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Timothy Kline – Thoughts, Reflections and Insights

Fracking: Gas industry pours $747 million into lobbying and Congress

As the oil and gas industry has turned increasingly to hydraulic fracturing to extract reserves, fears about groundwater contamination from the toxic chemicals used in “fracking” have intensified. And that’s prompted a $747 million spending spree by major industry players in an effort to allay those fears and influence key energy committee members in Congress, according to a new report released by Common Cause.

The report, “Deep Drilling, Deep Pockets,” suggests that the industry is pumping cash into the pockets of lawmakers in much the same way it pumps chemicals into tight shale formations to extract oil and gas. Only what it’s extracting from Congress is loopholes in environmental controls, such as legislation in 2005 that exempted fracking from regulation under the Safe Drinking Water Act.

Common Cause calculates that gas industry leaders have spent $20 million on the campaigns of current members of Congress and another $726 million on lobbying efforts related to fracking over the past ten years. The campaign contributions have increased substantially in recent years, the report found.

Current members of the House Energy and Commerce Committee have been recipients of much of this largesse, with Representative Joe Barton of Texas, the former committee chairman, topping the list with $514,945 in contributions. Only three Colorado lawmakers show up in the top one hundred recipients — Doug Lamborn clocks in at 63rd with a measly $96,600, followed by Michael Bennet (69th, $87,595) and Cory Gardner (79th, $77,500).

But with gas-friendly Governor John Hickenlooper insisting that contamination of groundwater from fracking is “almost inconceivable” and Colorado lagging behind other states in requiring disclosure of the chemicals used in fracking, look for more vigorous lobbying on the issue at a state level as the use of the controversial extraction method continues to expand.

[Read the rest of Alan Prendergast's article on Fracking and the Gas Industry]

Two wolves

Two wolves (Cherokee)

An old Cherokee is teaching his grandson about life. "A fight is going on inside me," he said to the boy. "It is a terrible fight and it is between two wolves..."

An old Cherokee is teaching his grandson about life. “A fight is going on inside me,” he said to the boy. “It is a terrible fight and it is between two wolves. One is evil—he is anger, envy, sorrow, regret, greed, arrogance, self-pity, guilt, resentment, inferiority, lies, false pride, superiority, and ego.”

He continued, “The other is good—he is joy, peace, love, hope, serenity, humility, kindness, benevolence, empathy, generosity, truth, compassion, and faith.

“The same fight is going on inside you—and inside every other person, too.”

The grandson thought about it for a minute and then asked his grandfather, “Which wolf will win?”

The old Cherokee simply replied, “The one you feed.”

Secretive lawsuit could limit access to safety warnings, advocates argue

Businesses have 10 business days to respond to each complaint before it's published. But that's not enough...

Businesses have 10 business days to respond to each complaint before it's published. But that's not enough...

One mystery company really doesn’t want you to hear about complaint that its product allegedly hurt a child.

The unnamed firm has sued the Consumer Product Safety Commission to prevent it from releasing the report to the public as part of a new database of consumer complaints, now available at SaferProducts.gov. It has also asked a federal court in Maryland to seal all court documents related to the case, filed in October.

“This company going to great lengths to keep its name secret,” said Scott Michelman, staff attorney at consumer advocacy group Public Citizen.  Along with the Consumer Federation of America and Consumers Union, Public Citizen filed an objection with the U.S. District Court in Maryland on Oct. 31, asking that the seal request be denied.

The mystery lawsuit threatens the entire concept of publicly available government complaint data, consumer advocates say.

In March, the Consumer Product Safety Commission launched SaferProducts.gov to make it easy to find consumer complaints about products and services. The site was created as the result of a law passed by Congress in 2008 called the Consumer Product Safety Improvement Act.

For the first time, relatively raw complaints — not complaints vetted or confirmed by the government agency — were made public starting in March.

Businesses have 10 business days to respond to each complaint before it’s published. But that’s not enough for the company involved in the complaint, which involves “an incident that allegedly harmed a child,” according to a report in the Washington Post.

The company involved says the lawsuit must not be made public because doing so would effectively publish the consumer complaint it seeks to quash, according to the Post.

Despite all this mystery, the lawsuit represents an important legal crossroads, Michelman said. If a company can sue to keep a complaint out of public eye, the entire concept behind the public database would be threatened, he said.

“If this company is allowed to keep a report of a potentially hazardous product out, it would effectively undermine a tool that Congress ordered created to protect consumers,” he said.

[To read the rest of this article from Bob Sullivan at Red Tape, click the link]

Big ISPs dwell in tax-break heaven, according to corporate tax study

"These companies generated so many excess tax breaks that they reported negative taxes (often receiving outright tax rebate checks from the US Treasury), totaling $21.8 billion," the report charges. "These companies' 'negative tax rates' mean that they made more after taxes than before taxes in those no-tax years."

"These companies generated so many excess tax breaks that they reported negative taxes (often receiving outright tax rebate checks from the US Treasury), totaling $21.8 billion," the report charges. "These companies' 'negative tax rates' mean that they made more after taxes than before taxes in those no-tax years."

A scathing new report on corporate tax breaks is out, and telcos and media companies figure prominently. Authored by Citizens for Tax Justice and the Institute on Taxation and Economic Policy, the survey focuses on 280 corporations that it concludes paid, on average, far less than the 35 percent corporate income tax tithe.

“Over the three years covered by our study, the average effective tax rate for all 280 companies was only 18.5 percent,” charges Corporate Taxpayers & Corporate Tax Dodgers, 2008-2010. “For the past two years, 2009 and 2010, the effective tax rate for all 280 companies averaged only 17.3 percent, less than half of the statutory 35 percent rate.”

AT&T, Comcast, and Verizon Communications appear in the study. The last company places number 19 in the survey’s list titled “30 Corporations Paying No Total Income Tax in 2008-2010.”

Below is an excerpt from that roster, highlighting the top two cited corporations, followed by Verizon at 19th place. Yes, those are minus signs next to those 2008 through 2010 tax estimates.

Company ($-millions) 08-10 Profit 08-10 Tax 08-10 Rate
1. Pepco Holdings $882 $-508 -57.6%
2. General Electric 10,460 -4,737 -45.3%
19. Verizon 32,518 -951 -2.9%

“These companies generated so many excess tax breaks that they reported negative taxes (often receiving outright tax rebate checks from the US Treasury), totaling $21.8 billion,” the report charges. “These companies’ ‘negative tax rates’ mean that they made more after taxes than before taxes in those no-tax years.”

Verizon is hardly up there with General Electric, which the report says generated an eye-popping negative 45.3 percent tax rate from 2008 through 2010, but it identifies the wireless giant’s estimated minus 2.9 percent largesse as part of a general corporate trend.

The survey also includes a list titled “25 Companies with the Largest Total Tax Subsidies in 2008-10.” According to that lineup, AT&T generated almost $14.5 billion, Verizon $12.3 billion, and Comcast $2.12 billion in tax breaks during those years. The estimated total tax breakage for all the companies is $114.8 billion.

[Read this article written by Matthew Lasar in its entirety by following this link to Arstechnica]