Category Archives: Corruption

Inversion: The New Name For Corporate Tax Evasion.

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Some of the world’s largest corporations were founded in the US. They were capitalized by selling shares to Americans on American stock markets. They relied on our infrastructure, our labor force, and the stability of our currency in order to prosper and grow. That growth was accelerated by tax incentives and government giveaways. They lobbied our Congress and the Federal Trade Commission to turn a blind eye as they swallowed up smaller competitors to create virtual monopolies. At the same time, these corporate giants took advantage of tax loopholes in order to reduce their tax rates to single digits.

So how have these companies repaid American taxpayers for their investment and their patronage?

Many corporations shipped their manufacturing jobs overseas in search of cheaper labor. They then dumped low cost products on our markets in order to force smaller competitors into submission. More recently, they stashed billions of dollars of their ill-gotten profits in foreign banks demanding that our government create a tax holiday to encourage them to “repatriate” the funds at greatly reduced tax rates. Now they are purchasing or merging with foreign competitors so that they might move their books overseas and avoid paying US taxes altogether.

The name for this latest off-shoring scheme is “inversion.”

Inversions are already costing our nation billions in lost revenue…revenue needed to maintain the infrastructure and economic stability these corporations rely upon. Medtronic recently resorted to the inversion scheme. Other companies to take advantage of the accounting trick include Aon, Applied Materials, Eaton Corporation, Fruit of the Loom, Halliburton, Ingersoll-Rand, Omnicom, and Tyco. The latest corporation to consider the scheme is Walgreens, which would presumably move its books from “the corner of happy and healthy” to Switzerland.

To add salt to this festering (and costly) wound, most of these inversions are being aided by our “too big to fail” banks; The very banks that were bailed out of certain bankruptcy in 2008 with our taxpayer funds.

So call it what you want, this latest corporate accounting trick is just another name for tax evasion. And I’d suggest another name for any corporation that resorts to such tactics…Traitor.

Immigration Issues Tied To Foreign Policy.

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Conservatives, especially those in Arizona, California and Texas, are using the recent influx of unaccompanied children from Central America to “prove” that President Obama is neglecting our southern border. They can’t seem to comprehend the fact that the children have been apprehended while crossing the border. They weren’t just given a pass into the US. They also fail to understand that the transport of immigrant children from Texas to facilities in other states has to do with the fact that our holding facilities are overflowing. The Border Patrol could not have been prepared for the mass influx of children who were sent northward to escape the violence and poverty in their own countries.

This is not simply a border crisis. It’s a humanitarian crisis.

The seeds of this crisis were sown more than 100 years ago when the US allowed its corporations to divide up the impoverished nations of the Western Hemisphere. The United Fruit Company (Chiquita Brands International) and the Standard Fruit Company (Dole Food Company) seized control of large tracts of land along with the banana trade of Honduras, Guatemala, El Salvador and other parts of the Caribbean. With the military might of the US behind them, these companies dominated the politics of the region. It was this fact that led to the term “Banana Republics.” And it is the primary cause of the long-term poverty of these nations.

But the meddling of US corporations didn’t stop there.

Following the ratification of CAFTA (Central American Free Trade Agreement), large US-based agri-businesses began dumping corn on Mexico and Central American countries. This led to the financial ruin of small farmers. With no way to feed their families, the farmers were forced to move to the slums of cities in hopes of obtaining jobs. Finally, in desperation, some turned to crime. Many more immigrated north.

Although the current crisis may be caused by misinformation, rumor and greedy smugglers, in many ways, the flood of illegal immigrants across our borders is the result of our own actions (rather the actions of our large, greedy corporations). Without an immigration policy that accounts for the causes of immigration…all of the causes…it will continue and the problems associated with illegal immigration will be magnified.

Advice From A War Criminal.

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From The Department Of Who The Hell Cares, Richard “The Dick” Cheney and his unpleasant daughter, Liz (I assume that’s short for Lizard) recently announced that they have formed a Political Action Committee to “restore America.” Restore America to what? To a craven bully that interferes with other governments; that robs resources from third world countries while giving nothing in return; that encourages large agribusiness to dump excess products in other nations thus bankrupting small farmers and throwing them into abject poverty?

Or does The Dick merely want to start another war in order to direct more taxpayer billions to his former company and political allies at Halliburton? Does The Dick want to resume his position as Torturer-In-Chief to cause others to fear him? Does he still believe that we can use our military might and status as the world’s only superpower to force the rest of the world to kneel at his feet and pay tribute to our multinational corporations? Does he still want to extract money and resources from the poor to feed the insatiable appetites of his wealthy friends?

Yes, as part of the Ford, George H.W. Bush and George W. Bush administrations,The Dick has done all of that and more.

In an op-ed, The Dick and his disagreeable daughter wrote, “Rarely has a US president been so wrong about so much at the expense of so many,” to which White House Press Secretary Jay Carney rightfully replied, “Which president is he talking about?” The only president that meets that description is the one who lived in the White House while The Dick was running our nation to ruin.

Let’s review: First, Cheney and Bush stole the 2000 election through a combination of Jeb Bush denying voting rights to tens of thousands in Democratic-dominated Florida counties, by counting nearly 10,000 unsigned absentee ballots, by bullying election officials, and by appealing to a Republican-laden Supreme Court. Cheney and Bush ignored more than 40 warnings of a pending terrorist attack in the US by al-Qaeda. They then invaded an oil-rich country under false pretenses, ordering numerous atrocities. They stole our privacy. They awarded so many billions in no-bid contracts to Halliburton for rebuilding Iraq that they “misplaced” roughly $80 billion. They ignored outright gambling by our largest financial institutions costing ordinary Americans their homes and trillions of dollars. They then bailed out those same financial institutions in order that they might continue their ritual of handing out six and seven-figure bonuses. Finally, Cheney and Bush were convicted as war criminals in abstentia by an international court.

Now that is a failed presidency!

Did I mention that the Cheney/Bush fiasco included leaving the Middle East in complete turmoil giving Sunni and Shiite Muslims the opportunity to resume their near 1,400-year war over who is the rightful successor to Muhammad? Now The Dick and his spawn want the US to send troops to Iraq to intercede. They’re not worried about the lives of our soldiers, the lives of Iraqis, our national debt or our national reputation. They’re only worried about oil.

Here’s an idea. If The Dick feels so strongly about immersing our nation in another war or occupation, let him crank up his mechanical heart and enter the fray with his shotgun and his oily buddies. Give them military training and draft their children for the fight. After all, The Dick has already proven that he is dangerous to his friends with a shotgun in his hands. Imagine what he can do against his enemies. Anyway, he and his fellow executives of Big Oil are the only ones who stand to profit from another misadventure in Iraq.

What Next For VA?

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Now that Gen. Eric Shinseki has resigned as Secretary of Veterans Affairs under pressure from the crass reactionaries and the weak-minded in Congress, what’s next? Shinseki had been charged with taking over an already flawed and expanding system. He dramatically reduced the wait time for those in line for VA benefits. He helped many homeless veterans get off the streets. He replaced a cumbersome and antiquated system that relied on paper with a modern computer system. And he pushed and incentified hospital managers to cut wait times for medical appointments.

Unfortunately, he was deceived by those who falsified records in order to make themselves look good and receive bonuses. He was never given a chance to weed out those white collar criminals and bring them to justice. And he was not given the time needed to fix the system by those who would rather gain political leverage than tell the truth and serve the public.

So let’s look at the reality of the VA medical system. First, it should be understood that the VA was originally created to serve veterans who had suffered combat wounds and service-related medical issues. It was never intended to provide a lifetime of free medical care to anyone who ever wore a uniform.

Second, the number of veterans seeking free health care from the system has grown dramatically. As Vietnam veterans have aged, they have placed ever greater demands on the system, especially those who were exposed to Agent Orange. So, too, have the veterans of Desert Storm with Gulf War Syndrome. And those who served multiple deployments in Iraq and Afghanistan are already flooding the system. Many of these soldiers have returned with severe medical issues, such as PTSD, severe head trauma and worse.

Third, even though the annual budget for the VA medical system has steadily grown, it has not kept up with demand. As a result, many VA hospitals have been woefully understaffed and their workers underpaid. Just recently, Sen. Bernie Sanders introduced a bill intended to give the VA an additional $21 billion to meet its needs. But GOP senators objected to the way the bill was to be funded – by using funds leftover from the Iraq War. GOP senators also decided to play election year politics by trying to add an amendment that would have forced the Obama administration to increase economic sanctions on Iran, even though such a measure would derail current negotiations over the future of the Iran nuclear program. When Democratic leadership refused to allow the amendment, the GOP blocked Sanders’ bill with a filibuster.

I will admit that the GOP did have one valid point with regard to the bill. They objected to further expansion of the VA which would have given even more veterans without service-related conditions access to the system.

So what now?

First and foremost, the new Secretary of Veterans Affairs will need the funds to fill the vacuum of primary care physicians throughout the system. The VA hospital in Phoenix which experienced the most severe delays currently has 400 openings to fill. (You read that right…400!) At the same time, the new Secretary should file fraud charges against the hospital directors who scammed the system, claw back the undeserved bonuses and find replacements for them.

Finally, Congress will need to stop playing the blame game and interrupt election year politics long enough to pass an adequate funding bill. It should also examine the eligibility requirements for VA medical care. All veterans should not be treated equal. Under the current system, taxpayers cannot afford to give all veterans free medical care for life…with or without vouchers. The system should be limited to combat veterans and those with service-related medical conditions. Until this country comes to its senses and creates a universal health care system for all of its citizens and negotiates the cost of care, many veterans can be served through Medicare, Medicaid and private facilities…especially non-combat veterans who can afford private insurance.

Horrified By Yet Another Mass Shooting? Get Used To It.

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In the history of our nation, our individual citizens have never possessed such lethality. Guns are available to anyone, even children. At the same time, our federal, state and local governments have cut back on social programs, including mental health programs. The combination of the two is certain to ensure that more mentally ill people will be able to act on their inner demons with extreme violence and force.

The young man in Santa Barbara is a prime example. His parents knew he was mentally disturbed. They desperately sought help from law enforcement. But, under the  circumstances, there was little anyone could do to stop him. He was able to convince police that he was not a danger. And anyone who is mentally ill can buy a gun as long as they have not been previously confined. So he was able to legally purchase three semi-automatic handguns and more than 400 rounds of ammunition.

As a result, a number of promising young lives were snuffed out. Even those who survived or witnessed the event will be forever changed.

Responsibility for these deaths falls directly on the gun industry, the National Rifle Association, other gun groups and their members. (To be clear, I have owned guns most of my life, but I’ve never carried one and I’ve never embraced the anti-government paranoia of some gun owners.) Because of the NRA, we have been unable to reduce the lethality of available guns; unable to conduct universal background checks; unable to track the transfer of guns between individuals; unable to keep records of the number of shootings and deaths from guns. Thanks to the NRA, in some states pediatricians are even banned from discussing the potential problems of guns in the home with parents.

Had it not been for the greed and paranoia of NRA leaders, the parents of Elliot Rodgers might have been able to deny the shooter’s ability to obtain guns by notifying authorities of the potential danger and entering that information into a database to prevent him from purchasing a weapon. Had it not been for government cutbacks on mental health programs, his parents might have been able to force the young man to get help.

Where has the money for mental health programs gone? Most states have put the money into prisons. Indeed, prisons have become the American substitute for many social programs. By allowing people to commit crimes, we can house them in cells where they receive no treatment and no counseling. They are a danger to no one but the detention officers and themselves. And they contribute to the economy by generating profits for private prison corporations.

Sure, this system is inhumane. Sure, it results in more crimes and more deaths of innocent people. Sure, the system causes unimaginable pain to the families and friends of the mentally ill. Sure, the rest of the world is puzzled by such callousness. But this is the USA. We’re the world’s only super power. We can be as stupid and as mean as we want!

So get used to mass shootings. Get used to the sensationalized news stories. Get used to the deaths and the severe wounds. Get used to the anguish of families and communities. Get used to the mourning. Cover your eyes and ears to the horror. Close your minds to the obvious solutions. This isn’t about right and wrong. This is about maximizing the profits of the gun industry. It’s about business, power and politics.

Just Politics?

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Last week, the GOP unleashed its new election strategy. Not only did they vote for a “select” congressional committee with 7 Republicans and 5 Democrats to investigate Benghazi yet again (there have already been a total of 13 Congressional hearings, 50 Congressional briefings, 25,000 pages of findings, and numerous media investigations – all with the same result – there was no wrongdoing by the administration). They voted to hold former IRS agent, Lois Lerner, in contempt for invoking the Fifth Amendment and vowed to continue to investigate the already debunked claim that the IRS unfairly targeted Tea Party groups for extra scrutiny.  And they continue to claim that the Obama administration was somehow involved in Fast & Furious.

Of course, with all of this on their minds, the Teapublican-controlled House of Representatives (Isn’t it amazing how misleading that name now seems?) will have little time left to address the needs of the nation. Oh, they’ll find enough time to vote for more corporate welfare and to vote yet again to defund “Obamacare.” They’ll also likely vote for even more investigations intended to embarass the president. Numerous Teapublican leaders have even used the “I” word (impeachment) to rile up their base and ensure a strong Teapublican turnout for this November’s midterm elections.

When confronted by news media over the party’s obvious cynicism and divisive tactics, Teapublican leaders dismissed the issues as “just politics.” Seriously? Is this what now substitutes for a government of the people, by the people and for the people? To win at any cost? To filibuster every bill the other party introduces? To block virtually every nomination? To foment hate and divisiveness?

The whole notion of our two-party system was one of loyal opposition – that the two parties would compete for office based on ideas and what’s best for the nation. Then, following the elections, they would legislate and manage the nation based on those ideals. They could disagree, but they would work with the interests of the people in mind. How does the Teapublican determination to pursue bizarre conspiracy theories fit into that notion? How does that justify the use of government committees to destroy opponents rather than to help the nation? How does the Teapublican strategy of blatantly attempting to turn our citizenry against one another help our nation?

I am a social liberal and a fiscal conservative, so I could appreciate the compassion of the Democratic Party and its efforts to eliminate poverty and to help those in need. Likewise, I could appreciate traditional Republicans who focused on keeping taxes low and eliminating waste. Over the years, the goals and strategies of the Democratic Party are relatively unchanged. But the Republican Party no longer exists. It has been replaced with a hate-based, anti-government, win-at-any-cost group of sociopaths. It’s a party that panders to the wealthy and the powerful; that has never seen a military expenditure it didn’t like; that would give large corporations free reign to destroy our environment and defraud citizens; that will vote for any form of corporate welfare while taking food out of the mouths of single moms and children. It’s a party that can’t win on the strength of its ideas, so it resorts to dirty tricks, voter suppression and under-the-table campaign contributions.

Today’s Republican Party bears little resemblence to the party of Abraham Lincoln. It’s much more like the party of Joseph McCarthy.

Congress Should Have Given As Much Attention To Iraq As Benghazi.

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Congress has spent far more time debating and analyzing the events at Benghazi than it did the invasion of Iraq. The results of the terrorist attacks on the US Consulate in Benghazi resulted in the tragic deaths of four Americans. While the cavalier invasion of Iraq led to the deaths of 4,486 US soldiers and, by at least one authoritative estimate, the deaths of more than a million Iraqis. The invasion of Iraq was based on false pretenses while the concern over Benghazi is that the White House falsely stated the cause of the attacks.

What’s wrong with this picture?

Benghazi has been investigated, analyzed and politicized to death. And the GOP is still out for blood. They want someone, anyone, to pay. They already derailed the nomination of Susan Rice for Secretary of State for merely stating what she believed to be true. And every investigation has proven that her remarks were accurate. But the GOP wants to hang Benghazi around the necks of President Obama and former Secretary of State Hillary Clinton. There is talk of impeachment and the everlasting hope that further investigations of Benghazi will prevent Hillary from running for president in 2016. There is also the very real likelihood that another sensationalized kangaroo investigation of Benghazi will help the GOP capture the Senate in the mid-term elections.

Yet, the many falsehoods and lies that led to the invasion of Iraq have scarcely been investigated. No one involved in the lies at any level has paid a price. Only recently has the Senate investigated the accusations of Bush-sanctioned secret prisons and torture! In an attempt to heal the wounds caused by that costly and unnecessary war, President Obama chose not to pursue investigations and sanctions against the pepetrators of the lies, even though there is clear evidence that the Bush administration lied about the existence of WMD (weapons of mass destruction), sanctioned torture, and punished anyone who stood in their way, going so far as to commit treason by outing a clandestine CIA operative as payback for her husband’s op-ed debunking the notion that Saddam Hussein had purchased yellow cake uranium from Niger.

And what of the warnings Bush, Cheney and Condoleezza Rice received before 9/11? What of claims from numerous credible sources that the Bush administration received more than 40 detailed warnings of the impending attack? What of the single investigation led by Condoleezza Rice’s pal, Philip Zelikow, which whitewashed the lead-up to the attack and absolved Rice of wrongdoing despite obvious negligence as the National Security Advisor? What of the administration’s blatantly false claims that Saddam Hussein had partnered with al-Qaeda?

Are the American media really so stupid that they would treat the Benghazi hoax more seriously than the deception and lies behind the Iraq War and the negligence surrounding 9/11? Can the GOP be so cynical as to perpetuate the Benghazi myth for obvious political purposes? Are American voters so stupid or naive that they would believe the GOP’s disproven theory that Benghazi is worse than Watergate?

Unfortunately, I believe the answer to those questions is an unqualified yes.

IRS Did Not Unfairly Target Tea Party.

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In 2013, it was alleged that the IRS had subjected Tea Party groups that applied for nonprofit status to extra scrutiny. Led by Fox News, hate radio and Rep. Darrell Issa’s House Oversight committee, the right howled with indignity. The IRS Director was removed from office. IRS agent, Lois Lerner was vilified. There were even charges that President Obama ordered the IRS to deny right wing groups nonprofit status.

It made for a sensational story. Unfortunately, it was based on a lie.

Recently, ThinkProgress offered proof. The organization reviewed IRS documents it received as a result of the Freedom of Information Act. The documents requested are lists of words that would trigger IRS agents to give extra scrutiny to organizations that requested 501(c)(3) charitable status. According to Josh Israel, the author of a ThinkProgress report, “The 22 ‘Be On the Look Out’ key words list distributed to staff reviewing applications between August 12, 2010 and April 19, 2013, included more explicit references to progressive groups, ACORN successors, and medical marijuana organizations than to Tea Party entities.” You can read the entire report by clicking here.

Nevertheless, the real problem isn’t whether nonprofit groups representing one side of our political spectrum are targeted more than others. The real problem is that 501(c)(3) and 501(c)(4) nonprofits are allowed to engage in politics at all. By applying for nonprofit status, these groups purport to be primarily charitable or educational in nature (the language of the IRS rule governing nonprofits was changed from “exclusively” to “primarily” in 1959.) Yet one nonprofit after another has been found to spend most of its time and money sponsoring political ads targeting specific candidates than educating the public.

No one has abused nonprofit status more than the Koch brothers. The “Kochtopus” of non-profits used to influence elections is both extensive and unprecedented. In 2012 alone, they spent $383 million to help conservative candidates. And they were just getting organized. Since then, they have expanded their complex network of nonprofit “social welfare” groups and trade associations to allow them to spend even more money to influence elections.

They rely on nonprofits in order to take advantage of tax loopholes that allow them to hide the list of donors.

More recently, they have embraced the use of “disregarded entities” – Limited Liability Corporations (LLCs) that are “owned” by nonprofit organizations and considered part of them for tax purposes. So far, this is a political tactic used exclusively by the Kochs to disguise their political spending. Unlike their more famous shill groups such as Americans for Prosperity and 60 Plus, the names of these groups are often just a jumble of letters such as PRDIST, RION, TOHE, ORRA, TRGN, SLAH, POFN, RGSN, TDNA, DAS MGR, and STN. Although these organizations are prohibited from engaging in politics, that is clearly their primary focus. And the amount of money spent by these groups is staggering.

The Huffington Post’s Paul Blumenthal and the Sunlight Foundation studied the spending of such groups since January 2013. Contrary to IRS rules, these groups spent at least $24.6 million on ads that named specific candidates. And that was in an off year for elections! Koch-funded groups have even spent money to influence local elections, such as school board elections.

Clearly, billionaires are trying to subvert our democracy. But they can be stopped. We don’t even need a constitutional amendment or a Supreme Court ruling to stop them. All we need is for the IRS to act; to change its rules prohibiting nonprofits from engaging in politics – even political “education.”

20 Things President Obama Should Do After The Mid-Terms.

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In no particular order of importance:

  1. Normalize relations with Cuba.
  2. Support Palestine for UN membership.
  3. End the War on Drugs and begin the process of decriminalization.
  4. Renew calls for a Public Option as part of the Affordable Care Act.
  5. Negotiate pharmaceutical prices as all other industrialized nations have done.
  6. Rally Americans to aggressively deal with Climate Change.
  7. Push for an end to mandatory sentences for non-violent criminals.
  8. Order the Justice Department to aggressively pursue criminal charges against the banksters who collapsed our economy in 2008.
  9. Order the Justice Department to aggressively pursue charges of war crimes against those involved in the CIA’s torture program.
  10. Deny permission for TransCanada to build the Keystone XL pipeline.
  11. Push for changes to the tax code to prevent the use of offshore tax havens by individuals and corporations.
  12. Push the IRS to prevent 501c3s and 501c4s from engaging in politics.
  13. Aggressively push for immigration reform.
  14. End drone assassinations except as an absolute last resort to deal with terrorist leaders and increase transparency.
  15. Order the removal of ALL American troops from Afghanistan.
  16. Offer government-backed, interest-free college loans based on need.
  17. Demand that Congress pass common-sense gun control measures, including universal background checks and a ban on large ammo clips.
  18. Order the Justice Department to create uniform voting rights across all states.
  19. Aggressively push for an end to human trafficking.
  20. Order the Department of Defense to reduce its reliance on private contractors.

Supreme Injustice.

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The Supreme Court decision in McCutcheon et al v Federal Election Commission is the next step in our march from democracy to plutocracy allowing the rich to dominate our political system even more than they already have. In a series of 5-4 decisions with “conservatives” in the majority, the Court has ruled that money equals free speech; that corporations are people (at least with regard to political contributions); and that there can be no limits on the amount of money the ruling class can spend on elections.

For many years, wealthy individuals and large corporations have enjoyed greater influence and access to elected representatives than ordinary citizens. With this ruling, the wealthy will be able to literally buy them. The Koch Brothers and Sheldon Adelman are already spending billions through a complex network of Political Action Committees and Super PACs in order to sway our elections. Now they and other billionaires will be unleashed to spend monumental sums to elect candidates that will allow them to control Congress.

It’s fitting that this Supreme Court ruling comes on the heels of the death of Charles Keating, Jr. A financier and developer who was a friend of Ronald Reagan, Keating was indicted in the savings and loan scandal that cost the federal government billions. Prior to the failure of his Lincoln Savings and Loan Association, he contributed $1.3 million to the election campaigns of five US Senators in order to buy their influence to help fend off federal regulators. After Lincoln eventually failed, Keating was charged and convicted of 73 counts of fraud, racketeering and conspiracy. Although his conviction was later overturned, he eventually admitted to four counts of wire and bankruptcy fraud.

Given this latest Supreme Court ruling, there are likely to be many more Charles Keatings – those who will use their money to control tax laws; to fend off federal regulators; to eliminate regulations altogether; to scam the government and ordinary people; and to buy their way out of any legal challenges.

It has often been said that elections have consequences. It’s true. I think it’s no exaggeration to say that our democracy is now suffering the consequences of a Supreme Court majority hell-bent on unraveling our Constitution and placing us at the mercy of a government run by a privileged few…a majority given lifetime appointments by Republican presidents.