May, 12 2015, 02:00pm EDT
Groups Add to Evidence in "Whistleblower" Tax Fraud Claim Against ALEC
Many Corporate Members Admit Joining ALEC to Advance Legislation Benefitting Them, Despite Group's Claim That It Doesn't Lobby
WASHINGTON
Common Cause and the Center for Media and Democracy sent federal authorities new evidence today that the American Legislative Exchange Council (ALEC) is falsely passing itself off as a tax-exempt charity and effectively using taxpayer dollars to subsidize its lobbying on behalf of private interests.
Common Cause filed a supplement to its three-year-old tax whistleblower complaint against ALEC, and the two groups sent a joint letter to Internal Revenue Service Commissioner John Koskinen demanding an investigation, collection of fines and back taxes, and the revocation of ALEC's status as a tax-exempt charity.
"Our whistleblower complaint, which includes statements, letters and correspondence from ALEC member companies and previously undisclosed public records of ALEC's lobbying activities, demonstrates beyond doubt that ALEC is - and always has been - a lobby, not a charity," said Common Cause President Miles Rapoport.
The filing comes on the heels of ALEC's threat in March to file suit against Common Cause and two other groups that have criticized ALEC's positions on climate change and telecom issues. "This whistleblower supplement is unrelated to our dispute with ALEC on climate issues," Rapoport said, "but I hope that with today's filing ALEC gets the message that we will not be deterred from working to expose its activities."
The new trove of documents includes statements by 20 corporations that admit that they joined and maintained membership in ALEC to influence legislation and gain access to lawmakers. The corporate admissions included in the complaint are from Yelp, Pfizer, AT&T, Verizon, Comcast, Honeywell, Yahoo, eBay, Eli Lilly, Duke Energy, Altria, American Electric Power, Anheuser-Busch, BP, Chevron, Cox Communications, CSX Corporation, ExxonMobil, Overstock, and Peabody Energy. Several of those companies no longer are part of ALEC.
The new filing also includes the recent finding of the Minnesota Campaign Finance and Public Disclosure Board that "ALEC's primary purpose is the passage of state legislation in the various states and that all of its wide-ranging activities are in support of this primary purpose."
ALEC continues to deny that it is engaged in lobbying, submitting annual reports to the IRS with "$0" filled in on a line designated for the amount it spends on lobbying.
"Our powerful new evidence demonstrates that ALEC continues to operate as a 'corporate lobbying group masquerading as a charity,'" said Lisa Graves, Executive Director of the Center for Media and Democracy, publisher of PRWatch.org and ALECexposed.org. "Clearly, in their own words, many of the corporations that fund ALEC use it as a vehicle for their lobbying agenda."
"ALEC is a pay-to-play operation where corporate lobbyists pay for a seat and a vote as equals with legislators on model bills to benefit the legislative agenda of those very same special interests," Graves added. "Though ALEC claims that it is now a legislator-driven, bottom-up enterprise, our evidence shows that the corporations underwriting ALEC continue to drive its legislative priorities and do so to benefit their bottom lines. ALEC operates for the private gain of its corporate funders like a trade group, offering them one-stop shopping for lawmakers nationwide."
In response to the groups' past exposure of its misreporting and illegal schemes, ALEC formed a lobbying arm, the Jeffersonian Project, in 2013; it also made some changes on its tax forms, and now admits responsibility for a "scholarship" fund used to finance legislator travel.
"ALEC tried to outsource some of its more obvious lobbying to the Jeffersonian Project, an entity that ALEC controls," said Eric Havian, an attorney representing Common Cause on the submission. "But hiding its lobbying behind a different corporate mask doesn't absolve ALEC. ALEC still manages the most critical lobbying activities, such as hosting junkets to bring legislators and lobbyists together at posh resorts to strategize about how to pass favored legislation."
Today's submission to the IRS is the third challenge Common Cause and CMD have made against ALEC for masquerading as a charity at taxpayer expense.
"It has been almost exactly three years since we uncovered ALEC's tax misrepresentation and first reported it to the IRS," Rapoport said. "Three years later, the IRS Whistleblower Office has not taken action, despite its legal mandate to investigate complaints. Meanwhile, ALEC continues its secretive lobbying activities that often benefit the corporations' bottom line."
The growing scandal surrounding ALEC's tax status, secretive lobbying activities, and extremist agenda has led to an exodus of more than 100 corporations since 2011.
"The work of a robust national coalition has pushed more than 100 companies to dump ALEC," Graves said. "Other companies and elected officials should seriously reconsider sticking with a group that has misled and continues to mislead the public and the IRS about its true purpose."
Click here for a fact sheet on Common Cause's whistleblower complaint.
Common Cause is a nonpartisan, grassroots organization dedicated to upholding the core values of American democracy. We work to create open, honest, and accountable government that serves the public interest; promote equal rights, opportunity, and representation for all; and empower all people to make their voices heard in the political process.
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11,000% Return: Trump's $1 Billion Offer Could Yield $110 Billion Windfall for Big Oil
A new analysis explores the possible payout if fossil fuel companies—who have already shown a willingness to put a price tag on the value of planet Earth—agree to the presumptive Republican nominee's election year "quid pro quo" deal.
May 16, 2024
A new analysis reveals that the alleged $1 billion election year "quid pro quo" offer that presumptive Republican nominee Donald Trump made to executives of major oil company's could, if they agreed to the deal, bank them a handsome profit.
According to the study by Friends of the Earth Action, first reported by The Guardian on Thursday, the "remarkably blunt and transactional" offer from Trump—in which $1 billion in campaign funding put together by the nation's major oil companies would be repaid upon his election with massive deregulation of the oil and gas sector as well as tax relief for the industry—would yield a major windfall for those same corporations, including an estimated $110 billion from the tax breaks alone.
As The Guardian reports:
Biden wants to eliminate the tax breaks, which include long-standing incentives to help drill for oil and gas, with a recent White House budget proposal targeting $35bn in domestic subsidies and $75bn in overseas fossil fuel income.
"Big oil executivess are sweating in their seats at the thought of losing $110bn in special tax loopholes under Biden in 2025," said Lukas Ross, a campaigner at Friends of the Earth Action, which conducted the analysis.
Ross said the tax breaks are worth nearly 11,000% more than the amount Trump allegedly asked the executives for in donations. "If Trump promises to protect polluter handouts during tax negotiations, then his $1bn shakedown is a cheap insurance policy for the industry" he said.
Republicans in Congress last year confirmed that if Trump wins back the White House and the GOP resume control of both chambers, they will move aggressively to make the Republican's 2017 tax cuts, which largely benefited the wealthy and corporations, permanent. As some of the most profitable companies in the U.S., oil and gas companies stand to benefit greatly from that outcome.
In Florida last month, not long before his meeting with oil executives, Trump told a different crowd of "rich as hell" supporters gathered at Mar-a-Lago: "We're gonna give you tax cuts, we're gonna pay of our debt." The problem with the second half of that claim is presented in a recent CBO report which found that another wave of tax cuts like those passed by the GOP in 2017 would skyrocket the national debt by an estimated $4.6 trillion over the next ten years.
Earlier this week, House Democrats, led by Oversight Committee Ranking Member Rep. Jamie Raskin (D-Md.), launched a probe into the "quid pro quo" allegations between Trump and Big Oil, including letters to company executives believed to have been in attendance.
The blatant nature of Trump's corrupt intent, according to some political observers, is an opportunity that Democrats and champions of climate action and other progressive causes should not miss.
Writing about the circumstances in The New Yorker on Wednesday, journalist and veteran climate activist Bill McKibben argued that the stakes of this election are made plain in what Trump has offered the fossil fuel industry in exchange for its financial backing.
"Trump's reported billion-dollar offer to fossil-fuel executives shows that this is the key year to save the planet," McKibben writes.
"Given four years to finish the implementation of the Inflation Reduction Act, a second-term Biden Administration might finally be able to break the hold of fossil fuel’s political influence," his essay explains. "Another term of Trump, however—and with all that it means for undercutting global efforts at climate regulation, as well—offers an entirely plausible and entirely opposite outcome: climate chaos combined with continued fossil-fuel dependence."
What's true, according to McKibben, is that the fossil fuel industry "might well decide that defeating Biden in November is worth a lot of money." Citing recent profits by Chevron of $21 billion and ExxonMobil's $36 billion, he said the oil giants will "definitely give Trump something, and the return on investment on that donation—if successful—would be better than the luckiest well they ever hit."
The new analysis by Friends of the Earth Action shows that McKibben—once again—probably has the math right.
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'Jail Time Should Seriously Be Considered,' Pocan Says of Big Oil Price Fixing
"I would recommend 'Orange Is the New Black,'" said the Wisconsin Democrat. "We're feeling it at the pumps and clearly this kind of behavior, we know, isn't isolated."
May 15, 2024
As Federal Trade Commission Chair Lina Khan appeared before a U.S. House of Representatives subcommittee on Wednesday, Congressman Mark Pocan highlighted recent FTC action against fossil fuel industry price fixing and urged criminal consequences.
"I just did a little napkin math," Pocan (D-Wis.) said. If collusion led to a $0.40-0.60 increase in the price for a gallon of gas for a vehicle, "for the average person filling their tank, that's $8 or $10 a week," he explained. "That's $500 a year of added cost."
If half of the residents in Pocan's congressional district have a car, "that's $175 million a year," he said. If that figure is applied across all 435 districts, it translates to billions of dollars "that we're being gouged because of someone like this who's trying to price collude," he continued, referring to Scott Sheffield, the founder and longtime CEO of Pioneer Natural Resources.
The FTC earlier this month barred Sheffield from serving on the board of directors of or as an adviser to ExxonMobil, which just acquired Pioneer, due to his alleged collusion with the representatives of the Organization of Petroleum Exporting Countries (OPEC) and OPEC+.
While welcoming the FTC's move, Pocan noted that "if you commit theft, the average sentence... in the United States is 23 months" and the multibillion-dollar profit that fossil fuel giants make from price gouging "is more than grand larceny theft."
🚨BIG: @RepMarkPocan applauds @FTC for revealing an oil price-fixing scheme that cost Americans billions from 2021-2023.
"I just did a little napkin math ... That's $175 million a year—just for people in my district—that we're being gouged." pic.twitter.com/maM8Uk6usY
— American Economic Liberties Project (@econliberties) May 15, 2024
"What else can we do to these oil companies that are ripping us off?" the congressman asked Khan, an appointee of President Joe Biden with "a pro-working families record."
The FTC chair responded that "price fixing and output reduction in a coordinated way can be criminal violations of the antitrust laws. As enforcers we can't specifically speak to what we're referring and what we're not, but as a general matter, it's been a priority of mine to make sure we are referring more criminal candidates to the Justice Department, because we need to make sure companies and executives aren't just treating fines as a cost of doing business and that they take seriously the rule of law."
Referencing a television show that takes place in federal prison, Pocan told her that "I would recommend 'Orange Is the New Black,' if we need to, to make a point. It would be helpful because we're feeling it at the pumps and clearly this kind of behavior, we know, isn't isolated."
Sharing a video of his remarks on social media, Pocan declared: "Unacceptable! A slap on the wrist isn't enough. I think jail time should seriously be considered."
As the American Economic Liberties Project (AELP) pointed out, Pocan wasn't the only lawmaker to reference the recent price fixing revelations during the Wednesday hearing; he was joined by Reps. Matt Cartwright (D-Pa.) and Rosa DeLauro (D-Conn.).
"Finally it's being noticed!" said AELP's Matt Stoller, who has written about the alleged collusion. "Dem House members get it!"
Stoller wasn't alone in welcoming the discussion in Congress—after days of limited attention on the issue among national figures.
"This illegal oil corporation price fixing conspiracy cost Americans as much as $2,100. Per year," saidMore Perfect Union, sharing a video of Pocan and citingThe American Prospect.
The Ohio AFL-CIO stressed: "Greedflation is not inflation. Pass it on."
Noting that Sheffield is getting a $68 million "golden parachute on his way out," former U.S. Labor Secretary Robert Reich argued Wednesday: "That money (and more) should be refunded to the American people. Not sent to his bank account."
Groundwork Collaborative executive director Lindsay Owens similarly said last week that "the Department of Justice should criminally prosecute Scott Sheffield and Congress should tax back the industry's windfall profits and issue every American a refund."
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1st Jewish Biden Appointee to Resign Over Gaza Quits on Nakba Day
"I can no longer in good conscience continue to represent this administration amid President Biden's disastrous, continued support for Israel's genocide in Gaza," Interior assistant Lily Greenberg Call wrote.
May 15, 2024
Lily Greenberg Call, a special assistant to the chief of staff in the Department of the Interior, became the first Jewish political appointee to resign her post in protest of U.S. President Joe Biden's support for Israel's genocide in Gaza.
Call announced her resignation on Wednesday, which is also the 76th anniversary of the Nakba—or the expulsion of the majority of Palestinians from their homes in 1948 as part of the process of creating the current state of Israel.
"Nakba and Shoah, the Hebrew word for Holocaust, mean the same thing: catastrophe," Call wrote in her letter. "I reject the premise that one people's salvation must come at another's destruction. I am committed to creating a world where this does not happen—and this cannot be done from within the Biden administration."
"What Israel is doing to people in Gaza and to Palestinians across the land is incredibly un-Jewish to me and such a disgrace to our ancestors."
In her letter, addressed to Interior Secretary Deb Haaland, Call said that she had worked for both Vice President Kamala Harris' presidential campaign in 2019 and Biden's in 2020 and was "thrilled" to accept a position at DOI.
"I joined the Biden administration because I believe in fighting for a better America, for a future where Americans can thrive: one with economic prosperity, a healthy planet, and equal rights for all people," she wrote.
However, that changed with Biden's financial, military, and political backing of Israel's war on Gaza.
"I can no longer in good conscience continue to represent this administration amid President Biden's disastrous, continued support for Israel's genocide in Gaza," she wrote.
Call spoke of her Jewish immigrant heritage and how her family story—moving from grandparents without college degrees to a granddaughter with a presidential appointment—represented the American dream.
"And yet, I have asked myself many times over the last eight months: What is the point of having power if you will not use it to stop crimes against humanity?" she wrote.
"President Biden has the blood of innocent people on his hands."
Call also spoke of how her Jewish faith and lifelong experience in the Jewish community informed her decision.
"What I have learned from my Jewish tradition is that every life is precious. That we are obligated to stand up for those facing violence and oppression, and to question authority in the face of injustice," she said.
In a separate interview with The Associated Press, she criticized Biden for "making Jews the face of the American war machine," adding that this was "deeply wrong."
For example, the AP wrote:
Call pointed to comments by Biden, including at a White House Hanukkah event where he said, "Were there no Israel, there wouldn't be a Jew in the world who was safe" and at an event at Washington's Holocaust Memorial last week in which he said the October 7 Hamas-led attacks that triggered the war were driven by an "ancient desire to wipe out the Jewish people."
Call's own views on Israel have altered dramatically in the last few years. As The Washington Post reported:
Greenberg Call, who graduated from the University of California at Berkeley in 2019, was president of Bears for Israel, an affiliate group of the American Israel Public Affairs Committee (AIPAC), and said she grew up going to student events hosted by the group. In a piece for Teen Vogue two years ago, she said she began to question AIPAC and its mission of ensuring unconditional American support for Israel as she got to know more Palestinians and after AIPAC endorsed Republican candidates who supported Donald Trump's false claims that the 2020 election was stolen.
Call told the Post that it had been a struggle to make the decision she did because of her deep roots in the Jewish community, but that Jewish values were ultimately what led her to go through with it.
"What Israel is doing to people in Gaza and to Palestinians across the land is incredibly un-Jewish to me and such a disgrace to our ancestors," she said.
Call wrote in the letter that while she knew people who lost family in Hamas' October 7 attack on Israel that killed around 1,100 people and was "terrified" by rising antisemitism, she was "certain that the answer to this is not to collectively punish millions of innocent Palestinians through displacement, famine, and ethnic cleansing."
Call outlined the horrors of Israel's war on Gaza: more than 35,000 people and 15,000 children killed, attacks on hospitals, mass graves, the destruction of every university in Gaza, and the targeting of journalists.
"These are all violations of international law, none of which would be possible without American weapons, and none of which have been condemned by President Biden," she wrote.
She continued:
The president has the power to call for a lasting cease-fire, to stop sending weapons to Israel, and to condition aid. The United States has used nearly no leverage throughout the last eight months to hold Israel accountable. Quite the opposite, we have enabled and legitimized Israel's actions with vetoes of United Nations resolutions designed to hold Israel accountable. President Biden has the blood of innocent people on his hands.
Call's resignation comes one day after Biden announced another $1 billion weapons shipment to Israel, even as it continues an assault on Gaza's southernmost city of Rafah. Biden had previously called a ground offensive on Rafah a "red line" that Israel should not cross, yet critics point out that Israel's current operations in Rafah should certainly qualify.
"There's been many moments in the last eight months that I have thought about it," Call toldMiddle East Eye of her decision to resign, "and I think everything that has happened in the last few weeks in particular, made me feel like the time is right."
Her letter also comes days after polling indicated that around 13% of 2020 Biden voters in six key swing states would not vote for him in 2024 because of his Gaza policy.
"I think the president has to know that there are people in his administration who think this is disastrous," Call told AP. "Not just for Palestinians, for Israelis, for Jews, for Americans, for his election prospects."
Call is at least the fifth Biden official to resign over his Gaza policy and the second political appointee, according to AP. While she is the first known Jewish Biden staffer to resign, Army Maj. Harrison Mann also cited his Jewish background when announcing his resignation decision on Monday.
"As the descendant of European Jews, I was raised in a particularly unforgiving moral environment when it came to the topic of bearing responsibility for ethnic cleansing—my grandfather refused to ever purchase products manufactured in Germany—where the paramount importance of 'never again' and the inadequacy of 'just following orders' were oft repeated," he wrote.
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