Category Archives: Corporations

West, Texas Disaster Highlights Our Regulatory Problems.

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Those on the political right are fond of saying that business is over-regulated by the federal government…even after the economic meltdown resulting from the lax regulation of financial institutions; even after skyrocketing oil prices caused by deregulation of commodities; even after the ecological disaster involving BP Oil and the Deepwater Horizon caused, in part, by a shortage of inspectors experienced in deep water drilling .

Not surprisingly, the facts show that we have far too few regulators to make sure that greedy corporations and individuals live up to their responsibilities.

There is an estimated $70 billion in Medicare fraud because Medicare lacks enough investigators to check the more than $525 billion claims annually.  There are only a handful of ATFE agents to inspect our more than 58,000 gun dealers.  And their were apparently too few EPA and OSHA inspectors to discover that the West, Texas fertilizer plant stored 270 tons of explosive ammonium nitrate…more than 1,350 times the 400 pounds that requires the facility to be monitored by the Department of Homeland Security.  The facility hadn’t been inspected in 28 years and had apparently filed false reports indicating no fire or explosive hazard.

Why the lack of inspections and regulators?  In some cases, there is confusion over which federal agency is responsible.  More often, it’s the result of Teapublicans cutting budgets and convincing the public that we are all over-taxed and over-regulated.  So greedy corporations continue to break the law in search of greater and greater profits.  Even when caught, they’re able to pay a relatively small fine and continue to skirt the law.

Yet most studies conclude that the money spent to hire inspectors is money well-spent. In many cases, we recover five to ten times the investment.

Of course, the impact on the environment and public safety is far more difficult to measure…unless you like to breathe clean air, drink clean water or avoid being incinerated by an unnecessary explosion.

“We Can’t Afford That Anymore.”

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We hear it all the time. There’s no money to improve our schools. There’s no money to rebuild our infrastructure. There’s no money to ensure that our citizens have access to food and medicine. There’s no money to care for the mentally ill and the homeless. There’s no money to give our veterans the care they deserve. There’s no money for pensions and retirement benefits.

The US is broke…at least that’s what Teapublicans want us to believe.

So what happened? How did we go from the richest, most powerful nation on Earth to a nation that can no longer afford the things that our citizens value most? For starters, our economic ills are the result of two costly wars, the unparalleled expansion of government immediately following 9/11, an expansion of Medicare drug benefits and the Great Recession that began as the result of unfettered gambling by the so-called “too big to fail” banks.

But none of those causes have been as devastating as runaway greed, the off-shoring of jobs and money (it’s estimated that wealthy Americans, including Mitt Romney, and US-based multinational corporations have stashed trillions in off-shore tax havens), subsidies for large corporations, and tax cuts intended to benefit the very wealthiest portion of our populace.

Following World War II, when we could afford to build things, our top individual tax rate was 91 percent for those making more than $200,000 per year. The capital gains tax was 25 percent. And the effective corporate tax rate was 50 percent.

Compare those rates with today’s: The top individual tax rate is now 39.6 percent for those making more than $400,000. The capital gains tax is 15 percent. And the effective corporate tax rate is 17 percent (that is, if large corporations pay any taxes at all). In fact, some large multinationals now have a negative tax rate!

See the problem?

For most working Americans, wages have stagnated over the past 40 years, while worker productivity has skyrocketed, along with incomes for the wealthy. Most Americans are working harder and earning proportionately less…if they’re lucky enough to have a job! And the only answer Congress (at least the Teapublican portion of Congress) has for these problems is to cut spending, to protect tax cuts for the wealthy, and to cut taxes for corporations.

Speaker Boehner, Minority Leader McConnell and the rest of the Teapublicans in office want to “starve the beast.” They consider investment and compromise dirty words. And they steadfastly refuse to agree to one more dollar of revenue.

To relate that to family finances as Teapublicans are so fond of doing: It’s as if parents, faced with growing credit card bills, decided to give up food for their children in order to cut their work hours!

Yes, we have to cut government waste and be efficient with our spending. But there isn’t enough fat in discretionary spending to eliminate the deficit and still meet the needs of our growing population. We already have seen that with the sequester cuts, and they’ve only just begun. If we want to reduce our nation’s debt without destroying our fragile economy, we must find new sources of revenue.

The GOP’s Continuing Attack On Voters, Workers, Women And The Constitution.

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Still stinging from its losses in the 2012 election, the Grand Old Party is becoming a Grand Old Pain In The Ass.  Not just for Democrats…for everyone.

While opposing a bill that would raise the minimum wage, the GOP is attacking labor unions across the nation and successfully ending defined benefit pension plans.  Now the GOP is pushing a bill that would loosen the rules for overtime, allowing corporations to overwork and underpay employees.

Famously, the Ryan budget, which was passed by the House, would drastically cut Medicaid, repeal Obamacare and turn Medicare into vouchers.

Although 94 percent of Americans want comprehensive background checks for anyone purchasing a firearm, Teapublican senators are threatening to filibuster any bill that would limit the sale of guns.

In states across the nation, the GOP is pushing a variety of voter suppression laws through state legislatures under the guise of preventing voter ID fraud, a problem that has been proven to be non-existent.   After gerrymandering districts to all but guarantee a Teapublican-controlled House far into the future, the GOP now senses a way to control presidential elections by changing the Electoral College.  The idea is to end the “winner-take-all” approach to electoral votes for states and, instead, award each electoral vote district-by-Teapublican-controlled-district.

If successful, this would almost certainly ensure an endless reign of GOP presidents.

In North Dakota, Arkansas and elsewhere, GOP legislatures are attempting to make abortion illegal. (Of course, the bills will not actually end abortion.  They’ll just drive it underground, making doctors and patients criminals.)  Under the guise of religious freedom, they also want to eliminate contraceptives from health insurance plans and block sex education in public schools.

In Arizona and numerous states of the Old South, a variety of so-called nullification bills have been introduced in the state legislatures.  If passed, these bills would ostensibly give the states power to ignore any federal law the GOP deems unconstitutional.  (Of course, this power is reserved for the Supreme Court and the bills are in direct defiance of the Constitution’s federal supremacy clause.)

Finally, a bill introduced by North Carolina Teapublicans will allow the GOP-controlled state legislature to name an official state religion in defiance of the Constitution’s establishment clause.

Does anyone else get the feeling that the GOP would be happier if our Constitution didn’t exist?

Apocalyptic Politics.

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Many Americans seem convinced that the Apocalypse is upon us.  Remember Y2K? Remember Nostradamus?  Remember the Mayan calendar?

There have been dead-enders around as long as I can remember.  Usually, they were part of some wacko religious cult that had bet its future on the book of Revelation.  But, in recent years, the dead-enders have become mainstream, especially after the election of our first president of African-American heritage.

Fueled by Teapublicans and the right-wing media, we are constantly told to be afraid…be very afraid.  Unless we do as they say and accept their ideology, we will suffer the consequences of a failed, bankrupt state and, quite likely, the wrath of God.  (You know, the God who personally created America by taking land from the natives and giving it to God-fearing Christians.)

All of this is disturbing enough.  But our media seem to have bought into these fear tactics in the same way they bought into the Bush administration’s lies leading up to the invasion of Iraq.

As a result, we’re exposed to Teapublican and Christian evangelical fear-mongering at nearly every turn.  Fire-and-brimstone pastors preach fear from the pulpit and tell their flocks that they will go to hell if they support Democrats.  Hate mongers such as Rush Limbaugh, Glenn Beck and Mark Levin spew apocalyptic nonsense daily.  And the gun manufacturers’ lobby, otherwise known as the National Rifle Association, tells you that your neighbors are out to get you and your government is coming to take your guns.

To make matters worse, mainstream cable channels offer studies in paranoia such as Doomsday Preppers.  Even the movie studios have gotten into the act with a never-ending series of disaster movies.  And, in the most egregious example, the History Channel recently produced a TV series on the Bible, casting an Obama look-alike as Satan!

The clear message is that we will all perish and go to hell unless we all become right-wing Christian Teapublicans who bow to multinational corporations, turn our backs on the poor, ignore the rights of women, show intolerance to minorities, and worship at the altar of intolerance and greed.

Now that would be a REAL apocalypse!

Let’s Create A New Tax System!

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The US is a patchwork of federal taxes, state taxes, sales taxes, property taxes, capital gains taxes, gasoline taxes, tobacco taxes, etc. In addition, there are a myriad of tax loopholes allowing billionaires to pay lower tax rates than the secretaries who work for them. Worse yet, some of the world’s largest corporations are able to avoid paying income taxes, despite billions in profits.

If all of that isn’t confusing enough, taxes in some states are higher than in others, leading to competition between states.

For decades, states have spent more time trying to coax companies from other states than helping their own entrepreneurs to create new companies. Low tax states such as Arizona and South Dakota try to lure away businesses (and jobs) from higher tax states like California and Minnesota where the businesses began and grew, likely because of tax incentives and other state-funded investments in those businesses.

This kind of nonsense has to stop!

Businesses are not created by low taxes.  They are created and nurtured in states which value education, innovation, technology, infrastructure, and quality of life.

If states like Arizona and South Dakota want more jobs for their citizens, let them invest in the things necessary to create them. Let’s stop the competition to see which state can cut taxes to the lowest possible rate at the sacrifice of everything else. Let’s level the playing field. Let’s eliminate the multiple layers of taxes. Let’s create a single, federal tax system in which each state charges the same tax based on income and cost of living. (I think we can all agree that a $250,000 salary in Wyoming goes a lot farther than the same salary in New York.) The money would then be parceled out by the federal government based on population and defined need.

This system would end the free ride for low tax states and encourage real development and innovation.

After all, why should Minnesota, Delaware, New York and New Jersey have to contribute far more taxes per person to the government than they get back? And why should states like Alabama, Arizona, Mississippi, New Mexico and Wyoming get more out of the federal government than they pay in? And why should companies be encouraged to uproot their offices, production facilities and personnel just because another state offers a slightly lower tax rate?

Think about it.

What The Frack?

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If you’ve followed fracking in the US (the process of releasing gas and oil from rock formations hundreds of feet underground through hydraulic fracturing), you’ve heard about the many nightmares.

Some people have had their wells so polluted, the water can be set on fire.  Others talk of bullying tactics by the oil drilling companies who take over their land. Still others talk about the large tanks containing a secret witches brew of toxic chemicals placed on their land and the pools of highly polluted waste water.

It’s very different in the United Kingdom.

In listening to a discussion about fracking in England, I learned that the British government is handling the procedure far differently.  Unlike the US, England demands that the chemicals pumped into the ground to release the gas and oil be made public.  (In most cases, they use just one chemical.)  England also demands that the waste water be placed in double-walled tanks and treated before it can be released back into the environment.

Why the difference?

Apparently the oil and gas industry doesn’t own Parliament the way it owns Congress.

If I Were King.

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Ever think about what you might do if you were named King (or Queen) of the US for a day? I realize this is a somewhat narcissistic exercise, nevertheless, here’s what I would do:

1 – Cut the defense budget in half and use the leftover money to rebuild our antiquated and decaying infrastructure

2 – End the war on drugs by decriminalizing the use of illicit drugs

3 – Empty the prisons of those incarcerated for drug use and petty drug sales

4 – Prosecute those who have ordered or participated in war crimes

5 – Prosecute the bank executives who crashed our economy by stealing trillions from ordinary citizens

6 – Prosecute those who have created off-shore bank accounts for tax evasion

7 – Limit the number of Congressional lobbyists and ban campaign contributions

8 – Institute public financing for electoral campaigns

9 – Implement a national holiday for elections with mandatory voting

10 – Institute a tax on financial transactions

11 – Index federal income tax rates based on cost of living for each taxpayer’s permanent address

12 – End sales taxes on everything except luxury items

13 – End tax exemptions for more than one home

14 – Restore the FCC Fairness Doctrine requiring electronic media to operate in the public interest and withholding licenses to those who knowingly tell lies

15 – Create a single-payer national healthcare system

16 – Strengthen Social Security by removing the income cap for FICA deductions and means test Social Security recipients to prevent millionaires from receiving it

17 – Reduce the influence of multinational corporations on our State Dept.

18 – Require 2 years of service for all US citizens

19 – Ban semi-automatic weapons, high-capacity clips and military-style ammunition and offer federal buy-backs of banned guns and ammo

20 – Require universal background checks for all gun purchases

21 – Proclaim equality for all and increase penalties for any form of discrimination

22 – End tax exemptions for church property, except that used to perform charitable services, such as education, medicine, services for the poor, etc.

23 – End all corporate welfare, especially for those corporations who export jobs or pollute our environment

24 – Ban elected officials from working for government contractors as employees or lobbyists for a minimum of 10 years

25 – Require that corporate offices of government contractors be located in the US

I’m sure I’ll think of more. Of course, our nation is as likely to implement these ideas as it is to make me King for a day. Thanks for allowing me to indulge in my fantasies.

The Real Hunger Games.

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What’s your definition of a third world country?

When I was a child (far too long ago) third world countries were defined as those that didn’t produce enough food for their own citizens. I remember photographs of these faraway places…photos of people with blank stares and bellies bloated by starvation. If I failed to clean my plate, I was reminded that children in China were starving. (I never quite understood how my cleaning a plate helped the Chinese, but I felt sorry for them anyway.)

Today, many of those going hungry are right here…in the United States!

According to the directors of a new film, A Place at the Table, 50 million (1 in 6) Americans, including 17 million children, don’t have reliable sources of food. 1 in 2 American children will need food assistance in their lifetimes.

These aren’t the lazy layabouts who suck off the government teat that Teapublicans want you to think they are. More than 80 percent are from working families. The parents simply don’t earn enough to pay for rent, for clothes, for day care, for school books, for transportation and for food.

How is this possible in America?

It’s made possible by politicians who continue to cut taxes for the wealthy and powerful; by corporations that pay millions to CEOs and poverty level wages to workers; by politicians who refuse to raise the minimum wage even though it has lagged far behind inflation; by politicians who believe in corporate welfare but not human welfare; by politicians who want to balance the budget by cutting food stamps and access to medical care rather than our bloated defense budget.

We can change this.

We can donate to food shelves. We can volunteer to help those in need. We can support government programs to help raise families out of poverty. We can make certain that anyone who is willing to work can afford a roof over their heads and food on the table. We can demand that our politicians prioritize people over corporations. We can demand that they put people above partisanship; children above debt reduction.

We can end hunger in America. 

Since Most Americans Want Compromise, Why Elect Those Who Don’t?

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A variety of polls show that the overwhelming majority of Americans want their elected officials to compromise. Yet the US House of Representatives is controlled by those who view compromise as a weakness.

Speaker Boehner can’t even bring himself to say the word!

As a result, President Obama was forced to sign an order implementing the most ill-advised, ham-handed budget cuts in history. $89 billion will be indiscriminately cut from every federal program except critical national defense and Social Security. If allowed to stand, these cuts will have devastating effects on our nation – especially those who are out of work, the working poor and others struggling to survive.

These cuts have been made because traditional Republicans are afraid of the Tea Party nitwits within their own party. They’re afraid to end tax loopholes that allow multinational corporations to stash money offshore. They’re afraid to end tax loopholes for the wealthy who are enjoying tax rates that are near historic lows. They’re afraid to compromise with the president for fear of being “primaried” and replaced by even more teabaggers. 

Although, I admit the prospect of even more angry teabaggers in Congress is frightening, it’s time for traditional Republicans to grow a pair.

It’s not that President Obama hasn’t reached across the aisle to avoid sequestration. After stabilizing our economy in the first year of his administration, the president has cut the deficit each year. In fact, we have already seen the largest deficit reductions since the years immediately following World War II. Yet that isn’t enough for the extreme wing of the Republican Party. Teapublicans have refused offers of $2 to $3 in cuts for every $1 of revenue created by eliminating tax loopholes.

Still there is no compromise from the radical right. They refuse to negotiate with the president and they refuse to listen to the American people. Of course, they won’t suffer as the result of their actions. We will.

I hope voters remember that next election.

Buying Elections.

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Americans have long been opposed to the notion of candidates buying elections. But we’re just one step short of unfettered vote buying.

In 1976, while upholding a law which set limits on campaign contributions, the Supreme Court made it possible for candidates to spend unlimited amounts on their own campaigns. In essence, the Court ruled that money equals free speech.

Then in Citizens United v Federal Elections Commission, supported by the GOP, a conservative-leaning Court ruled that corporations had the rights of people, unleashing massive expenditures of corporate money in support of candidates through PACs and Super PACs.

Soon, the Court will decide yet another case, McCutcheon v Federal Elections Commission, which is being supported by the GOP in order to remove limits on direct campaign contributions to candidates.

The good news is that this may well spell the demise of PACs and Super PACs. The bad news is that multinational corporations and billionaires such as the Koch brothers will able to funnel billions into campaigns for candidates who promise to be subservient to their demands.

When that happens, the needs of ordinary Americans will be further overwhelmed by big money. The wealthy and powerful already control most of the lobbyists, and therefore, the political agenda. Imagine what will happen when they can actually buy elections.