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Home Front: Politix

Saddam paid for Congresscritter visit in run up to war

2008-03-27

"Can I buy them? Yes I can!!" Saddam Hussein's intelligence agency secretly financed a trip to Iraq for three U.S. lawmakers during the run-up to the U.S.-led invasion, federal prosecutors said Wednesday. An indictment unsealed in Detroit accuses Muthanna Al-Hanooti, a member of a Michigan nonprofit group, of arranging for three members of Congress to travel to Iraq in October 2002 at the behest of Saddam's regime. Prosecutors say Iraqi intelligence officials paid for the trip through an intermediary. At the time, the Bush administration was trying to persuade Congress to authorize military action against Iraq. The lawmakers are not named in the indictment but the dates correspond to a trip by Democratic Reps. Jim McDermott of Washington, David Bonior of Michigan and Mike Thompson of California. How, now how did I know that McDermott and Bonior were on the list? And where was Cindy McKinney? None was charged and Justice Department spokesman Dean Boyd said investigators "have no information whatsoever" any of them knew the trip was underwritten by Saddam. "Obviously we didn't know it at the time," McDermott spokesman Michael DeCesare said Wednesday. "The trip was to see the plight of the Iraqi children. That's the only reason we went." Never met a thug he didn't like, however ... During the trip, the lawmakers expressed skepticism about the Bush administration's claims that Saddam was stockpiling weapons of mass destruction. "War is not the answer," Bonior, who is no longer in Congress, said at a news conference while on the trip. "There is a way to resolve this." "War is not the answer," Bonior, who is no longer in Congress, said at a news conference while on the trip. "There is a way to resolve this." So it was all about the children ... Though weapons of mass destruction ultimately were never found, the lawmakers drew criticism for their trip at the time. Oklahoma Sen. Don Nickles, the second-ranking Senate Republican at the time, said the Democrats "sound somewhat like spokespersons for the Iraqi government." Al-Hanooti was arrested Tuesday night while returning to the U.S. from the Middle East, where he was looking for a job, his attorney, James Thomas, said. Al-Hanooti pleaded not guilty Wednesday to charges of conspiracy to act as an unregistered agent of a foreign government, illegally purchasing Iraqi oil and lying to authorities. He was being held on $100,000 bail. Thomas said Al-Hanooti would "vigorously defend" himself against the charges but he could not discuss the specifics of the case since he had seen none of the evidence. "I can say no more!" Al-Hanooti worked on and off from 1999 to 2006 as a public relations coordinator for Life for Relief and Development, a Michigan group formed after the first Gulf War to fund ammunition humanitarian work in Iraq. FBI and Joint Terrorism Task Force agents raided the charity's headquarters in 2006 but charged nobody and allowed the agency to continue operating. Prosecutors said Al-Hanooti was responsible for monitoring Congress for the Iraqi Intelligence Service. From 1999 to 2002, he allegedly provided Saddam's government with a list of U.S. lawmakers he believed favored lifting economic sanctions against Iraq. In exchange for coordinating the congressional trip, Al-Hanooti allegedly received 2 million barrels of Iraqi oil, prosecutors said. DeCesare said McDermott was invited to go to Iraq by a Seattle church group and was unaware of any other funding for the trip. And he didn't ask, either. Rather uncurious fellow about some things ...

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Europe

Eurostan’s WTO Hi-jinks to Compel US Tax Rate Reductions?

2004-03-07

In the Kafkaesque world of tax law, sometimes a second wrong can produce a right. At least that’s the hope since the European Union decided to impose sanctions on the U.S. for giving tax preferences to exporters after the World Trade Organization repeatedly ruled this out of bounds. Now Congress has a chance to reform tax laws to make U.S. companies more competitive. The tax breaks, now known as the extraterritorial income exclusion, were designed to offset the perverse effects of U.S. high tax rates and system of world-wide taxation--the first wrong. This system handicaps U.S. firms competing against foreign counterparts whose governments tax only their home income. Then came the second wrong. Even though the Europeans themselves rebate value-added taxes on their exports, they decried the U.S. tax breaks as unfair and won their case at the WTO. That decision was disturbing on several levels, not least because it is part and parcel of a wider European effort to stifle tax competition. Nevertheless, the cloud may have a silver lining. The EU sanctions, announced Monday, may help light a fire under U.S. politicians to finally fix a tax code riddled with distortions. The ideal way to deal with this would be a reduction in U.S. corporate tax rates, now some of the highest in the world, and a switch to a territorial or border-adjustable system like most other countries have. Unfortunately, it’s too much to expect Congress to make such a giant leap all at once, especially when a large budget deficit makes it difficult to forgo revenue in the name of longer-term gains. Several bills now under consideration inspire only tepid enthusiasm, but at least they are progress. A Senate Finance Committee bill is less than thrilling, because Chairman Charles Grassley is infused with the spirit of bipartisanship, meaning that the Democrats’ tendency to use the tax code to pick winners and losers has even freer rein. As a result, two of the more ardent tax-cutters on the committee, Senators Jon Kyl and Don Nickles, have broken ranks and proposed a simpler plan that would cut the corporate tax rate. Their demarche may have little chance of passing, but it remains an important marker for the future. The most interesting proposal in the Senate Finance Committee’s bill is a temporary tax break that would give U.S. companies a chance to repatriate at a lower rate their foreign-earned income on which the 35% U.S. corporate tax rate has been deferred. J.P. Morgan estimates this pool of trapped funds at $300 billion, meaning that the government would reap a one-time revenue boost. Democratic presidential candidates have been complaining of late about "loopholes" that allow companies to escape tax by moving their headquarters abroad. But the Kerry campaign in particular has been short on specifics. Perhaps that’s because it is more accurate to say that Washington imposes tax penalties on companies that incorporate in the U.S. That’s why multinationals move out of the U.S. and foreign companies buy U.S. firms. In other words, the law of unintended consequences is at work. A system that was initially designed to discourage firms from moving operations abroad ended up hurting domestic investment. The reality is that even if U.S. multinationals do move some operations overseas, they are still more likely to buy American and invest in the U.S. than foreign firms. Though this lesson should have been learned by now, some may try to demagogue real tax reform as a sop to multinationals shipping jobs out of the U.S. Instead of adding yet more layers of complexity to the tax code and creating more distortions in the name of reducing distortions, Congress now has a chance to take some baby steps toward a simpler regime. Europe’s WTO-approved sanctions, while hard to justify on the merits, may be an important catalyst toward that goal.

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Home Front

Republicans Want Iraq to Share Costs of Rebuilding

2003-09-24

President Bush’s request to spend more than $20 billion to rebuild Iraq’s sewers, power lines and other domestic facilities is meeting resistance from an unexpected source — Republicans in Congress, who have been among the staunchest allies of the administration’s foreign policy. The GOP lawmakers are demanding that some of the money be repaid by Iraq or be provided by allies who also stand to gain from stabilizing the region. To me, that sounds like a logical request. We can lay out the money up front, but I'd expect to get it back down the road... With prospects for allied contributions dwindling, some of the lawmakers say the United States should lay claim to a share of future revenue from Iraq’s oil fields. "It’s only fair and right that a small portion of Iraqi oil revenues over the next 10 to 15 years be devoted to paying these costs," said Rep. Charles H. Taylor (R-N.C.), a senior member of the House Appropriations Committee. Although Bush administration officials have repeatedly said that they expect Iraq to pay the bills over the long run, they have rejected the idea of making the initial aid, in essence, a loan rather than a grant. That would make it harder, they say, to deliver the money quickly or to round up international support for the rebuilding effort. "The president decided to have the money provided as a grant because that is the best way to achieve the immediate and short-term objectives in Iraq — stabilization, security and getting Iraq to the point it can pay for its own reconstruction," said Trent Duffy, spokesman for the White House’s Office of Management and Budget. Okay. That makes sense, I guess. It's his call. I'da done it differently, but nobody voted for me... Said an aide to the House GOP leaders, "It is hard for members of Congress to go home and say we’re rebuilding Iraqi roads and schools, while constituents are asking, ’Why don’t you get my road built and school fixed?’" I'd like to know why the Little Woman didn't stop longer at that stop sign last night. But she was doing the driving... Republicans who support the requirement that Iraq repay the U.S. for reconstruction aid include Sens. Don Nickles of Oklahoma, who chairs the chamber’s budget committee, Kay Bailey Hutchison of Texas and George Voinovich of Ohio. They and others argue that, especially at a time when the U.S. budget deficit is growing, oil-rich Iraq should be expected to eventually pay back something for its own reconstruction. "Iraq is not Afghanistan," said Sen. Susan Collins (R-Maine). "This is a country with considerable natural resources." Nickles has raised his concerns about the reconstruction funding in meetings with Vice President Dick Cheney and Joshua Bolton, director of the White House Office of Management and Budget. Nickles believes that it is better foreign policy to give Iraq more financial responsibility, said his spokeswoman, Gayle Osterberg. A senior aide to Senate GOP leader Bill Frist of Tennessee said Republicans are proposing payback mechanisms as a way to help make the aid request more palatable to a reluctant public. Even as loans, I still don't find them too tasty. But I regard the money as being spent on the war on terror. Pay me now or pay me later, it's going to cost money. Cheaping out at this point may have a bad effect later — though if the coin had landed the other way I'd have said we should conserve resources now so we have them to spend later... Administration officials including Defense Secretary Donald H. Rumsfeld told Congress earlier this year that they expected Iraq to be able to finance much of its own reconstruction through oil revenue, frozen assets and other resources. They still say they expect that to happen in the long run. It is legitimate to question the cost of reconstruction. Building Iraq is not the responsibility of the U.S. This should be done by the Iraqis. They should pay for the construction of hospitals, prisons, postal service, firefighters etc. Giving someone $20 billion will cause a "moral hazard" problem: (1) Other nations will not contribute leaving the U.S. alone in reconstruction process (this is one of the reasons Iraq Donor Conference is a failure - even Japan is not cooperating - so far they spent only $86 million and are considering for $1 billion next year. A similar meeting for Afghanistan held in Tokyo last year raised pledges of $4.5 billion). (2) Iraqis are taking for granted the American assistance and expect Americans to build their country for free. I can understand the money spent for security of the borders, new Iraqi army, police force, etc., but mobile phones, post office, firefighters, marshlands, infrastructure are their responsibility. The money spent on those should be in the form of loans not grants.

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Home Front

McDermott and Bonior try to defend the indefensible...

2002-10-02

Two Democratic congressmen, brushing off criticisms they were aiding the enemy, said Wednesday their mission to Iraq succeeded in impressing on Iraqis that war was likely if they did not agree to unfettered inspections of weapons stockpiles. Reps. Jim McDermott of Washington and David Bonior of Michigan, both Vietnam War-era veterans, also said at a news conference that they felt obligated to inform Americans of the risks they faced by going to war with Iraq. I'm a Vietnam-era veteran, too. Even got my little yellow-green-red ribbon. I say they're jerks... McDermott said he was stunned by "the extent to which the Iraqi people are ready to fight house-to-house." He asked whether the United States should "be taking on this country all by itself when the Arab world is now seething with recruits for Osama bin Laden." Sure. They'll be seething with recruits for Osama bin Laden regardless of what we do, so why not? The two lawmakers, and Rep. Mike Thompson, D-Calif., returned Tuesday night from their visit to Baghdad and other Iraqi cities. In news conferences while in Iraq they urged the Iraqis not to interfere with the inspection process and the Bush administration to give those inspections a chance to work before taking military action. How about the part where they called Bush a liar? Republican leaders strongly criticized the visit, with Sen. Don Nickles of Oklahoma, the Senate's No. 2 Republican, saying they "both sound somewhat like spokespersons for the Iraqi government." The word "somewhat" turns that into an understatement, doesn't it? House Majority Leader Dick Armey, R-Texas, said McDermott was "totally out of touch with the most fundamental tenet of congressional responsibilities" and that he and other liberals had "just basically regressed to their childhood days of Vietnam War protests." McDermott said he was not a pacifist but had "a responsibility as a patriot, as someone who loves his country, to speak up for what I believe." War, added Bonior, "destroys lives in such a profound way." Yes, it's bad for Children™ and other living things. So're bloody-handed dictators. Y'know what else destroys lives in a really profound way? Mealy-mouthed congressmen who go tromping off to enemy nations to have their pictures taken and badmouth their country... McDermott stressed that "I don't trust Saddam Hussein under any circumstances except when I'm sitting at his feet," but said President Bush had confused the issue by shifting the issue from disarmament, which could be accomplished diplomatically, to regime change, which would require war. And war would require a congressional authorization, and that would require a vote, and a vote would be recorded as part of the public record. And if a congressman represents a district that doesn't believe in war an' stuff, and has a deep and abiding admiration for dictators, we couldn't possibly have that. Best to avoid the whole thing...

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Home Front

Terror strikes on US

2001-09-11

CNN September 11, 2001 Posted: 5:14 p.m. EDT In an apparently coordinated terrorist attack against the United States, four commercial passenger jets crashed on Tuesday, three of them into significant landmarks. U.S. intelligence officials tell CNN "there are good indications that persons linked to Osama bin Laden may be responsible for these attacks." The sources say they based the statement on specific information that had been gathered Tuesday. Bin Laden is the Saudi millionaire who has been blamed for terror attacks against U.S. interests and is believed to be in Afghanistan. American Airlines Flight 11, carrying 81 passengers and 11 crew members, slammed into the north tower of the World Trade Center in Manhattan shortly before 9 a.m. About 15 minutes later, United Airlines Flight 175 from Boston to Los Angeles, with 56 passengers and nine crew members on board, crashed into the south tower. Both towers eventually collapsed in a shower of debris and plume of thick dust. A half-hour after the second crash, American Flight 77 took off from Washington, D.C.'s Dulles Airport en route to Los Angeles, California, carrying 58 passengers and six crew members -- but crashed into the Pentagon instead. Less than an hour after the third crash, United Flight 93 en route from Newark, New Jersey, to San Francisco crashed near Shanksville, Pennsylvania, with 38 passengers and seven crew aboard. Huge chunks of debris falling from remains of World Trade Center towers more than six hours after the crashes. Firefighters could get no closer than 2 blocks from the burning hulk. The FBI said it believes all four planes, carrying a total of 266 people, were hijacked. The Pentagon, the White House, the State Department, the Justice Department, the Capitol, the CIA and all other government buildings in Washington are evacuated. Federal Emergency Response Plan is implemented immediately after first attack, according to White House. All U.S. embassies and U.S. forces around the world are put on high alert. The highest alert is THREATCON DELTA. All federal agencies implement continuity plans to make sure U.S. government continues to function effectively. President Bush calls the crashes "a national tragedy." Later in the day, Bush issues a statement from Barksdale AFB near Shreveport, Louisiana. "Make no mistake: The United States will hunt down and punish those responsible for these cowardly acts." Secret Service secures President Bush, Vice President Cheney, Speaker of the House Dennis Hastert and key members of Bush's Cabinet and national security team. Air Force One lands in Omaha, Nebraska, and spokeswoman Karen Hughes says Bush is in a secure location. Mullah Omar, the Taliban spiritual leader, condemns the attacks and denies that Osama bin Laden, was responsible. Mullah Abdul Salam Zaeef, the Taliban ambassador to Pakistan, says in reaction to the terror attacks that "we want to tell the American children that Afghanistan feels your pain and we hope that the courts find justice." In the first-ever national ground stop of aircraft, all flights nationwide are stopped at their departure airports. International flights are initially diverted to Canada; FAA says later, however, that 22 U.S.-bound international flights will be allowed to land. Transportation Secretary Norman Mineta tells FAA to suspend operation of all flights until at least noon Wednesday. He also issued orders controlling the movements of all vessels in U.S. waters. In New York, more than 10,000 rescue personnel rush to the scene. Evacuation of lower Manhattan begins. Israel evacuates all of its missions around the world. The Centers for Disease Control and Prevention in Atlanta is evacuated. CDC prepares emergency response teams in case they become necessary. Senate Majority leader Tom Daschle, D-South Dakota, Republican leader Trent Lott, R-Mississippi, Sen. Harry Reid, D-Nevada, Sen. Don Nickles, R-Oklahoma, House Democratic leader Rep. Dick Gephardt, D-Missouri, and House Speaker Rep. Dennis Hastert, R-Illinois, were taken by helicopter to an undisclosed location. Philadelphia landmarks are evacuated. In Chicago, the Sears Tower is evacuated; United Nations in New York is evacuated. Two aircraft carriers and five other ships are deployed along the East Coast of the United States, and two aircraft carriers go to New York area, all from Norfolk, Virginia. The New York Port Authority closes all bridges and tunnels into the city. U.S. stock markets close after the New York attacks and will remain closed Wednesday. NATO sends home all non-essential personnel from its Brussels, Belgium, headquarters. The Immigration and Naturalization Service puts the U.S. borders with Mexico and Canada on highest state of alert. Los Angeles International Airport is evacuated. Disney closes its parks in Orlando, Florida, and Disneyland in Anaheim, California. FEMA implements plan established for such events: FBI leads investigation and Justice Department heads crisis management. White House spokeswoman Karen Hughes says FEMA activates eight urban search and rescue teams in New York and four teams are at work at Pentagon. Three Palestinian groups -- Hamas, the Democratic Front for the Liberation of Palestine and Islamic Jihad -- deny responsibility for the attacks, but blame U.S. policies in the Mideast. Washington, D.C., and San Francisco declare states of emergency. A Delta flight makes emergency landing in Cleveland and all passengers are safely evacuated. Federal officials search the plane for a possible bomb.

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