanted to stop, our kids are getting to the age where he wants to look them in the face because they want to know, 'You don't smoke do you dad?'" she said. "He wants to be able to say no."

Sen. Richard Lugar (R-IN) is one of those senators some in the Tea Party have vowed to make a prime target in 2012. But Lugar -- who worked with Barack Obama when he was a senator on nuclear proliferation, voted for START, and voted for President Obama’s Supreme Court nominees -- swatted aside Tea Party threats in an interview with an Indiana TV station.

On START, he says, “Get real”: "I've been working systematically for 20 years going to Russia trying to help direct a situation in which we're taking warheads off of missiles every day, destroying missiles that were aimed at us; destroying submarines that carried misslies up and down our coast. I've got to say 'Get real'. I hear Tea Party or other people talking about they were against START. I said 'Well, now, hang on here.'" More: "If you want to get into START, let's talk about it, but realistically as Americans, not as some Republican renegade. [I'm] trying to take warheads of Russia [out of circulation] so they won't hit Indiana."

On the Supreme Court votes: "I hope people sort of understand that because otherwise we polarize the Supreme Court business to a point that conservative justices offered by a conservative Republican president -who'll be elected at some point- are going to have trouble.”

On the early start to the campaign: "I don't think I've ever been involved in a campaign for a statewide office that started the whole year before the year. But nevertheless, here we are and we're very competitive."

A year ago, Mississippi Gov. Haley Barbour (R-MS) said, "If you see I lose 40 pounds, you'll know I'm either running or got cancer.”

A Barbour adviser today told Politics Daily's Jill Lawrence that he’s about halfway there.

"He hasn't lost 40 pounds," the adviser said. "He might be halfway there. So read into that what you will."