Conservatives Unite Against Immigration Bill

A group of conservatives that includes Paul and me have signed a letter opposing the Gang of Eight’s immigration bill. I didn’t contribute to drafting the letter, but I was proud to sign it because it sets out the key arguments against the proposal in a powerful and easily understandable way. The group is called the Coalition Against S. 744, and the letter is titled “The Wrong Way to Reform Immigration:
An open letter on the Senate immigration bill.” Here it is:

We write to express our serious concerns regarding the Gang of Eight’s immigration bill, S. 744. We oppose this bill and urge you to vote against it when it comes to the Senate floor. No matter how well-intentioned, the Schumer-Rubio bill suffers from fundamental design flaws that make it unsalvageable. Many of us support various parts of the legislation, but the overall package is so unsatisfactory that the Senate would do better to start over from scratch.

We have a variety of concerns; some of us share only one, others share all. Among these concerns are that the bill:

* Is bloated and unwieldy along the lines of Obamacare or Dodd-Frank;
* Cedes excessive control over immigration law to an administration that has repeatedly proven itself to be untrustworthy, even duplicitous;
* Legalizes millions of illegal immigrants before securing the borders, thus ensuring future illegal immigration;
* Rewards law breakers and punishes law enforcement, undermining the rule of law;
* Hurts American job-seekers, especially those with less education;
* Threatens to bankrupt our already strained entitlement system;
* Expands government by creating new bureaucracies, authorizing new spending, and calling for endless regulations;
* Contains dangerous loopholes that threaten national security;
* Is shot through with earmarks for politically connected interest groups;
* Overwhelms our immigration bureaucracy, guaranteeing widespread fraud.

Reforming our immigration system is an important priority. But S.744 is such a defective measure that it would do more harm than good.

We urge you to vote against it and against any cloture vote to bring up the bill. Only then can a constructive, measured debate take place on how to improve America’s immigration policy.

The bill is signed by a number of “national conservative leaders,” a group that includes many of our friends:

Barbara Anderson, Citizens for Limited Taxation
Gary Bauer, Campaign for Working Families
Rev. C.L. Bryant, One Nation Back to God
Howie Carr, New England Talk Radio Host
Ann Corcoran, Refugee Resettlement Watch
Monica Crowley, Ph.D., Nationally Syndicated Radio Host
Glynn Custred, Professor Emeritus CSU East Bay
Jim Eagan, Sumner United for Responsible Government (Tennessee)
Elaine Donnelly, Founder and President, Center for Military Readiness
John Eastman, former Dean Chapman University Law School
Ken Eldred, CEO, Living Stones Foundation
Erick Erickson, Editor of RedState
Maria Espinoza, Houston Eagle Forum, The Remembrance Project
T. Willard Fair, President & CEO, Urban League of Greater Miami, Inc.
John Fonte, Hudson Institute
David Frum, Frum Forum
Brigitte Gabriel, President and Founder, Act for America
Frank Gaffney, President Center for Security Policy
Victor Davis Hanson, Hoover Institution, Stanford University
Donna Hearne, Constitutional Coalition, St. Louis, Missouri
Roger Hedgecock, Nationally Syndicated Radio Host
John Hinderaker, Powerline.com
David Horowitz, David Horowitz Freedom Center
Laura Ingraham, Nationally Syndicated Radio Host
Mickey Kaus, Columnist, Daily Caller, author The End of Equality
Roger Kimball, Encounter Books and The New Criterion
Cliff Kincaid, President, America’s Survival
Mark Krikorian, Center for Immigration Studies
Stanley Kurtz, Senior Fellow, Ethics and Public Policy Center
Kelly Monroe Kullberg, Christians for a Sustainable Economy
Lars Larson, Radio Host, Compass Media Networks
Mark Levin, Author and Radio Host
David Limbaugh, Lawyer and Author
Herb London, President, London Center for Policy Research
Dr. Gina Loudon, Nationally Syndicated Radio Talk Show host and Author
Rich Lowry, Editor, National Review
Michelle Malkin, author of Invasion and syndicated columnist
Ed Martin, Chairman, Missouri Republican Party
Jenny Beth Martin, Co-Founder and National Coordinator, Tea Party Patriots
Ken Masugi, Senior Fellow, The Claremont Institute
Andy McCarthy, Executive Director, Philadelphia Freedom Center
Eric Metaxas, Author and Speaker
Paul Mirengoff, Powerline.com
Frank L. Morris, Sr., Ph. D.
Mike Needham, CEO, Heritage Action
C. Preston Noell, President Tradition, Family, Property, Inc.
Peter K. Núñez, Former U. S Attorney, Southern District of California; Former Assistant Secretary for Enforcement, Department of the Treasury
Rev. Rick Scarborough, President, Vision America Action
John O’Sullivan, Editor-at-Large, National Review
Daniel Pipes, President, Middle East Forum
Judson Phillips, Founder Tea Party Nation
Andy Ramirez, Law Enforcement Advocate and Journalist
Sandy Rios, Vice-President, Family PAC Federal and Morning Host for AFR Talk
Phyllis Schlafly, President and Founder, Eagle Forum
Dimitri K. Simes, President & CEO, Center for the National Interest
Smart Girl Politics Action
Carol Swain, Professor of Political Science and of Law, Vanderbilt University
Tea Party Nation
Peter Thomas, The Conservative Caucus
Virginia Thomas, Liberty Consulting
Brad Thor, #1 New York Times Bestselling Author
Phil Valentine, Nationally Syndicated Conservative Radio Host
Richard Viguerie
Former Congressman Allen West
Tom West, Professor, Hillsdale College
Tim Wildmon, President of the American Family Association and American Family Radio

It is also signed by an even longer list of “activist leaders.” I think this effort is one of many signs that conservative opinion has hardened in opposition to the Gang of Eight’s proposal, in part due to the great work Jeff Sessions has done during the Senate Judiciary Committee’s hearings on the bill.

Hillary Clinton’s designated Benghazi scapegoat speaks out

A few days ago, we posted a poem written by Raymond Maxwell, the Deputy Assistant Secretary for Maghreb (North Africa) Affairs at the State Department’s Bureau of Near East Affairs, whom Hillary Clinton placed on “administrative leave” (months of it, with no end in sight) in response to the Benghazi attack. Maxwell has now written a second poem which I will print below.

Maxwell has also responded to his removal with prose. Specifically, he has provided an interview to Josh Rogin of the Daily Beast.

Maxwell accuses Clinton’s team of scapegoating him for the failures that led to the death of four Americans in Benghazi. He told Rogin: ““I had no involvement to any degree with decisions on security and the funding of security at our diplomatic mission in Benghazi.”

Maxwell also says that nobody from the State Department has ever told him why he has been disciplined. He has never been granted access to the classified portion of the ARB report, where all of the details regarding personnel failures leading up to Benghazi are set forth. Maxwell also says he has never been shown any evidence or witness testimony linking him to the Benghazi incident.

The Daily Beast’s sources say, however, that Maxwell was identified in the ARB report as not having read daily classified briefings. Maxwell is said to have admitted not doing so. But the ARB apparently stopped short of saying that Maxwell committed misconduct or breached a duty, either by not reading the briefings or otherwise.

According to the Daily Beast’s sources, the decision to place Maxwell on administrative leave was made by Cheryl Mills, Hillary Clinton’s top “henchman,” whose services for the Clintons date back to the days of Whitewater and Monica. The decision was executed by Beth Jones, the Acting Assistant Secretary of State for Near Eastern Affairs, although it has been reported that Jones understood from Mills that Maxwell would receive another spot rather than being placed in the purgatory of indefinite administrative leave.

Mills and Jones were named by Gregory Hicks as the two State Department officials involved in retaliating against him for questioning Susan Rice’s statements about Benghazi on the Sunday talk shows. Being Hillary’s henchman can be a demanding job.

As Rogin notes, the removal of Maxwell, as opposed to Beth Jones, seems at odds with what we know about the ARB report. It fixed responsibility for what happened in Benghazi on officials at Jones’ level, not Maxwell’s. As Ambassador Pickering said when the report was released:

We fixed [the responsibility] at the assistant secretary level, which is in our view the appropriate place to look, where the decision-making in fact takes place, where, if you like, the rubber hits the road.

But Jones has not been disciplined in any way over Benghazi. Neither has Liz Dibble, the principal deputy assistant secretary of State at the Bureau of Near East Affairs. In fact, Rogin reports, Dibble is slated to receive the coveted post of deputy chief of mission at the U.S. embassy in London this summer.

According to Maxwell, though, Jones and Dibble were responsible for all security related decisions related to Libya. And Rogin found three State Department officials who confirm Maxwell’s statement. So even if Maxwell didn’t read briefings, it does seem like he is being punished at least in part for sins committed further up the chain of command.

In any event, Maxwell isn’t taking his discipline lying down. He has filed grievances with the State Department’s human resources bureau and the American Foreign Service Association, which represents the interests of foreign-service officers.

And, as noted, he continues to write poetry about Benghazigate. Here is his latest, called “Trapped in a Purgatory of Their Own Conceit”:

Trapped in a purgatory
of their own conceit…

The web of lies they weave
gets tighter and tighter
in its deceit
until it bottoms out -
at a very low frequency -
and implodes.

It may be just a matter of perception –
they can’t undo their wrongs
for fear it’d undermine their
perceived authority –
an authority they think they require
to stay in charge.

Yet all the while,
the more they talk,
the more they lie,
and the deeper down the hole they go.

There’s nothing I need to go back to -
nothing to re-litigate -
nothing to defend -
and certainly nothing to prove
to the unworthy.

Just wait…
just wait and feed them rope.

DOJ’s Fox News Surveillance: Legitimate Leak Investigation, Or Outrageous Violation of the First Amendment?

Yesterday the Washington Post broke an explosive story: as part of a leak investigation, the Department of Justice obtained access to Fox News reporter James Rosen’s email account, without giving notice of such access to Rosen, Fox or anyone else:

When the Justice Department began investigating possible leaks of classified information about North Korea in 2009, investigators did more than obtain telephone records of a working journalist suspected of receiving the secret material.

They used security badge access records to track the reporter’s comings and goings from the State Department, according to a newly obtained court affidavit. They traced the timing of his calls with a State Department security adviser suspected of sharing the classified report. They obtained a search warrant for the reporter’s personal e-mails.

Many observers have reacted with outrage. Fox News released this statement:

We are outraged to learn today that James Rosen was named a criminal co-conspirator for simply doing his job as a reporter. In fact, it is downright chilling. We will unequivocally defend his right to operate as a member of what up until now has always been a free press.

DOJ obtained Rosen’s email records by obtaining a search warrant that it then served on Google. Along with the search warrant, DOJ also apparently procured a court order barring Google from telling Rosen that his gmail account had been accessed by the government. DOJ obtained the search warrant by submitting a 41-page affidavit by FBI agent Reginald Reyes. You can read the affidavit in its entirety here.

Reyes justified issuance of a search warrant by alleging that there was probable cause to believe that James Rosen had committed a crime–specifically, that he had violated 18 US Code Section 793, which is part of the Espionage Act. In particular, Reyes’s affidavit recites, “there is probable cause to believe that the Reporter [Rosen] has committed or is committing a violation of section 793(d), as an aider and abettor and/or co-conspirator, to which the materials relate.”

Section 793 is the provision that we referred to when, during the Bush administration, we urged that reporters for the New York Times be criminally prosecuted for publishing leaked information about Bush’s anti-terror strategies, in particular NSA’s ability to conduct electronic surveillance and the SWIFT program that tracked the financing of terrorist groups. Does that mean that, for the sake of consistency, we must approve the Obama administration’s covert seizure of James Rosen’s email account?

No. The Espionage Act does not criminalize all publication of classified information. It is specifically limited to information, the publication of which will be damaging to the United States. And that is a good thing, since pretty much everyone agrees that a lot of information is classified improperly. This is the relevant language of Section 793(d) that is quoted in Reyes’s affidavit:

Whoever, lawfully having possession of…information relating to the national defense which information the possessor has reason to believe could be used to the injury of the United States or to the advantage of any foreign nation, willfully communicates…the same to any person not entitled to receive it…shall be fined under this title or imprisoned not more than ten years or both.

During the Bush administration, we had no doubt that the information published by news organs like the New York Times would, indeed, harm the United States. If terrorists knew that the NSA was intercepting their cell phone communications, they would stop using such phones or devise ways of circumventing the surveillance. Likewise, if they knew that the U.S. government was able to trace bank transfers that wound up in terrorists’ hands, they could stop using those banks and rely on cruder, but less detectable, means of transferring money. Is the same true of the information that, according to the affidavit, Stephen Jin-Woo Kim leaked to Rosen, and that Fox News published?

This is the article by Rosen that gave rise to the leak investigation. Rosen reported:

U.S. intelligence officials have warned President Obama and other senior American officials that North Korea intends to respond to the looming passage of a U.N. Security Council resolution this week — condemning the communist country for its recent nuclear and ballistic missile tests — with another nuclear test, FOX News has learned.

What’s more, Pyongyang’s next nuclear detonation is but one of four planned actions the Central Intelligence Agency has learned, through sources inside North Korea, that the regime of Kim Jong-Il intends to take — but not announce — once the Security Council resolution is officially passed, likely on Friday.

The other three actions include the reprocessing of all of the North’s spent plutonium fuel rods into weapons-grade plutonium; a major escalation in the North’s uranium-enrichment program; and the launching of another Taepodong-2 intercontinental ballistic missile from the Yunsong military complex on the west coast of North Korea.

Would that report damage American interests? It would tell Kim Jong-Il that our intelligence agencies have at least one highly-placed source inside his government, who had knowledge of Kim’s plans in the event of another U.N. Security Council resolution condemning North Korea’s nuclear program. But as long as the news story didn’t point a finger toward any particular individuals, it is hard to see how American interests could be damaged. Rosen specifically noted, in his news article, that Fox was not divulging intelligence sources or methods:

FOX News is withholding some details about the sources and methods by which American intelligence agencies learned of the North’s plans so as to avoid compromising sensitive overseas operations in a country — North Korea — U.S. spymasters regard as one of the world’s most difficult to penetrate.

This obviously distinguishes the Kim/Rosen leak from the ones that we criticized during the Bush administration, the whole point of which was to expose U.S. intelligence-gathering and anti-terror techniques to public view.

It it noteworthy that Reyes’s affidavit made no serious effort to show that the leak in question was damaging to American interests–a necessary element of any violation of Section 793, which was the basis for issuance of the warrant. It quotes one email in which Rosen discusses his and Kim’s motives:

In short: Let’s break some news, and expose muddle-headed policy when we see it–or force the administration’s hand to go in the right direction, if possible. The only way to do this is to EXPOSE the policy, or what [North Korea] is up to, and the only way to do that authoritatively is with EVIDENCE.

Beyond that, Reyes stated in paragraph 38 of his affidavit:

The text of the June 2009 article reflects the Reporter’s knowledge and understanding that the information the Reporter had was intelligence information the disclosure of which could be harmful to the United States.

Yes, but Rosen specifically said that he refrained from publishing the information that could be harmful, i.e., about sources and methods. Reyes continued in paragraph 39:

(g) The text of the June 2009 article reflects the Reporter’s knowledge and understanding that the information the Reporter had received was intelligence information the disclosure of which could be harmful to the United States;

(h) Nevertheless, the Reporter published an article on the Internet containing the TOP SECRET/SCI national defense information about the Foreign Country that was in the Intelligence report;

Well, he published some of it–but not the material on sources and methods. If there is anything in the Fox article that was actually damaging to American interests, Reyes never says what it was. Reyes’s only additional effort to show that the leaked disclosures were damaging came in paragraph 35, which summarizes admissions made by Kim when the FBI questioned him:

During the interview Mr. Kim made a number of admissions, including:

* confirming that the Owner’s information disclosed in the 2009 article was national defense information and most of it, in Mr. Kim’s mind, was properly classified at the TOP SECRET/SCI level;

* confirming that the same disclosures in the June 2009 article were, in Mr. Kim’s mind, “egregious,” “bad” and harmful to the national security in a number of respects which he described in detail;

Sadly, Mr. Reyes left it there: whatever “details” Mr. Kim may have referred to are absent from the affidavit. The allegation that the Rosen article was harmful to national security is entirely conclusory.

I am not enough of a criminal lawyer to have an opinion on whether the warrant should have been issued on this weak showing. The only way I can see in which the June 2009 article could have been injurious to the U.S. is if it told North Korea’s rulers something they didn’t already know: that the U.S. has informants high enough up in the regime to have access to the information that was disclosed. Whether this represents a plausible claim of a Section 793 violation will be debated vigorously in the weeks to come. For the moment, we can safely conclude that the Bush-era publication of leaks by the New York Times and other news outlets presented far stronger cases for prosecution under Section 793, and a far more plausible case for seizing reporters’ email accounts and other data, than James Rosen’s article on North Korea.

GOP’s emerging IRS scandal narrative isn’t compelling

Eliana Johnson correctly identifies the emerging GOP narrative about President Obama’s relationship to the IRS scandal. The president, we are told, has fostered a “culture of intimidation” that encourages the vilification of one’s political opponents, thus inducing bureaucrats to target those whom the president has demonized.

I understand why the GOP is pressing this line. So far, it lacks evidence of White House involvement in the scandal, but wants to blame Obama anyway. And Obama has tended to vilify his political opponents.

Unfortunately, however, the “culture of intimidation” narrative strikes me as weak and whiney — the kind of thing I’d expect from Democrats. In fact, it’s similar to attempts to blame violence such as the Arizona shooting of Rep. Giffords and others on the “demonizing” rhetoric of conservatives.

Politicians are responsible for their words, for the actions they advocate, and for the actions they take. But they are not responsible when/if a third party is motivated by their words to take actions they haven’t advocated. To argue otherwise is to discourage forceful advocacy. Politicians’ words can affect listeners in a wide variety of ways. They shouldn’t worry about how extremists will be affected.

I happen to agree that some of the rhetoric and tactics Obama has employed against his critics, including the Tea Party, is unpresidential at best. Eliana’s piece provides examples. George W. Bush, and indeed most of Obama’s predecessors, absorbed harsh attacks without responding in kind. Richard Nixon is the main exception, and this fact supports comparisons between Nixon and Obama.

Obama therefore deserves criticism for the way he deals with political opponents. But that criticism is independent of the wrongdoing of overzealous partisans within the civil service. Obama’s rhetoric would be just as offensive if the IRS had not acted improperly and is not made more offensive because the IRS has done.

I also believe that Obama has little appreciation for the democratic process, including the right to dissent from his agenda without suffering for it. In my view, he regards democracy and dissent as hindrances to the march of history he fancies himself leading.

But to make this indictment stick, we must point to concrete evidence, such as that mentioned in Eliana’s piece. Speculation that bureaucrats acted improperly because of Obama’s rhetoric doesn’t meet that standard.

Having observed the federal bureaucracy up-close for 45 years, I can testify that many bureaucrats don’t need presidential rhetoric to advance left-liberalism through improper and/or abusive action. In fact, they do so even when the president is a non-liberal.

But this isn’t really my point. Whatever may be true of federal bureaucrats, trying to link their misconduct to general presidential rhetoric is a lazy man’s game. It smacks of whining and is unlikely to resonate except among those who already dislike Obama.

There are two valid takeaways from the IRS scandal. First, it confirms that big government, whose power Obama is bent on expanding, cannot be trusted to behave properly. Second, it calls for further investigation to determine how high up the chain the wrongdoing extends and whether the administration acted promptly to stop the targeting once it learned of that activity.

Connecting the dots on the video

As Scott discussed earlier today, the absence of any reference in the Benghazi talking points to the Muhammad video has raised a new set of questions about the scandal. Among the questions are: (1) why isn’t the video mentioned in the talking points and (2) how, given the video’s absence therein, did it become the centerpiece of subsequent explanations of the attack, including Susan Rice’s.

As to the first question, Mike Morrell, the Deputy Director of the CIA, says he drafted the final version of the talking points. Morrell’s mission was not to state the CIA’s view — the original CIA talking points did that. Rather, he was tasked with coming up with a version that reflected the “equities” and concerns of those who had objected to the original talking points, notably the Department of State.

In performing this function, Morrell was willing to scrub the talking points of all content that the State Department and the White House disliked. That meant the removal of references to terrorism and to prior warnings that attacks might occur.

But Morrell did not include any mention of the video. Why? There are two possibilities. First, the video didn’t come up in any of the discussions in which Morrell participated. Second, the video came up, but Morrell was unwilling to mention it because he doubted its relevance. In this scenario, Morrell was willing to scrub the talking points, but not to convert them into a piece of misdirection.

Which of these possibilities is the more likely? The video doesn’t come up in the email traffic released by the White House until it is referenced in the subject line of a Saturday afternoon email from “USUN” to “Susan Rice, USUN” (page 92 of the documents). Specifically, the subject line reads “SBU/Closehold: 0800 SVTS on Movie Protests/Violence.”

Thus, the video, and its alleged relation to the violence on 9/11/12, apparently was discussed during a conference (on the “Secure Video Teleconferencing System”) that occurred early Saturday morning. But I cannot tell who participated in that conference. The memo about the conference has been completely redacted. And I couldn’t find any other email that specifically discusses this conference.

Was the “0800 SVTS on Movie Protests/Violence” the main Saturday morning conference during which the concerns of the State Department were thrashed out. Or was this a different conference? Morrell, of course, was at the main conference. But if there was a side conference, he might not have participated.

In any case, by around 11:00 on Saturday morning, Morrell had re-drafted the talking points into something very close to their final form, based on the main conference that took place earlier that morning. And the talking points did not mention the video. Most likely, the video had been, at most, a footnote in the Saturday morning conference with Morrell at which the State Department advanced its “equities.”

It was on Saturday afternoon, after the talking points had been finalized, that the video began its ascent from (at best) an omitted footnote to the core explanation of the Benghazi attacks. Unfortunately, the only email (or the only one that has been released) that might shed light on this ascent is completely redacted.

It seems likely, though, that on Saturday morning (if not earlier) the video was percolating in the minds of White House and/or State Department officials as something they wished to inject into the narrative. However, these minds realized that, with Congress pushing hard to receive the talking points and the CIA involved in the process, it was not feasible to weave the video into the talking points.

In other words, the best that could be done with the talking points was damage control — the elimination of “harmful” information. The insertion of the video would have to occur “off-line,” after the CIA was out of the loop but before Rice went on the Sunday talk shows.

But who actually decided that the talking points would be the centerpiece of Rice’s appearances? Karl Rove suspects the White House via Ben Rhodes and Tommy Vietor. I suspect the State Department with clearance from the White House.

But the bottom line is, we don’t know. Additional hearings are required. Susan Rice should be a star witness.

Live from the Upper Midwest Employment Law Institute

I’m attending the two-day Upper Midwest Employment Law Institute in St. Paul this year. It’s a great program that attracts leading practitioners from all around the country. I have attended several times in years past, but this year I’m here because I need the continuing legal education credits (including Minnesota’s offensive get-your-mind right elimination-of-bias requirement) before June 30. The institute program draws a large audience which begins with plenary sessions for a couple of hours each morning followed up by breakout sessions in specialized areas.

It didn’t occur to me that anything of general interest might be happening here, but one of the speakers is NLRB acting general counsel Lafe Solomon. At the plenary session an hour ago Solomon addressed the legal limbo in which the NLRB now finds itself as a result of the D.C. Circuit’s ruling on the unconstitutionality of Obama’s recess appointments to the board. More generally, he described the board as under assault politically, legislatively and judicially.

Solomon reported that the Third Circuit issued a decision last week in harmony with the D.C. Circuit ruling. Solomon is optimistic that the Court will vindicate Obama’s recess appointments in the end, but the Court hasn’t yet taken the case and a ruling would not be issued before somewhere near the end of the Court’s term next year. (See this handy recess appointments litigation resource page for details and developments.)

Solomon conveyed a mournful angst and subliminal anger about the situation in which the board finds itself. Perhaps it is the bureaucratic equivalent of combat fatigue.

At the moment I am in a breakout session with Solomon in which he is providing an in-depth update on board issues. Despite his funereal affect in the plenary session this morning, he perked up when I asked if I could snap a photograph (above left) on my iPhone for this post, to which he graciously consented.

The Other Tax Hearing to Watch This Week

I’ve expressed my puzzlement and disappointment here before about how Apple, like so much of Silicon Valley, is reflexively liberal in its politics.  So it is with some curiosity that I note the story out last week about how Apple CEO Tim Cook was trying to “get out ahead” on the story of his appearance before a Senate committee tomorrow in Washington where he will essentially be called unpatriotic—by both parties unfortunately—because Apple doesn’t engage in the sadomasochism of bringing home to America the roughly $100 billion in profits it has earned overseas—and is keeping there to avoid America’s punitively high corporate income tax rates.

From all appearances Cook is going to grovel and apologize.  According to one story:

In an interview with The Washington Post, Cook says he plans to present specific proposals at the Senate hearing to overhaul the U.S. corporate tax system.

“If you look at it today, to repatriate cash to the U.S., you need to pay 35 percent of that cash. And that is a very high number,” Cook said in an interview Thursday. “We are not proposing that it be zero. I know many of our peers believe that. But I don’t view that. But I think it has to be reasonable.”

Cook also pointed out that if state and federal taxes are combined, Apple pays roughly $1 million per hour in taxes, possibly making Apple the largest corporate taxpayer in the country.

He shouldn’t be defensive.  Rather, he should take a page from Intel from about 20 years ago.  Back in the early 1990s, when California’s fiscal situation was similar to today (in other words, deeply under water), Gov. Pete Wilson proposed abolishing the sales tax on capital equipment purchases by manufacturers.  While Nordstrom or Home Depot have to locate where consumers are, manufacturers can locate anywhere, and the sales tax on capital equipment was a huge disincentive to expanding or building new plants in CA.  Intel figured this tax added as much as $60 million to the cost of a new plant.

Democrats naturally opposed abolishing the tax because “we need the revenue,” oblivious as always to incentive effects. So Intel’s tax manager appeared before the State Senate finance committee and explained the facts of life, as Intel was in the midst of deciding whether to build a new billion-dollar chip plant in California or New Mexico, which didn’t have a sales tax on capital equipment.  As I recall, his point to the committee went something like this:

You’re not going to collect this sales tax on capital equipment from Intel.  There are two ways you’re not going to collect this tax.  You won’t collect this tax if we build our new plant in New Mexico.  And you’re not going to collect this tax if we build our new plant in California.  Get it?

Of course the Democrats didn’t get it at the hearing.  Their economic illiteracy would be comical if it didn’t have such baleful consequences.  Gov. Wilson stuck to his guns, and the tax was eventually abolished, I believe.

So I wish tomorrow morning that Tim Cook would look senators directly and say this:

There are two ways you’re not going to exact America’s highest-in-the-world corporate income tax on Apple.  You’re not going to collect it if we keep the money overseas, as is our right under the tax code that you people wrote into law; and you’re not going to collect it if we bring the money home.  Get it?

I can certainly imagine Steve Jobs putting is this way.

Now back to the IRS scandal.