“On another tape, Pete Kott, the former Republican speaker of the Alaska House of Representatives, crowed as he described beating back a tax bill opposed by oil companies. ‘I had to cheat, steal, beg, borrow and lie,’ Kott said. ‘Exxon’s happy. BP’s happy. I’ll sell my soul to the devil.’” The WP surveys the sinkhole of corruption engulfing Alaska state politics, and the federal probe that threatens to swallow the state’s long-serving Senator, Ted Stevens. “‘It was common knowledge that everything was corrupt,’ said Ray Metcalfe, a former Republican legislator…’It was common knowledge, but nobody wanted to talk about it.‘”
Tag: Corporate Welfare
Dont give me that do goody good bulls**t.
Score another one for legalized corruption (and lament anew what passes for Democratic leadership these days): Senate Majority Leader Harry Reid tells private-equity firms they don’t need to fear a tax hike this year. “[P]rivate-equity firms — whose multibillion-dollar deals have created a class of superwealthy investors and taken some of America’s large corporations private — hired dozens of lobbyists, stepped up campaign contributions and lined up business allies to wage an unusually conspicuous lobbying blitz [against a tax hike]…Several prominent lawmakers expressed surprise to find that the managers’ profits, known as carried interest, were taxed as capital gains, for which the rate is usually 15 percent. That is less than half the 35 percent top rate paid on regular income.“
Hessians Accomplished.
Blackwater grows murkier: It seems the private security firm in Iraq has a long and sordid history of troubling incidents to its name, and that the initial State Dept. report on the firefight of a few weeks ago was originally written by a Blackwater contractor. (Indeed, the State Department tried to intervene in today’s Congressional testimony by Blackwater head Erik Prince until forced to back down as a result of public pressure.)
How deep does this rabbit hole go? Salon‘s Ben Van Heuvelen traces the financial connections between Blackwater and the Bushies, while P.W. Singer, an expert on private contractors, explains what Blackwater has cost us all: “When we evaluate the facts, the use of private military contractors appears to have harmed, rather than helped, the counterinsurgency efforts of the U.S. mission in Iraq, going against our best doctrine and undermining critical efforts of our troops…According to testimony before the House Committee on Oversight and Government Reform, the Defense Contract Audit Agency has identified more than a staggering $10 billion in unsupported or questionable costs from battlefield contractors — and investigators have barely scratched the surface.”
Imperial Krongard?
“Since your testimony at the Committee’s hearing on July 26,2007, current and former
employees of the Office of Inspector General have contacted my staff with allegations that you
interfered with on-going investigations to protect the State Department and the White House
from political embarassment…The allegations made by these officials are not limited to a single unit or project within your office.” In a detailed and damning letter to the suspect, Henry Waxman’s House Committee on Oversight and Government Reform announces it is investigating attempts by the Dubya State Department’s Inspector General, one Howard J. Krongard, to shield the administration from political trouble. “One consistent element in these allegations is that you believe your foremost mission is to support the Bush Administration, especially with respect to Iraq and Afghanistan, rather than
act as an independent and objective check on waste, fraud, and abuse on behalf of U.S.
taxpayers.” Innocent until proven guilty, of course, but this sounds all too plausible, given what we’ve already seen from this bunch.
Cronyism > Competition.
Where does the GOP’s commitment to free market fundamentalism reach its limit? Where there’s money to be made, of course. The Post looks into the rise of no-bid contracts under Dubya. “A recent congressional report estimated that federal spending on contracts awarded without ‘full and open’ competition has tripled, to $207 billion, since 2000, with a $60 billion increase last year alone.”
Spoils Spoiled.
As war profits begin to dry up, the Army announces it is finally ending Halliburton’s exclusive deal to provide logistical support to US troops, in favor of a multi-company approach that will hopefully spur some degree of price competition. Good news, sure, but this newly rational stance against Cheney’s pet corporation is coming more than a little bit late in the game: “The decision on Halliburton comes as the U.S. contribution to Iraq’s reconstruction begins to wane, reducing opportunities for U.S. companies after nearly four years of massive payouts to the private sector….No contractor has received more money as a result of the invasion of Iraq than Halliburton, whose former chief executive is Vice President Cheney.“
Embezzle for Freedom.
“Unbeknownst to almost all of Washington and the financial world, Bush and every other President since Jimmy Carter have had the authority to exempt companies working on certain top-secret defense projects from portions of the 1934 Securities Exchange Act. Administration officials told BusinessWeek that they believe this is the first time a President has ever delegated the authority to someone outside the Oval Office”. In related news (and as seen at Ed Rants), Dubya has apparently, on the sly, “bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations.”
The Softer Name of Revenue.
“‘If you want to look at why the Republican Party is down in the dumps and why the president’s numbers are down in the dumps,’ Sen. Charles Schumer (D-N.Y.) said this afternoon, ‘it’s that the American people are beginning to understand that when they talk about tax cuts, they’re not talking about helping middle-class people. They’re talking about helping the wealthiest corporations and individuals among us.’” True, that. And, since Dubya signed the dividend tax giveaway extension into law this afternoon, the Dems now have another potent issue in their arsenal through November. “‘Today’s really a good day to be a millionaire, but it’s a bad day if you want to be a millionaire,’ Senate Democratic Leader Harry Reid (Nev.) said at a news conference minutes after Bush signed the bill.”
The KBR Relocation Authority.
I’m a bit late on this one: In an ugly confluence of several of this administration’s shady dealings, CheneyCo.’s KBR/Halliburton — its attempts at continued war profiteering faltering — recently won a $385 million contract to build immigrant detention centers for the Dept. of Homeland Security. “The contract, which is effective immediately, provides for establishing temporary detention and processing capabilities to augment existing ICE Detention and Removal Operations (DRO) Program facilities in the event of an emergency influx of immigrants into the U.S., or to support the rapid development of new programs.” Um, new programs? (By way of Supercres.)
Schisms aplenty.
“‘I can’t believe I’m in a conservative hall listening to him say [Bush] is off course trying to defend the United States,’ Sorcinelli fumed.” As a result of his questioning Dubya’s NSA powergrab, right-wing civil libertarian Bob Barr finds himself persona non grata at the annual Conservative Political Action Conference. Similarly in the doghouse with the powers-that-be is right-wing pollster Frank Luntz, due to a longstanding feud with John Boehner — Luntz backed the wrong horse in ’98. And, speaking of Boehner, the new Majority Leader is apparently causing mild tremors along another GOP faultline, the one between evangelicals and pro-business stooges. (Boehner numbers among the latter.) Could this all be the prelude to a ’06 crack-up of ’94 proportions?