Harman on the Hook.

“‘It’s the deepest kind of corruption,’ said a recently retired longtime national security official who was closely involved in the AIPAC investigation, ‘which was years in the making. It’s a story about the corruption of government — not legal corruption necessarily, but ethical corruption.” In a fascinating (and depressing) must-read, Congressional Quarterly‘s Jeff Stein lays bare a byzantine corruption scandal involving AIPAC, the Dubya WH, and Jane Harman, former Democratic chair of the House Intelligence Committee and, some grumbling aside, basically a “team player” for Dubya during the illegal and warrantless wiretaps episode. (Irony of ironies, it appears Harman’s misdeeds were caught on — a court-approved — wiretap.)

Talking Points Memo offers a handy timeline of the case here. Basically, on one level it’s your basic political quid-pro-quo. Harman told an unnamed suspected Israeli agent that she would “waddle into” a federal espionage case then extant against two members of AIPAC and gum up the works somehow. In return, “the suspected Israeli agent pledged to help lobby Nancy Pelosi…to appoint Harman chair of the Intelligence Committee after the 2006 elections.” (It didn’t take: Pelosi instead chose Silvestre Reyes.) “Seemingly wary of what she had just agreed to, according to an official who read the NSA transcript, Harman hung up after saying, ‘This conversation doesn’t exist.’“

Sordid enough. But what’s a mid-oughts scandal without the Dubya angle? After she had been caught on said wiretap, a federal investigation into Harman was approved…for awhile. But it seems Attorney General Alberto Gonzales now knew he had Harman in his pocket, and took advantage accordingly. “According to two officials privy to the events, Gonzales said he ‘needed Jane’ to help support the administration’s warrantless wiretapping program, which was about to be exposed by the New York Times. Harman, he told [CIA Director Porter] Goss, had helped persuade the newspaper to hold the wiretap story before, on the eve of the 2004 elections. And although it was too late to stop the Times from publishing now, she could be counted on again to help defend the program. He was right. On Dec. 21, 2005, in the midst of a firestorm of criticism about the wiretaps, Harman issued a statement defending the operation and slamming the Times, saying, ‘I believe it essential to U.S. national security, and that its disclosure has damaged critical intelligence capabilities.’“

Not that I need to remind anyone here, but Dubya’s use of illegal and warrantless wiretaps would, in more cases, be recognized as an impeachable offense. As it was, the Senate GOP (then in the catbird seat) held firm against hearings, and many of our congressional Dems — Feingold, Leahy, and a few other lonely souls notwithstanding — folded like a house of cards. Now, at least in the case of Harman, we know why.

Update: The NYT weighs in with their side, and it’s TLDR’ed by TPM. And Salon‘s Glenn Greenwald has a good bit of snarky fun with Harman’s recent “road to Damascus” moment regarding wiretaps.

No Better Investment.

“In a remarkable illustration of the power of lobbying in Washington, a study released last week found that a single tax break in 2004 earned companies $220 for every dollar they spent on the issue — a 22,000 percent rate of return on their investment.” A new study by three University of Kansas profs tries to quantify exactly the amount of lucre generated by the lobbyists and influence-peddlers aswarm in Washington for their employers. And the answer? A whole lot. “The paper…examined the impact of a one-time tax break approved by Congress in 2004 that allowed multinational corporations to ‘repatriate’ profits earned overseas, effectively reducing their tax rate on the money from 35 percent to 5.25 percent. More than 800 companies took advantage of the legislation, saving an estimated $100 billion in the process.” [Hattip: Tim C. and Marginal Revolution.]

Hulk Free to Smash Again.

“Mr. Holder said in a statement that ‘I have concluded that certain information should have been provided to the defense for use at trial.'” Hmmm. Why does Clay Davis come to mind? After discovering that agents at Justice and the FBI tried to frame a guilty man, as it were, Attorney General Eric Holder drops the prosecution of 85-year-old former Senator Ted Stevens. “The collapse of the Stevens case was a profound embarrassment for the Justice Department, and it raised troubling issues about the integrity of the actions of prosecutors who wield enormous power over people they investigate.” Uh, ok…but why aren’t we seeing this judicious, otherwise laudable commitment to fair play when it comes to state secrets and victims of extraordinary rendition?

At any rate, as official Washington rushes to embrace Stevens once more, let’s keep the big picture in mind: “[E]ven leaving criminal wrongdoing aside, no one disputes that Stevens accepted hundreds of thousands of dollars worth of home renovations and gifts (remember that massage chair?) from a supporter who had a slew of business interests that Stevens was in a position to affect as a powerful federal lawmaker and appropriator. That’s what we call ‘corrupt’. As Melanie Sloan of Citizens for Responsibility and Ethics in Washington put it, according to The Hill’s paraphrase: ‘Holder’s decision in no way should be viewed as a vindication of Stevens but rather as an indictment of the Justice Department’s inability to do one of its most important jobs.‘” True, that.

Public Service Announcement.

Here’s one to grow on: If you’re looking to represent the little people by taking on a cabinet position in our nation’s government, please deign to pay the taxes you owe on your chauffeurs, nannies, sinecures, and assorted other luxuries. Thanks much.

Also, for what it’s worth, I guess it’s possible that Tom Daschle was really God’s Gift to Health Care Reform, as he was recently made out to be when his nomination tanked. (His ideas seem solid, but, his book aside, we didn’t see that much of that side of him when he was Harry Reid 1.0 for years and years.) But I think it’s just as likely that his strong lobbyist ties would’ve made him ineffectual in the post, and the Daschle-friendly administration — a lot of candidate Obama’s core people were Daschle hand-me-downs — wouldn’t ever have been able to cut him loose. So, all the recent teeth-gnashing aside, this might very well have been a blessing in disguise.

Opening Windows, Closing the Revolving Door.

“‘We are here as public servants, and public service is a privilege,’ Obama said, addressing his White House staff and Cabinet on his first full day in office. ‘It’s not about advancing yourself or your corporate clients.'” Also part of President Obama’s very solid first day: An executive order kicking out the lobbyists and imposing a gift ban on White House employees. “‘We need to close the revolving door that lets lobbyists come into government freely and lets them use their time in public service” to promote their own interests when they leave, the president said.” [Official Order.]

And, in another welcome executive order, the new President also overturned Dubya’s secrecy rules with regards to presidential records, thus making life much easier for historians in the future. “[E]very agency and department should know that this administration stands on the side not of those who seek to withhold information, but those who seek to make it known.” (This also means Pres. Obama only has nine more left to overturn on Dubya’s worst ten.)

Hulk Smashed.

“‘In another state, he would be toast,’ said Charlie Cook, editor of the nonpartisan Cook Political Report. ‘In Alaska, you gotta make him a significant underdog.‘” How’s this for a sign of the times? Ted Stevens, the longest-serving Republican in the Senate (and the only one to famously favor a Hulk tie), is very quickly found guilty on seven felony counts of lying on his non-disclosure forms. As you may remember, the indictments broke in July, and Stevens — asking for a quick pre-election trial — got one.

And yet, despite the desperate entreaties of Senator McCain and the governor of his home state, one Sarah Palin, Stevens has vowed to fight on for re-election next week, thus further boosting the chances of a Dem Senate pick-up in the Last Frontier…and beyond. “‘It’s a horrible year for Republicans, in a horrific fall, and this is yet another horrific event,’ Cook said. ‘This throws them off message; it puts them back on the defensive again. It makes it harder to separate themselves from the party.‘” Well, thanks for that, at least, Senator.

Law Smash Puny Stevens.

The case against him has been building for awhile…and, today, the Hulk tie finally failed him. Longtime GOP Senator Ted Stevens (R-AK) — he of the “Bridge to Nowhere,” terrorist wife, cocaine-fighting Eskimos and “series of tubes” — is indicted with seven counts of making false statements on his financial disclosure forms. “The indictment accuses Stevens, former chairman of the powerful Senate Appropriations Committee, of concealing payments of more than $250,000 in goods and services he allegedly received from an oil company. The items include home improvements, autos and household items.“

Sen. Stevens is up for re-election this year, but given that he was already losing in the polls against the Dem challenger, Mark Begich, it’s a good bet his stepping down early will only help the GOP…if they can find someone to take his place in time (and if Stevens plays ball.)

Obama: No Public Financing.

“‘It’s not an easy decision, and especially because I support a robust system of public financing of elections,’ Obama said in a video message to supporters, circulated by his campaign. ‘But the public financing of presidential elections as it exists today is broken, and we face opponents who’ve become masters at gaming this broken system.’” Sen. Obama announces he will forego public financing for the general election.

Hmm. I was originally hoping the two candidates, based on their respective campaign finance reform bona fides, might come to an agreement that would make public financing work. But it’s become painfully clear that Sen. McCain has been gaming the system thus far, and at this point I wouldn’t trust him as far as I can throw him. The McCain campaign is calling Obama’s decision “a broken promise of staggering dimensions,” but frankly that dog’s not going to hunt. Sen. Obama has not only run a lobbyist-free campaign thus far, but has now even purged the DNC of their taint (give or take a few loopholes.) Meanwhile, the McCain bandwagon is absolutely crawling with lobbyists, and they apparently even feel free to conduct their business with impunity aboard the unfortunately-named “Straight Talk Express.”

Plus, with its enormously successful small-donor, Internet-based model of financing, the Obama campaign has brought new meaning to the term “public financing” anyway. So, while I’d ultimately like to see a public financing system that works, Sen. Obama still has enough credibility on this issue, I think, that his opting out doesn’t trouble me all that much. Put another way, Sen. Obama has a long way to go before he seems as full of it on campaign finance reform as McCain appears these days.

Friends in Low Places.

“I need to know if Stayman is a career or a political appointee…I think we can do something about it, but I’m trying to figure out what is the best way to go about it. I don’t want a firing scandal on our hands.” An e-mail trail published by the Washington Post illustrates how Casino Jack Abramoff used the Dubya White House to remove his enemies, in this case a State Department aide advocating labor reforms in the Northern Marianas. (“ Abramoff’s clients wanted to keep paying immigrants less than the federal minimum wage to work in textile factories.“)

Like a Junkie to the Needle.

“‘Both parties talk a good game on cutting earmarks, but at first opportunity, the House larded up,’ said Stephen Ellis, vice president of the watchdog group. ‘This is just another broken promise.’” With another big defense bill imminent, congressional earmarks are sadly back in vogue. “In the Senate, Lieberman led the way with his participation in 14 requests worth more than $292 million, some of them involving more than one lawmaker, the watchdog group data show. Sen. Carl M. Levin (D-Mich.) made 48 requests, many with colleagues, worth more than $198 million. Sens. Jeff Sessions (Ala.) and Elizabeth Dole (N.C.) led Republicans by participating in requests totaling $188 million and $182 million, respectively.”