“Territorial Tax System”: CEO’s Of Tax Dodging Corporations Push Congress To Cut Corporate Tax Rates
Several corporate CEOs representing the Business Roundtable, a lobbying group, were on Capitol Hill today to unveil a set of measures that they claim will boost the economy. Not surprisingly, some of the high-profile items are a cut in the corporate tax rateand shifting to what’s known as a territorial tax system:
Fresh out of a meeting with members of the Blue Dog Coalition, dozens of CEOs in town for a series of Business Roundtable policy and lobbying meetings today unveiled proposals to boost the economy.
The plan, billed as “Taking Action for America,” calls for a balanced federal budget, a reform of federal regulations and a lower corporate tax rate based on a territorial tax system, among others.
A territorial system, as well as cutting the corporate tax rate without raising more corporate tax revenue, are both misguided proposals. But the interesting thing about these particular CEOs pushing this particular policy prescription is that several of them already run corporations that pay little to nothing in taxes.
For instance, Boeing CEO Jim McNerny is part of the group calling for corporate tax cuts, despite the fact that his company has a negative federal tax rate for the last decade. Only twice in the last ten years has Boeing had federal tax liability in a given year, and between 2008 and 2010, the company made $9 billion in profits without paying any federal corporate income tax.
Andrew Liveris, president and CEO of the Dow Chemical, also joined the lobbying party, even though his company received nearly half a billion dollars in tax refunds in 2010. Proctor & Gamble’s CEO also participated, while heading a company very fond of exploiting loopholes to avoid taxes.
Corporate tax rates are already at a 40 year low. As billionaire investor Warren Buffett explained, “it is a myth that American corporations are paying 35 percent or anything like it…Corporate taxes are not strangling American competitiveness.” Yet corporate CEOs whose companies already pay literally nothing think driving rates down further is the answer to boosting the economy.
By: Pat Garofalo, Think Progress, March 7, 2012
“False Faith”: Did Justice Scalia Call All Non-Christians Irrational?
Last Sunday, conservative Justice Antonin Scalia addressed the Living the Catholic Faith Conference conference in Denver, Colorado. During his speech, however, the justice appeared to suggest that Jews, Muslims and other non-Christians are somehow less rationalthan people who share his faith:
In Washington, Scalia said, the pundits and media couldn’t believe in a miracle performed under their noses.
“My point is not that reason and intellect need to be laid aside,” Scalia said. “A faith without a rational basis should be laid aside as false. … What is irrational is to reject a priori the possibility of miracles in general and the resurrection of Jesus Christ in particular.”
“A priori” is a philosophical term which is usually used to refer to a claim that one has knowledge independent of experience, so it is unclear how anyone could reject the central Christian belief that Jesus Christ was resurrected from the dead under Scalia’s standard given that no living person was around to actually experience it. More importantly, though, the clear implication of Scalia’s statement appears to be than all non-Christians — or approximately two-thirds of the world’s population — are “irrational.”
If Scalia indeed holds this view, than it raises serious questions about whether he can set aside this belief when called upon to interpret a Constitution that requires all religious beliefs to be treated with equal dignity. Moreover, it could have profound implications for the burgeoning debate over whether the Obama Administration’s contraceptive access rules are upheld by the Supreme Court.
In 1990, Scalia wrote the seminal Supreme Court case interpreting the Constitution’s guarantee that all Americans can freely exercise their faith, Employment Div. v. Smith. In Smith, Scalia explained that a law does not suddenly become unconstitutional because someone raises a religious objection to it. Scalia explained that “the right of free exercise does not relieve an individual of the obligation to comply with a ‘valid and neutral law of general applicability on the ground that the law proscribes (or prescribes) conduct that his religion prescribes (or proscribes).’” This is why a law ensuring access to contraception is constitutional even if several Catholic bishops object to it.
Smith, however, did not involve Christians — it involved members of a Native American faith that wanted to use the drug peyote in a sacred ritual even though that drug was banned. Hopefully, Scalia recognizes that the rule he announced in Smith must apply equally to faiths he views as “rational” and those he also may view as “irrational.”
By: Ian Millhiser, Think Progress, March 7, 2012
“Who’s Sorry Now?”: The Republican Art Of The Non-Apology
Ralph Reed reached out to Rush Limbaugh via Twitter yesterday and accepted his apology. “Apology accepted. Let’s move on,” he said — a magnanimous gesture had Rush Limbaugh actually apologized to Ralph Reed. Too bad that, despite the too-quick headlines, Limbaugh not only hadn’t apologized to Reed — he hadn’t really apologized to anyone at all.
Instead, Reed and Limbaugh, with the backing of Mitt Romney and Rick Santorum, started up the ole vast right-wing fake apology machine — designed to temporarily quell a too-hot controversy while at the same time not giving an inch.
Unfortunately for them, after too much use of the fake apology, people are catching on.
Although considered by some in the GOP to be a little too rough around the edges, Rush Limbaugh has always been considered a net asset to Republicans. Like fellow right-wing shock-jocks Glenn Beck and Bryan Fischer, he reaches a wide audience with toxic sludge that is ultimately helpful to the Republican Party, saying all the things that fire up the right-wing base, but that the politicians wouldn’t want to be caught saying themselves. But Limbaugh has a peculiar kind of power — no matter how outrageous his comments, members of the establishment Right tiptoe around him, afraid that his toxic words might one day be directed at them. George Will said it best: “They want to bomb Iran, but they’re afraid of Rush Limbaugh.”
The latest boot-up of the right-wing apology machine began when Limbaugh called Georgetown University law student and contraception coverage advocate Sandra Fluke a “slut,” saying “She wants to be paid to have sex.” And, as if contraception was sold by the gallon or the pound, he added, “She’s having so much sex she can’t afford the contraception.”
President Obama immediately stepped up, calling Fluke to check in and encourage her after she had been smeared on national radio.
Rick Santorum, in contrast, called Limbaugh’s comments “absurd,” but then reasoned that “an entertainer can be absurd… He’s in a very different business than I am.”
Mitt Romney’s response was flimsier and even more timid. Asked about it while shaking hands at a rally, he said that it was “not the language I would have used.” Apparently, he had no problem with Limbaugh saying that birth control advocates want the government to pay for them to have sex. He would just use different words.
Finally, Limbaugh himself fake-apologized. “I chose the wrong words in my analogy of the situation. I did not mean a personal attack on Ms. Fluke,” he said — before blaming the left and going on to repeat his accusation that she was “discussing personal sexual recreational activities before members of Congress.”
“I wouldn’t have use those words” is the new “I apologize if anyone was offended.”
Ms. Fluke did not accept Limbaugh’s fake-apology. Ralph Reed, however, accepted it on her behalf.
Republican leaders can’t be responsible for everything that comes out of the mouths of every right-wing blowhard. But if they want to be president they can be expected to provide clear responses when comments like Limbaugh’s are this outrageous, instead of hiding their heads in the sand hoping that the public exposure of these outrages will go away. How hard is it to say that women who advocate for insurance coverage for contraceptives should be heard and shouldn’t be called prostitutes for stating their position on the topic? Is it really worth compromising basic decency to stay in the good graces of Rush Limbaugh?
The Republican Party is increasingly buoyed by a small base whose values are antithetical to those of most other Americans. If they want to survive politically, they are going to have to stand up and no longer be fake apologists for the likes of Rush Limbaugh.
By: Michael B. Keegan, The Huffington Post, March 6, 2012
Why Rising Gas Prices Could Backfire On The GOP In November
Eight months before the fall elections, Republican strategists are in a dour mood.
-The economy has begun to gain traction.
-Their leading candidate for president, Mitt Romney, is universally viewed as an uninspiring poster child for the one percent, with no core values anyone can point to except his own desire to be elected.
-Every time Romney tries to “identify” with ordinary people he says something entirely inappropriate about his wife’s “two Cadillacs,” how much he likes to fire people who provide him services, or how he is a buddy with the people who own NASCAR teams rather than the people who watch them.
-The polls show that the more people learn about Romney, the less they like him. The Republican primary road show doesn’t appear to be coming to a close any time soon.
-Together, Bob Kerrey’s announcement that he will get into the Senate contest in Nebraska and the news that Olympia Snowe is retiring from the Senate in Maine, massively increase Democratic odds of holding onto the control of the Senate.
-The Congress is viewed positively by fewer voters than at any time in modern history — and two-thirds think the Republicans are completely in charge.
-Worse yet, the polling in most presidential battleground states currently gives President Obama leads over Mitt Romney and Rick Santorum.
The one thing Republican political pros are cheering right now is the rapidly increasing price of gas at the pump and the underlying cost of oil.
The conventional wisdom holds that if gas prices increase, it will inevitably chip away at support for President Obama — and there is a good case to be made. After all, increased gas prices could siphon billions out of the pockets of consumers that they would otherwise spend on the goods and services that could help continue the economic recovery — which is critical to the president’s re-election.
But Republicans shouldn’t be so quick to lick their chops at the prospect of rising gas prices.
Here’s why:
1). What you see, everybody sees.
The sight of Republicans rooting against America and hoping that rising gas prices will derail the economic recovery is not pretty.
The fact is that Republicans have done everything in their power to block President Obama’s job-creating proposals in Congress, and they were dragged kicking and screaming to support the extension of the president’s payroll tax holiday that was critical to continuing economic momentum.
Senate Majority Leader Mitch McConnell actually announced that his caucus’ number one priority this term was the defeat of President Obama. The sight of Republicans salivating at the prospect of $4-plus per gallon gasoline will not sit well with ordinary voters.
2). Democrats have shown that they are more than willing to make the case about who is actually responsible for rising gas prices — and the culprits’ footprints lead right back to the GOP’s front door.
Who is really to blame for higher gas prices?
-The big oil companies that are doing everything they can to keep oil scarce and the price high;
-Speculators that drive up the price in the short run;
-Foreign conflicts, dictators and cartels — that have been important in driving up prices particularly in the last two months;
-The Republicans who prevent the development of the clean, domestic sources of energy that are necessary to allow America to free itself from the stranglehold of foreign oil — all in order to benefit speculators and oil companies.
The fact is that the world will inevitably experience increasing oil prices over the long run because this finite, non-renewable resource is getting scarcer and scarcer at the same time that demand for energy from the emerging economies like China and India is sky rocketing.
Every voter with a modicum of experience in real-world economics gets that central economic fact.
That would make Republican opposition to the development of renewable energy sources bad enough. But over the last few months the factor chiefly responsible for short-term oil price hikes have been the Arab Spring and Israel’s growing tensions with Iran — all of which are well beyond direct American control.
But with only 2% of the world’s oil reserves, any idiot knows we can’t make ourselves materially more energy independent solely by drilling for more domestic oil. In fact, it is obvious that to have any hope of controlling the prices we pay for energy in the future, we must free ourselves from the dependence on oil in general and foreign oil in particular.
We need an emergency “all of the above” energy independence program that accesses all of the domestic sources of oil that can be developed in an environmentally safe way – plus a major investment in renewable, clean energy sources that free us from dependence on oil – and especially foreign oil.
President Obama has proposed a big first step in exactly that direction, and the Republicans have answered: “Hell no — drill baby drill.”
If they are forcefully challenged by Democrats this year — as I believe they will — that Republican position is simply laughable.
Domestic drilling has increased substantially under President Obama’s administration. And our dependence on foreign oil imports has gone down every year of his presidency. The president has put in place new mileage standards for cars that will save massive amounts of potential oil imports — standards that Republicans have opposed for decades.
But that fact remains, that for all his administration can do on its own to increase energy independence, it is impossible to free America from the stranglehold of foreign oil dependency without the kind of massive national commitment to domestic, renewable energy that must be passed by Congress. The Republicans have said “no” because their biggest energy patrons — the oil companies — oppose a crash program to create renewable energy sources for one simple reason. Every day that we fail to act, the value of their oil goes up — it’s that simple.
If you doubt that Mitt Romney and the Republicans are bought and paid for by Big Oil — just ask the infamous Koch brothers — who finance major Republican “super Pacs” — how much they stand to make personally every time the long-term price of a barrel of oil increases by another dollar.
Simply put, the Republicans have put the profits of their patrons in Big Oil well above the economic and national security interests of the United States of America.
The Republicans even continue to do everything in their power to block the elimination of the astonishing taxpayer subsidy of the oil industry, that continues notwithstanding the fact that big oil companies are more profitable today than any other companies in the history of humanity. And the Republicans do it all the while they blather on about how if we once again install them in the White House, they will bring us $2 a gallon gasoline.
Whoever is pushing those kinds of lines must be studying the techniques of the late, famous circus impresario, P.T. Barnum, who famously said, “There’s a sucker born every minute.”
But in fact, polling shows that American voters simply are not so gullible that they buy either of these preposterous positions.
3). Speculators.
A final contributing factor that has recently amplified increases in gas and oil prices is the role of speculators.
In a purely competitive market, oil prices should settle in the long run at the marginal cost of producing the next barrel of oil — currently between $60 and $70 a barrel. Oil closed last week at about $106 per barrel and ran up to twice the marginal cost of production during the Bush era 2008 oil spike.
Currently about 80% of positions on oil commodity markets are held by “pure speculators” — who bet on changes in oil prices — rather than “end users” who actually consume oil and use the markets to hedge against price increases.
Academic studies have demonstrated that there is a big speculative premium in oil prices, above and beyond any “risk premium” that might normally develop from fear of some immediate, short-term shortage. That speculative premium could be materially dampened if steps were taken to limit the market’s domination by pure speculators.
The Dodd-Frank Wall Street reform bill — which was opposed by most Republicans in Congress and all of their presidential candidates — allows the Commodities Futures Trading Commission to limit the percentage of market positions held by pure speculators as opposed to end users.
Already the CTFC has position limits on the percentage of positions that can be held by individual companies or investors to prevent one from cornering the market. Many economists have proposed imposing similar position limits on pure speculators as a class.
Ordinary voters don’t like speculators. But far from supporting limits on speculation, Mitt Romney wants to go back to the “good old days of yesteryear” where wild, unbridled speculation led to the worst economic collapse in 60 years and costs eight million Americans their jobs.
None of this is good politics for Republicans.
Voters don’t want to be held hostage by the big oil companies or foreign oil. They don’t want to have their pockets picked by oil market speculators. They understand that when world oil prices go up, it benefits oil-state dictators: it’s like allowing Iran’s Ahmadinejad to levy a tax on American consumers. And voters sure as hell don’t want to pay a taxpayer subsidy to oil companies like Exxon that made more in profits in one minute last year (about $85,000) than the average American worker earns all year long.
If Republican strategists think they can reverse their fortunes by focusing on the gas price debate, the odds are good they will be wrong.
By: Robert Creamer, The Huffington Post, March 6, 2012
“The Philosophy Of A Psychopath”: How Ayn Rand Became The New Right’s Version Of Marx
It has a fair claim to be the ugliest philosophy the postwar world has produced. Selfishness, it contends, is good, altruism evil, empathy and compassion are irrational and destructive. The poor deserve to die; the rich deserve unmediated power. It has already been tested, and has failed spectacularly and catastrophically. Yet the belief system constructed by Ayn Rand, who died 30 years ago today, has never been more popular or influential.
Rand was a Russian from a prosperous family who emigrated to the United States. Through her novels (such as Atlas Shrugged) and her nonfiction (such as The Virtue of Selfishness) she explained a philosophy she called Objectivism. This holds that the only moral course is pure self-interest. We owe nothing, she insists, to anyone, even to members of our own families. She described the poor and weak as “refuse” and “parasites”, and excoriated anyone seeking to assist them. Apart from the police, the courts and the armed forces, there should be no role for government: no social security, no public health or education, no public infrastructure or transport, no fire service, no regulations, no income tax.
Atlas Shrugged, published in 1957, depicts a United States crippled by government intervention in which heroic millionaires struggle against a nation of spongers. The millionaires, whom she portrays as Atlas holding the world aloft, withdraw their labour, with the result that the nation collapses. It is rescued, through unregulated greed and selfishness, by one of the heroic plutocrats, John Galt.
The poor die like flies as a result of government programmes and their own sloth and fecklessness. Those who try to help them are gassed. In a notorious passage, she argues that all the passengers in a train filled with poisoned fumes deserved their fate. One, for instance, was a teacher who taught children to be team players; one was a mother married to a civil servant, who cared for her children; one was a housewife “who believed that she had the right to elect politicians, of whom she knew nothing”.
Rand’s is the philosophy of the psychopath, a misanthropic fantasy of cruelty, revenge and greed. Yet, as Gary Weiss shows in his new book, Ayn Rand Nation, she has become to the new right what Karl Marx once was to the left: a demigod at the head of a chiliastic cult. Almost one third of Americans, according to a recent poll, have read Atlas Shrugged, and it now sells hundreds of thousands of copies every year.
Ignoring Rand’s evangelical atheism, the Tea Party movement has taken her to its heart. No rally of theirs is complete without placards reading “Who is John Galt?” and “Rand was right”. Rand, Weiss argues, provides the unifying ideology which has “distilled vague anger and unhappiness into a sense of purpose”. She is energetically promoted by the broadcasters Glenn Beck, Rush Limbaugh and Rick Santelli. She is the guiding spirit of the Republicans in Congress.
Like all philosophies, Objectivism is absorbed, secondhand, by people who have never read it. I believe it is making itself felt on this side of the Atlantic: in the clamorous new demands to remove the 50p tax band for the very rich, for instance; or among the sneering, jeering bloggers who write for the Telegraph and the Spectator, mocking compassion and empathy, attacking efforts to make the word a kinder place.
It is not hard to see why Rand appeals to billionaires. She offers them something that is crucial to every successful political movement: a sense of victimhood. She tells them that they are parasitised by the ungrateful poor and oppressed by intrusive, controlling governments.
It is harder to see what it gives the ordinary teabaggers, who would suffer grievously from a withdrawal of government. But such is the degree of misinformation which saturates this movement and so prevalent in the US is Willy Loman syndrome (the gulf between reality and expectations) that millions blithely volunteer themselves as billionaires’ doormats. I wonder how many would continue to worship at the shrine of Ayn Rand if they knew that towards the end of her life she signed on for both Medicare and social security. She had railed furiously against both programmes, as they represented everything she despised about the intrusive state. Her belief system was no match for the realities of age and ill health.
But they have a still more powerful reason to reject her philosophy: as Adam Curtis’s BBC documentary showed last year, the most devoted member of her inner circle was Alan Greenspan, former head of the US Federal Reserve. Among the essays he wrote for Rand were those published in a book he co-edited with her called Capitalism: the Unknown Ideal. Here, starkly explained, you’ll find the philosophy he brought into government. There is no need for the regulation of business – even builders or Big Pharma – he argued, as “the ‘greed’ of the businessman or, more appropriately, his profit-seeking … is the unexcelled protector of the consumer”. As for bankers, their need to win the trust of their clients guarantees that they will act with honour and integrity. Unregulated capitalism, he maintains, is a “superlatively moral system”.
Once in government, Greenspan applied his guru’s philosophy to the letter, cutting taxes for the rich, repealing the laws constraining banks, refusing to regulate the predatory lending and the derivatives trading which eventually brought the system down. Much of this is already documented, but Weiss shows that in the US, Greenspan has successfully airbrushed history.
Despite the many years he spent at her side, despite his previous admission that it was Rand who persuaded him that “capitalism is not only efficient and practical but also moral”, he mentioned her in his memoirs only to suggest that it was a youthful indiscretion – and this, it seems, is now the official version. Weiss presents powerful evidence that even today Greenspan remains her loyal disciple, having renounced his partial admission of failure to Congress.
Saturated in her philosophy, the new right on both sides of the Atlantic continues to demand the rollback of the state, even as the wreckage of that policy lies all around. The poor go down, the ultra-rich survive and prosper. Ayn Rand would have approved.
By: George Monbiot, The Guardian, March 5, 2012
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