bureaucracybusters

BENEDICT ARNOLD: CAPITALIST HERO – PART TWO

In Politics, History, Social commentary, Business on May 29, 2012 at 12:00 am

On May 13, Forbes magazine ran an Op-Ed piece under the headline: “For De-Friending The U.S., Facebook’s Eduardo Saverin Is an American Hero.”

Democratic Senator Chuck Schumer of New York angrily disagreed.

“It is scary. It is a scary, absurd place where even a tax dodger who renounces America for his own 30 pieces of silver is celebrated as a patriot and an American hero. It is perverse. I am appalled by making heroic a man who renounces citizenship to escape a tax rate of capital gains of 15%.

“No one gets rich in America on their own,” Schumer said. “And when people do well in America, they should do well by America. I believe the vast majority of Americans believe this too.”

From that Op-Ed piece:

“Saverin’s flight from the U.S. is yet another reminder of the superiority of a national consumption tax that in a perfect world would be implemented in concert with the abolition of the I.R.S.”

It’s tempting to imagine a world without an agency to collect taxes. But it’s nightmarish to contemplate a world where there were no taxes to pay for

  • a powerful military to protect us;
  • an FBI to combat terrorism and organized crime;
  • an FAA to safely regulate airline traffic;
  • agencies to repair roads;
  • agencies to erect public buildings (such as schools, courts and libraries) and
  • agencies (such as the EPA and FDA) to protect us from predatory businessmen.

The Op-Ed piece continues:

“A limited federal government is a difficult concept to achieve so long as that same government can grant itself the legal right to tax a certain portion of our incomes.”

Every nation in history–whether a democracy or a dictatorship, whether capitalist, socialist or communist–has understood the absolute necessity for collecting public revenues. And it has created means by which to do so.

“When individuals resist governmental hubris, we should exalt their actions.”

We should, in short, celebrate those who come to the United States to make fortunes they could not make anywhere else–and then, when they do, turn their backs on their adopted country. We should rejoice that they have stuffed billions of dollars more into their already-fat pockets and left their supposed fellow countrymen to shift for themselves.

“Ideally…we’ll implement a consumption tax through which we can limit what we hand over to them to spend. And if the tax is regressive or hits low incomes at the same percentage as high ones, all the better. Everyone should know intimately the cost of government.”

Of course we should have a “regressive” tax that “hits low incomes at the same percentage as high ones.” Of course, those who are barely able to feed their families or can’t afford medical care should pay as much in taxes as a rich parasite who, like Mitt Romney, throws out $10,000 bets like so many dimes.

“And if the loss of Saverin’s millions means fewer government programs will achieve funding, U.S. taxpayers will make up for the Saverin shortfall in spades given the seeming inability of Congress to “sunset” any program.”

For billionaires like Saverin and the well-heeled types who subscribe to Forbes, it doesn’t matter that “fewer government programs will achieve funding.”

Greed-obsessed “swells” like Saverin:

  • don’t depend on Medicare–they can easily afford the best doctors money can buy;
  • don’t have to depend on Social Security to see them through old age;
  • don’t have to worry about standing in food bank lines;
  • don’t need to rely on police departments–if they’re threatened, they can easily afford round-the-clock bodybuards;
  • don’t need consume protection agencies; if they’re victimized by unscrupulous businessmen, they can hire platoons of lawyers and private detectives.

A contemporary writer who warned of America’s abandonment by its privileged classes was Christopher Lasch.  In his posthumously published last book, The Revolt of the Elites and the Betrayal of Democracy [2005] he wrote:

The Revolt Of The Elites And The Betrayal Of Democracy

“There has always been a privileged class, even in America. But it has never been so dangerously isolated from its surroundings.

“George Bush’s [the president who served from 1989 to 1992] wonderment, when he saw for the first time an electronic scanning device at a supermarket checkout counter, revealed, as in a flash of lightning, the chasm that divides the privileged classes from the rest of the nation.”

Until recently, writes Lasch, American cultural and economic elites willingly shouldered civic responsibilities.  But in post-modern capitalism, a professional elite defines itself as entirely separate from civic concerns:

“The markets on which the fortunes of the new elites rely are tied to enterprises that operate across international borders….They have more in common with their counterparts in Brussels or Hong Kong than with the masses of people in their own country who are not yet plugged into the network of global communications.”

Thus, the privileged class in America–the top 1%–has separated itself from the crumbling public services and industrial cities that are used and lived in by the rest of the country’s citizens.

BENEDICT ARNOLD: CAPITALIST HERO – PART ONE

In Politics, History, Social commentary, Business on May 28, 2012 at 12:05 am

On May 15, Facebook co-founder Eduardo Saverin renounced his U.S. citizenship.

Born in Brazil, the 30-year-old Saverin became a U.S. citizen in 1998 but has lived in Singapore since 2009.

Giving up his citizenship allowed him to avoid paying taxes on billions of dollars on capital gains when Facebook launched its IPO n May 18.  Singapore does not have a capital gains tax.

And America’s fascist Right couldn’t be happier.

Take Rush Limbaugh, the right-wing talk-show host.  The Rush Limbaugh Show airs throughout the U.S. on over 400 stations and is the highest-rated talk-radio program in the United States. When Limbaugh speaks, his “dittohead” audience listens—and acts as he decrees.

“So if it’s a more favorable tax haven that you can find elsewhere and you go there,” asked Limbaugh, ”why is it automatically that you are unpatriotic? Why is it automatically that you are a coward, that you are not paying your fair share? It’s this whole class envy thing rearing its head again.”

For Limbaugh, the villain isn’t a billionaire who turns his back on the country that gave him the opportunity to become one.  No, the villain lies in those who believe that even wealthy businessmen should behave like patriots–instead of parasites.

“But [Barack Obama is] out there demonizing successful people every day, targeting successful people every day, running a presidential campaign based on class warfare, trying to get the 99% of the country who are not in the top 1% to hate the 1%, to literally despise ‘em.”

Consider the implications of this:

On November 1, 2011, Forbes magazine reported that, in 2007, the richest 1% of the American population owned 34.6% of the country’s total wealth, and the next 19% owned 50.5%.

Thus, the top 20% of Americans owned 85% of the country’s wealth and the bottom 80% of the population owned 15%.

According to Limbaugh’s philosophy, the bottom 80% of the popularion owning 15% of the country’s wealth should pay homage to the top 20% of Americans who own 85% of the country’s wealth.

In short, they should “know their place” and not expect the moneyed few to pay their fair share of taxes.

Of course, this is to be expected of Limbaughwhose own wealth makes him a multi-millionaire.  In 2001, U.S. News & World Report noted that Limbaugh had an eight-year contract, with Clear Channel Communications, for $31.25 million a year.

And according to a July 2, 2008, Matt Drudge column, Limbaugh signed a contract extension through 2016 that is worth over $400 million.

And Limbaugh isn’t alone in his praise for Saverin.

Another right-winger who defends those who run out on their country is anti-tax activist Grover Norquist,

On May 7, two Democratic Senators—Chuck Schumer of New York and Bob Casey of Pennsylvania—introduced legislation designed to tax expatriates even after they have left the country.

Their “Ex-PATRIOT Act” would impose a mandatory 30% tax on American investments for those who renounce their citizenship and would also prohibit individuals like Saverin from re-entering the country.

“Saverin has turned his back from the country that welcomed him, kept him safe, educated him and helped him become a billionaire,” Schumer said at a press conference. He added that it was time to “de-friend” the Facebook co-founder.

Norquist, the president of Americans for Tax Reform (ATF) said the targeting people that turn in their passports reminded him of regimes that had driven people out of the country, only to confiscate their wealth at the door. 

“I think Schumer can probably find the legislation to do this. It existed in Germany in the 1930s and Rhodesia in the ’70s and in South Africa as well,” said Norquist. “He probably just plagiarized it and translated it from the original German.”

On the floor of the Senate, Schumer denounced Norquist in return:

“I know a thing or two about what the Nazis did. Some of my relatives were killed by them.  Saying that a person who made their fortune specifically because of the positive elements in American society, in turn, has a responsibility to do right by America is not even on the same planet as comparing to what Nazis did to Jews.”

Schumer added that he found it troubling that conservatives would lionize someone like Saverin, who was called “an American hero” by Forbes magazine.

On May 13, Forbes–which describes itself as “The Capitalist Tool”–had run an Op-Ed piece under the headline: “For De-Friending The U.S., Facebook’s Eduardo Saverin Is an American Hero.”

“Can you believe it?” asked Schumer.  “An American hero? Renouncing your citizenship now qualifies as heroic for the hard right-wing?”

“This has gone so far, this idolatry they have taken to such an extreme end, they make Eduardo Saverin into their patron saint.  In the name of low taxes for the wealthy, they have lionized an inherently unpatriotic person.”

NEGOTIATING NAZI-REPUBLICAN STYLE – PART SEVEN (END)

In Politics, History on May 25, 2012 at 12:00 am

Noted MSNBC political analyst Chris Matthews summed up the sheer criminality of Republican “bargaining” tactics last summer.

He did so on July 28, 2011–five days before Congress reached its August 2 deadline to raise the debt-ceiling or plunge the Nation into bankruptcy.

“The first people to bow to the demands of those threatening to blow up the economy were the Republicans in the House, the leaders. The leaders did what the followers told them to do: meet the demands, hold up the country to get their way.

“Those followers didn’t win the Senate, or the Presidency, just the House.

“But by using the House they were able to hold up the entire United States government. They threatened to blow things up economically and it worked.

“They said they were willing to do that–just to get their way–not by persuasion, not by politics, not by democratic government, but by threatening the destruction of the country’s finances.

“Right. So what’s next? The power grid? Will they next time threaten to close down the country’s electricity and communications systems?”

President Obama could have faced down the extortionists of the Republican Party in two ways:

  1. Prosecuting them under the Racketeer Influenced Corrupt Organizations (RICO) Act and/or the USA Patriot Act; and/or
  2. Addressing the Nation as President John F. Kennedy did during the Cuban Missile Crisis and warning his fellow citizens that the Nation faced a moment of supreme danger.

In Part Six of this series, I outlined how the President could apply the RICO Act and/or the USA Patriot Act to hold Republican extortionists criminally accountable.

In this part, I will outline his second option (which can be coupled with criminal prosecution).

Making a Cuban Missile Type Speech

During such a national address, President Obama could have revealed such blunt truths as:

  • Republicans have adopted the same my-way-or-else “negotiating” stance as Adolf Hitler.
  • Like the Nazis, they are determined to gain absolute power–or destroy the Nation they claim to love.
  • They raised the debt ceiling seven times during the eight-year Presidency of George W. Bush.
  • But now that a Democrat holds the White House, raising the debt ceiling is unacceptable.
  • Despite Republican lies, we cannot revitalize the economy by slashing taxes on the wealthy and on cash-hoarding corporations while cutting benefits for millions of average Americans.
  • We will need both tax increases and sensible entitlement cuts to regain our economic strength.

Finally, President Obama could have ended his speech by directly calling for the active support of his fellow Americans. Something like this:

“My fellow Americans, I have taken an oath to ‘preserve, protect and defend the Constitution of the United States.’

“But I cannot do this on my own. As citizens of a Republic, each of us carries that burden. We must each do our part to protect the land and the liberties we love.

“Tonight, I’m asking for your help.

“We stand on the edge of economic disaster.  Therefore, I am asking each of you to stand up for America tonight–by demanding the recall of the entire membership of the Republican Party.

“As President John F. Kennedy said:

‘In your hands, my fellow citizens, more than mine, will rest the final success or failure of our course. Since this country was founded, each generation of Americans has been summoned to give testimony to its national loyalty.’

“This is the moment when each of us must decide–whether we will survive as a Republic, or allow ruthless political fanatics to destroy what has lasted and thrived for more than 200 years.”

President Obama has taken forceful action against America’s foreign enemies—most notably Osama bin Laden.

If the Nation is to survive, he must now act just as forcefully against America’s domestic enemies.

Fortunately, there is still time for him to do so. The fact that a prosecutor chooses to not indict on one occasion doesn’t prevent him from doing so on another.

In doing so, he may find history repeating itself.

Joachim C. Fest, author of Hitler (l973), writes of the surprise that awaited Allied soldiers occupying Nazi Germany in 1945:

“Almost without transition, virtually from one moment to the next, Nazism vanished after the death of Hitler and the surrender.  It was as if National Socialism had been nothing but the motion, the state of intoxication and the catastrophe it had caused….

“Hitler’s propaganda specialists had talked constantly of invincible Alpine redoubts, nests of resistance, and swelling werewolf units, and had predicted a war beyond the war. But there was no sign of this.

“Once again it became plain that National Socialism, like Fascism in general, was dependent to the core on superior force, arrogance, triumph, and by its nature had no resources in the moment of defeat.”

With luck, the same will prove true for the extortionists and blackmailers of the Republican Party.

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