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Posts Tagged ‘Corruption’
September 10th, 2014 at 7:14 pm
IRS re Lost Emails: Oops, We Did It Again

The Obama administration has a penchant for releasing damaging disclosures on Fridays.

The most recent example was last Friday’s admission by the IRS that – in addition to losing potentially incriminating emails from Lois Lerner’s account – it also can’t find emails from five other employees connected to the conservative targeting scandal.

Two of the five worked in the agency’s Cincinnati office where most of the bad behavior took place. The others include Lerner’s technical adviser, a group manager in the tax-exempt division and a tax law specialist, reports Fox News.

The IRS says all five permanently lost access to emails sought by congressional investigators when their hard drives crashed. The agency’s Inspector General is testing the drives to see if any emails can still be recovered.

Republicans in Congress are not amused.

“The IRS’s ever-changing story is practically impossible to follow at this point, as they modify it each time to accommodate new facts,” Rep. Darrell Issa (R-CA), Chairman of the House Oversight Committee, said. “This pattern must stop.”

More likely it will continue.

June 25th, 2014 at 2:25 pm
Isn’t Not “Following” the Law the Same as Breaking It?

No one wants to be David Ferriero right now.

He’s the U.S. Archivist, the man in charge of keeping all of the federal government’s records for posterity.

Apparently though, no one told the IRS. Twelve days ago the agency revealed that it has conveniently lost two years’ worth of emails from Lois Lerner, the former IRS supervisor at the center of a scandal that targeted conservative groups for extra scrutiny.

“Any agency is required to notify us when they realize they have a problem,” Ferriero told a House Oversight committee panel. One imagines that an alleged hard drive failure vaporizing thousands of emails qualifies as just such a problem.

By law, the IRS is supposed to alert Ferriero within days. He wasn’t notified until earlier this month – about three years after the crash occurred.

When pressed, all Ferriero would say is that the IRS did not “follow” the law. He would not say the agency broke the law.

It doesn’t matter. The truth is obvious. Every new revelation in the IRS scandal only serves to harden the perception that so-called public servants abused their positions.

February 17th, 2014 at 1:22 pm
The IRS Targeting Scandal: Voters Believe More Than “a Smidgen of Corruption”

In an interview with Fox News’ Bill O’Reilly that aired on Super Bowl Sunday, President Obama declared that there was “not even a smidgen of corruption” with regard to the Internal Revenue Service’s targeting of conservative groups.

The American people are not buying it.

According to a Fox News poll released last week, a whopping 64 percent of registered voters, including a majority of Democrats, think the targeting scandal does suggest corruption at the IRS.  A mere 27 percent don’t view the IRS’s targeting as corrupt.

When questioned about whether Congress should continue to investigate the IRS scandal, an even greater majority says “Yes!”

Majorities of Republicans (83 percent), independents (72 percent) and Democrats (60 percent) agree lawmakers should persist until they ‘feel they know the truth.’

For the poll results, click here.

February 13th, 2014 at 11:36 am
Not Even a Smidgen of Corruption
Posted by Print

Below is one of the latest cartoons from two-time Pulitzer Prize-winner Michael Ramirez.

View more of Michael Ramirez’s cartoons on CFIF’s website here.

January 23rd, 2014 at 8:34 pm
Just a Coincidence, We’re Sure
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You’d think the Obama Administration would have been sufficiently chastened by the IRS scandal not to push their luck. You’d have thought wrong. From the New York Times:

LOS ANGELES — In a famously left-leaning Hollywood, where Democratic fund-raisers fill the social calendar, Friends of Abe stands out as a conservative group that bucks the prevailing political winds.

A collection of perhaps 1,500 right-leaning players in the entertainment industry, Friends of Abe keeps a low profile and fiercely protects its membership list, to avoid what it presumes would result in a sort of 21st-century blacklist, albeit on the other side of the partisan spectrum.

Now the Internal Revenue Service is reviewing the group’s activities in connection with its application for tax-exempt status. Last week, federal tax authorities presented the group with a 10-point request for detailed information about its meetings with politicians like Paul D. Ryan, Thaddeus McCotter and Herman Cain, among other matters, according to people briefed on the inquiry.

Here’s the Administration’s problem: One of the reasons they were able to get away with targeting Tea Party groups for so long was because most of the victimized organizations were grassroots affairs without megaphones. But go after Hollywood? The tinseltown conservatives may have spent the past decade content to keep their opinions to themselves—but politically-motivated audits have a way of upsetting that equilibrium (how do you think the story got to the Times, after all?).

The old saying is “never pick a fight with someone who buys ink by the barrel.” Ink may be going by the wayside these days, but it’s still ill-advised to throw a haymaker at people with this kind of clout. I suspect the White House will learn that sooner rather than later.

October 15th, 2013 at 12:20 pm
Was Obamacare Website a No-Bid Job?

If anyone is looking for another reason to criticize the Obamacare website rollout, here it is.

“Rather than open the contracting process to a competitive public solicitation with multiple bidders, officials in the Department of Health and Human Services’ Centers for Medicare and Medicaid accepted a sole bidder, CGI Federal, the U.S. subsidiary of a Canadian company with an uneven record of IT pricing and contract performance,” reports the Washington Examiner.

An open, competitive process would have revealed that CGI was fired in 2011 by the Ontario government for failing to deliver on time “a new online medical registry for diabetes patients and treatment providers.”

In other words, CGI – the firm responsible for creating a health insurance portal to service 36 American states – couldn’t deliver a much less complicated system for 1 Canadian province. The service was so bad that the Ontario government still refuses to pay any outstanding fees it owes to CGI.

Remember when liberals screamed bloody murder about the no-bid contracts awarded by the George W. Bush administration to defense contractors?

Well, it’s time to mount their high horses again and demand accountability.

I’m looking at you in particular, Jon Stewart.

September 16th, 2013 at 7:04 pm
Remember Obama Phones?

Looking for a job? How about getting trained by a government contractor to “forge signatures and falsify data”?

National Review is reporting that a former employee at TerraCom, Inc., a cell phone provider under the federal government’s Lifeline program, was encouraged to use the tactics to help boost the company’s revenues from $32.6 million in 2011 to $52.3 million in 2012.

Though a drop in the bucket for a line-item that costs $2.189 billion, the revelation serves as a reminder for how bad the so-called “Obama Phone” program has been administered.

So does this: “Lifeline’s costs have increased by 166 percent in the past five years,” according to NR.

Hmm… that means the program, around since the 1980’s, dramatically spiked in 2009 and hasn’t stopped since. Any guess as to what – or who – is responsible?

August 8th, 2013 at 3:16 pm
Investigation of IRS Scandal Uncovers Links to the FEC

How often do the Internal Revenue Service and the Federal Elections Commission share information about non-profit political groups?

If the question seems highly unusual that’s because it is. Ordinarily, there is no reason for the two federal agencies to communicate about a private entity, yet evidence is mounting that IRS and FEC officials had several conversations about politically conservative non-profit groups.

To recall, the IRS has the power to grant or strip a group’s non-profit status, and the FEC is the main arbiter of political speech. If there is evidence of coordination between these two agencies to discriminate against associations because of their viewpoint, a whole new level of government corruption will emerge.

To find out the truth, House Oversight Committee Chairman Darrell Issa (R-CA) is requesting “All documents and communications between or among any FEC official or employee and any IRS official or employee for the period January 1, 2008, to the present.”

If past experience with the Obama administration is any guide, House committee staff could be in for a lot of reading.

July 18th, 2013 at 5:10 pm
The Wages of Liberalism
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This story would be slightly less depressing even if we hadn’t all seen it coming for years:

Detroit on Thursday became the largest city in U.S. history to file for bankruptcy, as the state-appointed emergency manager filed for Chapter 9 protection.

Kevyn Orr, a bankruptcy expert, was hired by the state in March to lead Detroit out of a fiscal free-fall and made the filing Thursday in federal bankruptcy court.

A number of factors — most notably steep population and tax base falls — have been blamed on Detroit’s tumble toward insolvency. Detroit lost a quarter-million residents between 2000 and 2010. A population that in the 1950s reached 1.8 million is struggling to stay above 700,000. Much of the middle-class and scores of businesses also have fled Detroit, taking their tax dollars with them.

This, of course, doesn’t take the analysis back quite far enough. The population and tax base are symptoms, not causes. Why did people actually leave? Well, there were local officials intent on driving out part of the population on racial grounds, the dominance of unions that ended up choking the auto industry, overwhelming crime rates, and a spate of corrupt politicians.

For decades now, Detroit has been a laboratory of liberalism. Today’s news only makes explicit what many of us concluded long ago: the experiment has failed.

June 5th, 2013 at 10:19 am
HHS: Yep, We Lied
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If you’re a member of the Obama Administration who’s engaged in some official malfeasance, now is the time to come clean. With the orgy of Administration-related scandals in the news right now, there’s a decent chance no one will notice. And if they do, they’ll likely be so numb to the pervasive impropriety that they’ll just ignore it and move on. That seems to be the thinking at the Department of Health and Human Services, where Secretary Kathleen Sebelius suddenly decided to become a little more forthcoming yesterday. From the New York Times:

Kathleen Sebelius, the secretary of health and human services, disclosed on Tuesday that she had made telephone calls to three companies regulated by her department and urged them to help a nonprofit group promote President Obama’s health care law.

She identified the companies as Johnson & Johnson, the drug maker; Ascension Health, a large Roman Catholic health care system; and Kaiser Permanente, the health insurance plan.

At a hearing of the House Committee on Education and the Workforce, Ms. Sebelius said she did not explicitly ask the companies for money, but urged them to support the work of the nonprofit group, Enroll America.

The group, led by former Obama administration officials, is working with the White House to publicize the 2010 health care law and help uninsured people sign up for coverage.

Here’s the deal: News of the Secretary’s freelancing had already gone public a few weeks ago, but the defense at the time was that she had only solicited money from a couple of companies that weren’t regulated by HHS. Now she concedes that she was hitting up companies under her department’s jurisdiction but wants you to believe that it wasn’t that big of a deal.

Here’s the problem: Congress refused to fully fund an extensive PR campaign for Obamacare (as it should have — this is a government health program, not the rollout of a new SUV), leading a bunch of Obama flaks to create the aforementioned Enroll America. Now you have the HHS Secretary — who has the power to bring down the hammer on these companies — ever-so-gently suggesting that they “support the work” of Enroll. She could well be telling the truth about not explicitly asking them for money — because she wouldn’t have to. None of these companies need to be told outright that if mama ain’t happy, ain’t nobody happy.

The dissembling from HHS is bad enough, but it’s representative of a deeper problem. At every turn, Obamacare creates precisely this kind of nexus between government and the private sector. It’s an invitation to corruption. And it looks like the RSVPs are starting to come in.

May 25th, 2013 at 2:20 pm
IRS Gave Obama Charity Fast-Track Approval while Tea Party Groups Harassed

What’s in a name?

If you’re Lois Lerner, an IRS division head in charge of approving groups for non-profit status, seemingly everything.

By now, just about everyone in America knows that the IRS division tasked with scrutinizing non-profit applications deliberately and consistently targeted groups with the words “tea party” or “patriot” in their name.

No similar litmus test was used for liberal or progressive groups, indicating a clear and convincing bias by the government against ideological opponents of the White House.

In fact, in at least one case, it looks like the very same IRS agents who persecuted conservative groups fast-tracked approval for an outfit whose name practically screamed for – and received – special treatment.

The name of the organization: The Barack H. Obama Foundation (BHOF). Though not formally affiliated with President Obama, the group is headed by one of his half-brothers, Abon’go Malik Obama, and named for their mutual father.

Organized in 2008, “BHOF operated illegally as a non-profit group and falsely claimed tax-exempt status – for which it had not yet formally applied,” according to research released by Discover the Networks, an online database that keeps track of the connections between leftwing groups and activists.

But once BHOF did get around to applying for tax-exempt status, the IRS’ penchant for favoritism really showed itself. Per Discover the Networks, “The foundation finally submitted its 2010 application for non-profit, tax-exempt status on May 23, 2011; seven days later, it submitted its filings for 2008 and 2009. Within just one month of these filings – on June 26, 2011 – Lois Lerner, the senior official who headed the IRS’s tax-exempt organizations office, signed paperwork granting tax-exempt status to BHOF.”

Here’s the best part. Apparently, “Lerner broke with the norms of tax-exemption approval making BHOF’s tax-exempt status retroactive to December 2008.”

Maybe the next time Lois Lerner appears before the House Oversight Committee the members will ask her to explain how, with the Tea Party and BHOF examples in mind, they can draw any other conclusion about her stewardship at the IRS than that it has been characterized by the most obvious case of unethical – and potentially illegal – partisan bias.

May 24th, 2013 at 2:39 pm
Insurance Companies Solicited by Sebelius Now Questioned by Congress

The Hill reports that the plot is thickening as key members of Congress ask 15 insurance companies to turn over any records related to potentially illegal fundraising to support ObamaCare by Health and Human Services Secretary Kathleen Sebelius.

The request went to industry giants Aetna, Blue Shield of California, Cigna, Coventry Health Care, H&R Block, HCSC Group, Highmark, Humana, Independence Blue Cross, Kaiser Permanente, United Healthcare, WellPoint, America’s Health Insurance Plans, BlueCross BlueShield Association, and CareFirst BlueCross BlueShield.

The controversy first surfaced when the Washington Post confirmed that HHS Secretary Sebelius is personally contacting private members of the health care industry – including insurance providers – to ask that they donate six- to seven-figure sums to Enroll America, a pro-ObamaCare non-profit advocacy group running a national summer and fall ad campaign to promote enrollment in state-based insurance exchanges.

H&R Block, one of the companies contacted by both Sebelius and Congress, has already committed to donating $500,000 to fund Enroll America’s efforts, according to the New York Times.

With its records request, you can bet that Congress wants to know what exactly was said/indicated/promised in the Sebelius-H&R Block conversation, as well as any other communications between top health insurance companies and their chief regulator.

If those requests aren’t honored voluntarily, expect to see subpoenas follow very quickly.

May 16th, 2013 at 7:39 pm
Congressional Republicans Demand Investigation of Sebelius

A group of powerful Republicans in the House and Senate is demanding an investigation into potentially illegal fundraising calls by HHS Secretary Kathleen Sebelius to private health companies.

In a letter to the Government Accountability Office, three House committee chairmen and two Senate ranking members said, “The Secretary’s actions show an apparent disregard for constitutional principles and may violate the Antideficiency Act, the prohibition against augmenting congressional appropriations, and executive branch ethics laws,” according to reporting by Politico.

As I explain in my column this week, Sebelius has been caught quoting specific dollar amounts that private companies should donate to a pro-ObamaCare community organizing group getting ready to promote the law ahead of this year’s October enrollment.

Whatever GAO decides to do, it’s a near certainty that the relevant Republican-led House committees with jurisdiction over this scandal will soon launch investigations into Sebelius’s conduct.

May 13th, 2013 at 5:46 pm
Sebelius Already Raised at Least $10.5 Million from Health Industry

On the heels of a Washington Post report that HHS Secretary Kathleen Sebelius is actively soliciting health industry executives for six- to seven-figure “donations” to help publicize ObamaCare, the New York Times reveals how much she’s netted in pledges so far: $10.5 million.

And that’s just from two groups. One is the Robert Wood Johnson Foundation which bills itself as the largest public health philanthropy. It pledged $10 million. The other is the for-profit tax preparation company H&R Block who, according to the Times, “sees a large role for itself in helping low- and middle-income people apply for tax credits that can be used to buy private health insurance.” It promised $500,000 for the propaganda outreach effort.

An unbiased observer could look at this and easily see at least the probability if not the certainty of a quid pro quo arrangement where payment to an HHS-backed initiative now means preferential treatment later.

And remember, these two transactions are only the tip of the iceberg. Once more health industry entities confirm their involvement Sebelius’ project we’ll be able to see which firms will reap the lion’s share of benefits of ObamaCare’s corrupt pay-to-play scheme.

Crony capitalism is alive and well in the Obama Administration.

February 19th, 2013 at 12:31 pm
More Local Govt. Corruption in California

An investigative report from the Orange County Register deserves to be read in its entirety, but here’s my executive summary.

Hundreds of schools in California enlisted the services of a bank to underwrite school construction bonds, known on Wall Street as “capital appreciation” bonds.  The key attraction: no payments on principal or interest for 35 years.

Of course, that kind of delay isn’t free.  One school district in Orange County is estimated to owe $13 for every $1 borrowed when the bills come due.  This means that for one $22 million bond issue in 2011, the Placentia-Yorba Linda school district will eventually owe $280 million – 13 times the original amount.

It gets worse.  In 2008, thanks to arguably illegal politicking by the bank underwriter, district voters approved up to $200 million in bond issuances.  But while not all of the total are capital appreciation bonds, those that are could very well bankrupt the district for a generation or more.

The failures on display here are all too familiar.  Public officials opting to mortgage the future to look like a hero in the present saddle taxpayers with huge financial burdens.  Financial whizzes with no ethical scruples abuse the system for big profits.  And money wasted on concrete eye-candy – a football stadium and 600 seat performing arts center – while funding for classroom instruction gets reduced.

While there is no silver lining to the Register piece, it’s worth reading as a reminder of how much American government at all levels needs a deep renewal of ethics, thrift, and a commitment to the common good.

May 31st, 2012 at 5:08 pm
Romney Dings Obama on Solyndra

Standing across the street from Solyndra’s Fremont, CA headquarters today Mitt Romney articulated well just about everything that’s wrong with President Barack Obama’s Solyndra fiasco.

From CNN:

“This building, this half-a-billion-dollar taxpayer investment, represents a serious conflict of interest on the part of the president and his team. It’s also a symbol of how the president thinks about free enterprise. Free enterprise to the president means taking money from the taxpayers and giving it freely to his friends.”

CFIF readers are no strangers to the Obama administration’s crony capitalism vis-à-vis Solyndra.

The fast-track loan approvals that benefited a major 2008 campaign bundler, the renegotiated terms that leapfrogged private investors in front of taxpayers in the event of a default, and the unnecessary risk of $535 million in taxpayer money on an unproven solar technology that ultimately flamed out are permanent reminders of how this White House’s corrupt politics and bad policies result in debt-exploding outcomes.

Americans can’t afford another day of this fiscal irresponsibility; let alone another four years.

April 25th, 2012 at 1:35 pm
“Bribery” in Mexico Not that Different from “Public Policy” in America
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In recent days, Wal-Mart has been rocked by the New York Times‘ reporting on a bribery scandal in Mexico, where the firm reportedly paid over $24 million to government officials to fast-track the permitting process for stores built south of the border.

The left, of course, is all over this because Wal-Mart is their corporate bete noir of choice. Personally, however, I think the party that bears the most guilt is the Mexican government, which has created an atmosphere in which graft is the easiest way to do business. Absent those conditions, the need for bribes would have been minimal and the issue would’ve been moot. Regardless, however, there’s an important angle here that gets fleshed out by the American Enterprise Institute’s Nick Schulz, writing for Forbes:

… While we’re on the topic of companies having to pay the politically powerful for access to markets, can we stop for a moment to examine how things sometimes get done right here in the United States? It’s not uncommon for big box retailers to pony up cash and other unearned benefits in order to break new ground on stores.; what’s different here, however, is that members of our political class often force them to do it. And it’s all perfectly legal.

Consider a recent bill in Maryland, where I live, aimed at big box retailers. Firms like Wal-Mart, Costco, and others hoping to expand operations in wealthy Montgomery County, just outside Washington DC, would be forced to negotiate legally-binding “community benefits agreements” as a condition for building and operating new stores. These sorts of bills are not uncommon when big retailers want to expand or enter into new markets.

The upshot is that politically well-connected local stakeholders – unions, community organizers, and other interest groups – get cash, hiring promises, and other benefits from the retailer in exchange for dropping any opposition to a new store.

Among the possible benefits are “assistance to community organizations and programs.” These organizations can, in turn, use this “assistance” to support the political candidates who push this kind of legislation in the first place.

What Schulz is describing is no more representative of free-market capitalism than the bribery going on in Mexico. As long as business owners have to compensate others who have contributed absolutely nothing to their efforts as the predicate for setting up shop, political power over business is still excessive. At least the folks in Mexico have the decency to call this what it is.

January 30th, 2012 at 1:16 pm
New Docs Show Holder Knew of F&F Connection to Agent’s Death

Another weekend, another document dump from Eric Holder regarding Fast and Furious.  Last Friday Holder’s Justice Department released information about 500 emails that show Holder knew about Border Patrol Agent Brian Terry’s murder on the day Terry died.  Other emails indicate Holder was aware of the botched gun-tracking program’s connection to Terry’s death.  Per Michael Walsh at the New York Post:

That information came in a series of e-mails in which the former US attorney in Arizona, Dennis Burke, discussed the F&F’s first fatality, agent Brian Terry, with a Holder deputy. The e-mails were sent in the early hours of Dec. 15, 2010, the day Terry died of wounds received the day before in a shootout 18 miles inside the US border, near Nogales.

The deputy, Monty Wilkinson, responded: “Tragic. I’ve alerted the AG.”

Burke, an anti-gun fanatic whose appointment as US attorney in 2009 roughly coincided with the start of F&F, goes on to tell Wilkinson later that day: “The guns found in the desert near the murder of the BP officer connect back to the investigation we were going to talk about — they were AK-47s purchased at a Phoenix gun store.”

That’s right. The government’s top law-enforcement officer has been turning a blind eye to a cancer in his department for more than a year.

November 30th, 2011 at 5:35 pm
Holder Seals Fast and Furious Records

How’s this for a breach of the public’s trust?  From Judicial Watch:

The Obama Administration has abruptly sealed court records containing alarming details of how Mexican drug smugglers murdered a U.S. Border patrol agent with a gun connected to a failed federal experiment that allowed firearms to be smuggled into Mexico.

This means information will now be kept from the public as well as the media. Could this be a cover-up on the part of the “most transparent” administration in history? After all, the rifle used to kill the federal agent (Brian Terry) last December in Arizona’s Peck Canyon was part of the now infamous Operation Fast and Furious. Conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the disastrous scheme allowed guns to be smuggled into Mexico so they could eventually be traced to drug cartels.

Instead, federal law enforcement officers lost track of more than 1,000 guns which have been used in numerous crimes. In Terry’s case, five illegal immigrants armed with at least two semi-automatic assault rifles were hunting for U.S. Border Patrol agents near a desert watering hole just north of the Arizona-Mexico border when a firefight erupted and Terry got hit.

The report goes on to say that Border Patrol officials have been kept out of the loop on why the Mexican national charged with killing Terry has yet to be tried almost a year after the murder.

Just before the court documents were sealed, the Washington Times published an article showing why U.S. Attorney General Eric Holder and others responsible for the Fast and Furious scandal want the details of Terry’s murder under wraps:

A now-sealed federal grand jury indictment in the death of Border Patrol agent Brian A. Terry says the Mexican nationals were “patrolling” the rugged desert area of Peck Canyon at about 11:15 p.m. on Dec. 14 with the intent to “intentionally and forcibly assault” Border Patrol agents.

At least two of the Mexicans carried their assault rifles “at the ready position,” one of several details about the attack showing that Mexican smugglers are becoming more aggressive on the U.S. side of the border.

According to the indictment, the Mexicans were “patrolling the area in single-file formation” a dozen miles northwest of the border town of Nogales and — in the darkness of the Arizona night — opened fire on four Border Patrol agents after the agents identified themselves in Spanish as police officers.

Two AK-47 assault rifles found at the scene came from the failed Fast and Furious operation.

Imagine if some corrupt machine politician tried to keep in the dark a metropolitan police department on why politically appointed prosecutors were delaying justice for a mafioso cop-killer and sealing his records.  The cops – and the public – wouldn’t stand for it.  Neither should the Border Patrol and the American people.

H/T: Mark Hemingway at the Weekly Standard

November 16th, 2011 at 5:50 pm
Michelle Malkin Blasts Growing Siga Scandal

Michelle Malkin takes no prisoners with her analysis of the newest example of Obama’s crony capitalism gone wild.  As I wrote about yesterday, the $433 million taxpayer giveaway to the politically connected pharmaceutical firm Siga Technologies will rival the $535 debt incurred thanks to Solyndra going belly-up.  When you tack on an additional $115 billion in R&D the feds gave Siga to create the drug they’re selling to HHS, these two scandals combined have cost American taxpayers over $1 trillion.

When will any of the GOP presidential candidates make this a theme of their campaign?