Daily Report from Progress
THE PROGRESS REPORT
http://www.progressreport.org
by David Sirota,
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HEALTH CARE
Threatening Truth Tellers
The White House's
penchant for threatening truth tellers (http://www.kintera.org/AccountTempFiles/cf/%7bE9245FE4-9A2B-43C7-A521-5D6FF2E06E03%7d/031007_release_intimigate.pdf)
reared its ugly head once again -- this time on Medicare. Specifically, after
ramming Medicare legislation through by twisting lawmakers' arms and
circumventing House customs, sending Health and Human Services Secretary Tommy
Thompson to the House floor during an unprecedented 3-hour vote, it turns out
the Administration deliberately hid the true cost of the bill. Knight Ridder revealed yesterday that the Administration
threatened to fire its own chief Medicare (http://www.realcities.com/mld/krwashington/8164060.htm?template=contentModules/printstory.jsp)
analyst "if he told key lawmakers about a series of Bush administration
cost estimates that could have torpedoed congressional passage of the White
House-backed prescription drug plan." Specifically, government actuary
Richard Foster told the White House five months before the November vote that a
similar Medicare drug bill would have a hefty
price tag of $551 billion (http://www.realcities.com/mld/krwashington/8164060.htm)
. But with 13 conservatives promising to block a bill over $400 billion, the
White House told Foster he would be fired if he did not keep quiet, and then
buried the estimates, instead publicly touting an estimate that claimed the
bill would cost only $395 billion. The actual cost was not released until
after the law was signed by the President.
SCULLYING HIS REPUTATION: When the much
larger estimate of the cost of Medicare was announced, then-Medicare
Administrator Tom Scully said, "It's not
shocking to me (http://www.nytimes.com/2004/01/30/politics/30DEFI.html?th)
." But that's because he already knew about the higher cost estimate and
was involved in the cover-up. According to one staffer, Scully was directly
behind the threats. He ordered Foster to withhold information about the true
price tag and said he would fire him "for insubordination if he
disobeyed." Scully had an ulterior motive in seeing the drug-industry
backed bill passed: He was "exploring jobs in the private sector while he
was pushing for passage of the prescription drug bill, thanks to a waiver from
[HHS Secretary Tommy] Thompson that allowed him to conduct job interviews while
he was still a federal employee." He is now a top
lobbyist for the health care industry (http://www.usatoday.com/news/opinion/editorials/2004-02-10-edit-usat_x.htm)
.
COWING CRITICS WITH
THREATS: Foster is just the latest in a long list of people the Administration
has bullied or fired for telling the truth about policies it was trying to
hide. For example, top White House adviser Larry Lindsey was fired (http://www.csmonitor.com/2002/1217/p08s03-comv.html)
when he revealed the war in
9/11
Exploiting a Tragedy
President Bush yesterday used a "
brief visit (http://www.thejournalnews.com/newsroom/031204/a0112bush.html)
" to a 9/11 memorial to force taxpayers to pick up the tab for a political
fundraising trip in which he raked in more than $1.6 million for his campaign.
The White House has repeatedly used this tactic before (http://www.washingtonpost.com/wp-dyn/articles/A31606-2004Mar4.html)
, even using a brief visit to Martin Luther King's grave as a pretext (http://www.americanprogress.org/site/apps/s/content.asp?c=biJRJ8OVF&b=24899&content_id=%7b61D61645-DFB2-4118-95AF-F484A867206B%7d#1)
to get taxpayers to foot the bill for a Georgia fundraiser. But it has never
been used before with 9/11, as the President himself
had previously declared that tragic day off limits from politics. And as the WP
notes, the proximity between politics and Sept. 11 " was
unmistakable (http://www.washingtonpost.com/wp-dyn/articles/A51580-2004Mar11.html)
" yesterday. Unfortunately, yesterday was only the latest chapter in the
White House's deliberate attempt to politicize 9/11. Well before the debris
from Ground Zero was cleared, the White House at every turn began distracting
the public from its pre-9/11 security failures, trying to reap political
advantage from the terrorist attacks themselves. Here is a timeline of the
politicization of 9/11, and questions that are still unanswered:
WHITE HOUSE INITIALLY DEPLORES
POLITICIZATION: While the White House now says Bush "
has every right (http://www.washingtonpost.com/wp-dyn/articles/A51580-2004Mar11.html)
" to politicize 9/11 and the War on Terror, it was President Bush and Vice
President Cheney who reassured Congress after 9/11 that national security would
never be used for political purposes. On
19 WEEKS AFTER 9/11, POLITICIZATION
BEGINS: Less than 19 weeks after the 9/11 attacks, top White House adviser Karl
Rove gave a speech on 1/19/02 urging fellow conservatives to "go to the
country" on issues surrounding the War on Terror, an invitation to
politicize national security (http://abcnews.go.com/sections/politics/DailyNews/Rove_020118.html)
in an election year, as he claimed Americans trust conservatives to do a better
job of "protecting America." The NYT noted that the White House
had effectively "rolled out of a strategy branding anyone who questions
the administration as 'giving aid and comfort to our enemies,'" as Rep.
Tom Davis (R-VA) said.
6 MONTHS AFTER 9/11, BUSH POLITICIZES THE
DEFENSE BUDGET: In March 2002, AP reported that in speeches, President Bush
began "making the defense budget a patriotic issue." The story noted
that "despite the lack of concerted opposition," Bush was seeking
partisan political gain from the traditionally bipartisan issue of defense
spending.
9 MONTHS AFTER 9/11, WH USES 9/11 PHOTOS
AT FUNDRAISERS: On
BY SEPT. 2002, WH ADMITS IT WANTS TO POLITICIZE
9/11: The Associated Press reported on 6/13/02, the White House began urging
conservatives to push "messages highlighting the war on terrorism"
according to a presentation formulated by top Presidential advisers in the
White House. On
IN OCT. 2002, CONSERVATIVES INVOKE BIN LADEN:
On 10/11/02, AP reported that an advertisement (http://www.americanprogress.org/atf/cf/%7bE9245FE4-9A2B-43C7-A521-5D6FF2E06E03%7d/11%20TIMES.RM)
was aired against triple-amputee Vietnam war hero Sen. Max Cleland (D-GA)
"that showed pictures of Saddam Hussein and Osama
bin Laden (http://www.macon.com/mld/macon/4264879.htm)
and implied the Democratic incumbent is soft on homeland security."
Instead of invoking his pledge not to use 9/11 and the War on Terrorism
"as a political issue," the President Bush (http://www.whitehouse.gov/news/releases/2002/11/20021102-3.html)
effectively condoned the tactic by repeatedly making campaign appearances
(http://www.whitehouse.gov/query.html?col=colpics&op0=&fl0=&ty0=w&tx0=&op1=+&fl1=&ty1=w&tx1=Chambliss&op2=+&fl2=keywords:&ty2=p&tx2=&op3=+&fl3=document.type:&ty3=p&tx3=&inthe=604800&dt=ba&ady=1&amo=8&ayr=2002&bdy=3&bmo=11&byr=2002&nh=10&rf=0&lk=1)
on behalf of Saxby Chambliss, who was airing the ad. Even now, the White House
has refused to discredit the statement by Rep. Tom Cole (R-OK) that opposing
the Bush Administration means " Osama
bin Laden wins (http://seattletimes.nwsource.com/html/nationworld/2001877277_bush12.html)
."
UNANSWERED QUESTION -- WILL TAXPAYERS HAVE
TO PAY?: The NYT reported that the President has
scheduled the latest Republican National Convention in history specifically to
coincide with official ceremonies marking the three-year anniversary of 9/11.
The President is set to "shuttle between political events at
UNANSWERED QUESTIONS -- WHEN WILL HE SHOW
RESPECT?: The White House has continued to politicize
9/11 despite the pleas of victims' families and firefighters. Harold Schaitberger, president of the International Association of
Fire Fighters, said that while the White House has "shortchanged fire
fighters by not providing adequate resources," the President is
"calling on the biggest disaster in our country's history (http://www.usatoday.com/news/politicselections/nation/president/2004-03-04-bush-ads-criticism_x.htm)
, and indeed in the history of the fire service, to win sympathy." Monica
Gabrielle, whose husband died in the twin towers, said the President's
insistence on politicizing the 9/11 attacks " is
a slap in the face of the murders of 3,000 people (http://abclocal.go.com/wtvg/news/304_bushads.html)
. It is unconscionable."
HEALTH CARE
McClellan's Dodge
Former FDA chief Mark McClellan, who was confirmed (http://www.timesunion.com/AspStories/story.asp?storyID=227634&category=&BCCode=&newsdate=3/12/2004)
as director for the Centers for Medicare and Medicaid Services this morning,
finally agreed to testify in front of Senators questioning his stance on the reimportation of drugs from
CONSERVATIVE CONVERTS: Arch-conservative Sen. Trent Lott (R-MS) now agrees (http://www.nytimes.com/2004/03/12/politics/12MEDI.html)
that the reimportation block makes no sense.
"When the next vote comes, I'm switching my position on the import of
drugs...I cannot explain to my mother any longer why she should pay twice or
two-thirds more than what is paid in Canada and Mexico...I can't do it any
more." He was joined in support for reimportation
by fellow conservative John Cornyn (R-TX), and
"last week, Sen. Jim Bunning (R-KY) (http://www.washingtonpost.com/wp-dyn/articles/A51401-2004Mar11.html)
voted for a nonbinding budget amendment endorsing legal importation." CQ
reports, Sen. John McCain told McClellan yesterday that, despite the power of
the pharmaceutical companies (http://www.whitehouseforsale.org/contributorsandpaybacks/page.cfm?pageid=519)
, "we will pass, as the House has passed, requirements for the ability to reimport drugs from
NO TRUTH IN ADVERTISING: A recent study by
the Kaiser Family Foundation found that a majority of seniors do not understand
the new Medicare legislation. The Administration's $12.6 million
taxpayer-funded ad campaign only adds to the confusion. The General Accounting
Office reported this week that advertisements and brochures prepared by the
Bush administration to publicize a new Medicare law... misrepresented the
prescription drug benefits (http://www.nytimes.com/2004/03/11/politics/11MEDI.html) that would be offered to millions of elderly and
disabled people." The ads contain " notable
omissions and other weaknesses (http://www.latimes.com/news/science/la-na-medicare11mar11,1,5700606.story?coll=la-news-science)
," the congressional investigators said Wednesday. For example, the ad "doesn't say (http://www.floridatoday.com/!NEWSROOM/opedstory0223WMEDICARE.htm)
that seniors who do stay with Medicare will not get the proposed drug coverage
in 2006. The ads also don't say that to get the drug benefit, seniors must sign
up for a separate insurance plan, similar to an HMO. And they don't say that if
a senior stays in the traditional Medicare plan, they'll also have to pay
more." For more on the misleading ad (http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=27153)
, read this American Progress claim vs. fact.
WHAT ELSE ARE THEY HIDING? Did the
Administration know how much they were accelerating the Medicare Trust Fund
crisis before the bill was passed? The new estimates from the Medicare
Trustees, who use the same Medicare actuaries who estimated the higher costs,
will be issuing a report this month. Last year, they estimated that the
Hospital Insurance Trust Fund would become insolvent in 2026. In the
Administration's budget, their "new" definition of insolvency moved this up by 12 years to 2014 (http://www.cms.hhs.gov/publications/trusteesreport/2003/secib.asp)
. Did the Administration withhold from Members of Congress the fact that they
were voting on legislation that would redefine and worsen Medicare's financial
status?
HALLIBURTON
Possible Criminal Violationst
Officials at the Pentagon have
"asked the Justice Department to join an inquiry into alleged fuel
overcharging by Halliburton Co. in
HALLIBURTON IGNORES PROPOSAL TO REDUCE
TAXPAYER BILL: In late January a subcontractor sent Halliburton subsidiary
Kellogg Brown and Root (KBR) a letter offering to supply fuel to KBR directly,
instead of through another middleman. The offer would have
significantly reduced costs to
HALLIBURTON CAN'T ACCOUNT FOR COSTS:
Appearing before the House Government Reform Committee yesterday, Pentagon
Comptroller Dov Zakheim
said that Halliburton has " significant deficiencies" (http://online.wsj.com/article/0,,SB107905639161753571-search,00.html?collection=autowire/30day&vql_string=Halliburton%3cin%3e(article-body))
in its ability to estimate costs and deal with its many subcontractors in Iraq.
For example, Pentagon auditors rejected a $3 billion dollar bill from
Halliburton because the costs weren't adequately documented. Halliburton then
submitted a revised bill that was $700 million dollars lower but eventually
withdrew it because of "continuing pricing issues."
AUDIT REVEALS HALLIBURTON DOES NOT PROVIDE
ACCURATE INFO: Ranking Minority Leader Henry Waxman released an eight-page
memo, based on recently obtained government documents, that
reveal even more problems with Halliburton's business practices. According to
the Waxman memo, a December 31 Defense Department audit,
echoing Zakheim's testimony, found
"'significant' and 'systemic' deficiencies in the way Halliburton
estimates and validates costs." Specifically, Halliburton didn't reveal
that a bill from two subcontractors it had fired "was the basis for over
$1 billion of projected food service contracts."
ARMY IGNORES AUDITORS' WARNINGS ABOUT
HALLIBURTON: Also detailed in the Waxman memo was a January 13, 2004 letter
from the Defense Department auditors to the Army Corps of Engineers which said
Halliburton's recent conduct "bring[s] into question [Halliburton's]
ability to consistently produce well-supported proposals that are acceptable as
a basis for negotiation and fair and reasonable prices." The DoD urged the Army Corps of
Engineers to "contact us to ascertain the status of [Halliburton's]
estimating system prior to entering into future negotiations." Three days
later on January 16, without contacting DoD,
the Corps "awarded Halliburton a new $1.2 billion contract."
MILITARY RUBBERSTAMPING HALLIBURTON
PROPOSALS: A GAO report obtained by Waxman reveals "a military review
board approved a six-month renewal contract with Halliburton worth $587 million
in just ten minutes and based on only six pages of documentation."
HALLIBURTON FUEL OVERCHARGES DETAILED: The
Defense Energy Support Center (DESC) prepared a breakdown of costs when it
imported gasoline from
UNDER THE RADAR
ECONOMY --NOMINEE WITHDRAWN, STILL NO JOBS
CZAR: Cox news reports, "A Nebraska businessman withdrew from
consideration to be the White House's manufacturing "czar" Thursday
after withering attacks (http://www.chron.com/cs/CDA/ssistory.mpl/nation/2445380)
...about his ties to
FOREIGN POLICY -- DEMOCRACY, SHEMOCRACY:
Just four months after the President's highly-touted speech (http://www.whitehouse.gov/news/releases/2003/11/20031106-2.html)
announcing his plans to push for democratic reforms in the Mideast,
The NYT reports the Bush administration "has set aside its plan (http://www.nytimes.com/2004/03/12/politics/12MIDE.html)
to issue a sweeping call for economic, political and cultural reform in the
Middle East." In a display of just how unwilling the Administration is to
confront Saudi Arabia (despite its awful human rights record (http://www.state.gov/g/drl/rls/hrrpt/2003/27937.htm)
and ties to terror (http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=6228#2)
), an administration official said the decision came after it had been
denounced by Crown Prince Abdullah of Saudi Arabia. It was also denounced by
Egyptian President Hosni Mubarak,
who is being invited to visit the White House (http://www.whitehouse.gov/news/releases/2004/03/20040304-6.html)
to tout his supposed "goal to see the spread of freedom" despite the
State Department criticizing his abysmal democratic record (http://www.state.gov/g/drl/rls/hrrpt/2003/27926.htm)
.
ECONOMY -- GREENSPAN BUCKS WHITE HOUSE ON
UNEMPLOYMENT: The LA Times reports, "Taking a position that could put him
at odds with the Bush administration and Republican lawmakers, Greenspan
expressed support for proposals (http://www.latimes.com/business/careers/work/la-fi-greenspan12mar12,1,1174204.story)
to provide a temporary extension of benefits for the nearly 2 million workers
who have been unemployed for more than 26 weeks. The last such extension
expired in December." The Fed chairman said, "When unemployment is
created through no fault of the worker's actions, then I think it is clearly to
our advantage to find ways of creating support...I think that considering the
possibility of extending unemployment insurance is not a bad idea."
Conservatives have refused to extend benefits to
760,000 workers (http://www.cbpp.org/2-25-04ui-pr.htm)
who are running out of benefits. House Majority Leader Tom DeLay (http://www.ohio.com/mld/ohio/news/editorial/7361810.htm) (R-TX) said he saw "no reason" to help
people through the tough economic time.
ENVIRO -- EPA OVERSTATES THE CASE: The WP
reports, "EPA has overstated the purity of
the nation's drinking water (http://www.washingtonpost.com/wp-dyn/articles/A51599-2004Mar11.html)
in four recent years, potentially leaving millions of people at risk, according
to a new report." The issue: The EPA has announced "that it met its
goal that 91 percent of