While Harry the Hypocrite and his fellow Democrats cry about the big oil companies profits old Harry is helping to screw the taxpayer again. As usual the Democrats are playing the game of “Its ok when we do it, but bad whenever our opponents do it”. Kinda like during the presidential campaign when Obama received twice the dirty money from “Wall Street” but yet they still bashed Republicans as those evil takers of Wall Street money. Harry and his friends “Do as I say, not as I do” politics are a joke. While they whine and cry and demand transpareny from corporate america they turn around and fight against transparency for there big unions supporters. They advocate for laws like the “Fairness Doctrine” aimed at muzzling conservative talk radio but have no problem with 95% of the media that happens to tilt in there favor. During the recent debate on what fat to cut out of the federal budget old Harry just could not bear to see his “Cowboy Poetry” earmark cut but raising taxes was ok. With the price of gold and other minerals skyrocketing why should’nt the companies many whom are foreign not be asked to pay there fair share. Its bad enough that friends of the Obama adminstration like G.E. don’t pay any taxes but why are we letting foreign corporate mining interests slide by scott free?
Minerals Mined on Federal Land Spared Taxes, Aided by Senator Reid
By William Lajeunesse
While Democrats rip into oil and gas companies for failing to pay their “fair share” because of tax breaks Congress gave them, another special interest break they’re not talking about is the billions of dollars worth of gold, silver, uranium and other minerals that mining companies take off federal lands for which they pay nothing.
“They don’t pay a dime, not a penny for the gold and uranium they remove from public lands,” says Steve Ellis of Taxpayers for Common Sense. “Virtually every other country in world charges a royalty on hard rock minerals. It is absurd that we don’t do this.”
Both mining and oil companies pay corporate taxes, and both get generous write-offs in the tax code.
But mining companies get two huge subsidies oil companies do not: leases and royalties.
Mining entities pay no more than $5 an acre for land from which they extract billions of dollars worth of minerals. By contrast, multinational oil and gas firms are required to competitively bid against one another just for the right to drill on specific leases. Those bids typically pay taxpayers from tens to hundreds of millions of dollars, depending on how much oil a company believes is in the field.
A royalty or fee represents an annual percentage the federal government charges based on the value of the resource extracted from public lands. For oil and other fuel sources, the numbers are in the double-digits.
The government receives 12.5 percent in royalties for onshore oil and gas while the royalties for offshore drilling amount to18.75 percent. For coal, that number is 8 percent for underground mining and 12.5 percent for surface mining.
For gold, silver, uranium and copper mining: 0 percent
Reformers in Congress tried to raise the last figure but failed.
In 1993, the House passed a bill imposing an 8 percent royalty, but Sen. Harry Reid, D-Nev., helped kill an agreement in the Senate. In 2007, West Virginia Rep. Nick Rahall helped pass a bill in the House that imposed a 4 percent royalty on gross revenue on existing operations and 8 percent on new operations. Again Reid stepped in, saying the House bill “won’t stand over here.”
“When you talk about collecting a royalty off the top, irrespective of production costs, that is an unsustainable situation,” said Carol Raulston of the National Mining Association.
In 2008, according to the National Mining Association, about $20 billion worth of metals were sold in the U.S. from mines here covered by existing law. With a 4 percent royalty, that translates into at least a $4 billion in payments for minerals owned by U.S. taxpayers.
“This is a pirate story with the public lands profiteers robbing the American people blind,” Rahall said in November 2007. “The robbery of American gold and silver must stop.”
But it hasn’t.
Since taking office, Reid has received $750,000 in campaign contributions from the mining industry, according to the Center for Responsive Politics. That number includes $127,000 from Nevada’s two largest gold producers in the 2010 election. Together, those two companies had profits of $5 billion last year yet they paid taxpayers nothing for minerals taken off public lands.
“Senator Reid through the years has aligned himself with those interests to thwart mining law reforms time and time again,” Ellis said.
While Ellis and others blame Reid, the mining association is happy to have him in their corner.
“Senator Reid is one among many who don’t want to see domestic mining killed off in this country,” Raulston said.
According to Yahoo Finance, three of the 10 most profitable industries in the U.S. right now are in mining, including copper, gold and silver, which enjoy a 47 percent net-profit margin. Oil and gas exploration, by contrast, ranks 50th with a net margin of 11 percent.
Yet oil and gas are singled out, particularly by Reid.
“We should all agree, in the interest of fairness, common sense and saving taxpayer money that we can cut out corporate welfare to those big oil firms who need it the least,” Reid said last week.
“Senator Reid has always been open to reasonable hardrock mining reform that protects jobs while ensuring the industry pays its fair share,” a Reid spokesman said. “However, I’d want to change the subject too if I had to defend billions in government giveaways to big oil corporations with gas prices so high in Nevada and across the country.”
President Obama weighed in on Saturday, noting that the “American people shouldn’t be subsidizing oil companies at a time when they’re making near-record profits.”
Gold and silver both closed last week near record highs.
The current crowd in the White House love’s to bash people who create wealth and fuel our economy unless of course your in there “Circle Of Friends”. Rahm Emanuel is a poster child for this liberal hypocrisy, they love to tell the rest of us that we don’t pay enough tax, we make to much money or we eat the wrong food……. But they always seem to apply these rules differently when it concerns there taxes, there income, there ethics. The absolute hypocrisy is often so over the top that its just beyond comprehension. The Clinton crowd took this disgusting tactic to a never before seen level. Take a look at the incomes of Bill & Hillary, Al Gore or any of the major players involved most of whom have been recycled by the Obama administration who are blazing there own trail of corruption and dirty deals. The Treasury Secretary who failed to pay taxes all the way to Michelle Obama and her role in patient dumping while she worked for University of Chicago Medical Center.
This crowd is infamous for getting “opportunities” that would land the rest of us in jail. They love to tax us into the poor house to pay for there lunacy but aren’t real tidy at paying there own.
Obama’s nominee to be chief performance officer, Nancy Killefer, $946.69 lien on her property in 2005 for failure to pay taxes. Treasury Secretary Tim Geithner, who failed to pay more than $40,000 in payroll taxes when he worked for the International Monetary Fund, and Secretary of Health and Human Services nominee Tom Daschle, $140,000 in back taxes and interest, having failed to disclose more than $300,000 in past income, including the use of a car and driver for three years. Whether its Bill Clinton claiming donated used underwear
on his taxes or Charlie Rangel who had to fork over nearly $11,000 in back taxes last year after The Post reported that he failed to disclose more than $75,000 in rental income on his Dominican Republic villa. These self righteous pricks play by there own set of rules and will screw the rest of us blind to enrich themselves.
By Abdon M. Pallasch
Is there anything wrong with mayoral candidate Rahm Emanuel making $18.5 million dollars as an investment banker in the 2 ½ years after he got out of the Clinton White House – much of it from Clinton donors?
“I defy you to tell me anybody you know who jumped out of government into a business for which he had no credentials or background, made $18.5 million in two years and then jumped back into government,” said Gery Chico, Emanuel’s rival for the mayor’s office.
“I’m not saying it’s illegal, but let’s call it what it is: As an insider he took advantage of the knowledge and contacts he made at the White House to make money,” said another rival, City Clerk Miguel del Valle. “He made a hell of a lot of money in a short of amount of time. How many people have that kind of opportunity, to go from being on the inside to being on the outside, take advantage of the fact you were on the inside to make $18.5 million?”
What credentials did Emanuel present to go to work in investment banking after a career raising campaign funds for Mayor Daley and President Clinton, then advising Clinton on policy issues?
“There is, in that culture, two types of bankers: a person who knows the numbers, industry specific; and a person who kind of also deals with relationships,” Emanuel told the Sun-Times editorial board. “I was what was considered, at that time, although I don’t think this is really interesting, relationship banking, and that’s what I did.”
Chico scoffs at Emanuel’s explanation.
“What does that mean? What’s a relationship guy? I never heard of that,” Chico said.
“He was a managing director of Wasserstein, Perella [& Co.]. How’d you get that spot? No banking experience — why am I going to hire you? He said he was a relationship manager. What’s a relationship manager? What relationship was he bringing? He was bringing in donors to the Clinton administration.”
Experts said Emanuel’s earnings put him in the top 5 percent of investment bankers. But some who watched Emanuel rake in the bucks during his brief foray into investment banking say he played the same rules as everybody else and just did it better. He had the advantage of a “golden Rolodex” coming out of the Clinton White House.
“I worked in the private sector and was remunerated as a private sector [employee],” Emanuel said.
In 1998, As Emanuel prepared to leave his post in the Clinton White House, Bruce Wasserstein, a major donor to Clinton and other Democrats, sent the head of his Chicago office to interview Emanuel about coming to work for his firm.
Despite his lack of experience, Emanuel was made managing director of the Chicago office in 1999 and put together several big deals.
“One of them, a merger between the Chicago Unicom and Philadelphia Peco, that merger not only kept the corporate headquarters here and expanded it so Chicago has one of the leading energy companies here in the city of Chicago,” Emanuel said.
That $8.2 billion merger created Exelon, parent company of Commonwealth Edison. The Obama White House tapped Exelon CEO John Rowe to lobby lawmakers to support the administration’s greenhouse gas-reducing legislation. Obama senior adviser David Axelrod has worked for Exelon.
“John Rowe and I had known each other, and when I came out of the White House, he called me and said, ‘We’re looking at doing a merger, would you guys be willing to be our banker?’ Wasserstein, Perella, we had expertise in that area,” Emanuel said.
The newly merged utility ended up laying off 3,350 workers, or 10 percent of its work force.
Emanuel also oversaw GTCR Golder Rauner’s purchase of SecurityLink from SBC Ameritech, where Emanuel’s successor as White House chief of staff, William Daley, would later become firm president.
“GTCR private equity in Chicago bought from SBC their home security business,” Emanuel said. ”That turned out to be a great business deal for the investors as well as the company, which was eventually bought by Tyco [Intl. Ltd.]”
Wasserstein, Perella was sold twice during his tenure, and Emanuel profited handsomely each time, he said.
Some of Chicago’s investment bankers who watched Emanuel work say there is no reason to be surprised or upset he earned so much money in such a short time in the business.
“Look, he’s a smart guy, he knows a lot of people — he’s got a golden Rolodex, incredible access, great recognition, he can get the right people in front of the decision-makers,” said Jeffrey Golman, head of investment banking for Mesirow Financial.
“You don’t need any special training to be a good banker,” agreed John Canning Jr., chairman of Madison Dearborn Partners and an Emanuel supporter. “He understood synergies and he understood business. He had the interpersonal skills, and he also had the smarts, and he’s aggressive.”
Emanuel made such strong contacts in the investment banking community that they contributed $1.5 million to his first run for Congress in 2002 and $5.8 million to the Democratic Congressional Campaign Committee when Emanuel headed it in 2006. They make up a large part of the $12 million he has raised in this mayoral run.
Chico, del Valle and former Sen. Carol Moseley Braun have also hit Emanuel for taking $360,000 as a board member for mortgage giant Freddie Mac.
Emanuel said investment banking was a nobler option to make money than writing a kiss-and-tell book or becoming a lobbyist after he left the White House.
Copyright © 2011 — Sun-Times Media, LLC
After the repugnant whining that Felipe Calderon did last May when addressing congress to hear now that Mexico is building a fence along its southern border to keep out illegal immigrants is not surprising. After that revolting bash America show Calderon put on I am willing to bet that you won’t see Obama, Pelosi or Reid condeming Mexico for its intolerance and unjust treatment of these poor folks just looking for a better life in Mexico. Mexico claims there building this wall to protect their citizens from terrorists and drug smugglers. So let me get this straight we build a fence to try and protect our citizens from a violent narco war and to get some control over the hordes of criminals streaming across our borders every day and where the bad guys. I guess this is like Obama bashing Wall Street while stuffing his pockets with WALL STREET money and filling his administration with Hedge fund traders and tax cheats. I guess hypocrites like to stick together, you think the media will give this hypocrisy even one line of print.
Mexico Building Fence… on Its Southern Border
Reporting from Guatemala City, Danilo Valladares of the Inter-Press Service (IPS) notes that there will be one more barrier for Guatemalan immigrants in their trek to the United States. In addition to dodging dangerous drug traffickers and immigration officials, the latest obstacle is emerging: a wall between Guatemala and Mexico.
According to the head of customs for Mexico’s tax administration, Raul Diaz, the Mexican border state of Chiapas is constructing a wall along the country’s southern border with Guatemala, along the river Suchiate which divides the countries. Diaz says the purpose of the wall is to prevent the passage of contraband, but admits, “It could also prevent the free passage of illegal immigrants.”
According to Mexico’s National Commission on Human Rights (CNDH), 500,000 people from Central America cross into Mexico illegally every year — the vast majority of them attempting to reach the United States. In addition, smugglers reportedly use the Suchiate River to move goods across the international border without paying duty taxes.
Just as Mexican authorities have opposed more strict border enforcement and the construction of a border fence along the U.S. border with their country, Mexico is now receiving a great deal of criticism from Guatemalan officials.