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Sen. Fritz Hollings

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Occupy Needs Lobbyist

Posted: 12/02/11 12:57 PM ET

Fifty years ago demonstrations and sit-ins worked because everyone knew they were for civil rights. Even if Occupy could agree on one purpose, Occupy wouldn't work because Congress no longer responds to the needs of the people. It only responds to the needs of the lobbyists. The people have lost control of their government.

When I ran for the Senate in 1966, I had one headquarters with no paid staff -- all
volunteers; no polling, no consultants, no yard signs, etc. -- just TV and newspaper ads. I raised and spent about $467 thousand. To be elected the seventh time to the United States Senate in 1998, I had five headquarters, paid staff, pollsters, and had to raise $8.5 million. Eight and a half million dollars factors out to $30,000 a week, each week, every week, for six years. Today, a contested race in South Carolina for the U. S. Senate would take about $12 to $15 million. In 1966, the Democratic Senatorial Campaign Committee, the National Democratic Party, and lobbyists were not interested in the seat. Today, Senate committees, national committees like Americans for Tax Reform, lobbyists, are all interested in the seat. The national groups and lobbyists will want to take over your campaign -- send in a campaign manager, consultants, pollsters and TV coaches. The United States Senate is organized now for the party -- not for the country.

Having served ten years in the State Legislature, four years as governor, and thirty-eight years in the United States Senate, I know how politicians and Congress "wheel and deal." When first in the Senate, six Democrats and six Republicans took turns for supper each Wednesday evening. The wife of the designated senator would prepare a light meal, with plenty of drinks, coats off, and we had a big time kidding each other. It made for fast friendships. When the Anchorage Airport was dedicated to Republican Senator Ted Stevens, Danny Inouye and I were the two speakers. If Ted really needed a vote and it didn't cost South Carolina, Ted had my vote. No more. No Senators or Congressmen "wheeling and dealing." The lobbyists are in charge.

People can't understand the partisanship today. It's easily understood. Senators are raising money not only for themselves all the time but against senators of the other party. I'll never forget a staffer asking me if I had heard about the fundraiser for my opponent. He said: "All of your Commerce Committee Republicans were there except Ted Stevens." In World War II, I learned if you looked out for your men, they would look out for you. I looked out for all of the members of my Committee. When Republican Senator Sununu came later and missed a vote -- even though we Democrats had prevailed -- as Chairman of the Committee I moved to reconsider, and on reconsideration we Democrats lost with Sununu voting. The senators understood. But when I heard that all the Republicans except Ted were at my opponent's fundraiser and wanted to 'get rid of me," I wanted to "get rid of them." No more friendships; no more "wheeling and dealing."

The lobbyists study the senators like we trial lawyers study jurors. Lobbyists know everything about a senator -- his religion; where he gets his money; where his children are in school; and any special interests that could influence the senator. Instead of senators from both parties partying together every Wednesday night, lobbyists on K Street party together every night. The lobbyists do the "wheeling and dealing." The lobbyists know who can get your vote.

The senator is interested in one thing - money for re-election. The best morning show on TV is Joe Scarborough's Morning Joe. Scarborough is the best, but the most ridiculous statement he ever made was on the morning of November 22nd when he said "Grover Norquist has absolutely no power in Washington." Grover Norquist has the money power. He not only has the money to elect, but the money to un-elect. Norquist brags regularly how President George H. W. Bush was defeated in 1992 because he broke his pledge: "Read my lips. No new taxes." Today, Norquist controls the U. S. House of Representatives -- not John Boehner.

Senators are raising contributions constantly. When first in the Senate, we had a junior senator read Washington's Farewell Address at 12:00 noon on Washington's Birthday and had votes later that afternoon. Today, Washington's Birthday has been merged with Lincoln's Birthday for a 10-day break to go to California and New York for fundraising. There are breaks every month for fundraisers, with the month of August off for fundraising. You're stationed with all the lobbyists in Washington, and there are breakfast, lunch and dinner fundraisers all the time. If you're not up for re-election, you're raising money for the other Senators. They will raise money for you when you're up. The cancer of money has spread, and the lobbyists have taken control. Lyndon Johnson couldn't lead the Senate today. Senators are listening to the lobbyists.

Congress can regain control by passing a Constitutional amendment: "The Congress is authorized to regulate or control spending in Federal elections." That is exactly what we did in 1973 by a bi-partisan vote. We limited spending to so-much per registered voter in each State. But the Supreme Court reversed the law by equating money with speech. Madison never thought his First Amendment right of free speech would be limited by money. The Court has even given a fictional entity - a corporation - political speech. Now, the 1012 election will be bought. We've tried every solution for thirty-five years, but the Court finds against it. Only a Joint Resolution to amend the Constitution would give the Congress the power to limit spending in campaigns. Three-fourths of the States are ready to approve. It will take time, but no other solution will suffice.

There is an immediate solution to our need to pay down the debt and create jobs. Jobs can be created with Federal aid, but Federal aid can't build a strong economy. It
takes private investment. To get Corporate America investing in the United States rather than China, Congress must take the tax benefit to off-shore jobs and give it to Corporate America to on-shore jobs -- eliminate the corporate income tax and replace it with a 6% value added tax. Last year the corporate tax produced revenues of $194.1 billion -- a 6% VAT for 2010 would have produced $700 billion. Exemptions for the poor leaves billions to pay down the debt. Now $1 trillion in off-shore profits can be repatriated tax-free for Corporate America to invest and create millions of jobs. Don't tell me the VAT is too complicated. 141 countries use the VAT to compete in globalization. Germany uses its 19% VAT to create jobs all over the United States. A VAT has no loopholes -- instant tax reform! The tax lawyers and tax lobbyists will howl because it eliminates them. This tax cut provides billions to pay down the debt, creates millions of jobs, and the people regain control of their Congress.

We must enforce our trade laws not only to protect Corporate America's investment and protect the economy, but to protect the country. Former Chairman of the Joint Chiefs of Staff, Admiral William Crowe, warned us in Congress in 1991 that we were depending too much on foreign favor for our defense needs. We have off-shored our defense industry. If President Obama enforced the Defense Production Act of 1950, it would create millions of jobs. I have been for a VAT and enforcement of our trade laws for years, but I don't have a lobbyist. If I had Grover Norquist, the VAT tax cut would pass unanimously. Without a lobbyist, I'm nothing, you're nothing, Occupy is nothing.

 
 
 
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iridium53
Semper Fi
12:46 PM on 12/11/2011
Senator, I concur.

But, just how sick and corrupt is a US Congress when 99% of the electorate needs lobbyists?

The 535 members of Congress are, perhaps, the most venal, lazy, crazy, corrupt, coin-operated, corporatist kleptocrats ever assembled in one group.

Despicable lying liars.
12:56 PM on 12/04/2011
Being so ingrained with this practice, it has blurred your view as to how damaging corporate lobbying has become to the process of genuine policy-making as it relates to the American public. I do not judge the fact you, Senator, have become so acclimated to this 'buddy system' you describe, but what you haven't any vision for is the fact that this approach has corrupted the voting process, as candidates who are rolled-out are awash with corporate funding alongside corporate interest: it is the only way you can extend your political life.

It has NOTHING to do with the will of the people. Your justification of this system proves the mortal psychopathy associated with a system so corrupt in this manner. To be honest, that makes you part of the problem.
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HUFFPOST SUPER USER
Jim Welke
11:36 AM on 12/04/2011
Right on, Senator. Still, you and I may be nothing, but Occupy is something. It will be heard and it will persuade despite the best effort of venal lobbyists, and their bought pols. When ten thousand people walk down the street together -- peacefully -- they forge a bond and accelerate the initiative to be heard and accommodated. And they will be accommodated. We will have our nation back if we speak and work collectively. Thanks for the good words, Senator.
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AskandThink
OWS! Because WAR is HELL!
09:33 AM on 12/04/2011
Dear Senator Hollings,

Thank you for sharing your courageously clear experienced observations.

“….because Congress no longer responds to the needs of the people. It only responds to the needs of the lobbyists. The people have lost control of their government.”

“The cancer of money has spread, and the lobbyists have taken control.”

As a passionate believer in our freedoms your words have chilled me to the bone and saddened me. Yet yours is voice of seasoned reality. And so I now find I am as resolved as the patriots of long ago. Give me liberty or give me death! Nowhere in those founding values was the cancer of money ever a basis for all I hold dear.

OWS has brought light on a multitude of issues but this ONE issue, government control, underpins all other endeavors. It is a cancer that spreads and permeates throughout each and every other issue. Without a government FOR the people no other peaceful resolution to any other issue exists on this globe.

It is my deepest hope and strongest suggestion the issue of public funding and control of all campaigns becomes the unifying primary FIRST message of the OWS movement with the full understanding that only when THAT governmental control is again within the hands of the people to whom it properly belongs then other important and vital issues CAN be addressed.

It is time for chemotherapy radical if required of this cancer FIRST!

Thank you Sir for your services.
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humanbeing-rick
Born in the USA 1947
09:11 AM on 12/04/2011
"Congress no longer responds to the needs of the people. It only responds to the needs of the lobbyists. The people have lost control of their government." - From a retired Senator, from an insider, from a former era of greatness.
This sounds to me like justification to revolt against an unresponsive and dysfunctional government.
In fact it is our constitutional duty to protect our country, our people, and our own families.
I refuse the honor the legitimacy of the current plutocracy called the USA.
I want the old USA back, the one I was born in and loved.
03:35 AM on 12/04/2011
Senator Hollings, you imply that OCCUPY has not well expressed what they stand for, but I say you have expressed it for them very well. OCCUPY is watering seeds planted by men like you. They are dialoguing to figure out what is wrong with America, what we can do to take back the country, and asking us all to join the conversation. I'm guess you're happy that others are joining you, who have long been a voice in the wilderness.

I believe OCCUPY will work. It will work because there are people who care enough about ALL of us to practice civil disobedience and take the consequences just to get our attention, begging us to join the fight to take back the democracy from those who have stolen it from us. In addition to the pepper spray and batons and tear gas, they face a winter ahead that could be far more deadly than the winter at Valley Forge. They have declared a war of peaceful resistance, but the toll could be high on their side. I pray we will all join together to make sure they have the best possible experience and not let their efforts and sacrifice be in vain.
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ProgressiveRG
Govt is us collectively caring for each other
10:20 PM on 12/02/2011
Although the former Senator makes some good points, he really doesn't get what OWS is about. He's probably too old to get away from the main stream media propaganda to where the real information exists (if you know how to sort through it). Part of what OWS is about is getting the lobbyists out of our government, not contributing further to the corruption they bring. Our government must be about the voters, not about the money. It really all comes down to getting the money out of our politics. Not an easy thing to do, but we must keep trying.
08:34 PM on 12/02/2011
Senator, I take exception to your very first paragraph, where you make the snide comment that Occupy cannot agree on a common purpose. You have bought into, and are perpetuating the media myth that there is no common purpose to the Occupy movement, despite all evidence to the contrary. Let me give you just one sentence:
#ows is fighting back against the corrosive power of major banks and multinational corporations over the democratic process, and the role of Wall Street in creating an economic collapse that has caused the greatest recession in generations.
http://occupywallst.org/about/
07:50 PM on 12/02/2011
Former Sen. Hollings spells out exactly how to fix the corrupt tax code & how to get the lobbyists out of elective offices.
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fenderbender1
The world as I see it
06:47 PM on 12/02/2011
Have'nt we had enough lobbyists? Is that not the problem? Suggesting that the OWS movement join in the cluster bang of lobbying is like asking a christian to become an athiest! What a silly and thoughtless thing to say Mr. Hollings! The movement is making folks like you come up with a lot of silliness, so it must be working just fine. We don't need no stinkin' lobbyist!!
01:54 PM on 12/02/2011
The Occupy movement is starting to adopt an anti-corruption platform that will garner much more respect. An Occupy member's page http://owwc.gu.ma , supporting a business owner who lost millions of dollars to a corrupt officials seems to illustrate this.
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GaiasChild
loves oregon & a green portfolio . . .
01:30 PM on 12/02/2011
occupy is already working because here you are saying it never will . . . what michael moore has said is that occupy is the birth phase of something new and we cannot now know where it is going . . . but oh, lo and behold, i just heard tom coburn say it is time for the wealthy to chip in . . . really? tom coburn? occupy is already working.
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01:28 PM on 12/02/2011
http://www.news.ku.edu/2009/april/9/taxlobbying.shtml
KU News - Tax lobbying provides 22,000 percent return to firms, KU researchers find

"LAWRENCE — Three professors at the University of Kansas have found that a one-time tax break allowed several multinational corporations to receive a 22,000 percent return on lobbying expenditures.

The study was conducted by Raquel Meyer Alexander, assistant professor of accounting; Stephen Mazza, associate dean of the School of Law; and Susan Scholz, associate professor of accounting and Harper Faculty Fellow. Mazza recently presented their findings at the Critical Tax Theory Conference, sponsored by the Indiana University Maurer School of Law in Bloomington.

A recent law change provided a tax break to the corporations by lowering their tax rate 85 percent on certain worldwide income. The professors examined the extensive lobbying around the law change and found that for each dollar spent on lobbying, a corporation received $220 in U.S. income tax savings.

The American Jobs Creation Act, among other provisions, allowed U.S. multinational corporations a one-time opportunity to bring home foreign earnings at an extremely low tax rate. In effect, it lowered the corporate income tax rate from 35 percent to a maximum of 5.25 percent on repatriated amounts. In response, 843 firms repatriated more than $312 billion at this reduced tax rate. Using financial disclosures in the annual reports of multinational corporations, the researchers examined 476 firms that repatriated more than $298 billion..."