Senator Levin's Biweekly Newspaper Article -- Found in our "Opinion Section"

POSTED 8/24/08

Billions of Back Taxes

Today, over 1.6 million businesses owe more than $58 billion in unpaid federal payroll taxes accumulated over the last ten years. The U.S. Senate Permanent Subcommittee on Investigations, which I chair, has been investigating this blatant cheating. We asked the Government Accountability Office (GAO) to study the problem of unpaid payroll taxes, and last month we held a hearing on the issue. What we found is a disgrace.

Employers are required to withhold from their employees’ salaries amounts for income taxes, Social Security, and Medicare. By law, it is the duty of these businesses to hold these funds “in trust” for the government. The GAO’s study reveals that while the vast majority of businesses are complying with the law, some are using the funds withheld from employee paychecks for their own benefit.

The GAO did a similar study of payroll taxes in 1998, then reporting that 1.8 million businesses owed a total of $49 billion in unpaid taxes. In ten years, the number of delinquent businesses has slightly declined, but the amount owed has grown. Despite the fact that the IRS has continued to deem collection of payroll taxes “one of its highest priorities,” part of the reason this is happening appears to be ineffective Internal Revenue Service (IRS) payroll collection efforts.

While the IRS collects 99.8 percent of all payroll taxes, leaving $58 billion on the table is still unacceptable.

There are a number of problems with IRS payroll collection efforts. Most critically, a small but growing number of payroll tax cheats have been allowed to repeatedly violate the law for years at a time. The GAO’s study reveals that the number of firms with more than five years of payroll tax debt has nearly tripled, from 5,000 in 1998 to 14,000 in 2007. IRS data show that the likelihood of collecting what is owed from businesses declines dramatically the longer payroll taxes go unpaid. The result is that 52% of existing payroll debt is now uncollectable.

By using employees’ tax dollars to incur lower operating costs, these businesses use their unpaid payroll taxes to gain an unfair advantage over honest competitors.

The IRS has also failed to make the most effective use of their available enforcement tools. Those tools include filing a tax lien, which allows the IRS to collect back taxes through property owned by the business. Yet, in 30% of cases that were assigned to a revenue officer for review, tax liens were not filed against businesses.

The IRS can also hand out Trust Fund Recovery Penalties (TFRPs), which make the owners or officers of the delinquent businesses personally liable for the outstanding debt. The GAO report indicated that, on average, the IRS took almost two years to start collection on a TFRP. Finally, while $9 billion in payroll tax cases do not even have a single officer assigned to them, the IRS at times doubles up and assigns a second officer to some cases.

To help address these issues, Congress should enact the Tax Lien Simplification Act that I introduced. It would create an electronic filing system to replace the current wasteful, burdensome and inefficient paper filing system. The new streamlined system would save $570 million over ten years, according to IRS estimates.

I also believe the IRS should implement much-needed payroll tax collection performance measures. The IRS needs to track payroll tax cases and evaluate revenue officers on their efforts in recovering unpaid taxes, as well as put in place more automatic actions against cheating businesses.

We must hold the IRS more accountable for its performance, to ensure that payroll tax cheats will no longer be able to misuse billions of dollars of employee and taxpayer money for their own benefit.

POSTED 8/8/08

Levin, Voinovich Hail Swift Senate Passage of Historic Resolution to Protect Great Lakes

 Great Lakes Compact now goes to House for consideration

WASHINGTON – U.S. Senators Carl Levin, D-Mich., and George V. Voinovich, R-Ohio, co-chairs of the Senate Great Lakes Task Force, praised the passage of the Great Lakes – St. Lawrence River Water Basin Resources Compact by unanimous consent in the Senate today. The joint resolution, S.J. Res. 45, now goes to the House of Representatives for consideration. Once passed by the House, the joint resolution goes to the President for his signature.

“We are temporary stewards of this unique national treasure, the largest fresh water system in the world,” Sen. Levin said. “Senate passage of this Compact will help us protect the Great Lakes from water diversions and preserve this invaluable resource for future generations. Sensible conservation goals in water use will ensure that our children and great grandchildren benefit from the Great Lakes as we do.”

“Today’s passage is incredible news because The Great Lakes are not only an indispensable natural, economic and recreation resource for Ohio and many other states – they are one of our nation’s greatest natural resources,” Sen. Voinovich said. “The best way we can preserve and protect them is by passing and enacting the Great Lakes Compact and keeping control of the lakes in the hands of the states that surround them and value them the most.”

In 2000, Congress passed legislation directing the governors of the Great Lakes states – Illinois, Indiana, Michigan, Minnesota, New York, Ohio, Pennsylvania and Wisconsin – to negotiate a water management agreement. In 2005, the eight Great Lakes governors, in coordination with the Canadian Premiers of Ontario and Quebec, completed negotiations on the Great Lakes-St. Lawrence River Basin Water Resources Compact.

Each of the eight Great Lakes legislatures considered and approved the Compact, which will protect the Great Lakes through better water management, conservation and public involvement. Congress must pass the joint resolution before the Great Lakes-St. Lawrence River Water Basin Water Resources Compact can achieve full force and effect as an interstate compact. The House of Representatives is expected to consider the joint resolution when it reconvenes in September.

The Compact includes the following:

• A general ban on new diversions of water from the Basin, but limited exceptions could be allowed in communities near the Basin when rigorous standards are met;
• Economic development will be fostered through sustainable use and responsible management of Basin waters;
• Communities that apply for an exception will have a clear, predictable decision making process; standards to be met; and opportunities to appeal decisions. These processes and standards do not exist under current law;
• The states will use a consistent standard to review proposed uses of Basin water. The states will have flexibility regarding their water management programs and how to apply this standard;
• Regional goals and objectives for water conservation and efficiency will be developed and they will be reviewed every five years. Each state will develop and implement a consistent water conservation and efficiency program that may be voluntary or mandatory.

POSTED 7/24/08 MOVED 8/6/08

Senator Levin comments:

60th Anniversary of the Integration of the Armed Forces

Mr. President, today [7/23] we recognize the 60th anniversary of one of the momentous steps forward for equality of opportunity in our Nation's history. On July 26, 1948, President Harry Truman, signed Executive Order 9981. That order read, in part:

"[T]here shall be equality of treatment and opportunity for all persons in the armed services without regard to race, color, religion or national origin."

While equality, as a concept, is deeply rooted in our Nation's founding, equality in practice was exceedingly rare in our Nation's armed services before President Truman's action. His order reversed nearly 175 years of discrimination, segregation, and exclusion from the armed services based on race, dating back to the Continental Army during the Revolutionary War.

The order benefited the armed services as well as the countless men and women--of all races--who have subsequently served in integrated units. Further, the diversity of our servicemembers has contributed to its being the most capable, strongest military force that the world has ever known.

In an amici brief for the U.S. Supreme Court, former officers of the Army, Navy, Air Force, and Marine Corps as well as civilian leaders and former Secretaries of Defense agreed that integration of the military was the result of "a principled recognition that segregation is unjust and incompatible with American values," and further that the military's "efficient, effective deployment required integration."

While we all appreciate President Truman's action today, appreciation was not always widespread. The integration order was met with criticism from many who were accustomed to segregation. And, as 1948 was an election year--Truman's first, after he succeeded President Roosevelt many felt that Truman was all but giving away the election by fracturing his party. The doubters and critics make Truman's steadfastness all the more noteworthy.

In the decades that followed 1948, the civil rights movement pushed the entire Nation to make enormous strides towards ending segregation and integrating everything from schools to neighborhoods.

From the Emancipation Proclamation, to the integration of the armed services, to Brown v. Board of Education, to the Civil Rights Acts, progress towards racial equality in America has marched forward unceasingly. The integration of the armed services was one of the enormous and critical steps in that march.

Levin, Stabenow: Senate Appropriations Committee Approves Nearly $100 Million for Military Construction Projects in Michigan

WASHINGTON – Senators Carl Levin (D-Mich.) and Debbie Stabenow (D-Mich.) announced today that the Senate Appropriations Committee has approved a bill to fund $99,770,000 in military construction projects in Michigan for fiscal year 2009. The Detroit Arsenal in Warren will receive more than two-thirds of that amount, $68.5 million, to support the influx of more than 1,000 personnel moving to the base from other locations around the country.

The military construction bill still needs to be approved by the full Senate and a House-Senate conference committee before being given final approval by Congress and being signed into law by the president.

“These funds are crucial for the new construction and renovations necessary to accommodate the more than 1,000 personnel who will be transferred to the Detroit Arsenal,” said Levin, chairman of the Senate Armed Services Committee. “This bill will also provide much needed improvements at Camp Grayling, the Army Reserve Center in Saginaw, and Selfridge Air National Guard Base.”

“These projects will allow Michigan to continue its long and proud tradition of helping to keep America safe, strong and secure,” said Stabenow. “I am pleased this funding will help build new facilities to train and house our Army Reserve and National Guard units and support the vital research and development work of the Detroit Arsenal.”

The military construction bill funds the following seven military construction projects in Michigan:

Detroit Arsenal

$56 million to begin the construction of new office buildings at the Detroit Arsenal. These Base Realignment and Closure (BRAC) funds will provide the office space and parking necessary to absorb the additional personnel transferring from other military installations to the Detroit Arsenal as a result of the 2005 BRAC actions. The second phase of this project is planned for fiscal year 2010.

$6.4 million for a new weapons maintenance and operations facility at the Detroit Arsenal. These BRAC funds will pay for building renovations and construction to accommodate a new training facility for the maintenance and operation of tanks and tank weapons. The final 2005 BRAC report moved this mission to the Detroit Arsenal.

$6.1 million for a new entrance to the Detroit Arsenal from Mound Road. This new entrance will help facilitate the screening of commercial vehicle traffic. Currently, commercial vehicles are forced to enter Detroit Arsenal through the main gate, slowing entry for those who work at the base and potentially causing an unsafe volume of traffic in the area around the main gate.

Camp Grayling

$16.9 million to begin barracks replacement at Camp Grayling. The soldier billeting areas of Camp Grayling were built in increments beginning in the 1950s. These facilities are substandard in terms of construction, function, efficiency, and space. The current facilities do not meet existing fire protection standards, have numerous safety violations and provide inadequate sleeping accommodations for deploying personnel.

$2 million for an Infantry Squad Battle Course at Camp Grayling. This new training course will improve the readiness of infantry units and enable National Guard units to maximize training time using a variety of tools including a computer scored electronic target system.

Army Reserve Center in Saginaw

$11.5 million for a new Army Reserve Center in Saginaw. These funds will pay for the construction of a new training facility with administrative, educational, training, simulator, and physical fitness areas for two Army Reserve units. A maintenance shop will also be constructed to provide work bays for training and administrative support for military equipment stored at this facility.

Selfridge Air National Guard Base

$870,000 for facility modifications at Selfridge Air National Guard Base. These BRAC funds will pay for facility modifications needed to support the transition from F-16 to A-10 aircraft beginning later this year.

POSTED7/19/08 moved 7/24/08

Investigating Tax Havens

Dear Mike --

This morning I convened a hearing to look at two foreign banks that relied on secrecy and deception to hide the misconduct of their clients and actions they themselves have been taking that facilitate U.S. tax evasion. 

Click here to watch the hearing live.

One of those is a private bank owned by the royal family of Liechtenstein, a tiny alpine nation whose 35,000 citizens would fill one-third of the University of Michigan football stadium.  The nation has no airport, but supports 15 banks that together boast of holding more than $200 billion in assets. 

Each year the United States Treasury loses an estimated $100 billion in tax revenues from offshore tax abuses due to assets hidden in places like Liechtenstein. But there are a number of ways we can fight back to end tax haven abuses.

Click here to read my full opening statement, including a number of actions that the U.S. government and Congress can take to crack down on off shore tax havens.

Tax evasion eats at the fabric of society, not only by starving health care, education, and other needed government services of resources, but also by undermining trust - making honest folks feel like they are being abused when they pay their fair share.

We are determined to tear down the walls of secrecy tax havens rely on in favor of transparency, cooperation, and tax compliance.

Sincerely,

Carl Levin

POSTED 6/29/08 MOVED 7/19/08

Levin Statement on Unemployment Insurance Extension 

WASHINGTON -- Following is a statement by Sen. Carl Levin, D-Mich., regarding the Senate vote last night[6/26] to approve a 13-week extension of unemployment insurance benefits for Americans who have exhausted the benefits previously available:

As Michigan continues to suffer with the nation’s highest unemployment rate, the unemployment insurance benefit extension approved last night will provide much-needed assistance to Americans who are struggling to find jobs. Between May 2007 and May of this year, over 170,000 residents exhausted their unemployment benefits and could not find jobs. This year, on average each month about 15,000 more Michigan residents face this same predicament.

People in Michigan and across the country face tremendous economic pressures, from a rate of home foreclosures that is up 130% from 2006, soaring costs of health care, to skyrocketing prices for food and gas.

By extending unemployment insurance – just as we have done in previous downturns of this magnitude – we can boost the economy and help some families cope with exceedingly difficult circumstances.

If the trend of rising unemployment rates continues, it is my hope that Congress will consider another emergency unemployment insurance package that will do more to help states struggling with the highest rates of unemployment.

POSTED 6/22/08 MOVED 7/19/08

Dear Friends,

Let me share with you how a lawyer for the United States Government described torture: "It is basically subject to perception. If the detainee dies you're doing it wrong."

How on earth did we get to the point where officials, not in the government of some abusive enemy of America, but in our own government, describe torture in these terms?

Over a year ago, I launched an investigation by the Senate Armed Services Committee, which I chair, into the treatment of detainees in U.S. custody, and on Tuesday we held our first public hearing on the matter.

We found that senior officials in the United States government sought information on aggressive techniques, twisted the law to create the appearance of their legality, and authorized their use against detainees. That led to abuses like stripping detainees naked, putting them in stress positions, using dogs to scare them, putting leashes around their necks to humiliate them, hooding them, depriving them of sleep, and blasting music at them.

Click here to read my full opening statement on the origins of aggressive interrogation techniques.

Why should we care about the rights of detainees?  General David Petraeus answered that question in a letter to his troops last year, writing "In everything we do, we must observe the standards and values that dictate that we treat noncombatants and detainees with dignity and respect. While we are warriors, we are also all human beings."

Our investigation will continue, but already it's clear that some of our nations' leaders lost track of the standards and values that should guide us as Americans and as human beings.

Sincerely,

Carl Levin

POSTED 7/10/08

The Medicare Improvements for Patients and Providers Act

I support the Medicare Improvements for Patients and Providers Act (H.R.6331), which makes a number of needed changes related to Medicare reimbursement, including reimbursement for physicians’ services.

Medicare physician fee schedule payments are updated each year according to a complex formula based on a Sustainable Growth Rate (SGR). Unfortunately, because of the way the formula is calculated, even if Congress prevents the cuts in a given year, scheduled reimbursements cuts are likely to increase in subsequent years unless Congress takes additional action, such as developing a permanent alternative to the SGR formula.

I support efforts to ensure that physicians receive adequate reimbursement for their services. It could be financially unsound for physicians to continue to provide services to Medicare beneficiaries if reimbursement is inadequate. As a result, allowing reimbursement cuts to enter into effect could pose significant access problems as physician’s are unable to afford providing services to Medicare beneficiaries in need of medical attention.

While I believe past measures to alleviate this burden on physicians have been helpful, I know from my discussions with health care providers throughout Michigan that more needs to be done. For the long term, Congress must find an alternative to the SGR. The SGR is linked not to the cost of providing health services, but to the performance of the overall economy. The cost of health care has been rising much faster than inflation. Our nation should address the rising costs of health care as part of a larger discussion on health care reform. Reimbursement should more accurately represent the cost of providing services.

In the meantime, I support this legislation, which includes a delay on Medicare reimbursement cuts for physicians’ services and replaces the cut with a 1.1 percent increase for 2009. I am hopeful that the Senate will pass this legislation and that the President will heed the will of Congress and the American people and sign this bill into law before the cuts enter into effect on July 1.

ED NOTE: On Tuesday [6/24], the U.S. House passed legislation that would significantly improve Medicare benefits for 44 million American seniors and people with disabilities.

The bill pays particular attention to recipients in areas with limited access to health care.

Medicare providers in rural areas often lack the resources they need to serve the public. This bill increases payments for sole community and critical access hospitals, increases payments for rural ambulance services and ensures physicians are fairly reimbursed for Medicare services.

Without this legislation, physicians across the country would face a 10.6 percent cut in reimbursements for Medicare services beginning July 1. Alarmingly, the data suggests that over 60 percent of physicians would leave the Medicare program or stop taking new Medicare patients if these cuts are implemented.

Although this bill stops cuts to physician payments, it is not about how much we pay doctors; it is about access to health care for patients. When doctors don’t get reimbursed, they often can’t continue serving Medicare patients.

Jun 26, 2008: This bill failed a cloture motion, preventing consideration of the bill, in the Senate by roll call vote. The totals were 58 Ayes, 40 Nays, 2 Present/Not Voting.

From Vote Tracker

POSTED 6/29/08

STATEMENT ON EXPECTED DELAY OF THE IRAQI PROVINCIAL ELECTIONS 

 Mr. President, in February 2008, the Iraqi Government set October 1, 2008, as the date for provincial elections to occur. These elections are critical to U.S. and Iraqi efforts to bring about reconciliation in the country and, for instance, will give members of the Sunni community, many of whom didn’t participate in the previous round of provincial elections, a chance to vote for fair representation on Iraq’s provincial councils. Unfortunately, the provincial elections law, which is the enabling legislation needed for these elections to take place, remains stalled in the Iraqi Council of Representatives and will likely delay provincial elections by at least several months.

The Administration’s silence on the Iraqi Government’s failure to adopt election laws so that the promised October 1st election can take place is disturbing and is the exact wrong way to send a message to the Iraqi leaders.

Many of us have tried repeatedly to get this Administration to shift responsibility to the Iraqi leaders for their own future, since there is broad consensus that there is no military solution and only a political settlement among the Iraqis can end the conflict. The Administration, however, has repeatedly missed opportunities to shift this burden to the Iraqis and appears willing to miss another opportunity.

President Bush indicated in February that he was confident the Iraqi Government was “going to continue to work to make sure that their stated objective of getting provincial elections done by October 2008 will happen.” After meeting with Iraqi leaders in Baghdad in April, Secretary Rice said “they know the provincial elections need to be held before October 1, as has been the announcement.”

The Administration is well aware that the failure of the Council of Representatives to pass a provincial elections law is likely to cause the previously established October 1st date for Iraqi provincial elections to be postponed. The recent GAO report, titled “Securing, Stabilizing and Rebuilding Iraq” paints a bleak picture. According to the report, it will likely take an additional four to eight months to prepare for elections after a provincial election law is passed. That means that even if this law were passed next week, that October 1st deadline is unlikely to be met.

Ambassador Crocker said on April 10th, “The way forward for a stable Iraq lies as much through successful elections, in my view, over the long term as it does through the necessary application of force against those who resist the state.”

So where’s the pressure on the Iraqi Government to keep their commitment to an October election? Where’s the Administration’s message of disappointment? Iraqi leaders are likely to read into the Administration’s silence on their failure to act as a shrug of our shoulders.

We have made security gains in Iraq, but progress is spotty on most political benchmarks set by the Iraqis for themselves, including provincial elections. The Administration’s silence on this issue needs to end. It needs to make clear to the Iraqi Government that further delay in passing the provincial election law is totally unacceptable.

POSTED 6/22/08 moved 6/29/08

Dear Friends,

In the past seven years, our nation has lost 3.3 million manufacturing jobs. We have higher unemployment, more Americans without health insurance, and a record number of home foreclosures. Median family income is down $1200 and purchasing power is down $4500. Prices are skyrocketing for everything from gas to food.

We need a change - that's why I am committed to helping elect Senator Barack Obama as our next President.

Senator Obama knows that Michigan citizens can't afford four more years of the economic policies that got us here. That's why his economic plan includes measures that will help create jobs in Michigan, including increasing the R&D tax credit, investing in our manufacturing workforce, doubling the Manufacturing Extension Partnership and making sure that American-developed technologies become American-made products that create jobs in America, not overseas.

Yesterday, the excitement throughout Michigan for Senator Obama's economic vision was palpable. From the gathering at Kettering University in Flint to the 20,000 people at Joe Louis Arena in Detroit, people are making it clear they are ready for change.

I hope you'll join me in the months ahead to make sure that, in November, we send a strong message to Washington that after the last seven years, it's time for a change.

Sincerely,

Carl Levin

P.S. Unnecessary tax cuts, endless war and abandonment of our manufacturing base are the legacy of the Bush administration. A victory in November is our best hope to change these misguided policies.

POSTED 6/23/08

Senator Levin ties Gitmo torture to top Bush administration officials

(From MichiganLiberal.Com by: DianeS) 

In a hearing on the Hill, Michigan Senator Carl Levin -- who is also the Democratic head of the Senate Armed Services Committee -- tied US interrogation policies to former Bush Secretary of Defense Donald Rumsfeld, and other top officials in the Bush administration. 

Contrary to the Bush administration's argument that mistreatment at the prisons arose from simply a handful of out-of-control military jailers, or a "few bad apples," Levin said a high-level debate raged in the US defense and intelligence community from mid-2002 over techniques such as waterboarding and sensory deprivation. The senator cited previously secret documents.

In the internal feud, US armed services lawyers questioned if the techniques were legal or useful.

But, Levin said, a Central Intelligence Agency lawyer who met with Guantanamo staff on October 2, 2002 argued that torture "is basically subject to perception."

"If the detainee dies, you're doing it wrong," Jonathan Fredman, then chief counsel to the CIA's Counterterrorism Center, told the meeting, Levin said.

Two months later, after the Guantanamo detention camp senior legal officer said they would "need documentation to protect us" from potential legal charges over alleged torture, Foremer Secretary of Defense Rumsfeld signed a letter authorizing most of the interrogation techniques recommended, Levin said.

Rumsfeld added to the December 2nd, 2002 letter, Levin said, a written comment on one technique that "I stand for eight to 10 hours a day. Why is standing limited to four hours?"

"How on earth did we get to the point where a senior US government lawyer would say that whether or not an interrogation technique is torture is, quote, 'subject to perception,' and that if, quote, 'the detainee dies, you're doing it wrong'?" Levin asked.

Furthermore, documents released by Senator Levin today reveal that the U.S. military hid the location of detainees, and concealed 'harsh treatment' from the Red Cross in order to avoid the scrutiny of the international community. From a McClatchy report: 

“We may need to curb the harsher operations while ICRC is around. It is better not to expose them to any controversial techniques," Lt. Col. Diane Beaver, a military lawyer who's since retired, said during an October 2002 meeting at the Guantanamo Bay prison to discuss employing interrogation techniques that some have equated with torture. Her comments were recorded in minutes of the meeting that were made public Tuesday. At that same meeting, Beaver also appeared to confirm that U.S. officials at another detention facility — Bagram Air Base in Afghanistan — were using sleep deprivation to "break" detainees well before then-Defense Secretary Donald H. Rumsfeld approved that technique. "True, but officially it is not happening," she is quoted as having said.

A third person at the meeting, Jonathan Fredman, the chief counsel for the CIA's Counterterrorism Center, disclosed that detainees were moved routinely to avoid the scrutiny of the ICRC, which keeps tabs on prisoners in conflicts around the world.

The administration overrode or ignored objections from all four military services and from criminal investigators, who warned that the practices would imperil their ability to prosecute the suspects. In one prophetic e-mail on Oct. 28, 2002, Mark Fallon, then the deputy commander of the Pentagon's Criminal Investigation Task Force, wrote a colleague: "This looks like the kind of stuff Congressional hearings are made of. ... Someone needs to be considering how history will look back at this." The objections from the Army, Navy, Air Force and Marines prompted Navy Capt. Jane Dalton, legal adviser to the then-chairman of the Joint Chiefs of Staff, Gen. Richard Myers, to begin a review of the proposed techniques.

Senator Levin is leading a probe of the origins of cruel treatment of detainees in Bush's 'war on terror.' 

The Red Cross stated for the report that they were aware that they didn't always have full access to the detainees, and that it was a 'serious issue.' They said the the 'issues' were addressed, and believe that they now have complete access to all detainees in U.S. custody. 

Other news in 'torture'...the Guantanamo war crimes court is  back in session this week pending legal challenges.

 Also, a human rights organization, Physicians for Human Rights, has released a new report this week with medical exams that allegedly prove detainee abuse, and torture by U.S. personnel in Iraq, Afghanistan, and Guantanomo Bay. 

Until next time,

THERE'S MORE - GO TO FRIENDS OF SENATOR LEVIN

POSTED 6/5/08 MOVED 6/22/08

Dear Friends,

This November, we have a great opportunity to turn the page on seven years of Bush-Cheney leadership and move America forward again. Winning back the White House is the critical first step.

We also have an opportunity to help move Michigan forward by electing two terrific congressional candidates in our own state.

The two Congressional challengers - Gary Peters and Mark Schauer - have qualified for the "Red to Blue" program set up by the Democratic Congressional Campaign Committee (DCCC), the national party's campaign organization to elect Democratic members to the House of Representatives. The Red to Blue program supports top Democratic candidates across the country who are taking on Republican incumbents, providing them with financial, communications, and strategic assistance.

They are on the right track, but they need our help. Click here to contribute now and help give these two talented Michigan Democrats the assistance they need to win this November.

In Michigan's 7th Congressional District, State Senate Democratic Leader Mark Schauer is running against first term Congressman Tim Walberg.   During his career as a public servant, Mark has been a champion for quality education, job training and economic development, and access to affordable health care. Mark Schauer's strong leadership will be a great asset for Michigan in the U.S. House of Representatives.

Please click here to make a donation to Mark Schauer's campaign now and help ensure he has the resources he needs to win in November.

In the 9th Congressional District, Gary Peters is running hard to unseat Joe Knollenberg.  Gary has been a State Senator, Professor, Navy Lieutenant Commander, Lottery Commissioner and financial manager of two major Wall Street firms.  Gary Peters has a long record of fighting for Michigan citizens, and his leadership will also be a great asset as we fight for our state in Washington, DC. 

Please click here to make a donation to Gary Peter's campaign now and help ensure that he has the resources he needs to win in November.

Both campaigns will be hard fought. Mark and Gary are ready to work hard for our state in Washington. I know both of them well.  They are experienced leaders who will focus on creating jobs, fighting for energy independence, and ensuring affordable access to health care. 

We need to make sure Mark and Gary have the resources they need to win in November.  I have already contributed to their campaigns, and I hope that you will do the same.

Thanks for your consideration. 

Sincerely,

Carl Levin

POSTED 6/2/08 MOVED 6/21/08

PRESS RELEASE FROM SENATOR CARL LEVIN
RE: FARM BILL

Boosting Farms, Cracking Down on Speculators

With the summer harvest season right around the corner, and roadside produce stands popping up at country intersections across the state, the end of spring is a mouthwatering time to think about Michigan agriculture.

When, after months of delays, Congress recently passed the Food, Conservation and Energy Act of 2008, also known as the Farm Bill, the season was appropriate. This critical legislation – which was passed over a presidential veto – will offer a boost to the Michigan farmers who sell their produce locally and who send Michigan-grown agriculture across the country. The bill will also crack down on speculators who are driving high energy prices, and offer much-needed support for conservation, biofuels and nutrition programs.

This Farm Bill provides support for producers of specialty crops including apples, asparagus, beans, blueberries and cherries that are so important to Michigan farmers and Michigan’s economy. This support will help ensure that our nation can eat nutritiously with a dependable supply of U.S.-grown fruits and vegetables. The Farm Bill also provides support for traditional crops, like corn, wheat and soybeans, which are also a major part of Michigan agriculture.

One critical reform that I am very pleased with is the inclusion of the Close the Enron Loophole legislation that my Permanent Subcommittee on Investigations (PSI) first began work on years ago. In 2000, a law was enacted that included a little-noticed provision that exempted Enron and others from oversight in some trading markets for energy. Starting in 2003, PSI issued a series of reports that revealed that these unregulated markets allow excessive speculation that has been driving up the price of energy. In 2006, we estimated that as much of $20 of the price of a $70 barrel of crude oil was added due to speculation.

With oil prices topping $130 a barrel, this Farm Bill finally closes the Enron loophole. It will help put a cop back on the beat in all U.S. commodity markets, protecting against price manipulation and excessive speculation that have driven up the prices consumers pay.

High energy prices underscore the need to reduce our nation’s reliance on foreign oil. The Farm Bill provides incentives to encourage the continued development of biofuels, and to encourage increased production of renewable fuels. It also improves upon a number of important conservation programs to protect and improve soil and water quality, prevent erosion and preserve and restore habitats.

All of these important measures contributed to the overwhelming bipartisan majorities that passed the Farm Bill and then overrode President Bush’s veto. While the bill is not perfect, the combination of improved assistance for specialty crops, enhanced conservation spending, investments in nutrition and renewable energy programs, and the inclusion of provisions to close the Enron loophole make this year’s Farm Bill a commendable piece of legislation that will benefit Michigan citizens.

POSTED 6/2/08

Statement of Senator Carl Levin on The Foreclosure Prevention Act of 2008

 The progress this bill represents is overdue. The foreclosure crisis is dire, and there is much still to be done. But this bill offers some immediate help.

Over the past few months, I have hosted a series of roundtable meetings in Michigan communities with leaders from local and state government, as well as organizations who are in the trenches working with families facing foreclosure, to discuss practical ways to help homeowners and protect our economy from further damage. When I have asked for their feedback on this bill, they think it would help address a number of the problems they highlighted.

Across Michigan, communities would like to rehabilitate abandoned and foreclosed properties so that surrounding property values do not continue to fall. But currently there are not funds to meet the growing demand. This bill provides Federal block grants to areas with the highest foreclosure rates and filings to help rehabilitate abandoned or foreclosed properties and prevent further damage to local housing values and neighborhoods. In addition, taxpayers who purchase a home that has been foreclosed upon will be eligible for a tax credit.

This bill also provides funding for much needed pre-foreclosure counseling. I am encouraged by the good work currently being done by many counseling organizations who are trying to help families avoid foreclosure. But across Michigan, foreclosure prevention counselors are overwhelmed, and a lack of funds is tying the hands of local groups trying to help keep families on track.

This bill also helps address the critical need for more affordable loans to help families refinance and stay in their current homes. States are authorized to issue new tax-exempt bonds to help homeowners refinance adjustable rate mortgages. Providing refinancing options for homeowners in potentially solvent situations is an important component in the effort to reverse the current tide of foreclosures.

Ending the foreclosure crisis will require a team effort among Federal, State, and local governments, community and neighborhood organizations, and lenders, brokers, and borrowers. This bill recognizes that fact. It provides an opportunity to help keep struggling families in their homes. It provides an opportunity to help restore our housing markets by keeping declining property values stable. It will protect neighborhoods from a glut of vacant homes. There is much more we need to do, but this bill represents a long overdue start. I am hopeful that an even stronger version will return quickly to the Senate from a House/Senate conference committee so we can get much-needed help to people in Michigan as soon as possible.

POSTED 6/2/08

Levin Cosponsors Comprehensive Credit Card Legislation

WASHINGTON – Sen. Carl Levin, D-Mich., today joined Sen. Chris Dodd, D-Conn., in introducing comprehensive legislation to improve credit card billing, marketing, and disclosure practices. The Credit Card Accountability, Responsibility and Disclosure Act (the C.A.R.D. Act) is aimed at stopping abusive credit card practices that deepen or prolong credit card debt held by consumers.

“With all the economic hardship facing folks today, from falling home prices to rising gasoline and food costs, it is more important than ever for Congress to act now to stop credit card abuses and protect American families from unfair credit card practices,” Senator Levin said. “The Dodd bill is the strongest credit card bill yet in this Congress, and I am very proud to be a cosponsor. It adds important protections to the Levin-McCaskill bill, which was based on investigative hearings into unfair credit card practices conducted by the Permanent Subcommittee on Investigations.”

Dodd is chairman of the Senate Committee on Banking, Housing, and Urban Affairs which has jurisdiction over credit card legislation. Levin is chairman of the Permanent Subcommittee on Investigations and is leading an ongoing Subcommittee investigation into unfair practices in the credit card industry. Levin held two Subcommittee hearings in 2007, and introduced legislation – the Stop Unfair Practices in Credit Cards Act, S. 1395 – to ban the worst of the credit card abuses documented in the hearings. The bill introduced today incorporates most of the provisions of S. 1395.

Some of the key provisions of the Dodd-Levin bill would:

• No Interest on Debt Paid on Time. Prohibit interest charges on any portion of a credit card debt which the card holder paid on time during a grace period.
• Prohibition on Universal Default. Prohibit credit card issuers from increasing interest rates on cardholders in good standing for reasons unrelated to the cardholder’s behavior with respect to that card.
• Apply Interest Rate Increases Only to Future Debt. Require increased interest rates to apply only to future credit card debt, and not to debt incurred prior to the increase.
• No Interest on Fees. Prohibit the charging of interest on credit card transaction fees, such as late fees and over-the-limit fees.
• Restrictions on Over-Limit Fees. Prohibit the charging of repeated over-limit fees for a single instance of exceeding a credit card limit.
• Prompt and Fair Crediting of Card Holder Payments. Require payments to be applied first to the credit card balance with the highest rate of interest, and to minimize finance charges.
• Fixed Credit Limits. Require that card issuers offer consumers the option of operating under a fixed credit limit that cannot be exceeded.
• No Pay-to-Pay Fees. Prohibit charging a fee to allow a credit card holder to make a payment on a credit card debt, whether payment is by mail, telephone, electronic transfer, or otherwise.
• Penalty Rate Repeal if Cardholder is Violation-Free. Require issuers to remove penalty interest rates imposed on a cardholder after 6 months if the cardholder commits no further violations.
• Stop to Billing Games. For example, require billing statements to be sent out 21 days before the due date (instead of 14 days under current law), require acceptance of payments until 5 p.m. of the due date, require bank branches that accept payments to credit them on the same day they are received, and create a presumption that payments mailed 7 days before the due date are on time.
• Enhanced Protection against Unfair and Deceptive Practices. Authorize each federal banking agency to issue regulations barring unfair or deceptive practices by the financial institutions they oversee. Establish standard definitions for prime rate and fixed rate cards.
• Strengthened Oversight. Require annual audits of credit card issuers by oversight agencies to check compliance with consumer protections, and require additional industry data on the imposition of interest rates and fees.
• Expanded Disclosure. For example, require issuers to provide individual consumer account information and to disclose the time period and total interest needed to pay off the debt if only minimum monthly payments are made.
• Protections for Young Consumers.
  1. Require card issuers soliciting persons under the age of 21 to obtain the signature of a parent, guardian, or other individual who will co-sign for the debt; proof the applicant can independently repay the debt; or proof the applicant has completed a certified financial literacy course.
  2. Prohibit credit bureaus from furnishing credit reports for consumers under age 21, unless the consumer initiates the request. Allow consumers at least 18, but not yet 21, to choose to receive card solicitations.

POSTED 6/2/08

Levin Statement on New CFTC Initiatives to Improve Regulation of Energy Markets

WASHIGNTON – Sen. Carl Levin, D-Mich., said the following today regarding new initiatives announced by the Commodity Futures Trading Commission aimed at improving the regulation of energy markets:

“Since 2006, U.S. oil prices have been affected by trading, not just in the United States, but also in London, due to the trading of U.S. oil contracts on the ICE Futures exchange in London. The problem is that U.S. regulators were kept in the dark about those London trades. The CFTC didn’t have good information about who was trading how much U.S. oil when, and whether traders subject to U.S. speculation limits were circumventing them by trading in London. That’s why I and my colleagues have repeatedly introduced legislation to close the London loophole. Today’s agreement between the CFTC and UK authorities will go a long way to doing just that. For the first time since 2006, the CFTC will get daily trading data for all U.S. oil contracts traded in London. The CFTC will also get daily alerts if any trader exceeds the speculation limits that apply to oil contracts traded in New York.

“I applaud the CFTC’s work with UK financial authorities and ICE to strengthen energy market oversight. I have been calling for this reform for the past few years – both in my Subcommittee’s investigative reports and in legislation I introduced in 2006 and again this year. More comprehensive and timely trading data will lead to stronger market oversight to prevent price manipulation and excessive speculation. In the last few weeks the Congress has taken actions I have long advocated to combat high energy prices, including closing the Enron loophole, stopping the filling of the SPR, and now convincing the CFTC to get a better handle on speculative oil trading.”

POSTED 6/2/08

Guns and Children 

In a speech to the Economic Club of Detroit in May 1999, Sen. Carl Levin, D-Mich., committed to speak often on the issue of gun crimes. To date, he has made 274 Senate speeches on gun crimes since 1999; his remarks follow:

Mr. President, often when we talk about combating gun violence, we discuss preventing criminal access to dangerous firearms. However, we must also focus our attention on the unsupervised access to firearms by our children and teenagers. While firearms in the hand of criminals pose a significant threat to society, many of the fatal firearm incidences in our country occur when children and teens discover loaded and unsecured firearms in their own homes. Over the years, suicides and accidental shootings have claimed the lives of thousands of young people. Sadly, many of these tragedies could have been prevented through common sense gun legislation.

The Center for Disease Control and Prevention estimates that 1.69 million children in the United States live in households with unlocked and loaded firearms. Tragically, firearms kill an average of nearly 8 children and teenagers a day. What’s more, the Children’s Defense Fund estimates that at least four times this number are injured in non-fatal shootings.

Many parents believe that simply educating their children about the dangers firearms can pose is enough to keep them safe. Unfortunately, this is simply not the case. A study conducted by the Harvard School of Public Health, involving 201 families who have guns in their homes, found that 39 percent of the parents that stated their children did not know the storage location of their firearms were contradicted by their children. In addition, 22 percent of the parents who believed their children had not handled their guns were contradicted by their children. The study concluded that although many parents had warned their children about gun safety, there was still a significant possibility that they were misinformed about their children’s actions with their guns.

Common sense tells us that when guns are secured, the risk of children injuring or killing themselves or others with a gun is significantly reduced. By passing legislation that would require that all handguns sold by a dealer come with a child safety device, such as a lock, a lock box, or technology built into the gun itself, we could significantly decrease the possibility of a child misusing a firearm. I urge my colleagues to take up and pass such sensible gun safety legislation.

POSTED 4/28/08

Levin Asks Gates to Investigate Allegations that Pentagon Provided Special Treatment to TV Analysts

WASHINGTON --- Sen. Carl Levin, D-Mich., has asked Defense Secretary Robert Gates to investigate claims laid out by the New York Times on April 20 that the Pentagon gave special treatment to retired military personnel who served as TV analysts in support of the administration’s policies.

“While the media clearly have their own shortfalls for paying people to provide ‘independent’ analysis when they have such real and apparent conflicts, that doesn’t excuse the Department’s behavior in giving both special treatment and valuable access to analysts who provide commentary in favor of DoD’s strategy, while not offering similar access to some other analysts and cutting off access to others who didn’t deliver as expected,” Levin wrote in a letter to Gates.

A copy of Levin’s letter to Gates can be viewed here. [PDF]

POSTED 4/12/08 MOVED 4/20/08 

Dear Mike,

I am chairing a hearing with General David Petraeus and U.S. Ambassador to Iraq Ryan Crocker before the Senate Armed Services Committee. I am going to ask them some tough questions about the situation in Iraq, but first, in my opening statement, I shared with them a story recounted to me by a senior U.S. military officer during my recent trip to Iraq.

Just before the latest outbreak of violence, this officer told me that when he asked an Iraqi official, "Why is it that we're using our U.S. dollars to pay your people to clean up your towns instead of you using your funds?", the Iraqi replied, "As long as you are willing to pay for the clean-up, why should we do it?"

That response crystallizes the fundamental problem of our policy in Iraq. It highlights the need to change our current course in order to shift responsibility from our troops and our taxpayers to the Iraqi government, to force that government to take responsibility for their own future, politically, economically and militarily.

I am focused on finding the best hope for a successful outcome in Iraq and, finally, an exit strategy for most of our troops. I thought I would share with you my opening statement in its entirety.

Sincerely,

Carl Levin

Click here to make a secure online contribution of $50, $75, or more.

--------------------------------------------------------------------------------

Opening Statement of Senator Carl Levin, Senate Armed Services Committee Hearing on the Situation in Iraq with Ambassador Crocker and General Petraeus

April 8, 2008

Welcome General Petraeus and Ambassador Crocker. Thank you for joining us today, and thank you for your service to our nation. Please express our deep gratitude to the brave men and women serving in Iraq both in our armed forces and in the civilian agencies of our government.

We look forward to your report and recommendations as to where we go from here. Until recent attacks on the Green Zone, heightened attacks on our forces, and the violent events in Basra and Baghdad, the surge, along with other factors, appeared to have achieved some success in reducing violence in Iraq. This new increase in violence raises questions about the military success of the surge. But, more significantly, the purpose of the surge as announced by President Bush last year - to give the Iraqi leaders breathing room to work out a settlement - has not been achieved. This reality leads many of us to once again challenge President Bush's policies.

During my recent trip to Iraq, just before the latest outbreak of violence, a senior U.S. military officer told me that when he asked an Iraqi official, "Why is it that we're using our U.S. dollars to pay your people to clean up your towns instead of you using your funds?", the Iraqi replied, "As long as you are willing to pay for the clean-up, why should we do it?"

This story crystallizes the fundamental problem of our policy in Iraq. It highlights the need to change our current course in order to shift responsibility from our troops and our taxpayers to the Iraqi government, to force that government to take responsibility for their own future, politically, economically and militarily.

Our current open-ended commitment is an invitation to continuing dependency. An open-ended pause starting in July would be just the next page in a war plan with no exit strategy. As another senior U.S. military officer in Iraq put it two weeks ago, "It is time to take the training wheels off, and time to take our hands off the Iraqis' bicycle seat."

The Bush administration strategy has been built on the assumption that, so long as we continue to provide the Maliki government with plenty of time, military support and financial assistance, they will take responsibility for Iraq's future. But the major political steps have not yet been taken by the Iraqis, including establishing a framework for controlling and sharing oil revenue, adopting an election law so an October 1 provincial election will take place, and considering amendments to the constitution.

Even the few small political steps that have been taken by the Iraqis are in jeopardy because of the incompetence and excessively sectarian leadership of Mr. Maliki. Last week, this incompetence was dramatized in the military operation in Basra. Far from being the "defining moment" President Bush described, it was a haphazardly planned operation, carried out apparently without meaningful consultation with the U.S. military or even key Iraqi leaders, while Maliki made unrealistic claims, promises and threats.

In January of last year, when President Bush announced the surge, he said the Iraqi government planned to take responsibility for security across Iraq by November 2007. The President also pledged to hold the Iraqi government to a number of other political benchmarks which were supposed to be achieved by the end of 2007. But instead of forcefully pressing for political progress, President Bush has failed to hold the Maliki government to their promises, showering them instead with praise that they are "bold" and "strong." The President has ignored the view of his own military leaders who, according to a State Department report less than five months ago, concluded that "the intransigence of Iraq's Shiite-dominated government [is] the key threat facing the U.S. effort in Iraq, rather than al-Qaida terrorists, Sunni insurgents or Iranian-backed militias." Now violence appears to be on the rise, and President Bush would once again take pressure off of Maliki if he announces that reductions of our troops will be halted in July and that the pause is open-ended.

On the economic side, five years after the war began, skyrocketing oil prices have swelled Iraqi oil revenues beyond all expectations. Iraq now has tens of billions of dollars in surplus funds in their banks and in accounts around the world, including about $30 billion in U.S. banks. But Iraqi leaders and bureaucrats aren't spending those funds. The result is that, far from financing "its own reconstruction" as the administration promised five years ago, the Iraqi government has left the U.S. to make most of the capital expenditures needed to provide essential services and improve the quality of life of Iraqi citizens.

American taxpayers are spending vast sums on reconstruction efforts. For example, the U.S. has spent at least $27.6 billion to date on major infrastructure projects, job training, education and training and equipping of the Iraqi Security Forces. On the other hand, according to the Special Inspector General for Iraq Reconstruction, the Iraqi Government budgeted $6.2 billion for its capital budget in 2006 but spent less than a quarter of it. As of August 31, 2007, the Iraqi Government had spent somewhere between 4.4 percent (according to the GAO) and 24 percent (according to the White House) of its $10.1 billion capital budget for 2007. As of last Thursday, the U.S. government is paying the salaries of almost 100,000 Iraqis who are working on reconstruction.

To add insult to injury, in addition to spending tens of billions of U.S. dollars on reconstruction, American taxpayers are also paying three to four dollars a gallon on gas here at home, much of which originates in the Middle East, including Iraq. The Iraqi government seems content to sit by, build up surpluses and let Americans reconstruct their country and foot the bill. But the American people surely aren't content with that, and the Bush administration shouldn't be either.

Militarily, five years after the war began, the Iraqi Army now numbers 160,000 soldiers, over 60% of whom, according to our own statistics, are capable of taking the lead in operations carried out in conjunction with U.S. troops. However, in four key northern provinces where the Iraqis have 50,000 trained soldiers and United States forces number 20,000, we were told on our recent visit that from December 29, 2007 to March 16, 2008, there were 110 combined U.S.-Iraqi operations of company size or greater and the Iraqi Army led in just ten of those operations.

As the fighting in Basra and Baghdad demonstrates, we are being drawn deeper into what General Odierno described last week as an inter-communal conflict. And that conflict, which has nothing to do with Al Qaeda and everything to do with civil war, appears to be growing. There is consensus among the President's supporters and critics alike that there is no military solution to this conflict and that there will be no end to it unless the Iraq political leaders take responsibility for their country's future. An announcement of an open-ended pause in troop reductions starting in July would simply send the wrong message to the Iraqi leaders.

Rather, we need to put continuous and increasing pressure on the Iraqis:

to settle their political differences; to pay for their own reconstruction with their oil windfalls; and to take the lead in conducting military operations. The way to do that is to adopt a reasonable timetable for a change of mission and redeployment of most of our troops. Promptly shifting responsibility to the Iraqis for their own future - politically, militarily, and economically - is the best hope for a successful outcome in Iraq and represents, finally, an exit strategy for most of our troops.

POSTED 4/13/08

Statement of Senator Carl Levin on The Foreclosure Prevention Act of 2008

The progress this bill represents is overdue. The foreclosure crisis is dire, and there is much still to be done. But this bill offers some immediate help.

Over the past few months, I have hosted a series of roundtable meetings in Michigan communities with leaders from local and state government, as well as organizations who are in the trenches working with families facing foreclosure, to discuss practical ways to help homeowners and protect our economy from further damage. When I have asked for their feedback on this bill, they think it would help address a number of the problems they highlighted.

Across Michigan, communities would like to rehabilitate abandoned and foreclosed properties so that surrounding property values do not continue to fall. But currently there are not funds to meet the growing demand. This bill provides Federal block grants to areas with the highest foreclosure rates and filings to help rehabilitate abandoned or foreclosed properties and prevent further damage to local housing values and neighborhoods. In addition, taxpayers who purchase a home that has been foreclosed upon will be eligible for a tax credit.

This bill also provides funding for much needed pre-foreclosure counseling. I am encouraged by the good work currently being done by many counseling organizations who are trying to help families avoid foreclosure. But across Michigan, foreclosure prevention counselors are overwhelmed, and a lack of funds is tying the hands of local groups trying to help keep families on track.

This bill also helps address the critical need for more affordable loans to help families refinance and stay in their current homes. States are authorized to issue new tax-exempt bonds to help homeowners refinance adjustable rate mortgages. Providing refinancing options for homeowners in potentially solvent situations is an important component in the effort to reverse the current tide of foreclosures.

Ending the foreclosure crisis will require a team effort among Federal, State, and local governments, community and neighborhood organizations, and lenders, brokers, and borrowers. This bill recognizes that fact. It provides an opportunity to help keep struggling families in their homes. It provides an opportunity to help restore our housing markets by keeping declining property values stable. It will protect neighborhoods from a glut of vacant homes. There is much more we need to do, but this bill represents a long overdue start. I am hopeful that an even stronger version will return quickly to the Senate from a House/Senate conference committee so we can get much-needed help to people in Michigan as soon as possible.

POSTED 4/13/08

Coleman, Levin Crack Down on Wasteful, Abusive Purchases on Government Credit Cards

GAO finds 41% of purchases made with government credit cards violate rules

Washington DC—Continuing their fight against the waste, fraud, and abuse of the hard-earned American tax dollar, Senator Norm Coleman (R-MN), Ranking Member of the Permanent Subcommittee on Investigations (PSI) and Subcommittee Chairman Carl Levin (D-MI) initiated a Government Accountability Office (GAO) investigation [PDF] to study the extent to which federal employees are misusing government credit cards and debit cards, referred to collectively as “purchase cards.” GAO found that, of the $17.7 billion the federal government spent on purchase cards in Fiscal Year 2006, an estimated 41 percent failed to meet internal controls established by the Standards for Internal Control in the Federal Government, which require purchases to be properly authorized and that someone other than the purchaser receive and sign for the good or service.

“At a time of increased economic pressures, and a feeling that government spending is out of control, the American people should not be expected to tolerate wasteful and abusive spending of their tax dollars,” said Coleman. “The fact that an estimated 41 percent of the $17.7 billion spent using government purchase cards in 2006 was improper or not properly accounted for, demands immediate and aggressive attention. When money that was intended to pay for critical infrastructure, education and homeland security is instead being spent on iPods, and socializing, we must immediately remedy the problem, and restore the public's confidence in the system.”

“Millions of dollars worth of laptops, iPods, and digital cameras are being purchased with government credit cards and disappearing,” said Levin. “Although internal controls over government credit cards have improved, we still have a long way to go to stop the fraudulent use of these cards.”

Specifically, the analysis revealed several types of fraud, waste, and abuse involving government purchase card transactions. Some of the egregious examples involved government employees using government-issued purchase cards to pay for their own entertainment expenses, internet dating services, mortgage payments, and retail purchases. In one instance, four Department of Defense (DOD) cardholders purchased more than $77,000 in clothing and accessories at high-end retailers. At Brooks Brothers, the cardholders paid $2,300 per person for tailor-made suits and accessories when DOD regulations provide a civilian clothing allowance of $860 per person. The report stated that numerous government agencies could not account for a substantial amount of so-called “pilferable” property.

For instance, GAO reviewed a sample of 1,058 accountable items worth $2.7 million that had been purchased with a government purchase card, including digital cameras, iPods, PDAs, and laptop computers, and found that 458 of the 1,058 items worth $1.8 million were missing and presumed stolen. Another issue identified by the GAO study involves identity theft, in which someone other than the purchase cardholder made unauthorized charges to the card. The cardholder can dispute these charges but GAO found that cardholders did not always do so in a timely fashion. Further, when an account has been compromised in this manner, government regulations require that the account should be closed and the cardholder should be issued a new card with a new account number, but government agencies too often failed to take those steps.

“Too many government employees have viewed purchases cards as their personal line of credit. It’s time to cut up their cards and start over,” added Coleman. “The basic rules for authorizing purchases and accounting for goods and services are not that difficult: Use the card for legitimate purchases, not to cover the costs of buying yourself an iPod.”

Coleman and Levin are cosponsors of the Government Credit Card Abuse Prevention Act of 2007, along with Senators Charles Grassley (R-IA), Joseph Lieberman (I-CT), and Susan Collins (R-ME). This bill would require all federal agencies to strengthen their internal controls for government charge card programs, as well as establish penalties for violations. For example, the bill would authorize federal agencies to offset the salaries of government employees who make improper purchases with their government purchase cards. It would also increase oversight by providing that each agency Inspector General periodically conduct risk assessments and audits to identify fraud and improper use of credit cards. The bill will be considered by the Committee on Homeland Security and Governmental Affairs at a markup scheduled for Thursday of this week.

Read the GAO report: GOVERNMENTWIDE PURCHASE CARDS - Actions Needed to Strengthen Internal Controls to Reduce Fraudulent, Improper, and Abusive Purchases [PDF]

POSTED 3/30/08 

Dear Mike,

No one is above the law. It's one of the sacred principles of our democracy.

But George Bush has a different view. He has issued hundreds of "signing statements" indicating what laws he will obey and what laws he can ignore - a privilege found nowhere in the Constitution.

George Bush and his enablers have made it clear that they think they are above the law. This excessive and expansive view of presidential power is an attack on the basic foundation of our democratic system of government, and it is an attack on each and every one of us who believes in our Constitution.

It's not right, and I'm running for reelection to help undo this damaging legacy. In order to succeed, I need your help before the critical March 31 deadline - just 5 days away!

This is the last critical campaign finance milestone before the deadline for opponents to enter this race. A strong showing will demonstrate to any potential challenger that it won't be easy to defeat our campaign in November.

Click here to make an immediate, secure contribution of $50, $75, or more. Together, we can begin to reverse the unfortunate legacy of George Bush's eight years in office.

I've seen the effect of these so-called "signing statements" firsthand.

Earlier this year, I helped write the National Defense Authorization Act and get it passed. Among its provisions, this important piece of legislation forbids the President from building permanent military bases in Iraq. It also establishes an independent commission to investigate the shameful contracting abuses that have occurred in Iraq and Afghanistan on this administration's watch.

These are the kind of common sense measures that I have worked on throughout my career in the Senate. And they were passed by Congress with strong, bipartisan support. But in the era of George Bush's hyperpartisanship, that's not enough.

When the President signed this bill into law, he declared that he could ignore the provisions he didn't like!

I'm running for reelection to help undo the damage George Bush has done to our democracy. Your support for my campaign before the March 31 deadline is one way you can help clean up their mess.

Click here to make an immediate, secure contribution of $50, $75, or more. Together, we can begin to reverse the unfortunate legacy of George Bush's eight years in office.

These legally questionable signing statements are just one of the damaging elements of the Bush legacy that we'll be left to deal with long after his presidency is over.

From Iraq to our sputtering economy to making affordable health care available to all Americans to repairing our standing in the world community, Congress and the next President have their work cut out for them to reverse the course of the last 7 years and move our country forward again.

Your contribution will help my campaign at a crucial time. It will also demonstrate your agreement that the President of the United States must faithfully execute all the laws of this country - not just the ones he happens to agree with!

Thanks for your consideration.

Sincerely,

Carl Levin

Paying for Reconstruction in Iraq

POSTED 3/18/08

Senate Approves Collins-Levin Energy Package

WASHINGTON – Early Friday, the Senate approved a Collins-Levin amendment to the FY09 budget resolution that proposes tax incentives that would help to increase our use of renewable energy and reduce our dependence on oil.

“By providing tax incentives for renewable energy, we not only help the environment and reduce our dependence on oil, but we also invest in the economy and create jobs,” Levin said. “Two of the tax credits involve plug-in hybrids and cellulosic ethanol, both of which could help to significantly reduce oil use and greenhouse gas emissions, but both are technologies where tax incentives are critical to commercial viability.”

The budget resolution includes a reserve fund for clean energy and the environment that establishes a framework for Congress to enact legislation that will reduce our dependence on foreign oil, reduce our greenhouse gas emissions, and protect the environment. The Collins-Levin amendment adds several tax incentives to those that may be included in the legislation under the reserve fund and it specifies adjustments in the tax code that could be used to help pay for the tax credits proposed to be extended or established. The additions help take strides toward increased use of renewable sources of energy and away from our dependence on oil.

Included in the amendment are tax incentives that offer the potential to reduce significantly our dependence on oil and our greenhouse gas emissions. Some of the specific credits proposed in the amendment include:

extension of the current production tax credit for biodiesel fuel and the small-producer biodiesel tax credit, both of which will expire at the end of 2008. Extension of these tax credits were included in the 2007 energy bill but not enacted into law. Many of our small biodiesel producers are already having a hard time now because of the increasing prices of feedstock. Without this tax credit, they will not be able to stay afloat and we will lose these new sources of biodiesel fuels;

a new production tax credit for cellulosic ethanol. Current law provides for an ethanol blenders tax credit for ethanol from any source. Ethanol produced from cellulosic sources, however, offers potential to reduce greenhouse gas emissions by 80 percent or more. Therefore, we propose a new per gallon production tax credit for cellulosic ethanol, up to a limit of 60 million gallons. This provision was also included in the 2007 energy bill but not enacted into law. Again, this is a necessary boost needed by those pushing the technology toward cellulosic ethanol to ensure that they are able to bring the technology to commercialization; and

a new consumer tax credit for plug-in hybrid vehicles, including a tax credit for hybrid conversion kits that can modify current technologies with the latest in battery technology as it is developed. This new tax credit could provide for a base tax credit of $3,000, with up to an additional $2,000 available based upon kilowatt hours of battery power capacity. This tax credit was previously included in the 2007 energy bill but not adopted in the final package. The combination of advanced battery technology and advanced hybrid systems offer tremendous potential for reduction of oil consumption, but tax incentives will be necessary to offset the increased cost to consumers and to achieve widespread acceptance by consumers. These tax credits will accelerate significantly the availability of these new plug-in hybrid vehicles to consumers.

POSTED 3/18/08

Senate Floor Statement of Senator Carl Levin Collins-Levin Energy Independence Amendment – S.A. 4209

I am pleased to join Senator Collins today in offering the Collins-Levin Energy Independence Amendment that sets forth important steps to be taken in the area of energy tax policy. The amendment we are offering will provide some improvements to the work already done by the Budget Committee.

The Budget Resolution before us includes a reserve fund for clean energy and the environment that establishes a framework for Congress to enact legislation that will reduce our dependence on foreign oil, reduce our greenhouse gas emissions, and protect the environment. Tax incentives such as extension of the renewable energy production tax credit and the Clean Renewable Energy Bond (CREB) program will be key components of such legislation. Both will expire at the end of 2008, and both are critical to the development of new renewable energy projects. Without an extension of the renewable production tax credit, many projects will be put on hold because they will be less financially viable. With the tax credit, these projects can go forward, and provide both investment in the economy and creation of new jobs. Similarly, the CREB program provides interest free borrowing by public utilities for qualified projects, by providing a tax credit for the taxpayer holding the bond. Eligible renewable projects are the same as those that qualify for the renewable production tax credit, including wind, solar, biomass, geothermal energy, landfill gas, trash combustion, and qualified hydropower facilities.

The amendment we are offering today adds several important tax incentives to those that may be included in the legislation under this reserve fund and it specifies adjustments in the tax code that could be used to help pay for the tax credits proposed to be extended or established. The additions that we are proposing will help us take strides toward increased use of renewable sources of energy and away from our dependence on oil.

I want to mention three tax incentives that are included in this amendment that offer the potential to reduce significantly both our dependence on oil and our greenhouse gas emissions. We propose two tax incentives that address the production of ethanol from cellulosic sources and the production of biodiesel fuels, and we propose a new tax credit for plug-in hybrid vehicles.

Specifically, we propose extension of the current production tax credit for biodiesel fuel and the small-producer biodiesel tax credit, both of which will expire at the end of 2008. Extension of