WP smears Kerry's integrity because he spoke in committee on taxes on medical devices

karynnj

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Mon Nov-23-09 08:46 AM
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WP smears Kerry's integrity because he spoke in committee on taxes on medical devices

When Sen. Max Baucus (D-Mont.) this summer proposed a $4 billion tax on medical-device firms to help offset the cost of health-care reforms, an unusual mix of lawmakers joined in a chorus of protest.

Sen. John F. Kerry (D-Mass.), a liberal from the Northeast, warned that the tax could undermine companies developing "new technology that saves lives and money."

Rep. F. James Sensenbrenner (R-Wis.), a conservative from the Midwest, cautioned that the tax would "harm our districts' economies, impede innovation and ultimately deny access to lifesaving medical devices."

Because their politics rarely align, the shared opposition underlined something else Kerry and Sensenbrenner have in common: millions of dollars of family wealth invested over the years in the companies that make medical devices.

http://www.washingtonpost.com/wp-dyn/content/article/2009/11/22/AR2009112202217.html

Note that they speak of millions of dollars of "family" wealth. In Kerry's case that is needed as he personally is unlikely to have "millions" of dollars in companies that make medical devices. Teresa Heinz Kerry very likely does as her investments in many big companies are in the millions. I would not be surprised if she had say $1 million in Johnson and Johnson. I doubt that either JK or THK thought of the bill in terms of changing THK's assets.

Kerry has a long, public record of supporting small technology businesses and Massachuchetts is home to many of these companies. Any Massachusetts Senator would have been likely to speak out.

I commented:

This is an unsupported smear of Senator Kerry. In the Senate Finance committee hearing he asked Baucus to consider that that tax would harm small technology businesses, many from Massachusetts, that develop these devices. When Senator Kerry was chair of small business, he and Senator Olympia Snowe wrote legislation to provide incentives to these companies. Why because it is good for the economy and the country. This legislation was praised for what it was when it passed.

I notice you use the words "family wealth" which is curious as most of the assets that are on Kerry's Senate disclosure are those of Teresa Heinz Kerry, which will be passed to the three Heinz sons, not to Kerry. In 2004, the media kept careful watch to insure Senator Kerry couldn't use those assets.

The most obvious reason for Senator Kerry's comment in the Finance Committee was that he still believed, as he did when he created the incentives to help technology companies, that such companies contribute to the economy and to medicine. In addition, as Massachusetts has a heavy share of technology companies, you could say that he was speaking in his state's interest.

In addition, this was something that was brought up in an open committee hearing, not in some cloakroom attempt to get a deal. It is ludicrous to suggest that Senator Kerry was doing this to increase his own net worth, nor did you prove that he has any stake in these companies.

In 2004, Senator Kerry's financial statements were covered here and elsewhere. From memory, Teresa Heinz Kerry had a large proportion of her assets in government bonds, the remainder appeared to be in a variety of major American companies. Kerry's assets are managed by a blind trust. There was nothing said in 2004 (or afterward) that he has large investments in small technology companies.

The fact is that Kerry voted for the bill coming out of the Finance committee and he never suggested that vote was in doubt. He also voted for the bill this Saturday.

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beachmom

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Mon Nov-23-09 09:59 AM
Response to Original message

1. Fantastic comment.

Because there is so much money in politics, reporters have gotten lazier and lazier about it, now just using money to explain a position. As the say in science, correlation does not mean causation. It is difficult to prove causation, so they just put two things out there, and infer that a politician is patently corrupt. I have read about corrupt politicians like Maxine Waters and Charlie Rangel (the evidence is piling up on those two), and simply by showing money given and a vote means nothing without full context. And as you say, in this case, there is little evidence of the money stake as well.

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karynnj

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Mon Nov-23-09 11:15 AM
Response to Reply #1

2. Thanks

Here what is particularly wrong is that Kerry did not vote against the bill with it in or even suggest that he wouldn't. His comments were 100% in line with past views on the issue and it was in his state's interest.

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beachmom

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Mon Nov-23-09 11:16 AM
Response to Original message

3. Here is a good article as rebuttal (just noticed that Think Progress's Wonk Room

Edited on Mon Nov-23-09 11:22 AM by beachmom

has tweeted the WaPo story)

http://www.boston.com/business/healthcare/articles/2009/09/25/plan_to_fund_health_overhaul_could_cost_mass_medical_device_makers_jobs/

Medical gear makers howl at push for tax

Say plan to fund health bill could cost jobs in Mass.

By Robert Weisman

A plan to tax makers of medical devices to help pay for an overhaul of the nation�s health care system is raising alarms in Massachusetts, where device companies say the estimated $400 million they would have to pay could force them to cut jobs and reduce research.

The proposed tax is included in the health care bill being debated and amended by the Senate Finance Committee this week. That bill, expected to be the principal vehicle for the final health care overhaul plan that will go before Congress, could be reported out of committee as early as today.

State industry leaders, including heavyweights such as Boston Scientific Corp., of Natick, and Covidien, of Mansfield, have been lobbying to get the tax deleted from the bill introduced by Senator Max Baucus, Democrat of Montana, who chairs the finance panel. Manufacturers argue it could cripple innovation in a sector that includes 225 companies with a total of 20,000 employees in Massachusetts.

I just replied via Twitter to Wonk Room with this article. Sorry, but 20,000 jobs is a lot, and seems the likely reason Kerry opposed it. I don't think your defense on THK's money going to the Heinz sons will fly, though, and suggest you drop it. She is John Kerry's wife, so presumably he is biased in her affairs going well. But truth be known that these are jobs in MA we are talking about. That has to be Sen. Kerry's #1 priority right now. He served his constituents well here. Too bad people will read the WaPo article and think the opposite. The WaPo should have at least aired a variety of theories instead of only the money one. I really think that short a smoking gun journalists should not do this trick of showing the money but not giving any other possible reason of why a Senator or Congressman would have a certain position.

I do agree with them in the article, though, that this kind of information should come out faster and be on line immediately. This is the price one pays for running for office.

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karynnj

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Mon Nov-23-09 11:44 AM
Response to Reply #3

4. Nice catch

I think the real thing with THK's investments is that even if she had millions in these companies, which is not proven there, the slight drop in their value would be insignificant to her total wealth. There is likely no bill that affects companies that does not impact THK's holdings. But, Kerry spoke often of raising the estate tax and raising the income tax rate on the top 1%. Either of these have far more impact on THK's (and his own) income taxes.

I do agree with the basic content of the article. The problem is that their example ignored that he then voted against his interests if you assume he had one. He explicitly spoke of exactly what that article spoke of when he brought the issue up in the open meeting. That quote was, I think from the hearing.

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Luftmensch067

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Mon Nov-23-09 12:13 PM
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5. I agree -- great comment!

Thanks for your usual research and the depth of thought and nuance in your arguments!

Aside from concern for MA jobs, this is a very personal issue for JK, in my opinion. I remembered this article and video from 2008:
http://www.metrowestdailynews.com/multimedia/x1795263911/Helping-hands-Holliston-company-receives-funding-to-develop-artificial-limbs

Liberating Technologies is working with Foster-Miller, a Waltham defense contractor, and Innersea Technologies of Bedford to perfect the technology and make a better prosthetic leg, including an artificial knee with microprocessors.

McGovern and Kerry recalled visiting returning soldiers at Walter Reed Medical Center.

"We've seen these young soldiers coming back with missing arms, missing legs, and wondering if there's a future for them," McGovern said. "This technology provides a future and a sense of normalcy."

More advanced medicine on the battlefield is helping more soldiers survive major injuries, Kerry said.

"The challenge that comes out of that is while we save lives, we have many more people who have come back with basically either amputations or traumatic brain injuries or eye injury," he said.

Kerry recalled spending time with veterans learning to use artificial limbs for the first time.

"You can feel the frustration," he said. "But you can also feel the excitement."

Both Kerry and McGovern said if the U.S. can spend $12 billion a month in Iraq, it should be able to find funding for research that helps returning veterans. Kerry said he is frustrated because these types of projects could move faster if better funded and they can generate jobs.

'There is so much more that we can do," Kerry said. "This is just the beginning."

Worth watching the video for much more complete remarks from JK on why this technology is essential.

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karynnj

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Mon Nov-23-09 01:11 PM
Response to Reply #5

6. That is a great video

That company is doing incredible work. I assume that many of the devices in question are not that high tech. The bigger question is why a special tax on companies producing anything used by the doctors? (the only logic I can think of is that they may feel that demand for the devices will increase with everyone insured, but for something like this that wouldn't be the case. It likely was Baucus looking for dollars anywhere. This hits both MA and many small businesses - so it is no surprise Kerry objected.)

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