**President Obama
*AP reports that Obama "plans to propose changes to tax policy certain to be unpopular with corporations with international divisions and individuals who use tax havens." The plan "would eliminate some tax deductions for companies that earn profits in countries with low tax rates, as well as consider U.S. citizens who use tax havens such as the Bahamas or Cayman Islands guilty of violating U.S. tax laws. If Obama wins congressional approval for the changes -- and he faces a challenge on Capitol Hill -- it could deliver $210 billion in tax revenue over the next decade."

*USA Today on the Supreme Court pick: "As Obama and his aides screen candidates to make the first Democratic nomination in 15 years, well-established -- and often overlapping -- judicial models can guide his choices and shape public expectations. For example, all nine of the current justices are former U.S. appeals court judges, elevated by presidents ... who followed a familiar script of looking to lower courts for nominees. During the campaign, however, Obama expressed his preference for a justice with real-world experience in the mode of former California governor Earl Warren, who presided as the court struck down school segregation and helped generate a civil rights revolution."

*New York Times reports: "The results of the bank stress tests to be released by the Obama administration this week are expected to include more detailed information about individual banks -- assessing specific parts of their loan portfolios -- than many analysts have been expecting. Using these results, the administration seems prepared to argue that, while a few banks may need additional money, the broad financial system is healthier than many investors fear."

**Congress
*Disagreements among House Democrats regarding the cap-and-trade bill forced the need for a leadership meeting Thursday in the Capitol, Politico reports. "Brandishing an issue of that day's CQ in which Van Hollen laid out the merits of holding off, an agitated Waxman reminded his junior colleague that raising procedural concerns in public didn't make it any easier for the Energy and Commerce Committee chairman to broker a compromise with the members of his committee -- or help him pass an ambitious bill in the House."

*Sen. Max Baucus (D-Mont.) "is set to introduce legislation that would open the door to more agricultural imports to Cuba, taking advantage of President Obama's pledge to 'seek a new beginning' with the island nation. The bill will likely trigger a fight with Democratic proponents of the current Cuba embargo policy," The Hill reports.

*"The Senate is set to take its crack at credit card companies this week after the House voted overwhelmingly to limit the ability of credit card issuers to change interest rates on their customers," NYT reports.

*Ted Kennedy has an op-ed on health care in Politico.

**Republicans
*Mitt Romney, asked about Rush Limbaugh's and Sarah Palin's presence on Time's most influential list. "Was that the issue on the most beautiful people or the most influential people?" he said. "I'm not sure. If it's the most beautiful, I understand. We're not real cute." Politico: "Romney's quip reflects the deep unease among many in the GOP establishment about the continued high-profile of Limbaugh and especially Palin. There is almost a sense of exasperation among many party elites over the media coverage the two polarizing figures get - attention which, in Palin's case, is widely seen as a product largely of her good looks and tabloid-fodder family troubles."

*"With the party at its lowest standing in several decades, Republicans on Saturday launched a listening tour in the heart of the Democratic suburbs, where several of the party's leading voices steered clear of hot-button issues and instead emphasized the need to advance new policy ideas to revive the party's prospects," Politico reports.

**Campaign Stuff
*Quinnipiac released a Pennsylvania Senate poll this morning showing Sen. Arlen Specter (D) crushing Pat Toomey (R) by 20 points, and leading former Gov. Tom Ridge (R) by 3 points.

*Potential Senate candidate Joe Sestak, on Arlen Specter: "I'm not sure he's a Democrat yet." On Obama's support for Specter: "The president has said he respects Arlen's independence. He'll respect mine if that is the case, I know that."

*Via Politico, Roll Call's report on Tom Ridge being urged to consider a Senate race. "Specter said he switched parties because he could not win a primary against conservative former Rep. Pat Toomey (R-Pa.), who is popular with the party's base but whom many national Republicans believe cannot win the general election -- especially against a 29-year incumbent who is viewed favorably and gets high marks from Democrats. Ridge's moderate politics and national profile would make him a more viable candidate in the general election."

*But Toomey says in the Pittsburgh Tribune Review he can beat Specter. "Reagan carried this state twice. I don't think this state has changed," said Toomey.

*Washington Post front page story Sunday on Terry McAuliffe: "McAuliffe is, at his core, a salesman -- and even called himself a "huckster" in his autobiography. In his bid for governor this year, McAuliffe is selling the idea that his uncanny knack for making money can bring prosperity to all Virginia. But at a time when public mistrust of millionaires and politicians is high, that strategy could backfire."

*A Southern Media & Opinion Research poll finds Louisianans "are markedly ambivalent about their junior senator," David Vitter. The Times-Picayune: "They'd also be just fine living without him, if someone better were to come along. Only 30 percent said they would definitely vote to reelect him. Twenty-eight percent said they would push the button for someone else, and 35 percent said they would consider an alternative."

**Newspaper Alert: Could the Boston Globe cease to exist in 60 days?

**Remembering Kemp
*The Wall Street Journal: "Kemp was an early influence, along with economist Arthur Laffer and President Ronald Reagan, in getting the Republican Party to embrace the philosophy of tax cuts. Republican Sen. Robert Dole's selection of Mr. Kemp as his running mate in the 1996 presidential election reaffirmed Mr. Kemp's imprint on GOP economic policy. [His] death comes as the GOP debates its future after heavy losses in last fall's elections."

--Kyle Trygstad and Mike Memoli