Wartime Profiteering and Opportunism Update

Since the Citizen Coalition Statement of November 5th, the shameful wartime profiteering and opportunism has continued to include:

1) "Economic Stimulus"

· On December 20, the House passed (224-193, largely along party lines) a "compromise" version of the bill that passed in the House on October 24 after the first bill provoked heated debate over its huge tax breaks to corporations and failure to provide extensions of unemployment insurance.

· The Economic Stimulus bill is now considered dead, after Senate majority leader announced that the version passed by the House on December 20 failed to achieve adequate compromise.

· The differences in the two House bills are only slight. Over the first three years, the current bill would:
* cost $202 billion, only 5% less than the original $212 billion;
* allocate 63% of the tax breaks to corporations, 6% less than the original;
* grant a 5 year corporate tax shelter for companies that shift interest income offshore, as opposed to a permanent shelter;
* partially repeal the corporate Alternate Minimum Tax and give credit for taxes paid only in year 2001, rather than crediting taxes paid during all 15 years of the AMT [ctj.org]

· The new bill continues to:
* exclude extensions of unemployment insurance benefits for low-wage and part-time workers beyond the end of this year [cbpp.org]
* include only an individual tax credit system for provision of health insurance, rather than supporting the employer-based system, leaving low income workers without access, especially since the plan requires larger state budget cuts, reducing other assistance [cbpp.org]
* accelerate to 2002 the reductions in the 27.5% income tax rate that are now scheduled for 2004 and 2006 [cbpp.org]

For more information see Citizens for Tax Justice; ACORN ; the AFL-CIO; Campaign for Americas Future; Center for Budget and Policy Priorities; Friends of the Earth; Common Cause; and Center for Responsive politics

2) Pharmaceutical Gouging and Lobbying on Bioterrorism
Profit-making hospitals are trying to qualify for federal disaster assistance, available only to nonprofit groups. The Federation of American Hospitals wants to include "private for-profit medical facilities" in "private non-profit facility." Legislation drafted by the pharmaceutical and biotech industries would limit drug companies' liability in injury claims, requiring the government to "indemnify and defend" any contracted group producing drugs or vaccines to combat terrorism. Industry coalitions are asking for exemptions from antitrust laws so they could collaborate in testing, manufacturing, and sales. [New York Times, 12/11/01]
For more information see: Consumer Project on Technology; Public Campaign; Public Citizen Health Research Group

3) Bailouts for Billionaires Airlines got $15,000,000,000 in bailouts and loans and yet they say they can't comply with the January deadline for screening checked luggage. Industry lobbyists are pushing to weaken and replace hand check requirements with a computerized profiling system that they claim identifies potentially threatening passengers. [Washington Post 12/19/01]
For more information see: Public Campaign ; Public Citizen ;

4) "Fast Track" On December 6, the House passed Fast Track by one vote (215-214), reducing the chances of future bipartisan consensus. Fast Track transfers constitutionally-mandated powers of Congress to the Executive branch, allowing the president to negotiate trade agreements independently.
For more information see Public Citizen's Global Trade Watch; Friends of the Earth; and the Economic and Policy Information Network

5) Handouts for the Insurance Industry Insurance companies are able, with more than $300 billion in capital reserves, to handle the claims from September 11th, but still they say they will stop writing policies covering terrorism starting in January because they can't predict the risk of attacks. [Public Campaign, 12/18/01] Before the end of the session December 20, Congress did not pass terrorism insurance legislation, which would have protected the industry by covering 80-90% of their total terrorism costs if those costs exceed $1 billion. The Senate's abandonment of the bill leaves in question what will happen when many reinsurance contracts run out on January 1st. CFA has warned that without immediate state regulation, this situation could easily result in skyrocketing rates and widespread inaccessibility for small business and individuals who purchase personal lines. [Consumer Federation of America, 12/12/01, 12/18/01, 12/20/01, Washington Post 12/21/01]
For more information see: Consumer Federation of American, ACORN

6) Defense and Biological Weapons On December 13, after failed negotiation meetings between Russian officials and the Bush national security team, the Administration announced the US unilateral withdrawal from the Anti-Ballistic Missile Treaty. The Administration was unwilling to continue compliance with the three-decade-old pact unless Russia met US demands about allowances for missile testing. [Washington Post, 12/13/01] A huge handout to Boeing was slipped into the Defense Department appropriations bill that passed December 18, just prior to its committee consideration, without House or Senate public hearings on the deal. The legislation includes four VIP jets for members of Congress, at a cost of $80 million each. [Public Citizen, 12/19/01]
For more information see: Center for Defense Information; Union of Concerned Scientists; The Sunshine Project

7) Environment and Energy
The attempt to push through Arctic Refuge drilling legislation (passed in the House in August) was finally put on hold by Senate majority leader Daschle, but will appear as a top priority in the Senate in January. Daschle's new bill, while protecting more of the Arctic Refuge, contains increased subsidies for the polluting nuclear, coal and oil industries and is silent on several important measures that guarantee a smarter, cleaner energy future for America.
For more information see: Friends of the Earth; the Sierra Club; Biogems; The Nuclear Control Institute; Public Citizen; USPIRG; Greenpeace

8) USA PATRIOT Act and Erosion of Civil Liberties.

Further erosions have been authorized, such as secret military tribunals. Read Ralph Nader's statement on protecting freedom and civil liberties.

For more information see: American Civil Liberties Union; Electronic Privacy Information Center; OMB Watch; October 25, 2001 Statement of Senator Russell Feingold from the Senate Floor On The Anti- Terrorism Bill.

9) Restrictions on Information/Invasions of Privacy

· Attorney General Ashcroft authorized law enforcement to listen in on the confidential attorney-client communications of persons in federal custody, eavesdropping which will be authorized without court review and based solely on the Attorney General's determination that there exists "reasonable suspicion" that a conversation between a detainee and counsel "may" be used to further "acts of terrorism." [ACLU, 12/20/01] The American Bar Association has urged the Attorney General to rescind this order because it will "not advance law enforcement or national security" and it is a violation of constitutional safeguards. [Washington Post, 1/4/02]

· A pharmaceutical industry task force established to develop government responses to bioterrorism violates a federal law regarding opportunity for public participation in federal advisory committee meetings. A federal agency advisory committee must set up a charter describing the committee's objectives, activities, and estimated time period of activity, as well as announce and make open to the public all meetings, none of which has been done. [Public Citizen]

For more information see OMB Watch, Public Citizen; USPIRG; The Nation Electronic Privacy Information Center, ACLU