January, 15 2016, 12:15pm EDT
For Immediate Release
Contact:
Michelle Surka, 617-747-4386
U.S. Public Interest Research Group: msurka@pirg.org
Goldman Sachs Sees Silver Lining in $5 Billion Mortgage Settlement
Bank can claim $936.25 million tax windfall for deal
WASHINGTON
Yesterday's agreement in principle struck between Goldman Sachs and federal regulators to settle allegations of the bank's misconduct in connection with the mortgage crisis includes a $936.25 million tax windfall for the bank.
"Goldman is rightfully paying the price for its alleged role in marketing and selling soured mortgage securities, but the price should come from the bank's bottom line--not the taxpayer's," said Michelle Surka, program associate with U.S. Public Interest Research Group.
The proposed deal includes a substantial $2.385 civil monetary penalty, an $875 million cash payment, and $1.8 billion in consumer relief. The civil monetary penalty is non-deductible as per the tax code, but the remaining $2.675 billion is entirely tax deductible for the bank as an ordinary business expense.
By law, fines and penalties cannot be treated as regular business expenses, and therefore are not tax deductible. The cash payment and consumer relief portions of the payment, however, are not specifically designated as penalties and can therefore be deducted from Goldman's taxes. The bank reported that the settlement would reduce its earnings in this period by roughly $1.5 billion on an after-tax basis.
The foregone tax revenue must ultimately be paid for by ordinary taxpayers in the form of higher individual taxes, program cuts, and more national debt. Government agencies could prevent this type of tax write off for corporations by explicitly denying them even for consumer relief payments.
The bipartisan Truth in Settlements Act (S.1109) was unanimously voted through Senate in September. The legislation, which has a bipartisan counterpart in the House, would require federal agencies to disclose the tax deductibility of future settlements and would require corporations to disclose when they deduct those settlements. Such measures would protect taxpayers and allow for greater public scrutiny of settlement agreements.
You can also read U.S. PIRG's reports on tax write-offs in settlements here: "Settling for a Lack of Accountability"
U.S. PIRG, the federation of state Public Interest Research Groups (PIRGs), stands up to powerful special interests on behalf of the American public, working to win concrete results for our health and our well-being. With a strong network of researchers, advocates, organizers and students in state capitols across the country, we take on the special interests on issues, such as product safety,political corruption, prescription drugs and voting rights,where these interests stand in the way of reform and progress.
LATEST NEWS
Pro-Genocide Mob Attacks Nonviolent Encampment, Beats Students at UCLA
Encampment organizers called the assault "nothing less than a horrifying, despicable act of terror."
May 01, 2024
A pro-Israel mob violently attacked a Gaza solidarity encampment at the University of California, Los Angeles overnight Tuesday, hurling fireworks at the structure and beating demonstrators as campus security and city police stood by.
Los Angeles Times higher education journalist Teresa Watanabe reported that members of the pro-Israel mob used explicitly genocidal language as they ripped down encampment barriers, yelling, "Second Nakba!"—a reference to the forced displacement of hundreds of thousands of Palestinians from their homes in 1948.
Pro-Israel counterprotestors started tearing down @UCLA encampment barriers and screamed "Second nakba!" referring to the mass displacement & dispossession of Palestinians during the 1948 Arab-Israeli war. Per @latimes @safinazzal on the scene with another video: pic.twitter.com/zSplnd1bYO
— Teresa Watanabe (@TeresaWatanabe) May 1, 2024
At one point, a student stepped out from behind the encampment walls to confront the mob, which quickly swarmed the student and brutally attacked him while he was on the ground attempting to shield his face from the blows.
200+ pro-Israel counterprotestors are attacking the @UCLA pro-Palestinian encampment. They started beating on one student and stomped another under a plywood board per @latimes @safinazzal on the scene. Where is UCLA security? pic.twitter.com/zjYNFWSK7r
— Teresa Watanabe (@TeresaWatanabe) May 1, 2024
Organizers of the UCLA encampment, which—like others on campuses across the U.S.—is aimed at pressuring the university to divest from companies profiting off Israel's war on Gaza, said in a statement that the attack was "nothing less than a horrifying, despicable act of terror" and condemned the university for doing nothing to keep students safe.
UCLA administrators have deemed the encampment "unlawful" and threatened participants with suspension or expulsion.
"For over seven hours, Zionist aggressors hurled gas canisters, sprayed pepper spray, and threw fireworks and bricks into our encampment," organizers said. "They broke our barriers repeatedly, clearly in an attempt to kill our community."
They added that campus security officers left the scene of the violence "within minutes" and "external security the university hired for 'backup' watched, filmed, and laughed on the side as the immediate danger inflicted upon us escalated."
"Law enforcement simply stood at the edge of the lawn and refused to budge as we screamed for their help," the statement continued. "The only means of protection we had was each other. We keep each other safe."
The passivity of campus security and Los Angeles police in the face of violence from the pro-Israel mob at UCLA drew comparisons to the occupied West Bank, where Palestinians are regularly harassed and attacked by settlers as Israeli soldiers watch—and often participate.
The Daily Bruin, which had student reporters on the scene, reported that "security and UCPD both retreated as pro-Israel counter-protesters and other groups attacked protesters in the encampment."
"There has been a minimal police presence on campus despite multiple events of counter-protesters antagonizing the encampment since Thursday," the newspaper added. "UCPD Chief of Police John Thomas said to The Daily Bruin that the force only had around five to six officers on duty. Officers came under attack while trying to help an injured person, and so they left."
The inaction of UCLA security and local police contrasts sharply with the vicious crackdowns on nonviolent pro-Palestinian demonstrators at universities across the country, including Columbia University in New York City late Tuesday.
Early Wednesday, The Daily Bruin published an editorial denouncing Chancellor Gene Block for doing so little "to ensure the protection of students who exercise their rights."
"The world is watching. As helicopters fly over Royce Hall, we have a question. Will someone have to die on our campus tonight for you to intervene, Gene Block?" the editorial asks. "The blood would be on your hands."
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'All Because Columbia Refuses to Divest': Police Storm Campus, Violently Arrest Dozens
"The U.S. government and institutions like Columbia are showing that they would rather brutalize students than divest from apartheid and genocide."
May 01, 2024
Hundreds of New York City police officers descended on Columbia University Tuesday night to arrest dozens of pro-Palestinian student protesters and dismantle a Gaza solidarity encampment that inspired campus protests across the United States, with demonstrators calling on their schools to divest from companies profiting off Israel's devastating war.
Police, some wearing riot gear, entered Columbia's campus at the request of the university's president, Minouche Shafik, who authorized the NYPD to "clear all individuals from Hamilton Hall and all campus encampments."
Video footage shows officers entering a campus building that students occupied hours earlier, renaming it "Hind's Hall" after a 6-year-old girl who was killed by Israeli forces earlier this year. The Columbia Daily Spectator, the university's student newspaper, reported that "as they entered the building, officers threw down the metal and wooden tables barricading the doors and shattered the glass on the leftmost doors of Hamilton to enter with shields in hand."
"Several officers drew their guns, according to footage posted by NYPD Deputy Commissioner of Operations Kaz Daughtry," the newspaper added. "At around 9:37 pm, officers led dozens of protesters out the entrance of Hamilton. The protesters' hands were zip-tied behind their backs. The arrested individuals chanted, 'Free, free Palestine' as they were led away from the building."
Footage of NYPD tactical teams raiding and clearing Columbia University. pic.twitter.com/roUe9Dp7Vb
— Moshe Schwartz (@YWNReporter) May 1, 2024
Other footage shows NYPD officers forcing their way through students who locked arms in front of the occupied campus building. One cop is seen kneeing a student on the ground.
Students reported that police used tear gas, which is banned in war, on demonstrators.
"Tonight, my university called in a militarized police force—armed in riot gear, with guns drawn, deploying weapons banned under international law—to attack teenagers," Lea Salim, a student member of Jewish Voice for Peace-Columbia/Barnard, said in a statement. "All because Columbia refuses to divest from the Israeli military and its genocidal campaign on the people of Gaza."
NYPD just raided the Columbia campus and broken into the Hamilton building making dozens of violent arrests against students both outside and those occupying inside. pic.twitter.com/7wMp3EctZF
— Gerard (@GerardDalbon) May 1, 2024
As police set up barricades around the perimeter of the campus, onlookers gathered and chanted, "Let the students go!" in solidarity with the arrested demonstrators.
Rep. Jamaal Bowman (D-N.Y.) said he was "outraged" by the police presence at both Columbia and the City College of New York, writing on social media that the "militarization of college campuses, extensive police presence, and arrest of hundreds of students are in direct opposition to the role of education as a cornerstone of our democracy."
"I call upon the Columbia administration to stop this dangerous escalation before it leads to further harm," Bowman added, "and allow the faculty back onto campus so that all parties can collectively come to a solution that centers humanity over hate."
“Let the students go.”
Crowds gather outside the police barricade surrounding Columbia University to demonstrate solidarity with student protesters.
Police have arrested multiple pro-Palestinian demonstrators after entering the campus. pic.twitter.com/0Ut6HHPWhB
— Middle East Eye (@MiddleEastEye) May 1, 2024
In a letter to the New York City Police Department on Tuesday, Shafik—who is facing mounting calls to resign—requested that officers maintain a presence on Columbia's campus "through at least May 17, 2024 to maintain order and ensure encampments are not reestablished."
The police crackdown on Columbia students is part of a broader wave of repression against campus protests that have emerged across the country in recent weeks as Israel's assault on and forced starvation of Gaza civilians continues with no end in sight.
Police actions, approved by the leaders of some universities and cheered on by right-wing government officials, have drawn international rebukes. In a statement Tuesday, United Nations High Commissioner for Human Rights Volker Türk said he is "concerned that some of law enforcement actions across a series of universities appear disproportionate in their impacts."
"U.S. universities have a strong, historic tradition of student activism, strident debate and freedom of expression and peaceful assembly, "Türk said. "It must be clear that legitimate exercises of the freedom of expression cannot be conflated with incitement to violence and hatred."
Observers were quick to note the parallels between the police crackdown on civil rights and anti-war protests at Columbia in 1968 and Tuesday's raid.
The Columbia Spectator, New York, Tuesday, April 30, 1968: https://t.co/4sNEDQ38Ks pic.twitter.com/2GO9MwUdx7
— philip lewis (@Phil_Lewis_) May 1, 2024
Stefanie Fox, executive director of Jewish Voice for Peace, said in response to the police invasion of Columbia Tuesday that "the U.S. has funded and supported the Israeli government's oppression of Palestinians for decades, with private institutions across the country profiting from the same."
Organizers have specifically demanded that Columbia divest its nearly $14 billion endowment from Caterpillar, Hyundai Heavy Industries, Hewlett Packard Enterprise, Elbit Systems, Mekorot, Hapoalim, Boeing, and Lockheed Martin.
"These students are saying: enough," said Fox. "As Prime Minister Netanyahu prepares to launch a ground invasion on Rafah—now home to one million displaced Palestinians—the U.S. government and institutions like Columbia are showing that they would rather brutalize students than divest from apartheid and genocide."
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Sanders Praises FTC Challenge of 'Junk' Patents for Drugs Including Ozempic
"We can no longer tolerate Novo Nordisk charging the American people $969 for Ozempic when that same exact drug can be purchased for just $155 in Canada and $59 in Germany while it costs less than $5 to manufacture."
Apr 30, 2024
U.S. Sen. Bernie Sanders on Tuesday lauded the Biden administration for expanding its "campaign against pharmaceutical manufacturers' improper or inaccurate listing of patents" for a wide range of drugs including Novo Nordisk's Ozempic.
"Let me commend the Federal Trade Commission, under the leadership of Chair Lina Khan, for taking bold action today against the bogus patents Novo Nordisk has filed to prevent Americans struggling with diabetes from receiving a generic version of Ozempic at a much lower price," Sanders (I-Vt.) said in a statement.
Sanders—who leads the Senate Health, Education, Labor, and Pensions (HELP) Committee—stressed that "Novo Nordisk must not be allowed to make billions in profits by delaying generic competition for Ozempic by unlawfully filing junk patents that have nothing to do with the drug itself, but the injection pen."
"Last week, the HELP Committee, that I chair, launched an investigation into the outrageously high prices Novo Nordisk is charging for Ozempic and Wegovy in the United States," he noted. The former name is used when the patient is taking the medication for Type 2 diabetes and the latter is used when it is prescribed to treat obesity in adults with at least one weight-related comorbidity.
"In my view, we can no longer tolerate Novo Nordisk charging the American people $969 for Ozempic when that same exact drug can be purchased for just $155 in Canada and $59 in Germany while it costs less than $5 to manufacture," said the senator. "I look forward to working with the Biden administration to take on the greed of Novo Nordisk and substantially reduce the price of Ozempic and other prescription drugs."
After disputing more than 100 patents in the Food and Drug Administration's (FDA) Orange Book in November, the FTC on Tuesday sent warning letters to 10 companies and notified the agency that it challenges the accuracy or relevance of over 300 listing across 20 different brand name products.
In addition to Denmark-based Novo Nordisk, the FTC sent letters to Amphastar Pharmaceuticals, AstraZeneca, Boehringer Ingelheim, Covis Pharma, Glaxo-Smith Kline, Novartis Pharmaceuticals, Teva Pharmaceutical Industries, and some subsidiaries for asthma, chronic obstructive pulmonary disease (COPD), diabetes, and weight loss drugs.
"By filing bogus patent listings, pharma companies block competition and inflate the cost of prescription drugs, forcing Americans to pay sky-high prices for medicines they rely on," said Khan. "By challenging junk patent filings, the FTC is fighting these illegal tactics and making sure that Americans can get timely access to innovative and affordable versions of the medicines they need."
Sanders was not alone in praising the commission and its leader—an appointee of President Joe Biden—for the ongoing efforts to battle Big Pharma's greed.
Public Citizen's Access to Medicines program advocate, Steve Knievel, said that "it's becoming harder for drug corporations to use patent shenanigans to thwart competition, thanks to the FTC and Chair Lina Khan."
"Improperly listing patents in the FDA Orange Book stymies generic competition, which is proven to dramatically lower prescription drug prices, saving patients and the public billions of dollars," he said, echoing Khan. "Today's letter is yet another demonstration from the Biden-Harris administration that Big Pharma business-as-usual monopoly abuses and price gouging will not be tolerated."
"The FDA should supplement FTC's action by clarifying guidelines for patents that can be listed in the Orange Book," he continued, noting that such action has been proposed by Sen. Elizabeth Warren (D-Mass.) and Rep. Pramila Jayapal (D-Wash.). "The government should also explore using licensing authorities to overcome pharmaceutical monopoly abuses, leaving no option off the table."
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