U.S. corporations
aren't even subtle about it. Waving a flag and
carrying a big shovel, corporate interests are
scooping up government benefits and taxpayer money in
an unprecedented fashion while the public is
preoccupied with the September 11 attacks and the war
in Afghanistan.
Shamelessly, the Bush administration and Congress
have taken advantage of the patriotic outpouring to
fulfill the wish lists of their most generous
corporate campaign donors. Not only is the Treasury
being raided, but regulations protecting everything
from personal privacy to environmental safeguards are
under attack by well-heeled lobbyists who want to
stampede Congress to act while the media and citizens
are distracted.
Only a handful in the Congress members like Senator
Russell Feingold of Wisconsin and Representatives
Peter DeFazio of Oregon and Barbara Lee of California
have shown the courage to question the giveaways and
the quick wipeout of civil liberties and other
citizen protections.
In most cases, such as the US$15 billion airline
bailout and corporate tax breaks, legislation has
been pushed to the forefront with little or no
hearings and only fleeting consideration on the floor
of the Senate and the House of Representatives.
One of the boldest grabs for cash has been by
corporations seeking to eliminate the Alternative
Minimum Tax (AMT), which was enacted during the
Reagan administration to prevent profitable
corporations from escaping all tax liability through
various loopholes. Not only do the corporations want
relief from the current year's AMT taxes, but they
are seeking a retroactive refund of all AMT taxes
paid since 1986.
This giveaway, as passed by the House of
Representatives, would make corporations eligible for
US$25 billion in tax refunds. Just 14 corporations
would receive US$6.3 billion of the refund. IBM gets
US$1.4 billion; General Motors, US$833 million;
General Electric US$671 million; DaimlerChrysler,
US$600 million; Chevron-Texaco, US$572 million.
The 14 biggest beneficiaries of the minimum tax
repeal gave $14,769,785 in "soft money" to
the national committees of the Democratic and
Republican parties in recent years.
Soon to join the bailout parade is the nation's
insurance industry, which is lobbying the Congress to
have the federal government pick up the tab for
future losses like those stemming from the attack on
the World Trade Center.
Proposals are on the table for taxpayers to either
pick up losses above certain levels or to provide
loans or loan guarantees for reinsurance.
The insurance companies want federal bailouts, but
they continue to insist on regulation only by
underfunded, poorly staffed state insurance
departments, most of which are dominated by the
industry. Any bailout or loan program involving the
insurance companies must include provisions which
ensure that insurance companies cannot refuse to
write policies and make investments in low- and
moderate-income and minority neighbourhoods.
Allegations about insurance company
"red-lining" or discrimination against
citizens in these areas have been prevalent for many
years. It would be a terrible injustice for citizens
to be forced to pay taxes to help bail out insurance
companies that discriminate against them.
People-concerns have been missing in all the
bailouts. When the airline companies walked off with
US$15 billion-plus in bailout money, the thousands of
laid-off employees airline attendants, maintenance
crews, baggage handlers and ticket counter employees
received not a dime. Attempts to include health
benefits and other help for these employees were
shouted down on the floor of the House of
Representatives.
Last month, more than 400,000 employees lost their
jobs nationwide and the national unemployment rate
rose to 5.4%, the highest level since 1996. The
Bureau of Labor Statistics said roughly a fourth of
the lost jobs were the direct result of the terrorist
attacks of September 11. Bailouts, benefits or other
aid for these victims of the attacks? No, that's
reserved just for the corporations under the policies
of the Bush administration and the present Congress.
Yet it is the workers in the low-wage jobs- like
those in restaurants, hotels, retailing and
transportation- who are bearing the brunt of the
layoffs in the aftermath of the attacks on the World
Trade Center, according to a report from the New York
State Department of Labor. Almost 25,000 people told
the department that they lost their jobs because of
the Trade Center disaster.
An analysis by the department of the first 22,000 of
the claims found that 16% worked at bars, 14% worked
at hotels, 5% worked in air transportation and 21% in
a category termed "business services". Only
4% worked at Wall Street brokerage firms.
While more workers lose jobs, the administration is
pushing for authority to expand the North American
Free Trade Agreement (NAFTA) under new
"fast-track" authority. The Department of
Commerce concedes that at least 360,000 jobs have
been lost under NAFTA, and private research groups
estimate the total may be twice that number.
Now, with unemployment rising to alarming levels, the
administration decides to cave to pro-NAFTA corporate
demands which will only make the labor picture worse.
No bailout for laid-off workers, just a hard crack
across the knees.
As Bill Moyers [see his piece in this issue], the
author and national journalist, commented: "They
(the corporations) are counting on your patriotism to
distract you from their plunder. They're counting on
you to stand at attention with your hand over your
heart, pledging allegiance to the flag, while they
pick your pocket."
Ralph Nader
ran for President of the US in 2000. The above speech
was abridged from the Green Left Weekly, November 21,
2001 (www.greenleft.org.au).
