Taxes: If They Do the Crime, Make Them Do the Time

Americans like to trumpet the belief that we’re a “nation of laws”. Unfortunately, our laws are unevenly enforced when enforced at all. Congress churns out dozens of laws every year, while at the same time, guaranteeing they’ll fail by not budgeting for enforcement. Tea partiers like to say that most corporate laws constitute “over-regulation”. However, one could make a reasonable case that we don’t over-regulate, we under-enforce – and a law unenforced is no law at all.

You could easily say the same for failing to pay personal taxes. There’s a burgeoning industry devoted to helping scofflaws avoid penalties for “cents on the dollar”. Apparently, assisting tax deadbeats is more profitable than chasing ambulances. Some might argue tax issues wouldn’t be a problem if the taxes were lower, but these negotiated settlements allow defendants to avoid punishment. “If you do the crime, you have to do the time (except as negotiated by Nasty, Rude, Brutish, and Short, LLP).”

America is also stuck in a swamp of economic gelatinous goo. Just to spite each other we’re cutting off everything with a nose to pass a budget that takes regular taxpayers back to government circa 1865 and pumping up the wealthy’s wealth to a tax-free 2082. Yet, here are two almost untouched revenue streams. We could take a bite out of crime and the budget by simply enforcing the laws we have.

If BP befouls the Gulf of Mexico or Exxon paints Prudhoe Bay a wonderful, multicolored rainbow sheen, let’s not negotiate a settlement for pennies on the dollar while they reap some mighty fine profits. Profits at least partly derived from the other 98 cents on the dollar you and I paid to clean up the flaming dog poop they left on our porch. And bonus – maybe they’d think twice before doing the same stupid, illegal things they did to cause the accident in the first place – a twofer that helps modify bad behavior and raise revenue at the same time.

SWEET!

And since corporations have equal to (or greater than) the rights of flesh and blood, private citizens it’s only fair we stop negotiating sweetheart deals for the proletariat too. Paying taxes is a legal obligation, not an optional thing you do only when it pays for school vouchers or Muslim extermination programs. Saying you cheated or didn’t pay your taxes because “everyone does it” is no excuse. Remember Momma’s rule, “If everyone jumped off a bridge into a Chevron-managed tar pit, would you do it too?”

Of course, these actions won’t make all the bad economics go away, but it will make the sharing of pain fairer, without taxing the rich one more penny. It’s time to stop whining about what we owe and pay up.

If they do the crime, make them do the time.

Cross posted at The Omnipotent Poobah Speaks!

 

 

 

Common Corporate Sense

Half a world away, a tiny band of workers is trying to save their country from a nuclear meltdown. Closer to home, 11 people died and tens of thousands more lost their livelihoods when an oil rig caught fire in the Gulf of Mexico. Even closer, my local news carries daily accounts of how a gas line explosion that left 8 dead, 50 injured, and 40 families homeless could have been prevented.

All of these events have two things in common – they’re accidents. No one got out of bed one morning and said, “Gee, I think I’ll go out and kill someone today.”

The other is that with some common sense and honesty, all of them could have been prevented or at least their risk mitigated by prudent action – even when a tsunami rolls ashore.

Cutting Corners to Keep the Dividends
For years, all the companies involved told their governments and the public things were just peachy. “Safety is our top priority. We’re responsible citizens” as if by top priority you mean cutting corners so the dividends keep on rolling in. Their inability to follow the rules is ample proof.

It’s de rigueur these days to lament the crushing weight of regulations on business, a not wholly inaccurate charge. The popular refrain is that unnecessary regulations kill jobs and stymie innovation, progress, and plenty. However, fewer point out that a job isn’t much good if you, your family, or your neighbors end up in the morgue waiting to be identified by their dental work or the ash pile that is their DNA.

All of these events, like thousands before them, will generate new regulations. The throngs don’t take kindly to being blown up while watching American Idol and they’ll push their government to do something and do something now.

Score 1 for K St.
The gears of government will turn. There will be a cacophony over just how far the regulations should go. In the end, lobbyists will win out and the resulting regulations will, more often than not, benefit the companies and not control their stupidity. Score 1 for K St.

That doesn’t matter much anyway. Government won’t enforce the laws and will cut back on the agencies that are responsible for that because someone needs a tax cut. The companies will continue to have accidents and all will be right with the world until the next tiny band of workers is irradiated or killed for simply going to work at ones of those nifty jobs that were generated by the cutting of corners and ignoring of regulations – the same regulations that tried to legislate common sense into people who have none of their own.

In the end, these events aren’t about small government or big government. They aren’t about deregulation or over-regulation. They aren’t about the gulf between the haves and have nots. They are about the ultimate failure of holding companies responsible for what they do.

Just as CEO’s don’t get out of bed in the morning plotting on who to kill today, regulations don’t come about needlessly. They come about as the result of someone not doing something that should have.

Unfortunately, you can’t legislate common sense into a thick corporate skull. And, we’re all the worse off for it.

Cross posted at The Omnipotent Poobah Speaks!

 

 

Weekly Mulch: Obama's Responsibility for the BP Oil Spill

by Sarah Laskow, Media Consortium blogger

President Barack Obama is in Louisiana today, and BP is saying it will know in 48 hours if its attempt to “top kill” the leaking oil well in the Gulf Coast by pouring mud and cement over it has worked.

If the scramble to stop the leak has ended, the slog to clean up is just beginning. Thousands of fisherman are still out of work, as  ColorLines notes. But there are new jobs in Louisiana. This week Mother Jones’ Mac McClelland visited workers raking oil off a beach in Louisiana. One man, she writes, “can’t count how many times he’s raked this same spot in the 33 hours he’s worked it since Thursday, but one thing he’s sure of, he says, is that he’ll be standing right here tomorrow and the next day, too.”

Next moves

Although the regulatory infrastructure that was supposed to oversee companies like BP failed in this case, the administration is stepping up to ensure that the spill is stopped and the clean-up begun. “I take responsibility,” the president told reporters yesterday. “It is my job to make sure everything is done to shut this down.”

Kevin Drum calls this performance and the media affirmation that came after it “the kabuki of our times”—a show that only pretends that the government has the wherewithal to stop the leak without the resources of private industry.

“The president has to be In Charge whether he can actually do anything or not,” Drum writes. “What everyone should be asking is not what the feds are going to do about capping the leak, but what they’re going to do to make sure all the oil is cleaned up afterward.”

Going forward, the government needs to make sure that BP fulfills its clean-up promises. Without strong oversight, the company could slip out of paying its debts. That’s what happened last time an energy company left a lake of oil in American waters, as Riki Ott’s Not One Drop documents. The book “describes firsthand the impacts of oil companies’ broken promises when the Exxon Valdez spills most of its cargo and despoils thousands of miles of shore,” according to Chelsea Green.

BP’s behavior

BP has little incentive to clean up its operations or to take responsibility for the damage it has already incurred. As Care2 reports, another BP rig had to shut down this week when a power outage caused crude oil to spill from its storage tank to “secondary containment.” And on the Hill, Rep. Ed Markey (D-MA) charged that the company was deliberately low-balling its estimates of the Gulf spill’s size to avoid additional fines.

At The American Prospect, Monica Potts delves into the logic behind BP’s operations. Even when using one of the highest estimates of the spill’s volume—70,000 barrels a day, or more than 2 million barrels overall—she writes, “Americans burn about 10 times that, 21 million barrels, each day. It would only take us a couple of hours to use up everything in the Gulf. This is despite everything we know about how bad burning oil is. Given that, it’s not surprising that an oil company might rank our desire for oil more highly than our undemonstrated desire to avoid ecological disaster.”

Environmental obscenities

In Texas, activists tried this week to demonstrate to  BP that consumers do desire to avoid such disasters, AlterNet reports. A group of women traveled to the company’s headquarters and, wearing little more than sandwich boards, tried to expose “the naked truth about drill, baby, drill.”

AlterNet reports that Diane Wilson, who organized the protest “doesn’t take nudity lightly.” Growing up in rural Texas, “I was taught that flesh is sinful, it’s the devil,” she said. “So for me, using nudity to expose the truth about BP was WAY outside my comfort zone. But I realized that it’s the destruction of our ecosystem by corporate greed that’s obscene, not a woman’s body.”

Real responsibility

It’s important to realize that such destruction is not limited to this one catastrophe in the Gulf. As David Roberts writes at Grist:

“We don’t get back the land we destroy by mining. We don’t get back the species lost from deforestation and development. We don’t get back islands lost to rising seas. We don’t get back the coral lost to bleaching or the marine food chains lost to nitrogen runoff. Once we lose the climatic conditions in which our species evolved, we won’t get them back either.”

Fixing the system

If Obama is ready to take responsibility for the oil spill, he might want to focus on strengthening the government regulators who oversee these dangerous industry. The lack of oversight from the Minerals Management Service—which was rotting from the inside-out long before Obama came into office, TPM reports—played a huge role in this spill. Across the country, the government bodies that are supposed to be guarding the environment have stepped away from that responsibility.

Consider, for instance, Forrest Whittaker’s report in The Texas Observer about his state’s environmental oversight agency. “In decision after decision, the Texas agency that’s supposed to protect the public and the environment has sided with polluters,” Whittaker writes.

President Obama may not be able to fix Texas’ problems, but he can provide leadership by correctly regulating corporations that pollute. In that way, the president can take responsibility not just for cleaning up this spill, but for preventing the next one.

This post features links to the best independent, progressive reporting about the environment by members of The Media Consortium. It is free to reprint. Visit the Mulch for a complete list of articles on environmental issues, or follow us on Twitter. And for the best progressive reporting on critical economy, health care and immigration issues, check out The Audit, The Pulse, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

 

Weekly Mulch: Slick of Oil Industry Cash Gummed up Regulatory Works

by Sarah Laskow, Media Consortium blogger

The Deepwater Horizon oil spill  in the Gulf of Mexico is worse than anyone thought, and the crisis will likely go on for months. British Petroleum (BP) is tripping over itself to say it’ll cover the costs of the clean-up, yet before the spill, the company spent its time and money pushing back against government regulation and safety measures.

Care2 reports, “A piece of machinery costing .004% of BP’s 2009 profits might have prevented the Gulf of Mexico oil spill that is currently threatening the U.S. gulf coast. An acoustic valve designed as a final failsafe to prevent oil spills costs $500,000; the Wall Street Journal writes that the valve, while not proven effective, is required on oil rigs in Norway and Brazil, but not in the U.S.”

Oil is drifting towards the southeastern coastline as clean-up crews and politicians scramble to respond. BP has not staunched the leaks that are pouring more than 200,000 gallons of oil into the Gulf of Mexico each day.

Beach communities in Louisiana, Mississippi, Alabama and Florida are bracing for the oil’s arrival and waiting to see what the damage to their businesses and their natural resources will be. And in Washington, members of Congress, who just a couple of weeks ago were willing to compromise on off-shore drilling expansion are rallying against the practice.

As Sen. Joe Lieberman (I-CT) said this week, “accidents happen,” but in this case, it’s becoming clear that the oil industry and government regulators did not do all they could to minimize the risks of a spill.

The slick

Over the past week, reporters trying to describe the size of the spill have compared it to Jamaica or Puerto Rico. Public News Service talked to Steve Bousquet, Tallahassee bureau chief for the St. Petersburg Times, who saw the slick in flight.

“It’s really a horrifying thing to see because of the magnitude of it,” Bousquet said. “They use these chemicals to break up the oil and it takes on a kind of rust-colored look to it. And we saw these long streaks, miles and miles long of oil, and just oil as far as the eye can see.”

The visual stretch of the spill hardly represents the scope of its impact, either. As Dr. Riki Ott, a Chelsea Green author, explained to CNN:

“This is Louisiana sweet crude, and it’s got a lot of what’s called “light ends,” which evaporate very quickly into the air and also dissolve very readily into the water column. So what you see on the surface is like the tip of the iceberg…Imagine a big cumulus cloud of dissolved and dispersed oil under the slick, wherever it is. And that cloud is extremely toxic to everything in the water column — shellfish, eggs and embryos — so shrimp eggs and young life forms that are in the water column, young fish.”

According to Dr. Ott, the extent of the damage won’t be clear for a few years. Oyster fisherman, for instance, would usually be seeding oysters now, as the crops take two years to mature. That work needs to be done within the next few months to avoid economic losses two years in the future, but the precautionary measures shutting off access to waters east of the Mississippi are keeping that from happening.

Oiling the machine

It’s no accident that oil interests work under looser rules. As Lindsay Beyerstein reported last week for Working In These Times, BP wrote to the U.S. Minerals Management Service (MMS) saying that tighter regulation of the oil industry was unnecessary. MMS doesn’t have a stellar history of oversight, and if you’re not familiar with its sordid past, TPM’s Justin Elliott put together a tour through the agency’s history with sex and drugs.

The industry hasn’t just been selling snake oil to MMS, though. Oil companies have been greasing the palms of politicians with campaign donations for years. Democracy Now! spoke to Antonia Juhasz, author of The Tyranny of Oil, about the oil industry’s influence.

“The entire oil industry, will continue to use its vast wealth – unequaled by any global industry – to escape regulation, restriction, oversight and enforcement,” Juhasz says. “BP, now the source of the last two great deadly US oil industry explosions, has shown us that this simply cannot be permitted.”

The new politics of climate

To see the oil industry’s influence in action, look no further than the ongoing work on the Senate’s climate legislation. Two weeks ago, before the spill, Sen. John Kerry (D-MA) announced that the oil industry would back the tri-partisan legislation that he was working on with Sen. Lieberman and Sen. Lindsey Graham (R-SC). Since then, Graham has stepped away from the bill, and off-shore drilling, a keystone of the negotiations over the legislation, has become much less politically palatable.

But this Wednesday, Kerry had nothing but nice things to say about the oil industry, as Kate Sheppard reports at Mother Jones.

“While he acknowledged that “we can’t drill and burn our way out of danger,” Kerry also spoke highly of the oil companies backing the draft legislation, which was supposed to be released last week,” Sheppard writes. “BP, operator of the rig currently spewing hundreds of thousands of gallons of oil into the Gulf of Mexico, was expected to be among the supporters.”

“Ironically we’ve been working very closely with some of these oil companies in the last months,” Kerry said. “I took them in good faith. They have worked hard with us to find a solution that meets all of our needs.”

Kerry still seems confident that the climate and energy bill will move forward, but, Steve Benen writes at the Washington Monthly, that’s things are far from certain.

“The legislation was predicated on something of a grand bargain — the left would get cap-and-trade and investment in renewables; the right would get nuclear plants and offshore drilling,” Benen explains. “But in the wake of the catastrophe in the Gulf, there is no deal. Key Dems now insist drilling be taken off the table, while Republicans and Democratic industry allies (Louisiana’s Mary Landrieu, for example) now insist they won’t even consider a bill unless it includes plenty of drilling.”

While the White House is saying that the oil spill may spur interest in and support for clean energy legislation from Congress, that hasn’t happened yet. Congressional leaders might have to wait for the noise from the Hill to die down before they can re-start serious discussions about how to pass a climate bill.

This post features links to the best independent, progressive reporting about the environment by members of The Media Consortium. It is free to reprint. Visit the Mulch for a complete list of articles on environmental issues, or follow us on Twitter. And for the best progressive reporting on critical economy, health care and immigration issues, check out The Audit, The Pulse, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

 

Organic farming is carbon sequestration we can believe in

The phrase "carbon sequestration" is often used in connection with so-called "clean coal" technology that doesn't exist. Scientific debate over the best methods of carbon capture and storage tends to weigh the costs and benefits of various high-tech solutions to the problem.

But Tim LaSalle, CEO of the non-profit Rodale Institute, reminds us in a guest column for the Des Moines Register that an effective means of sequestering carbon in our soil already exists:

By using organic agricultural methods and eliminating petroleum-based fertilizers and toxic chemical pest-and-weed control, we build - rather than destroy - the biology of our soil. While improving the health of the soil we also enhance its ability to diminish the effects of flooding, as just one example. In some laboratory trials, organically farmed soils have provided 850 percent less runoff than conventional, chemically fertilized soils. This is real flood prevention, not sandbag bandages for life-threatening emergencies.

When the soil is nurtured through organic methods, it allows plants to naturally pull so much carbon dioxide from the air and store it in the soil that global warming can actually be reversed. Farms using conventional, chemical fertilizer release soil carbon into the atmosphere. Switching to organic methods turns a major global-warming contributor into the single largest remedy of the climate crisis, while eliminating toxic farm chemical drainage into our streams, rivers and aquifers.

Using such methods, we would be sequestering from 25 percent to well over 100 percent of our carbon-dioxide emissions. Microscopic life forms in the soil hold carbon in the soil for up to 100 years. This is much more efficient than inserting foreign genes. Healthy soil already does that at such remarkable levels it usually can eliminate crop disasters, which means greater food security for all nations. And the beauty is, investing in soils is not patentable, enriching just some, but instead is free to all.

Where has this science, this solution, been hiding? It has been intentionally buried under the weight of special interests - that are selling chemicals into our farming system, lobbying Congress, embedding employees in government agencies and heavily funding agricultural university research.

A few years ago, the Rodale Institute published a detailed report on how Organic farming combats global warming. Click that link for more facts and figures.

For more on how groups promoting industrial agriculture lobby Congress, see this Open Secrets report and this piece from the Green Guide on The New Food Pyramid: How Corporations Squash Regulation.

Expanding organic farming and reducing the amount of chemicals used on conventional farms would have other environmental advantages as well, most obviously an improvement in water quality both in farming states and downstream. Last week the National Academcy of Sciences released findings from the latest study proving that chemicals applied to farms are a major contributor to the "dead zone" in the Gulf of Mexico:

The study, conducted at the request of the Environmental Protection Agency, recommends setting pollution reduction targets for the watersheds, or drainage areas, that are the largest sources of the pollution that flows down the Mississippi River to the gulf.

The U.S. Department of Agriculture was urged to help fund a series of pilot projects to test how changes in farming practices and land use can reduce the runoff of nitrogen and phosphorus. The report, written by a panel of scientists, did not say how much money would be needed. Agricultural experts and congressional aides said it wasn't clear whether there was enough money in federal conservation programs to fund the necessary projects.
[...]

The government has been debating for years about how to address the oxygen-depleted dead zone, or hypoxia, in the gulf. The dead zone reached 8,000 square miles this year, the second-largest area recorded since mapping began in the 1980s.
[...]

Agricultural groups don't want mandatory controls put on farms.

However, a scientific advisory board of the EPA has recommended reducing the amount of nitrogen and phosphorus flowing to the gulf by 45 percent. More than 75 percent of those two pollutants originates in nine states, including Iowa, according to the U.S. Geological Survey.

Here's a link to more detailed findings about how agricultural states contribute to the dead zone in the Gulf of Mexico.

Organic farming is also good for rural economic development because it employs more people. I'll write more soon on the economic benefits of implementing other sustainable agriculture policies.

There's more...

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