Date: Tue, 6 Feb 2001 07:23:28 -0600 From: reason@free-market.net ("Jeff Taylor") Subject: Reason-Express: REx6, v4 To: ReasonExpress@free-market.net (Reason Express List Member)
Welcome to Reason Express, the weekly e-newsletter from Reason magazine. Reason Express is written by Washington-based journalist Jeff A. Taylor and draws on the ideas and resources of the Reason editorial staff. For more information on Reason, visit our Web site at www.reason.com. Send your comments about Reason Express to Jeff A. Taylor (jtaylor@reason.com) and Reason Editor-in-Chief Nick Gillespie (gillespie@reason.com).
REASON Express February 6, 2001 Vol. 4 No. 6
1) The Clintons' Gift That Keeps on Giving 2) Executive Action, Amateur Explanation 3) Big Guns Discover Voice-Over Internet 4) Congress Wants to Clean Your Hard Drive 5) Quick Hits
- - Gift Tax - -
When an experienced pair of grifters like the Clintons offer to pay for something chances are there is catch. And so it is with $190,000 worth of loot they were suddenly willing to go halfsies on. Turns out a big part of haul was never given to the Clintons.
Some couches and other furnishings were given, donors now say, to the National Park Service in 1993 as part of the permanent White House collection. The gifts were part of a $396,000 redecoration of the executive mansion and not meant for the Clintons personally.
By taking the stuff with them the Clintons have converted government property to personal use. And that is the polite way of saying it.
The whole area of converting something into something else isn't some esoteric issue. It is a basic component of tax law that everyday trips up poor unconnected schlubs, or even semi-connect ones like NBA referees. A whole posse of the whistle-blowers were hauled into court for converting first-class plane tickets given to them by the NBA into coach class tix and some unreported cash.
But the Clintons have long thumbed their noses at such strictures. Central to the entire Whitewater episode--indeed the Clintons' cozy relationship with a host of Arkansas bankers in the '80s--was the tax consequences of their actions. It is what had poor Vince Foster pulling his hair out as he went over their tax returns. Any payments made on behalf of the Clintons by their Whitewater partner Jim McDougal could be construed as loan forgiveness, a tax able event as far as IRS gnomes are concerned.
On the face of it, it looks like the Clintons owe tax on about $30,000 worth of White House stuff they converted to their own use. If Uncle Sam ever wants to see a penny of that, better just start garnishing Hillary's paycheck.
http://www.washingtonpost.com/wp-dyn/articles/A26094-2001Feb4.html
- - Pardon Me - -
President Clinton's pardon of fugitive financier Marc Rich keeps getting more interesting too. It is well known that Rich's lawyer had been Clinton's White House counsel a few years earlier.
Perhaps less well-known is the fact that attorney Jack Quinn wrote the language of the executive order supposedly banning high Clinton administration officials from lobbying the government for five years after they leave office.
Executive Order 12834 of Jan. 20, 1993, the "Ethics Commitments by Executive Branch Employees" does include an exception for "communicating or appearing with regard to a judicial proceeding or a criminal or civil law enforcement inquiry, investigation or proceeding." That is what Quinn says he was doing in his work for Rich.
But during all his high-powered lawyering, Quinn must've misplaced his copy of the Constitution. The presidential pardon is fundamentally an executive, not a judicial, activity.
Alexander Hamilton was plain enough in arguing for the executive pardoning power by observing "the sense of responsibility is always strongest in proportion as it is undivided." At least Hamilton didn't live to see Bill Clinton.
The other big difference between an executive act and one in courtroom is that the latter occurs in the light of day, not by the stroke of a pen in the dead of night.
Quinn could've taken the route of public advocate in a courtroom for his client. Instead he opted to trade on access and connections. It worked, and of that fact at least, he shouldn't be ashamed.
http://www.washingtonpost.com/wp-dyn/articles/A26480-2001Feb4.html
- - Packet Picking - -
It has taken awhile, but the engine of the demise of current phone system is revving up. Both AT&T and WorldCom have started voice-over-Internet services, bundling them with other data services with the intention of selling the package to businesses.
Business customers are the first place one would expect voice-over-IP (VoIP) services to show up, but they shouldn't be the last. As a rule, the Net-based packet-switched system is much more efficient than the old circuit-switched system.
However, the entire U.S. regulatory and pricing system is built around a circuit-switched model. Length of call, distance traveled, and such are circuit-switched concepts. So too are the access fees long distance providers pay to local networks, fees which have had the effect of artificially raising the price of long distance service while keeping local service cheaper.
What happens when long distance providers by-pass the local systems and route voice traffic thru the Internet will be interesting. AT&T predicts it will still take years for even the majority of new installing to use the IP model. From there is matter of achieving critical mass that makes VoIP the standard rather than the exception.
Regulators and legislators in Washington need to embrace the notion that the days of current subsidy and fee corrupted telecom system is not long for the Earth and work to ease its passage into history.
http://www.zdnet.com/intweek/stories/news/0,4164,2681792,00.html
James K. Glassman reflects on the Telecom Act five years on at http://reason.com/tcs/020501.html
- - Cookie Monster - -
Sen. John Edwards (D-N.C.) is the first behind a bill to make the federal government the default manager of computer cookie bins. His legislation would require each Web site to get permission from surfers before installing a cookie or any other click-tracking identifier on a computer.
Thing is, a host of free and nearly-free pieces of software do what Edwards says only the feds can do. And not just bleeding edge, techie only software, but mainstream third and fourth generation stuff that most computer users can figure out in minutes.
Further, the Spyware Control and Privacy Protection Act requires businesses that gather data to let users know what information has been assembled and provide a way to correct errors. That'll be helpful for all the folks worried if their IP address was incorrectly logged or whether they went from amihot.com to monster.com or vice versa while at work.
Better still, the drive to comply with federal standards for cookie handling and reporting could just make it impossible for alternative browsers like Opera to function on mainstream sites. If making things only work with Internet Explorer satisfy the feds, why do more?
Of course the real problem with such legislation--indeed with much privacy hand wringing--is the notion that something called privacy exists in cyberspace, or in real life. Clearly, in the real world no one demands utter anonymity. That check-out person at the grocery knows why that Kaopectate is in your buggy. Sometimes it is just too much trouble to hide everything about yourself.
Still, the Net can meet the needs of hypersensitive. Secret remailers, encryption, and anonymous surfing are available for those who feel they need it. New government rules won't create any more privacy, just confusion.
http://www.infoworld.com/articles/hn/xml/01/01/31/010131hnedwards.xml?p=br&s=4 http://www.zdnet.com/zdnn/stories/news/0,4586,2679980,00.html
Some free privacy utilities for PC systems:
OptOut scans systems for installed spyware http://grc.com/optout.htm CookieWall automatically scans for and deletes unwanted cookies http://www.analogx.com/contents/download/network/cookie.htm WebWasher manages pop-up windows, page redirects, and scrubs away unwanted ads http://www.webwasher.com/
QUICK HITS
- - Quote of the Week - -
"I wouldn't waste the 25 cents to buy the cartridge that would propel the bullet," G. Gordon Liddy responding to a courtroom question on whether he wanted to kill Nixon White House lawyer John Dean. Liddy was sued for defamation by a woman who claimed his account of the real reason for the Watergate break-ins--that Dean wanted to retrieve photos of his future wife from a locked desk drawer--defamed her. The judge declared a mistrial in the case.
http://www.washingtonpost.com/wp-dyn/articles/A4516-2001Jan30.html
- - Smoking Gun - -
Alfred Muller, mayor of Friendship Heights for the last 25 years and recent proponent of banning all smoking on all public property in his DC-area hamlet, pleaded not guilty to charges that he molested a 14-year-old boy in a restroom at the National Cathedral. "He admits being on the scene and that an incident occurred in the restroom, but he states that the circumstances were different," an affidavit prepared by Muller's lawyer said.
http://www.washingtonpost.com/wp-dyn/articles/A16265-2001Feb1.html
- - Band Banned - -
The Iowa marching band can no longer sing along with the polka tune "In Heaven There Is No Beer." A parent of a student complained that the lyrics, "In heaven, there is no beer. That's why we drink it here. And when we're gone from here, all our friends will be drinkin' all the beer," promotes excessive drinking.
http://www.charlotte.com/observer/sports/wirespor/pub/beer.htm
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