Category: Government

Harry Reid Supported Huge Tax Loophole for Wall Street and Casinos

(p. A1) WASHINGTON — In the span of a mere 11 days this month, $1 billion in future federal tax payments vanished.
As congressional leaders were hastily braiding together a tax and spending bill of more than 2,000 pages, lobbyists swooped in to add 54 words that temporarily preserved a loophole sought by the hotel, restaurant and gambling industries, along with billionaire Wall Street investors, that allowed them to put real estate in trusts and avoid taxes.
They won support from the top Senate Democrat, Harry Reid of Nevada, who responded to appeals from executives of casino companies, politically powerful players and huge employers in his state. And the lobbyists even helped draft the crucial language.
The small changes, and the enormous windfall they generated, show the power of connected corporate lobbyists to alter a huge bill that is being put together with little time for lawmakers to consider. Throughout the legislation, there were thousands of other add-ons and hard to decipher tax changes.
Some executives at companies with the most at stake are also big campaign donors. For example, the family of David Bonderman, a co-founder of TPG Capital, has donated $1.2 million since 2014 to the Senate Majority PAC, a campaign fund with close ties to Mr. Reid and other Senate Democrats. TPG Capital has large holdings in Caesars Entertainment and helps run a Texas-based energy company, both of which stand to benefit from the (p. A17) last-minute change.

For the full story, see:
ERIC LIPTON and LIZ MOYER. “Lobbyists Shield a Tax Loophole Worth $1 Billion.” The New York Times (Mon., DEC. 20, 2015): A1 & A17.
(Note: the online version of the story has the date DEC. 20, 2015, and has the title “Hospitality and Gambling Interests Delay Closing of Billion-Dollar Tax Loophole.” )

Mast Brothers Started Their Chocolate Business in Their Apartment

The Masts provide another example showing the possibility of entry into the candy business. The issue is relevant to the claim of those who support sugar quotas, that a decline in sugar prices would not be passed on to consumers in the form of lower candy prices. If there is easy entry into the candy business, then the business is traditionally competitive, and lower costs of production will be passed on to consumers.

(p. A20) In an interview on Sunday [Dec. 20, 2015], Rick Mast, who with his brother began making chocolate in a Brooklyn apartment in 2006, said the allegations were untrue — for the most part. But on the claim that the Masts were “remelters” at the start, Mr. Mast confirmed the brothers did use industrial chocolate, what is known as couverture, in some of their early creations, before settling on the bean-to-bar process for which they are now known.

“It was such a fun experimental year,” Mr. Mast said, adding that the brothers were transparent “to anyone that asked.”

For the full story, see:
SARAH MASLIN NIR. “Unwrapping a Chocolatier’s Mythos.” The New York Times (Mon., DEC. 21, 2015): A20 & A22.
(Note: bracketed date added.)
(Note: the online version of the story has the date DEC. 20, 2015, and has the title “Unwrapping the Mythos of Mast Brothers Chocolate in Brooklyn.”)

Federal Government “Deputized” the Ku Klux Klan to Enforce Prohibition Against “Immigrants, Catholics and African-Americans”

(p. C4) . . . in her new book, “The War on Alcohol: Prohibition and the Rise of the American State” (W. W. Norton), the historian Lisa McGirr tells anything but a nostalgic story. The 18th Amendment, she argues, didn’t just give rise to vibrant night life and colorful, Hollywood-ready characters, like Isidor Einstein, New York’s celebrated “Prohibition Agent No. 1.” More enduringly, and tragically, it also radically expanded the federal government’s role in law enforcement, with consequences that can be seen in the crowded prisons of today.
In The New York Times Book Review, James A. Morone writes that the book “could have a major impact on how we read American political history.” In a recent email interview, Ms. McGirr, a professor at Harvard, discussed Prohibition’s political legacy, the surprising enforcement role of the Ku Klux Klan and the character from her story she’d most like to have a drink with. Below are excerpts from the conversation.
. . .
Q. You argue that Prohibition gave rise to today’s “penal state.” How did that happen?
A. By birthing a new national obsession with crime, Prohibition — and the violence that came with it — pushed the federal government in the direction of policing and surveillance. This was the moment that saw the first national crime commission, the birth of the Uniform Crime Reports, an expanded prison system and the establishment of the Federal Bureau of Narcotics. The F.B.I. also won expanded authority.
. . .
Q. You describe how the Ku Klux Klan helped enforce Prohibition in places like Williamson County, Ill., where federal authorities deputized its members to conduct sometimes deadly raids on distilleries, bars and private homes — taking particular aim at Italian immigrants. What made the Klan such an ally in the war on alcohol?
A. The Klan sold itself to white Protestant evangelicals as a law enforcement organization, winning droves of recruits with its promise to clamp down on bootlegging. There were plenty of Klansmen who imbibed, but that did not stop them from leveraging the law to target the drinking of the presumed enemies of white Protestant nationalism: immigrants, Catholics and African-Americans.

For the full interview, see:
JENNIFER SCHUESSLER, interviewer. “A Word with Lisa McGirr; Throwing a Cold Splash on Prohibition Nostalgia.” The New York Times (Thurs., DEC. 31, 2015): C4.
(Note: ellipses added; bold in original.)
(Note: the online version of the interview has the date DEC. 30, 2015, and has the title “Lisa McGirr Discusses ‘The War on Alcohol’ and the Legacy of Prohibition.”)

The book under discussion, is:
McGirr, Lisa. The War on Alcohol: Prohibition and the Rise of the American State. New York: W. W. Norton & Co., Inc., 2015.

Irony that Kafka Statue Faces Prague City Government Building

(p. 10) Prague is sprinkled with provocative pieces by Mr. Cerny — a sculpture of a urinating man (directly in front of the Franz Kafka Museum), a statue of the Czech patron saint King Wenceslas sitting on an upside down dead horse.
His most recent installation in Prague is a sculpture of Kafka’s head, set behind the Tesco department store in the center of town. The 36-foot-high head is made up of 42 moving chrome-plated layers, which move both in synchronicity and in opposing directions.
Mr. Cerny’s original idea was a fountain featuring three figures: a robot, referencing the Czech-language writer Karel Capek, who coined the term; a Golem, representing the Yiddish language; and Kafka’s beetle, referring to the German language. “I wanted to remind people that Prague was once a city of three languages,” Mr. Cerny said.
Unfortunately, city water regulations prevented him from placing a fountain there, so instead he came up with the huge reflecting Kafka head, which is based on similar work of his on display in Charlotte, N.C., called “Metalmorphosis.”
“I loved the irony that this sculpture faces a city government building in Prague,” he said. “Imagine you’re angry because the clerks are doing nothing, only saying for you to go to another office and then another office and another until finally you hear, ‘This office is closed.’ And then you walk out of the building, and there’s the huge head of Kafka looking at you, reminding you of the irony.”

For the full story, see:
DAVID FARLEY. “Footsteps; Prague; On the Trail of Kafka’s Legacy.” The New York Times, Travel Section (Sun., DEC. 27, 2015): 10.
(Note: ellipses, and bracketed dates, added.)
(Note: the online version of the story has the date DEC. 22, 2015, and has the title “Footsteps; On the Trail of Kafka in Prague.”)

Those on the Scene Matter for Outcome of Crisis

Amanda Ripley has argued that in many disasters, it is not the well-trained “first responders” who matter most for the outcome, but those who happen to be close to the scene. The problem is that often the “first responders” do not arrive soon enough to save lives or head off the crisis. The story sketched in the passages quoted below, seems to be another example for her thesis.

(p. B1) “We had a one-minute warning,” recalled Dr. Lax, a mathematician who was the director of the university’s computer center at the time. “The son of a friend ran in” and shouted that the demonstrators were coming for the computer, he said. “It was too late to call the police and fortify.”
. . .
Jürgen Moser, a mathematician who was the director of the Courant Institute, the university’s prestigious math research center, tried to stop the demonstrators when they swarmed into Warren Weaver Hall. According to a chapter in a biography of Dr. Lax by Reuben Hersh, Dr. Moser, who died in 1999, said he was “pushed and shoved around, and was unable to deter them.”
. . .
After a two-day occupation, the protesters decided to end the takeover. But they did not carry out everything they had taken in, as two assistant professors, Frederick P. Greenleaf and Emile C. Chi, discovered when they ran in.
“We thought, ‘Let’s go take a look before the place gets locked down,’ ” Dr. Greenleaf recalled last week. “They had knocked the doorknobs off the door so you couldn’t open it.”
But there was a small window, high up in the door, and they peered in. “We could see there was an improvised toilet paper fuse,” he said. “It was slowly burning its way to a bunch of containers, bigger than gallon jugs. They were sitting on the top of the computer.”
. . .
Already, he said, smoke was curling under the door.
He and Professor Chi grabbed a fire extinguisher in the stairwell.
The only way to douse the fuse was to aim the fire extinguisher under the door. The only way to know where to aim it was to look through the window in the door, which was too high for whoever was operating the fire extinguisher to look through and aim at the same time.
So one functioned as the eyes for the pair, sighting through the window and directing the other to point the fire extinguisher up or down or left or right. “In a minute, we had managed to spritz the fuse,” Dr. Greenleaf said.

For the full story, see:
JAMES BARRON. “Grace Notes; The Mathematicians Who Saved a Kidnapped N.Y.U. Computer.” The New York Times (Mon., DEC. 7, 2015): A17.
(Note: ellipses added.)
(Note: the online version of the story has the date DEC. 6, 2015, and has the title “Grace Notes; The Mathematicians Who Ended the Kidnapping of an N.Y.U. Computer.”)

The Ripley book mentioned above, is:
Ripley, Amanda. The Unthinkable: Who Survives When Disaster Strikes – and Why. New York: Crown Publishers, 2008.

Communist Chinese One Child Laws Violated Basic Human Rights

On Sat., Jan. 17, 2016 I caught the re-broadcast of an interview with Mei Fong that C-SPAN’s web site suggests was first broadcast on Jan. 11, 2016. The interview focused on Fong’s book on the history, causes and effects of China’s one child laws. Fong is understated in her style, but it is clear that the Chinese communist government violated the rights of many Chinese citizens by forcing them to have unwanted abortions, and to undergo unwanted sterilizations. In many cases, when their “one child” died in a disaster, or of natural causes, parents desperately rushed to try to have the forced sterilization reversed.

Fong’s book, that she discussed on C-SPAN, is:
Fong, Mei. One Child: The Story of China’s Most Radical Experiment. Boston, MA: Houghton Mifflin Harcourt, 2016.

Health Spending Rises Faster

HealthCostGrowthGraphs2016-01-21.jpgSource of graph: online version of the WSJ article quoted and cited below.

(p. A3) WASHINGTON–Growth in U.S. health-care spending is accelerating after reaching historic lows, a pickup largely attributed to the millions of Americans who have gotten health coverage under the Affordable Care Act.

Spending on all health care increased 5.3% in 2014, according to a report Wednesday [Dec. 2, 2015] from actuaries at the Centers for Medicare and Medicaid Services. That compares with the 2.9% growth in 2013, which marked the lowest rate since the government began tracking the gains 55 years ago.
The return to more robust growth after a slowdown in spending had been anticipated by economists. Still, it is likely to add to criticism that the 2010 health law isn’t doing enough to rein in costs. The report, based on 2014 government numbers and published in the journal Health Affairs, follows five consecutive years where average spending growth was less than 4% annually.

For the full story, see:
STEPHANIE ARMOUR. “Health Spending Picks Up.” The Wall Street Journal (Thurs., Dec. 3, 2015): A3.
(Note: bracketed date added.)
(Note: the online version of the article has the date Dec. 2, 2015, and has the title “Growth in U.S. Health-Care Spending Picks Up.”)

Unusual Array of Groups Strongly Push Breast-Feeding

C-SPAN on Sat., Jan. 17, 2016 broadcast a thought-provoking presentation by Courtney Jung on her book Lactivism. Jung argues that an unusual array of groups strongly advocate breast-feeding for reasons that are independent of the fairly modest health benefits, for baby and mother, that result from breast-feeding.

Jung’s book, that she discussed on C-SPAN, is:
Jung, Courtney. Lactivism: How Feminists and Fundamentalists, Hippies and Yuppies, and Physicians and Politicians Made Breastfeeding Big Business and Bad Policy. New York: Basic Books, 2015.

Gene Therapy Again Showing Promise

(p. B2) Biotechnology startup Spark Therapeutics Inc. said its experimental gene therapy improved vision among patients with hereditary vision impairment in a clinical trial, without the serious safety problems that have dogged the emerging field of gene therapy in the past.
. . .
Spark said it plans to seek U.S. Food and Drug Administration approval to market its treatment next year, which could make it the first gene therapy to reach the U.S. market if regulators approve it for sale. . . .
Gene therapy involves the injection of genetic material into a person’s cells to treat or prevent a disease. The research stalled after some study participants died or developed cancer after receiving gene therapies in the late 1990s and 2000s.
But gene therapy is gaining ground again. In 2012, the European Commission approved the Western world’s first gene therapy, UniQure NV’s Glybera, for the treatment of patients with a rare enzyme deficiency. The therapy hasn’t been approved for sale in the U.S.

For the full story, see:
PETER LOFTUS. “Eye Gene Therapy Shows Promise.” The Wall Street Journal (Tues., Oct. 6, 2015): B2.
(Note: ellipses added.)
(Note: the online version of the article has the date Oct. 5, 2015, and has the title “Gene Therapy for Visually Impaired Shows Promise.” Where there were minor differences between the print and online versions, the passages quoted above follow the online version.)

“America Represents Wilderness and Freedom, and Also a Big House”

(p. A1) JACKSON HOLE, China — Yearning to breathe untainted air, the band of harried urbanites flocked to this parched, wild land, bringing along their dreams of a free and uncomplicated life.
But unlike the bedraggled pioneers who settled the American West, the first inhabitants of Jackson Hole, a resort community on the outskirts of the Chinese capital, arrived by Audi and Land Rover, their trunks filled with French wine and their bank accounts flush with cash.
Over the past decade, more than a thousand families have settled into timber-frame houses with generous backyards, on streets with names like Aspen, Moose and Route 66. On Sundays, some worship at a clapboard church that anchors the genteel town square, outfitted with bronze cowboys and a giant Victrola that sprays water.
“America represents wilderness and freedom, and also a big house,” said Qin You, 42, who works in private equity and owns a six-bedroom home that features a koi pond, a year-round (p. A8) Christmas tree and what he proudly described as “American-style” electric baseboard heating. His parents live in the house and he goes there on weekends. “The United States is cool,” he says.
. . .
. . . , Communist Party edicts and conservative commentators have sought to demonize so-called Western values like human rights and democracy as existential threats. Even if the menace is seldom identified by name, the purveyor of such threats is widely understood to be the United States.
. . .
Gao Zi, 60, a retired military employee who organizes an oil painting club for Jackson Hole residents, said that “we accepted the propaganda” back in the 1950s, when China was a closed society. “But now people have the opportunity to travel abroad and see the truth for ourselves.”
Like Ms. Gao, Mr. Qin, the investment executive, has never been to the United States but he has long admired American ideals like personal liberty and blind justice. Five years ago, after his wife gave birth to their second child, Mr. Qin says the government fined him nearly $30,000 for violating the country’s population-control policies. “This is not freedom,” he said, before continuing a tour of his expansive back patio.

For the full story, see:
ANDREW JACOBS. “JACKSON HOLE JOURNAL; Living a Frontier Dream on Beijing’s Outskirts.” The New York Times (Fri., DEC. 11, 2015): A1 & A8.
(Note: the online version of the story has the date DEC. 8, 2015, and has the title “JACKSON HOLE JOURNAL; Living a Frontier Dream on the Outskirts of China’s Capital.”)

Some Heroes Are Punished for Doing What Is Right

At some point in the last few months watched, and jotted a few notes, on a C-SPAN presentation by Ralph Peters related to his historical novel Valley of the Shadow, that I caught part of. C-SPAN lists the show as first airing on June 23, 2015. My attention was drawn when Peters started talking about Lew Wallace. I had a minor curiosity about Lew Wallace for two obscure reasons. The first is that in young adulthood my favorite actor was Charlton Heston, one of whose most notable movies was Ben Hur, which was based on a novel by Lew Wallace. The other was that as an adult Lew Wallace lived in Crawfordsville, Indiana where there is still a small museum in his old study, a museum that holds memorabilia related to the Heston Ben Hur movie. The reason I know about the museum is that I graduated from Wabash College, which is also located in Crawfordsville, Indiana.
Peters said that he was fascinated by forgotten figures and that one of these was Lew Wallace. According to Peters, Lew Wallace saved the union during the Civil War. A confederate general named Jubal Early would have seized Washington, D.C., if Wallace and an officer named Jim Ricketts had not taken the initiative to lead a force to stop Early. For doing what had to be done, Wallace risked court martial, and Wallace was indeed fired from the army. After Ricketts gave a full account of what had happened, Wallace was re-instated, but Lincoln did not approve of his receiving a new command. Peters said that this was because Wallace was unpopular with some powerful Indiana Republicans, and that Lincoln was facing an election in which he needed to win Indiana.
The above is a rough summary of Peters’s account. I don’t know if any of it is disputed by other experts. But it is a good story, and I hope that it is true.

The Peters historical novel discussed on C-SPAN, was:
Peters, Ralph. Valley of the Shadow: A Novel. New York: Forge Books, 2015.