Promises, promises

Offshore corporate tax abuse accounts for a loss of around a $100 billion to the US each year. So of course President Obama singled out closing those loopholes as part of an effort to reform the tax code, make sure everyone paid there fair share, no one shirked their duties, and that US tax law was too often "written by well-connected lobbyists on behalf of well-heeled interests and individuals". So now the time has come to do something about it and what's the message? "Keep shirking" and "You sure so have a pretty good point there well-connected interests. Let's keep doing things on behalf well-heeled interests and individuals." Why?

/sound of footsteps running away, car door being slammed, and screeching car tires.

The Wall Street Journal reports Tuesday that the Obama administration has shelved the proposal in the face of intense pressure from business. A key part of the tax plan, and a key beef of industry, was a proposal to reform the part of the tax code that allows companies to defer paying taxes on profits earned from overseas investments. Now the White House will defer reform until later, per the WSJ:

Obama aides say the administration has set the idea aside for now, but may return to it as part of a broader tax overhaul sometime next year. The White House had billed the proposed change as an overdue fix to the tax code and potentially a key revenue-raiser.
...
In response to Obama's statement in May, U.S. business groups including the U.S. Chamber of Commerce, the Business Roundtable and the National Association of Manufacturers announced a new alliance called the Promote America's Competitive Edge Coalition. Tuesday's news is something of a payoff.

And why not? It isn't like we're running massive deficits or anything. I mean anytime something is both popular with the Chamber of Commerce and the financial network TV goons it has to be a good thing for Americans. Besides this is just a logical move for an Administration that pulled the nominations of dozens of qualified cabinet and departments heads because of small tax issues in an attempt to set an example.

But hey, they're totally still committed to tax reform. They...just have a lot on their plate. Plus, have you ever heard the CEO of GE screech about taxes during a White House luncheon? It's absolute torture. Surely this is an issue the business community wont care a tinker's cuss about in a few months when the administration says they'll get to it. I'm sure it'll go over even better as part of a larger reform package that will totally pass the Senate. This is great news. Bnag up job, Barry. Way to stick to your guns.

Parody becomes reality

Hey, remember yesterday? You know, when joking about defending insurance companies being the highest priority of health reform was a funny, tinged with truth joke and not an exact template for a new front of attacks? Someone should have told the GOP that Will Ferrell was joking.

Republicans took to the floor of Congress, the Internet and the Wall Street Journal op-ed page Tuesday in a rush to defend a health insurance company that used taxpayer-subsidized communication to terrify seniors with the prospect that health care reform will cut their Medicare benefits.

Republican leaders in both houses of Congress ripped Sen. Max Baucus (D-Mont.) for urging the Centers for Medicare & Medicaid Services (CMS) to put a stop to the insurer's efforts, decrying what they called a "gag order" and reading the First Amendment on the floor of the Senate.

So what happened? Humana, a crooked group of fucks, got mad about a provision in one of the health care bills that took the Medicare Advantage plan, where the government pays 14% more to insurers than under regular Medicare, and cut those payments to the tune of $12 billion a year. An OMB study said that through Medicare Advantage the government ends up paying $1.30 for every dollars worth of service it gets from insurance companies. Humana got mad about its profits and used a Medicare beneficiaries list to send out a bunch of dishonest scare letters telling grandma that the government was coming to steal her stuff. After Max Baucus heard about it, thought to himself "this sounds illegal in addition to being full of lies" he got them to stop, so the Kentucky based Humana called up several Senators and Congressmen it owned lock and stock to bitch about it.

Whew! Thank God for this, we had gone a few days without seeing how political opposition to health reform was nakedly fueled by corporate toadying and greed. I'm glad that we have men like John Behner and Mitch McConnell in our congress to stand up for the first amendment rights of government teat suckling insurance companies to lie to the elderly because their "pay a $1.30 for a $1" gravy train is going to be marginally affected. Finally, we're off of discussing this unimportant "making health care coverage more affordable for the people" thing and on to seeing our elected betters fist fight in the aisles of congress for campaign cash. It's much more dignified than pretend concern for health care access.

Like a good dick, too big to fail

Good news, taxpayers! It'll cost us a mere $25 Billion to bail out Fannie Mae and Freddie Mac if the Mortgage Hutts buckle under the strain of the crippled housing market they helped create... Unless it costs more.

Even better news! The financial giants might not even require that bailout package proposed by the Bush Administration over the weekend... Unless the housing market continues to dwindle.

On the bright side, given the scope of our $2.9 trillion federal budget for FY 2008, $25 billion is pocket change. To put things in perspective, the estimated cost to rescue these two corporations is more than projected outlays for the following budget items:

-Renewable Energy ($1.2B)
-Higher Education ($23.8B)
-Federal Aviation Administration ($12.1B)
-Total US Army Enlisted Soldier Pay ($19.9B)
-Pell Grants ($13.2B)
-Federal Work Study (<$1.0B) -Customs and Border Protection ($8.8B) -FEMA ($5.2B) -Public Housing ($6.0B) -The (Entire Fucking) Department of Justice ($20.2B)
-National Nuclear Security Administration ($9.4B)
-The Environmental Protection Agency ($7.2B)

...Oh, and the War in Afghanistan ($19B)