“A Pledge To Ensure Failure, No Matter The Consequences”: Koch Brothers Push GOP Officials To Sign Anti-Climate Pledge
The Republican Party is certainly fond of its pledges. Grover Norquist, of course, has his infamous anti-tax pledge that has interfered with federal policymaking in recent decades, and in 2011, GOP presidential candidates were pushed to endorse an anti-gay pledge from the National Organization for Marriage.
But as it turns out, there’s another pledge that’s taken root in Republican politics that’s received far less attention. The New Yorker‘s Jane Mayer reports this week on the “No Climate Tax Pledge” pushed by Charles and David Koch.
Starting in 2008, a year after the Supreme Court ruled that the Environmental Protection Agency could regulate greenhouse gasses as a form of pollution, accelerating possible Congressional action on climate change, the Koch-funded nonprofit group, Americans for Prosperity, devised the “No Climate Tax” pledge. It has been, according to the study, a component of a remarkably successful campaign to prevent lawmakers from addressing climate change. Two successive efforts to control greenhouse-gas emissions by implementing cap-and-trade energy bills died in the Senate, the latter of which was specifically targeted by A.F.P.’s pledge.
By now, [411] current office holders nationwide have signed the pledge. Signatories include the entire Republican leadership in the House of Representatives, a third of the members of the House of Representatives as a whole, and a quarter of U.S. senators.
The pledge, uncovered as part of a two-year study by the Investigative Reporting Workshop at American University, forces policymakers to oppose any legislation relating to climate change unless it is accompanied by an equivalent amount of tax cuts.” [Updated: see below]
And what, pray tell, do tax cuts have to do with the climate crisis and effects of global warming? Nothing in particular, but the Koch brothers hope to make it impossible to pass any bills related to carbon emissions, and by demanding tax cuts, they’re effectively eliminating any credible policy options — as Mayer explained, “Since most solutions to the problem of greenhouse-gas emissions require costs to the polluters and the public, the pledge essentially commits those who sign to it to vote against nearly any meaningful bill regarding global warning, and acts as yet another roadblock to action.”
When President Obama unveiled his fairly ambitious new climate agenda last week, some hoped it would spur broader action in Washington. There’s still room for a comprehensive climate policy that may be more effective than the administration using the Clean Air Act to limit emissions, but it would require Congress to work towards a sensible, consensus remedy. Republicans don’t like the White House policy? Fine, it’s time policymakers sat down with environmentalists and industries to work on an alternative.
Of course, Congress can’t do much of anything with a radicalized House majority, and climate legislation appears completely out of the question — the Koch brothers have a pledge to ensure failure, no matter the consequences.
This is why we can’t have nice things.
* Update: The exact language of the pledge reads as follows: “I, ______________________, pledge to the taxpayers of the state of ______________— and to the American people that I will oppose any legislation relating to climate change that includes a net increase in government revenue.” The Koch-financed opponents of combating the climate crisis see this as different from Mayer’s description, though it’s worth emphasizing that since any meaningful policy would generate revenue, the pledge would effectively call for tax cuts to guarantee revenue neutrality. As for why far-right anti-climate activists would oppose new government revenue — which could ostensibly be applied to deficit reduction, which conservatives occasionally pretend to care about — your guess is as good as mine.
By: Steve Benen, The Maddow Blog, July 3, 2013
“Where There’s Smoke, There’s Money”: Tobacco Giant Reynolds American Inc Funded Conservative Nonprofits
Tobacco giant Reynolds American Inc. last year helped fund several of the nation’s most politically active — and secretive — nonprofit organizations, according to a company document reviewed by the Center for Public Integrity.
Reynolds American’s contributions include $175,000 to Americans for Tax Reform, a nonprofit led by anti-tax activist Grover Norquist, and $50,000 to Americans for Prosperity, a free-market advocacy outfit heavily backed by billionaire brothers Charles and David Koch.
The tobacco company’s donations are just a fraction of the nearly $50 million that those two groups reported spending on political advocacy ads during the 2012 election cycle, almost exclusively on negative advertising. Federal records show that Americans for Prosperity alone sponsored more than $33 million in attack ads that directly targeted President Barack Obama.
But the money, which Reynolds American says it disclosed in a corporate governance document at the behest of an unnamed shareholder, provides rare insight into how some of the most powerful politically active 501(c)(4) “social welfare” nonprofits are bankrolled.
Reynolds American is the parent company of R.J. Reynolds Tobacco, which makes Camel and Winston brand cigarettes.
“The shareholder specifically requested that we disclose information about 501(c)(4)s, and in the interests of greater transparency, we agreed,” Reynolds American spokeswoman Jane Seccombe said.
Large corporations — tobacco companies or otherwise — almost never release information about their giving to such groups, and it’s most unusual for the groups themselves to voluntarily disclose who donates to them.
These groups, which obtain their nonprofit status because they say their “primary purpose” is not political activity, are generally under no legal obligation to detail their funding sources. Super PACs and other recognized political committees, by contrast, must report the names of their contributors who give more than $200 and the amounts they give.
Yet during the 2012 election cycle, various social welfare nonprofit organizations, emboldened by the U.S. Supreme Court’s Citizens United v. Federal Election Commission decision in January 2010, spent more than $250 million to promote or attack federal political candidates, according to the nonpartisan Center for Responsive Politics. The source of most of that money remains a mystery.
Reynolds American’s other contributions last year to 501(c)(4) groups include $100,000 to the Partnership for Ohio’s Future, an organization run by the Ohio Chamber of Commerce that spent several million dollars in a failed 2012 ballot initiative campaign to uphold a law limiting public workers’ collective bargaining rights. It also gave $12,500 to the National Taxpayers Union, a 501(c)(4) group that backed Republican candidates last year with modest expenditures.
Ohio Chamber of Commerce Executive Vice President Linda Woggon told the Center for Public Integrity she wasn’t aware that Reynolds American planned to disclose its donation to Partnership for Ohio’s Future.
But Woggon said she did not have a problem with officials there doing so, adding that “the decision is up to the company.”
Americans for Prosperity, which in 2011 reported to the IRS it received more than $25.4 million in contributions and grants, “leaves it up to our supporters” to decide whether to reveal their donations,” spokesman Levi Russell said.
“It’s their right, and we respect it,” he said.
Officials at Americans for Tax Reform, which in 2011 reported to the IRS that it received nearly $4 million in contributions and grants, did not reply to several requests for comment.
Within the tobacco industry, Reynolds American competitor Lorillard, which manufactures Newport brand cigarettes, has no nonprofit donation disclosure policy in place.
Ronald Whitford, the company’s associate general counsel, said Lorillard “could look at possibly enhancing disclosure in the future.”
Altria, the world’s largest tobacco company, does make contributions to politically active nonprofit organizations, spokesman Bill Phelps said — but he would not name any beneficiaries.
Altria’s corporate policy only requires it disclose its contributions to 501(c)(4) nonprofits in narrow circumstances, none of which applied to its 2012 donations, Phelps said.
For example, Altria, which makes Marlboros, the top-selling cigarettes, would publicly disclose a contribution if a nonprofit used at least $50,000 specifically for “political activities” as defined by the Internal Revenue Service — but only if the nonprofit informed Altria of this fact.
The IRS considers political activity to be the “participation in, or intervention in, any political campaign on behalf of (or in opposition to) any candidate for public office.”
Therefore, by its own rules, Altria would not disclose contributions that a 501(c)(4) used to fund so-called “issue advertisements” that are sometimes barely distinguishable from ads that directly advocate for or against a politician.
Politically active nonprofit groups such as Americans for Prosperity and Crossroads GPS, which was co-founded by GOP strategist Karl Rove, together spent millions of dollars on these kinds of communications last year.
Reynolds American’s written corporate policy on nonprofit donation disclosure is similar to that of Altria. But the policy “represents the minimum disclosure threshold,” said Seccombe, the company spokeswoman.
Reynolds American specifically acknowledged its donation to Americans for Tax Reform “because of expected stakeholder interest, not because the contributions were intended to be used or were in fact used for ‘political activity’ as that term is meant for purposes of the Internal Revenue Code,” Seccombe added.
She declined to speculate on which 501(c)(4) organizations Reynolds American will donate to this year. But officials will release information on its 2013 donations early next year, she said.
The company’s actions, although limited and hardly in real time, “set a precedent” and are “to be commended,” said Bruce Freed, president of the Center for Political Accountability, which tracks and advocates for political transparency by corporations.
“We just haven’t seen this with other companies related to their giving to (c)(4)’s,” Freed said.
By: David Levinthal, The Center for Public Integrity, May 31, 2013
“The Nakedly Transparent Flouting Of The Tax Laws”: Washington Misses The Point On The Tea Party And The IRS
My pixels have been absent from these precincts while I report a feature story for The Nation, and I’ll have more to say about the ersatz Scandalpalooza being ginned up by Republicans this week, but for now I wanted to drop a quick word about just how overblown the outrage is about the Internal Revenue Service flagging groups with “Tea Party” in their name for extra scrutiny when they apply for 501(c)(4) status. Jeffrey Toobin, in a New Yorker post called “The Real I.R.S. Scandal,” succinctly explains the legal background:
It’s important to review why the Tea Party groups were petitioning the I.R.S. anyway. They were seeking approval to operate under section 501(c)(4) of the Internal Revenue Code. This would require them to be “social welfare,” not political, operations. There are significant advantages to being a 501(c)(4). These groups don’t pay taxes; they don’t have to disclose their donors—unlike traditional political organizations, such as political-action committees. In return for the tax advantage and the secrecy, the 501(c)(4) organizations must refrain from traditional partisan political activity, like endorsing candidates….
Particularly leading up to the 2012 elections, many conservative organizations, nominally 501(c)(4)s, were all but explicitly political in their work. In every meaningful sense, groups like Americans for Prosperity were operating as units of the Republican Party. Democrats organized similar operations, but on a much smaller scale. (They undoubtedly would have done more, but they lacked the Republican base for funding such efforts.)
So the scandal—the real scandal—is that 501(c)(4) groups have been engaged in political activity in such a sustained and open way.
Just how sustained and open a way? Well, in June of last year I reported from the closing weekend of the recall campaign against Republican governor Scott Walker of Wisconsin:
I drive to a microscopic town next to Racine, where a giant open field was a stop on the bus tour in which Americans for Prosperity, the fake grassroots group that fronts for the Koch Brothers, was shipping supporters from, among other places, Illinois, to these here rallies around the state. Not, they claim, to support the Walker campaign—that would violate election law—which they had nothing to do with, but just in the interest of “educating folks in the importance of the reforms.”
The three hundred or so (though National Review counts differently than me) white people—and one black, who stood precisely in the center of the front row and wore an AFP staff T-shirt—heard an AFP staffer hosanna “economic freedom, limited government, and lower taxes.” And that “even Barack Obama’s Bureau of Labor Statistics” said “we’ve created jobs in Wisconsin.” Then he introduced as an “honorary Wisconsinite,” the head of Americans for Prosperity—Wisconsin, Tim Phillips—a Southerner who made a joke about frigid weather. Apparently reverse carpet-bagging is a signal feature of this “grassroots” movement.
Then a third speaker, but I had already wandered off, bored by the conspicuous lack of energy, past a sign reading “Republican’s Are Makers Democrats Are Takers” [sic, of course], and tables featuring free DVDs on both the glories of Scott Walker and the United Nation’s plan to enslave the United States, in the direction of a second, entirely separate, stage across the field put up by the Racine Tea Party. A few minutes later, the rest of the crowd followed me there. For, yes, an entirely separate rally, which had “nothing” to do with the nonpartisan one two hundred yards away that had just ended [wink wink, nudge nudge]. There they heard Walker’s running mate Rebecca Kleefisch rant about the “big union bosses from out of state,” and how the unions were just like Goliath, and her boss was exactly like David.
Me, I fingered my slick Americans for Prosperity—Wisconsin flier, which I later noticed contained the most revealing typo in the history of politics. “The forces of BIG GOVERNMENT would like nothing more than for you to DO NOTHING,” it warned, but promised, “We are gathering citizens together from across Michigan to make phone calls, knock on doors and educate their friends, family and neighbors.”
As Toobin points out, this is the real scandal: the nakedly transparent flouting of the tax laws by groups claiming to be nonpolitical and nonpartisan. Count on the media in Washington to entirely miss that obvious point.
By: Rick Perlstein, The Nation, May 16, 2013
“Boosting Their Bottom Line”: The Koch Brothers Revel In The Sequester
Although everyone from President Barack Obama to House Speaker John Boehner has lamented the negative impact of the $85 billion budget sequestration, at least two major Washington figures are thrilled about the severe cuts. For Charles and David Koch, the sequester accomplishes the goal that motivated the billionaire brothers to help launch the Tea Party movement in 2010: weakening the federal government. And now that the cuts have begun to take effect, the Koch brothers are reveling in their success.
Americans for Prosperity, the right-wing dark money group founded by the Koch brothers in 2004, sent out an email to supporters over the weekend claiming credit for sequestration. The email, from AFP President Tim Phillips, claims, “While Speaker Boehner and the GOP deserve credit and thanks for taking a gutsy stand, it’s important to realize what an incredible impact AFP activists like you” have had in convincing Congress to slash the federal budget across the board.
“These combined efforts helped spread a message across the country that enabled House Republicans to take heart and do the right thing knowing that conservatives had their back,” Phillips continues. His full letter, which also brags that USA Today “recognized the effectiveness of AFP activists and gave us the opportunity to articulate the importance of sequester cuts,” can be read here.
The Koch brothers are also taking to the airwaves to keep up the pressure for even more cuts. Public Notice, to which Charles and David Koch donated $8 million between 2009 and 2011, released a new ad Tuesday minimizing the impact of the sequester — and encouraging the government to make even deeper cuts.
“President Obama calls sequestration a ‘meat cleaver’ that will ‘eviscerate’ government services,” the ad’s narrator ominously charges. “What is sequestration? A three-percent cut in government spending. Three cents out of every dollar the government spends. We’re more than $16 trillion in debt, and the government wastes billions each year on duplicate programs.”
“Americans have made tough choices and cut back. Washington refuses,” the ad concludes. “Call Washington and ask them why it’s so hard to cut spending.”
The ad — which ignores the fact that government spending under President Barack Obama has grown at a slower rate than it did under any president since Dwight Eisenhower was president in the 1950s — will reportedly run until March 15.
Charles and David Koch’s enthusiasm for the sequester isn’t hard to understand. Although the cuts will have a devastating effect on society’s most vulnerable, they will likely boost Koch Industries’ bottom line. The budget sequester is expected to hamstring the Environmental Protection Agency’s regulatory efforts, and Energy Secretary Stephen Chu has warned that “under sequestration, funding reductions would decelerate the nation’s transition into a clean energy economy.” Both outcomes would seem to be very good news for the oil billionaires.
By: Henry Decker, The National Memo, March 5, 2013
“Romney’s Lying Machine”: A Campaign Not Worthy Of The Public’s Trust
I’ve been struck by the boldness of Romney’s repetitive lies about Obama — that Obama ended the work requirement under welfare, for example, or that Obama’s Affordable Care Act cuts $716 billion from Medicare benefits.
The mainstream media along with a half-dozen independent fact-checking organizations and sites have called Romney on these whoppers, but to no avail. He keeps making these assertions.
Every campaign is guilty of exaggerations, embellishments, distortions, and half-truths. But this is another thing altogether. I’ve been directly involved in seven presidential campaigns, and I don’t recall a presidential candidate lying with such audacity, over and over again. Why does he do it, and how can he get away with it?
The obvious answer is such lies are effective. Polls show voters are starting to believe them, especially in swing states where they’re being repeated constantly in media spots financed by Romney’s super PAC or ancillary PACs and so-called “social welfare” organizations (political fronts disguised as charities, such as Karl Rove and the Koch brothers have set up).
Romney’s lying machine is extraordinarily well financed. By August, according to Jane Mayer in her recent New Yorker article, at least 33 billionaires had each donated a quarter of a million dollars or more to groups aiming to defeat Obama – with most of it flooding into attack ads in swing states.
In early August, “Americans for Prosperity,” one of the nonprofit front groups masquerading as a charity, and founded in part by billionaire right-wingers Charles and David Koch, bought some $27 million in ad time on spots now airing in eleven swing states.
So Romney’s lying machine is working.
But what does all this tell us about the man who is running this lying machine? (Or if Romney’s not running it, what does it tell us about a man who would select the people who are?)
We knew he was a cypher — that he’ll say and do whatever is expedient, change positions like a chameleon, eschew any core principles.
Yet resorting to outright lies — and organizing a presidential campaign around a series of lies — reveals a whole new level of cynicism, a profound disdain for what remains of civility in public life, and a disrespect of the democratic process.
The question is whether someone who is willing to resort to such calculated lies, and build a campaign machine around them, can be worthy of the public’s trust with the most powerful office in the world.
By: Robert Reich, Robert Reich Blog, August 24, 2012
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