The World According To Clarence Thomas And Ayn Rand
The Los Angeles Times highlights some of Justice Clarence Thomas’s more extreme solo opinions, most of which seem to be rooted in this: every year Thomas has his new clerks come to his home to watch a movie—”the 1949 film version of the classic of libertarian conservatism, Ayn Rand’s The Fountainhead.”
Explains a lot, and not just his willingness to be the only (often crazy) dissenter on key cases.
Among them, he has declared that the Constitution gives states a right to establish an official religion. Prisoners, he wrote, have no constitutional right to be protected from beatings by guards. Teenagers and students have no free-speech rights at all, he said in an opinion Monday, because in the 18th century, when the Constitution was written, parents had “absolute authority” over their children.Two years ago, the court ruled that a school official could not strip-search a 13-year-old girl to look for two extra-strength ibuprofen pills. Thomas — alone — dissented, calling the search of her underwear “reasonable and justified.”
Alone, he voted to strike down a key part of the Voting Rights Act that is credited with giving blacks political power in the South. And he was the lone justice to uphold the George W. Bush administration’s view that an American citizen could be held as an “enemy combatant” with no charges and no hearing….
“He is the most radical justice to serve on the court in decades,” said Erwin Chemerinsky, dean of the UC Irvine Law School and a liberal constitutional scholar. He “would change the law dramatically and give little weight to precedent. It’s easy to overlook how radical [he is] because his are usually sole opinions that do not get attention.”
He’s the Federalist Society’s dream Justice, a true “constitutional conservative.” Ed Kilgore writes about the radicalism of the movement in reference to Michele Bachmann, but it’s applicable here.
…[C]onstitutional conservatives think of America as a sort of ruined paradise, bestowed a perfect form of government by its wise Founders but gradually imperiled by the looting impulses of voters and politicians. In their backwards-looking vision, constitutional conservatives like to talk about the inalienable rights conferred by the Founders—not specifically in the Constitution, as a matter of fact, but in the Declaration of Independence, which is frequently and intentionally conflated with the Constitution as the part of the Founders’ design. It’s from the Declaration, for instance, that today’s conservatives derive their belief that “natural rights” (often interpreted to include quasi-absolute property rights or the prerogatives of the traditional family), as well as the “rights of the unborn,” were fundamental to the American political experiment and made immutable by their divine origin….The obvious utility of the label is that it hints at a far more radical agenda than meets the untrained eye, all the while elevating the proud bearer above the factional disputes of the conservative movement’s economic and cultural factions.
On the economic side of the coin, most mainstream politicians are not going to publicly say that the monstrosities they associate with ObamaCare, “redistribution of wealth,” or Keynesian stimulus techniques are rooted in their desire to reverse the New Deal, as well as a long chain of Supreme Court decisions that also happened to make possible the abolition of segregation. But many conservative activists actually think that way, and have in mind as their goal nothing so modest as a mere rollback of federal social programs to the levels of the Bush or even the Reagan administration. Bachmann and other candidates can talk to most voters as though they are simply trying to defend America from a vast overreach by the 44th president. But to the radicalized conservative base that dominates contests like the Iowa Caucuses, the constitutional conservative label hints broadly at a more audacious agenda ultimately aimed at bringing back the lost American Eden of the 1920s, if not an earlier era.
It’s an interesting concept for Thomas to align with, given that he would have been considered only 3/5ths of a man “in the 18th century, when the Constitution was written.” Or perhaps he’s interpreting it as three out of five African-Americans being counted, and assuming he’d of course be among the three. Of course, if we returned to his preferred era of governance, he could be in prison on the basis of his marriage alone. And it’s a pretty safe bet, had so many of the laws he has dissented from so strenuously not been passed and upheld, the last place he’d find himself now is on a seat in the highest court of the land.
All of which would only be an interesting quirk of Thomas’s personality if he weren’t part of an increasingly extreme majority on the court, manifesting this hard-right, highly corporatist, and dangerous philosophy. That he’s guided by Ayn Rand should be enough to put his place on the court in question, if his ethical lapses alone weren’t enough to do so.
By: Joan McCarter, Daily Kos, July 5, 2011
Taxes and Billionaires: The “Carried Interest” Loophole Has To Go
The House speaker, John Boehner, suggests that the Republican threat of letting the United States default on its debts is driven by concern for jobs for ordinary Americans.
“We cannot miss this opportunity,” he told Fox News. “If we want jobs to come to America, we’ve got to give American businesspeople the confidence to invest in our economy.”
So take a look at one of the tax loopholes that Congressional Republicans are refusing to close — even if the cost is that America’s credit rating blows up. This loophole has nothing to do with creating jobs and everything to do with protecting some of America’s wealthiest financiers.
If there were an award for Most Unconscionable Tax Loophole, this one would win grand prize.
Wait, wake up! I know that “tax policy” makes one’s eyes glaze over, but that’s how financiers have gotten away with paying a lower tax rate than their chauffeurs or personal trainers. Tycoons have bet for years that the public is too stupid or distracted to note that in many cases they’re paying just a 15 percent tax rate.
What’s at stake is the “carried interest” loophole, and President Obama is pushing to close it. The White House estimates that this would raise $20 billion over a decade. But Congressional Republicans walked out of budget talks rather than discuss raising revenues from measures such as this one.
The biggest threat to the United States this summer probably doesn’t come from Iran or Libya but from the home-grown risk that the nation will default on its debts. We don’t know the economic consequences for America or the world, and some of the hand-wringing may be overblown — or maybe not — but it’s reckless of Republicans even to toy with such a threat.
This carried interest loophole benefits managers of financial partnerships such as hedge funds, private equity funds, venture capital funds and real estate funds — who are among the highest-paid people in the world. John Paulson, a hedge fund manager in New York City, made $4.9 billion last year, top of the chart for hedge fund managers, according to AR Magazine, which follows hedge funds. That’s equivalent to the average per capita income of 184,000 Americans, according to my back-of-envelope calculations based on Census Bureau figures.
Mr. Paulson declined to comment on this tax break, but here’s how it works. These fund managers are compensated mostly with a performance bonus of 20 percent or more of the profits they make. Under this carried interest loophole, that 20 percent is eligible to be taxed at the long-term capital gains rate (if the fund’s underlying assets are held long enough) of just 15 percent rather than the regular personal income rate of 35 percent.
This tax loophole is also intellectually vacuous. The performance fee is a return on the manager’s labor, not his or her capital, so there’s no reason to give it preferential capital gains treatment.
“The carried interest loophole represents everyone’s worst fear about the tax system — that the rich and powerful get away with murder,” says Victor Fleischer, a law professor at the University of Colorado, Boulder, who has written about the issue. “Closing the loophole won’t fix the budget by itself, but it gets us one step closer to justice.”
At a time when the richest 1 percent of Americans have a greater collective net worth than the entire bottom 90 percent, there are other ways we could raise money while also making tax policy more equitable. The White House is backing some of them in its negotiations with Congress, but others aren’t even in play.
One important proposal has to do with founder’s stock, the shares people own in companies they found. Professor Fleischer has written an interesting paper persuasively arguing that founder’s stock is hugely undertaxed. It, too, is essentially a return on labor, not capital, and shouldn’t benefit from the low capital gains rate.
Likewise, Europe is moving toward a financial transactions tax on trades made in financial markets. That is something long championed by some economists — especially James Tobin, who won a Nobel Prize for his work — and it would also raise tens of billions of dollars at a time when it is desperately needed. It makes sense.
The larger question is this: Do we try to balance budget deficits just by cutting antipoverty initiatives, college scholarships and other investments in young people and our future? Or do we also seek tax increases from those best able to afford them?
And when Congressional Republicans claim that the reason for their recalcitrance in budget negotiations is concern for the welfare of ordinary Americans, look more closely. Do we really want to close down the American government and risk another global financial crisis to protect the tax bills of billionaires?
By: Nicholas Kristoff, Op-Ed Columnist, The New York Times, July 6, 2011
“You Talkin’ To Me?”: Obama Calls The GOP’s Bluff
Here’s how to negotiate, GOP-style: Begin by making outrageous demands. Bully your opponents into giving you almost all of what you want. Rather than accept the deal, add a host of radical new demands. Observe casually that you wouldn’t want anything bad to happen to the hostage you’ve taken — the nation’s well-being. To the extent possible, look and sound like Jack Nicholson in “The Shining.”
This strategy has worked so well for Republicans that it’s no surprise they’re using it again, this time in the unnecessary fight over what should be a routine increase in the debt ceiling. This time, however, something different is happening: President Obama seems to be channeling Robert De Niro in “Taxi Driver.” At a news conference last Wednesday, Obama’s response to the GOP was, essentially, “You talkin’ to me?”
Obama’s in-your-face attitude seems to have thrown Republicans off their stride. They thought all they had to do was convince everyone they were crazy enough to force an unthinkable default on the nation’s financial obligations. Now they have to wonder if Obama is crazy enough to let them.
He probably isn’t. But the White House has kept up the pressure, asserting that the real deadline for action by Congress to avoid a default isn’t Aug. 2, as the Treasury Department said, but July 22; it takes time to write the needed legislation, officials explained. Tick, tick, tick . . .
“Malia and Sasha generally finish their homework a day ahead of time,” Obama said, gratuitously — but effectively — comparing his daughters’ industry with congressional sloth. “It is impressive. They don’t wait until the night before. They’re not pulling all-nighters. They’re 13 and 10. Congress can do the same thing. If you know you’ve got to do something, just do it.”
Obama’s pushing and poking are aimed at Republicans who control the House, and what he wants them to “just do” is abandon the uncompromising position that any debt-ceiling deal has to include big, painful budget cuts but not a single cent of new tax revenue.
The president demands that Congress also eliminate “tax breaks for millionaires and billionaires . . . oil companies and hedge fund managers and corporate jet owners.” Without these modest increases in revenue, he says, the government will have to cut funding for medical research, food inspection and the National Weather Service. Also, presumably, whatever federal support goes to puppies and apple pie.
In truth, some non-millionaires who never fly on corporate jets would also lose tax breaks under the president’s proposal. And it’s hard to believe that the first thing the government would do, if Congress provides no new revenue, is stop testing ground beef for bacteria. But Obama is right that the cuts would be draconian — and he’s right to insist that House Republicans face reality.
My view, for what it’s worth, is that now is the wrong time for spending cuts or tax increases — that it’s ridiculous to do anything that might slow the lumbering economic recovery, even marginally. But if there have to be cuts, then Republicans must be forced to move off the no-new-revenue line they have drawn in the sand.
Even if they move just an inch, the nation’s prospects become much brighter. This fight is that important.
Every independent, bipartisan, blue-ribbon panel that has looked at the deficit problem has reached the same conclusion: The gap between spending and revenue is much too big to be closed by budget cuts alone. With fervent conviction but zero evidence, Tea Party Republicans believe otherwise — and Establishment Republicans, who know better, are afraid to contradict them.
The difficult work of putting the federal government on sound fiscal footing can’t begin as long as a majority in the House rejects simple arithmetic on ideological grounds.
“I’ve met with the leaders multiple times,” Obama said, referring to House Speaker John Boehner and Senate Minority Leader Mitch McConnell. “At a certain point, they need to do their job.” The job he means is welcoming fantasy-loving Republicans to the real world, and it has to be done.
The stakes are perilously high, but Obama does have a doomsday option: If all else fails, he can assert that a section of the 14th Amendment — “The validity of the public debt of the United States, authorized by law . . . shall not be questioned” — makes the debt limit unconstitutional and instructs him to take any measures necessary to avoid default.
Maybe that’s why, in this stare-down, the president doesn’t seem inclined to blink.
By: Eugene Robinson, Opinion Writer, The Washington Post, July 4, 2011
“We Hold These Truths To Be Self Evident”: Real Patriots Pay Taxes
Some of our nation’s biggest corporations are planning a tax holiday and they want you to pick up the tab.
Actually, you already pay for their routine tax avoidance through the use of tax havens in Bermuda, the Cayman Islands and elsewhere. These accounting acrobatics cost the U.S. Treasury $100 billion a year. Now they want Congress to pass a special tax holiday for money they “repatriate” back to the United States.
There’s nothing patriotic about this repatriation being pushed by Google, Cisco, Pfizer and other companies in the Win America campaign. To sell the tax holiday, they claim it will produce a burst of jobs and investment. In fact, Congress passed a “one-time-only” tax holiday in 2004 with similar promises. Instead, it produced a burst of shareholder dividends and stock buybacks, which goosed the pay of CEOs.
Corporations laid off workers and shifted even more income and investment to offshore tax havens in the wake of the 2004 tax holiday.
“Why should we reward firms for successfully gaming the tax system when we in turn are called on to make up the missing tax revenues?” Edward Kleinbard, former chief of staff of Congress’s Joint Committee on Taxation, told Bloomberg. “Much of these earnings overseas are reaped from an enormous shell game: Firms move their taxable income from the U.S. and other major economies — where their customers and key employees are in reality located — to tax havens.”
A favorite accounting trick is transferring a patent from the U.S. parent company to a subsidiary — often a shell company — in a tax haven. Profits from the patent go largely untaxed offshore while the costs of development, marketing and management remain in the U.S., where they are taken as tax deductions.
Pfizer was the largest beneficiary of the last tax holiday, bringing $37 billion back to the United States and paying just $1.7 billion in federal corporate income taxes. It laid off 10,000 American workers in the following months. The U.S. is the world’s most profitable drug market and yet over the last three years, Pfizer — maker of Lipitor, Viagra and much more — has reported $7.9 billion in U.S. losses while claiming $37.8 billion in profits in the rest of the world. Pfizer, like the rest of Big Pharma, is heavily subsidized by taxpayer-funded research at the National Institutes of Health and elsewhere. It should not be rewarded with another tax holiday.
Bloomberg reported that “Google reduced its income taxes by $3.1 billion over three years by shifting income to Ireland, then the Netherlands, and ultimately to Bermuda.” What a corporate ingrate. Google would not exist without the Internet, and the Internet grew out of U.S. government research beginning in the 1960s. In the 1990s, the U.S. National Science Foundation funded the Digital Library Initiative research at Stanford University that Larry Page and Sergey Brin, now billionaires, developed into Google. Brin was also supported by an NSF graduate student fellowship.
Increasingly, U.S. multinational corporations want to benefit from government spending on education, infrastructure, research, health care and so on without paying for it. Today, large corporations pay, on average, 18 percent of their profits in federal income taxes and as a group contribute just 9 percent toward federal government bills, down from 32 percent in 1952. The Congressional Joint Committee on Taxation says a new tax holiday would cost $79 billion.
A dozen national and state business organizations led by Business for Shared Prosperity recently wrote members of Congress urging them to oppose the tax holiday. The letter said, “When powerful large U.S. corporations avoid their fair share of taxes, they undermine U.S. competitiveness, contribute to the national debt and shift more of the tax burden to domestic businesses, especially small businesses that create most of the new jobs.”
There is no excuse for repeating a policy that’s a proven failure. It would be even worse this time around, as corporations would redouble their efforts to shift profits overseas in anticipation of the next tax holiday. Congress should close the tax loopholes that reward companies for transferring U.S. profits, jobs and investment abroad — not encourage them.
Real patriots pay their fair share of taxes. They don’t run out on the bill.
By: Holly Sklar and Scott Klinger, CommonDreams.org, July 4, 2011
“In The Course Of Human Events”: The Declaration Of Interdependence
When, in the course of human events, it becomes necessary for one people to dissolve the political bonds which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness.
Okay, the Declaration of Interdependence sounds a lot like the Declaration of Independence.
By saying that it is a self-evident truth that all humans are created equal and that our inalienable rights include life, liberty, and the pursuit of happiness, our Founding Fathers were telling us that we are all in this together, that we are interdependent, that we have a moral duty to protect these inalienable rights for all humans. President Lincoln, perhaps above all others, was instrumental in making clear that the second sentence of the Declaration was “a moral standard for which the United States should strive,” as Wikipedia puts it.
The double appeal to “Nature” — including the explicit appeal to “the laws of Nature” in the first sentence — is particularly salient. For masters of rhetoric like the authors of the Declaration, a repeated word, especially in an opening sentence, is repeated for the singular purpose of drawing attention to it (see “Why scientists aren’t more persuasive, Part 1“).
Yes, the phrase “laws of nature” meant something different to Jefferson than it does to us (see here). But as a living document, and as a modern Declaration of Interdependence, the words have grown in meaning.
It is the laws of Nature, studied and enumerated by scientists, that make clear we are poised to render those unalienable rights all but unattainable for billions of humans on our current path of unrestricted greenhouse gas emissions. It is the laws of Nature that make clear Americans can’t achieve sustainable prosperity if the rest of the world doesn’t, and vice versa.
Ironically — or perhaps intentionally — the toughest inalienable right to maintain is “the pursuit of happiness.” Certainly, the catastrophic global warming we know we face (thanks to our understanding of the laws of nature) threatens life and liberty (see “Memorial Day, 2030“).
But if we keep listening to the deniers and delayers, if we fail to sharply reverse our current emissions path nationally and globally, then we are headed toward 5°C (9°F) planetary warming by century’s end and 850+ ppm — with sea level rise of 4 to 6 feet or higher, rising perhaps a foot a decade or more for centuries, the U.S. Southwest and one third of the Earth’s habited land a permanent Dust Bowl, half or more species extinct, and much of the ocean a hot, acidic dead zone (see “Intro to global warming impacts: Hell and High Water“).
Not bloody many people will be pursuing “happiness” under those conditions. They will be desperately trying to avoid misery, when they aren’t cursing our names for betraying our moral values.
If we don’t aggressively embrace the clean energy transition starting immediately with the climate bill in front of Congress — and help lead the entire world to a similar transition — then the Ponzi scheme we call the global economy will probably be in some stage of obvious collapse by our 250th anniversary, July 4, 2026.
That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.
And so “happiness” is repeated also, underscoring its importance to the Founders. “Life” and “Liberty” are really the very minimum we owe our fellow humans. We have a moral obligation to work toward freedom from want and care for all.
The party of Lincoln has, tragically, abandoned the values embraced and articulated by its greatest thinker and rhetorician — and those embraced and articulated by our Founders in the Declaration see (WashPost: “The GOPs climate-change denial may be its most harmful delusion”).
When is the last time a major conservative politician ever talked about “a decent respect to the opinions of mankind” except to mock the entire notion (see Gingrich sums up GOP ethos: “I am not a citizen of the world! I think the entire concept is intellectual nonsense and stunningly dangerous”).
We live in unique times. We must all hang together or we will surely all hang separately.
Happy Interdependence Day Century!
By: Joe Romm, Think Progress, July 4, 2011
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