On May 13, 2012, 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.
Chuck Shumer
“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 further asserts that “you cannot limit the power of the Federal Government if its officials hold the power to tax 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.
“In an ideal world the Federal Government should implement a consumption tax. And if, as a result, poor people suffer because they’re taxed at the same level as rich ones, fine.
“Everyone should know how much it costs to run the 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.
“If the Federal Government can’t fund all its programs because rich people like Saverin refuse to pay taxes, then U.S. taxpayers generally will have to make good for the missing taxes. It’s the fault of Congress that it cannot put an end to any program.”
For billionaires like Saverin and the well-heeled types who subscribe to Forbes, it doesn’t matter whether “the Federal Government can’t fund all its programs.”
San Simeon, estate of William Randolph Hearst
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 bodyguards;
- Don’t need consumer 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:
Christopher Lasch
“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…the chasm that divides the privileged classes from the rest of the nation.”
Until recently, wrote 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 new elites flourish through enterprises that operate across international borders. The rich in America have more in common with their fellows in Europe or Asia than with the vast majority of their fellow Americans who don’t share their comfortable surroundings.
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.
Even worse, our society has condoned their exalted status. The dust jacket blurb for James Patterson’s crime-thriller, NYPD Red, says it best:
“NYPD Red is a special task force charged with protecting the interests of Manhattan’s wealthiest and most powerful citizens.”
It’s time to protect the 99% of America’s citizens against the predators of its 1% wealthiest.
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RIGHT-WING AMERICA: MY WALLET–FIRST AND ALWAYS: PART THREE (OF FOUR)
In Bureaucracy, History, Law, Politics, Social commentary on May 28, 2025 at 12:13 amThe British offered Revolutionary War General Benedict Arnold £20,000 for betraying West Point to the Crown.
Benedict Arnold
But Arnold was a piker compared to companies that are raking in literally billions of untaxed dollars by betraying the United States in its time of economic trial.
To avoid paying their legitimate share of taxes, they move their headquarters overseas to countries with reduced tax rates. In tax parlance, this is called an “inversion.”
For almost 20 years, tax-avoiding corporations fled to Caribbean countries such as Bermuda and the Cayman Islands. But in 2004, Congress ruled that American companies could relocate overseas if foreign shareholders owned 20% of their stock.
According to statistics compiled by the Congressional Research Service (CRS) in 2014:
“Forty-seven U.S. corporations have reincorporated overseas through corporate inversions in the last 10 years, far more than during the previous 20 years combined.
“In total, 75 U.S. corporations have inverted since 1994 – with one other inversion occurring in 1983. What’s more, there are a dozen prospective inversion deals involving U.S. corporations looking to reincorporate overseas, according to CRS
“The new data underscores the significant increase in the number of U.S. corporations that have or are seeking to lower their U.S. taxes by reincorporating overseas.
“It also adds urgency to a legislative solution. Ways and Means Committee Ranking Member Sander Levin in May introduced legislation that would tighten rules to limit inversions.
“The Joint Committee on Taxation estimates that the legislation would save $19.5 billion over 10 years. Companion legislation was introduced in the Senate by Sen. Carl Levin.
“‘Barely a week seems to pass without news that another corporation plans to move its address overseas simply to avoid paying its fair share of U.S. taxes,’” said Ranking Member Levin.
“These corporate inversions are costing the U.S. billions of dollars and undermining vital domestic interests.
“‘We can and should address this problem immediately through legislation to tighten rules to limit the ability of corporations to simply change their address and ship U.S. tax dollars overseas.’”
According to a September 23, 2023 report by Boston Consulting Group, more than 90% of North American companies had relocated production and sourcing over the past five years.
Among those companies that have chosen to betray their country in its time of economic need:
The 500 largest American companies hold more than $2.1 trillion in accumulated profits offshore to avoid U.S. taxes and would collectively owe an estimated $620 billion in U.S. taxes if they repatriated the funds.
So says a 2015 study released by two non-profit groups: Citizens for Tax Justice and the U.S. Public Interest Research Group Education Fund.
“At least 358 companies, nearly 72 percent of the Fortune 500, operate subsidiaries in tax haven jurisdictions as of the end of 2014,” the study said. “All told these 358 companies maintain at least 7,622 tax haven subsidiaries.”
Niccolo Machiavelli, the father of modern political science, foresaw this danger more than 500 years ago. He deeply mistrusted the nobility of his own time, because they stood above the law with estates, subjects and even armies of their own.
For Machiavelli one of the likeliest sources of corruption lay in their ability to buy influence through patronage, nepotism and favors.
The 2024 Presidential election provides the most blatant example of this: Elon Musk, the world’s richest man and the owner of SpaceX and X (formerly Twitter) donated $288 million to Donald Trump’s re-election campaign for President.
This allowed Musk to buy himself a high-ranking position within the new administration: The director of DOGE (Department of Government Efficiency)—a fictional agency whose power derived solely from Trump and charged with firing tens of thousands of federal employees.
To protect against such corruption, Machiavelli favored “good laws”—including, if necessary, the severest penalties—to coerce citizens to prefer the common good to private greed. Thus, civic duties would be maintained and private bids for power would be punished.
But Machiavelli also counseled the use of the carrot as well as the stick: Citizens should receive greater rewards for performing public services than private ones.
The American historian, Christopher Lasch, warned about this trend in his 1995 book, The Revolt of the Elites. Until recently, the economic and cultural elites of Western nations willingly shouldered civic responsibilities.
But that has changed.
According to Lasch: “The markets on which the fortunes of the new elites rely are tied to enterprises that operate across international boundaries….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.”
CEOs and their high-ranking lieutenants in such corporations send their children to private schools. They have their own private healthcare systems and even protection by armies of private security officers.
As far as they are concerned: “Why should we pay for public services that we don’t even use?”
The results of this greed and indifference can be seen across the nation.
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