Senate Backs D.C. Voting Rights, But Some Local Activists Call For Statehood

The District of Columbia has moved a step closer to getting a vote in the House of Representatives. On Thursday, the Senate voted 61-to-37 to expand the size of the House by two seats, giving Washington, D.C. a single seat and giving Utah a fourth seat. Democracy Now! hosts a debate between D.C. Vote’s Eugene Dewitt Kinlow, Public Affairs Director for DC Vote Coalition, who calls the Senate’s vote as a historic victory, and Anise Jenkins, president of Stand Up! for Democracy in DC, who opposes the bill because it falls short of making Washington, D.C. the nation’s fifty-first state.

Transcript:

AMY GOODMAN: We move now to another debate, a debate that’s taking place right there in Washington, D.C. Juan?

JUAN GONZALEZ: Well, the District of Columbia has moved a step closer to getting a vote in the House of Representatives. On Thursday, the Senate voted 61-to-37 to pass the D.C. House Voting Rights Act. The bill will expand the size of the House by two seats, giving Washington, D.C. a single seat and giving Utah a fourth seat. The House is expected to soon pass the measure, and President Obama has said he will sign it into law.

The Senate approved the bill only after Republicans added an amendment to throw out Washington’s gun control laws, including its ban on semi-automatic weapons.

AMY GOODMAN: We’re joined now by two guests from Washington, D.C. Eugene Dewitt Kinlow is the public affairs director for DC Vote. On Thursday, the group hailed the Senate’s vote as a historic victory. We’re also joined by Anise Jenkins, president of Stand Up! for Democracy in DC. She opposes the bill before Congress. She says it falls far short of making Washington, D.C. the nation’s fifty-first state.

Let’s begin with Eugene Dewitt Kinlow. You are celebrating now with the Senate vote. Explain exactly what you get.

EUGENE DEWITT KINLOW: Well, you know, we’re celebrating with some mixed emotions. One, we are happy that there is a bill that has moved forward in the Senate and that actually passed a committee in the judiciary, the House, just two days in support of D.C. voting rights. We think that the residents of the District of Columbia, a city of nearly 600,000 residents, a city where people fight and die in wars, will finally have a vote and a voice in the people’s House. We are happy that a vote moves us in that direction. We are not as happy about the attachments of the amendments that was sponsored by the gun lobby to diminish our own laws in Washington.

JUAN GONZALEZ: How does removing the ban on guns have anything to do with the bill that was being voted on?

EUGENE DEWITT KINLOW: Well, you know, in the House, there’s probably a germaneness. You know, when you attach amendments, they must be germane to the major bill. That rule does not apply in the Senate. But this was directly an effort by the gun lobby and probably the NRA to relax our gun laws in Washington, D.C. You know, people want to use us as a test case, so to be able—for the gun lobby to say that, “Hey, there’s a city, Washington, D.C, people can walk around with guns, semi-automatic weapons.”

I don’t think it’s a good idea. I think that we have our own elected officials. We have a mayor and a city council that has written and has actually crafted very progressive legislation based on the will of the people. You know, for years in Washington, D.C., we’ve had a progressive gun law that says you could not have a gun. And that’s because that’s what the citizens of the District wanted. Now, for Congress to come in and say, “We will tell you what’s best for you,” when we have our own elected officials, is ludicrous.

AMY GOODMAN: Eleanor Holmes Norton, the delegate from D.C., is supportive of this legislation. Anise Jenkins, you’re not, with Stand Up! for Democracy. Why not?

ANISE JENKINS: The fact that the Senate attached the challenge to our handgun law is a perfect example. This bill for one vote, in exchange for an extra district for Utah, demonstrates what will happen if D.C. does not become a state. We will still be subject to congressional rule. Congress will still be able to overturn our laws. Our budget, our local budget, made of our local money, tax money, will have to go to Congress every year for review. If we don’t have the protection of statehood, full statehood, we will never have the equal rights that other American citizens have. That’s why we oppose the bill.

It hurts to oppose this bill. There’s been a lot of enthusiasm drummed up for this bill. There’s been a lot of money backing this bill to go through. But the bill is weak. The bill is a compromise. Statehood is the answer. Statehood is what will protect us and give us our rights.

JUAN GONZALEZ: And the reasoning for why Utah was included with an extra congressional district in addition to D.C.?

ANISE JENKINS: It was presented to the D.C. residents, who, by the way, voted for statehood in 1982, which has been the only referendum about what form of government we should have—1982 we voted for statehood. It was explained to us that Utah was being included, because Utah was the complete cultural, political opposite of D.C., and it would be easier for D.C. to get a vote if Utah got an extra congressional district, which also, by the way, gives it another electoral vote. In Stand Up! for Democracy’s opinion, this is too much of a compromise.

This was done when the Republicans controlled the Congress. This was done when Bush was president, and he said he would not even sign this bill. We need to switch tracks on this train. This train is out of control. We need to switch tracks and go to statehood. We don’t need Utah to balance us out. We don’t need Utah to cancel out our vote.

EUGENE DEWITT KINLOW: Let me just say that—and this is—

AMY GOODMAN: Eugene Dewitt Kinlow?

EUGENE DEWITT KINLOW: Let me just provide a little background. And Anise did indicate that this is a compromise. Yes, I agree. This is a compromise bill, and that’s what happens on Capitol Hill. Generally, for bills to pass, you need people who are Democratic and Republican to support the legislation. Let me be clear, this legislation that’s proposed is a bipartisan piece of legislation, which is great. We need more bipartisanship on Capitol Hill.

The bill provides for a vote in Washington, D.C., a city that is a majority Democratic city, and also provides for a vote—it doesn’t specifically say Utah, but the assumption is that it will be Utah. Utah, at the last census in 2000, narrowly missed getting another congressional seat. Now, why is this? It’s because in Utah, they have a tradition of, those who are of the Mormon faith go out into the states and do their missionary work. They were not in the states when the census was taken, and thus they were not counted. They went to court, and they lost. The compromise was to provide for a one-way, in one fell swoop—it’s not a perfect match, but it is one way of, one, enfranchising the citizens of the District of Columbia, who need this opportunity to participate in the political process fully, and one, for Utah to be made whole for their—for not having that seat at the last census.

AMY GOODMAN: You also don’t get senators here without statehood.

ANISE JENKINS: That’s absolutely true.

EUGENE DEWITT KINLOW: No, right. And the bill, clearly, in front of us is not about statehood. I think that if we talk about the statehood debate, that—there was an effort about in 1983 that failed. And it failed when there was a—you know, despite having a city that is majority Democratic and that supported President Barack Obama by about 93 percent, it failed in the House and the Senate, by two-to-one.

ANISE JENKINS: I would—

EUGENE DEWITT KINLOW: And a lot of those conditions still exist. Back in ’93, when you had a Democratic House, Senate and White House, those same conditions exist right now. And I would say if we had to put it up for statehood, that the votes do not exist for statehood.

ANISE JENKINS: I would add to the—

JUAN GONZALEZ: Anise Jenkins, I’d like to let you respond, but just to throw in a question, as well, to respond to, as well—the argument can be made that at least Congress, by voting now to grant a member of Congress, has recognized the right of political representation for D.C. and that presumably a greater Democratic majority in the future might be able then to pass, as well, the—adding two senators, as well, to the District.

ANISE JENKINS: If they vote for this bill and the bill says, specifically—there’s efforts to make amendments to this bill to say specifically, and it already implies, that this bill will not let us have senators. The Congress could see this as voting for “Case closed. You have your representative. You have your delegate. Your delegate is now a representative in the House. You will not have any senators.”

The bill even says that if we have a larger population—against the Constitution, which says if your population increases proportionately, your representatives will increase—this bill even cuts that out for D.C. So, if we go from 600,000 to a million, we still do not get two representatives. We’re still limited to two representatives and perhaps no senators. So what would the Congress be saying? We have to be very careful about what we’re putting before Congress. Is it constitutional? Is it what the residents of D.C. want? Is it what the residents of D.C. deserve?

EUGENE DEWITT KINLOW: Yes, yes, yes.

ANISE JENKINS: This bill—let me say one more thing. There has been no effort by DC Vote to go out, after they’ve raised over several million dollars, to go out into the community, hold town hall meetings, to go out and talk to the D.C. residents. This is coming from the top. We want what D.C. residents voted for.

EUGENE DEWITT KINLOW: OK, OK, let me be clear—

AMY GOODMAN: We’re going to have to leave it there—I hate to say it—but we will continue this debate. Anise Jenkins, president of Stand Up! for Democracy in DC, and Eugene Dewitt Kinlow, public affairs director for DC Vote Coalition. Just in terms of populations, to let you know the states all have under 700,000, equivalent populations to D.C., Wyoming, Vermont, North Dakota, Alaska; under a million, South Dakota, Delaware, Montana.

Why Is Geithner Continuing Paulson's Policy of Violating the Law?

Former federal bank regulator and current associate professor of economics and law at the University of Missouri in Kansas City William K. Black writes:

Whatever happened to the law (Title 12, Sec. 1831o) mandating that banking regulators take "prompt corrective action" to resolve any troubled bank? The law mandates that the administration place troubled banks, well before they become insolvent, in receivership, appoint competent managers, and restrain senior executive compensation (i.e., no bonuses and no raises may be paid to them). The law does not provide that the taxpayers are to bail out troubled banks. Treasury Secretary Paulson and other senior Bush financial regulators flouted the law. (The Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) are both bureaus within Treasury.) The Bush administration wanted to cover up the depth of the financial crisis that its policies had caused.

Mr. Geithner, as President of the Federal Reserve Bank of New York since October 2003, was one of those senior regulators who failed to take any effective regulatory action to prevent the crisis, but instead covered up its depth. He was supposed to regulate many of the largest bank holding companies in the United States. Far too many of these institutions are now deeply insolvent because the banks they own are deeply insolvent. The law mandated that Geithner and his colleagues place troubled banks in receivership long before they became insolvent. Why are the banking regulators, particularly Treasury Secretary Geithner, continuing to disobey the law?

We need a Pecora investigation

We can understand now why the administration and so many committee chairs are virulently opposed to the single most essential step we need to take to diminish future crises -- a modern Pecora investigation. Pecora was the prosecutor hired by the Senate banking committee to investigate the misconduct that helped cause the Great Depression. You must vigilantly study past failures to learn causation and to enact remedies. If we were dealing with a crisis of airplane crashes and someone opposed studying the causes of the failures we would (correctly) label him a lunatic. Congress largely stopped conducting meaningful oversight hearings of financial regulation during the Bush administration. The results were horrific. It appears that only intense public pressure will suffice to overcome congressional and administration resistance to a Pecora investigation. I hope readers will add their voices to this call.

The financial cost of Paulson's and Geithner's flouting of the law

Paulson and Geithner's refusal to comply with the law has already cost the taxpayers scores of billions of dollars in unnecessary costs. Geithner indicated Friday, February 20 that he would continue to flout the law. If he is allowed to do so it will add hundreds of billions of dollars to the eventual cost to taxpayers. The amount of taxpayer money wasted due to Paulson and Geithner's violations of the prompt corrective action law will exceed the total present value cost of resolving the S&L debacle, $150 billion ($1993). The waste will take the form of the U.S. taxpayers subsidizing the officers, shareholders and subordinated debt holders of failed banks -- who are disproportionately wealthy, frequently profited from the accounting fraud that caused the banks to fail, and are often foreign. The prompt corrective action law was passed in large part to prevent such a subsidy.

The S&L debacle led to a new financial regulatory system premised on "prompt corrective action" (PCA). Future posts will explain more fully why this system failed, but it is remarkable that the system, the phrase, and the law have disappeared from the coverage of the banking crises. PCA's premise was that regulatory discretion led to cover-ups of failed banks and excessive losses to the taxpayers. The PCA solution was to require higher capital requirements and to mandate that the regulators take over troubled banks before they deteriorated to the point that the failure would impose a cost on the Federal Deposit Insurance Corporation (FDIC). PCA also recognized that failing bankers had perverse incentives to "live large" and cause larger losses to the FDIC and taxpayers. PCA's answer was to mandate that the regulators stop these abuses by, for example, strictly limiting executive compensation and forbidding payments on subordinated debt.

PCA's purpose is "to resolve... problems... at the least possible long-term cost to the [FDIC]." That means the least possible cost to taxpayers. Secretary Geithner's priority is protecting private shareholders:

We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system....
We have a law that says when banks are at or near insolvency private shareholders should be eliminated unless we can arrange a transaction that has no cost to the FDIC. Receiverships produce "private institutions." The FDIC manages the failed institution only long enough to get it in shape to be sold at the least cost to the taxpayers. Receiverships end unnecessary bailouts of private shareholders, reducing the cost to the FDIC, as the law requires. Receiverships place banks back in the hands of new shareholders. Geithner has so twisted the framing of this issue that he is warning that a cheaper, more effective means of resolving failed banks used under President Reagan is some alien form of socialism that President Obama must slay before it destroys capitalism. Geithner is channeling Rove when he conflates receiverships with "nationalization."

Secretaries Paulson and Geithner subverted the PCA law by allowing failed banks to engage in massive accounting fraud (which also means they are engaged in securities fraud). Treasury is telling the world that resolving the failed banks will require roughly $2 trillion dollars. That has to mean that the failed banks are insolvent by roughly $2 trillion. The failed banks, however, are reporting that they are not simply solvent, but "well capitalized." The regulators flout PCA by permitting this massive accounting and securities fraud. (Note that by countenancing this fraud they make it extremely difficult to ever prosecute these elite white-collar frauds.)

Palin Now Owes Taxes on Payments for Nights at Home, State Rules

The Washington Post reports:

Alaska Gov. Sarah Palin (R) owes income taxes on nearly $17,000 paid to her as travel reimbursements when she spent nights in her Wasilla residence, according to a state legal opinion that the payments were not legitimate business expenses, a state official said yesterday.

During her first 19 months in office, Palin charged the state $16,951 in "per diem" allowances for spending 312 nights in her home. The allowances were intended to cover meals and incidental expenses while she was traveling on state business.

The state this week reversed a policy that had treated the payments as legitimate business expenses under the Internal Revenue Code, said state administrator Annette Kreitzer. Payments to employees charging "per diem" expenses to stay in their own homes will be treated as income subject to taxes, Kreitzer said, and the state will update the employees' W-2 forms.

Palin's expenses were reported by The Washington Post last year after the Republican presidential nominee, Sen. John McCain (Ariz.), named Palin as his running mate. The Post reviewed records from late 2006 through early August 2008, and the story prompted a review by state officials. The governor continued to seek the payments through the end of the year, according to the Anchorage Daily News, which first reported this week that she owed taxes on the payments.

The additional income will have to be reported on Palin's 2008 tax returns, due April 15. It is not known whether the governor, whose state salary is $125,000 a year, plans to pay back taxes for per diem reimbursements she received in 2007. If Palin refunded the expense payments, she probably would not have to pay taxes on them, tax lawyers said.

The governor's spokeswoman, Sharon Leighow, acknowledged that the governor had received legal guidance in a report, but she declined to comment further.

Kreitzer refused to release the report. She said there were other "affected employees" in addition to Palin but did not provide further details.

Leighow said in September that "the governor is entitled to a per diem, and she claims it." At the time, the state finance director said the practice was permitted because Palin's official "duty station" is Juneau, the state capital, which is 600 miles from Wasilla.

Palin often stayed in her lakeside home in Wasilla and drove 45 miles to Anchorage, to a state office building where she conducts most of her business.

Reimbursement for legitimate business expenses is not considered taxable income under the Internal Revenue Code, tax lawyers said. At the time of The Post's story, some tax lawyers and liberal groups suggested that Palin's per diem expenses should be treated as income.

Palin collected the per diem allowance from April 22, 2008, four days after the birth of her fifth child, until June 3, when she flew to Juneau for two days. She also charged the state a per diem on Thanksgiving Day 2007, citing her attendance at the Great Alaska Shootout college basketball tournament in Anchorage.

"We've always followed the law and fully disclosed all that," Palin said in an interview on Fox News during the campaign.

Palin said many of the per diem expenses occurred while plumbing was being repaired in the governor's mansion in Juneau. She said she could have billed the state for hotel or apartment lodging but opted against that, "knowing that we're going to spend quite a bit of time here [in Wasilla], especially those months where the remodels were taking place in the governor's mansion. And we would disclose my per diem, we wouldn't try to hide it."

On the initial expense reports, Palin wrote "Lodging -- own residence" or "Lodging -- Wasilla residence" more than 30 times on the days she charged a per diem, the reports show. But in two dozen undated amendments, the governor deleted the references to her residence or home.

Sarah Palin's $159,050 Conflict of Interest

At Huffington Post, Chris Kelly writes:

While you read this, Alaska's First Dude, Todd Palin, is riding a snowmobile -- I'm sorry, snow machine -- 1971 miles from Big Lake to Fairbanks. In the course of performing this awesome feat, his Arctic Cat's powerful two-stroke engine will emit the same amount of hydrocarbons as an automobile driving from Chicago to San Francisco and back 150 times.

A small price for the rest of us to pay to honor the indomitability of the human spirit and one man's ability to sit and hold on.

It's not just a blaze of glory and aromatic hydrocarbon. A conventional two-stroke engine emits as much as a quarter of its fuel unburned, directly into the air. This week, as a participant in the Iron Dog™ snow machine race, Todd Palin will release as many cancer-causing and smog-forming pollutants as a Chevy Malibu driven around the Earth at its equator 28 times.

Seems like a lot of work, just to get away from Sarah Palin.

But Todd's not just doing it because he hates his home life and likes things that make loud noises and emit benzene. He does it because it's there. And for hundreds of thousands of dollars in cash and gifts from corporations who do business with the Governor's office.

For riding a snowmobile.

Something you could train a bear to do.

The Emperor Nero used to clean up at the Olympic games. It was eerie. He won everything. According to Suetonius, he once won a chariot race despite falling off and not finishing the course. That's how good he was. He also never wore the same clothes twice. So he would have fit right in with the Palins there also.

I'm not insinuating anything. I'm just saying.

The total purse value of this year's Iron Dog™ is $159,050. The sponsors include the petroleum giants Tesoro and Conoco-Phillips; State Farm, Wells Fargo, Frontier Airlines, Alaska Airlines and the Alaska First National Bank.

The Iron Dog™ has fewer than 40 entrants a year, and one of them is always Todd.

Does this smell? I'm probably the wrong person to ask. I hate the cold and I think motor sports is an oxymoron. But he is Alaska's First Lady, and Tesoro is an oil company.

Let's say this was Louisiana in the '30s. If Texaco sponsored a pancake-eating contest, and Huey Long's wife kept winning it, there would have been talk.

To be fair, Todd can't win the whole purse. There are lots of little door prizes just for rookies and women and steak dinners for Cutest Hat. Just like in Jack London days.

And, to be fair, Todd doesn't always walk away from the camping trip with the hundred grand first prize. He's only won four times.

Once after Sarah was elected to the Wasilla City Council, once after she was elected mayor, the year she was appointed to the Alaska Oil and Gas Commission, and the year she was elected governor.