#SOTU - The Trust Deficit

Yesterday, the FBI issued a press release concerning “22 business executives and employees were arrested and charged with attempting to win a contract to sell a variety of military and law enforcement products...by bribing overseas officials”. This was followed by a press release concerning Four Men Arrested for Entering Government Property Under False Pretenses for the Purpose of Committing a Felony. Then today, Herbert Worthy, the Mayor of the City of Ecorse, pleaded guilty today to a charge of conspiracy to commit bribery in connection with a federal investigation into corruption in the City of Ecorse.

Reports like these and many others lead to a distrust of corporations and government. Government and Corporations face a growing credibility gap, made worse by the Citizens United ruling last week by the U.S. Supreme Court. Many different ideas are being presented on how to address some of this.

Today, Rep. Rosa DeLauro issued a press release about the Prevent Foreign Influence in our Elections Act

"The Supreme Court's overreaching and irresponsible decision in Citizens United last week threatens the basic functioning of our republic in many ways, including opening the door to election-tampering by foreign corporations through their American subsidiaries. My legislation closes this potential loophole right away, using an eminently fair definition of U.S. subsidiary that even this Court must respect.

"I encourage my colleagues on both sides of the aisle to join this bill and help ensure that foreign special interests cannot take advantage of this Court-created loophole to abuse our election process. And I hope that this will be the first of many election reforms, including voluntary public financing, that we pass in the coming months to undo the damage of this egregious decision."

The bill amends the pre-existing ban on foreign nationals and foreign corporations in 2 USC 441e to include US subsidiaries of these corporations. US subsidiaries are defined as entities with over 50% foreign shareholders.

In excerpts of the State of the Union address that the White House distributed this evening, President Obama addresses these issues:

we have to recognize that we face more than a deficit of dollars right now. We face a deficit of trust – deep and corrosive doubts about how Washington works that have been growing for years. To close that credibility gap we must take action on both ends of Pennsylvania Avenue to end the outsized influence of lobbyists; to do our work openly; and to give our people the government they deserve.

That’s what I came to Washington to do. That’s why – for the first time in history – my Administration posts our White House visitors online. And that’s why we’ve excluded lobbyists from policy-making jobs or seats on federal boards and commissions.

But we cannot stop there. It’s time to require lobbyists to disclose each contact they make on behalf of a client with my Administration or Congress. And it’s time to put strict limits on the contributions that lobbyists give to candidates for federal office. Last week, the Supreme Court reversed a century of law to open the floodgates for special interests – including foreign companies – to spend without limit in our elections. Well I don’t think American elections should be bankrolled by America’s most powerful interests, and worse, by foreign entities. They should be decided by the American people, and that’s why I’m urging Democrats and Republicans to pass a bill that helps to right this wrong.

There is a lot of work necessary to rebuild trust in our Government and in corporations. Rep. DeLauro’s bill and President Obama’s words are just a small part of what needs to be done.

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