Author: HL

  • U.S. withdrawal from Iraq will be on time, Vice President Biden says

    U.S. withdrawal from Iraq will be on time, Vice President Biden says
    President Obama called Iraq his predecessor’s war of choice. Now it is his war to exit — and quickly.


    Vice President of the United StatesIraqJoe BidenUnited StatesHistory

    Neither side happy with jobs bill being pushed through Congress
    Some conservatives say people who are out of work shouldn’t be able to collect jobless benefits for almost two years. Liberals, meanwhile, want Congress to pay for a New Deal-style program in which the federal government would send money to states and localities, which would then directly hire pe…


    United StatesUnited States CongressPoliticsRobert GatesBen Nelson

    Lawmakers assail Minerals Management Service
    Members of Congress from both parties sharply criticized the Interior Department’s Minerals Management Service on Wednesday, a day after the release of a report showing that the agency’s inspectors routinely took gifts such as college football tickets from the companies they were supposed to be…


    GeologyEarth SciencesRocks and MineralsMineralsDealers

    The Fix: Whitman surges in California governor race
    1. Less than two weeks before Arkansas voters head back to the polls to choose between Sen. Blanche Lincoln (D) and Lt. Gov. Bill Halter (D), both sides launched ads aimed at defining the incumbent.


    CaliforniaMeg WhitmanRepublicanSteve PoiznerEBay

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  • North Korea Cuts Ties to South Korea

    North Korea Cuts Ties to South Korea
    North Korea has announced it will sever all ties with South Korea, the country’s official KCNA news agency said on Tuesday. The country’s government also said its troops were bracing for war as tensions spiked over the sinking of a South Korean warship in late March.

  • Self-violating

    Self-violating
    You would think at a minimum the regulators of theses lax agency’s could at least handle cleaning up a mess.

    (Brown pelican being treated – photo via IBRRC at Flickr)

    The response of the Obama Administration to BP’s attempt to turn oil into oilade has been, to say the least, underwhelming. I know the guy isn’t Red Black Adair but is it too much too ask to be “whelmed” occasionally?

    But one thing is pretty clear about where this all starts, a lot of Republicans hate governing as much as they love loving themselves. In a report that covers the period 2000 to 2008 (who was President most of that time? Oh yeah, Dick Cheney) a pattern develops.

    Staff members at an agency that oversees offshore drilling accepted tickets to sports events, lunches and other gifts from oil and gas companies and used government computers to view pornography, according to an Interior Department report alleging a culture of cronyism between regulators and the industry.

    Rubbing one out, instead of regulating, was not unknown of course.

    …a new government report reveals that some high-level regulators have spent more time looking at porn than policing Wall Street…the report says most of these cases began in 2008, just as the financial system began to collapse.

    I now shudder more to think what is actually in the minutes of Dick Cheney’s Energy Task Force, in addition to what I have been shuddering over.

  • Alleged Chicago Torturer’s Overdue Day in Court

    Alleged Chicago Torturer’s Overdue Day in Court
    Abu Ghraib has nothing over Chicago. Forty years ago, Jon Burge returned from Vietnam, joined the Chicago Police Department and allegedly began torturing people. By Amy Goodman

    Abu Ghraib has nothing over Chicago. Forty years ago, Jon Burge returned from Vietnam, joined the Chicago Police Department and allegedly began torturing people.

    Related Entries


  • How They Passed Health Care: The Final Installment

    How They Passed Health Care: The Final Installment
    Nancy Pelosi was in the Old Executive Office Building when one of her advisers gave her a message: Obama wanted her next door, in the…

    HUFFPOST HILL – MAY 25, 2010
    Lawmakers turned their attention to the Gulf today: Robert Menendez had the uncanny idea that companies which get reckless with crude should pay for the…

    Suzanne E. Spaulding: Saving the DNI from Extinction
    Before any prospective nominee for DNI agrees to take the job, he or she should get a firm commitment from the President to provide the political backing for budget and personnel authority lacking in the legislative charter.

    Kelley Beaucar Vlahos: Rand Paul Drinks Tea, Turns Into Hawk?
    Paul knew he needed the extraordinary muscle of the Tea Party to win the primary. Going forward, will his non-interventionist impulses prevail, or will the Tea Party demand certain reciprocities for its help in winning the seat?

  • Does “Reagan conservative” Hannity think Reagan should have been impeached for reported job offer?

    Does “Reagan conservative” Hannity think Reagan should have been impeached for reported job offer?

    Sean Hannity has baselessly claimed that an alleged job offer by the Obama administration to Rep. Joe Sestak would constitute a “de facto bribe” and “an impeachable offense.” However, the administration of Hannity’s political hero, Ronald Reagan, reportedly made a similar offer to a candidate.

    Hannity baselessly suggests Sestak job claims constitute “high crimes and misdemeanors” for Obama

    Hannity: “De facto bribe” to Sestak is “an impeachable offense.” Hannity asked Fox News political analyst Dick Morris, “This, at a minimum, we’re talking about a congressman offered a high-ranking job, this is a de facto bribe, no?” Morris replied, “It is,” later adding that the offer might be “a high crime and misdemeanor.” Hannity then asked: “That would be — in other words — an impeachable offense.” Morris replied, “Absolutely.” [Fox News’ Hannity, 5/24/10]

    Hannity invokes Nixon resignation, asks if “Sestak scandal” could “drive [Obama] out of the White House.” After airing footage of President Nixon saying, “I will resign from the presidency at noon tomorrow,” Hannity asked, “If the Sestak scandal spins out of control, could it drive the Anointed One out of the White House?” [Fox News’ Hannity, 5/25/10]

    Hannity to Jay Sekulow: “High crimes and misdemeanors?” Hannity said that “if Joe Sestak is telling the truth that one of the president’s advisers did offer him a job, many have suggested that a senior administration official, and maybe even the president himself, is guilty of a crime.” Hannity then interviewed conservative legal analyst Jay Sekulow and Reagan administration deputy assistant attorney general Victoria Toensing, both of whom agreed that a crime was committed. During the interview, Hannity asked Sekulow, “High crimes and misdemeanors, Jay?” Sekulow replied that “Article 2, Section 4 of the Constitution” — the section dealing with impeachment — “is there for a reason.” [Fox News’ Hannity, 5/25/10]

    Hannity: “So Rahm Emanuel would risk going to jail to fall on the sword for the president?” After Toensing speculated that whoever supposedly offered Sestak a job would “fall on his or her sword” rather than put President Obama in legal “trouble,” Hannity asked, “Hypothetically, if it was Rahm Emanuel, does he risk potential criminal charges?” Toensing and Sekulow agreed that he would. Hannity then asked, “So Rahm Emanuel would risk going to jail to fall on the sword for the president?” [Fox News’ Hannity, 5/25/10]

    “Reagan conservative” Hannity ignores Reagan administration’s reported offer of job for candidate to step down

    Hannity identifies himself as a “Reagan conservative.” A chapter in Hannity’s book, Conservative Victory, is titled “Why I’m a Reagan Conservative.” In that chapter, Hannity writes:

    Today, I believe we’re facing a crossroads in America’s future — a choice between, on the one hand, a disastrous path of socialism at home and weakness on the world stage, and on the other, free-market capitalism, moral authority, and steadfast security. In the upcoming elections, we will choose our path. And before we do, I believe we must remind ourselves of the example set by the most successful president in modern times — Ronald Reagan. [Page 134]

    Reagan adviser reportedly offered CA senator a job with the administration “if he decided not to seek re-election.” A November 25, 1981, Associated Press article reported that President Reagan’s political adviser Ed Rollins planned to offer then-California Sen. S.I. Hayakawa a job in the administration in exchange for not seeking re-election. From the AP article (accessed from the Nexis database):

    Sen. S.I. Hayakawa on Wednesday spurned a Reagan administration suggestion that if he drops out of the crowded Republican Senate primary race in California, President Reagan would find him a job.

    “I’m not interested,” said the 75-year-old Hayakawa.

    “I do not want to be an ambassador, and I do not want an administration post.”

    […]

    In an interview earlier this week, Ed Rollins, who will become the president’s chief political adviser in January, said Hayakawa would be offered an administration post if he decided not to seek re-election. No offer has been made directly to Hayakawa, Rollins said.

    Similarly, Hayakawa said in a statement, “I have not contacted the White House in regard to any administration or ambassadorial post, and they have not been in contact with me.”

    AP: “Ethics attorneys in Washington said such offers are common.” A February 19 Associated Press article reported: “Ethics attorneys in Washington said such offers are common. Melanie Sloan, director of the watchdog group Citizens for Responsibility and Ethics in Washington, described it as ‘politics as usual.’ “

    Wash. Post: “This would hardly be the first administration” to offer a job to “clear the field.” A May 25 Washington Post editorial critical of the Obama administration’s response stated: “At the same time, of course, political considerations play a role in political appointments. This would hardly be the first administration to use appointments to try to clear the field for a favored candidate.”

    Legal experts dispute claims that a crime was committed

    Bush ethics lawyer calls claim that a job offer is a bribe “difficult to support.” In a post on the Legal Ethics Forum blog, former Bush administration chief ethics lawyer Richard Painter wrote: “The allegation that the job offer was somehow a ‘bribe’ in return for Sestak not running in the primary is difficult to support.” Painter also wrote:

    The job offer may have been a way of getting Sestak out of Specter’s way, but this also is nothing new. Many candidates for top Administration appointments are politically active in the President’s political party. Many are candidates or are considering candidacy in primaries. White House political operatives don’t like contentious fights in their own party primaries and sometimes suggest jobs in the Administration for persons who otherwise would be contenders. For the White House, this is usually a “win-win” situation, giving the Administration politically savvy appointees in the Executive Branch and fewer contentious primaries for the Legislative Branch. This may not be best for voters who have less choice as a result, and Sestak thus should be commended for saying “no”. The job offer, however, is hardly a “bribe” when it is one of two alternatives that are mutually exclusive.

    Painter: “[D]ifficult to envision applying” bribery statute to Sestak job offer. In a subsequent blog post replying to a call by Rep. Darrell Issa (R-CA) for a special prosecutor to be appointed to investigate possible criminal charges, Painter wrote: “The Administration probably should provide the information needed to clarify what happened, but the bribery statute citied by Congressman Issa is, for reasons explained in my previous post, difficult to envision applying to this situation.”

    CREW executive director: “I don’t see the crime.” CNSNews.com reported that Sloan, a former federal prosecutor, commented of the allegations: “I don’t see the crime.” From the March 24 CNS article:

    “People offer members of Congress things all the time,” Melanie Sloan, a former federal prosecutor and now the executive director of the liberal government watchdog group Citizens for Responsibility and Ethics in Washington (CREW), told CNSNews.com. “I don’t think there is any issue. I don’t see the crime.”

    […]

    If it is true, such a trade would be an indictment of the system, Sloan of CREW said, but not likely illegal.

    “A quid pro quo has to offer something of value in exchange for something,” Sloan said. “If you agree not to run for the Senate and we’ll make you secretary of the Navy — that offers no monetary value. It’s just the unseemly side of politics.”

    Wash. Post: “[E]thics laws do not seem designed for this circumstance.” In a May 25 editorial, The Washington Post stated: “Would it be illegal? Mr. Specter said so, but ethics laws do not seem designed for this circumstance. Ordinarily, bribery takes place in the opposite direction: Government officials aren’t usually the ones offering something of value. Other statutes prohibit officials from using their power to interfere in an election, or to, directly or indirectly, promise a job as ‘reward for any political activity.’ But these have been understood to prevent official coercion, not criminalize horse-trading.” The editorial continued:

    Still, the White House position that everyone should just trust it and go away is unacceptable from any administration; it is especially hypocritical coming from this one. “I’m not going to get further into what the conversations were,” Mr. Gibbs said Sunday. “People that have looked into them assure me that they weren’t inappropriate in any way.” This response would hardly have satisfied those who were upset during the previous administration about the firing of U.S. attorneys. If there was nothing improper, why not all that sunlight Mr. Obama promised?

    TPM: “[E]xperts seem to agree that there’s no legal wrongdoing — and very little scandal here.” Talking Points Memo’s Zachary Roth reported in a May 25 post that “several experts tell TPMmuckraker this is much ado about nothing.” Roth went on to report:

    That may be fair as far as it goes — the White House certainly hasn’t been falling all over itself to be up front about what happened. But the experts seem to agree that there’s no legal wrongdoing — and very little scandal here.

    “People horse trade politically all the time,” Stan Brand, a prominent Washington criminal defense lawyer told TPMmuckraker. “So I don’t put much stock in this, and I don’t think its gonna go anywhere.”

    Even those who used to prosecute public corruption cases agree. “Talk about criminalizing the political process!” said Peter Zeidenberg, a former federal prosecutor with the Justice Department’s Public Integrity unit. “It would be horrible precedent if what really truly is political horsetrading were viewed in the criminal context of: is this a corrupt bribe?”

    And Melanie Sloan, a former federal prosecutor who as the head of Citizens for Responsibility and Ethics in Washington isn’t known for going on easy public corruption, concurred. “There is no bribery case here,” she said. “No statute has ever been used to prosecute anybody for bribery in circumstances like this.”

    Sloan added that Issa’s move was more about politics. “It’s not at all about whether there was actual criminal wrongdoing,” she said. “It’s about how to go after Sestak.”

  • Man Who Killed Arkansas Police Officers Had Anti-Government Views (VIDEO)

    Man Who Killed Arkansas Police Officers Had Anti-Government Views (VIDEO)
    On Thursday, two police officers pulled over a white van in West Memphis, Arkansas, for a traffic stop, and the driver opened fire with an AK-47, killing the officers, according to police. The driver of the van was Jerry Kane,…

    Even CREW Says Sestak’s Claim Of Job Offer Is No Scandal
    Republicans have been launching a full-court press to trumpet the claim by Rep. Joe Sestak (D-PA) that the White House offered him a job in exchange for dropping out of the Democratic primary race for the U.S. Senate, in an effort to clear the field for its favored candidate, Sen. Arlen Specter (D-PA). One GOP lawmaker has called for a criminal probe, alleging possible illegal conduct. But several experts tell TPMmuckraker this is much ado about nothing.


    White HouseJoe SestakArlen SpecterRepublicanUnited States Senate

  • Oil fouls coast of Louisiana, no end is in sight

    Oil fouls coast of Louisiana, no end is in sight
    Author’s note: This is bad…really bad. Anyone else having nightmares about this? Excerpt: For weeks, the magnitude of the oil disaster in the Gulf has been something people have read about. Now it is reality for the residents on the coast of Louisiana. Even CNN, between sound bytes of the latest celebrity and entertainment news, reported that “there […]

  • Favored GOP Candidate Loses in Upset

    Favored GOP Candidate Loses in Upset
    Raul Labrador (R) won an upset primary victory in Idaho’s 1st congressional district last night, defeating military veteran Vaughn Ward (R), the favored candidate of the Washington Republican establishment, Politico reports.

    Labrador will face Rep. Walt Minnick (D-ID) in the general election.

    The Fix: “Ward becomes the latest establishment favorite to go down in defeat, although his loss will more likely be chalked up to his campaign’s myriad gaffes.”

    Obama Approval on the Rise
    A new Quinnipiac poll finds that 48% of American voters approve of the job President Obama is doing, while 43% disapprove.

    It’s the first time since December that more voters give him a thumbs up rather than thumbs down.

    Said pollster Peter Brown: “The increase in President Barack Obama’s job approval is a welcome step for the White House. His ratings have been in the no man’s land of just below parity for some time and now the question is whether this is the beginning of an upward trend or just a blip.”

    Democrats Grab Back Lead in Generic Ballot
    A new Quinnipiac poll finds American voters prefer a Democrat over a Republican in this year’s midterm elections by a 42% to 36% margin, reversing a 44% to 39% Republican lead just two months ago.

  • It’s Conference Time in Progressive America — Will You Be Attending?

    It’s Conference Time in Progressive America — Will You Be Attending?
    Summer is the season when American progressives gather to assess the political moment and mobilize their troops for the ongoing battle.

    Summer is the season when American progressives gather to assess the political moment and mobilize their troops for the ongoing battle.

    The Corporate Stranglehold: How BP Will Make out Like Bandits from Its Massive, Still Gushing Oil Disaster
    The existing $75 million cap on damages for offshore drilling companies is a bailout every bit as disgusting as those recently bestowed upon Wall Street.

    The existing $75 million cap on damages for offshore drilling companies is a bailout every bit as disgusting as those recently bestowed upon Wall Street.

    How Obama’s Election Drove the American Right Insane
    For huge numbers of dedicated right-wing Americans, November 5, 2008, was the end of the world. Or at least, the end of America as they knew it.

    For huge numbers of dedicated right-wing Americans, November 5, 2008, was the end of the world. Or at least, the end of America as they knew it.

    The Tea Party: At Last a Citizen Movement the Corporate Media Can Love
    The hateful, ignorant, haphazardly-organized Tea Party movement receives a level of press coverage few progressive citizen groups will ever see.

    The hateful, ignorant, haphazardly-organized Tea Party movement receives a level of press coverage few progressive citizen groups will ever see.

  • Blogging & The Brain

    Blogging & The Brain
    There are two serious critiques of Internet culture circulating in the academy these days. The Internet is shortening your attention span, making it harder for you to do deep thinking. The Internet is turning us all into tribal denizens, only…


    Social SciencesPsychologyNicholas CarrWall Street JournalLondon

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    Nukes: How Low Can We Go?
    In an op-ed in today’s New York Times, Gary Schaub and James Forsyth make the case for a greatly reduced U.S. nuclear arsenal — a reduction of 4,802 warheads, to be exact. That would leave the total at 311. Their…

  • Arizona Superintendent: It?s A Big Problem If Teachers Have Accents And Pronounce ?Comma? As ?COH-ma?

    Arizona Superintendent: It?s A Big Problem If Teachers Have Accents And Pronounce ?Comma? As ?COH-ma?
    Late last month, the Wall Street Journal reported that the Arizona Department of Education “recently began telling school districts that teachers whose spoken English it deems to be heavily accented or ungrammatical must be removed from classes for students still learning English”: State education officials say the move is intended to ensure that students with limited […]

    Late last month, the Wall Street Journal reported that the Arizona Department of Education “recently began telling school districts that teachers whose spoken English it deems to be heavily accented or ungrammatical must be removed from classes for students still learning English”:

    State education officials say the move is intended to ensure that students with limited English have teachers who speak the language flawlessly. But some school principals and administrators say the department is imposing arbitrary fluency standards that could undermine students by thinning the ranks of experienced educators. […]

    This is just one more indication of the incredible anti-immigrant sentiment in the state,” said Bruce Merrill, a professor emeritus at Arizona State University who conducts public-opinion research.

    At one school, for example, state auditors complained that teachers pronounced “words such as violet as ‘biolet,’ think as ‘tink’ and swallow the ending sounds of words, as they sometimes do in Spanish.” The principal at that school acknowledged that teachers “should speak grammatically correct English” but said they shouldn’t be punished for having an accent.

    The man in charge of this project, far-right Arizona superintendent Tom Horne — who is running for attorney general — has been going on national media in recent days to defend his policies. Yesterday he went on Hannity, and this morning he went on Fox and Friends. Yesterday he was also on CNN and argued that he isn’t targeting teachers with accents — just people who use “faulty English.” However, the “faulty English” he cited was an example of someone having an accent:

    HORNE: We’re not going after any accents, including Spanish accents. It has to be faulty English. If students are being taught English, and they’re going to refer to a “comma” as a “COH-ma,” people are going to misunderstand them.

    Watch it:

    Horne is the same person who has taken an active role in ridding the state of ethnic studies classes, saying that they encourage “ethnic chauvanism.” Earlier this year, he took heat from Arizona Latinos for referring to venerated civil rights leader Dolores Huerta as a “former girlfriend” of Mexican American labor leader Cesar Chávez — even though she was actually his sister-in-law.

  • Maryland governor candidates hope to win big with casinos

    Maryland governor candidates hope to win big with casinos
    PERRYVILLE, MD. — Gov. Martin O’Malley strode Tuesday into a shell of a building here in Maryland’s northeastern corner that, if all goes according to plan, will be transformed into the state’s first slots casino just a few weeks before Election Day.



    United StatesMarylandPoliticsGovernorCandidates and Campaigns

    Shadow of politics hangs over D.C. budget as Fenty tangles with council members
    The mayor’s budget lacks, some of his critics charge, imagination and grit — ignoring tough decisions and continuing to borrow from the city’s already weakened reserve funds to close a $550 million gap.


    Adrian FentyWashington DCUnited StatesPoliticsOrganizations

    Obama, GOP adversaries to meet in closed-door session
    President Obama will submit to a polite but pointed grilling from his Republican Senate adversaries in the Capitol’s LBJ room Tuesday afternoon, a rare show of bipartisanship in an increasingly hostile city.


    RepublicanUnited StatesBarack ObamaPresidentGovernment

    Popular benefit of health-care law excludes military families
    By the time Congress passed the national health-care overhaul, anxiety about it was so widespread that Defense Secretary Robert M. Gates issued a statement reassuring military families. The legislation, Gates said, “will not negatively impact the TRICARE medical insurance program” for members of …


    United StatesHealthPoliticsHealth careHealth Care Reform

  • Republicans get right on this!

    Republicans get right on this!
    Combining the free market and the Second Amendment explosively.

    I submit to you it has become clear what must be done to preserve the ‘Murican Way’ of life for at most the next generation and a half (note: “way of life” not available south of 31 degrees latitude).

    Several experts have suggested that the way to end the flow of oil from the sea floor, is not junk shots or fashionable hats, but dropping the BIG ONE on the true evildoer — the Gulf of Mexico. First, it took out the dinosaurs, now it wants us!

    The Russians have set off a nukes on bad wells before…and I ask you who this side of Union Carbide has a better environmental record?

    Also, the government has proclaimed that regardless of how ineffective BP’s efforts have been to this point, the latter possesses more technology for the task than the government.

    More technology available for the task, except one, that is.

    Michelle Bachman, you know what to do.

    Introduce a bill allowing, in the name of the free market, to allow a true American success story – British Petroleum– to have its own stockpile of nuclear weapons.

    And then you can put in a rider, mandating that we immediately begin preparations for bombing Iran, or maybe Citgo. Ah hell, why not both?


  • Menachem Rosensaft: Patrick Buchanan: Poster Boy for Anti-Semitism (or What Else Is New?)

    Menachem Rosensaft: Patrick Buchanan: Poster Boy for Anti-Semitism (or What Else Is New?)
    Patrick Buchanan: Poster Boy for Anti-Semitism (or What Else Is New?) by Menachem Z. Rosensaft Like rancid salami, Patrick Buchanan is a gift that keeps…

    How They Passed Health Care: The Power Of Obama And What Olympia Snowe Really Wanted
    Barack Obama, the law professor, was acting like a prosecutor. He’d invited Grassley to the Oval Office, to talk about the senator’s concerns. But he…

    Gulf Drilling Regulators Let Oil Companies Fill Out Their Own Inspection Reports
    WASHINGTON — Federal regulators responsible for oversight of drilling in the Gulf of Mexico allowed industry officials several years ago to fill in their own…

    Offshore Drilling Insurance Premiums Soar 15 To 50 Percent
    The price to insure offshore drilling in the Gulf of Mexico has risen at least 15% since last month’s Deepwater Horizon disaster and may stay…

    Linda R. Monk, J.D.: Stop Calling It a Spill!
    A spill is an accident. This is a not an accident. It’s not a spill, it’s a crime scene.

  • Fox’s “$165 billion” “union bailout” is neither

    Fox’s “$165 billion” “union bailout” is neither

    Fox News and Fox Business personalities have claimed that a bill dealing with union-administered pension funds is a “$165 billion bailout for unions.” In fact, the bill is not a “bailout for unions,” and its sponsor reportedly said it would cost the federal government $8 billion to $10 billion.

    Cavuto, Willis falsely claim bill is a “union bailout” that rewards unions’ “bad behavior”

    Cavuto: Bill is a “big union bailout.” On the May 24 edition of Fox News’ Your World, host Neil Cavuto called the federal corporation that insures private pension plans and takes over insured plans that go into default, such as when a company goes bankrupt. PBGC is not funded by general tax revenues; instead, it collects insurance premiums from employers that sponsor insured pension plans, earns money from investments and receives funds from pension plans it takes over. For instance, when appliance maker Whirlpool Corp. closed a plant, PBGC took over the pension plan for workers at the plant and negotiated an $11.7 million payment from Whirlpool to help fund the plan.

    Multi-employer funds — and the companies that pay into them — are weighed down by companies that went bankrupt. A March 24 Journal of Commerce article on Casey’s unveiling of his bill at a facility of trucking firm YRC Worldwide reported that multi-employer pension funds “have been weakened” by “the failure of many unionized companies that once supported them,” which forces the remaining companies whose workers are part of the fund to pay “the benefits of pensioners who never worked for them”:

    In addition to YRC officials, representatives from ABF Freight System, Kroger and the Teamsters union attended the event. The companies belong to dozens of regional Teamster multiemployer pension funds, including the Central States Pension Fund.

    Those plans have been weakened not only by the economic downturn, but the failure of many unionized companies that once supported them — including major companies such as Consolidated Freightways. UPS paid $6.1 billion to withdraw from the plans in 2008.

    That’s left YRC and ABF paying for the benefits of pensioners who never worked for them, but for businesses that may have closed years ago, making them “orphans.”

    YRC suspended contributions to its pension plans last year under an agreement with the Teamsters, but will have to resume payments in January, and the company supports reform that would lower pension costs before those payments kick in next year.

    Casey’s bill would tackle the orphan problem by allowing multiemployer plans to partition off those benefits in separate accounts, overseen by the Pension Benefit Guaranty Corp., an independent agency of the federal government. Within five years, the PBGC would take over those accounts.

    Bill does not “bail out” unions — it separates out employees of defunct firms and guarantees part of their benefits. Casey’s bill would allow pension funds to “partition” former employees of defunct firms from those of active employers within the fund, helping to preserve solvency for the fund and preventing employers paying into the fund from having to pay for the benefits of workers they never employed. PGBC would then separately guarantee benefits for those former employees of bankrupt companies. From a March 22 Casey press release announcing the unveiling of the bill:

    “Pension plans across the country have taken major losses because of the near economic collapse and the decline in the stock market,” said Senator Casey. “Multi-employer plans face unique challenges that are overburdening pension plans and the bottom lines of companies. My legislation would help correct these problems to protect the pensions of workers and unburden companies stuck paying a crippling expense that threatens its existence and the jobs of its employees.”

    Multi-employer plans face additional challenges as many firms in these plans have shut down during the recession without funding their pension obligations. Many multi-employer pension plans now run the risk of insolvency.

    As more companies leave the pension plan, the costs left to the remaining companies increase to cover the pension benefits of all employees covered by the plan. Companies still contributing to the plans also run the risk of bankruptcy because of the additional burden of being forced to pay for the pensions of the employees of other companies.

    Senator Casey’s legislation would make a number of changes to help ensure solvency of multi-employer pension plans and protect current and future retirees.

    Specifically, Senator Casey’s Create Jobs and Save Benefits Act would strengthen the funding status of multi-employer plans by making the following changes:

    • Mergers and Alliances — The language in the bill would enable multi-employer funds to combine resources for purposes of reducing administrative costs.
    • Partition (ERISA Section 4233) — If a plan satisfies certain requirements, the plan will transfer to a separate account all benefit liabilities attributed to orphans (participants of employers who withdrew from the plan without paying withdrawal liability) and assets equal to a maximum of 5-years of projected benefit payments. The PBGC will handle the initial application, drafting of partition agreement and monitor financial assistance to the plans. PBGC does not provide notices, calculate benefits or in any other form administer the plan. The orphans benefit will be fully guaranteed as if the orphan was still receiving benefits from the multi-employer plan.
    • Order the Department of Labor and Department of Treasury to prepare a report on whether the qualified partition program has strengthened the financial condition of the original plans and improved the ability of the contributing employers to these plans to remain in business.

    Fox repeatedly pushes false claim that bill will cost $165 billion

    Willis: “[W]e’re talking possibly $165 billion.” On Your World, Cavuto asserted that the bill “could leave taxpayers for upwards of north of $160 billion, and that could be just the start of it.” Cavuto was joined by Willis, who said that “it could be as much as $165 billion.” On Fox Business’ Cavuto, Willis said that “we’re talking possibly $165 billion. That’s the pension obligations of these multi-employer pension funds for unions.” Cavuto later added that “this would amount to a $165 billion bailout for unions.”

    On-screen text: “Approx Price Tag: $165 Billion Dollars.” From the May 24 Your World:

    pension

    FoxBusiness.com: “[T]he bill could put another $165 billion in liabilities on the shoulders of American taxpayers.” From a May 24 FoxBusiness.com article:

    A Democratic senator is introducing legislation for a bailout of troubled union pension funds. If passed, the bill could put another $165 billion in liabilities on the shoulders of American taxpayers.

    […]

    Although right now taxpayers could possibly be on the hook for $165 billion, the liability could essentially be unlimited because these pensions have to be paid out until the workers die.

    Laffer: $165 billion figure “a huge amount of money just gone.” On Your World, following Cavuto’s interview with Willis, he hosted economist Art Laffer who said, “What you just looked at in the last five minutes was a huge amount of money just gone in five, seven minutes.” Cavuto replied: “That’s right. I think it’s about $20 billion a minute here.”

    Hoenig: Bill “a $165 billion minimum — could be potentially even unlimited bailout.” On Cavuto, Jonathan Hoenig of CapitalistPig Asset Management said, “The Create Jobs and Save Benefits Act is a $165 billion minimum — could be potentially even unlimited bailout by taxpayers.”

    Bill does not cost $165 billion

    Casey: Bill would cost federal government $8 billion to $10 billion. A March 24 Journal of Commerce article reported that “Casey said the bill could cost the federal government between $8 billion and $10 billion.”

    Willis, FoxBusiness.com ignored Casey’s estimate. While Willis noted on Your World that Casey “disagreed with our analysis” and said, “Some have outrageously said that this is a ‘bailout that would cost $165 billion. That is totally false” — a quotation also repeated on Cavuto — Willis did not note Casey’s cost estimate on either Your World or Cavuto. The FoxBusiness.com article also failed to report Casey’s cost estimate.

    $165 billion figure represents total underfunding of all multi-employer pension funds. The $165 billion figure cited by Cavuto, Willis, and others is an estimate made in a September 2009 report by Moody’s Investor Service of the total underfunding of multi-employer pension funds, not the underfunding of such funds related to former employees of defunct companies. As the Capital Research Center summarized:

    Last September Moody’s Investor Services seconded [the Hudson Institute’s Diana] Furchtgott-Roth in warning about the perilous funding condition of multiemployer defined benefit plans. Its report, Growing Multiemployer Pension Funding Shortfall is an Increasing Credit Concern looked at the Labor Department’s Form 5500 for 126 multiemployer plans in 2007. With 2008 information yet unavailable, the data represented the best look at the majority of assets and obligations for all multiemployer plan. Moody’s remarked, “despite the limitations in the data a very stark picture emerges.” The 2007 data showed the plans overall were only 77 percent funded and had a total underfunding of $87 billion. By contrast, comparable single employer defined benefit plans were funded at 101 percent.

    But what about the condition of defined benefit pension plans after the financial meltdown at the end of 2008? Moody’s estimated that funding levels for the single employer plans it examined had fallen and now were only at 75 percent. As for multiemployer plans, Moody’s warned that “when data for year end 2008 is finally released, it will probably show substantial deterioration in asset values during 2008.” It estimated that the multiemployer plans surveyed from 2007 would be only 56 percent funded. In other words, they would be underfunded by about $165 billion dollars.

  • House bill would eliminate federal income tax on first $35K of all Americans’ earnings

    House bill would eliminate federal income tax on first $35K of all Americans’ earnings
    Excerpt: A bill was introduced in the House last week that would eliminate the federal income tax on the first $35,000 of all Americans’ earnings. The bill proposes to compensate for the loss in revenue by cutting $159 billion in supplemental war funding. H.R. 5353, known as the War is Making You Poor Act, is sponsored by […]

  • Simmons Will Step Aside for McMahon

    Simmons Will Step Aside for McMahon
    Rob Simmons (R) will hold a press conference this morning to announce he’s leaving the U.S. Senate race in Connecticut, the Hartford Courant reports.

    He lost the Republican convention’s endorsement last weekend to former World Wrestling CEO Linda McMahon (R).

    “Throughout the increasingly bitter campaign between Simmons and McMahon, Simmons had said he would abide by the convention’s choice and not force a primary. However on Friday he announced a change of heart and said he would primary McMahon for the party’s nomination after all.”

    Murray Holds Small Lead over Rossi
    A new University of Washington poll shows Sen. Patty Murray (D-WA) holding a slight edge over challenger Dino Rossi (R) in the U.S. Senate race, 44% to 40%.

    Rossi is expected to officially jump into the race tomorrow.

  • Is the Mean-Spirited, Ignorant, Tearful Glenn Beck Going to Have an Impact on America?

    Is the Mean-Spirited, Ignorant, Tearful Glenn Beck Going to Have an Impact on America?
    In his new book, journalist Alexander Zaitchik examines the character and career of the shock jock at the center of the far-right’s always-churning cultural storm.

    In his new book, journalist Alexander Zaitchik examines the character and career of the shock jock at the center of the far-right's always-churning cultural storm.

    Elected Officials Arrested Protesting DC’s Inaction on Immigration Reform
    The civil disobedience in New York was one of several nationwide.

    The civil disobedience in New York was one of several nationwide.