January 29, 2013 archive

A Half Billion Dollar Tax Gift to BioTech Company

Cross posted from The Stars Hollow Gazette

Unbeknownst to most of the legislators and public, tucked very neatly in section 632 (pdf) of the “fiscal cliff” bill, was provision that gave the world’s largest biotechnology firm, Amgen, a drug maker that sells a variety of medications, a half billion dollar gift that allows the company to evade Medicare cost-cutting controls by delaying price restraints on a class of drugs used by kidney dialysis patients for two years. Meanwhile in December, Amgen had been fined  $762 million in civil and criminal penalties for illegal marketing of one of its other drugs. This pricing break would wipe out two thirds of those fines.

This undercover handout of taxpayer’s dollars during a so-called “fiscal crisis” was reported in depth by The New York Times investigative reporters, Eric Lipton and Kevin Sack, who also revealed the “architects” of this giveaway, Republican Minority Leader Mitch McConnell, Democratic Senator Max Baucus, chair of the Senate Finance Committee, and that committee’s ranking Republican, Orrin Hatch.

Amgen has deep financial and political ties to lawmakers like Senate Minority Leader Mitch McConnell, Republican of Kentucky, and Senators Max Baucus, Democrat of Montana, and Orrin G. Hatch, Republican of Utah, who hold heavy sway over Medicare payment policy as the leaders of the Finance Committee.

It also has worked hard to build close ties with the Obama administration, with its lobbyists showing up more than a dozen times since 2009 on logs of visits to the White House, although a company official said Saturday that it had not appealed to the administration during the debate over the fiscal legislation.

The measure flies in the face of attempts to curb the enormous expense of dialysis for the Medicare program by reversing incentives to over-prescribe medication. But that didn’t deter the “three amigos” from sneaking in the provision to their generous benefactor:

Amgen’s employees and political action committee have distributed nearly $5 million in contributions to political candidates and committees since 2007, including $67,750 to Mr. Baucus, the Finance Committee chairman, and $59,000 to Mr. Hatch, the committee’s ranking Republican. They gave an additional $73,000 to Mr. McConnell, some of it at a fund-raising event for him that it helped sponsor in December while the debate over the fiscal legislation was under way. More than $141,000 has also gone from Amgen employees to President Obama’s campaigns.

What distinguishes the company’s efforts in Washington is the diversity and intensity of its public policy campaigns. Amgen and its foundation have directed hundreds of thousands of dollars in charitable contributions to influential groups like the Congressional Black Caucus and to lesser-known groups like the Utah Families Foundation, which was founded by Mr. Hatch and brings the senator positive coverage in his state’s news media.

Amgen has sent large donations to Glacier PAC, sponsored by Mr. Baucus in Montana, and OrrinPAC, a political action committee controlled by Mr. Hatch in Utah.

Not surprisingly when the news of this giveaway hit the paper, it enraged a bipartisan group of legislators to repeal this section.

U.S. Rep. Peter Welch (D-Vt.) filed legislation this week to eliminate the exemption for a class of drugs, including Amgen’s Sensipar, that are used by kidney dialysis patients. [..]

“Amgen managed to get a $500-million paragraph in the fiscal-cliff bill and virtually no one in Congress was aware of it,” Welch said. “It’s a taxpayer ripoff and comes at a really bad time when we’re trying to control healthcare costs. Amgen should not be allowed to turn Medicare into a profit center.” [..]

Other co-sponsors of the bill seeking repeal include House Republican Richard Hanna of New York and two House Democrats, Jim Cooper of Tennessee and Bruce Braley of Iowa.

Rep. Welch sat down with Bill Moyers on Moyers & Company to discuss Amgen’s “sweetheart deal”



The transcript can be read here

“When there is this back room dealing that comes at enormous expense to taxpayers and enormous benefit to a private, well-connected, for-profit company, we’ve got to call it out,” Welch tells Bill. “Those members of Congress who are concerned about the institution, about our lack of credibility, about the necessity of us doing things that are in the public good as opposed to private gain, we’ve got to call it out.”

The Legacy of Aaron Swartz

Cross posted from The Stars Hollow Gazette

The White House announced a National Day of Civic Hacking, June 1 – 2, 2013, as the internet continues to mourn the hacker and activist, Aaron Swartz, who died of suicide at age 26. Aaron’s partner Taren Stinebrickner-Kauffman, executive director and founder of SumofUs.org joins host Chris Hayes; Lawrence Lessig, Roy L. Furman Professor of Law at Harvard Law School; Susan Crawford, professor for the Center on Intellectual Property & Information Law Program at Carodozo School of Law; and Ta-Nehisi Coates, senior editor for The Atlantic on the Up with Chris panel to discuss the legacy of Aaron Swartz.

ROTFLMAO: Tax the Banks to Punish Obama

Cross posted from The Stars Hollow Gazette

Seriously, you can’t make this stuff up.

Dave Camp Bank Tax Bill Would Punish Obama-Friendly CEOs

by Zach Carter and Ryan Grim, The Huffington Poat

WASHINGTON — House Ways and Means Committee Chairman Dave Camp (R-Mich.) is considering legislation that would significantly increase taxes for the nation’s largest banks while providing tax breaks to struggling homeowners. [..]

The bill would significantly strengthen the Volcker Rule, which bans banks from speculating in securities markets with taxpayer money. The Volcker Rule’s implementation has been delayed as bank lobbyists have flooded regulatory agencies in Washington, pillorying the ban with loopholes. Hefty tax burdens for proprietary trading would reduce bank incentives to engage in the risky activity.

Camp’s legislation also would permanently establish a homeowner aid plan advocated by former Rep. Brad Miller (D-N.C.), who retired this month. When banks grant homeowners mortgage relief, the IRS considers the debt-reduction taxable income. As a result, struggling homeowners can face an unmanageable tax burden. A $50,000 debt reduction can spark an $18,000 tax bill — money that borrowers struggling to avoid foreclosure simply do not have. Miller successfully lobbied to include a one-year fix on the tax policy in the fiscal cliff deal. Camp’s legislation would permanently end the tax policy.

Steve Benen at The Maddow Blog aptly notes that “hell hath no fury like a House Ways and Means committee chairman scorned” but points out Camp’s “big deal” won’t impress the bank lobby:

Camp sent an angry letter to the Business Roundtable a month ago, and now Republicans are saying if there must be new revenue, it should be “on their backs.”

How big a deal is Camp’s bill? I think it’s safe to say the bank lobby won’t be impressed.

   Camp’s new bill would harvest government revenues from complex financial transactions involving derivatives, some of which figured prominently in the 2008 banking collapse. Although the 2010 financial reform legislation would curb some excesses in the derivatives market, the legislation isn’t yet fully implemented, and leaves much of the market unregulated. Financial reform advocates have urged new taxes on derivatives to deter excessive risk-taking by big banks. […]

   Camp’s bill would establish a new tax regime for derivatives, requiring banks to declare the fair market value of the products at the end of each year. Any increase in value would be considered corporate income, subject to taxation. It’s a more aggressive tax treatment than Wall Street enjoys for either derivatives or for trading in more traditional securities. […]

   The bill would significantly strengthen the Volcker Rule, which bans banks from speculating in securities markets with taxpayer money. The Volcker Rule’s implementation has been delayed as bank lobbyists have flooded regulatory agencies in Washington, pillorying the ban with loopholes. Hefty tax burdens for proprietary trading would reduce bank incentives to engage in the risky activity.

How serious is Camp about this? It’s hard to say at this point, though I suspect it’s mostly about posturing and political chest-thumping. Camp wants to send a message that he’s displeased and see this as a vehicle. Even if the committee chair got serious about this, I imagine other Republicans would intervene to stop its progress.

Benen thinks that in the aftermath of Pres. Obama’s reelection the business community see him as “a leader who is going nowhere” but “is reaching out to them.” At the same time they view the Republicans as untrustworthy and increasingly reckless.

But seriously, folks, the Republicans are threatening to tax the banks and help stressed homeowners as a “payback” for supporting Pres. Obama. Oh, please, let them.

ROTFLMAO

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Congressional Game of Chicken: The Last Word on Filibuster Reform

Cross posted from The Stars Hollow Gazette

Tom Harkin: Filibuster Reform Failure Hamstrings Obama Agenda

by Michael McAuliff

Sen. Tom Harkin (D-Iowa) warned President Barack Obama that he “might as well take a four-year vacation” if the Senate fails to pass real filibuster reform — and the plan being unveiled Thursday by Senate leaders doesn’t qualify, the veteran lawmaker said. [..]

“Does it help a little bit? Anything helps around here,” Harkin said of the leaders’ filibuster plan. “It still will provide a system where people can filibuster and they don’t even have to come here.” [..]

“I said to President Obama back in August … and I said to him the night before the election, I said to him, ‘Look, if you get reelected, if we don’t do something significant about filibuster reform, you might as well take a four-year vacation,'” Harkin said. “This is not significant.”

The president is left with few options, Harkin added.

“He can go out and give wonderful speeches and things like that, but with the House in the hands it’s in and the fact that in the Senate now you have to have 60 votes to pass anything, well, I dare say that Obama’s package — his very aggressive proposals — will not get very far,” said Harkin.

I will give the last word on filibuster reform to MSNBC “The Ed Show” host Ed Schultz:

Is Harry Reid really a Democrat?

Cartnoon

On This Day In History January 29

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

January 29 is the 29th day of the year in the Gregorian calendar. There are 336 days remaining until the end of the year (337 in leap years).

On this day in 1845, Edgar Allan Poe’s famous poem “The Raven,” beginning “Once upon a midnight dreary,” is published on this day in the New York Evening Mirror.

“The Raven” is a narrative poem by American writer Edgar Allan Poe, first published in January 1845. It is often noted for its musicality, stylized language, and supernatural atmosphere. It tells of a talking raven’s mysterious visit to a distraught lover, tracing the man’s slow descent into madness. The lover, often identified as being a student, is lamenting the loss of his love, Lenore. Sitting on a bust of Pallas, the raven seems to further instigate his distress with its constant repetition of the word “Nevermore”. The poem makes use of a number of folk and classical references.

Poe claimed to have written the poem very logically and methodically, intending to create a poem that would appeal to both critical and popular tastes, as he explained in his 1846 follow-up essay “The Philosophy of Composition”. The poem was inspired in part by a talking raven in the novel Barnaby Rudge: A Tale of the Riots of ‘Eighty by Charles Dickens. Poe borrows the complex rhythm and meter of Elizabeth Barrett‘s poem “Lady Geraldine’s Courtship”, and makes use of internal rhyme as well as alliteration throughout.

Now That It’s Confirmed It Is All Over For Obama, What About Global Warming?

There is a bit of snark in claiming Tom Harkin’s dictum that failure to reform filibuster rules in the Senate ends any hope meaningful accomplishment for the Obama Administration is supported by Krugman’s analysis that says it was all over anyway with Republicans owning the House – but not nearly as much as sane people would hope.

Not that there was much to hope for from the Obama Administration in any case.

From what we think we know (humans know very little but we are all sure we know a lot) global warming [I prefer that nomenclature to the weasel wording of “climate change”] is a potent threat to all life on the planet akin to the Great Dying 250 million years when all life was nearly exterminated.

Five networks interview Chris Christie about Hurricane Sandy — and they’re all afraid to mention global warming

http://www.salon.com/2013/01/1…

The imaginary Robin Hood could not have shot an arrow straighter or truer to pierce the heart of the frivolity and hypocrisy of the mass media than David Sirota did with this paper missile.  Little wonder Sirota has so many enemies even among the negligible number of actual liberals.

Is there any hope then?

– Sure there is.

On the day you die, you can hope you won’t if you are still at all sentient.

Not likely it will do much good but you are always allowed hope.

Best, Terry

Late Night Karaoke

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Can and do parse my comments and diaries for content which does now echo the feel good propaganda distrationary nature of feel good lamestream commmercial for profit/propaganda/what/how you “vill” think news.

Am I that disgusted by the current plight of the human sheeple condition?   Yes I am.  Do I see solutions?  Well yeah but the message gets lost in the din that is the world is gonna end like tomorrow.

Oh, look, it’s a cute kitty.

WTF can’t you people focus on this end of the world shit or not.