“Bemoaning Their Hardship”: The Billionaire Obama Hate Club Up In Arms Over Obama’s New Tax Plan
So Obama, defending his plan to raise taxes on the rich, says this:
“If you are a wealthy C.E.O. or hedge-fund manager in America right now, your taxes are lower than they have ever been. They are lower than they have been since the nineteen-fifties,” the President said. “You can still ride on your corporate jet. You’re just going to have to pay a little more.”
And billionaire hedge-fund manager Leon Cooperman, a former Obama supporter, responds with this:
“You know, the largest and greatest country in the free world put a forty-seven-year-old guy that never worked a day in his life and made him in charge of the free world … Not totally different from taking Adolf Hitler in Germany and making him in charge of Germany because people were economically dissatisfied.”
Cooperman, like so many of his fellow super-rich, is upset at Obama’s class-warfare “tone.” But in response, as Chrystia Freeland documents in her definitive New Yorker treatment of billionaire Obama hate, Cooperman raises the level of divisive rhetoric light-years beyond Obama’s, straight into a galaxy of ludicrous imbecility. It is beyond irrational to compare Obama with Hitler, or to argue that in any meaningful way his administration has waged class warfare against the rich. If we’ve said it once, we’ve said it a million times, Obama has been great for the rich!
Freeland says it again:
The growing antagonism of the super-wealthy toward Obama can seem mystifying, since Obama has served the rich quite well. His Administration supported the seven-hundred-billion-dollar TARP rescue package for Wall Street, and resisted calls from the Nobel Prize winners Joseph Stiglitz and Paul Krugman, and others on the left, to nationalize the big banks in exchange for that largesse. At the end of September, the S. & P. 500, the benchmark U.S. stock index, had rebounded to just 6.9 per cent below its all-time pre-crisis high, on October 9, 2007. The economists Emmanuel Saez and Thomas Piketty have found that ninety-three per cent of the gains during the 2009-10 recovery went to the top one per cent of earners.
Vein-popping blood-pressure spikes are hard to avoid when one reads about the hurt feelings of America’s billionaires. Seriously, if you’re looking for ways to provoke real socialist revolution in the United States, the behavior investigated by Freeland is surely the best way to go about it, outside of mass-mailing invitations to a storm-the-barricades party to every American on food stamps. Flaunt your entitlement! Bemoan the hardship of your 14.1 percent tax rate! Complain that you are not getting enough credit for endowing the local symphony!
But the real wonder is that Obama doesn’t take more advantage of this obvious public relations bonanza. It is impossible to imagine anything that could play better for Obama with working-class voters than the fact that “hostility toward the President is particularly strident among the ultra-rich.” Franklin D. Roosevelt knew what to do with banker ire — just a few days before Election Day in 1936 he famously told a crowd at Madison Square Garden that “I welcome their hatred.”
Obama should be doing the same.
Or maybe he is. Because if we want to understand why polls show Obama up comfortably in Ohio, at least part of the reason has to be that Wall Street billionaires hate him — and like the other guy.
By: Andrew Leonard, Salon, October 1, 2012
“Disdain For Workers”: Of The Wealthy, By The Wealthy, And For The Wealthy
By now everyone knows how Mitt Romney, speaking to donors in Boca Raton, washed his hands of almost half the country — the 47 percent who don’t pay income taxes — declaring, “My job is not to worry about those people. I’ll never convince them that they should take personal responsibility and care for their lives.” By now, also, many people are aware that the great bulk of the 47 percent are hardly moochers; most are working families who pay payroll taxes, and elderly or disabled Americans make up a majority of the rest.
But here’s the question: Should we imagine that Mr. Romney and his party would think better of the 47 percent on learning that the great majority of them actually are or were hard workers, who very much have taken personal responsibility for their lives? And the answer is no.
For the fact is that the modern Republican Party just doesn’t have much respect for people who work for other people, no matter how faithfully and well they do their jobs. All the party’s affection is reserved for “job creators,” a k a employers and investors. Leading figures in the party find it hard even to pretend to have any regard for ordinary working families — who, it goes without saying, make up the vast majority of Americans.
Am I exaggerating? Consider the Twitter message sent out by Eric Cantor, the Republican House majority leader, on Labor Day — a holiday that specifically celebrates America’s workers. Here’s what it said, in its entirety: “Today, we celebrate those who have taken a risk, worked hard, built a business and earned their own success.” Yes, on a day set aside to honor workers, all Mr. Cantor could bring himself to do was praise their bosses.
Lest you think that this was just a personal slip, consider Mr. Romney’s acceptance speech at the Republican National Convention. What did he have to say about American workers? Actually, nothing: the words “worker” or “workers” never passed his lips. This was in strong contrast to President Obama’s convention speech a week later, which put a lot of emphasis on workers — especially, of course, but not only, workers who benefited from the auto bailout.
And when Mr. Romney waxed rhapsodic about the opportunities America offered to immigrants, he declared that they came in pursuit of “freedom to build a business.” What about those who came here not to found businesses, but simply to make an honest living? Not worth mentioning.
Needless to say, the G.O.P.’s disdain for workers goes deeper than rhetoric. It’s deeply embedded in the party’s policy priorities. Mr. Romney’s remarks spoke to a widespread belief on the right that taxes on working Americans are, if anything, too low. Indeed, The Wall Street Journal famously described low-income workers whose wages fall below the income-tax threshold as “lucky duckies.”
What really needs cutting, the right believes, are taxes on corporate profits, capital gains, dividends, and very high salaries — that is, taxes that fall on investors and executives, not ordinary workers. This despite the fact that people who derive their income from investments, not wages — people like, say, Willard Mitt Romney — already pay remarkably little in taxes.
Where does this disdain for workers come from? Some of it, obviously, reflects the influence of money in politics: big-money donors, like the ones Mr. Romney was speaking to when he went off on half the nation, don’t live paycheck to paycheck. But it also reflects the extent to which the G.O.P. has been taken over by an Ayn Rand-type vision of society, in which a handful of heroic businessmen are responsible for all economic good, while the rest of us are just along for the ride.
In the eyes of those who share this vision, the wealthy deserve special treatment, and not just in the form of low taxes. They must also receive respect, indeed deference, at all times. That’s why even the slightest hint from the president that the rich might not be all that — that, say, some bankers may have behaved badly, or that even “job creators” depend on government-built infrastructure — elicits frantic cries that Mr. Obama is a socialist.
Now, such sentiments aren’t new; “Atlas Shrugged” was, after all, published in 1957. In the past, however, even Republican politicians who privately shared the elite’s contempt for the masses knew enough to keep it to themselves and managed to fake some appreciation for ordinary workers. At this point, however, the party’s contempt for the working class is apparently too complete, too pervasive to hide.
The point is that what people are now calling the Boca Moment wasn’t some trivial gaffe. It was a window into the true attitudes of what has become a party of the wealthy, by the wealthy, and for the wealthy, a party that considers the rest of us unworthy of even a pretense of respect.
By: Paul Krugman, Op-Ed Columnist, The New York Times, September 20, 2012
“Tax-Payer Financed Capitalism”: The Great American Tax Debate Misses The Point
Casting the tax debate as an argument in which liberals want to use the tax system to reduce income inequality after the fact by taxing the wealthy at higher rates than middle and lower income classes, while conservatives favor flat taxes that tax rich and poor at the same rate, misses the main point. Deregulation of the financial system over the last 35 years and tax preferences that benefit corporations and wealthy individuals have done much to increase the before-tax incomes of the top 1 percent. An army of tax accountants, many of them recruited from the IRS, has figured out how to push the envelope on tax avoidance for the big businesses and wealthy individuals that can afford their high-priced services. For these folks, tax accounting has been transformed from a service that makes sure that required taxes are paid to a profit center that manipulates the tax code to generate huge returns at the expense of the tax-paying public. Increasingly what we see in the United States is the growing importance of tax-payer financed capitalism.
There is no economic reason that the debt taken on by corporations should be treated differently in the tax code from the equity invested by shareholders, but it is. Corporations get to deduct the interest paid on debt from their earnings, thus reducing the corporate income tax they have to pay. The tax code also provides an incentive for private equity firms, which plan to hold companies they acquire for their portfolios for just a few years, to load these companies with debt. In good times, this greatly increases the returns to investors. In poor economic conditions, this greatly increases the risk of financial distress and even bankruptcy, and imposes great costs on workers, creditors and communities. For investors with a time horizon measured in years and not decades, this is a risk worth taking for the promise of higher returns.
Tax preferences mean that income from owning stock is taxed at a far lower rate than income from working—a point made by Warren Buffet who famously pointed out that his secretary pays a higher tax rate than he does. The fiction that bonuses earned by partners in private equity and hedge fund firms is ‘carried interest’ that should be taxed at the lower rate on earnings from owning stock, rather than at the higher rate on ordinary income that ordinary workers and managers pay on their bonuses, boosts the income and wealth of these already wealthy economic players.
The use of aggressive tax avoidance schemes is rampant among big businesses and wealthy individuals. Setting up a subsidiary that lives in a file drawer in a tax haven and owns the company’s intellectual property and collects the royalties on it, or that owns the loans the company has made and collects the interest, allows financial institutions, pharmaceutical companies, and IT companies to park their profits outside the United States and defer taxes on this income indefinitely while waiting for a tax holiday to bring their profits home. Setting up so-called blocker corporations in offshore tax havens to launder taxable income for foreigners and pension funds, and turn it into nontaxable income is another favorite scheme.
Tax preferences and tax loop holes enrich the already wealthy and increase their incomes while starving the country of much needed tax revenue. The meaning of this rise in tax-payer financed capitalism is that the rest of us must either pay higher taxes or do without necessary services.
By: Eileen Appelbaum, U. S. News and World Report, September 19, 2012
“Mitt’s Snake-Bit Season”: The Worst Run Of Disasters This Side Of The Mayan Calendar
Our topic for today is: When Bad Things Happen to Mitt Romney.
Really, it’s been the worst run of disasters this side of the Mayan calendar. The Republicans’ woes started last Friday, when Ann and Mitt filmed a TV interview in which they entertained the kind of personal questions that most candidates learned to avoid after Bill Clinton did that boxers-versus-briefs thing. Asked what he wears to bed, Mitt said: “I think the best answer is: as little as possible.”
Euww.
Then, over the weekend, Romney aides began spilling their guts about how other staffers had screwed up the Republicans’ bounce-free convention. In an attempt to change the conversation, the campaign announced that it had just realized the nation wants Romney to say what he’d actually do as president. Voters “are eager to hear more details about policies to turn our economy around,” said an adviser, Ed Gillespie.
In search of just such specificity, the scoop-hungry Christian Broadcasting Network asked Paul Ryan if he would continue refusing to identify exactly what tax loopholes the Romney administration would close in order to turn our economy around.
“Yes,” said Ryan, who then veered into a disquisition about something that once happened to Tip O’Neill.
You may be wondering whatever became of Ryan, who was such a big sensation when Romney first picked him as a running mate. Since Tampa, he seems to have fallen off the face of the earth, resurfacing every now and then to put up another ad for re-election to his House seat in Wisconsin.
It’s not all that unusual for a vice-presidential candidate to go low-profile. And it is totally not true that Mitt Romney strapped Paul Ryan to the top of a car and drove him to Canada. Stop spreading rumors!
Next, Mother Jones published that video of the fund-raiser in Boca Raton in which Romney said that 47 percent of the country is composed of moochers who want to confiscate the earnings of hard-working stockbrokers and spend it on caviar and dialysis treatments.
“So my job is not to worry about those people. I’ll never convince them that they should take personal responsibility and care for their lives,” Romney decreed, undoubtedly more in sorrow than in anger.
Then, Republican Senate candidates in tight races began distancing themselves from the top of the ticket.
Ann Romney suggested Mitt was “taken out of context,” in what was undoubtedly meant as a helpful comment.
“All of us make mistakes,” said President Obama, in what probably wasn’t.
“Obviously inarticulate,” decreed Paul Ryan, popping up from a gopher hole somewhere in Nevada.
The fund-raiser, a $50,000-a-pop sit-down dinner, was hosted by Marc Leder, a financier who The New York Post reported as having a “wild party” last summer in the Hamptons “where guests cavorted nude in the pool” while “scantily dressed Russians danced on platforms.” You cannot blame Romney for that. If presidential candidates had to avoid all multimillionaires who held parties with naked guests and Russians on platforms, there would be no money for misleading TV commercials.
The video was a reminder of how ghastly this business of running for president can be. The guests seemed more interested in the breadbasket than the candidate. Romney was blathering away in the manner of somebody trying to stay awake during the 12th hour of a cross-country drive.
On Tuesday, moving to tamp down criticism that he was a conversational disaster area, Romney told Fox’s Neil Cavuto: “Well, we were, of course, talking about a campaign and how he’s going to get close to half the votes. I’m going to get half the vote, approximately. I hope — I want to get 50.1 percent or more.”
With that out of the way, Romney explained that his real point had not been to criticize people who don’t pay income taxes, but merely to point out that he wanted them to make more money. “I think people would like to be paying taxes,” added the quarter-billionaire whose own eagerness to be part of the solution is a matter of public record.
How did he let things slip out of control? Maybe the answer lies back with that Ann-and-Mitt interview, which was on “Live With Kelly and Michael.” Asked about his preferences when it came to heroines of low-end reality TV shows, the future presidential candidate enthusiastically announced: “I’m kind of a Snooki fan. Look how tiny she’s gotten. She’s lost weight and she’s energetic. I mean, just her sparkplug personality is kind of fun.”
It could be worse. He could have announced that he enjoys spending his free hours watching “Hoarders” marathons. But, still, it’s weird that Mitt Romney appears to think a lot about Snooki. Is it possible that while he’s being dragged around from one fund-raiser to the next, he spends his spare time watching “Jersey Shore” reruns in the limo?
That would explain so much.
By: Gail Collins, Op-Ed Columnist, The New York Times, September 19, 2012
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