Tag Archives: Ways and Means

News

Senior Democrat Charles Rangel charged with ethics violations

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From the Associated Press. (H/T ECM)

Excerpt:

A House investigative committee on Thursday charged New York Rep. Charles Rangel with multiple ethics violations, a blow to the former Ways and Means chairman and an election-year headache for Democrats.

[…]Rangel led the tax-writing Ways and Means panel until he stepped aside last March after the ethics committee criticized him in a separate case — finding that he should have known corporate money was paying for his trips to two Caribbean conferences.

What might they charge him for?

  • His use of official stationery to raise money for the Charles B. Rangel Center for Public Service at City College of New York.
  • Whether he had the Ways and Means Committee consider legislation that would benefit donors to the Rangel Center at the same time the congressman solicited donations or pledges.
  • Preserved a tax shelter for an oil drilling company, Nabors Industries, which has a chief executive who donated money to the center while Rangel’s committee considered the loophole legislation.
  • Used four rent-controlled apartment units in New York City, when the city’s rent stabilization program is supposed to apply to one’s primary residence. This raises the question of how all the units could be primary residences. One was a campaign office, raising the separate question of whether the rent break was an improper gift.
  • Whether Rangel, as required, publicly reported information on the financing and rental of his ownership interest in a unit within the Punta Cana Yacht Club in Punta Cana, Dominican Republic. Rangel also had to pay back taxes on the rental income.
  • Intentionally failed to report — when required — hundreds of thousands of dollars or more in assets. The amended disclosure reports added a credit union IRA, mutual fund accounts and stock.

The most ethical Congress in history!!! Well, maybe not.

News

How good are politicians at projecting the costs of social programs?

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From Big Government. (H/T ECM)

Excerpt:

Look back at when Medicare was first created:

At its start, in 1966, Medicare cost $3 billion. The House Ways and Means Committee estimated that Medicare would cost only about $ 12 billion by 1990 (a figure that included an allowance for inflation). This was a supposedly “conservative” estimate. But in 1990 Medicare actually cost $107 billion.

In 2007, total Medicare spending was $431 billion! That isn’t even close to the costs predicted in 1965. Why do we act like the numbers coming out of Congress and the CBO have any basis in reality?

The predictions for Medicaid were just as wrong:

In 1987, Congress projected that Medicaid – the joint federal-state health care program for the poor – would make special relief payments to hospitals of less than $1 billion in 1992. Actual cost: $17 billion.

The list goes on. The 1993 cost of Medicare’s home care benefit was projected in 1988 to be $4 billion, but ended up at $10 billion. The State Children’s Health Insurance Program (SCHIP), which was created in 1997 and projected to cost $5 billion per year, has had to be supplemented with hundreds of millions of dollars annually by Congress.

This is always good thing to remember when people try to pass massive new programs – and this goes for Republicans too, e.g. – Bush’s Medicare prescription drug benefit. Blech!

News

Nancy Pelosi refuses to ask Charlie Rangel to resign after ethics probe

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Here’s a re-cap of the story of his ethics probe:

And this story from CNS News is the latest.

Excerpt:

House Speaker Nancy Pelosi (D-Calif.) insisted on Friday that she is running the most ethical and honest Congress in history. At the same time, however, she indicated she will not ask House Ways and Means Chairman Charles Rangel (D.-N.Y.) to resign his chairmanship—at least for now.

Rangel was admonished this week by the ethics committee for taking corporate-funded trips to the Caribbean.

Pelosi noted that the ethics committee is looking into other issues involving Rangel, and made it clear that she was interested in seeing the outcome of these investigations soon.

The committee, for example, is looking at Rangel’s failure to disclose hundreds of thousands of dollars in assets that should have been listed on his congressional financial disclosure reports.

[…]When a reporter prefaced a question about Rangel by noting that Pelosi had promised to run the “most ethical and honest Congress in history” she interrupted him to say: “And we are.”

Here’s a video of Pelosi:

Does she seem accountable to you?