January, 13 2010, 10:37am EDT
In Wake of Latest Banker Bonus Outrage, Nation Needs an Immediate Federal Policy About-Face, Says IPS
WASHINGTON
Analysts
from the Institute for Policy Studies today called for a strong, swift,
and sustained federal response to the record bonus outlays that Wall
Street's top banks will shortly begin announcing.
"These billions in bank bonuses amount to money laundering on the
grandest scale ever," says IPS director John Cavanagh. "Hard-earned tax
dollars from average Americans have been transformed - via subsidies
and sweetheart deals from the Treasury and the Fed - into bonanzas for
the same speculators who shoved the economy into crisis in the first
place."
The Obama administration is reportedly considering a new tax on bank
earnings, but the plan is still undefined and would be unlikely to have
a significant effect on executive compensation levels.
"We need to get taxpayers their money back and take real steps to end
the pay gluttony that's made our economy a casino where only the
already rich can ever win," notes IPS Global Economy Project director
Sarah Anderson, who has analyzed executive pay trends for 16 years.
Lawmakers in Congress should work quickly to place on President Obama's desk legislation that would establish:
1. A financial speculation tax.
A modest tax on trades of stocks, bonds, options, and derivatives would
have little impact on trades that have a positive economic impact but
could reduce the volume of unproductive speculation that has been the
source of the greatest volatility - and profit-grabbing - in financial
markets. Such a tax, notes UK chief financial regulator Lord Adair
Turner, would reduce the pool of money available for executive bonuses.
A financial transactions tax could also generate significant revenue
for U.S. and global public goods.
2. An emergency 50 percent surtax on all individual income over $2 million. In
the current economy, all super incomes - not just banker bonuses -
represent windfall profits made possible by the sacrifices working
Americans have made to stabilize the nation's financial system.
3. A limit on the executive pay that all U.S. corporations and banks can deduct off their taxes. The
original bailout legislation limited the deductibility of executive
compensation at TARP recipient firms to no more than $500,000. That
step needs to be extended throughout the economy, as the Income Equity
Act now pending in Congress proposes.
European
nations have so far taken tougher action against the banker bonus
bonanza than the United States, notes Chuck Collins, the director of
the IPS Program on Inequality and the Common Good. But U.S. financial
executives would likely find ways to circumvent the various European
proposals - most notably a 50 percent tax, payable by banks, on big
bonus payouts and required deferrals of as much as 60 percent of bonus
outlays for three years.
"The deferrals give banks an incentive to shift dollars from bonus to
salary," notes Collins, "and the big banks are 'spreading the pain' of
the tax across their operations - and also threatening to tie up the
banker bonus tax in the courts."
"If the United States were to impose an emergency 50 percent surtax on
all income over $2 million," adds IPS associate fellow Sam Pizzigati,
"America's wealthiest would still be paying taxes at a lower overall
effective rate than they paid during the Eisenhower years."
Contacts:
Kristi Ceccarossi, Communications Associate, Kristi@ips-dc.org, (617) 983-4094.
Sarah Anderson
is the Director of the Global Economy Project at the Institute for
Policy Studies and a co-author of 16 IPS annual reports on executive
compensation. Contact: sarah@ips-dc.org, 202 234 9382 x 227.
Chuck Collins
is a senior scholar at the Institute for Policy Studies where he
directs the Program on Inequality and the Common Good. Contact: chuckcollins7@mac.com, 617 308 4433.
Sam Pizzigati is an Associate Fellow of the Institute for Policy Studies and author of the online newsletter Too Much. Contact: editor@toomuchonline.org, 301 933 2710.
John Cavanagh is IPS Director. Contact: jcavanagh@igc.org, 202 234 9382 x 224.
Institute for Policy Studies turns Ideas into Action for Peace, Justice and the Environment. We strengthen social movements with independent research, visionary thinking, and links to the grassroots, scholars and elected officials. I.F. Stone once called IPS "the think tank for the rest of us." Since 1963, we have empowered people to build healthy and democratic societies in communities, the US, and the world. Click here to learn more, or read the latest below.
LATEST NEWS
Watchdog Urges FEC to Investigate Trump Campaign Over Scheme for Legal Fees
"By not disclosing the vendors that actually provided legal services, the Trump-affiliated committees effectively blocked the public from knowing which attorneys and firms are being paid—and how much."
Apr 24, 2024
A campaign finance watchdog on Wednesday filed a Federal Election Commission complaint accusing former President Donald Trump's 2024 campaign, affiliated political groups, and an accounting firm of violating U.S. law in a scheme "seemingly designed to obscure the true recipients of a noteworthy portion of Trump's legal bills."
The Washington, D.C.-based Campaign Legal Center (CLC) said that "evidence appears to show an illegal arrangement between several Trump-affiliated committees and a compliance firm named Red Curve Solutions that is designed to obscure the identities of those providing legal services and how much they are being paid."
"Voters have a right to know how the presidential campaigns and other committees supporting presidential candidates spend their money."
CLC alleges that the Trump campaign, Trump's political action committee (PAC) Save America, and three affiliated organizations "violated federal reporting requirements based on a scheme in which the committees reportedly paid over $7.2 million—described as 'reimbursement for legal' costs or expenses"—to Red Curve.
The watchdog also said that Red Curve appears to be "making or facilitating illegal contributions that violate either federal contribution limits or the prohibition on corporate contributions."
According to CLC:
Red Curve is a domestic limited liability company that offers compliance and FEC reporting services but does not appear to offer any legal services. It is managed by Bradley Crate, who also serves as the treasurer for each of the five Trump-affiliated committees concerned in this complaint, as well as over 200 other federal committees.
According to filings with the FEC, Red Curve appears to have been fronting legal costs for Trump since at least December 2022, with Trump-affiliated committees repaying the company later. This arrangement appears to violate FEC rules that require campaigns to disclose not only the entity being reimbursed (here, Red Curve) but also the underlying vendor. By not disclosing the vendors that actually provided legal services, the Trump-affiliated committees effectively blocked the public from knowing which attorneys and firms are being paid—and how much they are being paid—through this arrangement.
"Voters have a right to know how the presidential campaigns and other committees supporting presidential candidates spend their money," CLC senior director of campaign finance Erin Chlopak said in a statement. "When campaigns and committees obscure that information from the public, not only do they make it difficult to determine if the law has been violated, but they deny voters the ability to make an informed choice when casting a ballot."
"The steps taken by the Trump campaign, its affiliated committees, and Red Curve Solutions concealed information about how campaign funds were used to pay former President Trump's legal expenditures, including the amounts and ultimate recipients of these expenditures—and the FEC must investigate immediately," Chlopak added.
Trump—who is the presumptive 2024 GOP presidential nominee—faces 91 federal and state felony charges related to his role in the January 6 insurrection and his organization's business practices. He is currently on trial in New York for allegedly falsifying business records related to hush money payments to cover up sex scandals during the 2016 election cycle. The twice-impeached former president has been open about his use of campaign donations to pay his legal costs.
The new CLC filing comes a day after the watchdog filed separate FEC complaints urging investigations into a pair of Trump-affiliated "scam PACs," which "pretend to fundraise for major candidates or issues while secretly diverting almost all of their donors' money back into fundraising or the fraudsters' own pockets."
Keep ReadingShow Less
'One Step Closer': Arizona House Votes to Repeal 1864 Abortion Ban
"With a total ban still set to take effect June 8, the Arizona Abortion Access Act is needed now more than ever," one state campaigner said of a November ballot measure.
Apr 24, 2024
Three Republicans in the Arizona House of Representatives on Wednesday joined with Democrats to advance legislation that would repeal an 1864 ban on abortion—a development rights advocates welcomed while stressing that the fight is far from over.
The 32-28 vote on House Bill 2677—with GOP Reps. Tim Dunn (25), Matt Gress (4), and Justin Wilmeth (2) voting in favor—was the third attempt in as many weeks to pass repeal legislation since the Arizona Supreme Court upheld the ban.
"The state Senate could vote on the repeal as early as next Wednesday, after the bill comes on the floor for a 'third reading,' as is required under chamber rules," according toNBC News. Democratic Gov. Katie Hobbs on Wednesday toldThe Washington Post that "I am hopeful the Senate does the right thing and sends it to my desk so I can sign it."
Applauding the House passage of H.B. 2677, Planned Parenthood Advocates of Arizona president and CEO Angela Florez said that "today, Arizona is one step closer to repealing the state's Civil War-era total abortion ban. While the repeal still must pass the Senate, this is a major win for reproductive freedom."
"We must celebrate today's vote in support of abortion rights and harness our enthusiasm to spread the word and urge lawmakers in the Senate to support this necessary repeal bill," she continued. "Despite this step forward, Arizonans cannot stop fighting."
Florez noted that "even with the repeal of the Civil War-era ban, the state will still have a ban on abortion after 15 weeks of pregnancy that denies people access to critical care. And lawmakers continue to attack Arizonans' ability to access reproductive healthcare. Our right to control our bodies and lives is hanging on by a thread."
"Thankfully, voters will have the opportunity to take back control if the Arizona Abortion Access Act is on the ballot this November," she added. "Abortion bans are out-of-step with the will of Arizonans and will force pregnant people to leave their communities for essential healthcare. Planned Parenthood Advocates of Arizona will continue fighting to ensure everyone has the right to make decisions about their health and futures."
The Arizona Abortion Access Act is a proposed state constitutional amendment that would prevent many limits on abortions before fetal viability and safeguard access to care after viability to protect the life or physical or mental health of the patient.
The coalition supporting the amendment, Arizona for Abortion Access, highlighted on social media that the House-approved bill "did not include the emergency clause required to stop the 1864 ban from taking effect on June 8," meaning H.B. 2677 wouldn't apply until 90 days after the end of the legislative session.
Coalition campaign manager Cheryl Bruce said that "with a total ban still set to take effect June 8, the Arizona Abortion Access Act is needed now more than ever. We remain committed to taking these decisions out of the hands of extremist politicians."
Arizona is one of multiple states where rights advocates are promoting abortion rights ballot measures this cycle. Reproductive freedom is also dominating political races at all levels, including the presidential contest. Democratic President Joe Biden is set to face former Republican President Donald Trump in November.
"Donald Trump is responsible for Arizona's abortion ban. Women in the state are still living under a ban with no exceptions for rape or incest and have been stripped of the freedom to make their own healthcare decisions," said Julie Chávez Rodriguez, Biden and Vice President Kamala Harris' reelection campaign manager.
While the presumptive GOP nominee has tried to distance himself from the Arizona Supreme Court's reinstatement of a 160-year-old abortion ban, he has also campaigned on his three appointees to the U.S. Supreme Court who helped reverse Roe v. Wade.
"Trump brags that he is 'proudly' the person responsible for these bans and if he retakes power, the chaos and cruelty he has created will only get worse in all 50 states," Chávez Rodriguez said. "President Biden and Vice President Harris are the only candidates who will stop him."
Keep ReadingShow Less
US Dodges Growing Calls for Probe of Mass Graves at Gaza Hospitals
"Somehow I don't think the U.S. State Department would defer to Russia as a credible source to investigate itself if a mass grave were discovered in Ukrainian territory it had occupied," said one legal expert.
Apr 24, 2024
While continuing to give Israel billions of dollars in support to wage war on the Gaza Strip, the Biden administration this week has declined to join the growing global demands for an international probe into mass graves discovered at hospitals in the besieged Palestinian enclave.
Two journalists on Tuesday questioned Vedant Patel, a spokesperson for the U.S. State Department, about the administration's response to the hundreds of bodies found at Gaza City's al-Shifa Hospital and Nasser Hospital in Khan Younis as well as United Nations High Commissioner for Human Rights Volker Türk's call for an independent investigation.
"Would you support such an independent investigation?" Said Arikat asked during a press briefing. Patel responded, "Right now, Said, we are asking for more information... That is squarely where we are leaving the conversation."
Patel added that "I don't have any details to match, confirm, or offer as it relates to that. We're aware of those reports, and we have asked the government of Israel for additional clarity and information. And that's where I'm at."
When Said asked a follow-up about potential U.S. support for a probe, Patel reiterated that the administration is awaiting information from the Israeli government.
Later, Niall Stanage asked Patel to explain U.S. "resistance" to supporting a probe, the spokesperson insisted that "it's not about resistance to this particular situation, it is me not wanting to speak in detail about something which Said posed as a hypothetical question when, from the United States' perspective, I don't have any additional information on this aside from the public reporting."
After Patel again stressed that the administration has asked Israel for more information, Stanage inquired, "And do you believe the government of Israel is a credible source in enlightening you?"
The spokesperson interrupted Stanage to say, "We do."
While supporting the six-month Israeli assault on Gaza that the International Court of Justice has found to be plausibly genocidal, the Biden administration is also arming Ukrainians' resistance to a Russian invasion. Brian Finucane, a senior adviser for the Crisis Group's U.S. program and a former legal adviser at the State Department, pointed to the latter.
"Somehow I don't think the U.S. State Department would defer to Russia as a credible source to investigate itself if a mass grave were discovered in Ukrainian territory it had occupied," Finucane said on social media in response to Stanage's questioning.
Meanwhile, European Union spokesperson Peter Stano made clear Tuesday that the E.U. supports an independent probe.
"This is something that forces us to call for an independent investigation of all the suspicions and all the circumstances, because indeed it creates the impression that there might have been violations of international human rights committed," Stano said. "That's why it's important to have independent investigation and to ensure accountability."
Human rights groups around the world joined the call for an independent investigation on Wednesday, as the official death toll in Gaza hit 34,262 with 77,229 people injured and thousands more missing and presumed dead beneath the rubble.
In an Arabic statement translated by Al Jazeera, the Euro-Mediterranean Human Rights Monitor said that the number of bodies found in the mass graves is "alarming, and requires urgent international action, including the formation of an independent international investigation committee."
The group added that some of those killed were subjected to "premeditated murder as well as arbitrary and extrajudicial executions while they were detained and handcuffed."
Amnesty International senior director of research, advocacy, policy, and campaigns Erika Guevara Rosas said in a statement that "the harrowing discovery of these mass graves underscores the urgency of ensuring immediate access for human rights investigators, including forensic experts, to the occupied Gaza Strip to ensure that evidence is preserved and to carry out independent and transparent investigations with the aim of guaranteeing accountability for any violations of international law."
"Lack of access for human rights investigators to Gaza has hampered effective investigations into the full scale of the human rights violations and crimes under international law committed over the past six months, allowing for the documentation of just a tiny fraction of these abuses," she noted. "Without proper investigations to determine how these deaths took place or what violations may have been committed, we may never find out the truth of the horrors behind these mass graves."
Guevara Rosas continued:
Mass grave sites are potential crime scenes offering vital and time-sensitive forensic evidence; they must be protected until professional forensic experts with the necessary skills and resources can safely carry out adequate exhumations and accurate identification of remains.
The absence of forensic experts and the decimation of Gaza's medical sector as a result of the war and Israel's cruel blockade, along with the lack of availability of the necessary resources for the identification of bodies such as DNA testing, are huge obstacles to the identifications of remains. This denies those killed the opportunity to have a dignified burial and deprives families with relatives missing or forcibly disappeared the right to know and to justice—leaving them in a limbo of uncertainty and anguish.
Noting that the International Court of Justice directed Israel to preserve evidence in its initial genocide case order, Guevara Rosas said that "amid a total vacuum of accountability and mounting evidence of war crimes in Gaza, Israeli authorities must ensure they comply with the ICJ ruling by granting immediate access to independent human rights investigators and ensuring that all evidence of violations is preserved."
"Third states must pressure Israel to comply with the ICJ orders by allowing the immediate entry into the Gaza Strip of independent human rights investigators and forensic experts, including the U.N.-appointed Commission of Inquiry and investigators of the International Criminal Court," she added. "There can be no truth and justice without proper, transparent independent investigations into these deaths."
Keep ReadingShow Less
Most Popular