Monday 6th of May 2024

the pirates of finance...

pirates of finance
The Pirates of Capitol Hill


By CHARLES M. BLOW

Corporations are roaring. Wall Street is rolling in cash. C.E.O. bonuses are going gangbusters. It’s a really good time to be rich!

If you’re poor, not so much. The pall of the recession is suffocating. The unemployment rate is still unbearably high. The Census Bureau reported in September that the poverty rate for 2009 was 14.3 percent, higher than it has been since 1994, and the number of uninsured reached a record high. And the Department of Agriculture has reported record “prevalence of food insecurity.”

So in a civil society, which of these groups should be expected to sacrifice a bit for the benefit of the other and the overall health and prosperity of the nation at a time of great uncertainty? The poor, of course. At least that seems to be the Republican answer.

Under the guise of deficit reduction, the Republicans are proposing to not only make the Bush tax cuts for the wealthy permanent, but to reduce their taxes even more — cutting the top individual rate from 35 percent to 25 percent to “promote growth and job creation.” And they plan to pay for this by taking a buzz saw to programs that benefit the poor, elderly and otherwise vulnerable.

But the spurious argument that cutting taxes for the wealthy will somehow stimulate economic growth is not borne out by the data. A look at the year-over-year change in G.D.P. and changes in the historical top marginal tax rates show no such correlation. This isn’t about balancing budgets or fiscal discipline or prosperity-for-posterity stewardship. This is open piracy for plutocrats. This is about reshaping the government and economy to benefit the wealthy and powerful at the expense of the poor and powerless.

And it’s not that the rich haven’t already gotten their tax cuts. According to an analysis released Thursday by the Economic Policy Institute, the average tax rate for the top 1 percent of households dropped by about 20 percent from 1979 to 2007, while the average tax rate for all Americans dropped by just 8 percent over that time. However, in just the period from 1992 to 2007, the tax rate on the top 400 households in America — those with an average annual income of nearly $350 million — fell by more than a third. In fact, the tax rate for these supermillionaires is now less than the tax rate for average Americans.

This even though, as the institute pointed out, “between 1992 and 2007, a time in which income for the average household and top 1 percent grew 13% and 123%, respectively, the income for the top 400 households grew fully 399%.”

http://www.nytimes.com/2011/04/16/opinion/16blow.html?hp=&pagewanted=print

By "poor", we mean you...

Now: Deepening the divide between rich and poor, with cheap labor, wielding golden pickaxes. Don't steal those pickaxes. We counted them beforehand. When you're done widening that trench, holler. We'll be on the mega-yacht.

When the rich have too much and the poor have too little, then you average it out and everybody has just enough, proving capitalism works. The rich have the $24 million Strand Craft yacht, complete with a superluxury car you can drive right off the dock; the poor have abortion via video doctor. The rich have restaurants with reservations; the poor no longer get reservations, because, fuck it, they can stand in line. The rich have crystal stemware; the poor have McDonald's Shrek glasses full of cadmium, but they can trade them in for three dollars, which is more than reasonable. The rich have towns like Beverly Hills, which are nice; the poor have towns like Central Falls, Rhode Island, which is damn near bankrupt. The rich have no estate tax, so they can pass on billions to their heirs tax-free; The poor have no estate tax, so they can pass on jack shit.

By "poors," we mean you.

http://gawker.com/#!5559382/the-rich-get-yachts-the-poor-get-walks

toxic tea party fumes...

G.O.P. Pushes to Deregulate Environment at State Level


By LESLIE KAUFMAN

Weeks after he was sworn in as governor of Maine, Paul LePage, a Tea Party favorite, announced a 63-point plan to cut environmental regulations, including opening three million acres of the North Woods for development and suspending a law meant to monitor toxic chemicals that could be found in children’s products.

Another Tea Party ally, Gov. Rick Scott of Florida, has proposed eliminating millions of dollars in annual outlays for land conservation as well as cutting to $17 million the $50 million allocated in last year’s budget for the restoration of the dwindling Everglades.

And in North Carolina, where Republicans won control of both houses of the Legislature for the first time in 140 years, leaders recently proposed a budget that would cut operating funds to the state’s Department of Environment and Natural Resources by 22 percent.

In the past month, the nation’s focus has been on the budget battle in Washington, where Republicans in Congress aligned with the Tea Party have fought hard for rollbacks to the Environmental Protection Agency, clean air and water regulations, renewable energy and other conservation programs.

But similar efforts to make historically large cuts to environmental programs are also in play at the state level as legislatures and governors take aim at conservation and regulations they see as too burdensome to business interests.

Governor LePage summed up the animus while defending his program in a radio address. “Maine’s working families and small businesses are endangered,” he said. “It is time we start defending the interests of those who want to work and invest in Maine with the same vigor that we defend tree frogs and Canadian lynx.”

When Republicans wrested control across the country last November, they made clear that reducing all government was important, but that cutting environmental regulations was a particular priority.

Almost all state environmental budgets have been in decline since the start of the recession, said R. Steven Brown, executive director of the Environmental Council of the States, which works with environmental agencies across the country. What has changed this budget season is the scope and ambition of the proposed cuts and the plans to dismantle the regulatory systems, say advocates who are already battle-hardened.

http://www.nytimes.com/2011/04/16/science/earth/16enviro.html?hp=&pagewanted=print

heritage protection of the tax cuts for the rich...

Let’s Not Be Civil


By PAUL KRUGMAN

Last week, President Obama offered a spirited defense of his party’s values — in effect, of the legacy of the New Deal and the Great Society. Immediately thereafter, as always happens when Democrats take a stand, the civility police came out in force. The president, we were told, was being too partisan; he needs to treat his opponents with respect; he should have lunch with them, and work out a consensus.

That’s a bad idea. Equally important, it’s an undemocratic idea.

Let’s review the story so far.

Two weeks ago, House Republicans released their big budget proposal, selling it to credulous pundits as a statement of necessity, not ideology — a document telling America What Must Be Done.

But it was, in fact, a deeply partisan document, which you might have guessed from the opening sentence: “Where the president has failed, House Republicans will lead.” It hyped the danger of deficits, yet even on its own (not at all credible) accounting, spending cuts were used mainly to pay for tax cuts rather than deficit reduction. The transparent and obvious goal was to use deficit fears to impose a vision of small government and low taxes, especially on the wealthy.

So the House budget proposal revealed a yawning gap between the two parties’ priorities. And it revealed a deep difference in views about how the world works.

When the proposal was released, it was praised as a “wonk-approved” plan that had been run by the experts. But the “experts” in question, it turned out, were at the Heritage Foundation, and few people outside the hard right found their conclusions credible. In the words of the consulting firm Macroeconomic Advisers — which makes its living telling businesses what they need to know, not telling politicians what they want to hear — the Heritage analysis was “both flawed and contrived.” Basically, Heritage went all in on the much-refuted claim that cutting taxes on the wealthy produces miraculous economic results, including a surge in revenue that actually reduces the deficit.

By the way, Heritage is always like this. Whenever there’s something the G.O.P. doesn’t like — say, environmental protection — Heritage can be counted on to produce a report, based on no economic model anyone else recognizes, claiming that this policy would cause huge job losses. Correspondingly, whenever there’s something Republicans want, like tax cuts for the wealthy or for corporations, Heritage can be counted on to claim that this policy would yield immense economic benefits.

http://www.nytimes.com/2011/04/18/opinion/18krugman.html?src=ISMR_AP_LO_MST_FB&pagewanted=print