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Category Archives: tax evasion

READER ALERT: “Fix the Debt” Scams U.S. Taxpayers!

05 Sunday May 2013

Posted by John Loeffler in Austerity, Caesars Entertainment, CEOs, Corporations, Corruption, crime, Crooked, Cuts, Deception, Discovery Communications, Fix the Debt, Fraud, Goldman Sachs, Greed, Lobbyists, Loopholes, Millionaires, Money, Robbery, Scams, Social Security, tax evasion, Tax Havens, Tax-dodging, Taxes, Taxpayer-funded, Taxpayers, Theft, U.S., U.S. Citizens, Uncategorized, United States, UnitedHealth

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 new report by IPS and Campaign for America’s Future shows that America’s top CEOs are pocketing massive taxpayer subsidies at the same time they’re pushing austerity cutbacks in government programs that benefit ordinary citizens.

REPORT KEY FINDINGS

Thanks to a “performance pay” tax loophole, large corporations in the United States today are routinely deducting enormous executive payouts from their income taxes. In effect, these companies are exploiting the U.S. tax code to send taxpayers the bill for the huge rewards they’re doling out to their top executives.

    • During the three-year period 2009-2011, the 90 publicly held corporate members of the austerity-focused “Fix the Debt” lobby group shoveled out $6.3 billion in pay to their CEOs and next three highest-paid executives.[i]
    • These 90 Fix the Debt member firms raked in at least $953 million – and as much as $1.6 billion – from the “performance pay” loophole between 2009-2011. The exact full value of corporate windfalls from this loophole will remain impossible to compute until we have more complete mandated disclosure for executive compensation.
    • Top executives at these same Fix the Debt companies are aggressively advocating cuts to government programs that benefit the ordinary American taxpayers subsidizing their compensation. Many of these executives have also added to America’s debt and deficit by using tax havens and other accounting tricks to have their corporations avoid paying their fair tax share.[ii]
    • Health insurance giant UnitedHealth Group enjoyed the biggest taxpayer subsidy for its CEO pay largesse. The nation’s largest HMO paid CEO Stephen Hemsley $199 million in total compensation between 2009 and 2011. Of this, at least $194 million went for fully deductible “performance pay.”[iii] That works out to a $68 million taxpayer subsidy to UnitedHealth Group – just for one individual CEO’s pay. A just-released proxy reveals that Hemsley pocketed another $28 million in “performance pay” in 2012, which computes into a tax break for UnitedHealth of nearly $10 million.
  • Discovery Communications stood next in line for a government handout. Between 2009 and 2011, CEO David Zaslav pocketed $114 million, $105 million of this in exercised stock options and other fully deductible “performance pay.” That translates into a $37 million taxpayer subsidy for Discovery and its lavish executive pay policies. In 2012, Zaslav hauled in enough additional “performance pay” to generate a tax break worth $9 million.

Even big losers win with the “performance pay” loophole. Gambling titan Caesars Entertainment has hemorrhaged money in recent years, driving CEO Gary Loveman‘s stock options underwater. Loveman managed, even so, to take home $9.6 million in cash bonuses between 2009-2011, a windfall that’s generating taxpayer subsidies the firm can cash in to lower its taxes over years to come.

INTRODUCTION

Fix the Debt is a corporate-backed lobby group committed to slashing Social Security and other earned benefits and social insurance programs – all under the veil of “deficit reduction.” But, as this report documents, the very taxpayers who pay into and depend on these programs and benefits are subsidizing excessive compensation for the top executives of Fix the Debt member corporations and other large firms.

These pages calculate how much the corporations Fix the Debt CEOs manage have benefited from a federal tax code loophole that lets major firms deduct unlimited amounts off their income taxes for the expense of executive stock options and other so-called “performance-based” pay. These CEOs are raking in huge taxpayer-funded bonuses at the same exact time they’re insisting on deep cuts in the government programs that benefit ordinary Americans.

A loophole history

In 1993, amid widespread public revulsion at executive pay excess, Congress passed legislation that capped the tax deductibility of executive pay at $1 million. The ostensible message this legislation sent: No rational society can view annual executive compensation over $1 million as a reasonable business expense worthy of a tax deduction. Without putting a ceiling on executive pay, this reform aimed to prevent taxpayers from subsidizing amounts over $1 million per executive. But the law left a huge loophole. Corporations could exempt “performance-based” pay from the $1 million limit. This loophole quickly led to an explosion of “performance-based” compensation, particularly in the form of stock options.

Corporate boards of directors touted this new surge in stock options as a means to align the interests of executives and shareholders. In practice, options align only greed and the tax code. If a firm’s shares decline in value over time, shareholders lose wealth. But executives with stock options lose nothing. In fact, during stock slumps, executives often receive boatloads of new options with lower exercise prices. In 2007, for instance, Goldman Sachs gave executives options to purchase 3.5 million shares. In December 2008, after the crash had driven Goldman shares to record lows, the bank’s top executives received nearly 36 million stock options, ten times the previous year’s total. This new grant positioned Goldman executives for massive new windfalls even if the bank’s shares never regained their 2007 price level.

On the upside, stock options gains have no limit, a reality that encourages reckless, short-sighted executive behaviors designed to jack up share prices by whatever means necessary. What sort of reckless behaviors? Over the past two decades, the Institute for Policy Studies has documented the connections between massive CEO options payouts and corporate tax-dodging, excessively risky financial gambles, and accounting fraud.

Stock options also provide huge personal tax advantages for executives. If executives hold onto their shares for more than two years after the grant date and more than a year after the exercise date – the point at which the stock is transferred to the executive – they pay only the long-term capital gains tax rate on this income. This rate will rise from 15 to 20 percent as a result of the “fiscal cliff” deal, a rate still far lower than the new 2013 top marginal rate of 39.6 percent on ordinary income.

The performance pay loophole, in short, serves as a critical subsidy for excessive compensation. The larger the executive payout, the less the corporation pays in taxes. And average taxpayers wind up footing the bill.

Source:  http://readersupportednews.org/news-section2/320-80/17238-qfix-the-debtq-ceos-enjoy-taxpayer-subsidized-pay

 

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Tar Sands Tax Loophole Cost US Oil Spill Fund $48 Million in 2012, Will Cost $400 Million by 2017

25 Thursday Apr 2013

Posted by John Loeffler in Alberta Tar Sands, Americans, Arkansas, Big Oil, Bitumen, BP, British Petroleum, Canada, Corruption, Cover-up, covert operations, Crude Oil, Deepwater Horizon Oil Spill, Dirty Fossil Fuels, environmental catastrophe, environmental disaster, Exxon Valdez, ExxonMobil, Failures, Federal Government, Gas, Greed, History, Internal Revenue Service, IRS, Kalamazoo River, Leaks, Liability Trust Fund, Lies, Loopholes, Mayflower, Michigan, Money, Natural Gas, Natural Resources Committee, Oil, Oil Companies, Oil Industry, Oil Spill Liability Trust Fund, Oil Spills, Pegasus Pipeline, power abuse, Power-hungry, Safety Violations, Tar Sands, Tar Sands Oil, Tar Sands Pipelines, tax evasion, Tax-dodging, Taxes, Taxpayers, U.S., U.S. Government, Uncategorized, United States, Unsafe, Water Pollution

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A tax loophole exempting tar sands pipeline operators from paying an eight-cent tax per barrel of oil they transport in the US is costing the federal Oil Spill Liability Trust Fund millions of dollars every year. With expected increases in tar sands oil production over the next five years, this loophole may have deprived US citizens of $400-million dollars worth of critical oil-spill protection funds come 2017.

According to a report by the US Natural Resources Committee the federal government pays for immediate oil-spill response from the Liability Trust Fund which is supported by an excise tax on all crude oil and gas products in the US.

But in 2011 the Internal Revenue Service exempted tar sands oil from the tax, saying the substance did not fit the characterization of crude oil.

This exemption has come under scrutiny this week after Exxon Mobil’s Pegasus pipeline ruptured in Mayflower, Arkansas, releasing 300,000 litres of tar sands oil and water into a residential neighbourhood and surrounding wetlands. Because the line carried tar sands-derived oil from Alberta, Exxon was exempt from paying into the spill liability fund for the corrosive fuel’s potential cleanup.

The Pegasus pipeline was built in the 1940s to carry regular crude north from the Gulf Coast. In 2006, Exxon reversed the flow of the 1300 kilometre line in order to transport tar sands diluted bitumen from Illinois to the coast.

According to the Natural Resources Committee, “the spill response fund is currently at risk from running out of money because of the combined costs of BP’s Deepwater Horizon spill and Enbridge‘s Kalamazoo spill of tar sands oil…And Enbridge could still file a claim against the fund to recoup some of its costs because the company has spent well over the liability cap of $350 million for such spills.”

The Enbridge disaster in Michigan’s Kalamazoo river has cost over $820 million, making it the most expensive onshore cleanup in US history.

Enbridge, the company currently vying to build a 1172 kilometre-long pipeline from Alberta to the British Columbia coast, currently has no spill-response plan – for either onshore or offshore spills – prepared for the project.

During cross-examination in the Northern Gateway Pipeline hearings in BC, Enbridge admitted they will have no spill response plan until six months before the proposed tar sands line will begin operation.

An investigation in the Enbridge Kalamazoo disaster found the company – due to “pervasive organizational failures” – improperly respond to the pipeline breach. The US National Transportation Safety Board likened Enbridge employees to the Keystone Kops – a clumsy, incompetent troups of cops from the silent films of the early 20th century.

The estimated cleanup cost for conventional oil run at about $2000 per barrel of oil. Tar sands diluted bitumen cleanup is estimated to cost an average $29,000 per barrel of spilled oil.

The Oil Spill Liability Trust Fund was established in the wake of the Exxon Valdez oil spill, when the enormous costs of oil spill recovery were first understood on a grand scale, to ensure adequate cleanup funds were available to protect local residents and ecosystems.

As Climate Progress reported in 2010, Exxon refused to shoulder the cost of cleanup in the Valdez, where more than 11 million gallons of crude oil contaminated almost 3000 kilometres of shoreline.

“Exxon fought paying damages and appealed court decisions multiple times, and they have still not paid in full. Years of fighting and court appeals on Exxon’s part finally concluded with a U.S. Supreme Court decision in 2008 that found that Exxon only had to pay $507.5 million of the original 1994 court decree for $5 billion in punitive damages. And as of 2009, Exxon had paid only $383 million of this $507.5 million to those who sued, stalling on the rest and fighting the $500 million in interest owed to fishermen and other small businesses from more than 12 years of litigation.

Twenty years later, some of the original plaintiffs are no longer alive to receive, or continue fighting for, their damages. An estimated 8,000 of the original Exxon Valdez plaintiffs have died since the spill while waiting for their compensation as Exxon fought them in court.”

And as DeSmogBlog’s Ben Jervey reports, Exxon has a long and litigious history of evading cleanup costs.

The US is facing a dramatic increase of tar sands oil imports. As the National Resource Committee estimates, production in the Alberta tar sands is projected to rise to over 2.7 million barrels per day in 2017. The tar sands industry projects figures as high as 5 million barrels per day in 2030 and 6 million per day in 2035. Currently approved projects have the capacity to produce 5.2 million barrels per day.

“Tar sands is already the dirtiest, riskiest oil around. It shouldn’t get a free ride from the U.S. taxpayer when it comes to paying into this vital spill response fund,” said Rep. Markey, the Ranking Member of the Natural Resources Committee. “Oil companies already receive outrageous tax subsidies that total billions of dollars and there is no defensible reason for this oil spill free ride to be added to that dubious list of loopholes.”

Regardless of how many barrels of tar sands oil will be traversing US soil, none of them should be exempt from spill liability taxes. If anything, corrosive diluted bitumen should be taxed more for the inherent dangers it present to local ecologies and communities during its production, refining, and transport.

Source:  http://desmog.ca/2013/04/03/tar-sands-tax-loophole-cost-us-oil-spill-fund-48-million-2012-will-cost-400-million-2017

 

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Monsanto’s Monstrous History!

22 Monday Apr 2013

Posted by John Loeffler in 1900's, 2000, 2013, Agriculture, Americans, Animals, Barack Obama, Barry Soetoro, Big Pharma, Bilderberg Group, Bill Gates, Billionaires, Bribery, Cancer, Cancer-causing, Carcinogenic, CEOs, Chemicals, chickens, Children, citizens, Civil Rights, Civilization, Class Warfare, Clean Air Act, Clean Energy Act, Clean Water Act, climate crisis, Congress, Consumers, Contamination, Corporations, Corruption, Cover-up, covert, covert operations, cows, crime, criminal, Crooked, D.C., Dairy, dangerous, Deadly, death, Deception, Depletion, Destruction, Dirty Politics, Disaster, Diseases, DNA, Earth, Economy, Education, Elite, Environment, environmental catastrophe, environmental disaster, Environmental Protection Agency, EPA, Exposure, Extinction, Extremely Dangerous, Failure, Failures, Farm Fields, Farmers, Farming, FDA, FDA Czar, Federal Government, food, Frankenfood, Fraud, freedom restrictions, Genetic Engineering, Genetically Modified Organisms, Geneva Convention, Genocide, Global, Global Dominance, Glyphosate, GM seeds, GMO Toxicity, GMOs, God, Government-Run Mass Media, Greed, Health problems, History, Human Rights, Human Rights Violations, Humanity, Humans, Hunger, Hyper-inflation, I-522 Bill, Illegal, Inequality, Insider Trading, Intrusive, Invasion, Kids, King & Spalding, Koch Brothers, Lakes, Land, Lawmakers, Lawsuits, Lawyers, Legislation, Lethal, Lies, Lobbyists, Massive Corruption, Massive Fraud, meat, media blackout, Mega-Corporations, Melinda Gates, Mental Health, Mental Health Disorders, Mental Stability, mentally ill, Michael Taylor, middle class, Milk, Millionaires, Missouri Monsanto Bill, Money, Money Laundering, Monopolization, Monopoly, Monsanto, Monsanto Protection Act, Murder, name change, nightmare, Nutrient Depletion, Nutrition, Obama, Occupy, Occupy Monsanto, Occupy Movement, Oligarchs, One World Government, operations, Orwellian, People, Pesticides, Petitions, Photos, Planet, Plastic, Plutocracy, Poisoning, Poisonous Chemicals, Poisonous Compounds, Politicians, Politics, Pollution, Poor, Population, Population Control, Pork, poultry, Poverty, Power, power abuse, Power-hungry, President, President Barack Obama, Problems, produce, Proposition 37, Public Health, public health hazard, Resistance, Rivers, roads, Rock, Roundup, Runoff, Safe Drinking Water Act, Safety, Safety Violations, Scandal, Science, Scientific Evidence, Scientists, Secrecy, Secrets, Seeds, Senator Ron Johnson, Sickness, Side Effects, Society, Special Interests, Species, Species Extinction, Spy Planes, Spying, Starvation, State Government, State of Emergency, Statistics, Sterilization, Streams, Suicide, Superbugs, Surveillance, Surveillance Cameras, Tap Water, tax evasion, Tax-dodging, Taxes, Taxpayers, Technology, the Elite, Totalitarian, Totalitarianism, Toxic, Tracking, tyranny, U.S., U.S. Citizens, U.S. Dollars, U.S. Government, U.S. Government T.V. News Filtering, U.S. House of Representatives, U.S. President, U.S. Senate, Unacceptable, Uncategorized, Unclassified, Unconstitutional, Uneducated, United States, Unlawful, unnecessary, Unsafe, USDA, Victims, Voter Fraud, Voters, Wall St., War, Washington D.C., Washington's I-522 Bill, Waste, Wastewater, Water, Water Pollution, water supply, Wealthy, White House, WHO, World, World Health Organization (WHO), World-Wide, Youth

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How Monsanto Went From Selling Aspirin to Controlling Our Food Supply

Monsanto controls our food, poisons our land, and influences all three branches of government.

Forty percent of the crops grown in the United States contain their genes. They produce the world’s top selling herbicide. Several of their factories are now toxic Superfund sites. They spend millions lobbying the government each year. It’s time we take a closer look at who’s controlling our food, poisoning our land, and influencing all three branches of government. To do that, the watchdog group Food and Water Watch recently published a corporate profile of Monsanto.

Patty Lovera, Food and Water Watch assistant director, says they decided to focus on Monsanto because they felt a need to “put together a piece where people can see all of the aspects of this company.”

“It really strikes us when we talk about how clear it is that this is a chemical company that wanted to expand its reach,” she says. “A chemical company that started buying up seed companies.” She feels it’s important “for food activists to understand all of the ties between the seeds and the chemicals.”

Monsanto the Chemical Company

Monsanto was founded as a chemical company in 1901, named for the maiden name of its founder’s wife. Its first product was the artificial sweetener saccharin. The company’s own telling of its history emphasizes its agricultural products, skipping forward from its founding to 1945, when it began manufacturing agrochemicals like the herbicide 2,4-D.

Prior to its entry into the agricultural market, Monsanto produced some harmless – even beneficial! – products like aspirin. It also made plastics, synthetic rubber, caffeine, and vanillin, an artificial vanilla flavoring. On the not-so-harmless side, it began producing toxic PCBs in the 1930s.

According to the new report, a whopping 99 percent of all PCBs, polychlorinated biphenyls, used in the U.S. were produced at a single Monsanto plant in Sauget, IL. The plant churned out toxic PCBs from the 1930s until they were banned in 1976. Used as coolants and lubricants in electronics, PCBs are carcinogenic and harmful to the liver, endocrine system, immune system, reproductive system, developmental system, skin, eye, and brain.

Even after the initial 1982 cleanup of this plant, Sauget is still home to two Superfund sites. (A Superfund site is defined by the EPA as “an uncontrolled or abandoned place where hazardous waste is located, possibly affecting local ecosystems or people.”) This is just one of several Monsanto facilities that became Superfund sites.

Monsanto’s Shift to Agriculture

Despite its modern-day emphasis on agriculture, Monsanto did not even create an agricultural division within the company until 1960. It soon began churning out new pesticides, each colorfully named under a rugged Western theme: Lasso, Roundup, Warrant, Lariat, Bullet, Harness, etc.

Left out of Monsanto’s version of its historical highlights is an herbicide called Agent Orange. The defoliant, a mix of herbicides 2,4-D and 2,4,5-T, was used extensively during the war in Vietnam. The nearly 19 million gallons sprayed in that country between 1962 and 1971 were contaminated with dioxin, a carcinogen so potent that it is measured and regulated at concentrations of parts per trillion. Dioxin was created as a byproduct of Agent Orange’s manufacturing process, and both American veterans and Vietnamese people suffered health problems from the herbicide’s use.

Monsanto’s fortunes changed forever in 1982, when it genetically engineered a plant cell. The team responsible, led by Ernest Jaworski, consisted of Robb Fraley, Stephen Rogers, and Robert Horsch. Today, Fraley is Monsanto’s executive vice president and chief technology officer. Horsch also rose to the level of vice president at Monsanto, but he left after 25 years to join the Gates Foundation. There, he works on increasing crop yields in Sub-Saharan Africa. Together, the team received the National Medal of Technology from President Clinton in 1998.

The company did not shift its focus from chemicals to genetically engineered seeds overnight. In fact, it was another 12 years before it commercialized the first genetically engineered product, recombinant bovine growth hormone (rbGH), a controversial hormone used to make dairy cows produce more milk. And it was not until 1996 that it first brought genetically engineered seeds, Roundup Ready soybeans, onto the market.

By 2000, the company had undergone such a sea change from its founding a century before that it claims it is almost a different company. In Monsanto’s telling of its own history, it emphasizes a split between the “original” Monsanto Company and the Monsanto Company of today. In 2000, the Monsanto Company entered a merger and changed its name to Pharmacia. The newly formed Pharmacia then spun off its agricultural division as an independent company named Monsanto Company.

Do the mergers and spinoffs excuse Monsanto for the sins of the past committed by the company bearing the same name? Lovera does not think so. “I’m sure there’s some liability issues they have to deal with – their various production plants that are now superfund sites,” she responds. “So I’m sure there was legal thinking about which balance sheet you put those liabilities on” when the company split. She adds that the notion that today’s Monsanto is not the same as the historical Monsanto that made PCBs is “a nice PR bullet for them.”

But, she adds, “even taking that at face value, that they are an agriculture company now, they are still producing seeds that are made to be used with chemicals they produce.” For example, Roundup herbicide alone made up more than a quarter of their sales in 2011. The proportion of their business devoted to chemicals is by no means insignificant.

Monsanto’s pesticide product line includes a number of chemicals named as Bad Actors by Pesticide Action Network. They include Alachlor (a carcinogen, water contaminant, developmental/reproductive toxin, and a suspected endocrine disruptor), Acetochlor (a carcinogen and suspected endocrine disruptor), Atrazine (a carcinogen and suspected endocrine disruptor), Clopyralid (high acute toxicity), Dicamba (developmental/reproductive toxin), and Thiodicarb (a carcinogen and cholinesterase inhibitor).

Roundup: The Benign Herbicide?

Defenders of Monsanto might reply to the charge that Roundup is no Agent Orange. In fact, the herbicide is viewed as so benign and yet effective that its inventor, John E. Franz, won the National Medal of Technology. Glyphosate, the active ingredient in Roundup, kills everything green and growing, but according to Monsanto, it only affects a metabolic pathway in plants, so it does not harm animals. It’s also said to break down quickly in the soil, leaving few traces on the environment after its done its job.

Asked about the harmlessness of Roundup, Lovera replies, “That’s the PR behind Roundup – how benign it was and you can drink it and there’s nothing to worry about here. There are people who dispute that.” For example there is an accusation that Roundup causes birth defects. “We don’t buy the benign theory,” continues Lovera, “But what’s really interesting is that we aren’t going to be having this conversation pretty soon because Roundup isn’t working anymore.”

Lovera is referring to “Roundup-resistant weeds,” weeds that have evolved in the past decade and a half to survive being sprayed by Roundup. Nearly all soybeans grown in the United States is Monsanto’s genetically engineered Roundup Ready variety, as are 80 percent of cotton and 73 percent of corn. Farmers spray entire fields with Roundup, killing only the weeds while the Roundup Ready crops survive. With such heavy use of Roundup on America’s farmfields, any weed – maybe one in a million – with an ability to survive in that environment would survive and pass on its genes in its seeds.

By 1998, just two years after the introduction of Roundup Ready soybeans, scientists documented the first Roundup-resistant weed. A second was found in 2000, and three more popped up in 2004. To date, there are 24 different weedsthat have evolved resistance to Roundup worldwide. And once they invade a farmer’s field, it doesn’t matter if his crops are Roundup-resistant, because Roundup won’t work anymore. Either the weeds get to stay, or the farmer needs to find a new chemical, pull the weeds by hand, or find some other way to deal with the problem.

“We’ve wasted Roundup by overusing it,” says Lovera. She and other food activists worry about the harsher chemicals that farmers are switching to, and the genetically engineered crops companies like Monsanto are developing to use with them.

Currently, there are genetically engineered crops waiting for government approval that are made to tolerate the herbicides 2,4-D, Dicamba and Isoxaflutole. (These are not all from Monsanto – some are from their competitors.) None of these chemicals are as “benign” as Roundup. Isoxaflutole is, in fact, a carcinogen. Let’s spray that on our food!

Corporate Control of Seeds

No discussion of Monsanto is complete without a mention of the immense amount of control it exerts on the seed industry.

“What it boils down to is between them buying seed companies outright, their incredible aggressive legal maneuvering, their patenting of everything, and their enforcement of those patents, they really have locked up a huge part of the seed supply,” notes Lovera. “So they just exercise an unprecedented control over the entire seed sector. Monsanto products constitute 40 percent of all crop acres in the country.”

Monsanto began buying seed companies as far back as 1982. (One can see an infographic of seed industry consolidation here.) Some of Monsanto’s most significant purchases were Asgrow (soybeans), Delta and Pine Land (cotton), DeKalb (corn), and Seminis (vegetables). One that deserves special mention is their purchase of Holden’s Foundation Seeds in 1997.

George Naylor, an Iowa farmer who grows corn and soybeans, calls Holden’s “The independent source of germplasm for corn.” Small seed companies could buy inbred lines from Holden’s to cross them and produce their own hybrids. Large seed companies like Pioneer did their own breeding, but small operations relied on Holden’s or Iowa State University. But Iowa State got out of the game and Monsanto bought Holden’s.

Monsanto’s tactics for squashing its competition are perhaps unrivaled. They use their power to get seed dealers to not to stock many of their competitors products, for example. When licensing their patented genetically engineered traits to seed companies, they restrict the seed companies’ ability to combine Monsanto’s traits with those of their competitors. And, famously, farmers who plant Monsanto’s patented seeds sign contracts prohibiting them from saving and replanting their seeds. Yet, to date, U.S. antitrust laws have not clamped down on these practices.

With the concentrated control of the seed industry, farmers already complain of lack of options. For example, Naylor says he’s had a hard time finding non-genetically engineered soybean seeds. Most corn seeds are now pre-treated with pesticides, so farmers wishing to find untreated seeds will have a tough time finding any. Once a company or a handful of companies control an entire market, then they can choose what to sell and at what price to sell it.

Furthermore, if our crops are too genetically homogenous, then they are vulnerable to a single disease or pest that can wipe them out. When farmers grow genetically diverse crops, then there is a greater chance that one variety or another will have resistance to new diseases. In that way, growing genetically diverse crops is like having insurance, or like diversifying your risk within your stock portfolio.

Food and Water Watch Recommendations

At the end of its report, Food and Water Watch lists several recommendations. “There are a lot of ways that government policy could address the Monsanto hold on the food supply,” explains Lovera. “The most important thing is that it’s time to stop approval of genetically engineered crops to stop this arms race of the next crop and the next chemical.”

She also calls Monsanto “the poster child for the need for antitrust enforcement” – something that the Justice Department has yet to successfully deliver up. In fact, last November the government ended a three-year antitrust investigation of Monsanto.

A third recommendation Lovera hopes becomes a reality is mandatory labeling of genetically engineered foods. “If we had that label and we put that information in consumers’ hands, they could do more to avoid this company in their day-to-day lives,” she says.

In the meantime, all consumers can do to avoid genetically engineered foods is to buy organic for the handful of crops that are genetically engineered: corn, soybeans, canola, cotton, papaya, sugar beets, and alfalfa.

Source:  http://www.alternet.org/food/how-monsanto-went-selling-aspirin-controlling-our-food-supply?paging=off

 

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How Capitalism Is Dismembering America

22 Monday Apr 2013

Posted by John Loeffler in America, Americans, Bank of America, Big Pharma, Capitalism, CEOs, Corruption, Dirty Politics, Economic Inequality, Economy, Elite, Fraud, GDP, Goldman Sachs, Greed, Inequality, Koch Brothers, Lehman Brothers, Lies, Massive Corruption, Massive Fraud, media blackout, Medicare, Mega-Banks, Mega-Corporations, middle class, Money, Oligarchs, Payroll Tax, Plutocracy, Poor, Power, power abuse, Power-hungry, Social Security, tax evasion, Taxes, Taxpayers, U.S., U.S. Citizens, Uncategorized, United States, Wealthy

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If there’s any way capitalism can work, it has to be regulated. Otherwise greed takes over.

Too many Americans are unaware of the extreme disparities that have been caused by the unregulated profit incentive of capitalism. Our winner-take-all system is flailing away at once-healthy parts of society, leaving them like withered limbs on a trembling body, even as the relative few who benefit promote the illusion of opportunity and prosperity for all. Concerned citizens armed with facts are not fooled. Instead, the more they learn the angrier they get. And as in revolutions of the past, discontent leads to change.

Hacking Off the Poor Half of Society

Some wealthy and uninformed individuals have referred to the lowest-income 47% of Americans as the “takers,” who enjoy government benefits at the expense of the high-earning one percent. But their claim is meaningless. The total amount paid out in ‘welfare’ (Temporary Assistance for Needy Families) is less than the investment income of just three men in a single year.

The monthly TANF income for a family of four is less than what the average member of the Forbes Top 20 made in one second at the office.

The 47% don’t own stocks. They don’t own anything. The so-called ‘takers’ have ZERO wealth. The value of any assets owned by nearly half of the country is surpassed by their debt.

Slashing the Security of the Elderly

Recipients of ‘entitlements’ are accused by the uninformed of getting something for nothing. The opposite is true. According to the Urban Institute, the typical two-earner couple making average wages throughout their lifetimes will receive less in Social Security benefits than they paid in. Same for single males. Almost the same for single females.

Getting something for nothing? Yes, the rich are. Tax expenditures, which are deductions and exemptions that primarily benefit the highest-earning individuals, cost about 8% of the GDP, the same percentage that goes to Social Security and Medicare.

If just one of the tax breaks for the rich, the $113,700 cap on Payroll Tax, were eliminated, Social Security would be almost entirely funded for the next 75 years.

Slicing Up Justice

In the last few months American citizens, some of them children, have been arrested for:

·         Looking for Indian arrowheads on federal land.

·         Throwing peanuts on the school bus.

·         Lying about a home address to get the kids into a better school.

·         Sitting on a milk crate.

Meanwhile, not a single banker was arrested for these actions:

·         HSBC Bank laundered money for Mexican drug cartels.

·         Goldman Sachs designed and sold mortgage packages that were meant to fail.

·         Bank of America and Lehman Brothers hid billions of dollars of bonuses and loans from investors.

Severing the Head from the Global Body

If you could gather together the world’s 200 richest individuals, ask each one his or her net worth, get the actual numbers from Forbes, and then add it all up, the total would be more than the total wealth of half the population of the world, 3.5 billion people.

The U.S. is one of the greatest contributors to this shameful disparity. It’s no coincidence that we’re both the third least taxed developed country and the fourth highest in wealth inequality among all nations. It’s also no surprise, with so little revenue going to the general public, that our country is the fourth worst in the overall well-being of its children.

Castrating the Taxman

Corporations have doubled their profits and cut their taxes in half in ten years. The burden of taxes, which Oliver Wendell Holmes called the price of a “civilized society,” has been shifted to workers. For every dollar of employee payroll tax paid in the 1950s corporations paid three dollars. Now it’s 22 cents.

Globalization has allowed U.S. corporations to stop paying for national defense and infrastructure and all the benefits of the U.S. legal and educational systems.  All of the following companies had sizable U.S. revenues, but they claimed losses here while declaring billions of dollars of profits overseas.

·         Bank of America, with 82% of its revenue in the U.S., declared $7 billion in U.S. losses and $10 billion in foreign profits.

·         Citigroup, with 42% of its revenue in North America (almost all U.S.), declared a $5 billion U.S. loss and a $28 billion foreign profit.

·         Pfizer, with 40% of its revenues in the U.S., declared almost $7 billion in U.S. losses to go along with $31 billion in foreign profits.

·         Abbott Labs, with 42% of its sales in the U.S., declared a $256 million U.S. loss and $12 billion in foreign profits.

·         Dow Chemical, with 32% of its sales in the U.S., declared a $15 million U.S. loss against foreign profits of over $5 billion.

Conclusions

If there’s any way capitalism can work, it has to be regulated. Otherwise greed takes over. Blind greed. The sneering head at the top of the body watches limbs being chopped off, but it doesn’t seem to recognize that we’re all bleeding to death.

Source:  http://www.alternet.org/economy/how-capitalism-dismembering-america?paging=off

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