These Five People Just Saved Millions Of Americans By Protecting Health Care

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Supreme Court Health Care Decision: Individual Mandate Survives

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By- Mike Sacks

Posted: 06/28/2012 10:10 am Updated: 06/28/2012 11:16 am

WASHINGTON — The individual health insurance mandate is constitutional, the Supreme Court ruled Thursday, upholding the central provision of President Barack Obama’s signature Affordable Care Act.

The controlling opinion, written by Chief Justice John Roberts, upheld the mandate as a tax, although concluded it was not valid as an exercise of Congress’ commerce clause power. Justices Ruth Bader Ginsburg, Stephen Breyer, Sonia Sotomayor and Elena Kagan joined in the outcome.

The decision in National Federation of Independent Business v. Sebelius comes as something of a surprise after the generally hostile reception the law received during the six hours of oral arguments held over three days in March. But by siding with the court’s four Democratic appointees, Chief Justice Roberts avoided the delegitimizing taint of politics that surrounds a party-line vote while passing Obamacare’s fate back to the elected branches. GOP candidates and incumbents will surely spend the rest of the 2012 campaign season running against the Supreme Court and for repeal of the law.

Five justices concluded that the mandate, which requires virtually all Americans to obtain minimum health insurance coverage or pay a penalty, falls within Congress’ power under the Constitution to “lay and collect taxes.”

“The individual mandate cannot be upheld as an exercise of Congress’s power under the Commerce Clause,” Roberts wrote. “That Clause authorizes Congress to regulate interstate commerce, not to order individuals to engage in it. In this case, however, it is reasonable to construe what Congress has done as increasing taxes on those who have a certain amount of income, but choose to go without health insurance. Such legislation is within Congress’s power to tax.”

Ginsburg, writing separately for the four liberals, said they would have upheld the mandate under the commerce clause too. “Unlike the market for almost any other product or service, the market for medical care is one in which all individuals inevitably participate,” she wrote. “Virtually every person residing in the United States, sooner or later, will visit a doctor or other health care professional.”

Justices Antonin Scalia, Anthony Kennedy, Clarence Thomas and Samuel Alito joined in a dissent.

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WaPo Will Not Retract ‘Outsourcing’ Story

POLITICO

By DYLAN BYERS|

6/27/12 3:33 PM EDT

The Washington Post will not retract their June 21 report about Bain Capital‘s investments in firms that specialized in outsourcing American jobs, POLITICO has learned.

“We are very confident in our reporting,” Washington Post spokesperson Kris Coratti told POLITICO following a meeting between the Post’s executive editor Marcus Brauchli and Mitt Romney campaign representatives, who had sought a retraction from the paper.

The Romney campaign would not discuss the meeting. “It was an off-the-record private meeting so I don’t have anything for you on that,” campaign press secretary Andrea Saul told POLITICO.

UPDATE: Here are the Romney campaign’s complaints against The Washington Post story.

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Arizona Immigration Law Ruling: Supreme Court Delivers Split Decision

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By- Mike Sacks

Posted: 06/25/2012 10:19 am Updated: 06/25/2012  2:52 pm

WASHINGTON — The Supreme Court on Monday delivered a split decision in the Obama administration’s challenge to Arizona’s aggressive immigration law, striking multiple provisions but upholding the “papers please” provision. Civil rights groups argue the latter measure, a centerpiece of S.B. 1070, invites racial profiling.

Monday’s decision on “papers please” — Section 2(B) in S.B. 1070 — rested on the more technical issue of whether the law unconstitutionally invaded the federal government’s exclusive prerogative to set immigration policy. The justices found that it was not clear whether Arizona was supplanting or supporting federal policy by requiring state law enforcement to demand immigration papers from anyone stopped, detained or arrested in the state who officers reasonably suspect is in the country without authorization. The provision that was upheld — at least for now — also commands police to check all arrestees’ immigration status with the federal government before they are released.

“The nature and timing of this case counsel caution in evaluating the validity of [Section] 2(B),” wrote Justice Anthony Kennedy on behalf of Chief Justice John Roberts and Justices Ruth Bader Ginsburg, Stephen Breyer and Sonia Sotomayor, noting that the law has not yet gone into effect. Because “[t]here is a basic uncertainty about what the law means and how it will be enforced,” the majority chose to allow the law to go forward, but made clear that “[t]his opinion does not foreclose other preemption and constitutional challenges to the law as interpreted and applied after it goes into effect.”

Indeed, such constitutional suits are already proceeding against Arizona’s “papers please” policy. Earlier this month, U.S. District Judge Susan Bolton heard arguments on whether to certify a class of what could be hundreds of thousands of individuals now trying to bring equal protection, free speech and due process challenges to S.B. 1070.

While Arizona succeeded on Section 2(B), the Supreme Court gave the Obama administration a victory by striking three other challenged provisions as stepping on federal prerogatives. Two of the provisions made it a crime for undocumented immigrants to be present and to seek employment in Arizona, while a third authorized police officers to make warrantless arrests of anyone they had probable cause to believe had committed a deportable offense.

“The history of the United States is in part made of the stories, talents and lasting contributions of those who crossed oceans and deserts to come here,” Kennedy wrote. “The National Government has significant power to regulate immigration. With power comes responsibility, and the sound exercise of national power over immigration depends on the Nation’s meeting its responsibility to base its laws on a political will informed by searching, thoughtful, rational civic discourse. Arizona may have understandable frustrations with the problems caused by illegal immigration while that process continues, but the State may not pursue policies that undermine federal law.”

Justices Antonin Scalia and Clarence Thomas each wrote separately to say they would have upheld all four of S.B. 1070’s challenged provisions, while Justice Samuel Alito wrote that he would have upheld all but the provision that criminalized an immigrant’s failure to register with federal authorities.

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Companies’ Ills Did Not Harm Romney’s Firm

The Boston headquarters of Bain Capital, a firm that usually found a way to make money from companies it controlled even when they ultimately went bankrupt.

New York Times
By MICHAEL LUO and JULIE CRESWELL
Published: June 22, 2012

Cambridge Industries, an automotive plastics supplier whose losses had been building for three consecutive years, finally filed for bankruptcy in May 2000 under a mountain of debt that had ballooned to more than $300 million.

Yet Bain Capital, the private equity firm that controlled the Michigan-based company, continued to religiously collect its $950,000-a-year “advisory fee” in quarterly installments, even to the very end, according to court documents.

In all, Bain garnered more than $10 million in fees from Cambridge over five years, including a $2.25 million payment just for buying the company, according to bankruptcy records and filings with the Securities and Exchange Commission. Meanwhile, Bain’s investors saw their $16 million investment in Cambridge wiped out.

That Bain was able to reap revenue from Cambridge, even as it foundered, was hardly unusual.

The private equity firm, co-founded and run by Mitt Romney, held a majority stake in more than 40 United States-based companies from its inception in 1984 to early 1999, when Mr. Romney left Bain to lead the Salt Lake City Olympics. Of those companies, at least seven eventually filed for bankruptcy while Bain remained involved, or shortly afterward, according to a review by The New York Times. In some instances, hundreds of employees lost their jobs. In most of those cases, however, records and interviews suggest that Bain and its executives still found a way to make money.

Mr. Romney’s experience at Bain is at the heart of his case for the presidency. He has repeatedly promoted his years working in the “real economy,” arguing that his success turning around troubled companies and helping to start new ones, producing jobs in the process, has prepared him to revive the country’s economy. He has fended off attacks about job losses at companies Bain owned, saying, “Sometimes investments don’t work and you’re not successful.” But an examination of what happened when companies Bain controlled wound up in bankruptcy highlights just how different Bain and other private equity firms are from typical denizens of the real economy, from mom-and-pop stores to bootstrapping entrepreneurial ventures.

Bain structured deals so that it was difficult for the firm and its executives to ever really lose, even if practically everyone else involved with the company that Bain owned did, including its employees, creditors and even, at times, investors in Bain’s funds.
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Romney’s Bain Capital Invested In Companies That Moved Jobs Overseas

Washington Post

By Tom Hamburger, Thursday, June 21, 7:53 PM

Mitt Romney’s financial company, Bain Capital, invested in a series of firms that specialized in relocating jobs done by American workers to new facilities in low-wage countries like China and India.

During the nearly 15 years that Romney was actively involved in running Bain, a private equity firm that he founded, it owned companies that were pioneers in the practice of shipping work from the United States to overseas call centers and factories making computer components, according to filings with the Securities and Exchange Commission.

While economists debate whether the massive outsourcing of American jobs over the last generation was inevitable, Romney in recent months has lamented the toll it’s taken on the U.S. economy. He has repeatedly pledged he would protect American employment by getting tough on China.

“They’ve been able to put American businesses out of business and kill American jobs,” he told workers at a Toledo fence factory in February. “If I’m president of the United States, that’s going to end.”

Speaking at a metalworking factory in Cincinnati last week, Romney cited his experience as a businessman, saying he knows what it would take to bring employers back to the United States. “For me it’s all about good jobs for the American people and a bright and prosperous future,” he said.

For years, Romney’s political opponents have tried to tie him to the practice of outsourcing American jobs. These political attacks have often focused on Bain’s involvement in specific business deals that resulted in job losses.

But a Washington Post examination of securities filings shows the extent of Bain’s investment in firms that specialized in helping other companies move or expand operations overseas. While Bain was not the largest player in the outsourcing field, the private equity firm was involved early on, at a time when the departure of jobs from the United States was beginning to accelerate and new companies were emerging as handmaidens to this outflow of employment.

Bain played several roles in helping these outsourcing companies, such as investing venture capital so they could grow and providing management and strategic business advice as they navigated this rapidly developing field.

Over the past two decades, American companies have dramatically expanded their overseas operations and supply networks, especially in Asia, while shrinking their workforces at home. McKinsey Global Institute estimated in 2006 that $18.4 billion in global information technology work and $11.4 billion in business-process services have been moved abroad.

While the export of jobs has been disruptive for many workers and communities in the United States, outsourcing has been a powerful economic force. It has often helped lower the prices that American consumers pay for products and created a global supply chain that has made U.S. companies more nimble and profitable.

Romney campaign officials repeatedly declined requests to comment on Bain’s record of investing in outsourcing firms during the Romney era. Campaign officials have said it is unfair to criticize Romney for investments made by Bain after he left the firm but did not address those made on his watch. In response to detailed questions about outsourcing investments, Bain spokesman Alex Stanton said, “Bain Capital’s business model has always been to build great companies and improve their operations. We have helped the 350 companies in which we have invested, which include over 100 start-up businesses, produce $80 billion of revenue growth in the United States while growing their revenues well over twice as fast as both the S&P and the U.S. economy over the last 28 years.”

Until Romney left Bain Capital in 1999, he ran it with a proprietor’s zeal and attention to detail, earning a reputation for smart, hands-on management.

Bain’s foray into outsourcing began in 1993 when the private equity firm took a stake in Corporate Software Inc., or CSI, after helping to finance a $93 million buyout of the firm. CSI, which catered to technology companies like Microsoft, provided a range of services including outsourcing of customer support. Initially, CSI employed U.S. workers to provide these services but by the mid-1990s was setting up call centers outside the country.

Two years after Bain invested in the firm, CSI merged with another enterprise to form a new company called Stream International Inc. Stream immediately became active in the growing field of overseas calls centers. Bain was initially a minority shareholder in Stream and was active in running the company, providing “general executive and management services,” according to SEC filings.

By 1997, Stream was running three tech-support call centers in Europe and was part of a call center joint venture in Japan, an SEC filing shows. “The Company believes that the trend toward outsourcing technical support occurring in the U.S. is also occurring in international markets,” the SEC filing said.

Stream continued to expand its overseas call centers. And Bain’s role also grew with time. It ultimately became the majority shareholder in Stream in 1999 several months after Romney left Bain to run the Salt Lake City Olympics.

Bain sold its stake in Stream in 2001, after the company further expanded its call center operations across Europe and Asia.

The corporate merger that created Stream also gave birth to another, related business known as Modus Media Inc., which specialized in helping companies outsource their manufacturing. Modus Media was a subsidiary of Stream that became an independent company in early 1998. Bain was the largest shareholder, SEC filings show.

Modus Media grew rapidly. In December 1997, it announced it had contracted with Microsoft to produce software and training products at a center in Australia. Modus Media said it was already serving Microsoft from Asian locations in Singapore, South Korea, Japan and Taiwan and in Europe and the United States.

Two years later, Modus Media told the SEC it was performing outsource packaging and hardware assembly for IBM, Sun Microsystems, Hewlett-Packard Co. and Dell Computer Corp. The filing disclosed that Modus had operations on four continents, including Asian facilities in Singapore, Taiwan, China and South Korea, and European facilities in Ireland and France, and a center in Australia.

“Technology companies, in particular, have increasingly sought to outsource the business processes involved in their supply chains,” the filing said. “. . . We offer a range of services that provide our clients with a one-stop shop for their outsource requirements.”

According to a news release issued by Modus Media in 1997, its expansion of outsourcing services took place in close consultation with Bain. Terry Leahy, Modus’s chairman and chief executive, was quoted in the release as saying he would be “working closely with Bain on strategic expansion.” At the time, three Bain directors sat on the corporate board of Modus.

The global expansion that began while Romney was at Bain continued after he left. In 2000, the firm announced it was opening a new facility in Guadalajara, Mexico, and expanding in China, Malaysia, Taiwan and South Korea.

In addition to taking an interest in companies that specialized in outsourcing services, Bain also invested in firms that moved or expanded their own operations outside of the United States.

One of those was a California bicycle manufacturer called GT Bicycle Inc. that Bain bought in 1993. The growing company relied on Asian labor, according to SEC filings. Two years later, with the company continuing to expand, Bain helped take it public. In 1998, when Bain owned 22 percent of GT’s stock and had three members on the board, the bicycle maker was sold to Schwinn, which had also moved much of its manufacturing offshore as part of a wider trend in the bicycle industry of turning to Chinese labor.

Another Bain investment was electronics manufacturer SMTC Corp. In June 1998, during Romney’s last year at Bain, his private equity firm acquired a Colorado manufacturer that specialized in the assembly of printed circuit boards. That was one of several preliminary steps in 1998 that would culminate in a corporate merger a year later, five months after Romney left Bain. In July 1999, the Colorado firm acquired SMTC Corp., SEC filings show. Bain became the largest shareholder of SMTC and held three seats on its corporate board. Within a year of Bain taking over, SMTC told the SEC it was expanding production in Ireland and Mexico.

In its prospectus that year, SMTC explained that it was in a strong position to meet the swelling demand from other manufacturers for overseas production of circuit boards. The company said that communications and networking companies “are dramatically increasing the amount of manufacturing they are outsourcing and we believe our technological capabilities and global manufacturing platform are well suited to capitalize on this opportunity.”

Just as Romney was ending his tenure at Bain, it reached the culmination of negotiations with Hyundai Electronics Industry of South Korea for the $550 million purchase of its U.S. subsidiary, Chippac, which manufactured, tested and packaged computer chips in Asia. The deal was announced a month after Romney left Bain. Reports filed with the SEC in late 1999 showed that Chippac had plants in South Korea and China and was responsible for marketing and supplying the company’s Asian-made computer chips. An overwhelming majority of Chippac’s customers were U.S. firms, including Intel, IBM and Lucent Technologies.

A filing with the SEC revealed the promise that Chippac offered investors. “Historically, semiconductor companies primarily manufactured semiconductors in their own facilities,” the filing said. “Today, most major semiconductor manufacturers use independent packaging and test service providers for at least a portion of their . . . needs. We expect this outsourcing trend to continue.”

Research editor Alice Crites contributed to this article.

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Romney Campaign Said to Ask Scott to Downplay Job Gains

Bloomberg

By Michael C. Bender –  Jun 21, 2012 1:46 PM MT

Mitt Romney’s presidential campaign asked Florida Governor Rick Scott to tone down his statements heralding improvements in the state’s economy because they clash with the presumptive Republican nominee’s message that the nation is suffering under President Barack Obama, according to two people familiar with the matter.

Scott, a Republican, was asked to say that the state’s jobless rate could improve faster under a Romney presidency, according to the people, who asked not to be named.

What’s unfolding in Florida highlights a dilemma for the Romney campaign: how to allow Republican governors to take credit for economic improvements in their states while faulting Obama’s stewardship of the national economy. Republican governors in Ohio, Virginia, Michigan and Wisconsin also have highlighted improving economies.

Scott should follow the advice of the Romney campaign and it won’t undermine his own message, said Mac Stipanovich, a political strategist and lobbyist in Florida.

“This is one of those situations where you could have it both ways and there’s enough truth in it that it would resonate,” Stipanovich said. “It would be better if everybody was singing from the same hymnal.”

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Follow the Dark Money

The down and dirty history of secret spending, PACs gone wild, and the epic four-decade fight over the only kind of political capital that matters.

Mother Jones  —By Andy Kroll

| July/August 2012 Issue

“There are two things that are important in politics. The first is money and I can’t remember what the second one is.“—Mark Hanna, 19th-century mining tycoon and GOP fundraiser

I.NIXONLAND

Bill Liedtke was racing against time. His deadline was a little more than a day away. He’d prepared everything—suitcase stuffed with cash, jet fueled up, pilot standing by. Everything but the Mexican money.

The date was April 5, 1972. Warm afternoon light bathed the windows at Pennzoil Company headquarters in downtown Houston. Liedtke, a former Texas wildcatter who’d risen to be Pennzoil’s president, and Roy Winchester, the firm’s PR man, waited anxiously for $100,000 due to be hand-delivered by a Mexican businessman named José Díaz de León. When it arrived, Liedtke (pronounced LIT-key) would stuff it into the suitcase with the rest of the cash and checks, bringing the total to $700,000. The Nixon campaign wanted the money before Friday, when a new law kicked in requiring that federal campaigns disclose their donors. Maurice Stans, finance chair of the Committee for the Re-Election of the President, or CREEP, had told fundraisers they needed to beat that deadline. Liedtke said he’d deliver.

Díaz de León finally arrived later that afternoon, emptying a large pouch containing $89,000 in checks and $11,000 in cash onto Liedtke’s desk. The donation was from Robert Allen, president of Gulf Resources and Chemical Company. Allen—fearing his shareholders would discover that he’d given six figures to Nixon—had funneled it through a Mexico City bank to Díaz de León, head of Gulf Resources’ Mexican subsidiary, who carried the loot over the border.

Winchester and another Pennzoil man rushed the suitcase to the Houston airport, where a company jet was waiting on the tarmac. The two men climbed aboard, bound for Washington. They touched down in DC hours later and sped directly to CREEP’s office at 1701 Pennsylvania Avenue NW, across the street from the White House. They arrived at 10 p.m.

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Sheldon Adelson To Lavish $71 Million In Casino Money On GOP Super PACS, Nonprofits

Las Vegas Sands Chairman and CEO Sheldon Adelson speaks at a news conference for the Sands Cotai Central in Macau Wednesday, April 12, 2012. (AP Photo/Kin Cheung)

HuffPost

Peter H. Stone

Posted: 06/16/2012 12:24 am Updated: 06/16/2012  2:06 am

WASHINGTON — Casino billionaire Sheldon Adelson, whose net worth makes him one of the world’s richest men, is on a check-writing spree that will soon bring his total political contributions in this election cycle to at least $71 million, according to sources familiar with his spending. That money is spread across the spectrum of GOP super PACs, which are required to disclose donors, and nonprofits, which are not.

Adelson and his wife, Miriam, along with other family donations, have already reached $36 million, including $10 million to the Romney-backing super PAC Restore Our Future that was reported this week. But two GOP fundraisers familiar with his plans say that Adelson has given or pledged at least $35 million more to three conservative nonprofit groups: the Karl Rove-linked Crossroads GPS, another with ties to billionaires Charles and David Koch and a third with links to House Majority Leader Eric Cantor (R-Va.).

Adelson, 78, is a staunch supporter of the Israeli right and a strong foe of American unions. In recent years, Adelson has been a major financier of GOP-allied groups, but has emerged this year as the consummate super donor in the wake of 2010 court rulings that permitted corporations, unions and individuals to supply unlimited amounts of money, sometimes anonymously, to independent groups that can advocate directly for candidates.

Adelson has told friends that he might give as much as $100 million in donations this year in support of GOP candidates and conservative issues. That target now seems easily within reach and could be surpassed, say the two GOP fundraisers with ties to the casino magnate.

Crossroads GPS — founded by GOP consultants Rove and Ed Gillespie in 2010 alongside the super PAC American Crossroads — could wind up as the major recipient of the casino titan’s largess, due to Adelson’s longstanding and close ties to Rove. Crossroads GPS has already received one $10 million cash infusion this cycle from Adelson, who, according to the two GOP fundraisers, recently committed to another donation of the same amount.

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Obama Administration To Stop Deporting Younger Undocumented Immigrants And Grant Work Permits

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Elise Foley

Posted: 06/15/2012  9:41 am Updated: 06/15/2012  1:12 pm

WASHINGTON — The Obama administration responded to years of pressure from immigrants rights groups on Friday with an announcement that it will stop deportations and begin granting work permits for some Dream Act-eligible students.

Some 800,000 people are expected to come forward to receive deferred action from deportation, as first reported by the Associated Press on Friday morning. The policy change will apply to young undocumented immigrants who entered the United States as children, along the same lines as the Dream Act, a decade-old bill that passed in the House of Representatives but failed in the Senate in 2010.

Department of Homeland Security Secretary Janet Napolitano told reporters that the policy change is part of a general shift by the Obama administration to focus on deporting high-priority undocumented immigrants.

“This grant of deferred action is not immunity,” she said. “It is not amnesty. It is an exercise of discretion so that these young people are not in the removal system. It will help us to continue to streamline immigration enforcement and ensure that resources are not spent pursuing the removal of low-priority cases involving productive young people.”

“More important, I believe this action is the right thing to do,” she continued.

The policy change will effectively enable Dream Act-eligible young people, often called DREAMers, to stay in the United States without fear of deportation, and without legislation from a Congress that is unlikely to pass a bill.

Undocumented immigrants who came to the United States under the age of 16 and have lived in the country for at least five years can apply for the relief, so long as they are under the age of 30, according to a memo from DHS. They also must be either an honorably discharged veteran of the Coast Guard or armed forces, or a student who has graduated from high school or obtained a GED. Immigrants will not be eligible if they “post a threat to national security or public safety,” including having been convicted of a felony, a “significant” misdemeanor or multiple misdemeanors.

Immigration and Customs Enforcement, as well as Customs and Border Protection, were instructed in a memo to immediately react by reviewing individual cases and preventing eligible immigrants from being put in removal proceedings. Those already in proceedings could be granted deferred action for two years, and then may apply for renewal. They will be given work authorization on a case-by-case basis.

A senior administration official told reporters on the condition of anonymity that most eligible undocumented immigrants will be required to go to the United States Citizenship and Immigration Services to provide documents and pay a fee.

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