Think Progress

Where’s the Backbone?

By David Sirota on Jun 6th, 2005 at 3:11 pm

Where’s the Backbone?

Last week, I wrote a piece in the American Prospect about how the recent stories trumpeting Deep Throat/Watergate highlighted the contrast between the muckraking journalism of eras past and today’s sad state of media affairs. Interestingly, I got a number of positive responses from journalists who are equally frustrated by the situation.

Thankfully, I am not the only one who has tried to give voice to this tragedy. Check out Sen. Hillary Clinton’s (D) courageous comments in the New York Times today.

Abetting the conservative agenda, Clinton said in some of her sharpest language, is a Washington press corps that has become a pale imitation of the Watergate-era reporters who are being celebrated this month amid the identification of the anonymous Washington Post source, Deep Throat. “The press is missing in action, with all due respect,” she said. “Where are the investigative reporters today? Why aren’t they asking the hard questions? It’s shocking when you see how easily they fold in the media today. They don’t stand their ground. If they’re criticized by the White House, they just fall apart. I mean, c’mon, toughen up, guys, it’s only our Constitution and country at stake. Let’s get some spine.”

The reason I said those comments are courageous is because there are very few politicians in Washington willing to give voice to the public’s frustration with the media. Conservatives have made an art form out of intimidating the media — and its time for progressives to fight back by demanding the press do its job, instead of serving as a propaganda machine.




Where are the Other 39 States?

By David Sirota on May 31st, 2005 at 1:55 pm

Where are the Other 39 States?

USA Today’s story about states raising their minimum wages begs a question: why aren’t more following? It is terrific that 11 have done so since 2004 — but where are the rest of the states?

Surely they aren’t expecting the feds to raise the minimum wage anytime soon. The Bush administration has refused to consider serious minimum wage legislation, while Sen. Rick Santorum (R-PA) has tried to eliminate the minimum wage for 7 million people. This, even though economic data shows that corporate profits are rising, while wages are stagnating.

California is a good example of a state that needs to explain why it hasn’t raised its minimum wage recently. The Los Angeles Times reports today that while CEOs at California’s largest 100 public companies saw their compensation rise by almost 20 percent from 2003, the average California worker saw his or her pay rise by less than 3 percent — barely keeping up with inflation. That has at least something to do with the fact that, in 2004, Gov. Arnold Schwarzenegger vetoed minimum wage legislation.




How Congress Really Works

By David Sirota on May 26th, 2005 at 10:29 am

How Congress Really Works »

The discussion in Washington about the recent filibuster “deal” seems to center on the perception that Senate “moderates” have reasserted themselves. This is a nice, pleasant storyline – but it doesn’t seem to be a very accurate assessment of how Washington politics really works. In reality, congressional business is ultimately steered by how involved corporate America is in a given debate.

For instance, on the filibuster issue, the Washington Post noted that “one powerful group largely sitting out the fight is corporate America.” Business leaders were “wary of a strife-torn Senate killing pro-business items.” Thus, America gets a compromise.

On tax reform, it is the same dynamic. After the election, the New York Times published a report about social conservatives who were raising questions about President Bush’s proposal to flatten the tax system. Yet, because corporate America backed the idea, Bush is pressing forward.
More »




One Step Closer to Universal Health Care

WCAX Vermont reports that “the Vermont Senate has given preliminary approval to a sweeping reform of the state’s health care system.” By a vote of 21 to six, “the Senate approved a new program they call Green Mountain Health” that “will provide primary and preventative care to all uninsured Vermonters beginning in July 2006.”

The bill now needs to be ironed out with Vermont House legislators, who passed their own version earlier. But the big question is whether Republican Gov. Jim Douglas will veto the measure. Douglas has significant ties to the health care industry. But does he want to be the governor whose legacy is preventing Vermont from becoming the first state in America to enact universal health care? Stay tuned.




Renewable Rhetoric

By David Sirota on May 17th, 2005 at 10:45 am

Renewable Rhetoric »

The New York Times reports, “President Bush on Monday visited a small plant that turns soybeans into a clean-burning form of diesel fuel.” The visit was designed to cast the president “as deeply interested in backing new, environmentally friendly technologies that would eventually increase energy supplies.”

The event made for good pictures – but that’s about it. Earlier, Reuters reported that the assistant secretary of energy told Congress that Bush “plans to oppose efforts to include a national renewable energy requirement for utilities” in the energy bill. The requirements are key to serious renewable energy development – without forcing companies to use alternative energy sources, there will be no real way to guarantee that America starts getting more of its energy from renewable sources. More »




Pension Insecurity

By David Sirota on May 16th, 2005 at 11:12 am

Pension Insecurity »

Two stories today show just how tenuous more and more Americans’ retirement security is becoming.

USA Today reports that the Pension Benefit Guaranty Corporation – the government’s insurer of corporate pensions – “has moved from about a $10 billion surplus in the late 1990s to a $23 billion deficit in its single-employer insurance program.” The PBGC “estimates underfunding in [America's overall] pension system has reached a record $450 billion.” In other words, companies are refusing to adequately fund their pension, risking more meltdowns a la. United Airlines.

Meanwhile, the LA Times reports that the Securities and Exchange Commission “has found that many pension and 401(k) consultants receive large hidden payments from the investment firms they recommend to retirement-plan clients.” That creates massive conflicts of interest, whereby consultants may be urging pension administrators to put workers’ retirement money in investments the consultant has a financial stake in. More »




Taking the “Public” Out of Public Lands

Land use – and conservation – is a big issue in the Rocky Mountain region, and a provision in the Bush energy bill is touching a raw nerve in the region. The Casper Star Tribune reports that legislative language “which slipped largely under the radar during the recent energy bill debate” may “undermine public involvement on public lands if it is not changed.” Specifically, a section of the 1,000-plus-page energy bill would limit required environmental reviews and solicitation of public comment under the existing National Environmental Policy Act.

In practice, that means oil companies may be able to evade review when moving onto potential drilling sites, and “wastewater discharge from things such as coal-bed methane drilling would not be subject” to current reviews. One local expert said the bill, if passed by the Senate, “would have devastating effects on ranchers and farmers in the Powder River Basin.”

Much of this stems from the so-called “Peterson amendment” — named for Congressman John Petersen (R-PA), who introduced the language that seeks “to exclude the public from the decision-making process.” Big surprise – oil and gas interests are among Petersen’s top campaign contributors.

It’s just another example of how conservatives’ close ties to corporations are increasingly putting them at odds with their base constituencies in rural America. And it’s not just limited to Wyoming. In Colorado, for instance, a controversy is brewing over the death of a bill to force oil and gas companies to pay more for harming land, and over a proposal to allow drilling on the sacred Rocky Mountain front.




Note to CEOs: Stand By Your Tax Returns

By David Sirota on May 12th, 2005 at 1:54 pm

Note to CEOs: Stand By Your Tax Returns

For years, corporations have fought controversial battles to gain the same legal rights as citizens. But now, having been largely successful, they want to evade the responsibilities that come with those rights. As the Wall Street Journal reports, Corporate America is fighting a proposal to force CEOs to officially certify their companies’ tax returns. It’s a commonsense measure: if citizens can be held liable for falsifying their tax returns, so should corporations and their executives. That kind of responsibility might force companies to be more honest, and stop ripping off America by evading taxes.




What Should Ashcroft Call His New Firm?

By David Sirota on May 2nd, 2005 at 10:42 am

What Should Ashcroft Call His New Firm?

John Ashcroft is cashing in his government exeprience and opening a corporate lobbying firm. Send in your nominations for what Ashcroft should call his new firm.




Pro-Abusive Tax Shelters

By David Sirota on Mar 30th, 2005 at 4:56 pm

Pro-Abusive Tax Shelters

The Great Falls Tribune today shows exactly how far to the right the conservative movement has moved. Right-wing legislators in Montana have come down on the side of abusive tax shelters, voting against commonsense legislation to close these loopholes bening taken advantage of by tax evaders.

As the Tribune notes, the bill they are opposing “goes after illegitimate income-tax shelters by requiring businesses and individuals to file additional information on transactions that may be taxable. It says those who fail to provide such information shall pay a $10,000 fine for an individual and $50,000 for a business. It also attempts to crack down on those avoiding capital-gains taxes on real estate sales. [And] it targets Montana people or businesses who establish residency in a state without income taxes for the purpose of selling property, so they don’t have to pay Montana income taxes.”

So basically, if you are against this, as the right-wingers are, you are actually FOR abusive tax shelters that rip off regular taxpayers and rob state government of revenues it needs for basic services. How much farther right can these people go before they want to officially turn the government over to special interests and the wealthy?




Servicing the Rich

By David Sirota on Mar 30th, 2005 at 10:48 am

Servicing the Rich

In today’s New York Times story about how America loses more than a quarter trillion dollars in tax revenue each year to cheating, the paper claimed, “The I.R.S. said that 80 percent of taxes owed but not paid by individuals were a result of underreporting of income, often by people working in the service sector.”

It was hard for me to believe that 80 percent of about $200 billion was being stolen mostly “by people working in the service sector” (waiters underreporting tips, fast food workers underreporting income, etc.), as the Times suggests. If that were the case, I would think service sector workers in America would be far more well-off than they are today.

So I went to the primary source, the IRS’s new report, and found that yes, it is true that “noncompliance from underreporting account for more than 80%” of the missing tax revenue. However, page 10 of the report breaks down that statistic a bit more. It shows specifically that the underreporting of “business income” accounts for about $100 billion of the tax gap, and underreporting of “wages, salaries, tips, etc.” account for just $18 billion. “Business income,” remember, is defined as money made by sole proprietorships, S corporations, etc. The category includes wealthy lobbyists, sports agents and high-paid political consultants — not exactly what you think of when you hear the phrase “working in the service sector.” In fact, I can find absolutely no data in the IRS report which justifies the New York Times suggesting that the problem “often” emanates from those “working in the service sector.”

What’s my point? Simple: the media often reinforces dishonest stereotypes designed by conservatives to help the right-wing pursue its ideological agenda. The New York Times’s error plays into the right-wing’s “persecuted rich” myth, reinforcing the idea that the rich are overtaxed, and it is working class people who are ripping off the system.




18 Senators Have Questions to Answer

By David Sirota on Mar 28th, 2005 at 5:50 pm

18 Senators Have Questions to Answer

In 1991, 18 Senators who still serve today voted for a bill by Sen. Al D’Amato (R-NY) to limit the interest rate credit card companies can charge to 14 percent (the measure was consequently stripped out of the final bill). Those same 18 Senators voted a few weeks ago against a bill by Sen. Mark Dayton (D-MN) to limit the interest rate credit card companies can charge to 30 percent.

Why would 18 Senators, including co-sponsors of the original measure, vote for a tougher pro-consumer measure in 1991, and then vote against a weaker measure in 2005? Could it be that the more than $2 million these Senators took from the credit card/banking industry in the interim made them change their mind? Or, was there another reason? I’d say the public deserves an answer.




Grover Norquist: Increasingly Irrelevant

By David Sirota on Mar 28th, 2005 at 10:21 am

Grover Norquist: Increasingly Irrelevant

Add conservative governors in Colorado, Nevada, and Idaho to the list of conservatives who are abandoning the ultra-right tax orthodoxy of Grover Norquist, and instead are raising taxes because they live in the real world.

“The federal cuts have been very difficult for states to manage,” said economist Bert Waisanen of the National Conference of State Legislatures. “Governors have to run programs like Medicaid, No Child Left Behind, homeland security. But there is less and less money coming from Washington to pay the bills.”

Norquist might scream at these governors, but he is obviously becoming increasingly marginal. That’s what happens when you get so insulated in Washington’s power structure you lose all touch with reality.




Schiavo and Congress: The Rocky Reaction

The Rocky Mountain west is known for its strong streak of libertarianism, and that has come out in full force over the Schiavo case.

In Casper, Wyoming (the home state of Vice President Dick Cheney), the local newspaper’s editorial board wrote “Congress doesn’t belong at Schiavo’s bedside any more than Schiavo belongs in an appearance before a Senate panel…The same fate that eventually awaits Terri Schiavo awaits us all, and there’s little Congress can — or should — do about it.”

In Boise, Idaho, it was the same. The Idaho Statesman chastised its congressional delegation for supporting Congress’s action in the case. “Our politicians should not try to head off human tragedy case by case,” wrote the editorial board. “When they do, they injure the political process. This sets a disquieting precedent, in which right-to-life decisions are subject to political whim.”

The Great Falls Tribune in my home state of Montana wrote “This heartbreaker is made even more wretched by the infusion of politics…We doubt most families make end-of-life decisions based on their political parties. Politicians should butt out of this case.”

Even the Salt Lake Tribune, from archconservative Utah, said House Majority Leader Tom Delay shouldn’t use the Schiavo case to “hide behind God” and distract attention from the ethics charges surrounding him.

Remember — this is the opinion in some of the most conservative parts of the country. And it shows exactly how conservatives in D.C. are increasingly disconnected from the American public.




Stopping the Corporate Tax Rip Off

By David Sirota on Mar 20th, 2005 at 5:38 pm

Stopping the Corporate Tax Rip Off

Montana State Senator Jim Elliott (D) has a new op-ed in this week’s Queen City News in which he shows how multinational companies rip off small states. “In 2002, 40 percent of the largest 500 companies doing businesses in Montana paid less than $500 in Montana corporate income taxes,” Elliott notes. “Sixty-five of those companies paid less than $500 for four years running.”

As Chairman of the Senate Taxation Committee, Elliott made a formal request for income tax data for the 500 companies ranked by the amounts of their Montana sales. And though he is still fighting a court battle to make the companies’ names public, he managed to get a list of revenues-to-taxes paid that shows how much of a problem tax evasion has become.

Make no mistake about it – this is a national problem. The General Accounting Office estimates that the federal government lost up to $85 billion over the past decade to improper tax shelters. And the Multistate Tax Commission estimates the states lost $12 billion in corporate taxes in 2001 alone.

That’s why American Progress’s new tax reform plan closes corporate tax loopholes. While President Bush and the right-wing may want to avoid a discussion of how corporations rip off America, any serious tax plan must deal with this growing problem.




Pictures Worth 11,000 Years

By David Sirota on Mar 16th, 2005 at 7:15 am

Pictures Worth 11,000 Years

President Bush has all but refused to acknowledge that global warming exists, much less is a real problem. And his right-wing allies in Congress have followed his lead, voting down proposals to curb greenhouse gas emissions.

Now the evidence is becoming truly shocking. Just weeks after Bush’s longtime political ally broke ranks with the White House and acknowledged the problem of global warming, photos now show that Mt. Kilimanjaro has been stripped of its snowcap for the first time in 11,000 years.

Here is how Kilimanjaro’s peak has looked for the last 11,000 years:

Here is how Kilimanjaro’s peak looks today:

Maybe if President Bush saw these photos, he’d smarten up, and start joining most of the other industrialized nations in taking this threat seriously.




The Renewable Movement

By David Sirota on Mar 13th, 2005 at 7:57 pm

The Renewable Movement

The Helena Independent Record reports that Montana is on the verge of joining more than a dozen other states that require that a certain percentage of energy to come from renewable sources. Specifically, a bill that recently passed the state senate “would require that 5 percent of the state’s electricity be produced from renewable sources in 2008, 10 percent by 2010, and 15 percent by 2015.”

I’m pretty excited about this personally – when I lived in Washington, D.C. I used a service to have my residential energy be partially generated by wind. And now, if this bill passes, I’ll be able to do the same here in Helena.

But this legislation is good not just because I like it – its serves three very distinct purposes. First and foremost, its good for foreign and environmental policy. As the newspaper notes, the bill “is a rational response in a country that remains addicted to energy sources that are expensive, polluting, and, in the case of oil, dependent on foreign sources.”

Secondly, it is good for rural economic development, because it would create a new market for wind and solar farms (usually in vast open spaces) and for agricultural products like ethanol. And make no mistake about it – Montana has a lot of wind and corn for ethanol (the state, for instance, is estimated to have the fifth best wind-power resource in the country).

And finally, it promises to bring down electricity rates for consumers. As the newspaper notes, “a study of states with significant wind power turbines in place shows that they consistently lower residential power bills.” Additionally, reducing demand for other traditional sources of energy should lower the prices for those materials.

The bill, of course, is opposed by the energy companies, because they don’t like mandates, no matter how practical they are. But it sure looks good for everyone else.




Doctors Find Their True Enemy

By David Sirota on Mar 11th, 2005 at 11:45 am

Doctors Find Their True Enemy

The Bush administration has waged a campaign to try to convince doctors that trial lawyers are to blame for their skyrocketing malpractice insurance rates. That assertion, of course, has no basis in reality.

Now, in Washington State, doctors are getting smart. As the Seattle Post-Intelligencer reports, “After years of their lobbyists calling for caps on plaintiff’s damage awards, squeezing lawyers’ contingency fees and trying to throw litigation roadblocks in the way of injured patients and their families, the state’s doctors may have found a legitimate way to cut medical malpractice premiums: Get their malpractice insurance company to quit gouging them.”

Specifically, State Insurance Commissioner Mike Kreidler announced Wednesday that he had ordered the state’s largest medical malpractice insurer to refund more than $1.3 million plus interest in excess premiums charged in 2003. The action came one day after Kreidler’s office released a report that “appears to give lie to allegations of a ‘crisis’ in medical malpractice.”

Don’t expect President Bush to have a change of heart on his push for malpractice “reform” (a.k.a. limiting victims’ rights) – he and his fellow conservatives have taken millions from the insurance industry.




Tax Cuts Over Quality of Life

By David Sirota on Mar 9th, 2005 at 2:57 pm

Tax Cuts Over Quality of Life

Take a quick look at USA Today’s politics page and you will see two stories that tell it all about the right wing’s radical agenda. The first story is about how conservatives want “to cut taxes and trim spending” as they prepare for budget battles on Capitol Hill. They are being led by right-wing-radio-talk-show-host-turned-Congressman Mike Pence (R.), who heads a group of the House’s most fringe radical elements.

The very next story down on USA Today’s page is about a report from the nation’s civil engineers that notes, “crowded schools, traffic-choked roads and transit cutbacks are eroding the quality of American life.” Those problems, not surprisingly, have been exacerbated by the same massive federal budget cuts that conservatives want to keep in place in the name of tax cuts.

Better quality of life for all Americans, or tax cuts for the rich? The right wing has, unfortuntely, made its choice.




The Tax Contrast

By David Sirota on Mar 8th, 2005 at 11:01 am

The Tax Contrast »

It is interesting how conservatives and progressives are switching roles lately. In Montana, progressive Gov. Brian Schweitzer has said he will do everything he can to prevent tax increases because he believes he can manage the state more efficiently. Part of that management strategy involves his announcement yesterday of a comprehensive plan to aggressively go after tax cheats, and close abusive tax loopholes. As Schweitzer said, “Montana’s hardworking and law-abiding citizens do not deserve to be ripped off by high net worth individuals and multistate corporations who aren’t playing by the rules.”

In Indiana, on the other hand, a conservative governor is doing exactly the opposite. Gov. Mitch Daniels (R.), formerly President Bush’s budget director, is pushing a 29 percent income tax increase on his state’s residents. Worse, he’s raising taxes at the same time he’s also pushing a “tax amnesty” (read: tax cheaters bill of rights) through the legislature. According to the Indianapolis Star, Daniels’ bill “waives unpaid interest, penalties and fees” from those who owe back taxes or who are cheating on their taxes. More »




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