August, 01 2022, 03:05pm EDT
Meet the REITs: The Tax-Supported Driver of Higher Costs in Nursing Homes, Hospitals, Hotels
WASHINGTON
One overlooked factor driving up the costs of nursing homes, hospitals, and hotels is Real Estate Investment Trusts (REITs). But REITs are about to step into the limelight in a new study published today by the Institute for New Economic Thinking (INET) and the Center for Economic and Policy Research (CEPR).
The Role of Public REITs in Financialization and Industry Restructuring, by Cornell University's Rosemary Batt and CEPR's Co-Director Eileen Appelbaum, shows how REITs aggressively buy up property assets and manage them to extract wealth at taxpayers' expense. Their growth has a powerful impact on the US economy and productive enterprises, especially in markets where REITs have a major presence: nursing homes, hospitals, and hotels.
REITs were given tax-exempt status to facilitate retail investing in the real estate market: buy real estate through market transactions, and collect the rent. Batt and Appelbaum reveal how REITs use that tax exempt status to undercut commercial real estate transactions, buy up local property, and consolidate the property and their corporate tenants--including private equity-owned hospitals and nursing homes--into national or global corporations.
In short, REITs produce extraordinary profits with little or no transparency. They are important financial actors, controlling over $3.5 trillion in gross assets and over 500,000 properties in the US, yet remain under the regulatory radar. REITs directly or indirectly shape their tenants' decisions or business strategies, and in turn, outcomes for consumers, patients, and employees.
"While these strategies may be technically legal, they undercut the original intent of the laws," said co-author Appelbaum. "Taxpayers deserve a clear assessment of how much they are subsidizing yet another asset class that may be contributing to greater inequality in the US economy."
The Center for Economic and Policy Research (CEPR) was established in 1999 to promote democratic debate on the most important economic and social issues that affect people's lives. In order for citizens to effectively exercise their voices in a democracy, they should be informed about the problems and choices that they face. CEPR is committed to presenting issues in an accurate and understandable manner, so that the public is better prepared to choose among the various policy options.
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'Stuff of Parody': Trump Taps Election-Denying Ally Kari Lake to Run Voice of America
"Authoritarians love to control and instrumentalize media organizations, especially state-funded ones," journalist Mehdi Hasan wrote in response to the news.
Dec 12, 2024
President-elect Donald Trump said Wednesday that he has chosen Kari Lake, a far-right election denier and failed U.S. Senate candidate, to lead the federally funded international broadcast network Voice of America, a move that critics said underscores Trump's effort to transform government entities into vehicles to advance his own interests.
In a Truth Social post, Trump wrote that as director of VOA, Lake would "ensure that the American values of Freedom and Liberty are broadcast around the World FAIRLY and ACCURATELY, unlike the lies spread by the Fake News Media."
Lake, a former television news anchor in Arizona who has echoed Trump's insidious attacks on journalists, wrote in response to the president-elect's announcement that she was "honored" to be asked to lead VOA, which she characterized as "a vital international media outlet dedicated to advancing the interests of the United States by engaging directly with people across the globe and promoting democracy and truth." VOA, which is supposed to have editorial independence, has long faced criticism for its coverage and treatment of employees.
Though the VOA's Charter states that the outlet will "present a balanced and comprehensive projection of significant American thought and institutions," Lake made clear that she views the network as a propaganda channel for the United States.
"Under my leadership, the VOA will excel in its mission: chronicling America's achievements worldwide," Lake, an outspoken Trump loyalist, wrote Wednesday.
Hours after Trump's announcement that she's his pick to lead VOA, Lake applaudedTIME magazine for naming Trump its "Person of the Year" and gushed that he "should have been the Person of the Year every year for the last decade."
Journalists and watchdogs expressed a mixture of alarm and mockery in response to Trump's attempt to elevate Lake to VOA director.
"Kari Lake as (head of) Voice of America is the stuff of parody. Or tragedy," Robert Weissman, co-president of Public Citizen, wrote on social media. "VOA matters."
Zeteo's Mehdi Hasan added that "authoritarians love to control and instrumentalize media organizations, especially state-funded ones."
"Good luck to the VOA," he wrote.
VOA is the largest federally funded international broadcaster and is overseen by the U.S. Agency for Global Media.
It is not clear whether Trump will be able to easily install Lake as VOA director. The Washington Post noted that "under rules passed in 2020, the VOA director is appointed by a majority vote of a seven-member advisory board."
"Six members of the board are named by the president and require Senate consent, and the seventh member is the secretary of state," the Post explained.
During his first term in the White House, Trump's pick to lead the U.S. Agency for Global Media worked aggressively to influence VOA coverage.
"In 2020, Mr. Trump appointed Michael Pack, an ally of his former aide Stephen K. Bannon, to run the U.S. Agency for Global Media," The New York Timessummarized on Thursday. "Mr. Pack was accused of trying to turn Voice of America into a mouthpiece for the Trump administration, and a federal judge ruled that Mr. Pack had violated the First Amendment rights of the outlet's journalists. A federal investigation later found that Mr. Pack had grossly mismanaged the U.S. Agency for Global Media, repeatedly abusing his power by sidelining executives he felt did not sufficiently support Mr. Trump."
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U.S. President Joe Biden on Thursday announced that he is commuting the sentences of nearly 1,500 Americans and pardoning 39 people convicted of nonviolent crimes, a move the White House described as "the largest single-day grant of clemency in modern history."
But the president's sweeping use of his clemency power as his term nears its conclusion did not appear to extend to any of the 40 men currently on death row—some of whom have been there for decades.
According to a White House fact sheet, those who received commutations "have been serving their sentences at home for at least one year under the Covid-era CARES Act," a law that extended the amount of time in which people could be placed in home confinement to reduce the spread of the virus in prisons.
The White House did not name those who received pardons or commutations but said the list includes a "decorated military veteran," a "nurse who has led emergency response for several natural disasters," and "an addiction counselor who volunteers his time to help young people find their purpose."
The Biden Justice Department paused federal executions in 2021, but President-elect Donald Trump pledged on the campaign trail to expand the use of the death penalty and is expected to allow the executions of the 40 men on death row to take place if they're still there when he takes office next month.
In a statement on Thursday, Biden said that he has "the great privilege of extending mercy to people who have demonstrated remorse and rehabilitation, restoring opportunity for Americans to participate in daily life and contribute to their communities, and taking steps to remove sentencing disparities for non-violent offenders, especially those convicted of drug offenses."
"That is why, today, I am pardoning 39 people who have shown successful rehabilitation and have shown commitment to making their communities stronger and safer," the president said. "I am also commuting the sentences of nearly 1,500 people who are serving long prison sentences—many of whom would receive lower sentences if charged under today’s laws, policies, and practices. These commutation recipients, who were placed on home confinement during the Covid pandemic, have successfully reintegrated into their families and communities and have shown that they deserve a second chance."
Biden, who campaigned on ending the death penalty at the federal level, vowed to "take more steps in the weeks ahead" as his administration reviews clemency petitions, leaving open the possibility of commutations for death row prisoners.
But he's running out of time, human rights organizations, religious leaders, former federal judges, and progressive lawmakers have warned in recent days as they've ramped up pressure on Biden to act.
"State-sanctioned murder is not justice, and President Biden has an opportunity and an obligation to save lives and make good on his campaign promise to address the federal death penalty before leaving office," Rep. Ayanna Pressley (D-Mass.) said at a press conference earlier this week. "With the incoming administration planning to execute the 40 individuals on death row, we're calling on the president to use his clemency authority to commute their death sentences and resentence them to a prison term."
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"Instead of fighting the rising cost of healthcare, gas, or groceries, this Congress prioritized rewarding the wealthy and well-connected military-industrial complex," said Defense Spending Reduction Caucus co-chairs.
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Despite the Pentagon's repeated failures to pass audits and various alarming policies, 81 Democrats in the U.S. House of Representatives voted with 200 Republicans on Wednesday to advance a $883.7 billion annual defense package.
The Servicemember Quality of Life Improvement and National Defense Authorization Act (NDAA) for Fiscal Year 2025, unveiled by congressional negotiators this past Saturday, still needs approval from the Senate, which is expected to vote next week. U.S. Sen. Bernie Sanders (I-Vt.) said Wednesday that he plans to vote no and spoke out against the military-industrial complex.
The push to pass the NDAA comes as this congressional session winds down and after the U.S. Department of Defense (DOD) announced last month that it had failed yet another audit—which several lawmakers highlighted after the Wednesday vote.
Reps. Mark Pocan (D-Wis.) and Barbara Lee (D-Calif.), co-chairs and co-founders of the Defense Spending Reduction Caucus, said in a joint statement, "Time and time again, Congress seems to be able to find the funds necessary to line the pockets of defense contractors while neglecting the problems everyday Americans face here at home."
"Instead of fighting the rising cost of healthcare, gas, or groceries, this Congress prioritized rewarding the wealthy and well-connected military-industrial complex with even more unaccountable funds," they continued. "After a seventh failed audit in a row, it's disappointing that our amendment to hold the Pentagon accountable by penalizing the DOD's budget by 0.5% for each failed audit was stripped out of the final bill. It's time Congress demanded accountability from the Pentagon."
"While we're glad many of the poison pill riders that were included in the House-passed version were ultimately removed from the final bill, the bill does include a ban on access to medically necessary healthcare for transgender children of service members, which will force service members to choose between serving their country and getting their children the care they need," the pair noted. "The final bill also failed to expand coverage for fertility treatments, including in vitro fertilization (IVF), for service members regardless of whether their infertility is service-connected."
Several of the 124 House Democrats who voted against the NDAA cited those "culture war" policies, in addition to concerns about how the Pentagon spends massive amounts of money that could go toward improving lives across the country.
"Once again, Congress has passed a massive military authorization bill that prioritizes endless military spending over the critical needs of American families. This year's NDAA designates $900 billion for military spending," said Rep. Ilhan Omar (D-Minn.), noting the audit failures. "While I recognize the long-overdue 14.5% raise for our lowest-ranking enlisted personnel is important, this bill remains flawed. The bloated military budget continues to take away crucial funding from programs that could help millions of Americans struggling to make ends meet."
Taking aim at the GOP's push to deny gender-affirming care through TRICARE, the congresswoman said that "I cannot support a bill that continues unnecessary military spending while also attacking the rights and healthcare of transgender youth, and for that reason, I voted NO."
As Omar, a leading critic of the U.S.-backed Israeli assault on the Gaza Strip, also pointed out: "The NDAA includes a provision that blocks the Pentagon from using data on casualties and deaths from the Gaza Ministry of Health or any sources relying on those statistics. This is an alarming erasure of the suffering of the Palestinian people, ignoring the human toll of ongoing violence."
Israel—which receives billions of dollars in annual armed aid from the United States—faces a genocide case at the International Court of Justice and the International Criminal Court last month issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Israeli Defense Minister Yoav Gallant. The NDAA includes over $627 million in provisions for Israel.
Congresswoman Delia Ramirez (D-Ill.), who voted against the NDAA, directed attention to U.S. President-elect Donald Trump's proposed Department of Government Efficiency (DOGE), set to be run by billionaires Elon Musk and Vivek Ramaswamy.
"How do we know that DOGE is not a good-faith effort to address wasted funding and unaccountable government? The NDAA passed today," Ramirez said. "Republicans overwhelmingly supported the $883.7 billion authorization bill even though the Pentagon just failed its seventh audit in a row."
"Billions of dollars go to make defense corporations and their investors, including Members of Congress, rich while Americans go hungry, families are crushed by debt, and bombs we fund kill children in Gaza," she added. "No one who voted for this bill can credibly suggest that they care about government waste."
Rep. Ro Khanna (D-Calif.), who also opposed the NDAA, wrote in a Tuesday opinion piece for MSNBC that he looks forward to working with DOGE "to reduce waste and fraud at the Pentagon, while strongly opposing any cuts to programs likeSocial Security, Medicare, the Department of Veterans Affairs, or the Consumer Financial Protection Bureau."
"We should make defense contracting more competitive, helping small and medium-sized businesses to compete for Defense Department projects," Khanna argued. "The Defense Department also needs better acquisition oversight. Defense contractors have gotten away with overcharging the Pentagon and ripping off taxpayers for too long."
"Another area where we can work with DOGE is reducing the billions being spent to maintain excess military property and facilities domestically and abroad," he suggested. "Finally, DOGE can also cut the Nuclear-Armed Sea-Launched Cruise Missile program."
The congressman, who is expected to run for president in 2028, concluded that "American taxpayers want and deserve the best return on their investment. Let's put politics aside and work with DOGE to reduce wasteful defense spending. And let's invest instead in domestic manufacturing, good-paying jobs, and a modern national security strategy."
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