Tag: tax breaks

Nov 06

Economic Development: A Money Hole

Recently Amazon decided to open a second headquarters away from Seattle and started a bidding war among US and Canadian cities. The company is spending over $5 billion dollars on this campaign which also includes a list of demands. So far their have been 238 cities offering a variety of incentives to entice the retail …

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Jan 29

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.”

Apr 18

The People Ignored or Ignore?



Obama’s Journey: All Aboard!!!!

“All aboard?” The conductor cries out.  The people, men, women, and children file in.  The train fills quickly.  Finally, after what are only mere minutes, the engine turns.  Steam, or today, diesel fumes, billow out the pipes.  We are off on a road of no return. It is another election season. In truth, these never really begin nay end.  The cycle is as the chug-chug of any locomotive; it is continuous, monotonous, a wearisome drone.  The series starts as it always does, with hope, dreams of change, and the catechetic realization that the Messiah has come.  Soon we see this redeemer is but a man or woman, a meager mortal.  He, be he the President of the United States, the Libyan “Leader,” the “boy next door,” the “good girl,” you or me is not the savor we imagined.  

Sep 10

Disabled Vet: Contractors Should Be for Cafeteria Services That’s It

We had a great time last night in a Q+A with John Waltz, a disabled veteran and Progressive who’s running for Congress in Kentucky’s 4th district. This answer cracked me up and at the same time made me yell out.. RIGHT ON!

Spandan Chakrabarti John, another question about the military, specifically defense contractors. I understand some are needed, but how do you view the Bush era explosion in defense contracting and contractors who operate outside the UCMJ, and is there a way to rein them in?

John Waltz  When you privatize military functions, you’re creating an incentive, specifically a profit, to go to war and stay in war. Use of military contractors should be kept to an absolute minimum. Maybe cafeteria services and that’s about it.

The full Q+A is below the fold

Crossposted to the Daily Kos and Progressive Electorate