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The Hollowing Out of Government

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The West, Texas chemical and fertilizer plant where at least 15 were killed and more than 200 injured a few weeks ago hadn't been fully inspected by the Occupational Safety and Health Administration since 1985. (A partial inspection in 2011 had resulted in $5,250 in fines.)

OSHA and its state partners have a total of 2,200 inspectors charged with ensuring the safety of over more than 8 million workplaces employing 130 million workers. That comes to about one inspector for every 59,000 American workers.

There's no way it can do its job with so few resources, but OSHA has been systematically hollowed out during the years under Republican administrations and congresses that have despised the agency since its inception.

In effect, much of our nation's worker safety laws and rules have been quietly repealed because there aren't enough inspectors to enforce them.

That's been the Republican strategy in general: When they can't directly repeal laws they don't like, they repeal them indirectly by hollowing them out -- denying funds to fully implement them, and reducing funds to enforce them.

Consider taxes. Republicans have been unable to round up enough votes to cut taxes on big corporations and the wealthy as much as they'd like, so what do they do? They're hollowing out the IRS. As they cut its enforcement budget -- presto! -- tax collections decline.

Despite an increasing number of billionaires and multi-millionaires using every tax dodge imaginable -- laundering their money through phantom corporations and tax havens (Remember Mitt's tax returns?) -- the IRS's budget has been cut by 17 percent since 2002, adjusted for inflation.

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To manage the $594.5 million in additional cuts required by the sequester, the agency has announced it will furlough each of its more than 89,000 employees for at least five days this year.

This budget stinginess doesn't save the government money. Quite the opposite. Less IRS enforcement means less revenue. It's been estimated that every dollar invested in the IRS's enforcement, modernization and management system reduces the federal budget deficit by $200, and that furloughing 1,800 IRS "policemen" will cost the Treasury $4.5 billion in lost revenue.

But congressional Republicans aren't interested in more revenue. Their goal is to cut taxes on big corporations and the wealthy.

Representative Charles Boustany, the Louisiana Republican who heads the House subcommittee overseeing the IRS, says the IRS sequester cuts should stay in force. He calls for an overhaul of the tax code instead.

In a similar manner, congressional Republicans and their patrons on Wall Street who opposed the Dodd-Frank financial reform law have been hollowing out the law by making sure agencies charged with implementing it don't have the funds they need to do the job. 

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As a result, much of Dodd-Frank -- including the so-called "Volcker Rule" restrictions on the kind of derivatives trading that got   the Street into trouble in the first place -- is still on the drawing boards.

Perhaps more than any other law, Republicans hate the Affordable Care Act (Obamacare). Yet despite holding more than 33 votes to repeal it, they still haven't succeeded.

So what do they do? Try to hollow it out. Congressional Republicans have repeatedly denied funding requests to implement Obamacare, leaving Health and Human Services (the agency charged with designing the rules under the Act and enforcing them) so shorthanded it has to delay much of it.

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Robert Reich, former U.S. Secretary of Labor and Professor of Public Policy at the University of California at Berkeley, has a new film, "Inequality for All," to be released September 27. He blogs at www.robertreich.org.

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to report corporate crimes, stand up to both the c... by zon moy on Sunday, May 5, 2013 at 1:12:07 PM