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Showing posts with label billionaires. Show all posts
Showing posts with label billionaires. Show all posts

Tuesday, June 7, 2011

Hightower Lowdown | Billionaires' front groups attack workers, public schools, and young voters

Hightower Lowdown | Billionaires' front groups attack workers, public schools, and young voters

This is class war--part 2

Billionaires' front groups attack workers, public schools, and young voters

In January, a small group of Indiana schoolteachers encountered their governor, Mitch Daniels, in a hallway of the state capitol. They were part of an outpouring of Hoosiers who had come to Indianapolis that day to protest Daniels' almost-gleeful political attack on the pay and even the worthiness of public employees. Having the chance, this scrappy group dared to confront his eminence. Why, they asked, was he demonizing and so drastically under-cutting those who educate Indiana's children?

"You teachers are all making too much money," the governor snapped. He then lectured them with a prepackaged factoid: "You are all making 22 percent more than the taxpayers who are paying your salaries."


Hmmm, too much? Let's see--classroom teachers in Indiana earn a middle-class paycheck that averages $47,255 a year for handling a daily workload that would break the back (and haughtiness) of any pompous and pampered governor. Yet they are being belittled and their compensation is being slashed by this peacock of a public employee who sucks up more than twice what teachers get in annual salary, plus gold-plated benefits, assorted perks of office, and a barn full of personal staffers to help him make it through his day. Someone needs to buy Mitch a mirror.

Who are these evil teachers who teach your children, these evil policemen who protect them, these evil firemen who pull them from burning buildings? When did we all become evil? ----Chuck Canterbury, national president Fraternal Order of Police
Daniels is one of a flock of far right-wing governors who seem to have flown out of the same dark political hellhole in the past couple of years. Now ruling from the highest roosts of power in more than a dozen states, all of them are pushing vituperative measures designed to disempower and downsize not only public employees and unions, but also the entire workaday majority of their states --the middle class itself. Among other assaults, they are canceling collective bargaining contracts, suppressing union rights, arbitrarily eliminating hundreds of thousands of both public and private-sector jobs, turning over schools and other public functions to low-paying corporations, doing away with minimum wage protections, and cutting unemployment benefits and worker pensions (while simultaneously giving new tax cuts to corporations and millionaires).

Curiously, the governors all seem to have the same playbook. Not only are their agendas alike and the content of their proposals remarkably similar, but they're also parroting the same scripted rationale for their extremist actions: "The sky is falling on our Great State of [Blank], but luckily I was elected by the good voters of [Blank] to do the people's will, so I am taking these bold steps to balance [Blank's] budget."

What a crock! First, none of them campaigned on what they're now doing. Second, poll after poll shows that the public supports the workers, not the megalomaniacal governors. And, third, gutting the fundamental workplace rights of wage earners has nothing to do with balancing budgets.

Indeed, if a budgetary fix was really their goal, the governors could easily achieve it by setting up dunking tanks on their capitol grounds, putting their own ample butts on the dunking boards, and charging a dollar a pop for anyone wanting to dunk them. The lines would stretch for miles, and budget deficits could be quickly wiped out, one dunk at a time.

Goons in Gucci's

So where does this sudden, multi-state offensive against the hard-won rights, protections, and democratic power of America's wage earners come from? From the top--from a relative handful of arrogantly rich, right-wing families and corporate chieftains who have long been dedicated to disarming labor, repealing the New Deal, and returning America to the glory days when robber barons ruled. These particular moneyed elites have not idly dreamed of going back to the future, they've been investing hundreds of millions of dollars during the past four decades to assemble a shadowy network of hired political thugs to get them there.

[HISTORICAL FLASHBACK: In the fierce labor wars of the last century, industrial barons employed Pinkertons and other goons to bloody the heads of laborers or simply gun down those struggling for a share of economic and political power. It was brutal, but organized workers persevered and eventually gained a share of economic and political power. From their sweat and blood, America's middle class flowered.]

Today, the bands of nouveau corporate royalists (with coats of arms bearing such names as Coors, DeVos, Koch, Scaife, and Walton) are determined to take back those middle-class gains of yesteryear. They are working to achieve this through a coordinated, long-term campaign to (1) crush the ability of working people to unionize, (2) bust America's middle-class wage structure, (3) eliminate job security, and (4) emasculate government as a force capable of controlling corporate avarice and arrogance.

These latter-day royalists are employing a more sophisticated thuggery than brute force (though don't think they wouldn't resort to it). Instead, their goons are more likely to be in Gucci's than brogans, using dollars and computers rather than clubs and guns. They have been recruiting, financing, training, deploying, and coordinating thousands of political operatives to work through hundreds of front groups, law firms, think tanks, PACs, lobbying offices, media and PR consortiums, faux academic centers, astroturf campaigns, and--of course--compliant politicians.

Among the compliant is our covey of hyperactive governors, all carrying basically the same anti-worker, anti-democratic policy ideas. Their unified agenda wasn't produced by telepathy or freakish happenstance, but by AFC, ALEC, IFL, SPN,* and other obscure organizational acronyms unknown to 99 percent of Americans. But Daniels of Indiana, Walker of Wisconsin, Kasich of Ohio, Scott of Florida, and the rest of the covey have these organizations on speed dial. Behind the non-descript acronyms are aggressive and insidious right-wing wonk shops that have been set up and richly financed by the corporatists to prepare and hand-deliver pro-corporate programs to compliant governors and key legislators. Once delivered, the organizations work (usually clandestinely) to get the programs enacted. Let's peek inside a couple of these acronyms.

Forget children, AFC is an astroturf organization spreading the gospel of public education privatization. It is a creature of Michigan's multi-billionaire DeVos family--daddy Richard founded Amway, ranks 62nd among the richest Americans, and owns the Orlando Magic basketball team.

AFC is ramrodded by Betsy DeVos, whose right-wing bona fides are rock solid. Raised in the wealthy, ueber-conservative Prince family (her brother is Erik Prince, founder of Blackwater, the infamous private war corporation), she married Dick (son of Richard) and has been a major donor/fundraiser for the GOP, for religious-right political groups, and for a national web of school privatizers. Also, she and the larger DeVos klan are longtime co-conspirators in and co-funders of the Koch brothers' plutocratic political network. [Bonus tidbit: The DeVoses reportedly helped finance the Citizens United case that the Supreme Court used last year to unleash secret, unlimited corporate money on our elections.] Betsy is unabashed about using the family's vast fortune for, as she puts it, "buying influence" in government. In 1997 she bluntly declared, "We expect a return on our investment."

Eradication of public schools is her passion, and AFC is her machine. It's essentially a front group that funnels big money from a cadre of like-minded rich people into other front groups across the country. In turn, these groups funnel AFC's money into local privatization campaigns. Last year, for example, just one political action committee registered by AFC in Indiana amassed $4.6 million from only 13 donors--none from Indiana. The list included Alice and Jim Walton (two billionaire Walmart heirs), a trio of super-rich global speculators (who, interestingly, say they base their risky gambles on poker strategies), a multi-millionaire operator of a national chain of for-profit charter schools, and Betsy herself. Very little of the money stayed in Indiana--more than $4 million was flung out to pro- privatization front groups and candidates running campaigns in Florida, Georgia, New Jersey, Pennsylvania, Utah, and Wisconsin. This shell game is repeated in campaigns around the country, with the same core group of gabillionaires putting up the cash.

While you are not likely to have heard of Betsy DeVos, chances are she and her deep-pocket cohorts are behind efforts to privatize schools right where you live. By running money through their maze of shell organizations, they keep their own identities secret. Voters in the six states that got cash last year from the Indiana PAC, for example, might see that a group with the sweet-sounding name of the American Federation for Children is running campaign ads and funding candidates in their area--but there's no disclosure that Amway, Walmart, a trio of poker-guided speculators, and a charter school profiteer are the real source of the effort to undermine their public school system

In campaign after campaign, the 'local' demand for privatization turns out to be little more than AFC money creating the illusion of grassroots support (in fact, the steady infusion of millions of dollars from DeVos, the Waltons, et al. is often the only thing propping up many of the so-called 'school choice' organizations at the local, state, and national levels). AFC will gush money into state initiatives, legislative lobbying campaigns, and political races, especially in the crucial couple of weeks before a vote. The money buys glossy (and often nastily negative) media, creating the impression that there's a groundswell for taking public schools private. "Flooding the zone" is the phrase that AFC's cynical political operatives use to describe this astroturf tactic. Polls consistently show strong public opposition to using tax dollars to fund private and parochial schools, but a little thing like that doesn't deter DeVos and her tiny band of rich ideologues. Through their stealth campaigns, they have helped elect governors who are on board their corporatization crusade. In April, for example, Gov. Mitch Daniels rammed a sweeping, DeVos-backed voucher bill into law. This radical movement is out to eradicate public education (one group funded by DeVos, Koch, and company even calls itself the Alliance for the Separation of School and State, proudly proclaiming that it supports "ending gov- ernment involvement in education").

The vast majority of America's 310 million people adamantly supports public education, but DeVos intends to overwhelm those millions with her millions of dollars, strategically using untraceable money to pervert public policy to her will, one campaign at a time. Last year she launched the AFC Action Fund to focus on state legislative races across the country, with the intention of surreptitiously stacking legislatures with school privatizers.

"With nearly 2,000 members" explains a brochure of this secretive organization, "ALEC is the nation's largest nonpartisan, individual membership association of state legislators." Maybe your very own local lawmaker is one of them--but you won't get that information from ALEC, which hides its list of legislators from public view.
Nonpartisan? Its website lists 22 legislators from around the country who serve as board members and officers of this tax-exempt legislative service organization. All are Republican. In fact, only token numbers of Democrats are allowed in the club, and all inductees are individually vetted to make sure they will adhere to ALEC's corporate dogma.

Which brings us to the organization's pose as an association of legislators. The "exchange" in ALEC's name is not between lawmakers, but between lawmakers and such behind-the-scenes powers as Altria, AT&T, Bayer, Coca-Cola, ExxonMobil, GlaxoSmithKline, Intuit, Johnson & Johnson, Koch Industries, Kraft Foods, Peabody Energy, Pfizer, Reynolds American, State Farm Insurance, UPS, and Walmart. These giants form ALEC's "private enterprise board," and they are among the self-interested corporations that put up its money and shape its agenda.

State reps pay only a token $50 a year to be members of ALEC, while at least 82 percent of the $6 million yearly budget comes from corporations (ALEC demurely refuses to name its donors, much less report how much each gives, nor will it disclose how it spends the money).

What do corporations get for their tax-deductible donations? A greased skid for sliding their wish list into the laws of multiple states. ALEC is something of a speed dating service. It holds three national conferences a year, plus convening issue-specific policy sessions in 20 to 30 state capitols annually. These are cozy sessions that conveniently gather groups of legislators to meet in private with corporate executives. The two groups schmooze together and develop bills to help extend corporate power over workers, consumers, environmentalists, and others--then the lawmakers go back home to pass the corporations' bills.

ALEC is the ultimate back room for corporate-legislative collusion. Its promotional brochure describes it as a dynamic partnership "that will define the American political landscape of the 21st century."

That's no empty threat. ALEC's tête-à-têtes result in about 1,000 bills being introduced across America every legislative session, and an ALEC official proudly adds, "We usually pass about 200 bills a year." And what pieces of work they are! For example:
  • Even before Wisconsin Gov. Scott Walker took office this January, ALEC agents were handing him model bills for clubbing teachers and other public employees. Pushing ALEC's attack from inside the legislature were Wisconsin state Sen. Scott Fitzgerald, the rancorous, union-busting majority leader who was ALEC's state chairman last year, and state Rep. Robin Vos, the house budget slasher who heads ALEC's state organization this year. Likewise, governors in Indiana, Maine, Michigan, and Ohio have backed anti-union legislation this year that closely resembles ALEC's 'model' bills.
  • In 2009, ALEC drew up the Voter ID Act to ban university students from using their college-issued ID's as proof of residency for voting. Seven states have adopted this model law, which is intended to bar eligible students from the voting booth. These kids must be disenfranchised, New Hampshire's house speaker bluntly said in February, because they're "voting liberal, voting their feelings, with no life experience." This model bill has been introduced in 18 other states this year in a rather obvious ploy to hold down the student vote in the 2012 presidential election.
  • Arizona's infamous anti-Latino immigration law was crafted at an ALEC conference. The state senate leader who sponsored the bill was in the meeting, as was an eager executive from Corrections Corporation of America, the private prison operation that stands to get a nice business boost from Arizona's law.
  • Numerous state bills have been filed to kill, dilute, or withdraw from Obama's universal healthcare reform. Many bear remarkably similar wording, perhaps because they were drawn from a special report churned out by the 'nonpartisan' ALEC, entitled "The State Legislators Guide to Repealing ObamaCare."
  • One of ALEC's specialties is developing state laws to stop citizens from interfering with corporate whim. For example, when various communities began outlawing the use of genetically altered seeds in their area, ALEC rushed out a model bill to remove local control of seeds--11 states have passed it. Also with such climate-change deniers as Koch and Exxon funding ALEC and sitting on its board, you can guess why this corporate policy front has produced more than 800 draft measures against regulating global warming emissions--and, at least six states are considering bills nearly identical to ALEC's draft resolution for "state withdrawal from regional climate initiatives."

The big lie

Something unconscionable is at work here, something that is shameful, unworthy of our people, and directly contradictory to our country's founding ideals. The richest, most powerful, most privileged people in our land--in cahoots with a horde of the least principled, most venal political opportunists in civic life-- are intentionally savaging the well-being of America's majority and aggressively suppressing the democratic rights that make America America. And for what? Solely for themselves, for the aggrandizement of their own wealth and power.

To pull off this grand political larceny, the narcissistic right has manufactured a huge lie that has largely been accepted as truth not only by the GOP and tea partiers, but also by the mass media, nearly all of the mainline pundit class, and too many fraidy-cat Democratic leaders, including the one in the oval office. The lie is that extreme budgetary measures (they call them "coura- geous") simply must be imposed now, this instant, in order to slay the looming deficit monster that is gorging itself on government spending at all levels.

"In the name of your grandbabies," they cry, "teachers must be fired, rights smothered, pensions abrogated, Medicare tossed aside, little kids cut off from Head Start, and the bright promise of America's shared prosperity dimmed. We have no choice but to slash and burn."

No choice? One hedge fund hustler pocketed $2.4 million last year. Not for the year--$2.4 million AN HOUR. Yet he and his ilk pay a much lower tax rate than you and I do. In recent years, huge corporations like GE, ExxonMobil, and Bank of America have pocketed billions of dollars in profit, yet paid not a dime in federal income taxes. Indeed, far from paying taxes, these three have even been handed millions of dollars in "refunds" from our public treasury in some of their profitable years. Sliding through loopholes created by their lobbyists, two-thirds of corporations in the US pay no income taxes to help cover the priceless benefits they get from our national government.

America does not face a deficit crisis--we face a multi-billion dollar annual tax dodge by the most elite of moneyed elites. The money our society needs is right there--in the coffers of flagrantly rich Fortune 500 corporations and Wall Street banks, in the personal accounts of absurdly wealthy CEOs and fast-buck speculators. America is hardly a poor country. It's the richest in the history of the world, and it ought to have the very best public education program in the world, the most advanced infrastructure network, and the finest system of health care for all.

Yet our 'leaders' only talk of what they can't do, of what must be cut, of how the middle class and the poor must sacrifice, of how Americans must adapt to the new normal of diminished expectations and shriveled democratic power. The ugly truth is that these despicable governors and lawmakers are willingly trashing teachers and butchering our public budgets simply to spare the privileged and plutocratic few from paying what they owe to sustain a just, democratic, and truly prosperous society. This is ridiculous. Let's tax the super-rich! We the People must join together, stand up, push back, and shift the focus in this fight from hardworking teachers to these disgusting deadbeats and their political puppets.



*AFC: American Federation for Children; ALEC: American Legislative Exchange Council; IFL: Institute for Liberty; SPN: State Policy Network.

Thursday, June 2, 2011

No-Tax ‘Zealot’ Norquist Emerges as Biggest Barrier to U.S. Deficit Deal By Alison Fitzgerald

When members of the House Budget Committee gathered over sandwiches to meet with the leaders of President Barack Obama’s debt commission in Washington, former Senator Alan Simpson delivered a warning.
“If you are in thrall to Grover Norquist,” the Wyoming Republican who co-led the debt panel said he told the group in February, “this country hasn’t got a prayer.”
There may be enough congressional Republicans enthralled with Norquist, a small-government advocate who has spent the last quarter-century pressing lawmakers to sign a pledge never to raise taxes, to kill any comprehensive, bipartisan deal to rein in the $14.3 trillion national debt, say current and former members of Congress.
“Until Republicans are more afraid of the deficit than they are of Grover Norquist, we’re going to have a problem,” said Representative Christopher Van Hollen of Maryland, the top Democrat on the Budget Committee.
Norquist, 54, president of Americans for Tax Reform, says he has secured written pledges from 40 of the 47 Republicans in the Senate and 233 of 240 party members in the House. More than 1,300 state-level legislators, governors and even auditors have also signed, Norquist said. That includes Wisconsin Governor Scott Walker, Texas Governor Rick Perry and Ohio Governor John Kasich, all Republicans, he said.
Those who sign gain from Norquist’s support. Those who break the promise risk his wrath.

Under Attack

The pledge is coming under fire as two groups of lawmakers try to negotiate a package of spending reductions and revenue increases to curb the budget deficit. Republicans are demanding spending cuts as a condition of raising the statutory debt ceiling the Treasury reached last week. If lawmakers don’t boost the cap by Aug. 2, the U.S. risks a default, Treasury Secretary Timothy Geithner said.
Norquist, whose hard line on taxes belies an inclusive view of the Republican Party that welcomes Muslims, gay people and those who favor abortion rights, is undeterred by such warnings.
Every Republican involved in the negotiations has signed his pledge, which includes two promises: to “oppose any and all efforts to increase the marginal income tax rates for individuals and/or business” and to “oppose any net reduction or elimination of deductions and credits, unless matched dollar for dollar by further reducing tax rates.”

Showing His Clout

In an illustration of Norquist’s clout, he met on May 19 with Idaho Senator Mike Crapo, a Republican member of the so- called Gang of Six budget negotiators who some Democrats say may drop out of the talks. Norquist spokesman John Kartch and Crapo spokesman Amanda Critchfield both declined to say what was discussed.
Norquist denied that the commitment from lawmakers is making it harder for them to negotiate.
The pledge makes it difficult or impossible to raise taxes,” he said. “It doesn’t make it difficult to cut spending. That’s kind of the point, isn’t it?”
Some Republicans, including Illinois Senator Mark Kirk, Georgia Senator Saxby Chambliss and U.S. Representative Frank Wolf of Virginia, say any solution to the debt issue will have to involve a revenue increase, probably the elimination of tax breaks for certain industries or activities. Under Norquist’s definition, that would be a violation, and he’s ready to make them regret it.
“Taxes are when the government takes away what you create with your own work effort and time,” he said in an interview. “That reduces your liberty.”
13.2% a Year
A Bloomberg Government study in March showed that, without tax increases, lawmakers would have to cut spending by $4.9 trillion, or an average 13.2 percent a year, by 2020 to meet the debt panel’s goal of reducing government debt to 60 percent of gross domestic product. The reductions would include $225 billion from discretionary spending in the peak cutting years of 2016 and 2017. That’s about the equivalent of zeroing out the departments of Education, Energy, Housing and Urban Development, Homeland Security and Justice two years in a row.
If spending were lowered and taxes raised in equal measure, the cuts would average 6.6 percent a year, the report said.
Norquist has attacked Senator Tom Coburn, a onetime member of the Gang of Six, because the Oklahoma Republican raised the possibility of eliminating tax breaks. Norquist said if Coburn agreed to a tax increase “he was elected on a lie.”
That Norquist is taking on Coburn -- who last year blocked 120 spending measures in the Senate -- has some Republicans shaking their heads.

‘Fly on the Wall’

“Tom Coburn is an excellent conservative,” said Simpson, 79. Norquist, he said “is a zealot and a perfectionist, a 100 percenter.”
Coburn dismissed Norquist last week as “a fly on the wall. All noise and no substance.” Still, he has said he doesn’t plan to run for re-election in 2016. House members who will have to vote on any deal will face voters in 2012, and they’ve seen what Norquist can do.
“I spent $7.5 million in the 2010 election season talking about who has and hasn’t taken the pledge,” Norquist said.
When Abel Maldonado, a pledge-signing state senator in California, voted for a tax increase proposed by former Governor Arnold Schwarzenegger to help close the state’s budget gap, Norquist took revenge.

‘Closed for Business’

He issued a press release saying that because of Maldonado “California is closed for business.” He followed that up with a video distributed on YouTube, wrote opinion pieces in California newspapers and blogs, and just before the primary election in 2010 when Maldonado was running for lieutenant governor, Norquist distributed a list of state legislators who had broken the pledge, including Maldonado, to local papers.
Maldonado, who had been appointed by Schwarzenegger in 2009 as interim lieutenant governor, lost his bid for a full term. Maldonado didn’t respond to calls and an e-mail seeking comment.
In Virginia, Norquist distributed 90,000 posters with the pictures of pledge-breakers, and ran similar campaigns in North Carolina and Oregon.
Norquist has built up a following over the last 25 years that he says includes about 250,000 people who receive his group’s mailings and e-mail communications. And he hosts a weekly meeting that serves as a hub for conservatives to share information.

Activists ‘Speed-Dating’

On a recent Wednesday morning, he stood by the coffee urn in the gathering room at his 12th Street offices surrounded by young men and women from a range of organizations who were eager to catch his ear. Lobbyists, strategists and representatives from corporations milled about munching bagels.
Norquist has presided over this “center-right” meeting since 1993, when he set out to help defeat then-first lady Hillary Clinton’s health-care-overhaul plan.
About 30 people a week get 3 minutes to speak, updating the group on the progress of their cause. On this Wednesday, presenters included a Senate hopeful, lobbyists, Hill aides and some activist groups. The meetings are off the record, though reporters are occasionally invited to observe.
“It’s speed-dating for political activists,” said Douglas Holtz-Eakin, the president of American Action Forum, a Washington group that pushes for limited government, and a former economic adviser to John McCain’s presidential campaign.
Norquist has some rules. There’s no debate and no “emoting,” he said. “You say what you’re doing, not what you’re feeling.” These rules have allowed the meeting to thrive because people who disagree on some issues can come together on others, he said.

Helping Reagan

Norquist, raised in a wealthy Boston suburb and holder of a bachelor’s degree in economics and an MBA from Harvard University, created Americans for Tax Reform in 1985 from the network of activists working to help President Ronald Reagan pass a tax-overhaul law. The following year he wrote the Taxpayer Protection Pledge.
He believes in coming together: He sits on the board of the National Rifle Association and is an adviser to GOProud, an organization of gay conservatives. He’s married to a Kuwaiti- born Muslim woman.
Norquist, who peppers his conversation with comic voices, Chekhov quotes and references to the movie “Grease,” is big on numbers. He knows what year his meeting reached an average of 80 people and when it grew to 100. He keeps charts on how much coffee and how many bagels are consumed, and his staff counts the attendees every 15 minutes so he can graph the flow.

Abramoff Ties

He’s replicated the meeting in 45 states, building himself a loose national network.
Said Holtz-Eakin: “He finds promising politicians at the state level and has them sign the pledge, so when they arrive in Washington, they’re already committed.”
Norquist -- who opposed the 1992 re-election bid of Republican President George H.W. Bush for breaking his own “Read my lips, No new taxes” vow -- probably reached the pinnacle of his influence when George W. Bush was president. White House visitor logs released in 2006 showed he had visited 74 times over five years.
That was also the period when his less-savory associations, including ties to lobbyist Jack Abramoff, who pleaded guilty in connection with a corruption scandal in 2006, came to light.
Norquist was accused by the Senate Committee on Indian Affairs, which was led by McCain, of serving as a conduit for Abramoff to move money from the Choctaw Indians to other groups, in an effort to disguise the source of the funds.

Politically Inspired

Norquist said the accusations were drummed up by political opponents. He said he was never accused of breaking a law and that the Internal Revenue Service never investigated his group.
“Jack was an old friend who unfortunately got involved in some bad things,” Norquist said. “Fortunately, he did me the favor of never inviting me into any of that.”
With Obama in the White House, Norquist remains a player on Capitol Hill. He, along with representatives of the U.S. Chamber of Commerce and other business groups, meets a few times a month with the Senate’s Republican Policy Committee. Senator John Thune of South Dakota, who heads the committee, goes to the groups’ offices or sends his staff there to learn about issues and get their input, Thune said in an interview.
Robert Bennett, a former Utah senator who lost his bid for renomination for a fourth term last year at the state Republican convention, said he would sometimes run policy positions by Norquist before going public. An adviser to another Republican senator, who asked not to be named, said that practice wasn’t uncommon.

‘Pain in the Back’

Senator Orrin Hatch, another Utah Republican, said he agrees with Norquist that the problem in Washington is too much spending, rather than not enough taxation.
“He holds people’s feet to the ground,” Hatch said. “I love the guy because he works at it, and he is very dedicated about trying to get spending under control.”
Tom Ingram, who ran the successful campaigns of Tennessee Senators Lamar Alexander and Robert Corker, said he advises his clients to avoid Norquist’s pledge. They usually don’t listen.
“Grover is kind of like a pain in the back,” Ingram said. “You’re very aware of him, but you kind of wish he’d go away.”
Norquist won’t say where ATR gets its money, other than that about half comes from wealthy people and corporations and half from small, individual donations.
Its goal is to cut the size of government -- including federal, state and local -- in half over the coming decades. Federal spending now stands at almost 25 percent of GDP.

Elegance in Simplicity

Budget expert Maya MacGuineas said Norquist’s pledge only deals with one side of the equation.
“It’s just so elegant in its simplicity,” said MacGuineas, president of the Committee for a Responsible Federal Budget at the New America Foundation, a nonpartisan research group in Washington. “It’s like saying no paying your credit card bill.”
Still, MacGuineas said, history may be on Norquist’s side in the current budget debate, at least in part.
“The problem is now, legitimately, a spending problem,” she said.
While most budget experts and economists agree that to reduce the deficit for the long term will require both spending cuts and higher taxes, Norquist doesn’t see it that way.
“If it’s not mentioned in the Constitution, that is a strong argument that American taxpayers should not be paying for it.”
To contact the reporter on this story: Alison Fitzgerald in Washington at afitzgerald2@bloomberg.net

Norquist Emerges as Barrier to U.S. Debt Deal
Grover Norquist, president of Americans for Tax Reform, speaks during an interview in Washington. Photographer: Jay Mallin/Bloomberg
Norquist Emerges as Barrier to U.S. Debt Deal
Norquist, 54, president of Americans for Tax Reform, says he has secured a written promise never to raise taxes from 40 of the 47 Republicans in the Senate and 233 of 240 members of the House.Photographer: Chip Somodevilla/Getty Images
Norquist Emerges as Barrier to U.S. Debt Deal
Norquist created Americans for Tax Reform in 1985 from the network of activists working to help President Ronald Reagan pass a tax-overhaul law. Photographer: Greg Newington/ATR via Bloomberg 

Sunday, April 24, 2011

Which top earners are willing to give extra to Uncle Sam.

Facebook’s Mark Zuckerberg told President Obama this week he would be “cool” with paying more taxes. From Bill Gates to Warren Buffett, see which other top earners who are willing to give extra to Uncle Sam.

Mark Zuckerberg and President Obama have something in common: Both want to pay more in federal taxes. The Facebook founder told the president during a town hall-style meeting this week that he would favor an increase in the federal tax rate for the wealthiest Americans.

Gallery: Billionaires Who Favor Tax Hikes

Article - More Tax Celebs

Although in December Obama and Congress renewed the Bush tax cuts, which offer the greatest tax-rate relief for families earning more than $1 million, the start of the election cycle has reignited the conversation. The cuts will expire in 2012.

Aside from Zuckerberg, several other prominent billionaires and wealthy Americans have spoken out in favor of greater taxation, characterizing their support as a democratic responsibility and a duty of the successful. No one has been more outspoken than Warren Buffett. “I think that people at the high end, people like myself, should be paying a lot more in taxes. We have it better than we’ve ever had it,” Buffett has said.

Who else among the wealthy are willing to pay more? See our billionaires’ gallery to find out.

http://www.thedailybeast.com/blogs-and-stories/2011-04-22/mark-zuckerberg-bill-gates-warren-buffett-billionaires-who-favor-tax-hikes/#

Saturday, April 16, 2011

Paul Jay on Billionaire "sacrifices" in Wisconsin


Wisconsin's Billionaires Make a Sacrifice?

Video at:  http://therealnews.com/t2/index.php?option=com_content&task=view&id=33&Itemid=74&jumival=665

Transcript

PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I'm Paul Jay. Something has to give, say people backing Wisconsin's governor, Scott Walker. And that something just has to be the wages and collective bargaining rights of public sector workers.
Early in this epic battle, Wisconsin's Journal Sentinel's editorial board wrote, on February 12, "Walker is right to do this. He must insist that state workers pay a bigger share of their benefits. And he's right to take steps to compel them to do so. . . . Walker must fill a gaping budget hole of $137 million for the fiscal year that ends June 30 and a much larger imbalance in the next two-year budget. Something has to give."
The hole by 2013 is expected to be around $3.6 billion, so a few more things are going to have to give if Governor Walker's going to crack that nut. But, hey, everyone's going to make a sacrifice, right? So says the Wisconsin Club for Growth. They're the outfit that says, "our leaders must stand up to the tax and spend mentality in Madison and work tirelessly to cut taxes and unleash the power of the free-market." The Club for Growth should be called the "Club for Greed"--that's what Mike Huckabee told The New Yorkermagazine in 2007.
Here's a television ad they ran to support Governor Walker.
"All across Wisconsin, people are making sacrifices to keep their jobs: frozen wages, pay cuts, and paying more for health care. But state workers haven't had to sacrifice. They pay next to nothing for their pensions and a fraction of their health care. It's not fair! Call your state legislator and tell them to vote for Governor Walker's Budget Repair Bill. It's time state employees paid their fair share, just like the rest of us".
While public sector workers failed to heed the call of the Club for Growth, some people who benefited most from the "unleashed power of the free-market" are making their sacrifice.
Wisconsin retail magnate John Menard, from Eau Claire, Wisconsin, dropped to number 51 from number 44 last year on the Forbes list of the 400 richest Americans. Now, his net worth did climb from $5 billion in 2009 to $5.2 billion in 2010, but imagine how he felt the day he opened Forbes and found his rating had gone down.
Herbert V. Kohler Jr., the plumbing giant from Kohler, Wisconsin, made an even bigger sacrifice. His net worth went from $3 billion in '09 to only $2 billion in 2010. His Forbes ranking fell from 97th to 182nd.
This should make Mr. Kohler's workers feel better about accepting their latest contract that includes a two-tier pay structure. Current workers, who make an average of $22.50 an hour at Kohler plumbing will have their wages frozen for five years. New workers will make $14.50 an hour. Wisconsin's Harley-Davidson and Mercury Marine won similar contracts. In all three cases, workers were made to understand their choice was to accept the concessions, or the companies would move out of Wisconsin.
No wonder, according to the Wisconsin Club for Growth, these workers should demand that public sector workers share their fate. It's clear the government can't threaten to leave the state to win similar concessions, so this legislation must be needed to make it all fair.
Unlike greedy public sector workers, joining their fellow Wisconsinites in taking the fair share of the pain were:
- Donald Schneider of Schneider National Inc., a Green Bay trucking company. He held his wealth at $2.5 billion, but dropped from number 123 onForbes' list to number 144.
- Afton, Wisconsin's Diane Hendricks, of ABC Supply Co. Inc., saw her ranking fall from 158th to 170th. Yet she found some solace in the fact her net worth grew by $100 million to $2.1 billion.
- Members of the Johnson family of Racine, Wisconsin, bucked the trend, apparently, and refused to share the burden. They were four family members at 182nd on the list and $2 billion each. That was $50 million more and one ranking better than they did in '09.
- Same goes for James Cargill of Birchwood, Wisconsin. His net worth grew from $1.6 billion to $1.9 billion and a ranking that went from 220 last year to 205 in 2010.
So, we're told there's a dire emergency to find $137 million by June and $3.6 billion by 2013. Something has to give. But why is it the public sector workers? I have a couple of alternative suggestions.
Thirty million's all the governor's apparently going get out of the concessions he's demanded from public sector workers on their pension and health care payments, and for some reason that's beyond me, the unions have agreed to it.
But here's a much easier way to raise the dough. Just go back to 2008 levels of state-legislated estate taxes. According to the Wisconsin Department of Revenue, "no state estate tax has been collected for deaths occurring on or after January 1, 2008."
Wisconsin picked up $158.8 million in 2008, so if that tax were collected for 2009 and 2010, there'd be enough to fill the short-term hole and perhaps give those workers at Kohler, Mercury Marine, and Harley Davidson a bit of a tax break.
Now let's get out the heavy equipment and fill that $3.6 billion hole.
In 2001, estates paid 55 percent federal tax after the first $675,000, which was exempt. It had been that way for around 85 years. After the Bush presidency, in 2009 the rate was down to 45 percent after $3.5 million was exempt. For the next two years, in a deal negotiated by President Obama and the Republicans, the rate will be 35 percent after an exempt $5 million.
So, here's my "something has to give" plan. How about Wisconsin passes a law that takes the estate tax level back to 2001? In other words, the state adds 20 percent to the current 35 percent federal tax. And let's say the first million's tax free. The state would have to establish its own rules on what was taxable; the federal guidelines just create too many ways to avoid the tax.
By my math, the collective net worth of the esteemed group on the Forbes 400 from Wisconsin mentioned above comes to around $21.7 billion. That would make Wisconsin's share of their estates at the time of passing around $4 billion if you follow my plan. We just paid down the debt.
Now, while the Wisconsin Group for Growth calls for sacrifice, I'm sure even they wouldn't expect these billionaires to voluntarily die by 2013. But if the state knows the money's coming in, it shouldn't be too hard to work out the finances.
For the libertarians in the audience, consider this. If you believe that capitalism works when it's truly the survival of the fittest, doesn't such concentrated wealth handed down from generation to generation defeat that objective?
The obvious other objection to my plan is that these billionaires will take flight to parts unknown to avoid the tax, somewhat the way they threatened to pull their companies out of Wisconsin if workers didn't agree to the two-tier pay structure.
But there's ways of dealing with all of this. As far as the estate tax goes, a real federal estate tax with a proper share going to the states would solve part of the problem. Failing that, the state could go after fixed assets like houses and office buildings. I'm sure if the legal brains working in the public service set their minds to it, they can come up with all kinds of effective measures. While they're at it, how about a law that says if you move your company out of the state during a labor dispute, the state will no longer buy any of your products?
State governments, if they were really interested in the debt and not breaking unions, could use public pressure. Maybe even the Wisconsin Club for Growth will take out some more ads calling on billionaires to pay their fair share.
Okay, I guess not. But why is it that the free market demands that the rights of private wealth and corporations must be protected, but it's okay for the government to dictate to workers, telling them they're not free to refuse to sell their labor, even if they don't agree with the price or the conditions of their employment?
The point is, when something has to give, whether it's the public debt or problems at Kohler, Mercury Marine, and Harley Davidson, why is it acceptable that workers sacrifice, and sacrilegious to suggest it should be the billionaires?

I would so love to do a video like this for Minnesnowda .. we have billionaires who are just as socially inept as Wisconsin.  See the article, READ IT, by Stiglitz in Vanity Fair one more time ..


Wednesday, March 9, 2011

Real-redistribution-wealth-forbes-400-triple-wealth-5-years: Squattable

The Real Redistribution of Wealth: Forbes 400 Triple Wealth in 5 years

If you've ever listened to Rush Limbaugh, you've probably heard him talk about the "liberals" and their 'communist/socialist plot" to redistribute the wealth.
But that's in the make believe Limbaugh-land. In reality, the redistribution of the wealth has already happened, but it was in the opposite of direction of Rush's claim.
From 1995 to 2000, the Forbes 400 tripled their wealth!


Wow, aren't they 'good investors'. But looking at the graph got me wondering about the years prior to 1995. So I looked up the source stats, which came from a Fed paper, which I'm not sure can be completely trusted- they cook the numbers everywhere else, so why not here too?
Regardless, the fed paper does have the stats from 1989 and up:

The 400 richest Americans wealth grew:
$49 billion over the 6 year period from '89-'95
$955 billion over the 5 year period from '95-'00


During the initial period, the Forbes 400 average income was $20 million per year. Then during the next 5 years their average income increased to $478 million per year. Sounds fair, doesn't it?
Isn't this the wealth redistribution Rush is always talking about, but in reverse? As usual, the truth is the exact opposite of Limbaugh's claims.
Then I started questioning why the Fed Paper started in 1989- was that the first year of the Forbes 400? As it turns out, 1982 was the first year- here's a chart with the Forbes 400 first 20 years, from 1982 to 2002.

As you can see, the wealth of the uber-rich was growing steadily until the mid 90s, then it shot through the roof. That great sucking sound was caused by NAFTA, which opened the floodgates to outsourcing. Corporations fired workers by the thousands and hired replacements in the third world, often for less than a dollar per day. But that was only the beginning of the great heist.
The top 400 did lose some wealth during the stock market crashes of 1987 and 2000, but it is clear that post-crash, they were still way above their previous levels of wealth. Everyone else that invested in the tech boom didn't fare so well.
Some of you may recall how MCI Worldcom was poised to own the internet with it's fiber optic dominance. So millions of Americans invested in what they thought was a secure investment, the future of the internet. But then MCI overstated it's earnings by $11 billion, causing the stock to plunge to zero. Millions were devastated, $150 billion in stock was wiped out, goodbye retirement suckers!. But Worldcom only had to wait a year, pay a measly $500 million fine, and they were back in business, as the very same day the fine was announced, they received a $45 million gov't contract to help rebuild Iraq, in addition to the annual $750 million in federal contracts. Two guys went to jail, the rest took the money laughing all the way to the bank.
This redistribution has worked our really well for the elite, well connected and already super wealthy, but what of the rest of us?
As we have grown accustomed to the two income families still unable to to make ends meet, now having three jobs to get by has become 'uniquely American'. The loss of jobs due to outsourcing, combined with illegal schemes to steal American's homes through foreclosures, has put millions of Americans on the streets homeless. Millions of America's children are homeless, struggling to get through school every day underfed and with no stability whatsoever. Millions of Americans freezing on the streets every night even as millions more homes sit empty, because of bankers with no soul.
Meanwhile the federal government not only enables but encourages this financial redistribution of wealth. Even as their policies tank every day Americans, an Administration favorite JP Morgan found a way to make money by taking over the food stamp program and _outsourcing_ it, taking who knows what percentage for themselves. With the HAMP program which was supposed to help stop foreclosures, the same banks that caused the crisis were paid more money to do the HAMP paperwork. The bankers were given their payment whether or not the new loan went through, and in 50% of the cases HAMP failed the homeowner. Often the banks do not even own the loans, but are just the 'servicers', because they sold the mortgages in the MBS scam. So now looking at a foreclosure, the MBS investors (ie pension funds) would be better off giving the family a loan modification, but the bank makes more money if they foreclose... see a problem here? And it's set up so the banks decide when to foreclose, with no oversight! Who set this up? Obama. Why? Because he's a friggin' bankster puppet. Just ask his new Chief of Staff, JP Morgan executive Bill Daley (of the Chicago mafia/mayoral monarchy).
The overt and unacceptable greed of the last 30 years has led to the situation that the elite now fear. The people have nothing, and therefore nothing to lose. The Super greedy could not stop at having 95%, they want it all. The Moron governor of Wisconsin finally pushed people too far and provoked a new movement of We the People across the country.
The Cheddar Rebellion in Wisconsin has sparked protest across the country, 600 people march on Fox News, 1,000s gather to protest Bank of America, new protest groups forming in every community with the common underlying theme that "we have had enough!"
The federal government at this time, apparently having no idea just how angry we have become, plans to gut all social programs just to save $60 billion, which is a pittance compared what is spent on the military industrial complex. $60 billion is one 'emergency supplemental' for the war machine, but means everything to the Veterans that will no longer get housing vouchers, the Seniors that will freeze to death, and the families that can no longer put their kids in head start while they go to their second or third job.

See this chart for a good breakdown of the 'need' for 'austerity' measures, so 'we' can all feel the pain in our 'shared sacrifice'.

This is all because of a suddenly pressing need to cut the deficit that has grown due to tax cuts, wars, homeland security, bailouts and all of the other things that have made the rich richer.
Thanks to insatiable greed, the truth of this financial redistribution is now evident to even those barely paying attention or willfully ignorant. Finally, the American people have had enough and the government is just dumb enough to completely expose themselves. The idea that teachers make too much money but wall street deserves the bonuses they paid themselves off of the taxpayer bailouts...sorry ruling elite, but people are just not that stupid. But we appreciate that you are because now the whole system is coming down.