Iraq death toll

Inauguration History2009

Mr. President, it's cold outside

It's cold, maybe even freezing. Sometimes it snows. So why do we have to have a huge outdoor event to inaugurate a new president on January 20? Our first president, George Washington, was smart enough to get himself inaugurated on a more balmy April 30, 1789. What went wrong?

In short, the Constiution did it. Inaugurations used to be held in March to give electors four months to cast their ballots. But the Twentieth Amendment to the Constitution changed the date to Jan. 20, and Franklin D. Roosevelt's second swearing-in ceremony in 1937 was the first held on the new date. FindLaw says a report from the Senate Committee on the Judiciary offered some reasons for the change:

"[W]hen our Constitution was adopted there was some reason for such a long intervention of time between the election and the actual commencement of work by the new Congress.... Under present conditions [of communication and transportation] the result of elections is known all over the country within a few hours after the polls close, and the Capital City is within a few days' travel of the remotest portions of the country....

"Another effect of the amendment would be to abolish the so-called short session of Congress.... Every other year, under our Constitution, the terms of Members of the House and one-third of the Members of the Senate expire on the 4th day of March.... Experience has shown that this brings about a very undesirable legislative condition."

In other words, that's an awfully long lame-duck session, and we now have airplanes and 24-hour news and the Internet — in 2008, we knew Obama would be the next president by 11pm ET. As the 2000 election reminded us, we don't always know who's going to president by the end of election night. And in the days of yore, presidents had to physically move to the nation's capital without the help of FedEx, super highways and United hubs.

Getting our president to work on time — that seems a worthwhile amendment. And not to worry: President-elect Obama says a chilly weather report won't deter him from the traditional outdoor ceremony. So if you're headed to D.C. to catch the big show for yourself, you might want to take some advice from Karin Tanabe at the Huffington Post, who has clearly been debating "what to wear?" for quite some time:

"So what does one wear to be sandwiched between total strangers for hours while craning your neck to see a Jumbotron in sub-zero weather? Clothing you never want to see again. Don't mind if a reveler accidentally flambés your parka? Then by all means wear it. And then throw another one on top for good measure. Spent your entire month's salary on stilettos so fabulous you had them sewn to your feet? It's time to cut them off and wear the sensible shoes favored by nuns and your Aunt Mildred."

Even if you're cold and not-so-comfortable, it's always a special moment watching a new leader say these famous words:

"I do solemnly swear that I will faithfully execute the office of the President of the United States, and will to the best of my ability, preserve, protect, and defend the Constitution of the United States."
01/19/2009

Bailout…don’t you feel good?

Report: Over 8 in 10 corporations have tax havens

WASHINGTON – Eighty-three of the nation's 100 largest corporations, including Citigroup, Bank of America and News Corp., had subsidiaries in offshore tax havens in 2007, and some of the companies received federal bailout funding, a government watchdog said Friday.

The Government Accountability Office released a report that said Bank of America Inc., Citigroup Inc. and Morgan Stanley all had more than 100 units in countries that maintain low or no taxes. The three financial institutions were included in the $700 billion financial bailout approved by Congress.

Insurance giant American International Group Inc., which has received about $150 billion in bailout money, had 18 subsidiaries. JPMorgan Chase & Co. had 50 units and Wells Fargo & Co. had 18; both financial institutions received government bailout money.

Sens. Carl Levin, D-Mich., and Byron Dorgan, D-N.D., who requested the report, have pushed for tougher laws to fight offshore tax havens around the globe. Levin, who leads the Senate Permanent Subcommittee on Investigations, has estimated abusive tax havens and offshore accounts cost the U.S. government at least $100 billion a year in lost taxes.

"I think we should take action to shut down these tax dodgers and we will be introducing legislation to do just that," Dorgan said.

General Motors Corp., which received $13.4 billion from the federal rescue package, had 11 offshore subsidiaries while GM's financing arm, GMAC LLC, had two offshore units. GMAC, whose majority owner is private equity firm Cerberus Capital Management LP, received $5 billion from the Treasury Department in late December.

Citigroup said in a statement that it has more than 4,000 subsidiaries around the globe "which enables us to serve hundreds of millions of individuals and institutions in more than 100 countries." A News Corp. spokeswoman declined comment. Messages were left with several of the companies identified in the report.

Separately, the GAO said 63 of the 100 largest federal contractors maintain subsidiaries in 50 tax havens.

Levin noted that many competitors use the tax havens to varying degrees. PepsiCo Inc. has 70 subsidiaries while the Coca-Cola Co. has eight units. Caterpillar Inc. had 49 while Deere & Co. had three.

"We need to put an end to the use of offshore secrecy jurisdictions as tax havens," Levin said.

The GAO said the subsidiaries could be established in the countries "for a variety of nontax business reasons" and said having a business unit in one of the countries "does not signify that a corporation or federal contractor established that subsidiary for the purpose of reducing its tax burden."

Citigroup had 427 units in 23 countries, including 91 subsidiaries in Luxembourg and 90 in the Cayman Islands. Morgan Stanley had 273 units, News Corp. had 152 and Bank of America had 115. Procter & Gamble Co. had 83 subsidiaries and Pfizer Inc. had 80 in the jurisdictions.

Several major corporations have announced plans to leave Bermuda, a leading offshore business center, amid the global financial crisis and fears of tighter tax rules. Tyco Electronics Ltd., which makes electronic components, and Foster Wheeler Ltd., an engineering and construction company, are reincorporating in Switzerland — which has a tax treaty with the U.S. — for tax and other reasons. Covidien Ltd., a health care products company, is heading to Ireland.

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