January, 20 2015, 03:15pm EDT
Public Citizen Calls on Obama Administration to Support the Passage of a Wall Street High Roller Fee
The President’s Tax Reform Proposal, a Theme of Tonight’s State of the Union, Omits Key Elements to Ensure Corporations Pay Their Fair Share
WASHINGTON
President Barack Obama's latest tax reform plan, announced this weekend and expected to be one of the major themes of tonight's State of the Union address, is laudable but is missing two key elements: the closure of international tax loopholes and a financial transaction tax, Public Citizen said today.
Positive ideas include modifying the capital gains tax, taxing big banks and instituting new individual tax credits. But Obama failed to address the problem of corporate tax inversions, which occur when corporations desert the U.S. by merging with companies headquartered in jurisdictions with lower taxes.
Today, U.S. Sens. Richard Durbin (D- Ill.) and Jack Reed (D-R.I.), and U.S. Reps. Sander Levin (D-Mich.) and Lloyd Doggett (D-Texas) reintroduced the Stop Corporate Inversions Act, a bill designed to help solve one of the problems of international tax avoidance. It would help ensure that fewer companies will escape their U.S. tax duty by shifting their headquarters on paper to countries with lower tax rates.
The measure would lower the threshold at which a company is defined as "inverted." Currently, if 80 percent of a newly merged company is held by the same domestic shareholders as the previous corporation, it is considered inverted and treated as domestic for tax purposes. The measure would lower this to 50 percent. Multinational corporations still managed and controlled from the U.S. also would fall under the changed definition of an "inverted" company under the act.
"Congressional champions like Senators Durbin and Reed, and Representatives Levin and Doggett are leading the way to addressing the gaping holes in international tax code that allow profitable multinational corporations to reincorporate overseas as a way to reduce their tax rates," said Susan Harley, deputy director of Public Citizen's Congress Watch division. "Public Citizen calls on President Obama, as well as all members of Congress, to join with these champs to step up to the task of ensuring that corporations pay their fair share of the cost of government."
What also was missing from the president's proposal was any mention of using a Wall Street tax to gain revenue while tamping down market gambling. U.S. Rep. Chris Van Hollen (D-Md.) recently proposed such a "high roller" fee to curb Wall Street speculation. Though Obama's plan called for a tax on the top banks that are over-leveraged, his proposal should have included a tax on trades by Wall Street banks," Harley said.
"Just last week, U.S. Rep. Van Hollen made the commonsense suggestion that the U.S. should move forward in concert with European countries that are poised to institute an expected 0.1 percent tax on stock trades and other financial transactions," said Harley. "President Obama's proposal to tax big banks, though good, does not go far enough. He missed the opportunity to show the same courage as Rep. Van Hollen to rein in Wall Street's high-speed, high-stakes gambling with a high roller fee. We urge the administration to take these steps in the future.
"The president's over-emphasis on revenue neutrality may be a shared ideal with the Republican Party but it won't get America past the 'more cuts' budgeting mentality that is defunding the nation's social safety net," Harley said.
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
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Climate Crisis to Cost Global Economy $38 Trillion a Year by 2050
"This clearly shows that protecting our climate is much cheaper than not doing so, and that is without even considering noneconomic impacts such as loss of life or biodiversity," a new study's lead author said.
Apr 18, 2024
The climate crisis will shrink the average global income 19% in the next 26 years compared to what it would have been without global heating caused primarily by the burning of fossil fuels, a study published in Nature Wednesday has found.
The researchers, from the Potsdam Institute for Climate Impact Research (PIK), said that economic shrinkage was largely locked in by mid-century by existing climate change, but that actions taken to reduce emissions now could determine whether income losses hold steady at around 20% or triple through the second half of the century.
"These near-term damages are a result of our past emissions," study lead author and PIK scientist Leonie Wenz said in a statement. "We will need more adaptation efforts if we want to avoid at least some of them. And we have to cut down our emissions drastically and immediately—if not, economic losses will become even bigger in the second half of the century, amounting to up to 60% on global average by 2100."
"I am used to my work not having a nice societal outcome, but I was surprised by how big the damages were."
Put in dollar terms, the climate crisis will take a yearly $38 trillion chunk out of the global economy in damages by 2050, the study authors found.
"That seems like… a lot," writer and climate advocate Bill McKibben wrote in response to the findings. "The entire world economy at the moment is about $100 trillion a year; the federal budget is about $6 trillion a year."
This means that the costs of inaction have already exceeded the costs of limiting global heating to 2°C by six times, the study authors said. However, limiting warming to 2°C can still significantly reduce economic losses through 2100.
"This clearly shows that protecting our climate is much cheaper than not doing so, and that is without even considering noneconomic impacts such as loss of life or biodiversity," Wenz said.
The damages predicted by the study were more than twice those of similar analyses because the researchers looked beyond national temperature data to also incorporate the impacts of extreme weather and rainfall on more than 1,600 subnational regions over a 40-year period, The Guardian explained.
"Strong income reductions are projected for the majority of regions, including North America and Europe, with South Asia and Africa being most strongly affected," PIK scientist and first author Maximilian Kotz said in a statement. "These are caused by the impact of climate change on various aspects that are relevant for economic growth such as agricultural yields, labor productivity, or infrastructure."
However, Wenz told the paper that the paper's projected reduction was likely a "lower bound" because the study still doesn't include climate impacts such as heatwaves, tropical storms, sea-level rise, and harms to human health.
Unlike previous studies, the research predicted economic losses for most wealthier countries in the Global North, with the U.S. and German economies shrinking by 11% by mid-century, France's by 13%, and the U.K.'s by 7%. However, the countries set to suffer the most are countries closer to the equator that have lower incomes already and have historically done much less to contribute to the climate crisis. Iraq, for example, could see incomes drop by 30%, Botswana 25%, and Brazil 21%.
"Our study highlights the considerable inequity of climate impacts: We find damages almost everywhere, but countries in the tropics will suffer the most because they are already warmer," study co-author Anders Levermann, who leads Research Department Complexity Science at PIK, said in a statement. "Further temperature increases will therefore be most harmful there. The countries least responsible for climate change, are predicted to suffer income loss that is 60% greater than the higher-income countries and 40% greater than higher-emission countries. They are also the ones with the least resources to adapt to its impacts."
Wenz told The Guardian that the results were "devastating."
"I am used to my work not having a nice societal outcome, but I was surprised by how big the damages were. The inequality dimension was really shocking," Wenz said.
Levermann said the paper presented society with a clear choice:
It is on us to decide: Structural change towards a renewable energy system is needed for our security and will save us money. Staying on the path we are currently on, will lead to catastrophic consequences. The temperature of the planet can only be stabilized if we stop burning oil, gas, and coal.
McKibben, meanwhile, argued that the findings should persuade major companies to embrace climate action for self-interested reasons. He noted that most corporate emissions come from how company money is invested by banks, particularly in the continued exploitation of fossil fuel resources.
"If Amazon and Apple and Microsoft wanted to avoid a world where, by century's end, people had 60% less money to spend on buying whatever phones and software and weird junk (doubtless weirder by then) they plan on selling, then they should be putting pressure on their banks to stop making the problem worse. They should also be unleashing their lobbying teams to demand climate action from Congress," McKibben wrote.
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The Congressional Progressive Caucus on Thursday published a "comprehensive domestic policy legislative agenda" for U.S. President Joe Biden's possible second White House term that seeks to "deliver equality, justice, and economic security for working people."
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"Progressives are proud to have been part of the most significant Democratic legislative accomplishments of this century. We have made real progress for everyday Americans—but there's much more work to be done," Congressional Progressive Caucus Chair Pramila Jayapal (D-Wash.) said in a statement.
"That's why the Progressive Caucus has identified these popular, populist, and possible solutions," she added. "Democrats in Congress can meet the urgent needs people are facing; rewrite the rules to ensure majorities of this country are no longer barred from the American promise of equality, justice, and economic opportunity; and motivate people with a vision of progressive governance under Democratic majorities in the House and Senate and a Democratic White House."
Progressive lawmakers have already introduced bills for many items on the agenda, including a Green New Deal for Public Schools, expanding the Supreme Court, comprehensive voting rights protection, and legalizing marijuana.
Critics noted the conspicuous absence of Medicare for All—once a top progressive agenda item—and foreign policy issues including ending Israel's genocide, apartheid, occupation, settler colonization, and ethnic cleansing in Palestine.
Jayapal toldNBC News that the CPC is focusing its blueprint exclusively on domestic goals—especially ones it feels can be achieved.
"The way we came to this agenda is to say that we were going to put into this agenda things that were populist and possible... and affected a huge number of people," she said. "We haven't taken a position on particularly Israel and Gaza in the progressive caucus, and so that's not on here."
The CPC agenda is backed by a wide range of labor, climate, environmental, civil rights, consumer, faith-based, and other organizations.
"The Congressional Progressive Caucus is leading the way for Congress to address the major issues affecting working families, from reducing healthcare and housing costs to strengthening workers' rights to join unions, earn living wages and benefits, and have safe workplaces," Service Employees International Union president Mary Kay Henry said in a statement.
"SEIU is proud to partner with the CPC to move these priorities forward and build a more equitable economy in which corporations are held accountable for their actions," she added.
Mary Small, chief strategy officer at Indivisible, said: "House progressives were the engine at the heart of our legislative accomplishments in 2021 and 2022. They've continued that momentum to be true governing partners to the Biden administration as those laws and programs are implemented."
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"These mass, illegal firings will not stop us," said organizers. "Make no mistake, we will continue organizing until the company drops Project Nimbus and stops powering this genocide."
Apr 18, 2024
The peace coalition No Tech for Apartheid accused Google of a "flagrant act of retaliation" late Wednesday night as the Silicon Valley giant announced it had fired 28 workers over protests against its cloud services contract with the Israeli government.
The firings came after Google organizers held two 10-hour sit-ins at the company's offices in Sunnyvale, California and New York City, demanding the termination of Project Nimbus, a $1.2 billion contract under which Google and Amazon provide cloud infrastructure and data services for Israel—without any oversight regarding whether the Israel Defense Forces uses the services in its occupation of Palestinian territories and bombardment of Gaza.
Workers have denounced Project Nimbus since it was announced in 2021, but Israel's killing of at least 33,970 Palestinians in Gaza since October and its intentional starvation of civilians led employees to escalate their protests.
No Tech for Apartheid said in a statement that Google officials called the police to both offices to arrest nine protesters—dubbed the Nimbus Nine—on Tuesday morning, before utilizing "a dragnet of in-office surveillance" to fire nearly two dozen other employees on Wednesday.
"They punished all of the workers they could associate with this action in wholesale firings," said the coalition, which includes Jewish Voice for Peace and MPower Change, a Muslim-led anti-war group.
Google accused the workers of "bullying," "harassment," defacing property, and physically impeding other employees—allegations No Tech for Apartheid rejected as it noted organizers "have yet to hear from a single executive about" their concerns over Google's collaboration with Israel.
"This excuse to avoid confronting us and our concerns directly, and attempt to justify its illegal, retaliatory firings, is a lie," said the workers. "Even the workers who were participating in a peaceful sit-in and refusing to leave did not damage property or threaten other workers. Instead they received an overwhelmingly positive response and shows of support."
The organizers staged the sit-ins on the heels of reporting in Time magazine about new negotiations between Google and the Israeli government regarding further potential tech contracts.
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Google employees have a history of harnessing worker power to change policies at the company. In 2018, Google terminated a deal with the U.S. Defense Department to develop drone and artificial intelligence (AI) technology through a contract called Project Maven. The decision followed the resignations of several employees and the condemnation of thousands of workers.
Calling Google CEO Sundar Pichai and Google Cloud CEO Thomas Kurian "genocide profiteers," No Tech for Apartheid said Wednesday that they will not stop demonstrating against Project Nimbus until they get a similar result.
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