July, 30 2014, 12:45pm EDT
For Immediate Release
Contact:
Dan Smith, U.S. Public Interest Research Group
202-461-3822 (o), 203-520-1427 (c), dsmith@pirg.org
Phineas Baxandall, U.S. Public Interest Research Group
Bipartisan Bill to Expose Tax Write-Offs for Corporate Wrongdoing Clears Committee
Statement of U.S. PIRG Tax and Budget Advocate Dan Smith on the passage of the Truth and Settlements Act (S. 1898), introduced by Senators Warren (D-MA) and Coburn (R-OK), by the Homeland Security and Government Affairs Committee.
WASHINGTON
"U.S. PIRG applauds the Homeland Security and Government Affairs Committee for approving the bipartisan Truth in Settlements Act. Thanks to a loophole in the law, companies paying out-of-court settlements to federal agencies can often deduct part of the cost from their tax bill as an ordinary business expense. This important bipartisan legislation would take the critical step of requiring the terms of these deals to be made public.
"For JP Morgan, this loophole means an expected $3.85 billion tax windfall for its recent settlement related to toxic mortgages that contributed to the financial crisis. For BP's settlement for its oil spill, the tax break was $10 billion.
"These agreements are signed in the name of the public and total tens of billions of dollars each year, but right now there is no requirement that agencies publicly disclose the true value of these deals. Taxpayers deserve to know if they're footing part of the bill for a company's wrongdoing.
"The Coburn-Warren bill would shine much needed light on settlement deals that are signed behind closed doors. Agencies would need to report on the true value of the settlement and would have to make key information available to the public online.
"An April poll released by the U.S. Public Interest Research Group Education Fund, and conducted by Lake Research Partners, found that substantial majorities across party lines overwhelmingly disapprove of settlement tax write-offs and want federal agencies to be more transparent about them.
"Now that this bill has cleared committee with a bipartisan vote Congress has no excuse not to enact it into law."
A U.S. House counterpart bill (H.4324) has also been gathering bipartisan momentum, with four Republican and four Democratic cosponsors.
U.S. PIRG has been watchdogging the tax implications of out-of-court settlements. You can read U.S. PIRG's report on the topic here: "Subsidizing Bad Behavior: How Corporate Legal Settlements for Harming the Public Become Lucrative Tax Write-Offs.
U.S. PIRG has created a fact sheet on the settlement loophole, and separate factsheets on settlement write offs related to: Wall Street scandals, consumer rip offs, and health care scams.
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.
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Democratic New Jersey Gov. Phil Murphy on Monday signed legislation protecting librarians and prohibiting public schools and libraries from banning books—a move that came as Republican state lawmakers are proscribing a record number of titles, many of them works addressing sexual orientation, gender identity, and racial injustice.
Flanked by educators, librarians, and other advocates, Murphy signed
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"The Freedom to Read Act cements New Jersey's role on the forefront of preventing book bans and protecting the intellectual freedom of our educators and students," said Murphy. "Across the nation, we have seen attempts to suppress and censor the stories and experiences of others. I'm proud to amplify the voices of our past and present, as there is no better way for our children to prepare for the future than to read freely."
According to a statement from Murphy's office:
Under the law, boards of education and governing boards of public libraries are barred from excluding books because of the origin, background, or views of the material or of its authors. Further, boards of education and governing boards of public libraries are prevented from censoring library material based on a disagreement with a viewpoint, idea, or concept, or solely because an individual finds certain content offensive, unless they are restricting access to developmentally inappropriate material for certain age groups.
The legislation "also provides protections for library staff members against civil and criminal lawsuits related to complying with this law."
New Jersey Association of School Librarians President Karen Grant said that "the Freedom to Read Act recognizes the professionalism, honor, work ethics, and performance of school and public library staff" and "promotes libraries as trusted sources of information and recognizes the many roles that libraries play in students' lives."
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Rep. Delia Ramirez (D-Ill.), the daughter of Guatemalan immigrants, said in a statement: "'Give me your tired, your poor, your huddled masses yearning to breathe free.' It is important to remember who we are, where many of us came from, and why many of our families traveled here to be greeted by the Mother of Exiles, the Statue of Liberty."
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Rep. Adriano Espaillat (D-N.Y.) highlighted the difficulties of passing constitutional amendments while discussing Trump in a Monday appearance on CNN. The incoming chair of the Congressional Hispanic Caucus was born in the Dominican Republic and is the first formerly undocumented immigrant elected to Congress.
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Critics of ending birthright citizenship for the U.S.-born children of undocumented immigrants argue it would not only constitute bad policy, but also a betrayal of American values and, as one scholar put it to me, a "prelude" to mass deportation.
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