The Jvl Bi-Weekly for 061507

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Friday, June 15^th, 2007

Volume 6, No. 11

(Editor's note: "The transcendental temptation lurks deep within the human breast. It is ever-present, tempting humans by the lure of transcendental realities, subverting the power of their critical intelligence, enabling them to accept unproven and unfounded myths….Any impartial observer of human history must be duly impressed by the tenacious character of religious faiths and the persistence of transcendental myths in human history, as well as the ability of the most outrageous myths to sprout and take root, even in the graveyards of defeated and dying ideas. Is this a perverse strain, like original sin, but beyond any hope of human redemption?" Paul Kurtz

Editor's Second note: Repudiate “faith-based initiatives” pushed by any branch of government. Repudiate a weak Congress. Repudiate weak senators or representatives, especially those with a track record of abrogating their constitutional mandate. Repudiate ignorance, especially that of the American citizen who knows little or nothing about the Constitution which empowers him or her. Repudiate consumerism, especially the virulent form it takes in the selfish framework of American-centric capitalism. Repudiate pre-emptive wars of aggression. Repudiate American Empire. Instead, embrace the empowerment of education. Embrace active citizenship. Embrace the rule of law, as set forth by the Constitution. Do all of this and, in the end, if conditions and circumstance warrant, impeach President Bush and any of those in his administration so deserving. Scott Ritter)

5 Articles

1. Net Taxes Could Arrive By this Fall

2. Coup D'État

3. Starving the Poor

4. Venezuela and the Media: Fact and Fiction

5. Ideas Cannot be Killed

1. NET TAXES COULD ARRIVE BY THIS FALL

(PART 1 OF 2 PARTS)

BY

DECLAN MCCULLAGH

(The era of tax-free e-mail, Internet shopping and broadband connections could end this fall, if recent proposals in the U.S. Congress prove successful.)

State and local governments this week resumed a push to lobby Congress for far-reaching changes on two different fronts: gaining the ability to impose sales taxes on Net shopping, and being able to levy new monthly taxes on DSL and other connections. One senator is even predicting taxes on e-mail.

At the moment, states and municipalities are frequently barred by federal law from collecting both access and sales taxes. But they're hoping that their new lobbying effort, coordinated by groups including the National Governors Association, will pay off by permitting them to collect billions of dollars in new revenue by next year.

If that doesn't happen, other taxes may zoom upward instead, warned Sen. Michael Enzi, a Wyoming Republican, at a Senate hearing on Wednesday. "Are we implicitly blessing a situation where states are forced to raise other taxes, such as income or property taxes, to offset the growing loss of sales tax revenue?" Enzi said. "I want to avoid that."

A flurry of proposals that pro-tax advocates advanced this week push in that direction. On Tuesday, Enzi introduced a bill that would usher in mandatory sales tax collection for Internet purchases. Second, during a House of Representatives hearing the same day, politicians weighed whether to let a temporary ban on Net access taxes lapse when it expires on November 1. A House backer of another pro-sales tax bill said this week to expect a final version by July.

"The independent and sovereign authority of states to develop their own revenue systems is a basic tenet of self government and our federal system," said David Quam, director of federal relations at the National Governors Association, during a Senate Commerce committee hearing on Wednesday.

Internet sales taxes
At the moment, for instance, Seattle-based Amazon.com is not required to collect sales taxes on shipments to millions of its customers in states like California, where Amazon has no offices. (Californians are supposed to voluntarily pay the tax owed when filing annual state tax returns, but few do.)

Ideas to alter this situation hardly represent a new debate: officials from the governors' association have been pressing Congress to enact such a law for at least six years. They invoke arguments--unsuccessful so far--like saying that reduced sales tax revenue threatens budgets for schools and police.

But with Democrats now in control of both chambers of Congress, the political dynamic appears to have shifted in favor of the pro-tax advocates and their allies on Capitol Hill. The NetChoice coalition, which counts as members eBay, Yahoo and the Electronic Retailing Association and opposes the sales tax plan, fears that the partisan shift will spell trouble.

One long-standing objection to mandatory sales tax collection, which the Supreme Court in a 1992 case left up to Congress to decide, is the complexity of more than 7,500 different tax agencies that each have their own (and frequently bizarre) rules. Some legal definitions (PDF) tax Milky Way Midnight candy bars as candy and treat the original Milky Way bar as food. Peanut butter Girl Scout cookies are candy, but Thin Mints or Caramel deLites are classified as food.

The pro-tax forces say that a concept called the Streamlined Sales Tax Agreement will straighten out some of the notorious convolutions of state tax laws. Enzi's bill, introduced this week, relies on the agreement when providing "federal authorization" to require out-of-state retailers "to collect and remit the sales and use taxes" due on the purchase. (Small businesses with less than $5 million in out-of-state sales are exempted.)

It's "important to level the playing field for all retailers," Enzi said during Wednesday's hearing.

While it's too early to know how much support Enzi's bill will receive, foes of higher taxation are marshaling their allies. Sen. Ted Stevens, an Alaska Republican, said Wednesday that he'd like "to see an impregnable ban on taxes on the Internet."

A taxing question

Pro-tax and antitax forces are jockeying for position before a Net access tax moratorium expires in November. Also on the table: a proposal to usher in mandatory online sales taxes.

Enzi bill: Ushers in mandatory sales taxes on Internet purchases.

S. 156: Renews expiring access tax moratorium permanently.

H.R. 1077: Renews expiring access tax moratorium permanently and eliminates grandfather provision permitting nine states to collect taxes.

H.R. 763: Renews expiring access tax moratorium permanently.

Jeff Dircksen, the director of congressional analysis at the National Taxpayers Union in Alexandria, Va., said in written testimony prepared for the hearing: "If such a system of extraterritorial collection is allowed, Congress will have opened the door to any number of potential tax cartels that will eventually harm rather than help taxpayers."

Internet access taxes
A second category of higher Net taxes is technically unrelated, but is increasingly likely to be linked when legislation is debated in Congress later this year. That category involves access taxes, meaning taxes that local and state governments levy to single out broadband or dial-up connections. (See CNET News.com's Tech Politics podcast this week with former House Majority Leader Dick Armey on this point.)

If the temporary federal moratorium is allowed to expire in November, states and municipalities will be allowed to levy a dizzying array of Net access taxes--meaning a monthly Internet connection bill could begin to resemble a telephone bill or airline ticket with innumerable and confusing fees tacked on at the end. In some states, telephone fees, taxes and surcharges run as high as 20 percent of the bill.

These fees that states levy on mobile phones, cable TV and landlines run far higher than state sales taxes at an average of 13.3 percent, cost the average household $264 a year, and total $41 billion annually, according to a report published by the Chicago-based Heartland Institute this month. Landlines are taxed at the highest rate, 17.23 percent, with Internet access being virtually tax free, with the exception of a few states that were grandfathered in a decade ago.

Dircksen, from the National Taxpayers Union, urged the Senate on Wednesday to "encourage economic growth and innovation in the telecommunications sector--in contrast to higher taxes, fees and additional regulation" by at least renewing the expiring moratorium, and preferably making it permanent. Broadband providers like Verizon Communications also want to make the ban permanent.

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But state tax collectors are steadfastly opposed to any effort to renew the ban, let alone impose a permanent extension. Harley Duncan, the executive director of the Federation of Tax Administrators, said Wednesday that higher taxes will not discourage broadband adoption and his group "urges Congress not to extend the Act because it is disruptive of and poses long-term dangers for state and local fiscal systems."

Sen. Daniel Inouye, the influential Democratic chairman of the Senate Commerce committee, said: "Listening to the testimony, I would opt for a temporary extension, if at all."

If the moratorium expires, one ardent tax foe is predicting taxes on e-mail. A United Nations agency proposed in 1999 the idea of a 1-cent-per-100-message tax, but retreated after criticism. (A similar proposal, called bill "602P," is, however, actually an urban legend.)

"They might say, 'We have no interest in having taxes on e-mail,' but if we allow the prohibition on Internet taxes to expire, then you open the door on cities and towns and states to tax e-mail or other aspects of Internet access," said Sen. John Sununu, a New Hampshire Republican. "We need to be honest about what we're endorsing and what we're opposing."

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2. COUP D'ÉTAT

BY

EDWARD LUTTWAK

During the time the Vietnam war was in full swing, Edward Luttwak wrote a seminal book on the phenomena of overthrowing governments, Coup d'état: A Practical Handbook. In defining the attributes of a typical coup, Luttwak explains:

A coup consists of the infiltration of a small but critical segment of the state apparatus, which is then used to displace the government from its control of the remainder.

Let that definition rattle around your brain for a moment. When we think of coups, our mental image tends to be populated by medal-festooned lapels of banana republic military commanders, surrounded by gun toting militias riding around in jeeps, in a location somewhere south of the equator. Obviously, that is not an accurate picture. A coup is typically a partnership between civilian politicians (usually, but not always, by the party in opposition to the current government) and sympathetic military commanders. Contrary to popular concept, the "use of military or other organized force is not the defining feature of a coup d'état. It can be argued, though, that co-opted military command of civilian authority and positions is integral to consolidation of power in a coup environment. With yesterday's appointment of General Lute as the war czar, there are more active duty military commanders involved in the operational control of America's war and intelligence efforts than ever before. Additionally, James Comey's remarks this week to the Senate Judiciary Committee about the race to John Ashcroft's hospital bed to authorize the warrentless wiretap program, we get a small peek behind the curtain of how the Bush regime has operated, time and time again, outside the bounds of (at least) propriety and (potentially) beyond the confines of constitutional authority. The confluence of several events over the past year or so lead to the question: did a true coup d'état occur in the U.S., and we missed it? ...

Since the time that George Bush came to power in the contested election of 2000, many have opined that the Supreme Court decision in Bush -v- Gore was, in fact, a coup. Legal historians will certainly be arguing the finer points of the SCOTUS decision long after most of us are dead. However, a coup in the classic sense requires that fundamental changes occur to both the power structure of a government and the precepts of enabling documents and legislation (for example, constitutional interpretations).

Setting aside the constitutionality and use of presidential signing statements and all of the other challenges to constitutional authority that have occurred in the past 6 years, let's just take a quick look at the recent militarization of the heretofore civilian infrastructure of the U.S. government:

Item: In an unprecedented presidential appointment, active duty General Michael Hayden was installed as director of the CIA in 2006. Item: General David Petraeus makes the rounds in Washington, and updates political leaders on progress / lack thereof in Iraq. George Bush holds a press conference, and invokes Petraeus' name no less than 12 times. He also implores, "Let the commanders do their job". Some would argue that Bush is abdicating his authority (and responsibility) as Commander in Chief for the prosecution of war.

Item: 11 GOP congressmen hold a frank conversation with Bush, telling him that he has no clothes (or credibility). They'll "only believe General Petraeus".

Item: Active duty generals are going on record (at least anonymously) telling journalists that they'll "revolt against the regime" in September if the regime is still sticking with the surge into 2008.

Item: General Petraeus denies that he has come under pressure from President Bush or other political leaders to paint a false or skewed picture of the U.S. military campaign in Iraq:

"I am not being pressured by the president to say anything," Petraeus told reporters after 3 hours of back-to-back briefings of House and Senate members on the situation in Iraq. "I am not going to be pressured by political leaders of either party."

Item: Lt. Gen. Lute is selected as the Bush regime's "war czar", in an apparent direct contravention to the constitution of the United States and the powers of the executive branch. Thoroughly unreported in the U.S. legacy media (or even the progressive new media) is that Lute views the internet as a battleground in the war on terror. Either Gen. Petraeus is being set up as the biggest patsy in history, or he's already taken over. He's basically been anointed as the "honest broker" and ombudsman between the Bush regime and congress. Everyone is deferring to him, and it doesn't seem as if much of anyone is questioning Gen. Lute's new job, either. The civilian cabinet position of Secretary of War was deprecated in 1947, but it seems that it's now been resurrected, and that a military guy is running the show. General Hayden is running the intelligence apparatus of the United States, and holds no allegiance to the civilian legislative branch, even though that branch was required to confirm him (another GOP rubber stamp job in 2006). It's acceptable to squirm in your chair a little bit. Perhaps "coup" is too strong of a word, but clearly, the Bush regime has consolidated the executive branch's hold over the military, and the military's current influence over day-to-day decision making at the highest levels of government is pretty much unprecedented in U.S. history.

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3. STARVING THE POOR

BY

NOAM CHOMSKY

The chaos that derives from the so-called international order can be painful if you are on the receiving end of the power that determines that order’s structure. Even tortillas come into play in the ungrand scheme of things. Recently, in many regions of Mexico, tortilla prices jumped by more than 50 per cent.

In January, in Mexico City, tens of thousands of workers and farmers rallied in the Zocalo, the city’s central square, to protest the skyrocketing cost of tortillas.

In response, the government of President Felipe Calderon cut a deal with Mexican producers and retailers to limit the price of tortillas and corn flour, very likely a temporary expedient.

In part the price-hike threat to the food staple for Mexican workers and the poor is what we might call the ethanol effect — a consequence of the US stampede to corn-based ethanol as an energy substitute for oil, whose major wellsprings, of course, are in regions that even more grievously defy international order.

In the United States, too, the ethanol effect has raised food prices over a broad range, including other crops, livestock and poultry.

The connection between instability in the Middle East and the cost of feeding a family in the Americas isn’t direct, of course. But as with all international trade, power tilts the balance. A leading goal of US foreign policy has long been to create a global order in which US corporations have free access to markets, resources and investment opportunities. The objective is commonly called “free trade,” a posture that collapses quickly on examination.

It’s not unlike what Britain, a predecessor in world domination, imagined during the latter part of the 19th century, when it embraced free trade, after 150 years of state intervention and violence had helped the nation achieve far greater industrial power than any rival.

The United States has followed much the same pattern. Generally, great powers are willing to enter into some limited degree of free trade when they’re convinced that the economic interests under their protection are going to do well. That has been, and remains, a primary feature of the international order.

The ethanol boom fits the pattern. As discussed by agricultural economists C Ford Runge and Benjamin Senauer in the current issue of Foreign Affairs, “the biofuel industry has long been dominated not by market forces but by politics and the interests of a few large companies,” in large part Archer Daniels Midland, the major ethanol producer. Ethanol production is feasible thanks to substantial state subsidies and very high tariffs to exclude much cheaper and more efficient sugar-based Brazilian ethanol. In March, during President Bush’s trip to Latin America, the one heralded achievement was a deal with Brazil on joint production of ethanol. But Bush, while spouting free-trade rhetoric for others in the conventional manner, emphasized forcefully that the high tariff to protect US producers would remain, of course along with the many forms of government subsidy for the industry.

Despite the huge, taxpayer-supported agricultural subsidies, the prices of corn — and tortillas — have been climbing rapidly. One factor is that industrial users of imported US corn increasingly purchase cheaper Mexican varieties used for tortillas, raising prices.

The 1994 US-sponsored NAFTA agreement may also play a significant role, one that is likely to increase. An unlevel-playing-field impact of NAFTA was to flood Mexico with highly subsidised agribusiness exports, driving Mexican producers off the land.

Mexican economist Carlos Salas reviews data showing that after a steady rise until 1993, agricultural employment began to decline when NAFTA came into force, primarily among corn producers — a direct consequence of NAFTA, he and other economists conclude. One-sixth of the Mexican agricultural work force has been displaced in the NAFTA years, a process that is continuing, depressing wages in other sectors of the economy and impelling emigration to the US.

It is, presumably, more than coincidental that President Clinton militarised the Mexican border, previously quite open, in 1994, along with implementation of NAFTA.

The “free trade” regime drives Mexico from self-sufficiency in food towards dependency on US exports. And as the price of corn goes up in the United States, stimulated by corporate power and state intervention, one can anticipate that the price of staples may continue its sharp rise in Mexico.

Increasingly, bio fuels are likely to “starve the poor” around the world, according to Runge and Senauer, as staples are converted to ethanol production for the privileged — cassava in sub-Saharan Africa, to take one ominous example. Meanwhile, in Southeast Asia, tropical forests are cleared and burned for oil palms destined for bio fuel, and there are threatening environmental effects from input-rich production of corn-based ethanol in the United States as well.

The high price of tortillas and other, crueler vagaries of the international order illustrate the interconnectedness of events, from the Middle East to the Middle West, and the urgency of establishing trade based on true democratic agreements among people, and not interests whose principal hunger is for profit for corporate interests protected and subsidised by the state they largely dominate, whatever the human cost.

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4. VENEZUELA AND THE MEDIA: FACT AND FICTION

BY

ROBERT W. MCCHESNEY & MARK WEISBROT

To read and view the U.S. news media over the past week, there is an episode of grand tyranny unfolding, one repugnant to all who cherish democratic freedoms. The Venezuelan government under “strongman” Hugo Chavez refused to renew the 20-year broadcast license for RCTV, because that medium had the temerity to be critical of his regime. It is a familiar story.

And in this case it is wrong.

Regrettably, the US media coverage of Venezuela’s RCTV controversy says more about the deficiencies of our own news media that it does about Venezuela. It demonstrates again, as with the invasion of Iraq, how our news media are far too willing to carry water for Washington than to ascertain and report the truth of the matter.

Here are some of the facts and some of the context that the media have omitted or buried:

1. All nations license radio and TV stations because the airwaves can only accommodate a small number of broadcasters, far fewer than the number who would like to have the privilege to broadcast. In democratic nations the license is given for a specific term, subject to renewal. In the United States it is eight years; in Venezuela it is 20 years.

2. Venezuela is a constitutional republic. Chavez has won landslide victories that would be the envy of almost any elected leader in the world, in internationally monitored elections.

3. The vast majority of Venezuela’s media are not only in private hands, they are constitutionally protected, uncensored, and dominated by the opposition. RCTV’s owners can expand their cable and satellite programming, or take their capital and launch a print empire forthwith. Aggressive unqualified political dissent is alive and well in the Venezuelan mainstream media, in a manner few other democratic nations have ever known, including our own.

Now consider the specific facts of RCTV as it applied to have its broadcast license renewed.

The media here report that President Chavez “accuses RCTV of having supported a coup” against him. This is a common means of distorting the news: a fact is reported as accusation, and then attributed to a source that the press has done everything to discredit. In fact, RCTV - along with other broadcast news outlets - played such a leading role in the April 2002 military coup against Venezuela’s democratically elected government, that it is often described as “the world’s first media coup.”

In the prelude to the coup, RCTV helped mobilize people to the streets against the government, and used false reporting to justify the coup. One of their most infamous and effective falsifications was to mix footage of pro-Chavez people firing pistols from an overpass in Caracas with gory scenes of demonstrators being shot and killed. This created the impression that the pro-Chavez gunmen actually shot these people, when in fact the victims were nowhere near them. These falsified but horrifying images were repeated incessantly, and served as a major justification for the coup.

RCTV then banned any pro-government reporting during the coup. When Chavez returned to office, this too was blacked out of the news. Later the same year, RCTV once again made all-day-long appeals to Venezuelans to help topple the government during a crippling national oil strike.

If RCTV were broadcasting in the United States, its license would have been revoked years ago. In fact its owners would likely have been tried for criminal offenses, including treason.

RCTV’s broadcast frequency has been turned over to a new national public access channel that promises to provide programming from thousands of independent producers. It is an effort to let millions of Venezuelans who have never had a viable chance to participate in the media do so, without government censorship.

The Bush Administration opposes the Chavez government for reasons that have nothing to do with democracy, or else there would be a long list of governments for us to subvert or overthrow before it would get close to targeting Venezuela. Regrettably, our press coverage has done little to shed light on that subject.

Our news media should learn the lesson of Iraq and regard our own government’s claims with the same skepticism they properly apply to foreign leaders. Then Americans might begin to get a more accurate picture of the world, and be able to effectively participate in our foreign policy.

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5. IDEAS CANNOT BE KILLED

(I am not the first person whose death George Bush has anticipated, nor will I be the last.)

BY

FIDEL CASTRO

A few days ago, while analysing the expenses involved in the construction of three submarines of the Astute series, I said that with this money "75,000 doctors could be trained to look after 150 million people, assuming that the cost of training a doctor would be one-third of what it costs in the United States." Now, along the lines of the same calculations, I wonder: how many doctors could be graduated with the one hundred billion dollars that Bush gets his hands on in just one year to keep on sowing grief in Iraqi and American homes. Answer: 999,990 doctors who could look after 2 billion people who today do not receive any medical care.

More than 600,000 people have lost their lives in Iraq and more than 2 million have been forced to emigrate since the American invasion began. In the United States, around 50 million people do not have medical insurance. The blind market laws govern how this vital service is provided, and prices make it inaccessible for many, even in the developed countries. Medical services feed into the gross domestic product of the United States, but they do not generate conscience for those providing them nor peace of mind for those who receive them.

The countries with less development and more diseases have the least number of medical doctors: one for every 5,000, 10,000, 15,000, 20,000 or more people. When new sexually transmitted diseases appear such as Aids, which in merely 20 years has killed millions of persons - while tens of millions are afflicted, among them many mothers and children, although palliative measures now exist - the price of medications per patient could add up to 5,000, 10,000 or up to 15,000 dollars each year. These are fantasy figures for the great majority of Third World countries where the few public hospitals are overflowing with the ill who die piled up like animals under the scourge of a sudden epidemic.

To reflect on these realities could help us to better understand the tragedy. It is not a matter of commercial advertising that costs so much money and technology. Add up the starvation afflicting hundreds of millions of human beings; add to that the idea of transforming food into fuels; look for a symbol and the answer will be George Bush.

When he was recently asked by an important personality about his Cuba policy, his answer was this: "I am a hard-line president and I am just waiting for Castro's demise." The wishes of such a powerful gentleman are no privilege. I am not the first nor will I be the last that Bush has ordered to be killed; nor one of those people who he intends to go on killing individually or en masse.

"Ideas cannot be killed," Sarría emphatically said. Sarría was the black lieutenant, a patrol leader in Batista's army who arrested us, after the attempt to seize the Moncada Garrison, while three of us slept in a small mountain hut, exhausted by the effort of breaking through the siege. The soldiers, fuelled by hatred and adrenalin, were aiming their weapons at me even before they had identified who I was. "Ideas cannot be killed," the black lieutenant kept on repeating, practically automatically and in a hushed voice.

I dedicate those excellent words to you, Mr Bush.

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