Inverted domestic corporations ineligible in New Jersey

Introduced on Monday this New Jersey Bill would ban the award of state contracts to American companies that reincorporate abroad to avoid U.S. tax obligations (Assemblyman Troy Singleton, D-Burlington, sponsor of A3624).

Separate measures in the state Assembly and state Senate would leave inverted domestic corporations ineligible to receive state contracts or subcontracts for goods, services or construction projects. The bills, which also include S2361, define an “inverted domestic corporation” as “a corporation incorporated or previously incorporated in the United States that becomes or has become incorporated in a foreign country or that becomes or has become a subsidiary of a corporation incorporated in a foreign country, primarily for the purpose of avoiding United States taxes.”(Shirley Turner, D-Mercer, Sponsor S2361)

Both measures task the state Treasurer with determining whether a bidder meets that definition, which would include considering whether a corporate restructuring has slashed the company’s federal tax liability, whether the bulk of the company’s operations and assets are in the United States and whether U.S. shareholders own at least half of the company.

The sponsor of the Senate bill, Shirley Turner, D-Mercer, is among lawmakers who are advocating for related restrictions that Singleton suggested could form a comprehensive response on the part of the state to corporate inversions.

Turner is also sponsoring legislation, S2397 that would bar inverted companies from receiving state economic development grants and other financial aid. That includes the reimbursement of taxpayer-subsidized programs such as Medicaid, the lawmaker said Tuesday. Another Turner-sponsored bill, S2398, would bar the state from making pension fund investments in companies that have shifted their tax homes outside of the United States. Assembly members Bonnie Watson Coleman and Reed Gusciora, both Democrats who represent parts of Mercer County, are sponsoring identical measures in their house, as well as another bill blocking inverted companies from receiving state contracts, according to the Legislature’s website.

In recent weeks, several federal lawmakers have offered reform proposals — chief among them Sens. Dick Durbin, D-Ill., and Charles Schumer, D-N.Y., who want to limit so-called earnings stripping, where a U.S. subsidiary can take tax deductions on debt owed to a foreign master company, and Sen. Carl Levin, D-Mich., who wants a two-year moratorium on inversion deals.

On Sept. 8, U.S. Secretary of the Treasury Jacob Lew implored lawmakers to enact a retroactive ban on inversions and said his department will soon decide how to block the transactions.

Martin Milita is senior director with Duane Morris Government Strategies, a public policy consulting firm affiliated with the international law firm Duane Morris LLP. In addition to legislative, executive branch and grassroots lobbying, Martin Milita has successfully advised individuals and corporations on billions of dollars in public procurement’s.


But is this just a myth?

No one can deny that fracking holds enormous potential…

Experts estimate that this technique for harvesting natural gas from shale will add almost 50% to known recoverable natural gas resources and around 11% to known oil reserves around the world.

Fresh water, the most precious natural resource in the world, is a necessary component for fracking. Many scientists believe that we’re running out – something that would prove to be catastrophic. What’s perpetuating this idea of a water shortage is the fact that most shale plays are in very dry parts of the country. According to the Ceres Investor Network, of the 40,000 fracking operations put in place over the past three years, three quarters are located in areas where water is scarce, and nearly 55% are in areas experiencing drought. Fracking is particularly prevalent in California and Texas, the most water-challenged states in the country. While the drought in Texas isn’t as bad this year as it has been, California is on the verge of becoming a desert once again. Plus, fracking in Texas and other states is expected to double in the next five years, while aquifer levels in plays like the Eagle Ford formation in the southern part of the state have dropped by hundreds of feet over the past few years. Indeed, nearly 100 billion gallons of water are used annually for fracking operations, half of which is used in Texas alone. And that may seem like it’s a major strain on our water supply. What most people don’t realize, however, is that this pales in comparison to the trillions of gallons used for farming and personal needs. Farmers in places like California use more water than anywhere else in the country. The almond industry in that state alone uses a staggering 1.1 trillion gallons of water a year.

Since two of the major oil and gas fracking states also happen to be in the two most populous states in the United States – and those two states are also in a drought – water is becoming a concern.

This will play well for regions that are less populated, like the Bakken Shale in North Dakota, where the population of the entire state uses less water in a year than Manhattan. Recycling water is also an option, but the cost benefits are negligible compared to using fresh water.

Thus, water competition among farmers, residents, and the oil and gas industry will rise in the coming years, leading to higher production costs in the states that are most drought stricken.

Martin Milita joined Duane Morris Government Strategies, LLC, in 2012 as a senior director. In this role, Martin Milita has participated in a number of important public policy matters, including discussions involving hydraulic fracturing in New Jersey. Lawmakers in New Jersey have renewed their efforts toward mitigating environmental damage caused by the drilling process referred to as fracking. Also known as hydraulic fracturing, the practice of fracking involves drilling deep into the earth and releasing fluids to create cracks in shale rock, releasing the natural gases trapped inside. The large amount of water used during the fracking process is just one of the environmental issues that have been

“The Myth of the Rational Voter”

Economist Bryan Caplan offers a sobering assessment in his provocative book by the captioned name, arguing that voters continually elect politicians who either share their biases or else pretend to, resulting in bad policies winning again and again by popular demand. Calling into question our most basic assumptions about American politics, Caplan contends that democracy fails precisely because it does what voters want. Through an analysis of Americans’ voting behavior and opinions on a range of economic issues, he makes the convincing case that noneconomists suffer from four prevailing biases: they underestimate the wisdom of the market mechanism, distrust foreigners, undervalue the benefits of conserving labor, and pessimistically believe the economy is going from bad to worse. Caplan lays out several bold ways to make democratic government work better–for example, urging economic educators to focus on correcting popular misconceptions and recommending that democracies do less and let markets take up the slack.The greatest obstacle to sound economic policy is not entrenched special interests or rampant lobbying, but the popular misconceptions, irrational beliefs, and personal biases held by ordinary voters. 

The Myth of the Rational Voter takes a hard look at how people who vote under the influence of false beliefs ultimately end up with government that delivers lousy results. With the upcoming presidential election season drawing nearer, this thought-provoking book is sure to spark a long-overdo reappraisal of our elective system.

Martin Milita serves as a senior director of Duane Morris Government Strategies headquartered in Trenton, New Jersey and Washington DC. The company has represented a variety of Fortune 500 corporations and clients involved in the energy, insurance, financial, and other sectors. Martin Milita began in the legal profession as an aide to Edward “Pete” Biester, who represented Pennsylvania in the U.S. Congress. Martin Milita holds a law degree from the Temple University James E. Beasley School of Law, in Philadelphia. He is a member of the Administrative and Business Law Sections of the New Jersey State Bar Association and the Business Law Section of the American Bar Association. A graduate of King’s College, Martin Milita earned his undergraduate degree in Government.  


7 Challenges to writing an effective RFP proposal.

To write a proposal, you must meet seven demonstrable challenges. You cannot avoid them. You cannot skip any of them. You just have to face them.

1. Complying with the RFP. First you have to read it and understand it. Then you have to cross-reference all the requirements across the various sections. Even if your assignment is for a single section, there may be requirements in other sections that are relevant, especially the evaluation criteria. Achieving RFP compliance is part using the customer’s terminology and keywords, part cross-referencing, and part understanding their evaluation process. Cross-referencing can be tricky and often requires interpretation.

2. Writing is easy. Figuring out what to write about is harder. If you want to win, it’s important to avoid the temptation of starting from another proposal. Once you know what should go into the proposal, writing it is pretty straightforward. What we do is follow a process that quickly guides people through considering everything that should go into a proposal and sets them up with a plan for writing it.

3. Articulation.  Some people get stuck in the mechanics of putting the words together. They are not sure how it’s supposed to sound. We pay attention to style. But we pay more attention to whether it is simply descriptive or whether it says something that matters from the customer’s point of view. The most important thing to accomplish in proposal writing is to make it reflect the customer’s point of view. What the customer sees on the paper should provide answers to their questions, complete their evaluation process, and practically impel the conclusion that you are the best alternative. You have goals to accomplish, terminology from the RFP to use, and have to put it in the reader’s perspective instead of your own. That can be difficult, especially for people new to proposal writing. But when we review proposals, we often see problems in proposals written by people with many years of experience as well. We provide lots of guidance on every aspect of proposal writing to help people find their voice.

4. Figuring out what to offer. Whatever you do, don’t figure out what to offer by writing about it. This is a recipe for proposal disaster. Figuring out what to offer and figuring out what to write about should be done in parallel. Only after they have both been figured out and reviewed to ensure they aren’t likely to change should you start writing. Figuring out what to offer by writing about it does incredible damage to proposals. We have seen it cost companies hundreds of millions of dollars.

5. Articulating your bid strategies. The truth is the bid strategies for the proposal should be figured out before the writers ever get their assignments. Bid strategies should be just one of the ingredients that go into what you need to write. You must figure out the bid strategies before you start writing or designing your offering. The proposal should prove the bid strategies.

6. Passing the review. Most companies review their proposals before they finish them. Most companies do a poor job of conducting these reviews. The instructions to writers should reflect the same quality criteria that the reviewers will use. If you use a process to figure out what to write, then the plan it produces can also be used to increase the effectiveness of the review process. If writers are at the mercy of a completely unpredictable and subjective review process, the only way good can come from it is by luck.

7. Winning. If you start focusing on winning your proposals when the writing starts, you are too late. The pre-RFP stage is critical and driven by relationships with key decision makers, influencers, stake-holders and allies. You need to know them. We manage the pre-RFP stage like election campaigns. Know the answers to important questions and know your competition you’re your competitions strengths and weakness. The pre-RFP stage is when you really should be focused on winning. When you focus pre-RFP , you will realize that in order to incorporate what it will take to win into your plans for the proposal, you’ll need answers to questions that should have been asked before the RFP even came out.

Martin Milita is senior director with Duane Morris Government Strategies, a public policy consulting firm affiliated with the international law firm Duane Morris LLP. Martin Milita has successfully advised individuals and corporations on billions of dollars in public procurement’s.

Eliminating all welfare transfer programs with a cash grant to everyone age twenty-one or older

Charles Murray, a libertarian,  writes that America’s population is wealthier than any in history (In Our Hands: A Plan to Replace the Welfare State). Every year, the American government redistributes more than a trillion dollars of that wealth to provide for retirement, health care, and the alleviation of poverty. We still have millions of people without comfortable retirements, without adequate health care, and living in poverty. Only a government can spend so much money so ineffectually. The solution is to give the money to the people. This is the Plan, a radical new approach to social policy that defies any partisan label. Murray suggests eliminating all welfare transfer programs at the federal, state, and local levels and substituting an annual $10,000 cash grant to everyone age twenty-one or older. In Our Hands describes the financial feasibility of the Plan and its effects on retirement, health care, poverty, marriage and family, work, neighborhoods and civil society. For those who are aware In Our Hands? d0 you agree or disagree with many basic income advocates, and participation income advocates in particular, that a guaranteed minimum income could promote a resurgence of private and community-based initiatives to address complex social problems and challenges as Murray suggests?

Employed as senior director of Duane Morris Government Strategies, LLC, based in Trenton, New Jersey, Martin Milita advises clients on all forms of public policy. Prior to joining the firm in 2012, he served as managing partner of Holman Public Affairs, LLC, which he cofounded in 2001. Dedicating to helping others, Martin Milita donates his time outside of working hours to several charitable endeavors, one of which is The Civil War Trust, the largest battlefield preservation group in the country. The Civil War Trust, a Washington-based nonprofit group that has preserved 40,000 acres of land in 20 states recently acquired Robert E.Lee’s headquarters to preserve as part of the Gettysburg Historical battlefield- is one of the most important unprotected historic structures in America.


A panel from the Third Circuit Court of Appeals yesterday upheld a lower court’s decision to strike down a New Jersey law aimed at promoting new power generation facilities in the state. New Jersey’s Long Term Capacity Pilot Program Act guaranteed revenue to new generators by fixing rates – but the federal government has ‘exclusive control over interstate rates for wholesales of electric capacity,’ the judges wrote. “So when New Jersey arranged for LCAPP generators to receive preferential capacity rates, the state entered into a field of regulation beyond its authority,” wrote Judges Julio M. Fuentes and Patty Shwartz of the Third Circuit and Judge Lee H. Rosenthal of the Southern District of Texas, who was sitting on the case by special designation. The judges noted that they were not ruling on an argument that state laws are preempted ‘whenever a state’s legislation indirectly affects matters within FERC’s jurisdiction,’ adding: ‘By statute and tradition, states have a role to play in energy markets.

A member of the American Bar Association, Martin Milita is the senior director of Duane Morris Government Strategies LLC. Tackling all forms of government relations and public affairs, Martin Milita is an advocate for green energy and most recently has worked with PEW ENERGY TRUST on Grassroots renewable and sustainable energy campaigns.