Corporations

Koch-Fueled Controversy Lands in Washington

On April 14 the House Oversight and Government Reform Committee, chaired by Darrell Issa (R-California), held a hearing on state and municipal debt where the key question was State Budget Cuts: Choice or Necessity?

Chairman Issa started off by framing the issue in a manner that was thrilling to Wall Street barons and corporate big wigs. He said that states will face a shortfall of $112 billion in 2012 and the reasons for this were "obvious." The primary reasons, according to Issa, are reckless spending and unfunded or underfunded pension funds. The 2008 Wall Street financial crisis and the staggering job loss, which caused state and federal tax revenues to tank, were not mentioned.

And so it went. Flying in the face of fact and reason, Republicans insisted that states spend too much and that the best way to attack the state deficit problem is on the back of unionized workers, their only organized opposition in the electoral arena.

A Prize for Simply Doing What's Right

This week I received a Ridenhour Prize for my book, Deadly Spin. I'm honored to receive the award, especially in light of my fellow recipients: former Sen. Russ Feingold of Wisconsin; the producers of a film called Budrus, about attempts to find non-violent solutions to the strife in the Middle East, and Thomas Drake, an National Security Agency contractor who blew the whistle on what he believed were corrupt practices. Past honorees have included Bill Moyers and Bob Herbert. Elite company.

It is always nice to be recognized for one's work. The prizes are supposed to honor those "who speak truth to power." But the honor is also ironically unfortunate. The need to write the book at all, to illustrate how selfish profit motives too frequently take precedence over the health care needs of real people, remains a tragedy. And sadly, that continues to be the case, even after so much has been revealed about the inner workings of insurance giants and even after a bruising political battle has been waged to change how health care is delivered in America. The fact is, I shouldn't have had to write the book. There shouldn't have to be an award for people who simply do what is simply right.

AP Pranked by Hoax Press Release Saying GE Will Repay its $3.2 Billion Tax Break

The Associated Press published a story based on a fake, emailed press release that said General Electric would respond to criticism over the amount of taxes it avoids by repaying its entire $3.2 billion tax refund for 2010 to the U.S. Treasury Department.

Court Race Throws a Spanner in the Works of Wisconsin Wingnuts

While Wisconsin Congressman Paul Ryan prepares to shut down the federal government to prove that government is bad, analysts say the radical agenda of Wisconsin Governor Scott Walker suffered a major set back today as his good friend incumbent Justice David Prosser was defeated for Wisconsin Supreme Court.

Fake "Handwriting" Boosts Junk Mail Open Rate

Fool junk mail recipients once, and then keep fooling them over and over again. That's the hope of a Virginia-based direct mail marketing company that has developed a specialized machine that makes junk mail envelopes look like they have been hand-written. RST Marketing, a Virginia-based, direct-mail marketing company, custom-makes its "Real Pen" machines and markets the technology to cash-strapped nonprofits and others seeking to raise funds or sell products through the mail. The machines can use any kind of pen, can create a custom font from any person's actual handwriting, and can even use multiple handwriting styles on the same page. RST can crank out hundreds of thousands of fake hand-addressed envelopes per day. Its high-tech machines can even fake hand-write yellow sticky notes and affix them to marketing materials by machine. The machines make envelopes look like they've come from a real person who may actually know or care about you. RST Vice President Glen Thomas says, "With Real Pen, the machines run 24 hours a day, 7 days a week, and they never take a break and never take lunch." The fake "personal" touch helps lure unsuspecting mail recipients into opening junk mail more often. Testimonials on the company's web site say the open rate for fake handwritten junk mailers is about equal to the open rate for real handwritten mailers.

Koch's Americans for Prosperity Aims at Kloppenburg, Strikes GOP Attorney General?

The Koch-funded Americans for Prosperity is behind a mailer criticizing Wisconsin Supreme Court candidate Joanne Kloppenburg for prosecutions that were trumpeted by her boss Wisconsin's Republican Attorney General J.B. Van Hollen, who is defending Governor Walker's union-busting bill in court.

Lone Star State "Reform" a Texas-Sized Distortion

When Republicans talk about how the American health care system should be reformed, they typically mention two things: allowing insurance firms to sell policies across state lines, which I wrote about last week; and malpractice reform.

Newly-elected Republican governors, like Bill Haslam in Tennessee, are also pushing malpractice reform at the state level. They contend that such reform — favored by businesses and medical associations — would not only bring down the costs of health insurance premiums, it would also bring doctors flocking to their states to practice. Former House Speaker Newt Gingrich, who is considering another run for the White House, has touted malpractice reform as one of the primary "solutions" he would pursue if elected president. He claimed during a GOP-sponsored panel last week that malpractice reform would nearly eliminate unnecessary care that results from all those tests doctors order and drugs they prescribe just because they fear being sued. "The cost of defensive medicine," he claimed, "is $800 million a year."

Insurers' Cost of Doing Business Costs Us Dearly

Since you likely don't pay as much attention to the behavior of insurance companies as I do, you probably are not aware that CIGNA, my last employer, was fined $600,000 by the North Carolina Department of Insurance earlier this week for, among other things, not charging its customers correctly.

It was the second largest fine ever levied by the state's regulators, the largest being a $1.8 million fine in 2003 against Blue Cross Blue Shield of North Carolina for underpaying claims for emergency care. The news about the CIGNA fine was picked up by a few media outlets in the state, but not many, and it got almost no press coverage outside of the state. In addition to the fine CIGNA has been ordered to pay, the company will have to shell out several hundred thousand dollars in refunds to North Carolina employers whom regulators say were charged too much over a three-year period.

Post-Japan Disaster, Legislators Dish Out Pro-Nuclear Spin

The disaster at Japan's Fukushima Daiichi nuclear power plant hasn't stopped some U.S. legislators from insisting U.S. nuclear power plants are completely safe, but that support may be based less on facts than on financial influence. Between 1998 and 2010, the nuclear industry invested over $46 million in lobbying, about $18 million of which came from the industry's trade group, the Nuclear Energy Institute (NEI). In addition to simply giving money to legislators who deal with energy legislation, the NEI has also employed congressional staffers and bestowed awards upon members of Congress. Senate Energy Resources Committee Chairman Jeff Bingaman (D-New Mexico), still supports nuclear energy, saying Japan's nuclear plant disaster hasn't altered opinions much on Capitol Hill -- but Bingaman has taken generous donations from people and institutions with vested interests in nuclear power. Over his career, Bingaman has accepted over $49,000 from Los Alamos National Laboratory, the place where the atomic bomb was invented. The country's largest owner and operator of nuclear power plants, the Exelon Corporation, has given Bingaman over $38,000, and in 2006 the Nuclear Energy Institute gave him a leadership award. Similarly, House Representative Joe Barton (R-Texas) has taken over $31,000 in donations from the Nuclear Energy Institute, and was graced with the same award from the NEI. Barton, who recently toured the Comanche Peak Nuclear Power Plant located about 80 miles southwest of Dallas, insisted to the Dallas Morning News that American nuclear plants are 100 percent safe.

Is Your Underwear Undermining Your Values? What Is Jockey's CEO Doing at a Tea Partiers' Convention and with David Koch?

MADISON--Is your underwear undermining your values? The new scrutiny of CEOs that has been ignited by the historic Wisconsin labor protests has turned up concerns close to home, very close to home--for the vast majority of people who wear underwear. To take a page from the ubiquitous Capitol One ad campaign, what's in your blue jeans? Is your underwear choice unwittingly paying the salary of a CEO who shares your values or who actively works against them?

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