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Sandra Lupien, 510-681-3171, slupien@fwwatch.org
A new report by EcoNorthwest, an independent economic analysis firm, estimates that 300,000 acres of toxic land in the Westlands Water District and three adjacent water districts could be retired at a cost of $580 million to $1 billion.
Retiring this land and curbing the water rights associated with it would result in a savings to California of up to 455,000 acre-feet of water - for reference, the City of Los Angeles uses 587,000 acre-feet in a typical year. This course of action also is significantly less expensive than Governor Jerry Brown's plan to build a massive tunnel system to divert water from the Sacramento River for the benefit of corporate agribusiness.
Food & Water Watch, the California Water Impact Network (C-WIN) and Restore the Delta are calling on the Obama administration to retire up to 300,000 acres of selenium-tainted land and reduce the annual supply of water in the San Luis Unit, which includes parts of Westlands, San Luis, Panoche and Pacheco water districts, by 455,000 acre-feet. (This water is typically pumped from the San Francisco Bay Delta via the federal controlled Central Valley Project.) The Delta is suffering from poor water quality because of the removal of fresh water to irrigate water-intensive crops such as almonds and pistachios in the Westlands Water District, located on the hot and dry western side of the San Joaquin Valley.
"California needs to balance water demands with the realities of its supply, which means retiring inappropriate farmland," said Adam Scow, California Director at Food & Water Watch. "Retiring toxic farmland in Westlands is a commonsense step toward protecting our overstretched and dwindling water supply."
The report comes as the Obama administration and Westlands engage in secret negotiations over the fate of this toxic land; central to the discussions is millions of dollars in debt owed by Westlands to U.S. taxpayers for the faulty and incomplete construction of the Central Valley Project, which supplies water to the district.
The disastrous consequences of industrial-scale cultivation of seleniferous lands became obvious in 1983, when thousands of migratory waterfowl were deformed or killed outright at Kesterson Wildlife Refuge due to deliveries of toxic drain water from Westlands Water District megafarms.
A recent draft settlement revealed that the Obama administration has proposed guaranteeing Westlands nearly 900,000 acre-feet of water per year for fifty years, while letting the district off the hook for $365 million of its debt. The proposed deal would provide for the continued irrigation of more than 250,000 acres of selenium-tainted lands, allowing toxic runoff to continue plaguing the San Joaquin River and the Bay-Delta/Estuary. A final settlement proposal is expected soon. The Environmental Working Group estimated that annual subsidies to Westlands range from $24 million to $110 million a year.
"Discharge into the San Joaquin River harms Bay-Delta drinking water supplies, family farms, fish and wildlife," said Barbara Barrigan-Parrilla of Restore the Delta. "Everyone knows land retirement will need to happen eventually because there will come a point where the drainage-impaired lands will become unfarmable."
The three groups noted that the retirement of these poisoned lands and the "paper water" that goes with them would greatly reduce the toxic drainage currently poisoning the San Joaquin River and the San Francisco Bay/Delta Estuary.
Along with retiring the land, the groups are calling on Governor Brown and the State Water Board to stop the "paper water" claims that run with the land - the disparity that exists between water rights claims and water that actually exists. Currently, the State Water Resources Control Board has allocated water rights claims that exceed available water from the Delta watershed by a factor of five.
"The retirement must be accompanied by a proportional reduction in water contract amounts," said Tom Stokely of C-WIN. "UC Davis has demonstrated that California water demands are vastly out of balance with the realities of our supply: it's no more than 'paper water.' To guarantee Westlands a fifty-year water supply, as the current settlement does, would be an unfair and irresponsible giveaway to heavily-subsidized, corporate farms in Westlands."
In a previous land retirement deal, Westlands' water supply allocation was not reduced. A concern shared by the three groups is that under the deal, corporate farms might sell their taxpayer-subsidized water for private profit at the expense of the environment.
"We cannot permit Westlands to transform itself from heavily subsidized corporate farms into a water broker at the expense of taxpayers and the San Francisco Bay/Delta Estuary," said Barrigan-Parrilla.
In addition, given the likelihood that land retirement would eliminate farm jobs tied to that land, the three groups recommend that those farmworkers be compensated fairly for their losses and that public funds be made available for that purpose.
As leading opponents to Governor Jerry Brown's proposal to build massive tunnels to divert the Sacramento River, the groups emphasized the cost savings to Californians represented by retiring these toxic lands.
"Spending one billion dollars to take these selenium-laced, unsustainable lands out of production and cutting the water rights that go with them saves Californians water money," said Scow of Food & Water Watch. "Retiring these west side lands makes a lot more sense than spending $67 billion to build Governor Brown's outdated tunnels to support corporate agribusiness."
Food & Water Watch mobilizes regular people to build political power to move bold and uncompromised solutions to the most pressing food, water, and climate problems of our time. We work to protect people's health, communities, and democracy from the growing destructive power of the most powerful economic interests.
(202) 683-2500"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."
"We already know how devastating the Biden asylum shutdown is and it should be ended immediately rather than expanded," said one campaigner.
Two months after U.S. President Joe Biden signed an executive order barring migrants who cross the southern border without authorization from receiving asylum, senior administration officials are reportedly considering making the policy—which was meant to be temporary—much harder to lift.
Biden's June directive invoked Section 212(f) of the Immigration and Nationality Act—previously used by the administration of former Republican President Donald Trump, the Republican presidential nominee, to deny migrants asylum—"when the southern border is overwhelmed."
The policy shuts down asylum requests when the average number of daily migrant encounters between ports of entry hits 2,500. Border entry points may allow migrants to seek asylum when the seven-day average dips below 1,500.
"The move to make the asylum restrictions semi-permanent would effectively rewrite U.S. asylum law."
The changes under consideration would reopen entry only after the seven-day average for migrant encounters remains under 1,500 for 28 days.
"The asylum ban itself is arbitrary and duplicative. It has no relation at all to a person's asylum claims, meaning even a person with an extraordinarily strong claim would be denied for crossing at a time when many others, potentially thousands of miles away, are doing the same," Aaron Reichlin-Melnick, a senior fellow at the American Immigration Council, an advocacy group, said Wednesday.
"There is no doubt that we need to rethink the current asylum system, which would include giving it an infusion of resources so that people don't have to wait five years for a decision," he continued. "But cutting it off to whole swathes of people for reasons unrelated to their claims isn't a fix."
"The move to make the asylum restrictions semi-permanent would effectively rewrite U.S. asylum law, which since it was created in 1980 has mandated that all people on U.S. soil be permitted to request humanitarian protections, regardless of how they got here," Reichlin-Melnick added.
U.S. officials say Biden's order has resulted in a dramatic decrease in asylum claims.
According toThe New York Times:
Since Mr. Biden's executive order went into effect, the number of arrests at the southern border has dropped precipitously. In June, more than 83,000 arrests were made, then in July the number went down further to just over 56,000 arrests. Arrests in August ticked up to 58,000, according to a homeland security official, but those figures still pale in comparison to the record figures in December when around 250,000 migrants crossed.
Migrant rights advocates condemned the new rules. Less than two weeks after Biden issued the order, a coalition of rights groups led by the American Civil Liberties Union sued the administration, arguing the policy was illegal and endangered migrant lives.
"We already know how devastating the Biden asylum shutdown is and it should be ended immediately rather than expanded," Amy Fischer, Amnesty International USA's director of refugee and migrants rights, said Wednesday on social media. "High numbers of people being denied their human rights is not a sign of success, it's a disgrace."