June 22, 2005
Our Party
The Democratic Party has a long and proud history of representing and protecting the interests of working Americans and guaranteeing personal liberties for all. One of the places we articulate our beliefs is in the Party's National Platform, adopted every four years by the Delegates at the National Convention.
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Georgia
Georgia, yay.
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Set your Tivo
Governor Dean will be on the Daily Show with Jon Stewart this Thursday at 11pm Eastern. The show will re-air at 1am, 10am, and 8pm on Friday.
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Twenty-three steps to a stronger democracy
In response to the widespread stories of voting problems in Ohio during the 2004 election, the DNC's Voting Rights Institute conducted a comprehensive, five-month study to learn exactly what went wrong in the state.
The resulting report was released today. The VRI's research and investigative team found major voting problems and serious disparities in the experiences faced by different groups of voters. (For example, African-Americans waited nearly three times as long on average as whites to vote.)
As Governor Dean said when introducing the report at a press conference this morning, the purpose of the study was not to challenge the results of the election. But the widespread problems found by the VRI team do require immediate action.
The report lays out 23 specific recommendations on how we can protect the right of every American to vote and have that vote count. These recommendations cover voting equipment, training for poll workers, uniform standards, and much more.
Check out the full report to learn more.
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Senate Democrats Fight for an Independent Judiciary
As the Republican-controlled Congress returns to session on Monday, it seems clear that they will continue the abuses of power that they have pursued with reckless abandon up to this point. Republicans are planning to use the "nuclear option" to obliterate constitutional checks and balances and force confirmation of Bush's extremist judicial nominees. At the same time, Congressional Republicans continue to shield House majority leader, Tom DeLay, from his ethics and campaign finance scandals.
Novak: Republicans Planning To Employ "Nuclear Option." "Senate Republican leaders have decided to begin their use of the 'nuclear option' — forcing confirmation of President Bush's judicial nominations with a majority Senate vote — on an African-American woman blocked by Democrats from a federal judgeship… Republican leaders considered waiting to use drastic tactics against a possible filibuster until Bush made his first Supreme Court nomination. They decided, however, to launch the offensive about a month from now by trying to confirm Brown." [Novak, townhall.com, 2/5/05]
Cornyn Said Frist Is Going Ahead With Nuclear Option. "Senator John Cornyn, a Republican member of the Judiciary Committee, tells us his party has the 51 votes necessary to implement the rule change and that Mr. Frist is getting ready to do just that." [Wall Street Journal, Editorial, 2/1/05]
Frist and Congressional Republicans Are Overreaching With Nuclear Option. "Today, some legal analysts believe that the Senate Republicans are poised to overreach, just as FDR did - in this case, by denying Democrats a traditional Senate parliamentary weapon, the right to filibuster. It would require a ruling from the presiding officer, Vice President Cheney. It was Sen. Trent Lott (R., Miss.) who in 2003 nicknamed this prospective move 'the nuclear option.' And the GOP, notably Senate leader Bill Frist (who has White House aspirations, and thus needs to please conservatives), is under pressure to nuke." [Philadelphia Inquirer, 3/27/05]
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Tom DeLay: Out of Touch, Out of Control
Meet Rep. Tom DeLay (R-TX), the man Republicans have chosen as their Majority Leader in the House of Representatives.
Tom DeLay is at the center of a bewildering array of investigations into corruption, abuse of power, and ethics violations.
As the courts and committees investigate DeLay's misdeeds and hand down indictments, keeping track of all the scandals can be a full-time job. So we thought it would helpful to offer folks this quick and easy guide.
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Protecting Our Retirement Security
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June 14, 2005
George Bush's Wise Guys: Noe, Abramoff, Reed, and the Wyly Brothers
Today, George Bush will be banking millions of dollars for Republican campaigns. This afternoon Bush will be in Pennsylvania to raise money for Senator Rick Santorum's (R-PA) reelection campaign, and tonight he will return to Washington, DC to raise millions at a dinner organized by the NRCC and NRSC. There will be a few empty seats at today's fundraising events, though: five of Bus's big time fundraiser- Thomas Noe, Sam and Charles Wyly, Jack Abramoff, and Ralph Reed-have found themselves under Federal investigations for illegal contributions, tax evasion, and various corruption scandals. With at least five of Bush's donors coming under federal investigation, the attendees at today's fundraisers have to ask themselves: What's next?
Sam "Republicans for Clean Air" and Charles "Swift Boat Veterans" Wyly -- Donated Millions to Bush Efforts, Pioneers (2000)
Wyly Brothers Involved in a State and Federal Tax Investigation. According to news reports Sam and Charles Wyly, better known as the "Wyly Brothers" are under investigation for tax evasion. In early 2005 Michaels Stores Inc. revealed that U.S. Securities and Exchange Commission and the New York County District Attorney were investigating the stock transactions of Charles and Sam Wyly, the company's President and Vice-President. The Billionaire Bush patrons are accused of setting up offshore trusts on the Isle of Man, a noted tax shelter in the Irish Sea, in an attempt to evade paying taxes on stock options. [Dallas Morning News, 6/4/05]
Wyly Brothers Set Up Trusts in Family's Name for Purpose of Tax Evasion. In the 1990's the Wylys brothers, while being advised by Bank of America on tax issues, set up trusts in the names of some of their family members. The trusts, which were set up on the Isle of Man, a noted tax shelter, were supposedly set up to benefit members of the Wyly family, but are now under investigation by federal and state officials as possible tax evasion schemes. [Dallas Morning News, 6/4/05]
IRS Accused Wyly of Laundering Money Through Trusts to Avoid Taxes. While writing about the Wyly's scandal the Dallas Morning News attempted to explain the Wyly's complicated tax evasion scheme. "First a public company grants stock options to a senior executive. The executive then transfers the options to a trust or partnership controlled by the executive's family. The parties structure the transfer as a 'sale' and the trust then 'pays' the executive for the options with a long-term or deferred note -- say due in 30 years. Shortly after the options are transferred, the trust exercises the stock options and sells the stock in the open market. The executive then takes the position that tax is not owned until the date of the deferred payment -- in this case 30 years -- although the executive has access to the partnership assets." [Dallas Morning News, 6/4/05]
Thomas "The Coin" Noe -- Pioneer (2004)
Republican Chairman Under at Least Six Separate Investigations. Noe was tapped by the Voinovich Administration to manage a portion of the Ohio Workers' Compensation Bureau's pension funds. "He also happened to be a dealer in rare coins. And in 1998, the Ohio Workers' Compensation Bureau agreed to invest in a rare-coin fund that he controlled as a way to hedge its holdings in stocks and bonds, an investment that experts have called highly unorthodox. But this week, Mr. Noe's lawyers said that as much as $13 million of the state's $50 million investment in his two funds could not be accounted for. Mr. Noe, meanwhile, has become the focus of at least six investigations or audits involving either his handling of the coin investments or his campaign fund-raising. Federal investigators are also looking into his contributions to President Bush's 2004 campaign as a 'Pioneer,' raising more than $100,000." [New York Times, 5/28/05, emphasis added]
- While Noe Collected Millions, State Assets Went Missing. According to a Toledo Blade investigation"two coins worth $300,000 had been lost in 2003. Then state officials acknowledged that another 119 coins worth $93,000 were missing" It is unclear to Ohio officials if Noe had the legal authority to invest the state's money on collectibles or whether the state was even the rightful owner of those items. During his time as administrator of the fund Noe collected over $3 million in fees to the state. [New York Times, 5/28/05]
Jack "The Troglodyte" Abramoff -- Pioneer (2004)
Abramoff Insulted Native American Leaders in Emails With His Lobbying Partner. During a Senate investigation into Abramoff's lobbying practices, an email exchange between Jack Abramoff and his partner Michael Scanlon was discovered, in which the two men refer to their Native American clients as "troglodytes" adding in smiley faces for effect. "'The [expletive] troglodytes didn't vote on you today,' Abramoff responded. 'What's a troglodyte?' Scanlon asked. ...'What am I, a dictionary? :) It's a lower form of existence, basically,' Abramoff wrote." [New York Times, 5/1/05]
Criminal Taskforce of Investigators From FBI, IRS, Department of the Interior, Senate and Justice Department Investigating Abramoff. According to the Washington Post, "A criminal task force of investigators from the FBI, Internal Revenue Service, the Justice Department's public integrity section, the National Indian Gaming Commission and the Interior Department inspector general's office is looking into payments Abramoff and Scanlon received from an array of clients, including 11 wealthy Indian tribes that operate gambling casinos, according to officials familiar with the investigation." [Washington Post, 7/16/04]
Scanlon and Abramoff Hand Picked Tribal Candidates, Got Them Elected, Then Lobbied for Million Dollar Contracts. Emails uncovered during a Senate investigation show that Abramoff and fellow lobbyist Michael Scanlon hand picked candidates for tribal councils, backed the candidates with money for campaigning, and then cashed in on lucrative contracts after the individuals were elected. "Lawmakers said the emails and other documents show that the two men spent tens of thousands of dollars on mailings and other materials for candidates in tribal elections." [Washington Post, 9/30/04]
- Abramoff Boasted To Scanlon That One Scheme Would Help Them Make "Millions." During the Saginaw Chippewas' tribal election, Abramoff sent Scanlon an email boasting that millions would be made once their candidates took control of the tribal council. "I had dinner tonight with Chris Petras (legislative director) of Sag Chip (Saginaw Chippewas). He was salivating at the $4-5 million program I described to him. He is going to come in after the primary with the guy who will be chief if they win (a big fan of ours already) and we are going to help him win. If he wins, they take over in January, and we have millions." [Washington Post, 9/30/04]
Abramoff and Scanlon Took $66 Million From Tribes. Contrary to a Washington Post report that noted Abramoff and Scanlon receiving about $10 million in compensation from tribes, Sen. Ben Nighthorse Campbell (R-Colo), a leading Senator on the Senate Indian Affairs Committee, said, "The truth is it's much worse." Campbell unveiled figures that showed Scanlon's PR firms took in $66 million from six tribes. [Roll Call, 3/23/04]
The Senate Indian Affairs Committee uncovered embarrassing and questionable details of Abramoff's dealings. "At least one tribe, the Agua Caliente of California, paid $300,000 into a pool of money Abramoff used to rent box suites at FedEx Field, the MCI Center and Camden Yards...A Jan. 16, 2002, email from Abramoff to Scanlon talked about needing 'moolah' and set a goal of making '$50M this year (our cut!)...In one nine-month period in 2002, Scanlon's Capitol Campaign Strategies sent more than $12 million to Abramoff's Kay Gold Inc." [Roll Call, 3/23/04]
Abramoff's Political Ties to Members of Congress Are Also Being Investigated. According to the Washington Post, "Government sources and people who have been interviewed said the twin investigations are examining tens of millions of dollars in fees that Abramoff and Scanlon received from clients, including, in Abramoff's case, a number of foreign entities. Investigators also are looking into ties the two have to members of Congress, into campaign donations and into whether criminal or tax codes were violated in the work they contracted to do or by the fees they collected, the sources said." [Washington Post, 7/16/04]
Ralph "The Golden Boy" Reed -- Pioneer (2000), Ranger (2004)
Ralph Reed Named in Investigation of Abramoff Payments. The Indian affairs committee, as part of its ongoing investigation of Jack Abramoff, subpoenaed Reed. In addition- investigators are looking into a $4 million payment that Abramoff made to lobbyist Ralph Reed, a key player in the president's reelection operation who raised more than $300,000 for Bush's two presidential campaigns. [Washington Post, 4/27/05; 4/22/05]
Reed Paid Millions By Scanlon and Abramoff To Rally Support To Close Texas Casino. During an ongoing investigation involving Jack Abramoff, Michael Scanlon and Ralph Reed, The Washington Post obtained emails showing the trio manipulating a Texas Casino for millions of dollars. "The emails reveal how closely Abramoff and Scanlon worked in tandem with Reed, whose longtime opposition to casino gambling and his connections to churches made him a powerful ally in Texas's effort to shut down the Tigua casino that Cornyn said was operating illegally. Reed was paid $4.2 million by Abramoff and Scanlon for his work opposing several tribal casinos in southern states from 2001 to 2003, government sources said." [Washington Post, 8/30/04, emphasis added]
- Once Reed Had Successfully Helped Close The Casino, Abramoff and Scanlon Would Offer The Tribe Its Lobbying Services At A Hefty Price. According to emails between Reed, Abramoff and Scanlon obtained by The Washington Post, Reed "built public support for then-Texas Attorney General John Cornyn's effort to get the courts to close the Tigua tribe's Speaking Rock Casino in El Paso in late 2001 and early 2002. The emails also reveal what appears to be an effort on the part of Abramoff and Scanlon to then exploit the financial crisis they were helping to create for the tribe by securing both the multimillion-dollar fee and $300,000 in federal political contributions, which the tribe paid." [Washington Post, 9/26/04]
- Reed, Abramoff and Scanlon Took Millions From Casino They Quietly Worked To Shut Down. The Washington Post reports that Ralph Reed, Michael Scanlon and Jack Abramoff worked with then-Texas Attorney General John Cornyn to help shut down the Tigua tribe's Speaking Rock Casino in El Paso. "Then the two (Scanlon and Abramoff) quickly persuaded the tribe to pay $4.2 million to try to get Congress to reopen it." [Washington Post, 9/26/04]
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June 10, 2005
Bush Claims Progress, but Situation in North Korea Continues to Worsen
Today, President Bush is meeting with Republic of Korea President Roh Moo-hyun to talk about "the way forward with North Korea" However, despite the fact that North Korea presents the most significant nuclear proliferation threat since the end of the Cold War, Bus's track record on this issue is one of inaction and division. Even as the Bush Administration claims to be making progress, the increasingly dangerous situation in North Korea continues to worsen.
NORTH KOREA'S WEAPONS CAPABILITIES HAVE GROWN UNDER BUSH
2003: CIA Informed Foreign Officials North Korea Had Small-Nuke Technology. The CIA informed South Korean and Japanese officials that North Korea began testing conventional primary explosives associated with advanced nuclear warheads. Smaller nuclear warheads, which the CIA suspected North Korea possessed, could increase the deliverable range of North Korean missiles and places U.S. forces in Japan (roughly 60,000) and South Korea (roughly 35,000) well within range. The CIA also found that the North Koreans had a conventional weapons test site that was capable of testing nuclear weapons. [New York Times, 7/1/03]
2003: North Korea Claimed They Could Produce Half-Dozen Nuclear Bombs. North Korean officials said that they had finished producing enough plutonium to make a half-dozen nuclear bombs and that they would move ahead quickly to turn the material into weapons. [New York Times, 7/15/03]
2005: North Korea Has Even More Nuclear Weapons Than Previously Believed And Can Launch Them. North Korea boasted the day before South Korea's leader headed to Washington that it was building more nuclear bombs and had the ability to arm them on missiles. North Korea is widely believed to have enough weapons-grade plutonium for a half-dozen nuclear bombs. Asked by ABC News if it was building more, Vice Foreign Minister Kim Gye Gwan said: "Yes." "As for specifically how many we have, that is a secret," he said. Kim also implied the North was able to mount nuclear warheads on its missiles which, if true, would be a potentially significant advance for the communist state. "Our scientists have the knowledge, comparable to other scientists around the world," he said. Though there was no way to confirm North Korea's claims, Japan responded by saying it believes North Korea's nuclear weapons programs are "considerably advanced." [AP Online, 6/9/05]
- US Claimed To Have Made Progress Same Week. U.S. officials claimed to have made progress in talks with North Korean officials in New York and said Pyongyang expressed its commitment to the arms talks, which also include China, Japan and Russia. However, no date was set for the negotiations to restart, and the South treated the development with skepticism. [AP Online, 6/9/05]
BUSH KEEPS GIVING NORTH KOREA REASONS TO ABANDON TALKS
North Korea Has Cited Hostile US Policies As Reason For Abandoning Talks. Pyongyang has stayed away for nearly a year from six-nation talks on its nuclear program, citing "hostile" U.S. policies. Diplomatic efforts have been stepped up world wide aimed at persuading it to resume six-nation talks on its nuclear program. [AP Online, 6/9/05]
US and South Korea Relationship Is On The Rocks. Roh and Bush have deeply divergent views on dealing with North Korea. "There are very serious strains in the (U.S.-South Korean) relationship," he said. "The threat of divorce is real - both sides are increasingly asking questions that weren't being asked a few years ago." [AP Online, 6/9/05]
BUSH GOT OFF TO A BAD START WITH NORTH KOREA
Bush Contradicted Powell on North Korea. During a meeting with the president of South Korea, Bush expressed a hard line approach to North Korea that contradicted Secretary of State Colin Powell's earlier statements. One day before Bush met with the President of South Korean, Powell said that the Bush administration planned "to pick up where President Clinton left off." [USA Today, 3/8/01]
- Colin Powell: Administration Would Pick Up North Korean Negotiations. Speaking about talks with North Korea, Secretary of State Colin Powell said the Bush administration was going "to pick up where President Clinton and his administration left off," and examine "some promising elements [that] were left on the table." [Washington Post, 3/10/01]
- President Bush: U.S. Has No Plans to Resume Talks With North Korea. In early March 2001 President Bush told visiting South Korean President Kim Dae Jung that the United States had no plans for a quick resumption of missile talks with North Korea. [Washington Post, 3/17/01]
BUSH FORCED NORTH KOREA TO ABANDON "SUNSHINE POLICY"
North Korea Threatened To End Non-Proliferation Agreement In Reaction To Bush's "Brigandish" Attitude. North Korea threatened to end its freeze on missile launches and nuclear development because of the "brigandish" attitude of the Bush administration. A North Korean foreign ministry spokesman accused the US of not keeping to a 1994 accord under which it froze its suspected nuclear weapons program. The spokesman warned that a moratorium on missile launches in place since September 1999 would be abandoned unless the Bush administration made an agreement on missile proliferation. [Agence France Presse, 2/22/01; New York Times, 2/22/01]
N. Korea Cancelled Talks with S. Korea In Retaliation For Bush Canceling Talks With Them. After Bush expressed skepticism about North Korea and indefinitely postponed talks, North Korea called off Cabinet-level talks with South Korea just hours before they were to begin. "North Korea may have delayed the meeting because it has not yet set its stance on how to cope with last week's Kim-Bush summit," said Koh Yu-hwan, a professor of North Korea studies at Seoul's Dongguk University. [Associated Press, 3/12/01]
Bipartisan Senators Criticized Bush Administration Policy on North Korea as Inadequate. During testimony by Deputy Secretary of State Richard Armitage, the two ranking members of the Senate Foreign Relations Committee, Committee Chairman Richard Lugar (R-IN) and Ranking Member Joseph Biden (D-DE), criticized the Bush administration's policy on North Korea as inadequate. Calling the Bush administration's North Korea policy "largely reactive and predictable," Biden ordered the administration to regain the initiative on discussions. Lugar said that Bush should show "immediate U.S. leadership" by increasing dialogue and selecting a senior coordinator for the policy. [Washington Post, 2/5/03]
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Must Read: Republican Congressman Says GOP Leaders Continue to Put Party Politics Above Policy
Washington, DC - Today David Baumann of National Journal reports on Republican Congressman Bob Inglis (SC-4) and his assertion that the Republican leadership in Congress has become more and more partisan and has lost its "clarity of vision." The red-state Congressman derides the partisanship of the Republican leadership noting that Republicans are putting politics above policy and lamenting that when it comes to the Republican leadership in Congress, "it's not so much about ideas."
"Bob Inglis...Republican congressman from South Carolina thinks his fellow conservatives are suffering from 'mission creep' and 'vision creep' ...
'Inglis is in a unique position to analyze House Republicans. He was first elected in 1992, when the GOP was in the minority. He served through the heady days of 1995 and 1996, and retired in 1998 to honor a term-limit pledge...but when Republican Rep. Jim DeMint decided to run for Senate last year, Inglis saw his chance to return to Washington. He was easily elected to his old seat...
"But this isn't the early '90s anymore. In the years since the GOP took control of the House, Inglis believes his party has lost a large part of its edge...
"Inglis is most irked by a sense that House Republicans have forgotten their ideological aim: to shrink the size of the federal government while increasing its efficiency. He also believes the GOP has lost sight of its goal of maintaining a balanced budget...
"But that's not all. Inglis says his party leaders have also become more and more partisan...
"'How can it be more partisan than when Newt Gingrich was there?' he asked rhetorically...
"While partisanship may be down among individual members, Inglis believes GOP leaders continue to mistakenly put party politics above policy. 'It's not so much about ideas,' he laments. 'It's [that] our team has to win today and your club has to lose today. We need to make sure to focus on ideas and not so much on our team winning today.'"
Baumann's entire article, "Confessions of an Angry Congressman" can be found on NationalJournal.com.
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June 09, 2005
Big Tobacco Gets a Little Help from Their Friends
The government is approaching the end of a six year case charging that big tobacco companies, including Philip Morris, R.J. Reynolds, Brown & Williamson Tobacco Co, and British American Tobacco, conspired to deceive the public about the health risks of smoking. In a shocking development, DOJ lawyers abandoned the recommendations provided in testimony by key government witnesses and requested a fraction of the amount suggested as an appropriate financial penalty for these companies. Even the judge in the case was confused, stating that "There may be some additional influences being brought to bear on the governmen's decision" Associate Attorney General Robert McCallum, who oversees the lawyers trying this case, said he would not comment on why DOJ changed its position. But with $9 million in donations to the GOP over the past four years, and with no fewer than four members of the DOJ leadership with strong ties to the tobacco industry, does he really need to say a word?
TOBACCO'S TIES TO
THE DEPARTMENT OF JUSTICE RUN DEEP...
ROBERT MCCALLUM, ASSOCIATE ATTORNEY GENERAL
McCallum, Who Oversees Civil Division, Has Strong Ties to Tobacco. The Los Angeles Times reported that: "Before his appointment in the Justice Department in 2001, McCallum had been a partner at Alston & Bird, an Atlanta-based firm that has done trademark and patent work for R.J. Reynolds Tobacco. In 2002, McCallum signed a friend-of-the-court brief by the administration urging the Supreme Court not to consider an appeal by the government of Canada to reinstate a cigarette smuggling case against R.J. Reynolds that had been dismissed." [Los Angeles Times, 6/8/05]
THEODORE ULLYOT, CHIEF OF STAFF AT DOJ
Ullyot Was A Partner At Kirkland & Ellis, "Top Corporate Law Firm" For Big Tobacco. Ullyot was a partner of former Whitewater counsel Kenneth Starr at the Kirkland & Ellis law firm and also was a law clerk for Supreme Court Justice Antonin Scalia. In 2002, Kirkland & Ellis was listed as the top corporate law firm for fighting class action lawsuits because of its decades of work defending tobacco company Brown & Williamson. [AP, 2/14/05; Fullerton County Daily Report, 4/27/05; Corporate Board Member, 7/1/02]
RAUL YANES, CHIEF COUNSEL TO THE ATTORNEY GENERAL
Yanes Represented Philip Morris and RJ Reynolds In Tobacco Lawsuits. Yanes was a partner at the New York law firm Davis, Polk and Wardwell, where his clients included Philip Morris and R.J. Reynolds in tobacco lawsuits and the Arthur Andersen accounting firm. [AP 2/14/05]
RALPH BOYD, ASSISTANT ATTORNEY GENERAL
Boyd Has Advised The Tobacco Industry. Boyd, the assistant attorney general overseeing civil rights, has advised the tobacco and gun industries as lawyer with the Boston firm Goodwin Procter. [Richmond Times Dispatch, 4/1/01; Washington Post, 3/7/01]
- Boyd: Gun Companies Can Learn From Tobacco Industry. Ralph Boyd said the gun companies could learn from tobacco litigation. "The plaintiffs don't have to win all of these cases, they just have to file enough of them and you can count on an aberrant decision by a judge somewhere letting a case go to trial," Mr. Boyd said. "That creates enormous risk for the industry." "These suits," he added, "are far more political than legal. They are a multifront attack through a public forum, and if you don't rebut them politically you can find yourself losing entirely. And that in turn affects judges who are sensitive to political currents." [New York Times, 12/24/98]
... AND THEIR REACH EXTENDS ACROSS THE BUSH ADMINISTRATION
KARL ROVE, ASSISTANT TO THE PRESIDENT AND DEPUTY CHIEF OF STAFF
Bush Advisor Karl Rove Moonlighted for Phillip Morris While State Sued Tobacco Industry. Karl Rove, while he was an advisor to then-Governor Bush, was questioned in 1997 about his ties to tobacco giant Phillip Morris, which paid Rove $3,000 per month for his advice on Texas politics and which candidates should receive tobacco money. As part of his consultant work, Rove distributed a Phillip Morris-commissioned "push" poll in the Governor's office. This poll included negative comments about Attorney General Dan Morales (D), who spearheaded the lawsuit against the tobacco industry seeking reimbursement for the state's costs in treating smoking-related illnesses. [Fort Worth Star-Telegram, 8/29/97]
HOWARD BEALES, DIRECTOR OF THE FTC BUREAU OF CONSUMER PROTECTION
Howard Beales Was A Consultant For RJ Reynolds. Howard Beales III, worked as a consultant for R.J. Reynolds when it was being challenged by the FTC for using advertisements that made tobacco appealing to children and teens. Beales asserted there was no connection between tobacco advertising and smoking among young people. [Atlanta Journal-Constitution, 6/18/01; Deseret News, 6/12/01]
- Beales Defended 'Joe Camel.' Beales is an economist who has asserted that there is no link between cigarette advertisements and smoking among teenagers. Beales defended the use of the Joe Camel cartoon character in tobacco advertising. [Deseret News, 6/12/01; Cox News Service, 6/12/01]
- Wolf In Charge Of Henhouse. Matthew Myers, president of the Campaign for Tobacco Free Kids, likened Beales's appointment to "putting the wolf in charge of the henhouse." He added: "Someone with those kinds of ties to the tobacco industry, whose position on the impact of advertising, particularly on young people, is so far out of the mainstream, cannot be counted on to protect our kids." [Washington Post, 5/31/05]
OTTO REICH, PRESIDENTIAL ENVOY TO THE AMERICAS
Reich Was Creator Of Lobbying Firm Whose Clients Included British America Tobacco. Reich was the creator of and lobbyist for RMA International, a lobbying group for companies involved in Latin America. RMA's clients included British America Tobacco, Bacardi-Martini, and Telegate. [National Journal, 3/1/97; Senate Office of Public Records, www.sopr.gov]
KIRK BLALOCK, FORMER DEPUTY DIRECTOR, WHITE HOUSE OFFICE OF PUBLIC LIAISON
Blalock Was Spokesperson For Philip Morris. Blalock, a Republican Lobbyist, served as the spokesperson for Philip Morris. Blalock ran the lobbying firm Fierce, Isakowitz,& Blalock whose clients include Fannie Mae, the Health Insurance Association of America, and the Business Roundtable. [PR Newswire, 5/2/01; American Health Line, 4/3/01; Washington Post, 5/16/04]
DAVID SCHEFFMAN, FORMER DIRECTOR OF THE FTC BUREAU OF ECONOMICS
Scheffman Testified On Behalf Of Tobacco Companies. David Scheffman, who led the Bureau of Economics from June of 2001 through July of 2003, testified on behalf of the tobacco industry that cigarette makers never conspired to suppress the development of healthier products. Scheffman testified that it was economically implausible to think that the firms conspired to suppress research on safer cigarettes because it would have been in their own interest to create a more healthful product and thereby increase sales. [New York Times, 6/12/01; Washington Post, 6/8/01]
BUSH TRIED TO SNUFF OUT TOBACCO LAWSUIT
Bush's Justice Department Pressured Experts To Change Testimony. Government lawyers asked two of their own witnesses to soften recommendations about sanctions that should be imposed on the tobacco industry if it lost its civil racketeering case. Matt Myers, president of the Campaign for Tobacco-Free Kids, said the Justice Department's lead trial lawyer called him May 9 to say her superiors wanted him to scale back the recommendations he had made in written testimony. They sought to remove his suggestions for a ban on tobacco company methods of marketing to young people before Myers took the stand. Myers said he refused to do so. A second witness, scientific expert Michael Eriksen, also departed from recommendations in his earlier written testimony. Four separate sources said he did so at the request of Justice Department lawyers. [Washington Post, 6/9/05]
Bush Eliminated Funding For Litigation Expenses To Tobacco Litigation Team. In 2001, the Tobacco Litigation Team was provided with $23 million. However, in 2002, Bush failed to set aside any funding for continued legal efforts, including discovery, research and storage of billions of pages of documents. The Tobacco Litigation Team informed Ashcroft that without a budget increase, "there are no realistic prospects for a settlement" and that the Team would be forced "seriously to consider seeking authority to dismiss the case." [Washington Post, 4/24/01 and 4/25/01]
Bush Administration Prepared To Settle Tobacco Lawsuit, Move Criticized As Not In "Good Faith." The Bush Administration notified members of Congress that the Administration was prepared to seek a settlement with the industry citing concerns about the strength of the Department of Justice's case. Critics of the Bush administration decision to settle the lawsuit questioned Bush's tactics. "No good faith negotiator would settle their litigation by announcing at the beginning that they might lose," said William Corr, of Campaign For Tobacco-Free Kids. [Washington Post, 6/18/01; Los Angeles Times, 6/18/01]
BIG TOBACCO HAS HISTORY OF BANKROLLING BUSH AND GOP
Tobacco Companies Gave More Than $160,000 To Bush, Almost $2.2 Million To GOP. In the 2004 election cycle, Bush was the top recipient of tobacco money taking in $167,845. That year, the tobacco industry also gave $2,180,155 to Republican candidates and party committees overall. [Center for Responsive Politics, Accessed 6/8/05]
GOP Supporter Philip Morris Is Personally Thanked On 2001 Presidential Dinner Invitation. In 2000, Philip Morris was the second largest contributor to the Republican Party, giving almost $1.5 million. Philip Morris Companies, Inc. is one of ten companies and trade groups singled out and "gratefully acknowledg[ed]" for its contribution in an invitation to the 2001 President's Dinner for the Republican National Committee (RNC). The RNC raised more than $20 million from the dinner. [2001 Presidents Dinner invitation; Washington Post, 6/28/01; Alcoholism & Drug Abuse Weekly, 10/16/00]
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June 08, 2005
Con Raz
Washington, DC - Una encuesta de ABC News/Washington Post reportó hoy que los estadounidenses se sienten menos seguros, con solo un 40 por ciento de los indepedientes aprobando la labor del Presidente Bush combatiendo el terrorismo, y entre todos los estadounisenses, "un 58 por ciento dijo que él no se esta concentrando en las cosas que son mas importantes para ellos."
Además, más del 50 por ciento de los estadounidenses no aprueban la labor que el Presidente Bush está efectuando; el indice negativo mas grande de su Presidencia. La encuestra también encontró que "por primera vez, una mayoría, el 55 por ciento, tambien dijo que Bush ha hecho más para dividir al país que para unirlo." [Washington Post, 6/8/05]
De acuerdo al Post "seis de cada diez personas que respondieron dijeron que Bush y los líderes del partido republicano no están haciendo buen progreso en los problemas de la nacion, de los cuales, un 67 por ciento culpaban al Presidente y a los Republicanos mientras el 13 por ciento culpaba a los Demócratas del Congreso." [Washington Post, 6/8/05]
Durante una aparición en el "Today Show" esta mañana, el Presidente del Comité Nacional Demócrata Howard Dean discutió los esfuerzos del liderazgo Republicano para distraer al pueblo Norteamericano de su fallido record: "Ellos quieren distraer la atención Nosotros (los Demócratas) creémos que esta es una distracción de los temas que verdaderamente importan. Un Seguro Social y empleos adecuados. Escuelas públicas que sean fuertes, una fuerte defensa donde nuestras tropas no esten acorraladas, las verdaderas amenazas a los Estados Unidos son Irán y Corea del Norte. Vamos a reconstruír este partido. Cuando tomemos el poder, vamos a incluir a todos y vamos a tener una política de defensa y de economía. No tenemos eso ahora."
Dean además destacó la agenda divisiva de los Republicanos, recordando que los Republicanos "han usado palabras como cuota para separar a Afroamericanos de Americanos blancos," han "usado a los americanos gay de manera divisiva por medio de una enmienda anti-gay" y están "atacando a los inmigrantes." Dean también se refirió a legislación anti-inmigrante que ha sido impulsada por miembros Republicanos del Congreso. Dean dejó claro que los Estados Unidos puede hacerlo mejor, declarando que "asi no deben ser los Estados Unidos...todos necesitamos estar en esto juntos."
Poco más tarde en el canal de noticias Fox, el Presidente del Partido Republicano Ken Mehlman trató de defender el fallido record de los Republicanos. En vez de eso, le hizo promoción a una nominada judicial que ha sido criticada por sobrepasar su limite judicial y por haber sido motivada por la política en vez de la ley, de nuevo impulsó el plan de privatización del Seguro Social que llevaría a las más grandes reducciones en beneficios para la clase media, y le rindió homenaje al Presidente Bush por haber apoyado el proyecto de ley anti-inmigrante Real ID. Mehlman, también endosó la propuesta sobre inmigración del Presidente que crearía un programa "Bracero" moderno, el cual no le ofrecería a las familias trabajadoras un camino a la legalización ganada. [Fox News Channel, 6/8/2005]
Con razon el Partido Republicano quiere cambiar de tema.
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No Wonder the Republican Party Wants to Change the Subject
Washington, DC - An ABC News/Washington Post poll reported today that Americans feel less safe, with only 40 percent of independents approving of President Bush's job combating terrorism, and among all Americans, "58 percent said he is not concentrating on the things that matter most to them."
Furthermore, more than 50 percent of Americans do not approve of the job President Bush is doing, the highest negative rating of his presidency. The poll also found that for "the first time, a majority, 55 percent, also said Bush has done more to divide the country than to unite it." [Washington Post, 6/8/05]
According to the Post, "There were signs...that Bush and Republicans in Congress were receiving more of the blame for the recent standoffs over such issues as Bush's judicial nominees and Social Security. Six in 10 respondents said Bush and GOP leaders are not making good progress on the nation's problems; of those, 67 percent blamed the president and Republicans while 13 percent blamed congressional Democrats." [Washington Post, 6/8/05]
During an appearance on the Today Show this morning, Chairman Dean discussed the Republicans leadership's efforts to distract the American people from their failed record: "They want to divert attention... We (Democrats) believe this is a diversion from the issues that really matter. Social security and adequate jobs. Strong public schools. Strong defense where our troops are not pinned down. Iran and North Korea are the real threats to America. We will build this party back. When we take over, we will include everybody. And we are going to have an economic and defense policy. We don't have that now."
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Dean: Close Abramoff Ties Disqualify Ethics Committee Chair
Washington, DC - DNC Chairman Howard Dean called on House Ethics Committee Chair Doc Hastings (R-WA) to recuse himself from the House Ethics Committee investigation of Republican leader Tom DeLay's improper relationship with super lobbyist Jack Abramoff - given the chairman's recently revealed close relationship with the scandal-plagued Washington insider.
Today, the New York Times reported that Jack Abramoff used his close relationship with Chairman Hastings as a selling point for his corporate clients. And during a Congressional debate over fair labor standards, Chairman Hastings carried the water for Abramoff's sweatshop clients.
Given these revelations about the Ethics Committee chairman's relationship with the ethically-challenged lobbyist, Dean called on Rep. Hastings to recuse himself from the committee's investigation into DeLay and his relationship with Abramoff:
"Chairman Hastings' personal ties to scandal-plagued lobbyist Jack Abramoff make it impossible for him to lead an impartial investigation into Tom DeLay's unethical behavior. Hastings' continued involvement raises serious doubts about the veracity of the DeLay probe and the integrity of the House Ethics Committee's investigative process. Given the clear conflict of interest here, Chairman Hastings should immediately recuse himself from the Ethics Committee's investigation of Tom DeLay."
Records Showed Ethics Committee Chairman Doc Hastings (R-WA) Had Ties to Jack Abramoff. According to recently released lobbying records from the Commonwealth of the Northern Marianas Islands (CNMI), House Ethics Committee Chairman Doc Hastings, had a close relationship with lobbyists from Jack Abramoff's former firm, where he practiced for much of the 1990's. According to FEC records, this firm has been major campaign contributors to Hastings since he entered Congress, donating over $14,000 to his campaigns, including $1,000 from Jack Abramoff himself. [NYT, 6/8/05]
Abramoff Boasted to Clients of "Excellent" Ties to Hastings. In the mid 1990's Jack Abramoff, who is now the focus of a federal corruption investigation, boasted to a client about his firm's "excellent" ties to Congressman Hastings. According to lobbying records Abramoff's firm repeatedly billed one of their clients for meetings and telephone conversations between Abramoff's lobbying team and Representative Hastings's staff. [NYT, 6/8/05]
Abramoff's Lobbying Team Pressured Hastings and Staff on CNMI Sweat Shop Rules. Recently released lobbying records show that, even though Hastings and Abramoff's former firm had numerous contacts over the years, they paid special attention to him in 1996 when he was a junior member of the House Resources subcommittee that had jurisdiction over their client, the Commonwealth of the Northern Marianas Islands (CNMI). Records indicate that Abramoff's team paid special interest to Hastings in the summer of 1996, his former firm was attempting to line up opposition to a proposal that would have forced the CNMI, an American Territory, to adhere to American labor standards. Members of Abramoff's Marianas lobbying team met with members of Hasting's staff to suggest questions Hastings should ask during a committee hearing on the proposal. [NYT, 6/8/05]
Hastings Spoke out Against Enforcing United States Labor Standards in American Territories. After what the New York Times called a "flurry of contacts" between Hastings, his staff, and Abramoff's team in June and July of 1996, Hastings came through for the lobbying firm. Transcripts of the hearings showed that Hastings introduced a statement in the Congressional Record that praised the CNMI for "moving in the right direction toward self-sufficiency" and warned that the imposition of the minimum wage "could crush its fragile economy." During the hearing Hastings also asked that a Washington Times Op-Ed favorable to the CNMI be placed in the record. Records show that the Op-Ed was written by an employee of Abramoff's former firm. [NYT, 6/8/05]
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June 07, 2005
DNC Statement on the Passing of Jean O'Leary, Former Chair of the DNC LGBT Caucus
WASHINGTON-The Democratic National Committee (DNC) released the following statements on the passing of former DNC Lesbian, Gay, Bisexual, Transgender (LGBT) Caucus Chair, Jean O'Leary.
DNC Chairman Gov. Howard Dean: "Jean O"Leary was an outstanding leader and a pioneer of gay activism in the Democratic Party. As chair of the LGBT caucus and a member of the DNC executive committee she was an outspoken advocate of equal rights for all Americans. Jean will be sorely missed, but her spirit, her work, and her legacy will long be remembered by members of the Democratic Party."
DNC LGBT Caucus Chairman Jeff Soref: "Jean broke new ground for LGBT people in the Democratic Party. She was a patient, supportive and determined leader, as well as a personal friend and mentor. With Jean"s leadership, a powerful LGBT Caucus emerged at the DNC. She succeeded in having the Caucus officially recognized and gaining a seat on the DNC Executive Committee. She helped achieve more equal representation for LGBT people at all levels of party affairs, including the presidential nominating convention, where our numbers more than doubled. Because of Jean's pioneering work, today LGBT people have prominent roles in the national party and in states across the country. She leaves an historic legacy."
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Dean Statement on Washington State Election Trial
Washington, DC - Gov. Howard Dean, Chairman of the Democratic National Committee, issued the following statement:
"I congratulate Governor Christine Gregoire and am happy that the trial has finally ended. The people of Washington State and our democracy were the real winners in yesterday's court decision. Chelan County Superior Court Judge John Bridges confirmed what we knew six months ago: when the votes were counted, Christine Gregoire was elected Governor of Washington State. The voices of the millions who voted have been heard, every single vote truly made a difference, and our democracy and our judicial process worked just as they should have.
"It's disappointing that instead of graciously conceding back in December when all the votes were counted and it was clear that he had lost, Mr. Rossi instead chose to follow the disturbing pattern of the Republican Party by trying to change the rules when things didn't go his way. The ruling yesterday reaffirmed the importance of an independent judiciary.
"We are all proud of the job that Gov. Gregoire is doing for the people of Washington State. For the past six months Gov. Gregoire has focused on the issues that affect the daily lives of the people she serves, and we look forward to her continued leadership."
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June 06, 2005
Another Bad Batch of Bush Money
Washington, DC - DNC Communications Director Karen Finney released the following statement:
"The ongoing investigation into the Wyly brothers' tax evasion scheme is just the latest example of the rampant corruption that has become a trademark of Republican leadership in this country. The Wyly brothers join the ranks of Jack Abramoff, Ralph Reed, and Thomas Noe as the latest Bush Pioneers to be investigated for Federal crimes. This pattern of behavior may represent the values of the Republican Party, but it doesnt represent the values of the American people."
TAXES? WE DON'T NEED TO PAY NO STINKING TAXES:
THE WYLY BROTHERS' OFFSHORE EVASION SCHEMES
Top Bush patrons Charles and Sam Wyly are under investigation for tax evasion by federal and state agencies. The Wyly brothers join the illustrious ranks of Jack Abramoff, Ralph Reed and Thomas Noe to mark the 4th and 5th Bush donors raising more than $100,000 to come under federal investigations. Recently the Washington Post reported on what it called the "DeLay effect", the phenomenon of Republicans losing support due to the repeated ethics problems of their top leaders, and the worry it is causing party strategists. Rick Davis, a Republican strategist and former John McCain presidential campaign manager said, "the ethics issue is putting the party 'into a bit of troublesome water.'" With the repeated implication of Bush donors and Republican leaders in corruption investigations, Republicans have reason to worry.
Offshore Tax Evasion: Another Bit of Troublesome Water
Wyly Brothers Involved in a State and Federal Tax Investigation. According to news reports Sam and Charles Wyly, better known as the "Wyly Brothers", are under investigation for tax evasion. In early 2005 Michaels Stores Inc. revealed that U.S. Securities and Exchange Commission and the New York County District Attorney were investigating the stock transactions of Charles and Sam Wyly, the company's President and Vice-President. The billionaire Bush patrons are accused of setting up offshore trusts on the Isle of Man, a noted tax shelter in the Irish Sea, in an attempt to evade paying taxes on stock options. [Dallas Morning News, 6/4/05]
Wyly Brothers Set Up Trusts in Family's Name for Purpose of Tax Evasion. In the 1990's the Wyly brothers, while being advised by Bank of America on tax issues, set up trusts in the names of some of their family members. The trusts, which were set up on the Isle of Man (a noted tax shelter), were supposedly set up to benefit members of the Wyly family, but are now under investigation by federal and state officials as possible tax evasion schemes. [Dallas Morning News, 6/4/05]
IRS Accused Wyly of Laundering Money Through Trusts to Avoid Taxes. While writing about the Wyly's scandal the Dallas Morning News attempted to explain the Wyly's complicated tax evasion scheme. "First a public company grants stock options to a senior executive. The executive then transfers the options to a trusts or partnership controlled by the executive's family. The parties structure the transfer as a 'sale' and the trust then 'pays' the executive for the options with a long-term or deferred note -- say due in 30 years. Shortly after the options are transferred, the trust exercises the stock options and sells the stock in the open market. The executive then takes the position that tax is not owed until the date of the deferred payment -- in this case 30 years -- although the executive has access to the partnership assets." [Dallas Morning News, 6/4/05]
Wyly Brothers: Big Bush Donors Over the Years
Wyly Brothers -- Top Bush Patrons. According to a 1999 by the Center for Public Integrity the Wyly Brothers were the 9th largest patron of Bushs political career. During the 2000 election Charles Wyly was a fundraising Pioneer, an elite group of fundraisers who raised at least $100,000 for Bushs election. The Wyly brothers both gave $5,000 to Bushs recount committee in 2000 and both gave the maximum amount, $2,000, to Bushs reelection campaign in 2004. [www.politicalmoneyline.com, www.whitehouseforsale.org]
Wyly Brothers Donated to Notorious Shadow Organizations, In Attempts to Influence Elections. During the 2000 election the Wyly brothers used $2.5 million dollars of their money to establish Republicans for Clean Air. The group ran brutal attack ads against Arizona Senator John McCain in the 2000 Republican primary. During the 2004 election the Wyly brothers donated $10,000 to the "Swift Boat Veterans for Truth," which ran ads attacking Democratic Presidential Candidate John Kerry's service in Vietnam. [www.politicalmoneyline.com]
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Reuni
Washington, DC -Los comentarios del Presidente Bush hechos hoy en la inaguración de la Asamblea General de la Organización de Estados Americanos en Ft. Lauderdale, vienen acompañados de otro mal paso en la vergonzosa política extranjera de la administración de Bush. La propuesta de la administración de Bush para que los 34 paises miembros de la Organización de Estados Americanos creén un comité encargado de monitorear el estado de la democracia en los paises miembros, fue manejada de tan mala manera que fue inmediatamente rechazada, y los errores de acuerdo al Miami Herald fueron cuestionados como "arrogancia política, un descuido o incompetencia." El Herald criticó a Bush por posiblemente estar "mas interesado en dirigirse a una audiencia doméstica que al resto de Latinoamerica," indicando que semejante estrategia sería "un gran error." [Miami Herald, 06/06/2005]
La propuesta pro-democracia, la cual ayudaría a controlar al regimen pro-Castro en Venezuela, fue criticada por los paises miembros por su distribucion de último minuto y por el aparente intento de la administración de Bush de forzar la aprobación de la propuesta durante esta reunión.
"Una vez mas, los intereses y los objetivos de la política extranjera de los Estados Unidos han sido perjudicados por la arrogancia de la administración de Bush,"dijo el Gobernador Howard Dean, Presidente del Comité Nacional Demócrata, "El Presidente Bush había prometido que éste iba a ser el Siglo de las Américas' pero los errores críticos de su administración y la falta de atención a la región continúan dificultando la posición de los Estados Unidos. Parece que el Presidente Bush es un presidente sin poder tanto afuera de los Estados Unidos como lo es dentro."
Tan sólo durante los últimos cuatro años:
- Bush alentó la elección de un presidente en Bolivia pro-EEUU y pro-mercado libre, y luego no hizo nada cuando en medio de disturbios en la capital de Bolivia, lo forzaron a huir.
- En Haití, la Administración Bush cedió ante la violencia de las multitudes y aceptó un golpe de estado militar que destituyó a un regimen que a pesar de tener fallas había sido elegido democráticamente.
- En Venezuela, la administración Bush le dio la bienvenida a un nuevo gobierno de quienes buscaban llevar a cabo un golpe de estado, mientras el presidente elegido se encontraba bajo custodia de las fuerzas militares. Eso minó nuestra autoridad moral y política en la región. El error redujo nuestra habilidad de presionar al gobierno de Chavez para que mantuviera un rumbo democrático, y ha seguido impactando negativamente los esfuerzos estadounidenses en la región, incluyendo la propuesta actual frente a la OEA para controlar al regimen pro-Castrista.
- Con por lo menos 142 soldados estadounidenses, que aún no lograban ser ciudadanos, fallecidos en los campos de batalla de Irak y Afganistan, Bush todavía no ha hecho progreso en la reforma completa del sistema de inmigración para tratar con los millones de latinoamericanos indocumentados en los EEUU, y en vez de eso declaró su apoyo por medidas anti-inmigrantes atadas al proyecto de ley de asignaciones presupuestales para Irak y Afganistan.
Recientemente, la administración Bush no fue capaz de ejercer la fuerza política para lograr que la Organización de Estados Américanos eligiera al candidato respaldado por Washington, un salvadoreño, como su nuevo lider. En vez de eso, la elección de Jose Miguel Insulza como Secretario General de la Organización de Estados Americanos fue proyectada como una derrota para los Estados Unidos. Insulza, un socialista Chileno, venció a dos sucesivos candidatos respaldados por los Estados Unidos. [Washington Post, 05/16/2005]
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OAS Meeting Signals New Misstep for Bush Administration
Washington, DC- President Bush's remarks at the Opening of the Organization of American States General Assembly today in Ft. Lauderdale come with one more bumbling foreign policy misstep for the Bush administration's already embarrassing record. The Bush administration's proposal to have the 34-country Organization of American States create a committee tasked with monitoring the state of democracy in member nations was so poorly handled over the weekend that it was immediately rebuked, and the missteps according to the Miami Herald questioned as "political arrogance, an oversight or incompetence." The Herald criticized the Bush administration for possibly being "more interested in talking to a domestic audience than to the rest of Latin America," declaring such a strategy "a big mistake." [Miami Herald, 06/06/2005]
The pro-democracy proposal, which would help clamp down on the pro-Fidel Venezuelan regime, was criticized by member nations for its last minute distribution and for the Bush administration's apparent attempt to ram the proposal through at this meeting.
"Once again America's best interests and foreign policy objectives have been jeopardized as a result of the Bush administration's arrogance," said Gov. Howard Dean, Chair of the Democratic National Committee, "President Bush promised that this would be the Century of the Americas' but his administration's critical errors and lack of attention to the region continue to hamper America's standing. It seems President Bush is as much a lame duck abroad as he is at home."
In just the last four years:
- Bush encouraged the election of a pro-market, pro-US president in Bolivia, only to do nothing when riots shook the Bolivian capital and he was forced to flee.
- In Haiti, the Bush administration acquiesced to mob violence and a military coup that ousted a democratically-elected, albeit flawed, regime.
- In Venezuela, the Bush administration welcomed a new government installed by an attempted coup as the elected president sat in military custody, undermining our moral and political authority in the region. The move reduced our ability to press the Chavez government to stay on a democratic course, and has continued to plague American efforts in the region, including the current proposal at the OAS to rein in the Castro-friendly regime.
- With at least 142 non-citizen American troops having died in the battlefields of Iraq and Afghanistan, Bush has yet to move forward on comprehensive immigration reform to address the millions of Latin American undocumented immigrants in the U.S., and instead issued support for anti-immigrant measures.
Most recently, the Bush administration couldn't even muster the political capital to get the Organization of American States to elect a Washington-backed candidate, a Salvadoran, as its new leader. Instead, the election of Jose Miguel Insulza as secretary general of the Organization of American States was widely portrayed as a defeat for the United States. Insulza, a Chilean socialist, won over two successive U.S.-backed candidates. [Washington Post, 05/16/2005]
Reunión de la OEA Marca Nuevo
Mal Paso de la Administración Bush
Los comentarios de Bush llegan luego de que la
administración cometió error torpe en propuesta pro-democracia
Washington, DC -Los comentarios del Presidente Bush hechos hoy en la inaguración de la Asamblea General de la Organización de Estados Americanos en Ft. Lauderdale, vienen acompañados de otro mal paso en la vergonzosa política extranjera de la administración de Bush. La propuesta de la administración de Bush para que los 34 paises miembros de la Organización de Estados Americanos creén un comité encargado de monitorear el estado de la democracia en los paises miembros, fue manejada de tan mala manera que fue inmediatamente rechazada, y los errores de acuerdo al Miami Herald fueron cuestionados como "arrogancia política, un descuido o incompetencia." El Herald criticó a Bush por posiblemente estar "mas interesado en dirigirse a una audiencia doméstica que al resto de Latinoamerica," indicando que semejante estrategia sería "un gran error." [Miami Herald, 06/06/2005]
La propuesta pro-democracia, la cual ayudaría a controlar al regimen pro-Castro en Venezuela, fue criticada por los paises miembros por su distribucion de último minuto y por el aparente intento de la administración de Bush de forzar la aprobación de la propuesta durante esta reunión.
"Una vez mas, los intereses y los objetivos de la política extranjera de los Estados Unidos han sido perjudicados por la arrogancia de la administración de Bush,"dijo el Gobernador Howard Dean, Presidente del Comité Nacional Demócrata, "El Presidente Bush había prometido que éste iba a ser el Siglo de las Américas' pero los errores críticos de su administración y la falta de atención a la región continúan dificultando la posición de los Estados Unidos. Parece que el Presidente Bush es un presidente sin poder tanto afuera de los Estados Unidos como lo es dentro."
Tan sólo durante los últimos cuatro años:
- Bush alentó la elección de un presidente en Bolivia pro-EEUU y pro-mercado libre, y luego no hizo nada cuando en medio de disturbios en la capital de Bolivia, lo forzaron a huir.
- En Haití, la Administración Bush cedió ante la violencia de las multitudes y aceptó un golpe de estado militar que destituyó a un regimen que a pesar de tener fallas había sido elegido democráticamente.
- En Venezuela, la administración Bush le dio la bienvenida a un nuevo gobierno de quienes buscaban llevar a cabo un golpe de estado, mientras el presidente elegido se encontraba bajo custodia de las fuerzas militares. Eso minó nuestra autoridad moral y política en la región. El error redujo nuestra habilidad de presionar al gobierno de Chavez para que mantuviera un rumbo democrático, y ha seguido impactando negativamente los esfuerzos estadounidenses en la región, incluyendo la propuesta actual frente a la OEA para controlar al regimen pro-Castrista.
- Con por lo menos 142 soldados estadounidenses, que aún no lograban ser ciudadanos, fallecidos en los campos de batalla de Irak y Afganistan, Bush todavía no ha hecho progreso en la reforma completa del sistema de inmigración para tratar con los millones de latinoamericanos indocumentados en los EEUU, y en vez de eso declaró su apoyo por medidas anti-inmigrantes atadas al proyecto de ley de asignaciones presupuestales para Irak y Afganistan.
Recientemente, la administración Bush no fue capaz de ejercer la fuerza política para lograr que la Organización de Estados Américanos eligiera al candidato respaldado por Washington, un salvadoreño, como su nuevo lider. En vez de eso, la elección de Jose Miguel Insulza como Secretario General de la Organización de Estados Americanos fue proyectada como una derrota para los Estados Unidos. Insulza, un socialista Chileno, venció a dos sucesivos candidatos respaldados por los Estados Unidos. [Washington Post, 05/16/2005]
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Mehlman on NBC Meet the Press: Long on Rhetoric and Short on Facts
Washington, DC - Democratic National Committee Communications Director Karen Finney issued the following statement regarding Republican National Committee Chairman Ken Mehlman's appearance on NBC's "Meet the Press":
"With a smooth command of GOP talking points, Ken Mehlman was long on rhetoric and short on facts, which seems to be the GOP mantra these days. He once again showed how out of touch the Republican leadership really is with the realities facing the American people," said DNC Communications Director Karen Finney.
"Even more troubling, Ken Mehlman stood by the ethically challenged leadership of Tom DeLay. DeLay's repeated efforts to trade legislative access for fundraising favors, extravagant junkets, and handouts to his corporate cronies reflects the reckless abuse of power that has become a trademark of Republican leadership in this country. This behavior may represent the values of the Republican Party, but it doesn't represent the values of the American people. Democrats believe that Americans deserve more from their leaders."
THE KEN MEHLMAN ACTION FIGURE WITH NEW IMPROVED TALKING POINT ACTION
Today on Meet The Press, Ken Mehlman continued his practice of spouting rosy rhetoric, even while Americans experience a very different reality. Repeatedly, Mehlman spouted the line that he "respectfully disagreed" with Tim Russert's statements even when the facts blatantly contradicted his talking points. The economy is stalled, job creation slowed to a standstill, and the deficit is the largest in history. But instead of offering America real solutions, Ken Mehlman insisted that everything is fine. He even touted Majority Leader Tom DeLay, who has repeatedly tried to to trade legislative access for fundraising favors, extravagant junkets, and handouts to his corporate cronies, as "an effective leader." On issue after issue, Ken Mehlman chose to follow Republican talking points instead of coming clean with the American people.
MEHLMAN'S RHETORIC: THE ECONOMY IS DOING GREAT
AMERICA'S REALITY: ECONOMY "HITTING THE BRAKES"
- Job Creation Close to a Standstill. "The nation added only 78,000 jobs in May, less than half the pace of the previous three months and the smallest monthly increase in nearly two years," the Labor Department reported today. A total of 78,000 jobs were created, less than half of what Wall Street analysts had predicted. [NYT, 6/3/05]
- About 80 Percent of New Jobs Created Pay an Average Hourly Wage Lower Than The National Average. About 2.9 million of the new jobs that have been created since August 2003 are in the service sector with an average wage that is 40 cents lower than the national average. More than 256,000 of these jobs are temporary jobs. More than 851,000 of these jobs were in low-paying domestic industries, such as wait staff in restaurants and bars and retail workers. This means that more than 30 percent of the new jobs created are temporary jobs or in low-paying domestic industries. [Democratic Leadership Staff Analysis of BLS Data, 5/2005]
- U.S. Economy Is Hitting the Brakes; GDP Growth at Slowest Rate in 2 Years. The nation's GDP grew at a 3.1 percent annual rate in the first quarter of 200 -- much slower than the 3.8 percent growth in the final quarter of 2004, and the slowest rate since 1.9 percent growth in the first quarter of 2003. Activity slowed across most of the economy, including lower consumer spending and corporate investment. "Final demand" -- real purchases by companies and individual --expanded only 1.9 percent in the first quarter. The remainder of the 3.1 percent expansion "was a result of an $80 billion surge in the accumulation of inventories." [NYT, 4/29/05]
MEHLMAN'S RHETORIC: WE ARE REDUCING THE DEFICIT
AMERICA'S REALITY: DEFICIT EVEN WORRIES CHAIRMAN GREENSPAN- Each American's Current Share of National Debt Is More Than $26,000; Greenspan Expresses Worries Over Deficit. Bush's deficits have increased the national debt to $7.7 trillion--totaling $26,248 for each man, woman, and child in the United States. In testimony before the Senate Budget Committee on April 21, Alan Greenspan testified that "Unless that trend [of increasing deficits] is reversed, at some point these deficits could cause the economy to stagnate or worse... The federal budget deficit is on an unsustainable path, in which large deficits result in rising interest rates and ever-growing interest payments that augment deficits in future years." [Treasury Department, 6/2/05; House Budget Committee Democrats, 6/3/05; Washington Post, 4/22/05]
MEHLMAN'S RHETORIC: TOM DELAY IS AN EFFECTIVE LEADER
AMERICA'S REALITY: DELAY AND THE ETHICS COMMITTEE, THEY MEET WAY TOO MUCH:
- ADMONISHMENT 1: DeLay Received Private Admonishment for Continuing with Gingrich's K Street Project. In 1999, the House Ethics Committee sent a letter to DeLay privately admonishing him for pushing the Electronics Industry Association to hire former Rep. Bill Paxon (R-NY) as a lobbyist instead of former Rep. Dave McCurdy (D-OK). The plan was part of DeLay's push to load K Street power lobbying firms with Republicans, which he re-launched in 2004, despite being admonished for it by the Ethics Committee in 1999. [Roll Call, 5/17/99, 3/12/01, 2/11/04; National Journal, 6/12/99, 5/5/01; St. Louis Post-Dispatch, editorial, 7/27/01; Congressional Quarterly Weekly, 5/15/1999]
- ADMONISHMENT 2: House Ethics Committee Admonished DeLay for Bribes for Votes. DeLay violated House standard procedure and kept the 15-minute House vote on Medicare open for 3 hours. Later on, the House Ethics Committee conducted an investigation into whether DeLay threatened and bribed representatives into voting the Medicare law, including a large contribution of "$100,000-plus" for the campaign of the son of a member of Congress. [Washington Post, 2/6/04, 10/1/04; New York Times, 2/10/04]
- ADMONISHMENT 3-A: Westar Traded Cash To DeLay in Exchange for "Seat At The Table" During Energy Bill Negotiations. An energy company, Westar, gave more than $56,000 in cash to DeLay for a "seat at the table" during energy bill negotiations. As a result, language was added to a bill that specifically benefited Westar. [Wichita Eagle, 5/17/03, Washington Post, 10/7/04, Lawrence Memo, "Suggested Campaign Contributions, 5/17/02]
- ADMONISHMENT 3-B: DeLay Abused Leadership Position and Used Influence To Track Private Airplane. DeLay abused his leadership position and used his influence to direct the Department of Homeland Security track a private airplane carrying Democratic members of the Texas legislature who were rebelling against a DeLay-led Texas redistricting plan. [WP, 10/7/04]
- ADMONISHMENT 4, PENDING: Committee Will Decide Whether to Pursue Action Based on TRMPAC. The House Ethics Committee deferred action on another complaint dealing with DeLay's fundraising group TRMPAC. A Texas grand jury in September 2004 indicted three of DeLay's political associates on charges of using TRMPAC to illegally collect corporate donations and funnel them to Texas legislative races. The ethics committee said it will take no action on the matter "pending further action" concerning the indictments or the Texas-based investigation that prompted them. [Washington Post, 10/7/04]
MEHLMAN'S RHETORIC: PERSONAL RETIREMENT ACCOUNTS ARE JUST LIKE THE THRIFT SAVINGS PLAN
AMERICA'S REALITY: TSP "UNWORKABLE" AS MODEL FOR BUSH PLAN
- Bush Plan Much Different than Thrift Savings Plan; Modelling Called "Not Workable." "Bush's proposed accounts differ substantially from the 19-year-old TSP. Moreover, they would be much more difficult to run than the TSP and have far higher administrative costs than the president and his supporters let on, some experts say. 'It's a non-starter,' said Francis X. Cavanaugh, a designer of the TSP. "There's no way they can do this without an enormous federal subsidy. . . . This has to do with workability, no matter how one feels about it philosophically, and it's not workable." [Washington Post, 3/3/05]
- For Federal Workers, TSP Only Supplements Federal Pension and Social Security. "For most federal employees, the TSP serves as one leg of a 'three-legged stool' of retirement income; the other two are the traditional Social Security benefit and a government pension. But because many businesses no longer offer defined-benefit pensions, many employees in the private sector have only a two-legged stool -- their 401(k) plan plus Social Security. The money that workers divert to Bush's personal accounts, plus 3 percent interest, would come out of their guaranteed Social Security benefit. So, in effect, the president would be shaving down one of the legs and hoping that a new one -- the individual account -- would grow at least enough to compensate for the loss." [Washington Post, 3/3/05]
- Annual Administrative Costs for Small Busineses Would Eat Up 30 Percent of Yearly Profits. Based on surveys of administrative costs for firms that set up 401(k)s for companies with 10 or fewer employees, the annual cost per worker amounted to more than $300. For an account of $1,000 (the maximum under the president's proposal), a cost of $300 per worker would require more than a 40 percent investment return just to get the fund back to $1,000 at the end of the year. ["Feasibility of Social Security Individual Accounts", Francis X. Cavanaugh, AARP Public Policy Institute, #2002-14, 9/02; Statement of Francis X. Cavanaugh, Testimony Before the Subcommittee on Social Security of the House Committee on Ways and Means, 6/18/98]
MEHLMAN'S RHETORIC:
DEMOCRATS NEVER SAID THEY'D WORK WITH US
AMERICA'S REALITY: DEMOCRATS HAVE SAID THEY WILL NEGOTIATE WHEN PRIVATIZATION IS OFF THE TABLE
- Pelosi Said Remove Privatization, Then Democrats will negotiate. "I join my colleague, Mr. Rangel, the Ranking Democrat on the Ways and Means Committee, when we say: 'Remove the poison pill of privatization, and Democrats will come to the table with our ideas, with our commitment, and with our cooperation to address the problem that exists, not a crisis, but the problem that exists in Social Security down the road." [Capitol Hill Press Release, 5/26/05]
- Reid Said Democrats Would Negotiate on Social Security When Private Accounts Were Off the Table. "The Senate Democratic leader said Democrats will only enter negotiations with Bush 'once he takes privatization off the table.' Reid was referring to Bush's call for creating private accounts within the current Social Security system." [Market News International, 4/21/05]
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June 03, 2005
Dean: Republican Policies Don't Help Hard Working Americans
DNC Chairman Howard Dean issued the following statement:
"The point I was making is clear: Republican policies have declared war on hard working Americans. I will continue to criticize Republican leaders and their policies, and the Democratic Party will continue to offer constructive alternatives."
See below for more information from DNC Research.
THE OTHER HALF OF THE STORY
Republicans Tout Economic Recovery While Working Families Suffer
In a recent press conference, President Bush stated, "I'm not worried about things in Washington." But American families are worried -- and with good reason. Republicans are touting the economic recovery, but in fact, working families are facing the increased burden of higher debt, a skittish stock market, and stalled economic growth. Republicans have declared war on hard working Americans, and Democrats will continue to criticize Republican leaders and their policies.
EMPLOYMENT
Job Creation Close to a Standstill."'The nation added only 78,000 jobs in May, less than half the pace of the previous three months and the smallest monthly increase in nearly two years"' the Labor Department reported today. A total of 78,000 jobs were created, less than half of what Wall Street analysts had predicted. [NYT, 6/3/05]
2.8 Million Manufacturing Jobs Have Been Lost Over the Past Four Years. Even as jobs were created in other parts of the economy, another 7,000 manufacturing jobs were lost last month. [BLS, 6/05]
Unemployment Claims Rose by 25,000. U.S. initial unemployment claims jumped by 25,000 to 350,000 in the week ending on May 28. Economists had expected initial claims to rise by 2,000 in the latest week. [Market News International, 6/2/05; TheStreet.com, 6/2/05]
Average Length of Unemployment Remains At A 20-Year High. The average out-of-work American is unemployed for nearly 5 months. In May, 1.5 million people had been unemployed for over 6 months; almost two and one-half times the number in 2001. [BLS, 6/05]
About 80 Percent of New Jobs Created Pay an Average Hourly Wage Lower Than The National Average. About 2.9 million of the new jobs that have been created since August 2003 are in the service sector with an average wage that is 40 cents lower than the national average. More than 256,000 of these jobs are temporary jobs. More than 851,000 of these jobs were in low-paying domestic industries, such as wait staff in restaurants and bars and retail workers. This means that more than 30 percent of the new jobs created are temporary jobs or in low-paying domestic industries. [Democratic Leadership Staff Analysis of BLS Data, 5/2005]
HOMEOWNERSHIP
Homeownership Growth Is Slowing; Mortgage Debt Leading to Bankruptcies. The growth in home ownership rates has slowed since Bush took offic -- slowing by 42 percent for African Americans, 45 percent for Latinos, and 25 percent for whites. Mortgage debt has risen higher and faster than ever before during a business cycle, contributing to record bankruptcy rate -- with 1 in 200 Americans filing for bankruptcy. In fact,"Households have relied more heavily than ever before on borrowing against the equity in their homes to help them pay their bills." [Center for American Progress, 5/12/05; Census Bureau, American Housing Survey; www.abiworld.org]
STOCK MARKET
Stock Market Fears" Stagflation." According to the Washington Post, Wall Street was gripped" by one of its worst nightmare -- 'stagflation' Stagnant economic growth was documented by the Commerce Department.... Inflation -- the other element of 'stagflatin' -- is growing faster, at 3.2 percent.... Slowing growth and accelerating inflation are the worst possible combination for investors. Inflation erodes profits, which are already withering on their own. Stocks opened lower after the report and then dove further as investors studied the fine print where the details on inflation were described." [WP, 4/28/05]
OTHER BAD NEWS UNDER BUSH'S ECONOMY
U.S. Economy Is Hitting the Brakes; GDP Growth at Slowest Rate in 2 Years. The nation's GDP grew at a 3.1 percent annual rate in the first quarter of 200 -- much slower than the 3.8 percent growth in the final quarter of 2004, and the slowest rate since 1.9 percent growth in the first quarter of 2003. Activity slowed across most of the economy, including lower consumer spending and corporate investment. "Final demand" -- real purchases by companies and individual --expanded only 1.9 percent in the first quarter. The remainder of the 3.1 percent expansion"was a result of an $80 billion surge in the accumulation of inventories." [NYT, 4/29/05]
Higher Energy Prices Have "Sapped" "Economy's Momentum." According to Mark Zandi, Economy.com's chief economist, "The economy hit a pot hole in early 2005. Higher energy prices have sapped a lot of the economy's momentum." Crude oil prices have increased, giving traders another reason to worry about the economy. Oil prices soared to record highs in March, hit a new record of $57.27 a barrel at the beginning of April, and now hover at just above $50 a barrel. [Washington Post, 4/28/05]
Each American's Current Share of National Debt Is More Than $26,000; Greenspan Expresses Worries Over Deficit. Bush's deficits have increased the national debt to $7.7 trillion--totaling $26,248 for each man, woman, and child in the United States. In testimony before the Senate Budget Committee on April 21, Alan Greenspan testified that "Unless that trend [of increasing deficits] is reversed, at some point these deficits could cause the economy to stagnate or worse... The federal budget deficit is on an unsustainable path, in which large deficits result in rising interest rates and ever-growing interest payments that augment deficits in future years." [Treasury Department, 6/2/05; House Budget Committee Democrats, 6/3/05; Washington Post, 4/22/05]
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June 02, 2005
Gov. Dean Talks About Retirement Security and the GOP's Failure to Address the Problem
In the wake of the largest corporate pension default in history, President Bush and Congressional Republicans continue to undermine the retirement security of millions of American workers. They are promoting a plan that would damage our already weak pension system at the same time they are proposing to cut Social Security benefits for 70 percent of American workers. Democrats want to close the loopholes that allow companies to under-fund their pensions and protect Social Security from privatization, so American workers receive the benefits they have earned through a lifetime of hard work.
PENSIONS ARE SEVERELY UNDERFUNDED
PBGC Protections for 44 Million Pensioners Are at Risk Due to Pension Defaults and Rules Allowing Employers to Underfund Plans. The Pension Benefit Guarantee Corporation is a federal corporation that guarantees payment of pension benefits for 44 million American workers and retirees participating in 29,000 private "defined benefit" plans. PBGC's pension funding rules are intended to ensure that plans have sufficient assets to pay promised benefits. However, recent terminations of large underfunded plans, along with continued widespread underfunding, indicate weaknesses in these rules that may threaten retirees' incomes, as well as the viability of the insurance program maintained by the PBGC-which reported a deficit of $23.3 billion in 2004. [PBGC, 5/27/05; GAO, "Private Pensions," 5/05]
2 in 5 Pension Plans Were Underfunded Each Year Since 1995; Pensions Were Underfunded by $450 Billion in 2004 Alone. Each year from 1995 to 2002, 39 percent of defined benefit pension plans on average were underfunded, and more than half of the plans insured by PBGC were underfunded by 2002. By 2002, almost one-fourth of the 100 largest plans were less than 90 percent funded. However, according to the General Accountability Office, "because of leeway in the actuarial methodology and assumptions sponsors may use to measure plan assets and liabilities, underfunding may actually have been more severe and widespread than reported." In fact, the Department of Labor estimates that companies underfunded their plans in 2004 alone by $450 billion. [GAO, 5/05; Business Week, 5/16/05]
Pension Funding Rules Have Created Large Risk of $96 Billion Pension Termination. Because financially weak firms tend to sponsor underfunded pension plans, weaknesses in funding rules create a potentially large financial risk to PBGC-and retirement security generally. On average each year from 1995 to 2002, nine of the largest 100 plans had a sponsor with a speculative grade credit rating-indicating financial weakness and poor creditworthiness. PBGC estimates that financially weak companies with plan that had a "reasonably possible" chance of termination underfunded their pensions by $96 billion. [GAO, 5/05; PBGC, 9/30/04]
UNDERFUNDING COMPANIES HAVE ESCAPED RESPONSIBILITY
63 Percent of Employers Each Year Make No Cash Contributions to Pension Plans. According to the GAO, "62.5 percent of sponsors of the largest plans each year on average made no cash contribution because the rules allow sponsors to satisfy minimum funding requirements through plan accounting credits that substitute for cash contributions." Effectively, plan sponsors rely on an "outdated" system of credits in order to avoid making contributions to their plans. [GAO, 5/05; Philadelphia Inquirer, 6/1/05]
Most Companies That Underfunded Their Pension Liabilities Completely Escaped Penalties or Additional Funding Requirements. Very few of the companies that underfunded their pension liabilities were forced to pay penalties for being underfunded, because of loopholes in pension law. From 1995 to 2002, only 6 pension plans studied in the GAO report were subject to the "additional funding charge" (AFC) penalty, for a total of 23 times. [GAO, 5/05; Philadelphia Inquirer, 6/1/05]
BUSH HAS FAILED TO SOLVE PENSION FAILURES
Bush Pension Plan Would Increase Financial Burden on Healthy Companies Compared with Companies with Weak Pension Plans. Bush claims his January 2005 proposal is designed to ensure that employers keep pension benefit promises and to protect the PBGC from a taxpayer bailout. Yet, a Watson Wyatt analysis of 471 "Fortune 1000" companies with defined benefit plans shows that the Bush proposal would disproportionately increase the financial burden on healthy companies compared with their weaker counterparts. Healthy companies would see their total PBGC premiums increase 240 percent under the proposal, more than double the 113 percent increase for financially troubled employers. [Watson Wyatt, http://www.watsonwyatt.com/, 5/12/05]
Employee Benefits Expert Says Bush Plan Would "Damage and Already Weakened" Pension System. According to Sylvester Schieber, benefits practice director at Watson Wyatt, "While the pension funding environment desperately needs fixing, we believe that the administration's proposal will likely damage an already weakened defined benefit system... The proposal offers little incentive for companies without a pension plan to set one up. Even worse, the added burden placed on healthy companies might lead them to terminate their pension plans." [Watson Wyatt, http://www.watsonwyatt.com/, 5/12/05]
Reasonable Companies That Honor Pension Commitments Would be Penalized. According to Julia Coronado, senior research analyst at Watson Wyatt, "By disproportionately allocating the financial obligation, the administration would force healthy companies to subsidize weaker ones far more than in the current system...Pensions provide an essential stream of income for many retirees. While it's important to keep the PBGC healthy, responsible companies that honor their pension commitments should not be unduly penalized." [Watson Wyatt, http://www.watsonwyatt.com/, 5/12/05]
BUSH TRIED TO UNDERMINE TRADITIONAL PENSIONS
Bush Pushed Cash Balance Scheme that Would Have Reduced Pension Benefits by 20 Percent. As part of his 2005 proposed budget, Bush proposed to make it easier, through tax advantages, for companies to switch from traditional pension plans to cash balance schemes. Cash-balance plans are pensions that, instead of guaranteeing a stream of monthly payments in retirement as traditional pensions do, provide hypothetical accounts for individual employees that grow each year with contributions. According to the Wall Street Journal, "Employees can see their ultimate pensions cut by 20 percent or more. Whereas the traditional pensions grow rapidly in later years on the job, cash-balance plans instead provide a small 'contribution' each year." Corporations view the plans as a way to reduce costs and boost profits. [Washington Post, 2/3/04; Wall Street Journal, 2/3/04]
Bush Plan Would Have Helped Overturn Court Rulings Against Cash Balance Plans. "If the [Bush] proposal were enacted, it could help employers in efforts to overturn the findings of three appeals courts-most recently in a case against Xerox Corp.-which concluded that companies with cash-balance plans underpaid departing workers, and the decision of a federal district court, which said that International Business Machines Corp. discriminated against older workers when it adopted a cash-balance plan." According to the EEOC, 800 age discrimination complaints have been filed against companies that have switched to cash balance plans. The IRS has not approved any new conversions since 1999 because of concerns regarding age discrimination. [Wall Street Journal, 2/3/04; Equal Opportunity Commission, http://www.eeoc.gov/35th/1990s/combating.html]
CONGRESSIONAL REPUBLICANS TRIED TO UNDERMINE PENSIONS
House Republicans, with Bush Support, Passed Weak Pension Bill. In April 2002, House Republicans passed a flawed pension reform bill, supported by the White House, which protects executives more than workers. This bill passed 255-163 with only 2 Republicans voting against. Bush's OMB released a Statement of Administration Policy endorsing the House GOP plan: "The Administration strongly supports H.R 3762, which encompasses important principles outlined in the President's retirement security plan." [H.R. 3762, Roll Call Vote #92, 4/11/02, http://thomas.loc.gov; SAP on H.R. 3762, 4/11/02, http://www.whitehouse.gov]
House Plan Would Weaken Rules Protecting Low-Income Workers. A provision of the House bill, supported by business groups, would scale back the rules requiring pension plans to meet specific tests that balance between benefits for lower paid and higher paid workers in order to qualify for favorable tax status. Under current law, pension plans must meet at least one of two mathematic criteria to be eligible for preferred tax status. Under the House bill, firms would be eligible if they are approved by the Treasury Department based upon the "facts and circumstances" of their plan, which was the criteria before the mathematical formulas were introduced. [New York Times, 4/10/02; CBPP 6/5/02]
House Plan's Provision Would Allow Firms to Exclude More Workers And Reduce Benefits for Low-Income Employees. J. Mark Iwry, who oversaw employee-benefits policy and regulation at the Treasury Department from 1995 to 2001, said that the House pension bill "would allow corporations in some cases to exclude more employees from pension coverage and reduce the level of benefits for average- and lower-paid workers who remain covered." [New York Times, 4/10/02]
Under House Plan, "Employees Lose, the Chief Executive Wins." According to the New York Times, "Congress ought to consider ways to hold corporate executives more accountable. Instead, the House last week passed a so-called pension reform bill that might actually encourage companies to drop lower-paid employees from pension plans to direct even more resources to top executives. Employees lose, the chief executive wins." [New York Times, Editorial, 4/14/02]
SOCIAL SECURITY MORE CRUCIAL THAN EVER
Because of Switchover to 401(k)s and the Danger to Traditional Pensions, Protecting Social Security Is Even More Crucial. In the past 2 decades, personal investments and pensions have become more and more dependant on financial markets. For example, traditional defined-benefit pensions have been replaced with 401(k)s. Social Security is the only sure thing left. It is still a guaranteed benefit that is not dependant on market fluctuations. [Diamond and Orszag, Saving Social Security, 2004; Testimony of J. Mark Iwry, 4/29/04]
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Statement by DNC Communications Director Responding to Republicans' Disconnect with the Realities Facing Americans
Washington, DC - DNC Communications Director Karen Finney released the following statement:
"It's hard to believe that Republicans really want to defend a record that is so clearly out of touch with the everyday lives of the American people. Rather than focusing on what's good for their partisan political interests they should focus on strengthening retirement security, not weakening it as the President has proposed. Governor Dean was simply pointing out what everyone already knows: people are working harder for less money thanks to the Bush economy. Republicans clearly don't understand that. Their repeated power grabs, scandals and attempts to revoke the retirement security that Americans have worked a lifetime to earn show that Republicans are simply out of touch with the challenges average Americans face every day as they work hard and try to take care of their families. From a risky scheme to privatize Social Security to ignoring the growing problems in our private pension system, America's retirement security is under siege by the Bush Administration's policies."
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Cox In the Henhouse
Whenever Rep. Christopher Cox (R-CA) had the opportunity to hold corporate wrongdoers accountable, protect Social Security, and be fiscally responsible, he voted in favor of corporate interests instead. Despite this, Bush has nominated Cox to be Chairman of the Securities and Exchange Commission -- the chief watchdog and protector of millions of Americans' investments. How can we expect Cox to look out for the economic and retirement security of middle class Americans when he undermined protections for working families and retirees at nearly every opportunity as a Congressman? How can Cox be an impartial "corporate cop" when one of his main contributors has been the very industry he is slated to oversee?
Cox Has Accepted Campaign Contributions from Industry that He Is Supposed to Oversee
Securities Industry Is a Major Source of Campaign Cash for Cox. Rep. Christopher Cox (R-CA) has accepted $254,412 from the securities and investment industry-the fourth largest industry contributor to Cox over the course of his career. As Securities and Exchange Commission Chairman, it would be Cox's primary duty to provide oversight to the securities and investment industry. [Tray.com; OpenSecrets.org]
Cox's Idea of Law Enforcement Was a Pardon for Oliver North
Urged pardon for Oliver North. Cox urged a pardon for Oliver North while running for Congress in a crowded Republican primary. North in turn endorsed Cox, who went on to win the primary. [Los Angeles Times, 6/3/1988; Orange County Register, 5/6/1988]
Cox "Delighted" North Acquitted of Some Counts. According to the Los Angeles Times, "Orange County Rep. C. Christopher Cox (R-Newport Beach) said he was 'delighted' that North was found not guilty of the more serious counts brought in the indictment more than a year ago. Cox said that it was a 'sad commentary' that all that resulted from the $12-million trial was conviction on charges that he said were equivalent to 'the fire department (being convicted) for double parking at the scene of the fire.'" North was eventually convicted of accepting an illegal gratuity, aiding and abetting in the obstruction of a congressional inquiry, and destruction of documents, but the convictions were overturned on appeal. [Los Angeles Times, 5/5/89]
Joked About Shredding Documents at North Fundraiser. "[A]ll of us who worked at the White House were disappointed when we learned that President Reagan had actually pardoned Ollie, and that by mistake, Ollie had accidentally included it with a batch of entitlements he was shredding." [Orange County Register, 3/22/1990]
Cox Was Once Named in Lawsuit for Ripping Off Investors
Cox Was Once Named in Law Suit for Misleading Investors About Real Estate Investments. In 1995, Cox was named as a defendant in a lawsuit by investors as a result of legal work that he did at Latham & Watkins for an investment group in the 1980s. According to the New York Times, "The suit accused Mr. Cox, his former law firm and two former colleagues of misleading regulators and investors about the condition of a real estate investment fund. Mr. Cox, who denied that he had violated any laws, was eventually dropped from the lawsuit and the firm where he worked, Latham & Watkins, settled for an undisclosed amount." [New York Times, 6/2/05; Associated Press, 2/24/95]
Cox Sponsored Legislation to Shield Lawyers and Accountants in Investment Fraud Lawsuits Like the One He Was Named In. In addition, the day after Cox was questioned about whether he knew pertinent facts of the case, such as whether his client's real estate license had been revoked, he amended his legislation to prevent lawyers and others from being sued if they "genuinely forgot to disclose" important information. [Associated Press, 2/24/95]
Cox Had Ties to Lobbyist Jack Abramoff
Cox Has Close Ties to Ethics-Impaired Lobbyist Jack Abramoff. Abramoff took a job as a Washington lobbyist for the firm Preston Gates Ellis & Rouvelas Meeds in 1994. In its hiring announcement, the firm said that Abramoff "maintains strong ties to Speaker Newt Gingrich, Majority Leader Dick Armey, Majority Whip Tom Delay and [House] Republican Policy Committee Chairman Chris Cox and their staffs." [Washington Post, 11/8/04; Preston Gates Ellis & Rouvelas Meeds Press Release, 12/30/94, emphasis added]
Cox Has Repeatedly Undermined Corporate Accountability-One of His Chief Responsibilities as SEC Chair
Cox Voted to Give Federal Loans to Corporations that Move Offshore. In 2004, Cox voted against barring federal loans to American companies that have escaped paying U.S. taxes by moving offshore. The provision would forbid such companies from getting loans from the Export-Import Bank, a federal agency that helps American export firms. An estimated 250,000 jobs are lost annually to offshoring. The amendment to block the loans passed, 270-132. [HR 4818, Roll Call #386, 7/15/04; AP, 6/30/04 & 7/15/04]
Cox Voted to Give Homeland Security Contracts to Offshore Tax Dodgers. In 2002, Cox opposed an effort to bar companies that avoid paying U.S. taxes by moving their headquarters overseas from being awarded contracts with the new Homeland Security Department. The tax haven countries banned in the amendment were: Bermuda, Barbados, the British Virgin Islands, Cayman Islands, the Bahamas, Cyprus, Gibraltar, the Isle of Man, Monaco and the Seychelles. The final bill creating the new department included the ban but exempted corporations that had moved overseas before the law was passed. The motion passed, 318-110. [HR 5005, Roll Call #366, 7/26/02; Baltimore Sun, 1/27/02; AP, 7/27/02; CQ Weekly,6/19/04]
Cox Voted Against a Tough Measure to Crack Down on Greedy CEOs. In 2002, Cox opposed an Enron debacle inspired proposal to require company executives to personally certify the accuracy of corporate financial statements. It also would have enabled the SEC to strip stock bonuses from executives who falsify statements and would have mandated that companies change their accounting firms every few years. The measure would have required rules from Wall Street's self-governing bodies prohibiting analysts from holding stock in companies they cover and from having their compensation tied to their firms' investment banking revenues. Thousands of Enron employees lost their retirement savings as the company's stock plunged in 2001, while top executives cashed out hundreds of millions of dollars of stock. The measure was rejected, 202-219. [HR 3763, Roll Call #108, 4/24/02; Associated Press, 4/24/02]
Cox Supported Giving $25 Billion in Tax Rebates to Big Corporations Such as Enron. In 2001, Cox voted for the GOP stimulus package, which included $25 billion in payments to big business but did not include significant provisions for displaced workers. The bill gave 83 percent of its benefits in FY 2002 to corporations and the wealthy. Only 16.5 percent of the benefits went to low- and middle-income taxpayers and the unemployed. Enron would have received $254 million in alternative minimum tax rebates. The bill passed 216-214. [HR 3090, Roll Call #404, 10/24/01; CBPP, 11/5/01; CTJ, 10/16/01]
Cox Voted for Billions in Tax Breaks for Overseas Corporations. In 2001, Cox voted for a $214 billion stimulus proposal that included a $6.5 billion tax break extension for financial corporations with overseas operations. Under current law, U.S. firms are taxed on some types of income earned by foreign corporations that they control, regardless of whether the income is distributed back to the United States. A temporary provision, due to expire in 2002, exempts income earned in banking, finance, and insurance from these rules. The stimulus proposal would extend the exemption for an additional five years. The bill passed 224-193. [HR 3529, Roll Call #509, 12/20/01; CBPP, 12/26/0112/21/01]
Cox Voted to Strip Conflict-of-Interest Protections on Investment Advice. In 2001, Cox voted for a measure backed by the securities industry that allows investment companies hired by employers to offer advice as long as they disclose any fees and potential conflicts of interest. A 1974 law prohibits investment firms from giving specific advice if it covers any of their own products or services. Opponents, including the AARP, argued the bill strips employees of protections from conflicts of interest by requiring only disclosure of potential conflicts. They also argued that a mutual fund company, for example, would steer employees toward its own investments at the expense of other equally good or better products. The bill passed 280-144. [HR 2269, Roll Call #442, 11/15/01; Chicago Tribune. 11/16/01; Los Angeles Times. 11/16/01; Associated Press. 11/15/01]
Cox Repeatedly Undermined Protections for Investors-Another Chief Function for the SEC Chair
Cox Voted to Repeal a Ban on Conflict-of-Interest Arrangements. In 2004, Cox opposed a motion concerning conflicts of interest that could harm creditors in bankruptcy proceedings. The bill, S 1920, repealed a ban on investment bankers continuing to represent corporations after they file for bankruptcy. By promoting impartiality, the 65-year-old ban is designed to protect creditors. On this vote, members refused to advise House-Senate conferees to keep the ban in the final version of the bill. The motion failed 146-203. [S 1920, Roll Call #11, 1/28/04; Aberdeen American News. 2/1/04]
In 2001, Cox Again Voted Against Protecting Employees from Tainted Investment Advice. In 2001, Cox opposed a proposal to give participants in employer-sponsored retirement plans more protections from potential conflicts of interest among financial advisors. The measure would have required that employers make available advisors from competing financial firms, and that advisors tell employees if they stand to gain higher commissions or other advantages if an employee makes one choice over another. The measure failed 180-243. [HR 2269, Roll Call #441, 11/15/01; Los Angeles Times, 11/16/01]
In 2002, Cox Again Voted Against Providing Workers with Independent Investment Advice. In 2002, Cox opposed a proposal to provide employees independent investment advice, include a worker representative on a corporate pension board, require that workers be notified when executives sell company stock and increase penalties for mismanagement of retirement savings plans. The bill would have forced companies to tell workers within a single business day if a senior executive sold more than $100,000 worth of company stock. The measure was rejected, 187-232. [HR 3762, Roll Call #90, 4/11/02; Baltimore Sun. 4/12/02; Houston Chronicle. 4/12/02]
In 2003, Cox Again Sided with Greedy CEOs and Against Protecting Workers' Pension from Tainted Investment Advice. In 2003, Cox voted against legislation requiring that corporate executive pension and stock options be subject to the same rules that apply to their workers' plans. The bill would have imposed an excise tax on executives who try to leave with lavish pension benefits just as the company is going under. The measure also would have removed GOP language allowing company-picked portfolio advisers to tout stocks to employees in which they have a financial interest. The plan was rejected, 193-236. [H.R. 1000, Roll Call #187, 5/14/03; Chicago Tribune. 5/15/03; Congressional Quarterly Weekly. 5/16/03; The Corporate Library, "Golden Parachutes and Cushion Landings" & "Paying CEOs to Stay at Home," 2/26/03; AARP, "The Policy Book: AARP Public Policies 2003"; Washington Post. 5/18/03]
Cox Repeatedly Voted to Erode Retirement Protections for Seniors
In 2004, Cox Voted for a Scaled-Down Pension Relief Bill. In 2004, Cox voted to enable companies like DuPont, Raytheon, and Delta Air Lines to cut required pension contributions by nearly a half. The pension bill was designed to save U.S. companies - whose pension plans had suffered from stock market losses - as much as $80 billion on retirement costs over two years. [HR 3108, Roll Call #117, 4/3/04; Washington Post, 4/3/04]
Cox Voted to Undermine Protections for Retirement Savings. In 2002, Cox voted to undermine current protections for retirement savings. The bill would end conflict-of-interest restrictions that prevent financial firms such as Fidelity Investments from both managing corporate-sponsored retirement plans and offering specific advice about what products to buy. There were 42 million 401(k) accounts at the end of 2000, with nearly $2 trillion in assets. Enron workers lost nearly $1 billion as the company lurched into bankruptcy and stock prices plummeted. Under the bill, financial services firms like Fidelity and Merrill Lynch that administer 401(k) plans could offer specific investment advice to workers - even if it posed a conflict of interest. An additional provision would eliminate laws that ban a company from rewarding executives' retirement plans more generously than those for rank-and-file workers. Existing laws seek to create parity between top executives and other employees. The measure passed, 255-163. [HR 3762, Roll Call #92, 4/11/02; Boston Globe. 4/12/02; Dallas Morning News. 4/12/02]
Cox Was Repeatedly Fiscally Irresponsible - Yet Would be Expected as SEC Chair to Ensure Companies' Fiscal Responsibility
Cox Voted for Bush's 2001 and 2003 Tax Cuts Which Gave Little Money to Working Americans and Plunged the U.S. from Surplus to Deficit. Cox voted in favor of Bush's 2001 and 2003 tax cuts, which turned a $5.6 trillion ten-year surplus into a $4 trillion ten-year deficit. Despite Bush's misleading rhetoric, almost half of all American taxpayers received less than $100 in 2004 from Republican tax cuts. In 2005, three quarters of taxpayers will get less than $100. In 2006 and beyond, nearly nine out of ten taxpayers will receive less than $100. [Conf. Rept., Roll Call #225, 5/23/03; Conf. Rept, Roll Call #0149, 5/26/01; CBO, Budget and Economic Outlook, 1/01, 1/05, Preliminary Analysis of the President's Budget Request for 2006, 3/4/05; CBPP, 1/25/04; Washington Post, 1/26/05; Citizens for Tax Justice, 5/30/03]
Cox Voted for Huge Tax Cut Package for Wealthy Americans & Big Corporations. Cox repeatedly voted for the House Republicans' $792 billion tax cut plan, to be phased in over 10 years. In addition, businesses received $100 billion in tax breaks, including the ability to deduct 80 percent of business meals. Other benefits were awarded to everyone from retailers to the timber industry and oil and gas producers. [HR 2488, 7/22/99, CQ #333; 8/5/99, CQ #379]
Cox Backed Huge Tax Cuts Paid for with Social Security Surplus. In 1999, Cox voted five times for the GOP Leadership's budget plan that would give $778 billion tax cuts over 10 years, to be ultimately paid for by using part of the Social Security surplus. Experts warned them that the budget surpluses, including the Social Security Trust Fund, would have to be used to pay for any tax cut [CQ Weekly Report, 4/17/99, H Con Res. 68, #72, #73, #77, #84, #85, 3/25/99-4/14/99]
Cox Backed Abolishing the Tax Code without Creating a Replacement. Cox voted repeatedly to abolish the current tax code before any sound alternative was created. This risked throwing family and corporate budget planning into chaos by preventing them from having any ability to plan long term. [HR 3097, 06/17/98, CQ #234]
Cox Repeatedly Voted to Erode Social Security And Entitlement Protections for Seniors
Cox Backed Using Social Security Trust Fund for Tax Cuts. In 1999, Rep. Christopher Cox (D-CA) voted five times for the GOP Leadership's budget plan that would require using part of the Social Security surplus to pay for an exploding tax cut of an estimated $778 billion over the next 10 years. Experts warned that the budget surpluses, including the Social Security Trust Fund, would have to be used to pay for any tax cut. [CQ Weekly Report, 4/17/99; H Con Res 68, CQ #72, 73, 77, 84, 85, 3/25/99-4/14/99]
Cox Voted to Raid as Much as $17 Billion from Social Security; Cuts in Meals-on-Wheels. Cox joined the majority of Republicans in support of a 1999 bill that forced across-the-board cuts in several programs, no matter how crucial to seniors, including funding for Meals-on-Wheels and money for the enforcement of nursing home standards. The bill, the last in a string of spending bills written by the GOP leadership, also forced a raid of the Social Security Trust Fund of more than $17 billion, according to a letter released by the non-partisan Congressional Budget Office. [HR 3064, CQ#549, 10/28/99]
Cox Supported Gingrich's "Contract with America" Medicare Cuts. Cox signed on to Newt Gingrich's plan to force Medicare to "wither on the vine." He voted in lockstep with the Republican leadership to reduce spending on Medicare by $270 billion over seven years. [HR 2491, 11/17/95, CQ #812]
Cox Backed Huge Tax Cuts Paid for with Social Security Surplus. In 1999, Cox voted five times for the GOP Leadership's budget plan that would give $778 billion tax cuts over 10 years, to be ultimately paid for by using part of the Social Security surplus. Experts warned them that the budget surpluses, including the Social Security Trust Fund, would have to be used to pay for any tax cut. [CQ Weekly Report, 4/17/99, H Con Res 68, #72, #73, #77, #84, #85, 3/25/99-4/14/99]
Cox Repeatedly Slighted the Needs of Working Families
Cox Voted Against Raising the Minimum Wage. On May 23, 1996, Cox joined 155 of his Republican colleagues and voted against raising the minimum wage. Moreover, he also voted for an amendment that would have exempted some small businesses from all minimum wage requirements. [HR 1227, 5/23/96, CQ #192, #194; HR 3448, 8/1/96, CQ #398; HR 3846, 3/9/00, CQ #43]
Cox Opposed Vocational Training. Cox voted against a 1997 measure that would have required states and localities to spend at least 10.5 percent of federal vocational education funds on programs which promote gender equity and assist displaced homemakers, single parents and single pregnant women. By a vote of 207-214, the plan was defeated. [HR 1853, 7/22/97, CQ #286-288]
Cox Opposed Protecting the Wages of Low-Income Workers. Cox supported a 1997 Republican bill that would allow employers to force workers into taking the "comp time" option instead of taking more money home in their paychecks. The bill also encouraged employers to replace paid vacation and other benefits with comp time. Furthermore, the proposal did not guarantee that workers could use the comp time when they really need it. [HR 1, 3/19/97, CQ #57]
Cox Backed a Plan Making It Easier for Companies to Avoid Paying Employee Benefits. Cox supported the House Republican 1997 Budget proposal that included language that would have made it easier for companies to classify their workers as "independent contractors." When they are allowed to classify their workers as "independent contractors," employers do not have to withhold unemployment and Social Security taxes, or provide health insurance, pensions or other benefits. Labor laws such as the minimum wage, family and medical leave and civil rights laws do not protect workers who are independent contractors. [HR 2014, 6/26/97, CQ #245]
Cox Opposed Targeted Tax Cuts for Working Families. In 1997 Cox opposed $84 billion in tax cuts for the middle class, including a child tax credit and an education tax credit for four years of college education. He also supported the House Republican Budget proposal that denied tax relief to working families and opposed a Democratic alternative that would have given tax relief to all families with children. [HR 2014, 7/10/97, CQ #258; HR 2014, 6/26/97, CQ #243, #245]
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June 01, 2005
Dean: Bush Should Return Dirty Money
Washington, DC - DNC Chairman Howard Dean issued the following statement:
"Tom Noe's name has been added to the growing list of big-time contributors to President Bush's re-election campaign being investigated for criminal wrongdoing. Noe, as with Abramoff and Reed, was given special status and special access by the Bush-Cheney campaign as a 'Pioneer' donor, but there are now signs that the money he used to acquire this special status was tainted. President Bush should immediately return all of the cash Noe raised to eliminate even the possibility that the hard-earned money of Ohio's workers was improperly diverted to his re-election campaign."
BUSH'S THREE MUSKETEERS OF CORRUPTION: ABRAMOFF, REED, AND NOE
Last week it was reported that Thomas Noe, a 2004 Bush pioneer, is under investigation for mismanaging state funds in Ohio. Along with lobbyists Jack Abramoff and Ralph Reed, Noe marks the third Bush pioneer to be involved in a Federal investigation of corruption. Bush should return the $500,000 that these men have raised for him, to eliminate the appearance of favoritism during these ongoing investigations.
Thomas Noe - Pioneer (2004), Raised at Least $100,000
Republican Chairman Under at Least Six Separate Investigations. "He also happened to be a dealer in rare coins. And in 1998, the Ohio Workers' Compensation Bureau agreed to invest in a rare-coin fund that he controlled as a way to hedge its holdings in stocks and bonds, an investment that experts have called highly unorthodox. But this week, Mr. Noe's lawyers said that as much as $13 million of the state's $50 million investment in his two funds could not be accounted for. Mr. Noe, meanwhile, has become the focus of at least six investigations or audits involving either his handling of the coin investments or his campaign fund-raising. Federal investigators are also looking into his contributions to President Bush's 2004 campaign as a 'Pioneer,' raising more than $100,000." [New York Times, 5/28/05]
While Noe Collected Millions, States Assets Went Missing. According to a Toledo Blade investigation "two coins worth $300,000 had been lost in 2003. Then state officials acknowledged that another 119 coins worth $93,000 were missing." It is unclear to Ohio officials if Noe had the legal authority to invest the state's money on collectibles or whether the state was even the rightful owner of those items. During his time as administrator of the fund Noe collected over $3 million in fees to the state. [New York Times, 5/28/05]
Noe Was "Man to See" in Northwest Ohio For Republicans. For nearly a decade, Thomas Noe has been the Republican Party's man to see in northwest Ohio, a confidant of governors and a prodigious fund-raiser for legislators, judges and just about every Republican statewide elected official. [New York Times, 5/28/05]
Jack Abramoff - Pioneer (2004), Raised At Least $100,000
Criminal Taskforce of Investigators From FBI, IRS, Department of the Interior, Senate and Justice Department Investigating Abramoff. According to the Washington Post, "A criminal task force of investigators from the FBI, Internal Revenue Service, the Justice Department's public integrity section, the National Indian Gaming Commission and the Interior Department inspector general's office is looking into payments Abramoff and Scanlon received from an array of clients, including 11 wealthy Indian tribes that operate gambling casinos, according to officials familiar with the investigation." [Washington Post, 7/16/04]
Scanlon and Abramoff Hand Picked Tribal Candidates, Got Them Elected, Then Lobbied for Million Dollar Contracts. Emails uncovered during a Senate investigation show that Abramoff and fellow lobbyist Michael Scanlon hand picked candidates for tribal councils, backed the candidates with money for campaigning, and then cashed in on lucrative contracts after the individuals were elected. "Lawmakers said the e-mails and other documents show that the two men spent tens of thousands of dollars on mailings and other materials for candidates in tribal elections." [Washington Post, 9/30/04]
Abramoff Boasted To Scanlon That One Scheme Would Help Them Make "Millions." During the Saginaw Chippewas' tribal election, Abramoff sent Scanlon an email boasting that millions would be made once their candidates took control of the tribal council. "I had dinner tonight with Chris Petras (legislative director) of Sag Chip (Saginaw Chippewas). He was salivating at the $4-5 million program I described to him. He is going to come in after the primary with the guy who will be chief if they win (a big fan of ours already) and we are going to help him win. If he wins, they take over in January, and we have millions." [Washington Post, 9/30/04]
Abramoff and Scanlon Took $66 Million From Tribes. Contrary to a Washington Post report that noted Abramoff and Scanlon receiving about $10 million in compensation from tribes, Sen. Ben Nighthorse Campbell (R-Colo), a leading Senator on the Senate Indian Affairs Committee, said, "The truth is it's much worse." Campbell unveiled figures that showed Scanlon's PR firms took in $66 million from six tribes. [Roll Call, 3/23/04]
The Senate Indian Affairs Committee uncovered the following embarrassing and questionable details:
> "At least one tribe, the Agua Caliente of California, paid $300,000 into a pool of money Abramoff used to rent box suites at FedEx Field, the MCI Center and Camden Yards."
> "A Jan. 16, 2002, e-mail from Abramoff to Scanlon talked about needing 'moola' and set a goal of making''$50M this year (our cut!)'"
> "In one nine-month period in 2002, Scanlo's Capitol Campaign Strategies sent more than $12 million to Abramof''s Kay Gold Inc" [Roll Call, 3/23/04]
Abramof's Political Ties to Members of Congress Are Also Being Investigated. According to the Washington Post,"Government sources and people who have been interviewed said the twin investigations are examining tens of millions of dollars in fees that Abramoff and Scanlon received from clients, including, in Abramoff's case, a number of foreign entities. Investigators also are looking into ties the two have to members of Congress, into campaign donations and into whether criminal or tax codes were violated in the work they contracted to do or by the fees they collected, the sources said" [Washington Post, 7/16/04]
Ralph Reed - Pioneer (2000), Ranger (2004), Raised at Least $300,000
Ralph Reed Named in Investigation of Abramoff Payments. The Indian affairs committee, as part of its ongoing investigation of Jack Abramoff, subpoenaed Reed. In addition; investigators are looking into a $4 million payment that Abramoff made to lobbyist Ralph Reed, a key player in the president's reelection operation who raised more than $300,000 for Bush's two presidential campaigns. [Washington Post, 4/27/05; 4/22/05]
Reed Paid Millions By Scanlon and Abramoff To Rally Support To Close Texas Casino. During an ongoing investigation involving Jack Abramoff, Michael Scanlon and Ralph Reed, The Washington Post obtained emails showing the trio manipulating a Texas Casino for millions of dollars. "The e-mails reveal how closely Abramoff and Scanlon worked in tandem with Reed, whose longtime opposition to casino gambling and his connections to churches made him a powerful ally in Texas's effort to shut down the Tigua casino that Cornyn said was operating illegally. Reed was paid $4.2 million by Abramoff and Scanlon for his work opposing several tribal casinos in southern states from 2001 to 2003, government sources said." [Washington Post, 8/30/04]
Once Reed Had Successfully Helped Close The Casino, Abramoff and Scanlon Would Offer The Tribe Its Lobbying Services At A Hefty Price. According to emails between Reed, Abramoff and Scanlon obtained by The Washington Post, Reed "built public support for then-Texas Attorney General John Cornyn's effort get the courts to close the Tigua tribe's Speaking Rock Casino in El Paso in late 2001 and early 2002. The e-mails also reveal what appears to be an effort on the part of Abramoff and Scanlon to then exploit the financial crisis they were helping to create for the tribe by securing both the multimillion-dollar fee and $300,000 in federal political contributions, which the tribe paid." [Washington Post, 9/26/04]
Reed, Abramoff and Scanlon Took Millions From Casino They Quietly Worked To Shut Down. The Washington Post reports that Ralph Reed, Michael Scanlon and Jack Abramoff worked with then-Texas Attorney General John Cornyn to help shut down the Tigua tribe's Speaking Rock Casino in El Paso. "Then the two (Scanlon and Abramoff) quickly persuaded the tribe to pay $4.2 million to try to get Congress to reopen it." [Washington Post, 9/26/04]
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Dean: Third World Debt Relief Critical
Washington, DC - Democratic National Committee Chairman Howard Dean issued the following statement:
"I join the U.S. Conference of American Catholic Bishops in calling for Treasury Secretary Snow to work for an agreement on major new debt cancellation for the poorest countries at the June meeting of the G-7. Developing nations are struggling under the enormous weight of this debt and helping to relieve their economic ills is not only the smart thing to do, but the right thing to do. However, the Bush Administration has failed to lead on this issue, which is a real form of compassionate conservatism that will help countries get back on their feet."
Debt Relief:
Cancellation of Debts Is Desperately Needed by Developing World; Democrats Have a Plan to Fix the Problem
The U.S. Conference of American Catholic Bishops has called upon U.S. leaders to act to relieve the debt burden borne by the developing world-and while President Bush has stalled, Democrats have responded. Millions of people around the world are living in poverty because of Third World debt and its consequences. Over the past 4 decades, poor nations have accumulated large international debts, built up in part through Cold War-motivated lending, natural disasters, and acts of corrupt dictators. Many poor countries spent 30 to 40 percent of their annual budgets paying back decades-old debts-preventing them from developing their economies and investing in education and health care. To solve this problem, Democrats have advanced a plan to cancel debts owed by developing nations.
DEBT RELIEF IS DESPERATELY NEEDED BY DEVELOPING WORLD
Debt Is "Foreign Aid in Reverse." Debt held by developing nations is effectively "foreign aid in reverse" - for every dollar sent to the poorest countries in aid, $1.30 flows back to lenders in debt service. Worse yet, most borrowed more money in order to cover their payments on old debt, creating a vicious cycle of indebtedness. [Jubilee USA, www.jubileeusa.org/jubilee.cgi?path=/learn_more/beginners_guide; Data.org]
Debt Is Preventing Poor Nations from Developing, And Creates a Vicious Circle of Poverty. The IMF encourages hard-pressed governments to cut back spending and downsize government departments. This often results in a rise in unemployment and a cut in wages. Real wages in most African countries have fallen by 50 to 60 per cent since the early 1980s. In Mexico, Costa Rica, and Bolivia average wages have fallen by a third since 1980. Unemployment has risen in many countries in Africa and Latin America since the 1980s. High levels of unemployment are counterproductive as there are fewer taxpayers to contribute to the public purse. So governments raise less through higher taxation - thus further reducing economic growth. [Jubilee USA, www.jubileeusa.org/jubilee.cgi?path=/learn_more/beginners_guide; Center for Global Development, 4/23/04]
Debt Imposes Disastrous and Debilitating Health Consequences on Developing Nations. Between $7.5 and $15 billion is needed annually to fight HIV/AIDS in Africa each year. Yet, Africa pays out $13.5 billion in debt service every year. Africa spends four times as much on debt repayment as she does on healthcare. Spending on healthcare has fallen in many of the world's poorest countries since the 1980s. This often means that people have to pay for healthcare, so the poorest cannot afford it and simply go without. [Jeffrey Sachs, Milwaukee Journal Sentinel, 3/17/02; Jubilee USA; Center for Global Development, 4/23/04]
Debt Prevents Developing Nations from Investing in Education. In sub-Saharan Africa the damage to education has been particularly significant: the percentage of 6-11 year olds enrolled in school has fallen from nearly 60 per cent in 1980 to less than 50 per cent in 1990. [Jubilee USA, www.jubileeusa.org/jubilee.cgi?path=/learn_more/beginners_guide; Center for Global Development, 4/23/04]
Debt Relief Would Allow Developing Nations to Invest in Health Care, Education, and Infrastructure. Full relief of multilateral debt would enable poor countries to save their money and direct those funds to the health and education of their people. In the grand scheme of things, currently scheduled repayments to the international financial institutions are of little significance to the multi-billion dollar institutions or their shareholders but are of great significance to the countries scrambling to make the payments. [Data.org; Center for Global Development, 4/23/04]
DEBT RELIEF FOR POOR NATIONS ALSO HELPS RICH NATIONS
Debt Relief Would Reduce Environmental Damage. As debts mounted, what poorer countries needed most was foreign currency to pay back their debts. According to Susan George, author of The Debt Boomerang, "One easy solution was to milk the earth's resources for the hard cash they brought in, and cut back on environmental conservation programs." Third World countries have done this by heavily overusing soil to grow cash crops, producing more crops on small areas of land using chemical fertilizers, degrading the soil, allowing over-fishing of their waters, allowing multinational companies logging rights to their forests, and chopping down forests to make room for beef cattle grazing or crop farming. [Susan George, The Debt Boomerang; Jubilee USA]
Debt Relief Would Save American Jobs. As Third World countries struggle to pay back their debts, they have to export as many goods as possible and cut back on imports. However, because many Third World countries are exporting similar products, the market is flooded and prices have been plummeting. As a result, the nations demanding repayment also suffer economically. Western countries such as the U.S. are losing out on earnings from some factory and farm produced goods because it is so much cheaper to import them from the Third World. At the same time they are not able to export equipment and other manufactured goods to Third World countries which used to be trading partners, because these countries have no money to buy them. Ultimately, jobs are lost and unemployment rises. [Susan George, The Debt Boomerang]
Debt Relief Would Reduce the Supply of Illegal Drugs. Millions of Americans and Europeans regularly use illegal drugs. Governments across the Western world have poured money into the struggle against drugs. But for all their strategies to fight against drug trafficking, no government has come up with a solution which tackles one of the factors making it possible: debt relief. Almost all the major drug-producing countries also have high international debts. To repay debts they need hard currency from the sale of commodities. Meanwhile, cocaine prices have been rising. So, developing nations turn to the drugs trade to raise foreign currency and to survive. [Susan George, The Debt Boomerang; Jubilee USA]
Debt Relief Would Reduce the Burden on American Taxpayers. Commercial banks have suffered very little from the accumulation of unpaid debts, because in most nations banks have been able to write down their unpaid third world debts in the accounts as losses. This means that these banks pay substantially less tax. Yet the debt still remains and the debtor country must continue repaying it. So, even as the weight of the bank's loss is burdened by the U.S. taxpayer, the burden for the debtor country is enormous. [Susan George, The Debt Boomerang; Jubilee USA]
DEMOCRATS ARE WORKING TO PASS DEBT RELIEF
Democrats Are Advocating Passage of the JUBILEE Act to Cancel Debts that Poor Nations Owe to International Financial Institutions. There are 70 Democratic cosponsors of the Justice and Understanding by International Loan Elimination and Equity Act of 2005 (JUBILEE) Act of 2005. The JUBILEE Act would require the Treasury Department to work with key international financial institutions to: (1) cancel all debts owed to each institution by specified eligible poor countries, and finance such debt cancellation from the institution's ongoing operations, procedures, and accounts; and (2) encourage the government of each eligible poor country to allocate at least 20 percent of its national budget, including the savings from such debt cancellation, for the provision of basic health care services, education services, and clean water services to individuals in the country. [H.R.1130, 3/3/2005]
Democratic Plan Closely Mirrors Plan Put Forth by the American Bishop Conference. The Democratic JUBILEE Act advocates many of the same reforms as the U.S Conference of American Catholic Bishops, including: an agreement on 100 percent cancellation of poor country debts owed to international financial institutions; including the debt of the International Monetary Fund, using the IMF's own resources to pay for it; and making sure that any debt relief goes to help the poorest people in the countries involved. [U.S. Conference of American Catholic Bishops; H.R.1130, 3/3/2005]
President Clinton Allocated $435 Million Toward Financing a Debt Relief Plan. In late 2000, President Clinton secured Congressional approval for a $435-million component within the foreign-aid bill last October. This provision fulfills the pledge the United States originally made in 1996 at the Group of Seven (G-7) summit, where the world's seven richest governments agreed to finance a debt-relief plan for 41 of the poorest third-world nations. Although the measure did not go far enough, and has been criticized for key shortcomings, it was a major step toward reducing the debt burden on poor nations. [American Prospect, 7/2/01]
President Bush Has Not Done Enough to Alleviate Debt Burden. The Bush administration, facing record budget deficits, requested that the World Bank forgive existing debts and reduce the amount it lends in the future, but put no real pressure on the institution to do so. The U.S. also wants the bank to increase the amount of aid it provides in the form of grants, instead of loans, so countries don't slip back into unmanageable arrears. However, it does not call for the necessary debt cancellation. [Wall Street Journal, 2/2/05]
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Republicans Let Their Wallets Do the Talking
Washington, DC - During his appearance on Inside Politics, RNC Chairman Ken Mehlman cited the refusal of GOP members of Congress to return contributions from Tom DeLay as evidence that these members continued to support the ethically-challenged Republican leader.
"JUDY WOODRUFF: Is the party hurt by the allegations [against Tom DeLay]?
RNC CHAIRMAN KEN MEHLMAN: The fact is Tom DeLay does a great job leading for our country...Earlier this past year I saw Tom DeLay's leadership PAC...giving a considerable amount of money to Members of Congress ...I don't know of any checks that were returned." [CNN, 6/1/05]
"Today, Ken Mehlman made it crystal clear: Republican members are letting their wallets do the talking," said DNC Communications Director Karen Finney. "I'm glad Ken Mehlman agrees with Howard Dean -- if Republicans really had concerns about Tom DeLay's repeated efforts to trade legislative access for fundraising favors, extravagant junkets, and handouts to his corporate cronies, they would return that money immediately."
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