Former President Bill Clinton tried to persuade Florida Democratic Rep. Kendrick Meek to drop out of his U.S. Senate race and support Gov. Charlie Crist's independent candidacy in hopes of thwarting a victory by Republican Marco Rubio.
People familiar with the matter said the former president and other top national Democrats worry a win by the charismatic Mr. Rubio, a 39-year-old Cuban-American, would make him a political phenomenon capable of boosting the GOP's chances with Hispanic voters. These people said the conversation occurred during Mr. Clinton's Florida visit on Oct. 19. Mr. Meek wavered for several days—suggesting to some that he could leave the race—but decided against it.
"They had a conversation about the fact that the prospects of him winning had passed him by and that the only way the Republican would be defeated is to jump on board with Crist," said a Florida Democrat familiar with the discussion.
The conversation was reported Thursday evening by Politico.
Meek campaign spokesman Adam Sharon said he didn't know if Mr. Clinton asked Mr. Meek to drop out of the race. "They talked, they've been talking about this race all the time," Mr. Sharon said.
But in a written statement, Meek campaign manager Abe Dyk said Mr. Meek "was never dropping out of this race, is never dropping out of this race, and will never drop out of this race."
Clinton spokesman Matt McKenna confirmed the conversation took place.
Three people familiar with the discussion said Mr. Meek came very close to dropping out. The talk with Mr. Clinton occurred after days of shuttle diplomacy by Clinton counselor Doug Band, who acted as an intermediary between the Crist and Meek camps. The people familiar with the matter said the White House, which has publicly backed Mr. Meek, was aware of the discussion but was not involved. A White House official did not respond to requests for comment late Thursday.
The news of Mr. Clinton's intervention comes as the race appears to be a two-way affair between Messrs. Rubio and Crist, with Mr. Meek dropping far behind. A Quinnipiac poll this week showed Mr. Meek backed by 15% of respondents, while 42% supported Mr. Rubio and 35% backed Mr. Crist.
Republican National Committee Chairman Michael Steele accused Mr. Clinton of wronging black voters in his attempts to coax Mr. Meek out of the race. Mr. Meek, a Miami congressman, is African-American. The intervention would send a "chilling signal to all voters, but especially African Americans," said Mr. Steele, who is black.
Mr. McKenna declined to comment on Mr. Steele's statement. The former president and Mr. Meek are close friends.
Mr. Crist has been trying to build a coalition of Democrats and independent voters, and some Democratic strategists have argued that Mr. Meek's base could put Mr. Crist over the top.
Other Democrats argue Mr. Meek should remain in the race because he may turn out a higher black vote—which would help Democratic gubernatorial candidate Alex Sink, locked in a tight battle with GOP businessman Rick Scott.
Crist campaign spokesman Danny Kanner called the report "accurate." He said Mr. Crist was focused on "uniting common-sense Democrats, independents, and Republicans behind his campaign because he is the one candidate who can defeat" Mr. Rubio." (source)
Typical of Hollywood elites, Rob Reiner sees things like principles and ethics as constructs to be packaged, manipulated, and focus group tested for mass consumption.
Everything is for sell, you see.
No one can have a genuine love and care for America because Rob doesn't see any reason to love America. He can act like he does, but he's not in love with America. Watch how he defines a multi-million membership of Americans who are in love with their country and want to do something to preserve it:
Now watch as we see the titular head of the Democrat Party actually sell fear and hate:
The whistle-blowing website WikiLeaks today released a trove of classified reports that it said documented at least 109,000 deaths in the Iraq war, more than the United States previously has acknowledged, as well as what it described as cases of torture and other abuses by Iraqi and coalition forces.
"The reports detail 109,032 deaths in Iraq, comprised of 66,081 'civilians'; 23,984 'enemy' (those labeled as insurgents); 15,196 'host nation' (Iraqi government forces) and 3,771 'friendly' (coalition forces)," WikiLeaks said in a statement regarding the documents' release. "The majority of the deaths (66,000, over 60 percent) of these are civilian deaths. That is 31 civilians dying every day during the six-year period."
The new documents covered 2004 through 2009, WikiLeaks said, with the exception of May 2004 and March 2009.
A review of the documents by Iraq Body Count, an advocacy group that long has monitored civilian casualties in the war, found 15,000 previously unknown civilian deaths, according to WikiLeaks -- a detail first reported in The Guardian newspaper, one of a handful of international news organizations that got an advance look at the documents.
The U.S. military long has maintained that it does not keep an official death tally, but earlier this month following a Freedom of Information Act request, the Pentagon said some 77,000 Iraqis had been killed from 2004 to mid-2008 -- a shorter period than that covered by WikiLeaks.
Besides the different time periods, the New York Times, which also saw the WikiLeaks documents early, noted that "some deaths are reported more than once, and some reports have inconsistent casualty figures."
Al Jazeera, which also got an advance look at the documents, reported a total of 285,000 war casualties on its Arabic-language website, a number that included both dead and wounded. It also reported that the documents said 681 Iraqi civilians were killed at U.S. checkpoints, 180,000 Iraqis were arrested during the war and 15,000 Iraqis were buried without being identified.
The massive leak of 391,832 documents at 5 p.m. ET today, which WikiLeaks billed as "the largest classified military leak in history," followed WikiLeaks' similar but smaller release on the war in Afghanistan.
The new release was anticipated by the Pentagon, which has warned that publicizing the information could endanger U.S. troops. (source)
LAS VEGAS -- Some voters in Boulder City complained on Monday that their ballot had been cast before they went to the polls, raising questions about Clark County's electronic voting machines.
Voter Joyce Ferrara said when they went to vote for Republican Sharron Angle, her Democratic opponent, Sen. Harry Reid's name was already checked.
Ferrara said she wasn't alone in her voting experience. She said her husband and several others voting at the same time all had the same thing happen.
"Something's not right," Ferrara said. "One person that's a fluke. Two, that's strange. But several within a five minute period of time -- that's wrong."
Clark County Registrar of Voters Larry Lomax said there is no voter fraud, although the issues do come up because the touch-screens are sensitive. For that reason, a person may not want to have their fingers linger too long on the screen after they make a selection at any time.
"Especially in a community with elderly citizens (they have) difficulty in (casting their) ballot," Lomax said. "Team leaders said there were complaints (and the) race filled in."
At any time, voters can go back on the screen and review their selections. They are also allowed to make changes and encouraged to double-check their ballot on screen and on paper before it is cast.
Lomax said voters need to have faith in the system.
"This election, I think, more than ever," he said. "The two sides are very fractured and each side is suspicious and we're caught in the middle." (source)
WOONSOCKET, R.I. – President Barack Obama attacked Republicans with gusto Monday as he plunged into a final week of midterm election campaigning, but his party's prognosis remained darkened by the feeble economy and his itinerary was designed largely to minimize losses.
Nor was his greeting totally friendly in Rhode Island where Obama has pointedly declined to endorse his party's candidate for governor.
Obama can "take his endorsement and shove it," declared Democrat Frank Caprio, battling Republican-turned-independent Lincoln Chafee in a gubernatorial race rated tight in the polls. Chafee endorsed Obama during the 2008 campaign for the White House.
In a little more than five hours in the state, Obama was booked for a factory tour and for a pair of fundraisers that party officials said would bring in $500,000.
He said Republicans had driven the economy into a ditch and then stood by and criticized while Democrats pulled it out. Now that progress has been made, he said, "we can't have special interests sitting shotgun. We gotta have middle class families up in front. We don't mind the Republicans joining us. They can come for the ride, but they gotta sit in back."
Democrats relied on more than the president's time to boost their chances in the final days of the campaign. There was the matter of federal funds, too, in the form of hundreds of millions in grants announced during the day to provide high speed rail service in California, between Chicago and Iowa, and elsewhere. Administration officials left it to Democratic lawmakers to make the announcements, and they did, stressing the job-creating potential of the expansions.
Eight days before the election, the principal uncertainty concerned the size and scope of anticipated Democratic losses in the House, the Senate, governor's races and state legislatures.
An Associated Press-GfK Poll showed that perhaps one-third of all voters have yet to firmly settle on their choices. But that wasn't encouraging for the Democrats, either. Some 45 percent of them prefer the Republican candidate for the House, and 38 percent like the Democrat.
The president arrived as official figures showed more than 6.5 million ballots already have been cast in the 25 states where early voting is permitted or where absentees have been counted, underscoring the importance of get-out-the-vote programs that now begin long before Election Day.
Democrats have invested heavily in such efforts and are counting on them to help tip close races their way in states like Nevada, where Senate Majority Leader Harry Reid faces tea party-backed challenger Sharron Angle. Republicans are counting on campaign enthusiasm — polls agree their voters are more eager to cast ballots than Democrats — as well as their own get-out-the-vote efforts.
Even Democrats concede Republicans are poised for significant gains in Congress, and GOP officials are particularly optimistic about their chances for taking control of the House.
Based on opinion polls and the private assessments of strategists in both parties, it appears Republicans have effectively secured about two dozen of the 40 seats they need to win control of the House.
That leaves dozens of seats where races are competitive in the House and a half-dozen or so in the Senate. Republicans also look for statehouse gains.
Obama's choice of Rhode Island for his one-day trip was partially to raise money for Democratic House candidates elsewhere in the country. Officials said the $500,000 would be split between Providence Mayor David Cicilline, who is running for the House, and the Democratic Congressional Campaign Committee.
The state has two House seats, one held by Democratic Rep. James Langevin, an incumbent in no apparent difficulty; the other being vacated by Democratic Rep. Patrick Kennedy. There, Cicilline is running against Republican John Loughlin in a heavily Democratic state.
The state's unemployment is measured at 11.5 percent, the fourth highest in the country. In his first stop, the president visited a company that makes buckles and straps for outdoor and travel gear, saying he and the Democrats in Congress have cut small business taxes 16 times in 20 months. Republicans "talk a good game" when it comes to tax cuts, he said, but in fact they opposed several bills he labored to get passed.
"It's not enough to just play politics," he said. "You can't focus on the next election. You've got to focus on the next generation."
Caprio called Obama's rebuff "Washington insider politics at its worst." Rhode Island's congressional delegation expressed disapproval about Caprio's remarks, but the executive director of the Democratic Governors Association said the president's decision was disappointing.
"Frank Caprio has spent his career fighting for the values of the Democratic Party. He deserves the full support of our party and its leaders," said executive director Nathan Daschle.
If anything, the White House made it clearer that Caprio will not get Obama's endorsement. "Out of respect for his friend Lincoln Chafee, the president decided not to get involved in this race," said White House spokesman Bill Burton. It was the first time the White House had cited Chafee as the reason for Obama's non-endorsement of a Democrat.
White House aides also arranged for Obama to tour a factory as part of a campaign-long effort to showcase efforts by his administration and the Democratic-controlled Congress to assist small businesses. In a conference call to reporters on Sunday night, they said American Cord & Webbing had been able to hire back all of the employees laid off last year and was planning on hiring more. They said the company won approval from the Small Business Administration last month for a loan to make possible an expansion of the facility.
Coast to coast, the multimillion-dollar ad war continued unabated.
The Republican Senate campaign committee announced it would put $3 million into a final-week fleet of ads designed to help Carly Fiorina defeat Sen. Barbara Boxer in a California race that is close in the polls.
Democrats hastened to Reid's side in Nevada. Sen. John Kerry, D-Mass., became the latest lawmaker to send out an urgent e-mail fundraising appeal for the top Democrat.
It said the same wealthy Texans who attacked his Vietnam War record during the 2004 presidential campaign were now aiming at Reid. "These guys will say anything and spend anything to get what they want," Kerry wrote.
Obama was returning to the White House for a few days before resuming campaigning at week's end. His itinerary then will include Bridgeport, Conn., where party officials are hoping he can mobilize African-Americans whose votes are needed in races for the Senate and governor, as well as a re-election bid by Democratic Rep. Jim Himes.
Obama also will campaign in Pennsylvania, where polls show Rep. Joe Sestak in a close race with Republican Pat Toomey — for a Senate seat that Democrats currently hold. Similarly, there are numerous Democratic-held House seats in the state that Obama is working to hold.
Later stops are in Ohio, where Democratic Gov. Ted Strickland is struggling to win a new term against Republican challenger John Kasich, and the president's home state of Illinois, where polls show both a Senate seat and the governor's office are in danger of falling to the Republicans. (source)
When Rep. Nancy Pelosi (D-Calif.) gave her inaugural address as speaker of the House in 2007, she vowed there would be “no new deficit spending.” Since that day, the national debt has increased by $5 trillion, according to the U.S. Treasury Department.
"After years of historic deficits, this 110th Congress will commit itself to a higher standard: Pay as you go, no new deficit spending,” Pelosi said in her speech from the speaker’s podium. “Our new America will provide unlimited opportunity for future generations, not burden them with mountains of debt."
Pelosi has served as speaker in the 110th and 111th Congresses.
At the close of business on Jan. 4, 2007, Pelosi’s first day as speaker, the national debt was $8,670,596,242,973.04 (8.67 trillion), according to the Bureau of the Public Debt, a division of the U.S. Treasury Department. At the close of business on Oct. 22, it stood at $13,667,983,325,978.31 (13.67 trillion), an increase of 4,997,387,083,005.27 (or approximately $5 trillion).
Pelosi, the 60th speaker of the U.S. House of Representatives, has added more to the national debt than the first 57 House speakers combined.
The $4.997-trillion increase in the national debt since she took the gavel is more debt than the federal government amassed from the speakership of Rep. Frederick Muhlenberg of Pennsylvania, who became the first speaker of the House on April 1, 1789, to the start of the speakership of Rep. Newt Gingrich of Georgia, the 58th speaker, who took up the gavel on Jan. 4, 1995.
The national debt first topped $5 trillion on Feb. 23, 1996, more than a year into Gingrich’s speakership.
Gingrich served as speaker in the 104th and 105th Congresses, officially taking the office on Jan. 4, 1995 and leaving office on Jan. 3, 1999. During that period, according to the Treasury Department, the national debt increased $812.4 billion dollars ($812,423,595,162.98), rising from $4.8 trillion ($4,801,793,426,032.89) to $5.6 trillion ($5,614,217,021,195.87).
Rep. Dennis Hastert (R-Ill.), the 59th speaker, who presided over the 106th, 107th, 108th and 109th Congresses (serving as speaker from Jan. 6, 1999 to Jan. 3, 2007), enjoys the distinction of having increased the debt more than any other speaker except Pelosi. During Hastert’s time, the national debt increased $3.1 trillion ($3,061,785,703,851.74).
Thus far (the 111th Congress will not be done until the end of the year), Pelosi has increased the debt by an average of $2.5 trillion for each Congress she has led as speaker. Hastert increased the debt by an average of about $785 billion per Congress, while Gingrich increased the debt by an average of $406 billion per Congress.
Under the U.S. Constitution, the federal government cannot spend any money that has not been approved by congressional appropriations; and, by congressional precedent, appropriations bills originate in the House.
"No money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law," says Article 1, Section 9, Clause 7 of the Constitution.
“By precedent, appropriations originate in the House, with the Senate following suit,” says the House Rules Committee in an explanation of the appropriations process.
Annual federal expenditures have increased by about $730 billion in the Pelosi era, while annual deficits have increased almost 8 fold. In fiscal 2007, when Pelosi became speaker, the federal government spent $2.73 trillion and ran an annual deficit of $162.8 billion, according to the Treasury Department. In fiscal 2009, the federal government spent $3.52 trillion and ran an annual deficit of $1.4157 trillion. In fiscal 2010, the federal government spent $3.46 trillion and ran an annual deficit of $1.2941 trillion.
“The 2010 deficit was equal to 8.9 percent of gross domestic product (GDP), CBO estimates, down from 10.0 percent in 2009 (based on the most current estimate of GDP),” the Congressional Budget Office said in its October Monthly Budget Review. “The 2010 deficit was the second-highest shortfall—and 2009 the highest—since 1945, relative to the size of the economy.” (source)
On Election Day 2008, Maruse Heath, the leader of Philadelphia's New Black Panther Party, stood in front of a neighborhood polling place, dressed in a paramilitary uniform.
Within hours, an amateur video showing Heath, slapping a black nightstick and exchanging words with the videographer, had aired on TV and ricocheted across the nation.
Among those who saw the footage was J. Christian Adams, who was in his office in the Justice Department's Civil Rights Division in Washington.
"I thought, 'This is wrong, this is not supposed to happen in this country,' " Adams said. "There are armed men in front of a polling place, and I need to find out if they violated the law, because in my mind there's a good chance that they did."
The clash between the black nationalist and the white lawyer has mushroomed into a fierce debate over the government's enforcement of civil rights laws, a dispute that will be aired next week when the U.S. Commission on Civil Rights unveils findings from a year-long investigation.
Two months after Election Day, Adams and his supervisors in the George W. Bush administration filed a voter-intimidation lawsuit against Heath and his colleagues, even though no voters had complained. The Obama administration months later dismissed most of the case, even though the Panthers had not contested the charges.
Interviews and government documents reviewed by The Washington Post show that the case tapped into deep divisions within the Justice Department that persist today over whether the agency should focus on protecting historically oppressed minorities or enforce laws without regard to race.
The dispute over the Panthers, and the Justice Department's handling of it, was politicized from the start, documents and interviews show. On Election Day, the issue was driven by Republican poll watchers and officials and a conservative Web site.
At the department, Adams and his colleagues pushed a case that other career lawyers concluded had major evidentiary weaknesses. After the Obama administration took over, high-level political appointees relayed their thoughts on the case in a stream of internal e-mails in the days leading to the dismissal.
That decision to pull back the lawsuit caused conflicts so heated that trial team members at times threw memos in anger or cursed at supervisors.
The dismissals triggered outrage from conservatives and congressional Republicans, two internal Justice Department inquiries and the investigation by the conservative-controlled civil rights commission. The debate has thrust Eric H. Holder Jr., the nation's first African American attorney general and long the target of Republican attacks, into an unwelcome spotlight.
In recent months, Adams and a Justice Department colleague have said the case was dismissed because the department is reluctant to pursue cases against minorities accused of violating the voting rights of whites. Three other Justice Department lawyers, in recent interviews, gave the same description of the department's culture, which department officials strongly deny.
"The department makes enforcement decisions based on the merits, not the race, gender or ethnicity of any party involved," spokeswoman Tracy Schmaler said. "We are committed to comprehensive and vigorous enforcement of the federal laws that prohibit voter intimidation, as our record reflects."
A 'non-incident'
On Election Day, Jerry Jackson arrived first at Guild House West, an assisted-living center in north Philadelphia that served as a polling place in the overwhelmingly Democratic ward. As a certified Democratic poll watcher who lives in the neighborhood, he had worked several elections at the red brick building with a circular drive in front.
Jackson was soon joined by Heath, both decked out in the uniform of the New Black Panther Party: black berets, jackets, shirts, pants and boots.
The two, regulars around the neighborhood, also protest often near City Hall. They have been shown in videos and quoted in news reports using incendiary rhetoric, telling African Americans to rise up against their "slave masters" and condemning whites as "crackers."
But neighbors said they view Jackson and Heath - who declined to comment - as annoyances rather than threats.
Jackson, 54, and Heath, 39, have criminal histories that between them include convictions for drug possession, robbery and simple assault, according to court records. Their local New Black Panther Party is part of a small, radical black nationalist organization with members in a handful of cities. It is not connected to the Black Panther Party of the 1960s.
That morning, the men stood a few feet apart on a narrow sidewalk in front of the polling place, forcing voters to walk between them.
Some in the neighborhood didn't see a problem. James "Jimmy" Whitmire, 74, who voted in the Guild House recreation room, said he saw nothing "that was destructive . . . nothing offensive." Three other residents who voted that day said in interviews that they agreed.
About 10 a.m., a complaint from an unknown caller went to the local Republican Party headquarters. The message was relayed to Chris Hill, a GOP poll watcher, who hurried over with two lawyers volunteering for the party.
As he walked up the driveway to the polling place, Hill said in an interview, Heath called out: "What are you doing here, cracker?"
Hill ignored him and walked between the two men. Jackson brushed his shoulder, Hill said.
Inside, a black poll worker said that although the Panthers had made no direct threats, he didn't feel safe going outside, according to Hill, who then called police. (The worker, a registered Democrat hired that day to work the polls for the GOP, later told the civil rights commission that he did not feel threatened.)
Others from the Republican Party showed up that day, including Stephen Morse, a videographer and recent University of Pennsylvania graduate. Morse pulled out a video camera and focused on Heath.
Less than 15 minutes later, Philadelphia police arrived. A one-page police report says officers allowed Jackson to stay because he was a poll watcher but asked Heath to leave.
"That's why you're going to be ruled by a black man, now!" Heath shouted as he departed, according to witnesses. They said he also called Obama a "tool of the white man."
Morse raced back to the GOP headquarters. "This footage is golden," he recalled thinking. But Hill stayed put. A Republican official, he said, alerted him that Fox News was sending a reporter.
Within two hours, Morse's video had been uploaded to ElectionJournal.org, a conservative Web site, and Fox played it in newscasts. CNN posted the video online.
Calls poured into the Philadelphia district attorney's office reporting voter intimidation at Guild House. But staff members realized they were from cable news viewers as far away as Florida.
No call had come from a registered voter in Philadelphia. The office would deem the day's event a "non-incident.''
Deepening a divide
In Washington that day, word of the racially charged dispute reached the voting section of Justice's Civil Rights Division, a unit already divided over issues of race and enforcement.
The complaint went to Christopher Coates, the section's chief. A respected voting expert, Coates had been hired at Justice during the Clinton administration after a stint with the American Civil Liberties Union. He also came up in an internal watchdog report criticizing politicized hiring at the division during the Bush administration. The report referred to him as "a true member of the team."
Since the division was created in 1957, most of its cases have been filed on behalf of minorities. But there has not always been agreement about that approach.
Civil rights officials from the Bush administration have said that enforcement should be race-neutral. But some officials from the Obama administration, which took office vowing to reinvigorate civil rights enforcement, thought the agency should focus primarily on cases filed on behalf of minorities.
"The Voting Rights Act was passed because people like Bull Connor were hitting people like John Lewis, not the other way around," said one Justice Department official not authorized to speak publicly, referring to the white Alabama police commissioner who cracked down on civil rights protesters such as Lewis, now a Democratic congressman from Georgia.
Before the New Black Panther controversy, another case had inflamed those passions. Ike Brown, an African American political boss in rural Mississippi, was accused by the Justice Department in 2005 of discriminating against the county's white minority. It was the first time the 1965 Voting Rights Act was used against minorities and to protect whites.
Coates and Adams later told the civil rights commission that the decision to bring the Brown case caused bitter divisions in the voting section and opposition from civil rights groups.
Three Justice Department lawyers, speaking on the condition of anonymity because they feared retaliation from their supervisors, described the same tensions, among career lawyers as well as political appointees. Employees who worked on the Brown case were harassed by colleagues, they said, and some department lawyers anonymously went on legal blogs "absolutely tearing apart anybody who was involved in that case," said one lawyer.
"There are career people who feel strongly that it is not the voting section's job to protect white voters," the lawyer said. "The environment is that you better toe the line of traditional civil rights ideas or you better keep quiet about it, because you will not advance, you will not receive awards and you will be ostracized."
The 2008 Election Day video of the Panthers triggered a similar reaction, said a second lawyer. "People were dismissing it, saying it's not a big deal. They said we shouldn't be pursuing that case."
But Coates thought differently; he dispatched two Justice Department lawyers, who interviewed Hill, the Republican poll watcher.
Asked whether any voters were intimidated, Hill said he told the lawyers he had seen three people leave the polling place when they saw the chaos out front. Hill did not have their names and did not know whether they came back to vote.
"We're not going to let this stand," one of the lawyers told him.
An unpopular case
Adams, 42, was assigned as the lead lawyer. A voting section lawyer since 2005, he would later resign over the Obama administration's handling of the case, publicizing his views in conservative media. Administration supporters call him a conservative activist; other Justice Department lawyers say his views, while conservative, did not influence his work.
Adams scrambled to make the case, documents show. In a December 2008 e-mail to a recipient whose name was redacted, he laid out what he felt he needed: "Under the statute, a black poll watcher for you being abused or insulted is critical, and thus far, I don't have one."
A criminal investigation was dropped. But on Dec. 22, Adams, Coates and another lawyer recommended a civil lawsuit under a Voting Rights Act section banning the intimidation or attempted intimidation of voters or those "aiding" voters.
"It is shocking to think that a U.S. citizen might have to run a gauntlet of billy clubs in order to vote," they wrote in an internal memo. Although Adams has called the case a "slam dunk," lawyers acknowledged in the memo that less than 10 lawsuits had been filed under this section of the law and no plaintiff had ever won.
On Jan. 7, 2009, less than two weeks before Obama took office, the Justice Department filed a lawsuit seeking a permanent injunction against Heath, Jackson, Malik Shabazz, the party's national chairman and the party, banning them from standing in front of U.S. polling places with a weapon or wearing the party uniform.
Although the Panthers later denied intimidating voters, they said nothing about the lawsuit. On April 2, the court clerk in Philadelphia entered a "default" against the defendants for failure to respond. The Justice Department had one month to file a motion for a final judgement. A ruling on that motion would have ended the case.
Instead, the department on May 15 dismissed the charges against Jackson, Malik Shabazz and the party without citing a reason. It sought to narrow the injunction against Heath to polling places in Philadelphia through the 2012 elections. That was granted three days later.
Legal experts have called the department's reversal exceedingly rare, especially because the defendants had not contested the charges.
Coates and Adams say the case was narrowed because of opposition to filing voting-rights actions against minorities and pressure from civil rights groups, but have not cited evidence.
Justice Department officials have repeatedly said the reversal stemmed from a legal review and insufficient evidence. Documents show that two career lawyers asked to review the case before it was dropped said the evidence against the party and its chairman was weak, though they recommended that the government proceed against all four defendants.
Officials have denied any political considerations and said the final decision was made by Loretta King, a 30-year career lawyer designated by Obama as acting head of civil rights.
Asked at a civil rights commission hearing in May whether any of the department's political leadership was "involved in" the decision to dismiss the Panthers case, assistant attorney general for civil rights Thomas E. Perez said no.
"This is a case about career people disagreeing with career people,'' said Perez, who was not in the department at the time. He also said that political appointees are regularly briefed on civil rights cases and, whenever there is a potentially controversial decision, "we obviously communicate that up the chain."
Justice Department records turned over in a lawsuit to the conservative group Judicial Watch show a flurry of e-mails between the Civil Rights Division and the office of Associate Attorney General Thomas Perelli, a political appointee who supervises the division.
"Where are we on the Black Panther case?" read the subject line of a Perelli e-mail to his deputy the day before the case was dropped. Perelli, the department's No. 3 official, wrote that he was enclosing the "current thoughts" of the deputy attorney general's office, the No. 2 official.
Perelli's staff brought the matter to Holder's attention before the department dropped the charges, other documents show. Holder did not make the decision, officials say.
In the months after the case ended, tensions persisted. A new supervisor, Julie Fernandes, arrived to oversee the voting section, and Coates testified that she told attorneys at a September 2009 lunch that the Obama administration was interested in filing cases - under a key voting rights section - only on behalf of minorities.
"Everyone in the room understood exactly what she meant," Coates said. "No more cases like the Ike Brown or New Black Panther Party cases."
Fernandes declined to comment through a department spokeswoman.
A few months later, Coates requested a transfer to the U.S. attorney's office in South Carolina. When colleagues scheduled a farewell lunch, one attorney who attended said Coates vented his frustrations, criticizing the department for failing to enforce the law "on a non-racial basis.''
Justice Department officials say they treat everyone equally. Holder, in a speech last year to the Washington Lawyers' Committee for Civil Rights and Urban Affairs said the department's "commitment to Equal Protection - and to full participation in our nation's elections - will not waiver. Never."
That was one month after the end of the New Black Panther Party case. (source)
(USC) -- Don't try wearing a Bush hat or sweatshirt at an Obama rally.
Duane Hammond says it's what got him fired. Hammond is a union stagehand who was part of the crew that built the platform for the Obama event on campus.
He came to work early this morning wearing clothing that says "George H. W. Bush". Hammond's son is in the Navy, currently serving on the aircraft carrier U.S.S. George H. W. Bush.
Hammond says he was not trying to make a political statement. He says he got the sweatshirt and hat during a visit to the aircraft carrier on Family Day. The back of his sweatshirt has a large drawing of the ship.
He says he wore it to show how proud he is of his son.
That didn't go over well with his union supervisor. Hammond says he was told to take off the sweatshirt, or he would have to go home.
He refused. They told him he was fired from the job. (source)
The American Federation of State, County and Municipal Employees is now the biggest outside spender of the 2010 elections, thanks to an 11th-hour effort to boost Democrats that has vaulted the public-sector union ahead of the U.S. Chamber of Commerce, the AFL-CIO and a flock of new Republican groups in campaign spending.
The 1.6 million-member AFSCME is spending a total of $87.5 million on the elections after tapping into a $16 million emergency account to help fortify the Democrats' hold on Congress. Last week, AFSCME dug deeper, taking out a $2 million loan to fund its push. The group is spending money on television advertisements, phone calls, campaign mailings and other political efforts, helped by a Supreme Court decision that loosened restrictions on campaign spending.
"We're the big dog," said Larry Scanlon, the head of AFSCME's political operations. "But we don't like to brag."
The 2010 election could be pivotal for public-sector unions, whose clout helped shield members from the worst of the economic downturn. In the 2009 stimulus and other legislation, Democratic lawmakers sent more than $160 billion in federal cash to states, aimed in large part at preventing public-sector layoffs. If Republicans running under the banner of limited government win in November, they aren't likely to support extending such aid to states.
Newly elected conservatives will also likely push to clip the political power of public-sector unions. For years, conservatives have argued such unions have an outsize influence in picking the elected officials who are, in effect, their bosses, putting them in a strong position to push for more jobs, and thus more political clout.
Some critics say public-sector unions are funded by what is essentially taxpayer cash, since member salaries, and therefore union dues, come directly from state budgets.
"Public-sector unions have a guaranteed source of revenue—you and me as taxpayers," said Glenn Spencer, executive director of the Workforce Freedom Initiative at the Chamber of Commerce.
Gregory King, a spokesman for AFSCME, said conservatives make too much of the issue, especially the link to taxpayers. Based on their logic, "the government is funding the movie industry every time AFSCME members go out to the movies," he said.
The union is spending heavily this year because "a lot of people are attacking public-sector workers as the problem," said AFSCME President Gerald McEntee. "We're spending big. And we're damn happy it's big. And our members are damn happy it's big—it's their money," he said.
Spending totals are still in flux, and another group could overtake AFSCME in the race's remaining days.
Campaign spending by outside groups is increasing rapidly but is still smaller than spending by the Democratic and Republican parties, which combined have already doled out nearly $1 billion in this election cycle, according to the nonpartisan Center for Responsive Politics.
AFSCME's campaign push accounts for an estimated 30% of what pro-Democratic groups, including unions, plan to spend on independent campaigns to elect Democrats. It was made possible in part by a 2010 Supreme Court decision that permitted companies and unions to use their own funds to pay for certain political ads. That unleashed a flood of contributions and spawned an array of new outside political organizations, most of which were set up to help elect Republicans.
The political debate over spending by outside groups has focused largely on advertising buys by those Republican-oriented groups. Unions have mostly escaped attention in that debate, in part because they traditionally have spent much of their cash on other kinds of political activities, including get-out-the-vote efforts.
Previously, most labor-sponsored campaign ads had to be funded by volunteer donations. Now, however, AFSCME can pay for ads using annual dues from members, which amount to about $390 per person. AFSCME said it will tap membership dues to pay for $17 million of ads backing Democrats this election.
President Barack Obama has criticized the Supreme Court decision that opened the door to more spending by corporations and unions. When asked about AFSCME's ramped up campaign efforts following the court's decision, the White House focused on largely anonymous campaign spending by what it termed "special interests."
"The president has been crystal clear that third-party groups which spend tens of millions of dollars from anonymous sources are a threat to our democracy—regardless of which candidates they support," said White House spokesman Josh Earnest. He said these groups are disproportionately backing Republican candidates.
Public-sector employees are bracing for the most severe budget crunch yet in fiscal 2012, which for many states starts in mid-2011. Federal stimulus aid will run out in a few months and Republicans oppose providing more. Tax revenues remain well below pre-recession levels and state lawmakers who raised taxes at record rates in 2010 are reluctant to go further.
Republican takeovers in Congress and statehouses could breathe life into efforts to restrict how public-sector unions collect and spend members' dues. Republican Gov. Chris Christie has proposed including public-employee unions under New Jersey's pay-to-play rules, which generally limit political contributions by affected groups and individuals. Other Republican governors are likely to pursue similar measures.
One group, the National Right to Work Legal Defense Foundation, one of the main conservative union critics, advocates turning public-sector unions into voluntary organizations. That would deprive unions of the ability to use the government payroll system to collect dues and contributions. It would also allow state and local employees to organize and bargain in other ways.
Mr. Scanlon, who has run elections for AFSCME for nearly 15 years, acknowledged the connection between the number of government jobs and the union's political clout. "The more members coming in, the more dues coming in, the more money we have for politics," Mr. Scanlon said. AFSCME's membership has grown 25% in the past decade.
AFSCME began the year with a $70 million budget to campaign for Democrats who supported its priorities in Washington. It wasn't planning to help those who opposed issues including health-care legislation and extending unemployment benefits.
But with a Republican takeover of the House in the offing, AFSCME reversed itself and began supporting Democrats it once opposed, following what it calls the "218 Strategy," after the number of seats needed for a House majority.
In eastern Ohio, AFSCME is campaigning hard for Rep. Zack Space, even though the second-term Democrat has been abandoned by other unions and Democratic interest groups after he voted against health-care legislation. "We know he has been bad on the issues, but the point is, if you don't elect the Zack Spaces of the world then you end up with Speaker Boehner," said Mr. Scanlon, referring to Rep. John Boehner of Ohio, who is a leading candidate to become Speaker of the House if the Republicans take the majority.
"We may not be happy with him, but let's get people re-elected and work to change their votes. It's not a perfect world."
Because the union no longer needs to use volunteer donations to pay for attack ads, it has more money left in its political action committee to donate directly to candidates. AFSCME has donated a total $2.2 million directly to Democratic candidates in this election cycle, including nearly $100,000 this week to the re-election campaigns of 57 House and Senate candidates.
The union has also donated a total of $5 million to the Democratic Governors Association and Democratic Legislative Campaign Committee, making it the top donor to the Democrats' efforts to win gubernatorial and state-legislative races. It's also the top donor to Patriot Majority, a leading Democratic outside group that is running ads to help Senate Majority Leader Harry Reid of Nevada and other congressional Democrats.
News Corp., publisher of The Wall Street Journal, is one of the larger corporate donors on the other side of the ledger, and has donated $1.25 million to the Republican Governors Association and $1 million to the Chamber of Commerce. (source)
Two central facts give shape to the historic 2010 election. The first is not understood by Republicans, and the second not admitted by Democrats.
The first: the tea party is not a "threat" to the Republican Party, the tea party saved the Republican Party. In a broad sense, the tea party rescued it from being the fat, unhappy, querulous creature it had become, a party that didn't remember anymore why it existed, or what its historical purpose was. The tea party, with its energy and earnestness, restored the GOP to itself.
In a practical sense, the tea party saved the Republican Party in this cycle by not going third-party. It could have. The broadly based, locally autonomous movement seems to have made a rolling decision, group by group, to take part in Republican primaries and back Republican hopefuls. (According to the Center for the Study of the American Electorate, four million more Republicans voted in primaries this year than Democrats, the GOP's highest such turnout since 1970. I wonder who those people were?)
Because of this, because they did not go third-party, Nov. 2 is not going to be a disaster for the Republicans, but a triumph.
The tea party did something the Republican establishment was incapable of doing: It got the party out from under George W. Bush. The tea party rejected his administration's spending, overreach and immigration proposals, among other items, and has become only too willing to say so. In doing this, the tea party allowed the Republican establishment itself to get out from under Mr. Bush: "We had to, boss, it was a political necessity!" They released the GOP establishment from its shame cringe.
And they not only freed the Washington establishment, they woke it up. That establishment, composed largely of 50- to 75-year-olds who came to Washington during the Reagan era in a great rush of idealism, in many cases stayed on, as they say, not to do good but to do well. They populated a conservative infrastructure that barely existed when Reagan was coming up: the think tanks and PR groups, the media outlets and governmental organizations. They did not do what conservatives are supposed to do, which is finish their patriotic work and go home, taking the knowledge and sophistication derived from Washington and applying it to local problems. (This accounts in part for the esteem in which former Bush budget chief and current Indiana Gov. Mitch Daniels is held. He went home.)
The GOP establishment stayed, and one way or another lived off government, breathed in its ways and came to know—learned all too well!—the limits of what is possible and passable. Part of the social and cultural reality behind the tea party-GOP establishment split has been the sheer fact that tea partiers live in non-D.C. America. The establishment came from America, but hasn't lived there in a long time.
I know and respect some of the establishmentarians, but after dinner, on the third glass of wine, when they get misty-eyed about Reagan and the old days, they are not, I think, weeping for him and what he did but for themselves and who they were. Back when they were new and believed in something.
Finally, the tea party stiffened the GOP's spine by forcing it to recognize what it had not actually noticed, that we are a nation in crisis. The tea party famously has no party chiefs and no conventions but it does have a theme—stop the spending, stop the sloth, incompetence and unneeded regulation—and has lent it to the GOP.
Actually, Maureen "Moe" Tucker, former drummer of the Velvet Underground, has done the best job ever of explaining where the tea party stands and why it stands there. She also suggests the breadth and variety of the movement. In an interview this week in St. Louis's Riverfront Times, Ms. Tucker said she'd never been particularly political but grew alarmed by the direction the country was taking. In the summer of 2009, she went to a tea-party rally in southern Georgia. A chance man-on-the-street interview became a YouTube sensation. No one on the left could believe this intelligent rally-goer was the former drummer of the 1960s breakthrough band; no one on the left understood that an artist could be a tea partier. Because that's so not cool, and the Velvet Underground was cool.
Ms. Tucker, in the interview, ran through the misconceptions people have about tea partiers: "that they're all racists, they're all religious nuts, they're all uninformed, they're all stupid, they want no taxes at all and no regulations whatsoever." These stereotypes, she observed, are encouraged by Democrats to keep their base "on their side." But she is not a stereotype: "Anyone who thinks I'm crazy about Sarah Palin, Bush, etc., has made quite the presumption. I have voted Democrat all my life, until I started listening to what Obama was promising and started wondering how the hell will this utopian dream be paid for?"
There is also this week a striking essay by Fareed Zakaria, no tea partier he, in Time magazine. He unknowingly touched on part of the reason for the tea party. Mr. Zakaria, born and raised in India, got his first sense of America's vitality, outsized ways, glamour and crazy high-spiritedness as a young boy in the late 1970s watching bootlegged videotapes of "Dallas." What a country! His own land, in comparison, seemed sleepy, hidebound. Now when he travels to India, "it's as if the world has been turned upside down. Indians are brimming with hope and faith in the future. After centuries of stagnation, their economy is on the move, fueling animal spirits and ambition. The whole country feels as if it has been unlocked." Meanwhile the mood in the U.S. seems glum, dispirited. "The middle class, in particular, feels under assault." Sixty-three percent of Americans say they do not think they will be able to maintain their current standard of living. "The can-do country is convinced that it can't."
All true. And yet. We may be witnessing a new political dynamism. The Tea Party's rise reflects anything but fatalism, and maybe even a new high-spiritedness. After all, they're only two years old and they just saved a political party and woke up an elephant.
The second fact of 2010 is understood by Republicans but not admitted by Democrats. It is that this is a fully nationalized election, and at its center it is about one thing: Barack Obama.
It is not, broadly, about the strengths or weaknesses of various local candidates, about constituent services or seniority, although these elements will be at play in some outcomes, Barney Frank's race likely being one. But it is significant that this year Mr. Frank is in the race of his life, and this week on TV he did not portray the finger-drumming smugness and impatience with your foolishness he usually displays on talk shows. He looked pale and mildly concussed, like someone who just found out that liberals die, too.
This election is about one man, Barack Obama, who fairly or not represents the following: the status quo, Washington, leftism, Nancy Pelosi, Fannie and Freddie, and deficits in trillions, not billions.
Everyone who votes is going to be pretty much voting yay or nay on all of that. And nothing can change that story line now. (source)
The Dublin subsidiary, which employs almost 2,000 people and sells advertising across Europe, the Middle East and Africa, has more than tripled its workforce since 2006 and is credited with almost 90 percent of Google’s overseas sales, which totaled $12.5 billion in 2008.
Google 2.4% Rate Shows How $60 Billion Lost to Tax Loopholes
Google Inc. cut its taxes by $3.1 billion in the last three years using a technique that moves most of its foreign profits through Ireland and the Netherlands to Bermuda.
Google’s income shifting -- involving strategies known to lawyers as the “Double Irish” and the “Dutch Sandwich” -- helped reduce its overseas tax rate to 2.4 percent, the lowest of the top five U.S. technology companies by market capitalization, according to regulatory filings in six countries.
“It’s remarkable that Google’s effective rate is that low,” said Martin A. Sullivan, a tax economist who formerly worked for the U.S. Treasury Department. “We know this company operates throughout the world mostly in high-tax countries where the average corporate rate is well over 20 percent.”
The U.S. corporate income-tax rate is 35 percent. In the U.K., Google’s second-biggest market by revenue, it’s 28 percent.
Google, the owner of the world’s most popular search engine, uses a strategy that has gained favor among such companies as Facebook Inc. and Microsoft Corp. The method takes advantage of Irish tax law to legally shuttle profits into and out of subsidiaries there, largely escaping the country’s 12.5 percent income tax. (See an interactive graphic on Google’s tax strategy here.)
The earnings wind up in island havens that levy no corporate income taxes at all. Companies that use the Double Irish arrangement avoid taxes at home and abroad as the U.S. government struggles to close a projected $1.4 trillion budget gap and European Union countries face a collective projected deficit of 868 billion euros.
Countless Companies
Google, the third-largest U.S. technology company by market capitalization, hasn’t been accused of breaking tax laws. “Google’s practices are very similar to those at countless other global companies operating across a wide range of industries,” said Jane Penner, a spokeswoman for the Mountain View, California-based company. Penner declined to address the particulars of its tax strategies.
Facebook, the world’s biggest social network, is preparing a structure similar to Google’s that will send earnings from Ireland to the Cayman Islands, according to the company’s filings in Ireland and the Caymans and to a person familiar with its plans. A spokesman for the Palo Alto, California-based company declined to comment.
Transfer Pricing
The tactics of Google and Facebook depend on “transfer pricing,” paper transactions among corporate subsidiaries that allow for allocating income to tax havens while attributing expenses to higher-tax countries. Such income shifting costs the U.S. government as much as $60 billion in annual revenue, according to Kimberly A. Clausing, an economics professor at Reed College in Portland, Oregon.
U.S. Representative Dave Camp of Michigan, the ranking Republican on the House Ways and Means Committee, and other politicians say the 35 percent U.S. statutory rate is too high relative to foreign countries. International income-shifting, which helped cut Google’s overall effective tax rate to 22.2 percent last year, shows one way that loopholes undermine that top U.S. rate.
Two thousand U.S. companies paid a median effective cash rate of 28.3 percent in federal, state and foreign income taxes in a 2005 study by academics at the University of Michigan and the University of North Carolina. The combined national-local statutory rate is 34.4 percent in France, 30.2 percent in Germany and 39.5 percent in Japan, according to the Paris-based Organization for Economic Cooperation and Development.
The Double Irish
As a strategy for limiting taxes, the Double Irish method is “very common at the moment, particularly with companies with intellectual property,” said Richard Murphy, director of U.K.- based Tax Research LLP. Murphy, who has worked on similar transactions, estimates that hundreds of multinationals use some version of the method.
The high corporate tax rate in the U.S. motivates companies to move activities and related income to lower-tax countries, said Irving H. Plotkin, a senior managing director at PricewaterhouseCoopers LLP’s national tax practice in Boston. He delivered a presentation in Washington, D.C. this year titled “Transfer Pricing is Not a Four Letter Word.”
“A company’s obligation to its shareholders is to try to minimize its taxes and all costs, but to do so legally,” Plotkin said in an interview.
Boosting Earnings
Google’s transfer pricing contributed to international tax benefits that boosted its earnings by 26 percent last year, company filings show. Based on a rough analysis, if the company paid taxes at the 35 percent rate on all its earnings, its share price might be reduced by about $100, said Clayton Moran, an analyst at Benchmark Co. in Boca Raton, Florida. He recommends buying Google stock, which closed yesterday at $607.98.
The company, which tells employees “don’t be evil” in its code of conduct, has cut its effective tax rate abroad more than its peers in the technology sector: Apple Inc., the maker of the iPhone; Microsoft, the largest software company; International Business Machines Corp., the biggest computer-services provider; and Oracle Corp., the second-biggest software company. Those companies reported rates that ranged between 4.5 percent and 25.8 percent for 2007 through 2009.
Google is “flying a banner of doing no evil, and then they’re perpetrating evil under our noses,” said Abraham J. Briloff, a professor emeritus of accounting at Baruch College in New York who has examined Google’s tax disclosures.
“Who is it that paid for the underlying concept on which they built these billions of dollars of revenues?” Briloff said. “It was paid for by the United States citizenry.”
Taxpayer Funding
The U.S. National Science Foundation funded the mid-1990s research at Stanford University that helped lead to Google’s creation. Taxpayers also paid for a scholarship for the company’s cofounder, Sergey Brin, while he worked on that research. Google now has a stock market value of $194.2 billion.
Google’s annual reports from 2007 to 2009 ascribe a cumulative $3.1 billion tax savings to the “foreign rate differential.” Such entries typically describe how much tax U.S. companies save from profits earned overseas.
In February, the Obama administration proposed measures to curb shifting profits offshore, part of a package intended to raise $12 billion a year over the coming decade. While the key proposals largely haven’t advanced in Congress, the IRS said in April it would devote additional agents and lawyers to focus on five large transfer pricing arrangements.
Arm’s Length
Income shifting commonly begins when companies like Google sell or license the foreign rights to intellectual property developed in the U.S. to a subsidiary in a low-tax country. That means foreign profits based on the technology get attributed to the offshore unit, not the parent. Under U.S. tax rules, subsidiaries must pay “arm’s length” prices for the rights -- or the amount an unrelated company would.
Because the payments contribute to taxable income, the parent company has an incentive to set them as low as possible. Cutting the foreign subsidiary’s expenses effectively shifts profits overseas.
After three years of negotiations, Google received approval from the IRS in 2006 for its transfer pricing arrangement, according to filings with the Securities and Exchange Commission.
The IRS gave its consent in a secret pact known as an advanced pricing agreement. Google wouldn’t discuss the price set under the arrangement, which licensed the rights to its search and advertising technology and other intangible property for Europe, the Middle East and Africa to a unit called Google Ireland Holdings, according to a person familiar with the matter.
Dublin Office
That licensee in turn owns Google Ireland Limited, which employs almost 2,000 people in a silvery glass office building in central Dublin, a block from the city’s Grand Canal. The Dublin subsidiary sells advertising globally and was credited by Google with 88 percent of its $12.5 billion in non-U.S. sales in 2009.
Allocating the revenue to Ireland helps Google avoid income taxes in the U.S., where most of its technology was developed. The arrangement also reduces the company’s liabilities in relatively high-tax European countries where many of its customers are located.
The profits don’t stay with the Dublin subsidiary, which reported pretax income of less than 1 percent of sales in 2008, according to Irish records. That’s largely because it paid $5.4 billion in royalties to Google Ireland Holdings, which has its “effective centre of management” in Bermuda, according to company filings.
Law Firm Directors
This Bermuda-managed entity is owned by a pair of Google subsidiaries that list as their directors two attorneys and a manager at Conyers Dill & Pearman, a Hamilton, Bermuda law firm.
Tax planners call such an arrangement a Double Irish because it relies on two Irish companies. One pays royalties to use intellectual property, generating expenses that reduce Irish taxable income. The second collects the royalties in a tax haven like Bermuda, avoiding Irish taxes.
To steer clear of an Irish withholding tax, payments from Google’s Dublin unit don’t go directly to Bermuda. A brief detour to the Netherlands avoids that liability, because Irish tax law exempts certain royalties to companies in other EU- member nations. The fees first go to a Dutch unit, Google Netherlands Holdings B.V., which pays out about 99.8 percent of what it collects to the Bermuda entity, company filings show. The Amsterdam-based subsidiary lists no employees.
The Dutch Sandwich
Inserting the Netherlands stopover between two other units gives rise to the “Dutch Sandwich” nickname.
“The sandwich leaves no tax behind to taste,” said Murphy of Tax Research LLP.
Microsoft, based in Redmond, Washington, has also used a Double Irish structure, according to company filings overseas. Forest Laboratories Inc., maker of the antidepressant Lexapro, does as well, Bloomberg News reported in May. The New York-based drug manufacturer claims that most of its profits are earned overseas even though its sales are almost entirely in the U.S. Forest later disclosed that its transfer pricing was being audited by the IRS.
Since the 1960s, Ireland has pursued a strategy of offering tax incentives to attract multinationals. A lesser-appreciated aspect of Ireland’s appeal is that it allows companies to shift income out of the country with minimal tax consequences, said Jim Stewart, a senior lecturer in finance at Trinity College’s school of business in Dublin.
Getting Profits Out
“You accumulate profits within Ireland, but then you get them out of the country relatively easily,” Stewart said. “And you do it by using Bermuda.”
Eoin Dorgan, a spokesman for the Irish Department of Finance, declined to comment on Google’s strategies specifically. “Ireland always seeks to ensure that the profits charged in Ireland fully reflect the functions, assets and risks located here by multinational groups,” he said.
Once Google’s non-U.S. profits hit Bermuda, they become difficult to track. The subsidiary managed there changed its legal form of organization in 2006 to become a so-called unlimited liability company. Under Irish rules, that means it’s not required to disclose such financial information as income statements or balance sheets.
“Sticking an unlimited company in the group structure has become more common in Ireland, largely to prevent disclosure,” Stewart said.
Deferred Indefinitely
Technically, multinationals that shift profits overseas are deferring U.S. income taxes, not avoiding them permanently. The deferral lasts until companies decide to bring the earnings back to the U.S. In practice, they rarely repatriate significant portions, thus avoiding the taxes indefinitely, said Michelle Hanlon, an accounting professor at the Massachusetts Institute of Technology.
U.S. policy makers, meanwhile, have taken halting steps to address concerns about transfer pricing. In 2009, the Treasury Department proposed levying taxes on certain payments between U.S. companies’ foreign subsidiaries.
Treasury officials, who estimated the policy change would raise $86.5 billion in new revenue over the next decade, dropped it after Congress and Treasury were lobbied by companies, including manufacturing and media conglomerate General Electric Co., health-product maker Johnson & Johnson and coffee giant Starbucks Corp., according to federal disclosures compiled by the non-profit Center for Responsive Politics.
Administration Concerned
While the administration “remains concerned” about potential abuses, officials decided “to defer consideration of how to reform those rules until they can be studied more broadly,” said Sandra Salstrom, a Treasury spokeswoman. The White House still proposes to tax excessive profits of offshore subsidiaries as a curb on income shifting, she said.
The rules for transfer pricing should be replaced with a system that allocates profits among countries the way most U.S. states with a corporate income tax do -- based on such aspects as sales or number of employees in each jurisdiction, said Reuven S. Avi-Yonah, director of the international tax program at the University of Michigan Law School.
“The system is broken and I think it needs to be scrapped,” said Avi-Yonah, also a special counsel at law firm Steptoe & Johnson LLP in Washington D.C. “Companies are getting away with murder.” (source)
PRINCETON, NJ -- Unemployment, as measured by Gallup without seasonal adjustment, is at 10.0% in mid-October -- essentially the same as the 10.1% at the end of September but up sharply from 9.4% in mid-September and 9.3% at the end of August. This mid-month measurement confirms the late September surge in joblessness that should be reflected in the government's Nov. 5 unemployment report.
Certain groups continue to fare worse than the national average. For example, 14.2% of Americans aged 18 to 29 and 13.8% of those with no college education were unemployed in mid-October.
Fewer Working Part Time Looking for Full-Time Employment
The percentage of part-time workers who want full-time work is at 8.6% of the workforce, not much different from the 8.7% at the end of September, but well below the 9.2% reading in the middle of last month.
Underemployment Is Declining
The decline in part-time workers wanting full-time work has led to a situation in which underemployment is declining even as unemployment is increasing. The 18.6% mid-October underemployment figure (the sum of the 10.0% unemployed and the 8.6% employed part time but wanting full-time work) is down slightly from 18.8% at the end of September and is the same as the reading in the middle of last month.
U.S. Unemployment Rate Should Increase on Nov. 5
Gallup's unemployment measure showed a sharp increase to double digits at the end of September, before seasonal adjustment. The mid-October measurement suggests the resulting double-digit unemployment rate has been maintained during the first half of the current month. In turn, this suggests that the government will report an increase in the U.S. unemployment rate for October.
In this regard, Gallup modeling suggests the government's unemployment rate report for October will be in the 9.7% to 9.9% range when it is released Nov. 5. The government's last report showed the U.S. unemployment rate at 9.6% in September on a seasonally adjusted basis, as Gallup anticipated. In addition to seasonal adjustments, the official unemployment rate is likely to be held down by a continued exodus of people from the workforce. It is easy for potential workers to become discouraged when the unemployment rate is expected to remain above 9% through the end of 2011.
In this regard, the lack of increase in Gallup's underemployment measure when the unemployment rate is increasing would normally be a good sign for jobs and the economy. However, the current decline in the percentage of workers employed part time but looking for full-time work is not necessarily positive. It might be that some workers who are employed part time are losing their jobs -- becoming unemployed or dropping out of the workforce -- and are not being replaced, while new part-time workers are not being hired.
Regardless, Gallup's employment data continue to reveal little good news for consumer spending, retailers, or the unemployed as the holidays approach.
Gallup.com reports results from these indexes in daily, weekly, and monthly averages and in Gallup.com stories. Complete trend data are always available to view and export in the following charts:
Survey Methods Gallup classifies American workers as underemployed if they are either unemployed or working part time but wanting full-time work. The findings reflect more than 18,000 phone interviews with U.S. adults aged 18 and older in the workforce, collected over a 30-day period. Gallup's results are not seasonally adjusted and tend to be a precursor of government reports by approximately two weeks.
Results are based on telephone interviews conducted as part of Gallup Daily tracking Sept.16-Oct. 15, 2010, with a random sample of 18,218 adults, aged 18 and older, living in all 50 U.S. states and the District of Columbia, selected using random-digit-dial sampling.
For results based on the total sample of national adults, one can say with 95% confidence that the maximum margin of sampling error is ±1 percentage point.
Interviews are conducted with respondents on landline telephones and cellular phones, with interviews conducted in Spanish for respondents who are primarily Spanish-speaking. Each daily sample includes a minimum quota of 150 cell phone respondents and 850 landline respondents, with additional minimum quotas among landline respondents for gender within region. Landline respondents are chosen at random within each household on the basis of which member had the most recent birthday.
Samples are weighted by gender, age, race, Hispanic ethnicity, education, region, adults in the household, cell phone-only status, cell phone-mostly status, and phone lines. Demographic weighting targets are based on the March 2009 Current Population Survey figures for the aged 18 and older non-institutionalized population living in U.S. telephone households. All reported margins of sampling error include the computed design effects for weighting and sample design.
In addition to sampling error, question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of public opinion polls.
For more details on Gallup's polling methodology, visit www.gallup.com. (Source)
(Reuters) - The Obama administration backed away on Friday from a showdown with Beijing over the value of China's currency that would have caused new frictions between the world's only superpower and its largest creditor.
The Treasury Department delayed a much-anticipated decision on whether to label China as a currency manipulator until after the U.S. congressional elections on November 2 and a Group of 20 leaders summit in South Korea on November 11.
Washington and the European Union accuse China -- set to become the world's second-largest economy after the United States this year -- of keeping the yuan artificially low to boost exports, undermining jobs and competitiveness in Western economies.
Fears are growing of a global "currency war" as major trading powers, such as the United States and Japan, seek to weaken their currencies while emerging economies such as Brazil and South Korea raise or threaten tougher controls to limit capital flows.
The decision to delay the Treasury's semi-annual currency report reflects a desire by the Obama administration to pursue diplomacy to resolve the dispute with China rather than provoke a confrontation that could potentially lead to a trade war and affect long-term interest rates.
In July, China held $847 billion in U.S. government debt.
In its statement, the Treasury seemed to be encouraged by China's recent action to allow its currency to rise by roughly 3 percent against the dollar since June 19.
"Since September 2, 2010, the pace of appreciation has accelerated to a rate of more than 1 percent per month," it said. "If sustained over time, this would help correct what the IMF (International Monetary Fund) has concluded is a significantly undervalued currency."
China argues that moving too quickly with currency reforms could devastate its export-driven economy.
It blames the United States for sluggish growth, high debts and an easy monetary policy that has flooded the market with newly printed dollars, weakening the U.S. currency and putting pressure on emerging countries to keep their currencies low.
But Washington argues that Beijing could relieve that pressure by letting the yuan strengthen.
"YUAN SHOULD NOT BE A SCAPEGOAT"
The Treasury said the G20 gathering in Seoul would give world leaders an opportunity to look at how best to rebalance the global economy. This was not just the responsibility of China and the United States, it stressed.
In another important summit, leaders of the Asia Pacific Economic Cooperation forum will meet on November 13-14.
"The Treasury will delay the publication of the report on international economic and exchange rate policies in order to take advantage of the opportunity provided by these important meetings," it said.
China left little doubt about the rancor that would ensue if it is branded as a currency manipulator -- a largely symbolic move by the United States that would mandate more consultations with Beijing but no immediate penalties.
"The Chinese yuan should not be a scapegoat for the United States' domestic economic problems," Commerce Ministry spokesman Yao Jian said on Friday.
The decision to delay the Treasury report appears to have been taken at the last minute. Industry sources had been primed to expect it by 1 p.m. EDT (1700 GMT) on Friday.
The Obama administration, seeming to anticipate criticism from U.S. lawmakers who are pushing for stronger action against China, brought forward an announcement of an investigation into whether Chinese support for its clean energy sector violates international trade rules.
But that was not enough to appease Democratic Senator Charles Schumer, who has sponsored legislation to get tough with China over its currency practices.
"The Obama administration is treating the symptom but not the disease," he said. "An investigation into China's illegal subsidies for its clean energy industry is overdue but it's no substitute for dealing with China's currency manipulation."
CONGRESS EYES DUTIES ON CHINA
The Treasury's decision may raise pressure on the Senate to approve a bill passed by the House of Representatives that would allow the United States to slap duties on imports from countries with fundamentally undervalued currencies.
"Democrats and Republicans alike in Congress are prepared to move legislation confronting China's currency manipulation this year," Schumer said. "We hope to have the administration's support but will go forward without it if necessary."
There had been speculation Obama might be tempted to label China as a currency manipulator for the first time in 16 years to look tough before the elections in which his Democrats risk big losses over discontent with his handling of the economy.
But there are concerns about angering China, whose support is needed on issues such as rebalancing the global economy, climate change and the nuclear programs of Iran and North Korea.
In an article published on Friday, Chinese central bank governor Zhou Xiaochuan pledged a continuation of yuan reform but only on Beijing's gradual terms. (source)
In the month after Homeland Security officials started a review of Houston's immigration court docket, immigration judges dismissed more than 200 cases, an increase of more than 700 percent from the prior month, new data shows.
The number of dismissals in Houston courts reached 217 in August — up from just 27 in July, according to data from the Executive Office for Immigration Review, which administers the nation's immigration court system.
In September, judges dismissed 174 pending cases — the vast majority involving immigrants who already were out on bond and had cases pending on Houston's crowded downtown court docket, where hearings are now being scheduled into 2012.
Roughly 45 percent of the 350 cases decided in that court in September resulted in dismissals, the records show.
The EOIR data offer the first glimpse into Homeland Security's largely secretive review of pending cases on the local immigration court docket.
In early August, federal attorneys in Houston started filing unsolicited motions to dismiss cases involving suspected illegal immigrants who have lived in the country for years without committing serious crimes.
News of the dismissals, first reported in the Houston Chronicle in late August, caused a national controversy amid allegations that the Obama administration was implementing a kind of "backdoor amnesty" — a charge officials strongly denied.
In recent weeks, some immigration attorneys reported the dismissals have slowed somewhat, while others reported they now have to ask ICE trial attorneys to exercise prosecutorial discretion in order to have their cases dismissed. Others, however, said they are still being approached by government attorneys seeking to file joint motions for case dismissal.
"They're still doing it," said immigration attorney Steve Villarreal. "They're just doing it quietly."
Immigration and Customs Enforcement officials declined this week to discuss specifics of the docket reviews and dismissals, which are also going on in several other cities, including Dallas and Miami.
In response to the Houston EOIR data, ICE spokeswoman Gillian Brigham noted that immigration judges can terminate cases for other than prosecutorial discretion, such as when ICE does not meet its burden of proof. The Houston immigration courts averaged about 38 case terminations each month in the 10 months prior to the DHS review.
Broad set of criteria
ICE has tried to downplay the docket reviews, suggesting in some media accounts that they were limited to cases involving illegal immigrants with pending petitions filed by U.S. citizen relatives.
However, EOIR's liaison with the American Immigration Lawyers Association, Raed Gonzalez, said he was briefed on the guidelines in August directly by DHS' deputy chief counsel in Houston and described a broader set of internal criteria.
Government attorneys in Houston were instructed to exercise prosecutorial discretion on a case-by-case basis for illegal immigrants who have lived in the U.S. for at least two years and have no serious criminal history, Gonzalez said.
To qualify for dismissal, defendants also must have no felony record or any misdemeanor convictions involving DWI, sex crimes or domestic violence, he said.
Several dismissed cases examined by the Chronicle involved defendants without U.S. citizen relatives but with arguments for dismissal on humanitarian grounds, such as illegal immigrants brought to the U.S. as children who have stayed out of trouble and are enrolled in college.
Supporters of the review called it a necessary, common-sense step to reduce the system's staggering backlog, which hit an all-time high this year. In June, the number of pending immigration cases nationally reached 247,922, including 7,444 in Houston.
By moving to dismiss cases for people who have stayed out of trouble, the agency will be better able to use its limited resources to more rapidly deport those with serious criminal records, supporters said.
"It makes all of the sense in the world," John Nechman, a Houston immigration attorney, said of the review, which has led the dismissals of cases for several of his clients.
Dismissed, but still illegal
The dismissals essentially mean that officials are no longer actively trying to remove defendants through the immigration court system, though they can refile such charges at a later date. The dismissals do not convey any kind of legal status, so recipients remain illegal immigrants and cannot work legally in the U.S.
But critics still charge that the dismissals show the government is not enforcing the law.
"When you have this kind of mass dismissal, it sends a very clear message to illegal immigrants, and to society at large, that the government is not serious about enforcing the laws," said Mark Krikorian, executive director of the Center for Immigration Studies, an organization that advocates for stricter border controls.
"This type of action muddles the message so both the public at large as well as illegal immigrants don't know what to think." (source)
Toledo Public Schools teacher Amanda VanNess, second from right, is on hand as President Obama signs the stimulus bill.
TPS teacher who watched Obama sign bill is laid off
Board not using $7.6M share to rehire workers
As Toledo Public Schools teacher Amanda VanNess stood in the Oval Office and watched President Obama sign an education stimulus bill, she already knew she'd lost her teaching job back home to budget cuts and low seniority.
The $26 billion stimulus bill, designed to save 160,000 teacher and other government jobs across the nation, couldn't save her position at Pickett Elementary.
In fact, Ms. VanNess has been laid off twice from TPS this year.
TPS hasn't spent a dollar of the $7.6 million in teacher rehire money it received from the Aug. 10 bill, opting instead to save it for next school year to rehire or retain a myriad school employees - probably not teachers.
The legislation allows the one-time money to be spent that way over the two school years.
The hard-fought federal legislation was sold as a way for school districts to call back laid-off teachers or to save others from losing jobs. But as of Nov. 15, Ms. VanNess will be without a teaching assignment, according to TPS' human resources department.
Ms. VanNess, 25, couldn't be reached for this story, but the irony of her situation was featured in the Wall Street Journal last week and on television and talk radio.
The stimulus measure gave governors $10 billion in education aid to hire and retain certain local school district workers and about $16 billion to help cover increased costs for Medicaid, the state-level health-care program for the nation's poor. More people access Medicaid in hard economic times.
The bill was stalled in Congress, and House Speaker Nancy Pelosi (D., Calif.) called members back from a break in August to push it through. The legislation has become a powerful symbol in the rhetorical battle over the wisdom of stimulus spending and debate over government's proper size.
And Ms. VanNess' job loss has become political foil for the anti-Obama right as midterm elections approach.
To set up the bill signing in the Oval Office, the American Federation of Teachers contacted local union President Fran Lawrence and asked if she knew of a Toledo teacher who could come to Washington to stand with the President.
Ms. Lawrence thought of Ms. VanNess because she had been notified about her job loss. Ms. Lawrence said she doesn't feel the situation is ironic because Ms. VanNess was already laid off when the stimulus bill was signed.
The young teacher had received a letter in early July with an effective layoff date of Aug. 25.
Ms. VanNess traveled to Washington Aug. 10, but her plane was late and she missed attending a morning press conference when the President discussed the bill, Ms. Lawrence said.
But Ms. VanNess arrived in time to watch congressional debate about the bill, which passed on a party-line vote. Later, as she and the other visiting teachers with their guides approached the Oval Office, the door opened unexpectedly. The President emerged, reached out his hand, and said, "You must be Amanda, you were MIA this morning," said Ms. Lawrence, recounting what Ms. VanNess told her.
Ms. VanNess, the other teachers, and Education Secretary Arne Duncan stood behind the President as he signed the bill.
Ms. VanNess was officially laid off the day before school started, Aug. 25, about two weeks after her Washington trip.
She fell prey to budget cuts designed to close a $39 million deficit last school year. About 400 employees, including 237 teachers, received pink slips.
Student services were cut and bus service curtailed affecting about 5,000 students, and elimination of middle school and freshman sports.
About 24,350 students are enrolled in TPS.
Ms. VanNess was quickly reassigned as a second-grade permanent substitute at Reynolds Elementary School because a position opened up unexpectedly. But Oct. 1, she was notified again. With falling enrollment, 14 more teachers were let go, effective Nov. 15. According to the union contract, the district must continue to employ the teachers for 45 days after they are notified.
"It's terrible," Ms. Lawrence said. "I wish they would have used some of that money not to lay off those 14 teachers because that disrupted those classrooms."
TPS released its head count for this school year in mid-September, down more than 5 percent. Many parents pulled their children because of cuts to services.
TPS Superintendent Jerome Pecko said the district expects a $44 million deficit next school year. He said he's scoured the wording of the federal legislation for permissible uses beyond rehiring teachers.
As enrollment falls, the district doesn't need as many teachers, and Mr. Pecko said he must balance all needs for students. He said the district might use the money to hire its own crossing guards, instead of using an outside company, and to hire more bus drivers to restore service to where it was before last year's budget cuts. (source)
Just your average Zen Baptist, admitting upfront to being a (mostly) reconstructed hillbilly.
If you can't understand the attitude or perspective I come from, it's safe to say that we're from different realities.
If you can't start off the conversation with a respectful question about how/why I came to the particular perspective I did, and then find some way that you can relate to it, then I don't have any time to entertain your issues.
Give respect, get respect.
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Joe Shields - Brooklyn Bridge
Website - http://twoshacks.com.
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