Buried within the “fiscal cliff” deal was a massive piece of Corporate Welfare for pharmaceutical giant Amgen. That’s not surprising given that the tax increases in the bill were completely offset by the Corporate Welfare stuffed into it – so a huge waste of time deficit wise. But the Amgen subsidy is causing consternation given both the amount and Amgen’s recent misconduct.
Last December Amgen plead guilty to improper marketing of its anemia drug to cancer patients. In order to boost sales Amgen marketed the drug for uses it was not approved and for higher doses than it was approved – all done to take market share away from its competitor Johnson & Johnson. Awful but not surprising conduct for a corporation.
As part of the guilty plea Amgen agreed to pay $762 million in a civil settlement and criminal fines.
Then Amgen had an idea.
Using their 74 lobbyists and influence accrued from campaign contributions the company pushed for and received a taxpayer subsidy of $500 million, inserted into the “fiscal cliff” deal.
Senators who play a major role in federal health care financing were happy to help Amgen, the world’s largest biotechnology company, evade Medicare cost-cutting controls by delaying price restraints on a class of drugs used by kidney dialysis patients, including Sensipar, a drug made by Amgen. That provision was inserted into the final fiscal bill by Senate aides. Many members of Congress did not know it was in the bill until just hours before it was approved.
Although other companies will benefit financially from that delay, Amgen, which has 74 lobbyists in Washington, was the only company to lobby aggressively for the provision. The delay will cost the Medicare program up to $500 million over a two-year period.
Pay $762 million for breaking the law, get a $500 million subsidy from lawmakers. What a system!
Now Congressman Welch (D-VT) is proposing a bill that would take away Amgen’s subsidy.
Rep. Peter Welch (D-Vt.) today introduced bipartisan legislation to repeal a $500 million giveaway to Amgen that was tucked into the fiscal cliff deal passed by Congress at the end of the year.
“This eleventh-hour, backroom deal confirms the American public’s worst suspicions of how Congress operates,” Welch said. “As the nation’s economy teetered on the edge of a Congressional-created fiscal cliff, lobbyists for a private, for-profit company seized an opportunity to feed at the public trough. Without scrutiny or debate, the American taxpayer was stuck with the $500 million tab. This special interest provision should have stood on its own merits with an up or down vote. It’s no wonder cockroaches and root canals are more popular than Congress.”
Let’s just hope there’s no last minute inserts this time around.





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Another round of applause for Max Baucus. He just can’t seem to give enough money away to PhRMA.
Friggin Max Baucus, his name is synonymous with Congressional greed and hubris.
How does this pass ethical behavior of a Senator or should we just start calling them criminals.
As Jane points out, indirectly, this was a BI-PARTISAN “job”.
It, according to the NY Times article involved Democratic Senator, Max Baucus, and Republican Senator, Orrin Hatch and Republican Senator, Mitch McConnell. As well, according to Representative Peter Welch (D-Vt.), the White House was also involved in the last minute, non-committee “negotiations” which negotiations allowed the insertion of a paragraph that enriched this corporation, Amgen, by $500 million dollars, a company just fined $762 million BY the U.S. government … for “fraud”.
Peter Welch, bless his heart and I mean that very seriously, spoke in that linked-to Bill Moyers interview, about the vital importance of trust … trust among people, trust of a people FOR the institutions of government.
Both Moyers and Welch made very clear that what occurred was NOT a rare, isolated, or new thing, that long evidence of behavior of this very sort has brought the reputation of Congress to historic (and very rational and reasonable) lows to, as Welch very poetically put it, the point where, “It’s no wonder cockroaches and root canals are more popular than Congress.”
Of late, some have been suggesting, despite all this, in the face of all of this, that we must maintain, and share, it is implied, a “cautious optimism” that things will, somehow, on their own, get better, that to do otherwise is to behave as a cynic.
Let us examine that perspective, if we might, for a moment?
A cynic, according to the “Pocket Oxford Dictionary” is: ” … one who sarcastically doubts human sincerity and merit … (is) skeptical of or sneering at goodness, in the habit of exposing human weakness.”
Those who have come to possess such a low opinion of Congress, and of the other three “branches”, generally, or even specifically, of the U.S. government, frankly, do NONE of those things. Indeed, those who find reprehensible the behavior described in this post care very much about sincerity and honest merit, they do not sneer at goodness and, most, likely are tolerant of unintended or unprofitable “weakness”, in others and, one hopes, in themselves … however, what has been revealed here is not “weakness”, it is “crony capitalism” and the intentional and deliberate abuse of power and an assault upon the Rule of law, it is hypocrisy writ large, unrepentant and shameless, it is disdain for justice, for goodness, for merit, for conscience, for principle.
It is completely cynical … it is the embodiment of cynical, it is anonymous cynical evil so banal as to be as automatic as breathing for those who, knowingly and under the cover of darkness and extremity, under a proclaimed situation of “crisis” albeit a manufactured and fallacious “crisis”, itself a VERY cynical manipulation, a deceit, prey upon goodness and trust, upon the good nature and well being of human beings and civilized human society.
In the face of these facts, verifiable and obvious, to claim that those who perceive a pattern of cynical corruption and suggest that it might be that the system itself may,now, after so many decades of abuse, be so corrupt that it must, as sometimes IS necessary in the course of human events, be replaced, be rebuilt, be torn down and demolished … that a better structure, built upon stronger foundations of agreed upon and enforced principle, may be erected … to suggest that those who have arrived at this conclusion, after years, decades of observation and concern are the ones who are cynical, is a most unfortunate and very sad thing.
I hope, most sincerely, that Peter Welch and those like him may effect necessary, critical change, yet the long pursed processes which have led to this current reality are deeply entrenched, and, as Representative Welch said, held to be “legal” … just as Barack Obama once declared that the fraud of the Wall Street Banksters, is not “illegal” …
AT some point, the notion of legality has been so perverted, and deliberately so, that destructive, harmful and deceitful acts, acts which harm human beings and make mock of trust, that very essence of democracy, cannot be allowed to go on, cannot be tolerated nor countenanced, and those who enable such acts, the branches of government and the agencies charged with upholding the law, with prosecuting wrong-doing, with holding the guilty to account, must, themselves, be brought AND held to account … as those individual persons who, using their positions of TRUST, of RESPONSIBILITY, must also, one and all, be brought to reasonable and rational account. Else we not only lose our way, we lose our ability to govern ourselves, to protect ourselves and each other and all of those things we profess to hold sacred, and we lost the ability, if we are fully honest, to even respect ourselves.
DW
Capitalism will always be the best economic system as long as it has Socialism to bail it out. Profits in the bank and to the shareholders and risk goes to the Government and the people. Job creators, BAH!!!
Hey, we’re just lucky they were only fined $762 mill and not a billion!
This is one example of the breathtaking hypocrisy intrinsic in the prosecution, conviction and incarceration of former Alabama governor Don Siegelman. Amgen’s “investment” in our legislature was bribery by any reasonable definition, vastly more pernicious than what Siegelman was accused of doing, or did. Ending this aspect of our system is a necessary beginning to any hope of recovery of a democracy.
Since when are Senators not responsible for the legislation they write?
Since when are Senate aids the ones actually responsible?
This is fraudulant reporting, let’s have the names of the senators responsible for this robbery, and not on page 51 either.
If it’s Max Baucus, Orrin Hatch, Mitch McConnell, and Barak Obama, then that’s who’s responsible, and that’s how it should be reported.
Why are those steel-trap minds, and fearless tongues belonging to Ron Paul and Rand Paul silent on this?
Godfather Movie Reference of the day- All of Corporate America is saying ” In five years, I promise, we will be totally legit”
This might not be terribly OT.
http://www.huffingtonpost.com/william-k-black/justice-department-response-frontline_b_2566390.html
“By their Responses, Ye Shall Know Them” …
Although your posts cannot be “Recommended” in the “my FDL” sense, Dan Wright, I wish to thank you, yet again, for the depth and breadth of your superlative reporting and analysis. You more than uphold the tradition of FDL “News”, doing so with exceptional ability and important critical insight.
It is a delight, a pleasure, and an education to, daily, encounter and read what you place before us.
DW
Just to follow up, the names of the aides should also be made public. There is too much saying that some bad thing happened in congressional law making, but the things seem to happen on their own with nobody specifically responsible.
The fact that the fine outweighed the subsidy has to be viewed as progress in these days of whine and austerity.
X2
One of many.
More corporate wellfare in the bill:
Of course, you’re right, the names of Senate staffers responsible should be published, and they should be effectively prevented from ever working anywhere closer to the Capitol than the nearest Wal-Mart store.
I’ll bet the details of that deal would make for some very interesting reading.
Of course our hopes will never see fruition. This form of govt, a backward form of socialism (from those who have not, to those who have) is becoming more and more solidly entrenched.
But this model can’t continue forever.
Of course it is not the only example, yet is it not, perhaps, the very most egregious, alantx1?
If you think not, then might you suggest otherwise, point out, of those you mention, all of possibly dubious “value”, or not, which of them is, or could be, in your opinion, worse, especially from the last-minute, anonymous insertion, without broader Congressional scrutiny, perspective?
Do you suggest that “e pluribus unum” excuses, explains, or simply “proves” the cynical hypocrisy of the Amgen “escapade”?
Only your #7 comes close, actually exceeding the Amgen “delight’s” generosity, it would seem.
Forgive me, yet sometimes, often in fact, I do find that I wonder what points, specifically, your seek to make with your comments.
This is such an occasion.
Might you enlighten me?
DW
Could it be, BS, that the PTB and the MOTU are unconcerned with that proverbial “long run”, on a number of levels, and seek only to steal as much as they possibly can in what time remains?
It would seem that their imaginations are deficient on an equal number of “levels” … that they “believe” that they, and they alone, shall escape inevitable “consequence”.
Alfred E Neuman, whose famous adage you might recall, would be very proud of them, no doubt?
DW
Is this a GREAT country of WHAT????????
I’ve been using “legislaturds”, but get harassed at some websites. :-)
DSW points out elsewhere that:
http://news.firedoglake.com/2013/01/07/corporate-welfare-in-fiscal-cliff-deal-more-than-new-income-tax-revenue/
As I said, this is just one example of many. All the corporate welfare adds up, whether it’s a hobbyhorse you approve of or one the “other guy” approves of.
I think they snuck that one in on us in 2006. Senate bill 201.3 (Absolution of responsibility bill) ARB. Passes 98-1
Well, there are many billion$$ of dollars handed out as corporate welfare. NOt to mention government contracts that are worth $18 billion but that end us costing us $60 billion. Never ending bilking of the people by the big corporations will be the death of us yet.
There will be a collapse eventually. It is inevitable.
I believe you’re right, and I’ve been describing their behavior as ‘pulling the ladder up behind them’ since 2006 at least.
I think they’re quite aware that the game is crashing, and intend to get all the chips in ‘their’ pile before it does.
Maybe he’s just pointing out that the deal is loaded with corporate pork, nothing more devious than that. Amgen may be the worst, or close to it, but there was a lot of stuff shoveled into the bill on the sly.
If there is precious little difference b/t R’s and D’s there is even less b/t Corporate governance and the Mafia.
That is what I think as well. Most of the PTB and MOTU (or at least the ones getting their way) are suffering from a certifiable mental disease. In our new society we have to come up with a way of preventing their ascension to places of power. Perhaps the MMPI or some new method to screen them out of politics and the boardrooms of the corporatocracy.