Democrats Must Break With Rangel

by Froma Harrop

Company gives $100,000 to congressman's pet cause. Congressman protects company tax loophole worth tens of millions. Bam! Company gives pet cause another $100,000 check.

Sounds like old times in the Republican Congress of former House Majority Leader Tom DeLay. But this is happening in the Democratic Congress of House Speaker Nancy Pelosi. What a way to greet the new dawn of the Obama era.

The congressman is Charles B. Rangel, chairman of the House Ways and Means Committee. The cause is the future Charles B. Rangel School of Public Service at the City University of New York. And the company is Nabors Industries, an oil driller that has pledged a total of $1 million to the school.

There was nothing subtle here. Nabors CEO Eugene Isenberg reportedly met with Rangel the day the Harlem Democrat's committee marked up the bill of interest. Shortly after the tax shelter was secured, the second check cleared. (Cynics will be happy to learn that there's also an Isenberg School of Management at the University of Massachusetts, named in the executive's honor.)

And what useful economic activity did Nabors perform to justify this princely tax break? Opening an office in Bermuda and declaring itself foreign.

The loophole will cost the Treasury $1.1 billion in revenues over a decade. This is money that could have gone toward expanded health coverage, restoring the National Parks or whatever.

http://www.creators.com/opinion/froma-harrop/democrats-must-break-with-rangel.html