Thursday, May 29, 2014

Where is all that money going?

The latest issue of The Washington Spectator arrived today. I've read most of it. Alas, the website is being redesigned, so I can't link to individual stories.

The cover issue is about how the Louisiana legislature serves the interests of the oil industry. The current complaint is oil companies have refused to do any restoration work and the barrier islands are sliding into the sea. There will be no buffer when the next hurricane arrives. A Green Army is now rising up to offer more than token opposition. That coalition is being led by Lt. General Russel Honoré. He earned his fame when Katrina struck New Orleans and he helped rescue some victims. Along the way he was instrumental in changing the news stories because he recognized the racial subtext in the media.

Now Honoré is taking on big oil. And when he calls an oil company, they at least listen. Here is part of his standard speech, covering more than oil controlling the gov't.
Why is Louisiana the third-largest energy producer, but the second-poorest state in the nation? There are 100 refineries and chemical plants between New Orleans and Baton Rouge. They're making money. Where is all that money going? Why don't our kids have broadband in their schools? Why are we ranked 46th in public education? Why do we have some of the lowest health care standards in the nation? This is not politics, this is warfare.



The other important Washington Spectator story discusses the double tax subsidy many companies in the restaurant industry get. First: the workers are paid so little they qualify for government assistance of food stamps and Medicaid. So taxpayers subsidize worker wages to the tune of $7 billion a year. Second: the compensation packages for most restaurant corporations doesn't come as salary but as "performance based" bonuses. Corporations are taxed for salary, not these kinds of bonuses. The top 20 corporations paid $662 million in such packages and avoided $232 million in taxes. Just think about how much this could add to the food stamp program their employees rely on.

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