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Rep. John Murtha (D-PA) has received considerable press over the
years for adding so-called earmarks to defense spending bills that
benefit large campaign contributors and send no-bid contracts back to
his district in Pennsylvania, many of questionable value to the
taxpayer. A review of campaign finance reports, however, shows that the
practice of inserting earmarks on behalf of campaign contributors is
far more widespread on Rep. Murtha's appropriations subcommittee alone.
The 18 members of the House Appropriations Subcommittee on Defense,
which Rep. Murtha chairs, inserted more than $355 million in earmarks
into the 2008 defense spending bill on behalf of their campaign
contributors. Those contributors, according to campaign disclosure
reports, donated a total of $1.3 million to the individual members who
sponsored the earmarks.
Rep. Murtha inserted a total of $166.5 million worth of earmarks in
last year's defense appropriations bill, $73.6 million of which went to
some of his biggest contributors. The recipients of those earmarks
donated a total of $313,150 to Rep. Murtha's reelection campaign or his
leadership PAC during the 2008 election.
"Jack Murtha is the poster boy for pay-to-play politics," said Bob
Edgar, president of Common Cause, which has asked the House Ethics
Committee to investigate Mr. Murtha and two of his colleagues, Rep.
James Moran (D-VA) and Rep. Peter Visclosky (D-IN), on the defense
appropriations panel for allegedly steering in exchange for hefty
campaign contributions millions of dollars worth of earmarks to a
now-defunct lobbying firm staffed by former Murtha aides. "But we must
end the widespread practice of what appears to be trading earmarks for
campaign cash. This game distorts our nation's spending priorities and
erodes public trust in our government."
This report examines
the contributions that earmark seekers - often defense companies, in
the case of this report - donated to Rep. Murtha, as well as to the
rest of the House Defense Appropriations Subcommittee, and the value of
the earmarks they got in return.
This look is just another example of the conflicts of interest that
arise from our corrupting campaign finance system that pressures
elected officials and candidates to constantly raise large sums of
money, often from the special interests who want the most in return.
Questions have been raised about whether Rep. Murtha inserted earmarks
in exchange for campaign contributions. Common Cause has joined others
in calling on the House Ethics Committee and the Office of
Congressional Ethics to investigate. At the same time, Rep. Murtha is
obviously not the only member of Congress who has inserted earmarks for
companies that donated to his reelection campaign.
The real answer is to change the way America pays for its elections
with the passage of the Fair Elections Now Act, which would allow
candidates to swear off big money and run for office on a blend of
small donations and public funds.
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.
(202) 833-1200"We urge everyone to join this effort in their own communities," said the Maine Coalition for Palestine. "Our tax money should not be spent killing women and children in Palestine."
Lawmakers in Portland, Maine voted unanimously on Wednesday to divest public funds from "all entities complicit" in Israel's assault on the Gaza Strip, making the city the first on the U.S. East Coast to take such a step.
Sponsored by the Maine Coalition for Palestine and the Maine chapter of Jewish Voices for Peace (JVP), the newly approved resolution contains a "divestment list" of more than 85 companies, from U.S.-based Chevron, Lockheed Martin, and Boeing to Israel-based Elbit Systems. The list also includes public entities such as Israel Bonds and state-owned Israel Aerospace Industries.
"The city of Portland recognizes the ongoing humanitarian crisis in Gaza and seeks to avoid economically supporting this crisis through the city's financial investments," the resolution states. "The city council urges that the city manager divest the city of Portland from all entities complicit in the current and ongoing humanitarian crisis in Gaza and occupation of Palestine, including, without limitation, all entities on the divestment list when it is feasible and carries no financial penalty to the city."
Additionally, the resolution "urges the city manager to not make any future directly held general fund investment in any entities complicit in the humanitarian crisis in Gaza and occupation of Palestine."
The Maine Coalition for Palestine said Wednesday's vote makes Portland the fourth U.S. city to adopt an Israel divestment resolution. Two California cities—Hayward and Richmond—and Hamtramck, Michigan passed similar divestment resolutions earlier this year.
"Just as the people of the world spoke to end South African apartheid with economic pressure, we must do the same for Israeli apartheid and genocide."
In a statement, the Maine coalition called out the state's congressional delegation and the Biden administration for supporting Israel's destruction of Gaza, whose population is facing mass starvation and disease—including the reemergence of polio.
"Generations of families are being decimated by U.S. bombs supplied to Israel," the coalition said. "Maine Senators [Susan] Collins and [Angus] King, and Representative [Jared] Golden, accept significant campaign contributions from the Israel lobby, and they have refused to listen to their constituents' demands."
"Americans overwhelmingly want a cease-fire and an arms embargo," the group continued. "Divestment sends a clear message that current U.S. policy towards Palestinians is morally unacceptable and does not serve the interests of our country. We urge everyone to join this effort in their own communities. Our tax money should not be spent killing women and children in Palestine."
Sarah Snyder, a spokesperson for the Maine chapter of JVP, said that "as Jews in Portland, we have immense gratitude for the Portland City Council's resolution to divest municipal funds from the Israeli government and corporations complicit in the ongoing genocide of Palestinians."
"We are outraged and grief-stricken by the continued atrocities perpetrated by Israel," Snyder added, "and fully support our city heeding the call to divest. Just as the people of the world spoke to end South African apartheid with economic pressure, we must do the same for Israeli apartheid and genocide."
"Harris seems to be making a policy choice based on the disproven, failed ideology of trickle-down economics, and giving petulant billionaires a gift in the process," said one progressive advocacy group.
Democratic nominee Kamala Harris broke with President Joe Biden on Wednesday by proposing a smaller capital gains tax increase for wealthy Americans, a decision that one progressive advocacy group decried as a "baffling capitulation to Wall Street billionaires" who have vocally complained about the vice president's embrace of higher taxes on the ultra-rich.
Harris said at a campaign event in New Hampshire on Wednesday that "if you earn a million dollars a year or more, the tax rate on your long-term capital gains will be 28% under my plan," broadly confirming earlier reporting by The Wall Street Journal.
"We know when the government encourages investment, it leads to broad-based economic growth and it creates jobs, which makes our economy stronger," said Harris, who previously signaled support for Biden's tax agenda.
A 28% top tax rate on long-term capital gains—profits from the sale of an asset held for more than a year—would be significantly lower than the 39.6% rate that Biden proposed in his most recent budget.
The Patriotic Millionaires, a group of rich Americans that advocates for a more progressive tax system, said it was "appalled" by Harris' decision to pare back Biden's proposed capital gains tax increase.
"Vice President Harris is making a catastrophic mistake by capitulating to the petulant whining of the billionaire class," said Morris Pearl, the group's chair. "Harris seems to be making a policy choice based on the disproven, failed ideology of trickle-down economics, and giving petulant billionaires a gift in the process."
"Both on the economics and on the politics, this is a serious unforced error."
Details of Harris' capital gains tax plan began to emerge days after ultra-rich investors and other major donors to the vice president's 2024 campaign took to the pages of The New York Times to express concerns about Harris' support for Biden's tax agenda, which also calls for taxing the unrealized capital gains of households worth over $100 million.
The Financial Timesdescribed Harris' break with Biden on long-term capital gains as "an olive branch to Wall Street"; The New York Times similarly characterized the move as a message to the business community that she is "friendlier than Biden."
But Pearl of the Patriotic Millionaires warned that the policy shift "demonstrates a concerning lack of commitment to reversing destabilizing economic inequality."
"Both on the economics and on the politics, this is a serious unforced error," said Pearl, the former managing director at the investment behemoth BlackRock. "You don't need my years of experience on Wall Street to grasp the obvious. Big investors invest to make serious money, not to save a few percentage points on their tax bill. No one has ever made a lucrative investment decision based on a preferential tax rate. The incentive to invest is making money, not lowering tax rates."
"This ill-advised, destructive policy is a giveaway to the ultra-rich," he added. "We hope Vice President Harris will reconsider her position."
Even with a smaller proposed capital gains tax increase, Harris' tax agenda stands in stark contrast to that of Republican presidential nominee Donald Trump, who has called for massive additional tax cuts for the rich and large corporations while attacking Harris' support for progressive—and widely popular—tax proposals.
While Trump has not yet outlined a capital gains proposal during the 2024 campaign, the former president said in the final year of his first term that he would propose cutting the top capital gains rate to 15% in a second term.
Steve Wamhoff of the Institute on Taxation and Economic Policy noted at the time that 99% of the benefits of such a cut "would go to the richest 1% of taxpayers."
"It is time for Dr. de la Torre to get off of his $40 million yacht and explain to the American people how much he has gained financially while bankrupting the hospitals he manages."
U.S. Sen. Bernie Sanders on Wednesday blasted Dr. Ralph de la Torre—the CEO of a bankrupt health services company "who has made hundreds of millions of dollars ripping off patients and healthcare providers"—for refusing to comply with a bipartisan subpoena compelling him to testify about his company's insolvency.
"Perhaps more than anyone else in America, Dr. de la Torre is the poster child for the type of outrageous corporate greed that is permeating through our for-profit healthcare system," said Sanders (I-Vt.), who chairs the Senate Committee on Health, Education, Labor, and Pensions (HELP).
"Working with private equity vultures, he became obscenely wealthy by loading up hospitals across the country with billions in debt and selling the land underneath these hospitals to real estate executives who charge unsustainably high rent," the senator added. "As a result, Steward Health Care, and the more than 30 hospitals it owns in eight states, were forced to declare bankruptcy with some $9 billion in debt."
Steward is trying to sell all 31 of its hospitals in order to pay down its debt.
As Common Dreamsreported on July 25, the HELP committee, which includes 10 Republicans, voted 20-1 to investigate Steward Health Care's bankruptcy, and 16-4 to subpoena de la Torre.
"I am now working with members of the HELP committee to determine the best path forward," Sanders said on Wednesday. "But let me be clear: We will not accept this postponement. Congress will hold Dr. de la Torre accountable for his greed and for the damage he has caused to hospitals and patients throughout America. This committee intends to move forward aggressively to compel Dr. de la Torre to testify to the gross mismanagement of Steward Health Care."
"It is time for Dr. de la Torre to get off of his $40 million yacht and explain to the American people how much he has gained financially while bankrupting the hospitals he manages," Sanders added, referring to the 190-foot megayacht the CEO purchased as Steward hospitals failed to pay their bills.
Sens. Ed Markey (D-Mass.)—a HELP committee member—and Elizabeth Warren (D-Mass.) also slammed de la Torre on Wednesday, calling his failure to appear before the panel "outrageous."
"De la Torre used hospitals as his personal piggy bank and lived in luxury while gutting Steward hospitals," the senators said. "De la Torre is as cowardly as he is cruel. He owes the public and Congress answers for his appalling greed—and de la Torre must be held in contempt if he fails to appear before the committee."
De la Torre's attorney, Alexander Merton, lashed out against the Senate subpoena Wednesday in a letter
accusing HELP committee members of being "determined to turn the hearing into a pseudo-criminal proceeding in which they use the time, not to gather facts, but to convict Dr. de la Torre in the eyes of public opinion."
The same day the HELP Committee voted to probe Steward and subpoena de la Torre, Markey and Rep. Pramila Jayapal (D-Wash.), who chairs the Congressional Progressive Caucus, introduced the Health Over Wealth Act, which would increase the powers of the U.S. Department of Health and Human Services to block private equity deals in the healthcare industry.
Last month, Markey and Warren expressed concerns over the proposed $245 million sale of Steward Health Care's nationwide physician network to a private equity firm.
"Two Massachusetts hospitals are closing and communities are suffering because of private equity's looting of Steward," said Warren. "Selling Massachusetts doctors to another private equity firm could be a disaster. We can't make the same mistake again. Regulators must scrutinize this deal."