AUSTIN,
Texas -- OK, Republicans, justify this. I want to hear your
explanations for why the Republican leadership went against the will
of 318 members to grant an unconscionable gift to corporations that
set up offshore tax shelters to avoid paying their U.S. taxes. Come
on, Rush, I really want to hear this one -- and do, please, include
the word "patriotism."
According to Citizens for Tax Justice, the offshore tax-shelter
dodge costs this country as much as $50 billion annually. An
amendment to the Homeland Security bill would not have shut down the
loophole -- though Lord knows that needs to be done -– but it
would have prevented rewarding these financial traitors with
government contracts.
The House leadership -- that would be your speaker, Dennis
Hastert, and your majority leader, Dick Armey -- going against the
will of both the House and the Senate, took out the "Wellstone
Amendment," sponsored by the late populist senator. It would have
prevented runaway companies, those that set up mailboxes in Bermuda
in order to avoid paying their taxes, from getting government
contracts related to homeland security. They replaced the Wellstone
Amendment with a toothless provision that affects no company.
The polite term for these corporate tax-dodgers is "corporate
inversion" or "corporate expatriates," but they are tax cheats, pure
and simple. They don't move anywhere, they just get a shell address
so they won't have to pay their share of the taxes. And guess who
gets stuck paying their share instead? And now we're going to reward
these tax cheats with government contracts.
Here's Rep. Richard Neal of Massachusetts on how it works: "Let's
take Tyco, formerly of New Hampshire, now of Bermuda, for example.
Tyco avoids paying $400 million a year in U.S. taxes by setting up a
shell headquarters offshore, but it was awarded $182 million in
lucrative defense and homeland security-related contracts in 2001
alone. If Tyco had just paid its tax bill, Congress could easily
have paid for 400 explosive detection systems (EDS), which are badly
needed to protect U.S. travelers at airports around the nation.
"Or let's examine corporate expatriate Ingersoll-Rand, formerly
of New Jersey, and now also in Bermuda. Ingersoll-Rand earned as
much last year in U.S. defense and homeland security federal
contracts as it avoids in U.S. taxes annually merely by renting a
mailbox in Bermuda and calling it ‘home'. If Ingersoll-Rand paid its
U.S. tax bill, Congress could easily afford to fund the Cyberspace
Warning Intelligence Network, estimated to cost $30 million, or it
could also buy 400,000 gas masks for American citizens."
If this is what Republicans want to stand for, fine with me.
Their leadership has thwarted all efforts to have a debate and vote
on a separate bill, the Corporate Patriot Enforcement Act, a
bipartisan bill to deny benefits to corporations that flee to tax
havens. In Texas, the home of the blunt, we call legislators who
sell out the people in order to kiss the butts of their campaign
contributors "whores."
And why would Republicans do such a despicable thing? Well, let's
look at the lobbyists hired to fight the offshore provision: former
Republican presidential candidate Robert Dole (paid by Tyco), former
House Ways and Means Chairman Bill Archer, Bush family confidant
Charlie Black, former House Appropriations Committee Chair Robert
Livingston, former Sen. Dennis DeConcini (one of the Keating Five)
and Reagan White house Chief of Staff Kenneth Duberstein.
Here's the good news: If the people ever put up enough money, we
could get exactly the same team to argue for our side. That's what I
mean by "whores".
The D's, plus Sen. John McCain, tried to get this and other
obnoxious special-interest provisions taken out of the bill. So the
R's promised to "tone down" the offensive amendments with corrective
legislation -- sometime next year. But the incoming House Majority
Leader Tom DeLay has already announced that he agreed only to
"consider" such changes, not actually make them. Don't put any money
on this prospect.
The Homeland Security bill was 35 pages long when President Bush,
who had long opposed it, did a 180 in the summer and pretended he
invented it. He decided to support it instead of ignoring the
proposal by Democrats (one of those "down the memory hole" moments
for the D.C. press corps, which keeps announcing the bill's passage
is "a major victory" for the Bush administration). By then, the
"Homeland Security" bill had become a 435-page behemoth, so larded
with pork and special-interest legislation that Sen. Robert Byrd (no
stranger to pork) kept dropping the triple-phone-book sized bill on
his desk, repeatedly calling it "this mon-stros-ity."
The other special provisions tucked in the bill to reward other
big Republican contributors are almost as disgusting. I must admit
that the amendment protecting the Eli Lily Co. from future lawsuits
is a fine example of really fast service for a contributor. It was
just a few weeks ago that The New York Times ran the first serious
look at Thimerosal, the vaccine preservative that may be related to
autism, and -- wham, bam -- no problem for the Lily company. (And
don't give me that bull about how it's just an arbitration panel,
parents can still sue, yaddda, yadda, yadda. The purpose of that
stinking amendment could not possibly be clearer. The Lily Co.
bought itself a very nice piece of legislation indeed.)
It's one thing to pass this kind of special interest legislation.
It's another to call it "patriotism." That could gag a maggot.
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Molly
Ivins is the former editor of the liberal monthly
The Texas
Observer. Her bestselling book,
Molly Ivins Can't Say That Can She?, is available through
ShopForChange.