Wonkier Dirt on Gordon Smith
Amid all the discussion about Gordon Smith's Iraq posturing, the Mercury's Scott Moore reminds us that Gordon Smith has always been a right-wing ideologue, not a "maverick." The case Moore cites is one that's hard to distill into a 30-second ad, but it's instructive of just how closely Smith aligned himself with Grover Norquist-style radical politics. The background:
First, some history: In 2004, Smith sponsored a provision in a tax bill (the ironically named American Jobs Creation Act) that would give multinationals a break on their taxes if they “repatriated” their profits—in other words, if they pulled their money out of offshore tax havens and brought them back into the country. Instead of the 35 percent tax rate they normally would have paid, Smith offered the low, low tax rate of 5.25 percent if they returned the money within a year.
In a chest-thumping press release sent out after the bill passed through Congress, Smith claimed that it would return $400 billion to the U.S. economy and create 660,000 jobs. At the time, critics—even in the Bush Administration—argued that the tax breaks were inappropriate
But, as the New York Times reported last Tuesday, the legislation has created no new jobs. In fact, some of the biggest beneficiaries of the program have laid off workers:
“Drug makers were the biggest beneficiaries of the amnesty program, repatriating about $100 billion in foreign profits and paying only minimal taxes,” Berenson wrote. “But the companies did not create many jobs in return. Instead, since 2005 the American drug industry has laid off tens of thousands of workers in this country.”
According to Moore, Steve Novick has railed against Smith for years--long before he ever decided to try to take Smith's seat.
“Gordon Smith has supported many outrageous policies, but this particular tax break is absurd, maybe even criminal,” Novick says. “It’s throwing money to businesses who are stashing money overseas. It’s not available to stand-up companies who are doing the right thing, and it’s going largely to companies who are evading taxes.”
Gordon Smith is bad on Iraq. But Moore's post reminds us that he's been bad on a lot of things for lot longer.
Discuss.
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July 29, 2007
Posted in in the news 2007. |
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Jul 29, '07
Gordon Smith is to right-wing ideologue as Scott Moore is to ____.
Jul 29, '07
Gordon Smith:right wing ideologue :: Scott Moore:smart, irreverent news reporter
2:05 p.m.
Jul 29, '07
I highlighted this particular tax break in my Willamette Week piece on Smith - pointing out that Pfizer alone got over $11 billion, "enough to get any company excited, with or without Viagra." I was delighted to see the New York Times take it on, both on the front page and in an editorial. I called all our local media outlets about the Times pieces and was pleased to see Moore take it up; I hope that everyone else will take note as well. Chuck Sheketoff, of course, railed against this insane tax break at the time. Remarkably, even John Snow, Bush's Treasury Secretary, opposed it. "A giveaway so outrageous that even George Bush's Treasury Secretary opposed it" might be one way of fitting it into a 30-second ad.
2:09 p.m.
Jul 29, '07
The seemingly self-evident motive for the multinationals tax break was to help Bush whittle down the national deficit. 5.25% of just the $100 billion cited for drug companies would generate an extra $5.25 billion in tax revenue. Certainly not enough to balance the budget by any means. But coupled with underfunding dozens of programs (classic Bush MO) and various other sleight-of-hand schemes it would certainly make an impact and might well help explain the improved deficit numbers we've seen over the last few years.
Remember that Bush Co. argued that his tax cuts for the wealthy would help balance the budget by increasing tax revenue via a stronger economy and thus more than make up whatever revenues were lost due to the cuts themselves.
Jul 29, '07
According to Moore, Steve Novick has railed against Smith for years--long before he ever decided to try to take Smith's seat.
Another very good reason to support Novick against Smith.
Jul 29, '07
It's too bad Enron wasn't around to take advantage of this. With all of that cash that Fastow, et al stowed away in the Bahamas or Virgin Islands or wherever, we could have seen 5 cents on the dollar instead of zilch.
Re-elect Gordon Smith. He's rich enough and sneaky enough to know how tax cheats hide their money, and he's one of them, so a nickel per $1.00 of what they owe is just fine. Yay for America!
I hear the golf in these tax havens is just terrific.
Seriously, look at what Smith's ex-staffers are doing. Besides getting fat and ethically gross, they are representing the firms that are most adept at screwing the rest of us in an unwelcome orifice, most unwelcome-like.
Jul 29, '07
Seriously, look at what Smith's ex-staffers are doing. Besides getting fat and ethically gross, they are representing the firms that are most adept at screwing the rest of us in an unwelcome orifice, most unwelcome-like.
Links to information about these staffers?
Jul 29, '07
http://www.gallatingroup.com/people/dan-lavey.php
Here's exhibit A, though I bet that picture was taken 10+ years ago.
10:47 p.m.
Jul 29, '07
My favorite line...
Seriously, those are qualifications for anything?
Jul 29, '07
Well, he had to pay something like $60,000-$100,000 to join both, so that means he has the ability to suck money from his clients.
And if you can suck money from your clients, you must have connections to someone who can get stuff done.
Jul 30, '07
Actually, I like the MAC club. A nice place to hang and you meet many interesting people.
Jul 30, '07
I like the MAC club. A nice place to hang and you meet many interesting people.
The same goes for a bath house, but billy has the right idea. Courts have even ruled that these "clubs" have as much to do with professional/political networking as they do with working out.
Jul 30, '07
Great rhetorical tactic by Novick - describing Smith's failed economic policy as "absurd, maybe even criminal" - the same language, I believe, that Smith used against Bush's Iraq policy shortly after Election Day 2006. "Absurd, maybe even criminal" should become a buzz-phrase for the OR-Sen race. Like: "Voting for Gordon Smith is absurd, maybe even criminal."
Jul 30, '07
This is from today's (July 30) Oregonian:
"Smith's balancing act was on display July 11, as the Senate began debating an amendment to bring troops home from Iraq that was co-sponsored by Smith. Sen. John McCain, R-Ariz., a fierce supporter of the war, led opposition to the amendment. Smith made it clear in a floor speech that his support for bringing the troops home would not hinder his continued support for McCain.
"When friends have differences, you don't walk away from a friend," Smith said. "I don't."
On the surface a nice sentiment, but Smith should realize that friends don't led friends drive when they're drunk. In McCain's case the man is drunk with ambition and warmongering.
10:36 a.m.
Jul 30, '07
"On the surface a nice sentiment, but Smith should realize that friends don't led friends drive when they're drunk. In McCain's case the man is drunk with ambition and warmongering."
It's a moronic position anyway. He's not supporting someone to be Friend of Gordon; he's supporting them for PRESIDENT. And if he disagrees with the guy he supports on the biggest issue in the election, how can he support the guy who most wants a continuation of Bush policy?
Jul 30, '07
...that Gordon Smith has always been a right-wing ideologue...
Jeez, tell me something I didn't already know guys...
Jul 31, '07
Smith's change of heart on Iraq may be genuine or just a ploy to get re-elected. Iraq will still be the main issue in 2008 and for single issue voters,and this may be enough to convince them. As many others have pointed out, Smith has been a lock step lemming with this administration and I doubt that he will change if he gets another term. Anybody but Smith?