May, 08 2018, 12:00am EDT
Will Trump's Speech On Pharma Lead To More Than Tough Talk?
WASHINGTON
Today President Trump will deliver a speech with more tough talk about pharmaceutical corporations "getting away with murder," but instead of holding Big Pharma accountable for price gouging and offshore tax avoidance, Trump and the GOP recently rewarded these companies with massive tax breaks. Americans for Tax Fairness has released a new report highlighting the many ways big pharmaceutical companies benefited from the new tax law and how patients and public health programs got no price cuts in return.
"President Trump has talked tough in the past about reining in sky-high prescription drug prices, just like he talked tough about how his tax cuts will only benefit the middle-class and make wealthy people like himself pay a lot more in taxes," said Frank Clemente, executive director of Americans for Tax Fairness. "Instead, Trump's tax law is letting Big Pharma rack up billions in tax breaks, but its sharing little with its workers and nothing with consumers in price cuts. We hope the president remains true to his word about controlling drug prices rather than caving in to the drug lobby."
Following is a summary of the findings from BAD MEDICINE: How GOP Tax Cuts Are Enriching Drug Companies, Leaving Workers & Patients Behind:
THE PHARMA BIG 10 ARE SAVING BILLIONS IN TAXES
- Five of the Pharma Big 10 (the only corporations for which tax cut estimates have been publicly released) could save more than $6.3 billion in taxes in 2018 alone.
- The Pharma Big 10 will save $76 billion in taxes on their offshore profits alone. The 10 firms had $506 billion in untaxed profits offshore in 2017, on which they owed nearly $134 billion under previous law. Under the Trump-GOP tax regime they will owe only about $57 billion--a tax savings of $76 billion--and they can stretch their tax payments over eight years.
THEY ARE SHARING LITTLE TAX SAVINGS WITH WORKERS AND CONSUMERS
- Only two of the Pharma Big 10, Pfizer and Merck, have announced any quantifiable sharing of tax savings with existing employees through bonuses, wage hikes or fringe benefit improvements. They are providing one-time bonuses worth a total of $169 million. The industry's estimated $6.3 billion in 2018 tax cuts is 37 timesmore than what drug companies are giving workers. (AbbVie has announced it would "enhance compensation" but offered no details.)
- None of the other seven corporations--Johnson & Johnson, Eli Lilly, Gilead Sciences, Amgen, Bristol-Myers Squibb, Celgene and Biogen--has announced plans to share their tax-cut wealth with employees. However, many of these "Corporate Cheapskates" are doing share buybacks that will primarily benefit the wealthy, including their own CEOs.
- The Pharma Big 10's CEOs received total compensation in 2017 that ranged from 94 to 452 times what the typical worker received. For most of the companies, the CEO made over 100 times more than the typical worker; Johnson & Johnson's CEO made 452 times more.
- Unlike utility companies, none of the Pharma Big 10 has announced any plans to use their tax savings to reduce prescription drug prices despite huge price hikes in recent years. An AARP analysis found that the prices of 268 brand name drugs increased at least 15% a year from 2013 to 2015, the most recent data available. A recent ATF report found retail prices for a sample of leading American drugs had soared by 40% to 70%, or up to 14 times the rate of inflation, between 2011-2015. ATF found that over that same period profits for the Pharma Big 10 rose by almost 40%.
MOST OF THE TAX SAVINGS ARE GOING TO CEOS AND WEALTHY SHAREHOLDERS
- Five Pharma Big 10 firms have announced a total of $45 billion in stock buybacks since late 2017. That's 266 times more than the $169 million in announced worker bonuses. Stock buybacks overwhelmingly benefit wealthy shareholders, including top executives and foreign investors.
- Pfizer is getting a nearly $1.1 billion tax cut, which is 11 times more than the $100 million in one-time worker bonuses it attributes to the new tax law. Its tax rate will be just 17% in 2018. Pfizer has authorized spending $10 billion on stock buybacks this year--100 times more than it is sharing in bonuses--and raised its dividend by 6%.
- Merck promised employees one-time bonuses estimated at $69 million, but it's receiving 39 times more in tax cuts--$2.7 billion--in 2018 alone. The company is also buying back $10 billion in stock--145 times more than it is spending on bonuses.
- AbbVie's estimated tax cut is $1.3 billion in 2018--its resulting tax rate will be just 9%, lower than that of many working families. While AbbVie has said it will "enhance non-executive employee compensation," it has not said by how much or for how many workers.
Americans for Tax Fairness is a diverse campaign of more than 425 national, state and local endorsing organizations united in support of a fair tax system that works for all Americans. It has come together based on the belief that the country needs comprehensive, progressive tax reform that results in greater revenue to meet our growing needs. This requires big corporations and the wealthy to pay their fair share in taxes, not to live by their own set of rules.
Americans for Tax Fairness (ATF) is a diverse campaign of more than 420 national, state and local endorsing organizations united in support of a fair tax system that works for all Americans. It has come together based on the belief that the country needs comprehensive, progressive tax reform that results in greater revenue to meet our growing needs. This requires big corporations and the wealthy to pay their fair share in taxes, not to live by their own set of rules.
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Wyden Says Spying Bill Would Force Americans to Become an 'Agent for Big Brother'
"If you have access to any communications, the government can force you to help it spy," said Sen. Ron Wyden.
Apr 17, 2024
Democratic Sen. Ron Wyden took to the floor of the U.S. Senate on Tuesday to speak out against a chilling mass surveillance bill that lawmakers are working to rush through the upper chamber and send to President Joe Biden's desk by the end of the week.
The measure in question would reauthorize Section 702 of the Foreign Intelligence Surveillance Act (FISA) for two years and massively expand the federal government's warrantless surveillance power by requiring a wide range of businesses and individuals to cooperate with spying efforts.
"If you have access to any communications, the government can force you to help it spy," said Wyden (Ore.), referring to an amendment that was tacked on to the legislation by the U.S. House last week with bipartisan support. "That means anyone with access to a server, a wire, a cable box, a Wi-Fi router, a phone, or a computer. So think for a moment about the millions of Americans who work in buildings and offices in which communications are stored or pass through."
"After all, every office building in America has data cables running through it," the senator continued. "The people are not just the engineers who install, maintain, and repair our communications infrastructure; there are countless others who could be forced to help the government spy, including those who clean offices and guard buildings. If this provision is enacted, the government can deputize any of these people against their will, and force them in effect to become what amounts to an agent for Big Brother—for example, by forcing an employee to insert a USB thumb drive into a server at an office they clean or guard at night."
Wyden said the process "can all happen without any oversight whatsoever: The FISA Court won't know about it, Congress won't know about it. Americans who are handed these directives will be forbidden from talking about it. Unless they can afford high-priced lawyers with security clearances who know their way around the FISA Court, they will have no recourse at all."
Wyden's remarks came after the Senate narrowly approved a motion Tuesday to proceed to the FISA reauthorization bill ahead of Section 702's expiration at the end of the week. The Oregon senator, an outspoken privacy advocate, was among the seven members of the Democratic caucus who voted against the procedural motion.
Despite its grave implications for civil liberties, the bill has drawn relatively little vocal opposition in the Senate. A final vote could come as soon as Thursday.
Titled Reforming Intelligence and Securing America Act (RISAA), the legislation passed the Republican-controlled House last week after lawmakers voted down an amendment that would have added a search warrant requirement to Section 702.
The authority allows U.S. agencies to spy on non-citizens located outside of the country, but it has been abused extensively by the Federal Bureau of Investigation and National Security Agency to collect the communications of American lawmakers, activists, journalists, and others without a warrant.
Privacy advocates warn RISAA would dramatically expand the scope of Section 702 by broadening the kinds of individuals and businesses required to participate in government spying. A key provision of the bill would mandate cooperation from "electronic communications service providers" such as Google, Verizon, and AT&T as well as "any other service provider who has access to equipment that is being or may be used" to transmit or store electronic communications.
That would mean U.S. intelligence agencies could, without a warrant, compel gyms, grocery stores, barber shops, and other businesses to hand over communications data.
"In the face of the pervasive past misuse of Section 702, the last thing Americans need is a large expansion of government surveillance," Caitlin Vogus, deputy director of advocacy at Freedom of the Press Foundation, wrote in an op-ed for The Guardian on Tuesday. "The Senate should reject the House bill and refuse to reauthorize Section 702 without a warrant requirement. Lawmakers must demand reforms to put a stop to unjustified government spying on Americans."
Wyden said during his floor speech Tuesday that some of his colleagues "say they aren't worried about President Biden abusing these authorities."
"In that case, how about [former President Donald] Trump? Imagine these authorities in his hands," said Wyden. "If you're worried about having a president who lives to target vulnerable Americans, to pit Americans against each other, to find every conceivable way to punish perceived enemies, you ought to find this bill terrifying."
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House Dems Voice 'Deep Concern' Over Biden Claim That Israel Is Legally Using US Arms
A letter from 26 lawmakers notes the "stark differences and gaps" between what Biden administration officials say and the opinions of "prominent experts and global institutions" accusing Israel of genocide.
Apr 16, 2024
More than two dozen House Democrats on Tuesday challenged the Biden administration's claim that Israel is using U.S.-supplied weapons in compliance with domestic and international law—an assertion made amid an ongoing World Court probe of "plausibly" genocidal Israeli policies and practices in Gaza.
Citing "mounting credible and deeply troubling reports and allegations" of human rights crimes committed by Israeli troops in Gaza and soldiers and settlers in the occupied West Bank, 26 congressional Democrats led by Texas Reps. Veronica Escobar—who co-chairs President Joe Biden's reelection campaign—and Joaquin Castro asked U.S. Defense Secretary Lloyd Austin, Secretary of State Antony Blinken, and Director of National Intelligence Avril Haines "whether and how" their agencies determined Israel is lawfully using arms provided by Washington.
"We write to express our deep concern regarding the U.S. Department of State's recent comments regarding assurances from the Israeli government, under National Security Memorandum (NSM) 20, that the Israeli government is using U.S.-origin weapons in full compliance with relevant U.S. and international law and is not restricting the delivery of humanitarian assistance," the lawmakers wrote in a letter to the Cabinet members.
The letter acknowledges the "grave concerns" of institutions and experts around the world regarding Israel's "conduct throughout the war in Gaza, its policies regarding civilian harm and military targeting, unauthorized expansion of settlements and settler violence in the West Bank, and potential use of U.S. arms by settlers, in additional to limitations on humanitarian aid supported by the U.S."
The legislators noted Israeli attacks on aid convoys, workers, and recipients—like the February 29 "
Flour Massacre" in which nearly 900 starving Palestinians were killed or wounded at a food distribution site—and "the closure of vital border crossings" as Gazan children starve to death as causes for serious concern.
While the lawmakers didn't mention the International Court of Justice's January 26
preliminary finding that Israel is "plausibly" committing genocide in Gaza, their letter highlights the "stark differences and gaps in the statements" made by Biden administration officials and "those made by prominent experts and global institutions"—many of whom accuse Israel of genocide.
The lawmakers' letter came amid reports of fresh Israeli atrocities, including a drone strike on a playground in the Maghazi refugee camp in northern Gaza that killed at least 11 children. Eyewitnesses described a "horrific scene of children torn apart."
While Biden has called out Israel's "indiscriminate bombing" in Gaza—much of it carried out using U.S.-supplied warplanes and munitions including 2,000-pound bombs that can level whole city blocks—his administration has approved more than 100 arms sales to Israel, has repeatedly sidestepped Congress to fast-track emergency armed aid, and is seeking to provide the key ally with billions of dollars in addition weaponry atop the nearly $4 billion it gets annually from Washington.
This, despite multiple federal laws—and the administration's own rules— prohibiting U.S. arms transfers to human rights violators.
According to Palestinian and international officials, more than 110,000 Palestinians have been killed or wounded by Israeli forces since October 7. Most of the dead are women and children. At least 7,000 Palestinians are also missing and presumed dead and buried beneath the rubble of hundreds of thousands of bombed-out homes and other buildings.
Around 90% of Gaza's 2.3 million people have been forcibly displaced in what many Palestinians are calling a second Nakba, a reference to the ethnic cleansing of over 750,000 Arabs from Palestine during the establishment of the modern state of Israel in 1948.
A growing number of not only progressive lawmakers but also mainstream Democrats are calling for a suspension of U.S. military aid to Israel.
On Tuesday, Sen. Bernie Sanders (I-Vt.)—who was criticized earlier in the war for not calling for a cease-fire—stood beside a photo of a starving Gazan girl while declaring "no more money for" the far-right government of Israeli Prime Minister Benjamin Netanyahu and his "war machine."
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'Weasel Words': Julian Assange's Wife Slams US Assurances to UK
"The diplomatic note does nothing to relieve our family's extreme distress about his future—his grim expectation of spending the rest of his life in isolation in U.S. prison for publishing award-winning journalism."
Apr 16, 2024
The wife of jailed WikiLeaks founder Julian Assange sharply criticized "assurances" the U.S. government made as the U.K. High Court considers allowing the 52-year-old Australian's extradition to the United States, where he faces 175 years in prison.
The U.S. document states that if extradited, "Assange will have the ability to raise and seek to rely upon at trial (which includes any sentencing hearing) the rights and protections given under the First Amendment of the Constitution of the United States," though it points out that "a decision as to the applicability of the First Amendment is exclusively within the purview of the U.S. courts."
"A sentence of death will neither be sought nor imposed on Assange," the document adds, noting that he has not been charged with any offense for which that is a possible punishment. It comes after the U.K. court ruled last month that the Biden administration had until Tuesday to confirm that he wouldn't face the death penalty and if it did not, he could continue appealing his extradition.
Responding on social media, his wife, Stella Assange—who is an attorney—blasted the U.S. assurances as "weasel words."
"The United States has issued a nonassurance in relation to the First Amendment, and a standard assurance in relation to the death penalty," she said. "It makes no undertaking to withdraw the prosecution's previous assertion that Julian has no First Amendment rights because he is not a U.S citizen."
"The Biden administration must drop this dangerous prosecution before it is too late."
"Instead, the U.S. has limited itself to blatant weasel words claiming that Julian can 'seek to raise' the First Amendment if extradited," she added. "The diplomatic note does nothing to relieve our family's extreme distress about his future—his grim expectation of spending the rest of his life in isolation in U.S. prison for publishing award-winning journalism. The Biden administration must drop this dangerous prosecution before it is too late."
The U.K. court's next hearing is scheduled for May 20. Last week, reporters asked U.S. President Joe Biden about requests from Australian Prime Minister Anthony Albanese and members of the country's Parliament to drop the extradition effort and charges. He said that "we're considering it."
So far, the Biden administration has ignored significant pressure from Australian and U.S. politicians as well as human rights and press freedom groups, and continued to pursue the extradition of Julian Assange, who was charged under former President Donald Trump—the Republican expected to face the Democratic president in the November election.
Assange was charged under the Espionage Act and Computer Fraud and Abuse Act for publishing classified documents including the "Collateral Murder" video and the Afghan and Iraq war logs. Since British authorities dragged Assange out of the Ecuadorian Embassy in London—where he lived with political asylum for seven years—he has been jailed in the city's Belmarsh Prison.
The WikiLeaks founder's wife, with whom he has two children, was not alone in condemning the U.S. assurances on Tuesday.
"This 'assurance' should make journalists even more worried about how the Assange prosecution could impact press freedom in the U.S. and globally. The U.K. should grant Assange's appeal and refuse to extradite him," said the Freedom of the Press Foundation. "The U.S. doesn't disclaim the ability to argue that the First Amendment doesn't apply to Assange because of his nationality or other reasons, or for a court to rule against a First Amendment challenge to his prosecution."
Jameel Jaffer, director of the Knight First Amendment Institute, similarly said that "no one who cares about press freedom should take any comfort at all from the United States' assurance that Assange will be permitted to 'rely upon' the First Amendment."
"If the prosecution goes forward, the U.S. government will be trying to persuade American courts that the First Amendment poses no bar to the prosecution of a publisher under the Espionage Act," Jaffer warned. "And if the government is successful, no journalist will ever again be able to publish U.S. government secrets without risking her liberty."
"So the government's First Amendment assurances aren't responsive at all to the concerns that press freedom advocates have been raising," he concluded. "This case poses essentially the same threat to press freedom today as it did yesterday."
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