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El Minion
09-29-2011, 05:22 PM
6 Ways the Rich Are Waging a Class War Against the American People (http://www.alternet.org/economy/152512/6_ways_the_rich_are_waging_a_class_war_against_the _american_people/?page=entire)

Denying the very existence of an entire class of citizens? That's waging some very real warfare against them.

September 25, 2011 |

There hasn't been any organized, explicitly class-based violence in this country for generations, so what, exactly, does “class warfare” really mean? Is it just an empty political catch-phrase?

http://images.alternet.org/images/managed/storyimages_1316805094_classwar1.jpg_640x640_310x2 20

The American Right has decided that returning the tax rate paid by the wealthiest Americans from what it was during the Bush years (which, incidentally, featured the slowest job growth under any president in our history, at 0.45 percent per year (http://www.presidentreagan.info/comparisons/post_wwii_job_creation.cfm)) to what they forked over during the Clinton years (when job growth happened to average 1.6 percent per year) is the epitome of class warfare. Sure, it would leave top earners with a tax rate 10 percentage points below what they were paying after Ronald Reagan's tax cuts, but that's the conservative definition of "eating the rich" these days.

I recently offered a less Orwellian definition (http://www.alternet.org/story/152470/real_class_war_is_working_to_keep_those_below_you_ down/), arguing that real class warfare is when those who have already achieved a good deal of prosperity pull the ladder up behind them by attacking the very things that once allowed working people to move up and join the ranks of the middle class.

But there's another way of looking at “class war”: habitually vilifying the unfortunate; claiming that their plight is a manifestation of some personal flaw or cultural deficiency. Conservatives wage this form of class warfare virtually every day, consigning millions of people who are down on their luck to some subhuman underclass.

The belief that there exists a large pool of “undeserving poor” who suck the lifeblood out of the rest of society lies at the heart of the Right's demonstrably false “culture of poverty” narrative. It's a narrative that runs through Ayn Rand's works. It comes to us in bizarre spin that holds up the rich as “wealth producers” and “job creators.”

And it affects our public policies. In his classic book, Why Americans Hate Welfare (http://www.powells.com/partner/32513/biblio/9780226293646), Martin Gilens found a striking disconnect: significant majorities of Americans told pollsters that they wanted public spending to fight poverty to be increased at the same time that similar majorities said they were opposed to welfare. Gilens studied a number of different opinion polls and concluded that the disconnect was driven by a widespread belief that “most welfare recipients don't really need it,” and by racial animus – “perceptions that welfare recipients are undeserving and blacks are lazy.”

That narrative ignores two simple and indisputable truths. First, contrary to popular belief, we don't all start out with the same opportunities. The reality is that in the U.S. today, the best predictor of a newborn baby's economic future is how much money his or her parents make.

It also ignores the fact that living in an individualistic, capitalist society carries inherent risk. You can do everything right – study hard, work diligently, keep your nose clean – but if you fall victim to a random workplace accident, you can nevertheless end up being disabled in the blink of an eye and find yourself in need of public assistance. You can end up bankrupt under a pile of healthcare bills or you could lose your job if you're forced to take care of an ailing parent. Children – innocents who aren't even old enough to work for themselves – are among the largest groups receiving various forms of public assistance.

Of course, there are always people who game the system, but they represent a tiny minority of recipients; a Massachusetts study found that fully 93 percent (http://newpol.org/node/395) of all cases of “welfare fraud” were committed not by the “undeserving poor,” but by vendors – hospitals, pharmacies, nursing homes, etc.

Smearing those who face real structural barriers to achievement or who will inevitably face real and random misfortunes in a “dynamic,” capitalist society – that's some real class warfare. Here are six excellent examples of the form.

1. Registering the Poor to Vote is 'UnAmerican'

Matthew Vadum is a very special wingnut. His current pre-occupation is attacking Zombie ACORN -- an organization that sane people know to have been killed off last year by James O'Keef's selectively-edited videos but which Vadum insists is alive and well and looking to undermine America by organizing poor communities.

Vadum recently wrote a very special column (http://www.americanthinker.com/2011/09/registering_the_poor_to_vote_is_un-american.html) in The American Thinker, in which he railed against efforts to get poor people registered to vote. What made the column noteworthy is that Vadum skipped the usual conservative blather about “voter fraud” – a problem that's virtually nonexistent (http://beta.alternet.org/news/148688/baseless_claims_of_voter_fraud_whip_tea_partiers_i nto_a_paranoid_frenzy/comments/) – and offered a refreshingly honest take on the subject. The problem, according to Vadum, is that “the poor can be counted on to vote themselves more benefits by electing redistributionist politicians. Welfare recipients are particularly open to demagoguery and bribery.”
Registering them to vote is like handing out burglary tools to criminals. It is profoundly antisocial and un-American to empower the nonproductive segments of the population to destroy the country -- which is precisely why Barack Obama zealously supports registering welfare recipients to vote.
Rarely has so much wrongness been packed into so few words. Less than half of those receiving Temporary Assistance for Needy Families (http://www.acf.hhs.gov/programs/ofa/character/fy2009/tab30.htm) (TANF) – the most significant anti-poverty program remaining in our welfare system after the Clinton-era “reforms” – are unemployed. About a quarter work jobs that earn poverty wages, and the rest aren't in the workforce because they're disabled, caring for a relative or they're children. In fact, almost half (http://www.acf.hhs.gov/programs/ofa/character/fy2009/tab05.htm) (48.1 percent) of all TANF families receive benefits only for the kids, not the adults. It's true that children are, in strictly economic terms, “nonproductive,” but they will be productive someday, and more so if they receive adequate nutrition, housing, health care and the like.

The other problem with this argument is the idea that the poor vote for “redistributionist politicians.” First, because all politicians are ”redistributionist” (http://www.alternet.org/teaparty/152148/the_founding_fathers_believed_in_redistributing_we alth__why_do_tea_party_heroes_like_perry_and_bachm ann_vilify_it) – it's what government does – and second, because, as Martin Gilens discovered, while Americans hate the word “welfare,” large majorities – 71 percent of Americans; not just the poor – believe that spending on anti-poverty programs should be increased (as long as you don't call it welfare).

Contrary to Vadum's beliefs, there is only a small number of true reactionaries who desire to live in a society that doesn't care for the poor and disabled, and it is in fact they who are “profoundly antisocial.”

2. Unemployment Benefits Have Created a 'Nation of Slackers'

Media Matters says (http://politicalcorrection.org/blog/201109160005), “It's taken three years, but America has finally graduated from being 'a nation of whiners' in 2008 to 'a nation of slackers' in 2011 — at least, that's what Rep. Steve King (R-IA) believes we've accomplished.” King, a right-winger's right-winger, took to the floor of the House to deliver this word-salad:
The former speaker of the House, Speaker Pelosi, has consistently said that unemployment checks are one of those reliable and immediate forms of economy recovery, that you get a lot of bang for your buck when you pay people not to work, and they will go out and spend that money immediately, therefore we should pass out unemployment checks and stimulate the economy. That statement is ridiculous where I come from, Mr. Speaker. To pay people not to work, and somehow in that formula it stimulates the economy.…
The 80 million Americans that are of working age but are simply not in the workforce need to be put to work. We can't have a nation of slackers... We've gotta get this country back to work and get those people out of the slacker rolls and onto the employed rolls.
Here, too, we have a shining gem of wrongness. And a common one – the belief that unemployment benefits discourage people from working is widespread on the Right.

Here's a simple reality-check: there are no jobs! According to the Economic Policy Institute (http://www.epi.org/publication/labor-day-by-the-numbers-2011/), “there are 6.9 million fewer jobs today than there were in December 2007.” Of course, the working-age population has grown by over 4 million (http://www.bls.gov/fls/flscomparelf/population.htm#table4_1) in that same time. Do the math. As Mike Thornton noted (http://www.alternet.org/story/152401/11_reasons_why_the_unemployment_crisis_is_even_wor se_than_you_think/?page=2) on AlterNet, when you add people who are working a part-time gig but want a full-time job to the unemployed, you get 25.4 million workers vying for 3.2 million full-time job openings, “or 8 unemployed or underemployed workers per job.”

This is more of the same: King's painting a picture of the undeserving poor living the good life on the tab of hard-working Americans. So it's worth noting that among developed countries, the US offers some of the stingiest unemployment benefits around – only two countries in the Organization for Economic Cooperation and Development (OECD) replaced a smaller share of a worker's earnings (http://www.oecd.org/dataoecd/28/9/36965805.pdf) than the U.S. in 2004, and only the Czech Republic offered unemployment coverage for a shorter time.

In 2008, those unemployed Americans who qualified for benefits got $293 per week, or about 35 percent of their lost income, and that's why conservative spin that the jobless are living it up on their unemployment checks instead of trying to find work is so ludicrous. (There is, however, some evidence that this is actually true in places like Scandinavia, where people who lose their jobs still take in 70 percent or more of their income, and in some cases can do so for an unlimited amount of time.)

King drives his point home using a classic tactic: take big numbers out of context to distort reality. There are in fact 85 million “Americans that are of working age but are simply not in the workforce,” and he would have you believe they're all “slackers.” But that figure includes stay-at-home spouses, people who live off of investment income rather than a job, entrepenuers, and of course the disabled and ill – people who can't work. Back in January 2001 (http://www.bls.gov/news.release/history/empsit_02022001.txt), when the unemployment rate was just 4.2 percent, there were 69 million working-age adults who weren't in the labor force. And the working-age population has grown by about 22 million since then.

And, of course, Nancy Pelosi was right (http://mediamatters.org/research/201007020030) that unemployment benefits have a huge amount of stimulus bang-for-the-buck -- King is not only a brazen class warrior, he's also economically illiterate.

3. You Can't Really Be Poor if You Have a Color TV!

Is it not the height of class war to make a conscious effort to erase the poor from the public's view? That has been a longterm project on the Right, and one of the classic, if shopworn arguments goes like this (http://www.heritage.org/research/reports/2007/08/how-poor-are-americas-poor-examining-the-plague-of-poverty-in-america): back in the 1930s (or 1950s, or 1970s, depending on the speaker), most poor people didn't own color TVs, but now 97 percent of them do! So the poor really should stop b****ing – they're living the high life!

Now, as of this writing, Craigslist offers the following items for free in the San Francisco Bay area (http://sfbay.craigslist.org/zip/): several TVs, multiple armchairs, a set of swivel bar stools, a stainless steel refrigerator, a Nordictrak elliptical trainer, a bunch of sofas and bed-sets – including a “like new” leather couch – a countertop grill, a ”beautiful pine armoir” and some “Hydro Massage Soaking Tub and Sinks.” Those are just the listings posted in one morning. We create a lot of goods and people want the shiniest, newest things, so there are a ton of obsolete but still functional items like TVs and washer-dryers out there that one can get for nothing or next to nothing.

Perhaps my favorite example of the genre is the claim, accurate but divorced from context, that our poor have it good because they don't necessarily live in shoe-boxes. As the Wall Street Journal was happy to point out (http://online.wsj.com/article/0,,SB108751426815241018,00.html?mod=opinion_main_r eview_and_outlooks), “The average living space for poor American households is 1,200 square feet. In Europe, the average space for all households, not just the poor, is 1,000 square feet.” Case closed! American-style capitalism for the win!

Well, not really. This is a simple matter of population density: in the EU-15, there are 120 people per square kilometer; in the United States, we only have 29 people per kilometer. And that average obviously includes people living in sparsely populated rural expanses. I live in a tightly packed U.S. city, and given that most middle-class people here can’t even dream of affording 1,200 square feet, I don’t think our poor folks can either.

4. Food-Stamps: 'A Fossil That Repeats All the Errors of the War on Poverty'

Sometimes what passes for an “argument” is just stating a simple reality in an ominous tone. Consider this string of English words (http://www.alternet.org/blogs/rights/144248/conservative_hypocrisy:_food_stamps_are_hand-outs_to_the_lazy_..._until_i_need_them/), offered by the Heritage Foundation's Robert Rector:
"Some people like to camouflage this by calling it a nutrition program, but it's really not different from cash welfare," said Robert Rector of the Heritage Foundation, whose views have a following among conservatives on Capitol Hill. "Food stamps is quasi money."
There are strict limits on what can be purchased with food stamps, which isn't true of money, but, yes, they do contribute to a household's financial health in the same way that cash does. That doesn't negate the fact that it is, indeed, a nutrition program. But Rector wasn't done – it gets better:
Arguing that aid discourages work and marriage, Mr. Rector said food stamps should contain work requirements as strict as those placed on cash assistance. "The food stamp program is a fossil that repeats all the errors of the war on poverty," he said.
Perhaps this works in the same magical way that gay marriage “discourages marriage” – I don't know. But what is clear is that, in the words of one anti-hunger activist, "Without food stamps, we'd have starvation." According to the USDA (http://www.ers.usda.gov/Briefing/FoodSecurity/), “14.5 percent of households were food insecure at least some time during” the past year, and “5.4 percent of households experienced food insecurity in the more severe range, described as very low food security.” It's also the case that about a third of those who are eligible to receive nutritional assistance don't, in part because of the stigma that people like Robert Rector has worked so hard to encourage.

These are real people experiencing very real problems making ends meet, yet Rector and his ilk would make it more difficult to get assistance because they've embraced the fact-free idea that the poor are plagued with a “culture of dependency.” That's some serious class warfare.

5. 'The Main Causes of Child Poverty Are Low Levels of Parental Work and the Absence of Fathers.'

On Wednesday, the New York Yankees clinched the American League East title. On Thursday, it rained in New York. There is a correlation here, but only a fool would suggest that the Yanks' victory caused it to rain the following day.

Yet, the Heritage Foundation (it happens to be Robert Rector again) sees a lot of poor, single-parent households, and would have you believe (http://blog.heritage.org/2011/08/17/one-in-five-children-poor%E2%80%94but-what-does-that-mean/) that “the main causes of child poverty are low levels of parental work and the absence of fathers.”

This gets the causal relationship wrong. The number of single-parent households exploded between the 1970s and the 1990s – more than doubling (http://www.edu.pe.ca/southernkings/familysingle.htm) -- yet the poverty rate remained relatively constant. In fact, before the crash of 2008, the poverty rate was lower than it had been in the 1970s. So, as the rate of single-parent households skyrocketed, poverty declined a little bit. Saying single-parent homes create poverty is therefore like claiming that the Yankees victory caused the sun to shine the next day.

As I noted (http://www.alternet.org/module/printversion/151830) recently, this is an essential piece of the “culture of poverty” narrative, and it is nonsense. Jean Hardisty, the author of Marriage as a Cure for Poverty: A Bogus Formula for Women, cited a number of studies showing that poor women have the same dreams as everyone else: they “often aspire to a romantic notion of marriage and family that features a white picket fence in the suburbs.” But low economic status leads to fewer marriages, not the other way around.

In 1998, the Fragile Families Study looked at 3,700 low-income unmarried couples in 20 U.S. cities. The authors found that 90 percent of the couples living together wanted to tie the knot, but only 15 percent had actually done so by the end of the one-year study period. And here’s the key finding: for every dollar that a man’s hourly wages increased, the odds that he’d get hitched by the end of the year rose by 5 percent. Men earning more than $25,000 during the year had twice the marriage rates of those making less than $25,000.

Writing up the findings for the Nation, Sharon Lerner noted that poverty itself “seems to make people feel less entitled to marry.” As one father in the survey put it, marriage means “not living from check to check.”

El Minion
09-29-2011, 05:26 PM
6. Taxing Working People Less Than the Rich Is 'Perverse'

That half of Americans “pay no taxes” is a simple lie that will never die, regardless of how frequently it is debunked. It's pure class-war, feeding into the narrative of the parasitic poor feeding off the blood of the industrious. And it is totally divorced from reality – in the real world, the working poor and the wealthy have virtually the same tax rates.

Yet the belief that only a minority pay taxes is ubiquitous among conservatives. Senator Orrin Hatch, R-Utah, said last month (http://politicalcorrection.org/blog/201108040003), "I don't want to tax the truly poor, those who would help themselves if they could, but you can't tell me that 51 percent of all households are the truly poor.” And here's where the lie was created: “No matter what these Democrats tell you,” he said, “the wealthy and middle class are already shouldering around 100 percent of the nation's tax burden and 51 percent pay absolutely nothing in income taxes."

Note the sleight-of-hand. Federal income taxes make up only 18 percent of the taxes collected in this country. It also happens to be among the more progressive taxes, and with median wages stagnating for years, many people today don't earn enough to have to pay them.

Hatch takes this fact, which again pertains to less than a fifth of the country's total tax burden, and transforms it into “the wealthy and middle class are already shouldering around 100 percent of the nation's tax burden” – completely and totally untrue. If we looked only at the regressive payroll tax, and dishonestly pretended that no other taxes exist, we could make a similarly twisted argument that the wealthy pay virtually nothing in taxes – billionaire investor Warren Buffett doesn't pay a penny in payroll taxes.

When you include all taxes – not just those that erase working people's contributions – you see that we really have something close to a flat tax. That’s the conclusion of a 2007 study by Boston University economists Laurence J. Kotlikoff and David Rapson, who found that when you add it all up — state and local taxes, federal taxes and excise fees – “The average marginal tax rate on incomes between $20,000 and $500,000 is 40.3%, the median tax rate is 41.8%, and the standard deviation of all of those rates is 5.3 percentage points. Basically, most of us pay about 40%, plus or minus 5.3 percentage points.”

Class War

All of these narratives are designed to protect a status quo that's serving the interests of a rarified elite, but is obviously not working well for the working majority in this country. All are intended to distract from the structural causes of poverty and inequality, or to ignore the fact that some people will always experience genuine misfortune – the myriad surprises in life that can happen to anyone – because they'd choose low taxes over caring for them.

But it's also a narrative that denies the very existence of class differences in this country. As noted earlier, the United States is anything but a true meritocracy. What millions of white working-class Americans understand – intuitively, even if they can't articulate it – is that class still matters. And by erasing the very idea of class, of structural barriers to getting ahead in this economy, they are left with a nagging sense of grievance against those they perceive to be bringing them down: foreign powers, immigrants, people of color and liberals, with their “job-killing” regulations and the like.

Ultimately, to deny the very existence of an entire class of citizens is to wage some very real warfare against them.

<!-- author bio -->Joshua Holland is an editor and senior writer at AlterNet. He is the author of The 15 Biggest Lies About the Economy: And Everything else the Right Doesn't Want You to Know About Taxes, Jobs and Corporate America (http://www.powells.com/partner/32513/biblio/9780470643921). Drop him an email (%20joshua.holland@alternet.org) or follow him on Twitter (http://twitter.com/JoshuaHol).

Rigs11
09-29-2011, 06:15 PM
Yep,the GOP just introduced a bill that cuts heating for the poor and education.but that's not class warfare.

W*GS
09-29-2011, 07:03 PM
The rich and their GOP/'bagger toadies are basically giving a giant finger to us...

http://dorrys.com/wp-content/uploads/2010/03/flip-the-bird1.jpg

L.A. BRONCOS FAN
09-30-2011, 12:01 AM
^

And the mouth breathers who support them always say "thank you sir - may I have another?"

cutthemdown
09-30-2011, 04:07 AM
^

And the mouth breathers who support them always say "thank you sir - may I have another?"

Keep pouring on those facts you fraud.

cutthemdown
09-30-2011, 04:11 AM
People abuse disability way more then unemployment. At least in CA. I know several people that got doctors to put them on disability before they got laid off. Just flat pays way better then unemployment.

We need more jobs, its not the tax code that kills us. Even if you gave 1 trillion more of the riches money to Obama we would still be in the same boat. Hell he pisses about 500 million before breakfast each day. His wife alone would spend that. :) Somehow we have to make it worth it for companies to manufacture more in the USA. I just dont see how taxing the rich is going to do that.

El Minion
09-30-2011, 04:30 PM
F jobs, it is all about taxes, tax holidays that is and tax holidays that will create zero jobs.

Google Joins Apple in Push for Tax Holiday (http://www.bloomberg.com/news/2011-09-29/google-joins-apple-mobilizing-lobbyists-to-push-for-tax-holiday-on-profits.html)

<cite class="byline"> By Richard Rubin and Jesse Drucker - <script type="text/javascript">document.write(dateFormat(new Date(1317268860000),"mmm d, yyyy h:MM TT Z"));</script> <noscript>Thu Sep 29 04:01:00 GMT 2011</noscript> </cite>


As a coalition led by Apple Inc. (AAPL) (http://www.bloomberg.com/apps/quote?ticker=AAPL:US), Google Inc. (GOOG) (http://www.bloomberg.com/apps/quote?ticker=GOOG:US), and Cisco Systems Inc. (CSCO) (http://www.bloomberg.com/apps/quote?ticker=CSCO:US) presses for a tax holiday on more than $1 trillion in offshore profits, it is turning to a well-positioned lobbyist: Jeffrey Forbes, once chief of staff to Max Baucus (http://topics.bloomberg.com/max-baucus/), chairman of the tax-writing Senate Finance Committee.

Data compiled by Bloomberg News show that Forbes is part of an army of more than 160 lobbyists, including at least 60 who once worked for a sitting member of the House or Senate, pushing for the repatriation holiday. Their job is to persuade Congress to establish a tax break estimated to cost the U.S. government $78.7 billion over the next decade.

Independent studies have found that the last time this tax break was tried, in 2004, the bargain rate for bringing home offshore profits did little to spur hiring or domestic investment. Most of the money was used to buy back stock.

“This is an issue that involves a whole lot of people hired by corporations that are pushing for those corporate interests rather than the public interest,” said James A. Thurber, director of the Center for Congressional and Presidential Studies at American University in Washington (http://topics.bloomberg.com/washington/).
Though the studies found that money brought home in 2004 ended up benefiting a narrow set of shareholders, support is growing in Congress for the tax holiday as companies expand their roster of lobbyists. One case they are making is that the potential flood of cash will boost the faltering U.S. economy.

Complex Issues

“There are many issues that are very important but are complex and don’t seem of great importance to the wider public - - those are the issues primed for having people who formerly worked on the Hill or executive branch intervening in making policy,” Thurber said.

Those with Capitol Hill connections who are lobbying for the repatriation tax break include former Louisiana Representative Jim McCrery, who until 2009 was the top Republican on the U.S. House’s tax-writing Ways and Means Committee; Dena Battle, the former legislative director for that committee’s current chairman, Representative Dave Camp (http://topics.bloomberg.com/dave-camp/), a Michigan Republican; and at least four former staffers for House Speaker John Boehner (http://topics.bloomberg.com/john-boehner/).

Michael Steel (http://topics.bloomberg.com/michael-steel/), a spokesman for Boehner, an Ohio Republican, said former staff members don’t influence policy. “The speaker makes such decisions based on what is best for his constituents and the American people,” Steel said.

‘Regenerate the Economy’

Advocates for the break say a repatriation holiday would bring more than $1 trillion to the U.S. now held overseas.

“It would do much to regenerate the economy,” said Robert Livingston, a former Republican chairman of the House Appropriations Committee and speaker-designate who is now lobbying for Oracle Corp. (ORCL) (http://www.bloomberg.com/apps/quote?ticker=ORCL:US) “A total of $1.5 trillion from all affected U.S. companies would go a long way to pull us out of the doldrums.”

There are more insiders pushing for the tax holiday than those in Bloomberg News’ tally of at least 60. That figure includes only registered lobbyists who worked for a sitting member of Congress and disclosed lobbying on the issue for the WIN America Campaign, the group of companies (http://www.winamericacampaign.org/supporters/) seeking the break, or for one of the companies or associations in the coalition.

WIN America is coordinated by SKDKnickerbocker, a Washington political consulting and public relations firm, which includes as a managing director Anita Dunn, former communications director for President Barack Obama (http://topics.bloomberg.com/barack-obama/). Dunn isn’t a registered lobbyist.

Longtime Fixtures

The list of more than 160 lobbyists includes other longtime fixtures in Washington, such as former Representative Livingston; Democratic fundraiser Tony Podesta; and Kenneth Kies, former chief of staff of the congressional Joint Committee on Taxation.

The proposed break has gained momentum in recent months, with several prominent Democrats, including Senator Charles Schumer (http://topics.bloomberg.com/charles-schumer/) of New York, expressing a willingness to consider the tax holiday. Meanwhile, Republican presidential candidates Michele Bachmann (http://topics.bloomberg.com/michele-bachmann/), a House member from Minnesota, and Texas Governor Rick Perry (http://topics.bloomberg.com/rick-perry/) have called on Congress to let companies bring home offshore earnings at a reduced tax rate (http://topics.bloomberg.com/tax-rate/).

The Obama administration has said it is opposed to a stand- alone tax holiday for repatriated profits, pointing to the 2004 experience. Obama has been taking aim at tax breaks benefiting certain industries, such as oil and gas, and deductions and exclusions claimed by millionaires. He has embraced changes suggested by billionaire Warren Buffett (http://topics.bloomberg.com/warren-buffett/), who has said he pays taxes at a lower rate than his secretary.

U.S. multinational companies have amassed more than $1.375 trillion in profits overseas on which they have paid no federal income tax, according to a recent report by JPMorgan Chase & Co. (JPM) (http://www.bloomberg.com/apps/quote?ticker=JPM:US) When the earnings are returned to the U.S. -- or repatriated -- they are taxed at the top corporate rate of 35 percent, with credits for foreign income taxes paid.

Reprising 2004 Holiday

The companies are pushing to reprise the 2004 holiday that allowed them to bring home offshore earnings at a low tax rate of 5.25 percent. Under that break, companies repatriated to the U.S. $312 billion, largely for stock repurchases rather than direct hiring or investment, according to a recent paper in the Journal of Finance, the latest in a series of studies that reached similar conclusions.

The proposed holiday would reward the companies that have most aggressively parked profits in tax havens such as Bermuda, the Cayman Islands (http://topics.bloomberg.com/cayman-islands/) and Switzerland, said Martin A. Sullivan, a former Treasury Department economist and contributing editor for the non-partisan Tax Notes.

“A lot of what companies report as foreign profit is really U.S. profit that should be subject to U.S. tax,” Sullivan said. “Those earnings didn’t get overseas by accident. Many of these companies intentionally put them there to avoid paying U.S. taxes.”

Tally of Lobbyists

Bloomberg’s tally covers individuals who were registered to lobby on the repatriation issue at some point in the first half of this year, the period for which records are available. Some of the lobbyists have since left their firms. The figures don’t include those who were listed as lobbying on general tax issues for companies in the WIN America coalition, except where the lobbyists confirmed to Bloomberg News that they were working on repatriation.

Newer members of the revolving-door community are involved, such as Danielle Maurer, a lobbyist at the Republican firm of Fierce, Isakowitz & Blalock. It has been paid $160,000 so far this year by Oracle to lobby on a variety of tax issues, and the Win America coalition recently hired the firm. Maurer had been director of member services for Boehner, helping assign House members to committees.

Baucus Alumni

In all, three former staffers of Baucus, the Finance Committee’s chairman since 2007, are lobbying on the repatriation holiday. Besides Forbes, there’s Nick Giordano of Washington Council Ernst & Young, a longtime Cisco lobbyist. Microsoft has retained Timothy E. Punke, a former adviser to Baucus on trade issues who is active in Democratic politics.

The WIN America campaign’s manager is Karen Olick, former chief of staff to Senator Barbara Boxer (http://topics.bloomberg.com/barbara-boxer/), a California Democrat. One of the spokesmen for the group is Doug Thornell, who most recently was a staffer for Representative Chris Van Hollen (http://topics.bloomberg.com/chris-van-hollen/), a Maryland Democrat who is a member of the House leadership. Like Anita Dunn, Thornell and Olick aren’t registered lobbyists.

“Our economy needs all the help it can get, and leaving this money in foreign banks when we could bring it home now makes no sense,” Thornell said.

To contact the reporters on this story: Richard Rubin in Washington at rrubin12@bloomberg.net; Jesse Drucker in New York (http://topics.bloomberg.com/new-york/) at jdrucker4@bloomberg.net;

To contact the editor responsible for this story: Mark Silva at Msilva34@bloomberg.net

El Minion
09-30-2011, 04:35 PM
F jobs, it is all about taxes, tax holidays that is and tax holidays that will create zero jobs.

Google Joins Apple in Push for Tax Holiday (http://www.bloomberg.com/news/2011-09-29/google-joins-apple-mobilizing-lobbyists-to-push-for-tax-holiday-on-profits.html)



CHART: Lower Taxes On The Rich Don’t Lead To Job Growth (http://thinkprogress.org/economy/2011/06/28/256605/chart-lower-taxes-on-the-rich-dont-lead-to-job-growth/)

By Pat Garofalo (http://thinkprogress.org/author/pat-g/) on Jun 28, 2011 at 8:10 pm
http://thinkprogress.org/wp-content/uploads/2011/06/boehnertaxeswrong0628.jpg

Wrong about taxes and job creation.

Congressional Republicans — during both last year’s debate over the pending expiration of the Bush tax cuts and the current negotiations regarding raising the nation’s debt ceiling — refused to consider tax increases on even the very richest Americans. In fact, House Majority Leader Eric Cantor (R-VA) blew up debt ceiling negotiations last week due to his insistence that those making more than $500,000 annually (http://thinkprogress.org/economy/2011/06/24/253721/gop-blew-up-debt-negotiations-to-protect-tax-breaks-for-people-making-500000-or-more/) be shielded from any tax increase.

The GOP justification for its position — even with income inequality at its worst level since the 1920s (http://www.cbpp.org/cms/index.cfm?fa=view&id=2908) — is that raising taxes on the rich will destroy jobs. “What some are suggesting is that we take this money from people who would invest in our economy and create jobs (http://www.americanprogress.org/issues/2011/06/marginal_tax_employment_charticle.html) and give it to the government. The fact is you can’t tax the very people that we expect to invest in the economy and create jobs,” said Speaker of the House John Boehner (R-OH).

However, history doesn’t back up the GOP’s claim. In fact, as Center for American Progress Director of Tax and Budget Policy Michael Linden found, “in the past 60 years, job growth has actually been greater (http://www.americanprogress.org/issues/2011/06/marginal_tax_employment_charticle.html) in years when the top income tax rate was much higher than it is now”:

For instance, in years when the top marginal rate was more than 90 percent, the average annual growth in total payroll employment was 2 percent. In years when the top marginal rate was 35 percent or less — which it is now — employment grew by an average of just 0.4 percent.

And there’s no cherry-picking here. Pick any threshold. When the marginal tax rate was 50 percent or above, annual employment growth averaged 2.3 percent, and when the rate was under 50, growth was half that.

In fact, if you ranked each year since 1950 by overall job growth, the top five years would all boast marginal tax rates at 70 percent or higher. The top 10 years would share marginal tax rates at 50 percent or higher. The two worst years, on the other hand, were 2008 and 2009, when the top marginal tax rate was 35 percent. In the 13 years that the top marginal tax rate has been at its current level or lower, only one year even cracks the top 20 in overall job creation.

<center>http://thinkprogress.org/wp-content/uploads/2011/06/jobsvtaxeschart0628.jpg</center>
Contrary to Republican claims, lower taxes on the rich don’t lead to higher economic growth either (http://thinkprogress.org/economy/2011/06/20/249061/chart-taxes-economic-growth/).

Odysseus
10-01-2011, 02:20 PM
People abuse disability way more then unemployment. At least in CA. I know several people that got doctors to put them on disability before they got laid off. Just flat pays way better then unemployment.

We need more jobs, its not the tax code that kills us. Even if you gave 1 trillion more of the riches money to Obama we would still be in the same boat. Hell he pisses about 500 million before breakfast each day. His wife alone would spend that. :) Somehow we have to make it worth it for companies to manufacture more in the USA. I just dont see how taxing the rich is going to do that.

A lot of things are considered common sense after the fact. I wish it were easy to make some of this stuff clear for all to see but the current environment of antipathy makes even the most basic communication impossible.

cutthemdown
10-01-2011, 09:45 PM
A lot of things are considered common sense after the fact. I wish it were easy to make some of this stuff clear for all to see but the current environment of antipathy makes even the most basic communication impossible.

is antipathy like not caring? I almost think its more people care so much they get polarized and can't think straight. Can't see sometimes both sides have some good ideas. I like the idea of getting money back to the usa with the tax holiday, but maybe with a catch they have to spend so much of it investing and not just buying back stock.

So they did this in 2004? Can't say I remember us talking about it. Chances are we were arguing about Saddam.

Odysseus
10-03-2011, 01:19 AM
is antipathy like not caring? I almost think its more people care so much they get polarized and can't think straight. Can't see sometimes both sides have some good ideas. I like the idea of getting money back to the usa with the tax holiday, but maybe with a catch they have to spend so much of it investing and not just buying back stock.

So they did this in 2004? Can't say I remember us talking about it. Chances are we were arguing about Saddam.

Globalization is here to stay and a lot of the aggressive moves by the Right are delaying tactics to protect Institutions that provide them cash flow. The problem is the Left has very little business sense so they compromise other resources in pursuit of "transparency" and forced agenda.

If you look at the global corruption index America is 7.1. The combined BRIC score is 3.15. Seriously? We have to drop our pants in order to compete? When did we stop educating people on what the choices are? Why are we focused on supporting failed institutions, failed politics, failed policies, and the incestuous stupidity of the few?

The problem is there is no common ground. We cannot trust religion, economics, government, business, or the common ground where we should be able to dialog. Why isn't this the dialog instead of pretend solutions for misunderstood problems?

There is a sharp increase in Cut and paste cowboys who only have three ideas. Cut, paste, and talk trash. Being right is not thinking. Saying I told you so adds zero value to the larger questions. It's like watching monkeys flinging poo or opening a ****ter door and watching some dude drop a deuce. I really don't consider that honorable or clever. Wouldn't you agree?

alkemical
10-03-2011, 06:14 AM
Sorry Ody - the only thing left are the cannibals here. Also, i laugh at this idea of "middle class" - unless your household brings in $70k and you have health care - you ain't middle class.

Smiling Assassin27
10-03-2011, 08:25 AM
The funny/sad part is that people are foolishly looking for the government to rectify this situation and what do they get, but a Financial Reform bill in which the government ignores the market (and actual costs/risks associated with debit purchases) and dictates to financial institutions just how much they are allowed to charge merchants on transaction fees for debit card purchases. Just like every industry before it in which government imposes false price restrictions (and guys like Rohirrim get the vapors of ecstasy), this industry just took its newly impending $6B loss and shifted that cost to--the rank and file of America who use debit cards. Yup, you and I.

Thank you Democrats for giving us this horrible Financial Reform bill and this totally unrelated debt card 'reform' that will now cost me and other middle/upper middle classers a lot more. The term 'unintended consequences' seems to be simultaneously unknown but inevitable when fools like Durbin legislate based on social engineering. Own it, Democrats.

mosca
10-03-2011, 09:49 AM
A lot of things are considered common sense after the fact. I wish it were easy to make some of this stuff clear for all to see but the current environment of antipathy makes even the most basic communication impossible.
An educated electorate who is willing to listen to new viewpoints and take in new information before voting is more or less a thing of the past. People are too conditioned to watching American Idol and voting with their cellphones. Too many people don't understand that they should turn OFF the TV and turn OFF the political ads.

Odysseus
10-04-2011, 02:17 AM
An educated electorate who is willing to listen to new viewpoints and take in new information before voting is more or less a thing of the past. People are too conditioned to watching American Idol and voting with their cellphones. Too many people don't understand that they should turn OFF the TV and turn OFF the political ads.

The problem is globalization is 24/7 and does not turn itself off. How can we say the opiate trade is any worst than the global naivete trade which we purchase wholesale. (http://www.fpa.org/topics_info2414/topics_info_show.htm?doc_id=1130556)

Rather than focus on innovation we focus on excuses, explanations, and circular arguments. Attacking your fellow American is clearly not a starting point of dialog. If it is more important to be self righteous, bitter, and acerbic ultimately you will feel that you have won because people will get sick your **** and you, the king of ****, will reign uncontested.

Democracy isn't about being right or even agreeing. Democracy is about participation so a little contention is good.

The guys who posts thread after thread are children in the midst of a tantrum and it is disappointing that they don't see that. Is the only forum you can find on the global Internet? Do you not have a Twitter account for your cut and past antics? Do you think being the only voice here makes you more relevant?

I don't thinking we are uneducated as much as in the dumbing down of America has made our expectations exceedingly low.

Odysseus
10-04-2011, 02:39 AM
The funny/sad part is that people are foolishly looking for the government to rectify this situation and what do they get, but a Financial Reform bill in which the government ignores the market (and actual costs/risks associated with debit purchases) and dictates to financial institutions just how much they are allowed to charge merchants on transaction fees for debit card purchases. Just like every industry before it in which government imposes false price restrictions (and guys like Rohirrim get the vapors of ecstasy), this industry just took its newly impending $6B loss and shifted that cost to--the rank and file of America who use debit cards. Yup, you and I.

Thank you Democrats for giving us this horrible Financial Reform bill and this totally unrelated debt card 'reform' that will now cost me and other middle/upper middle classers a lot more. The term 'unintended consequences' seems to be simultaneously unknown but inevitable when fools like Durbin legislate based on social engineering. Own it, Democrats.

Thank you George Bush for being one of the worst presidents historically. Your Republican chicanery has insured that we would vote for whatever Democrat we could find to elect. Thanks for the destroying so many legislative laws that we will never get back in place again. Thanks for being focused on the wrong issues at the wrong times. Thanks for starting wars that will continue long after we have 'left".

Thanks you Bill Clinton for staging one of the most amazing coups of logic in history by destroying Glassman Segal. You have put in place a well intentioned plan that was turned poisonous. Thanks for not taking out Osama when you had the chance.

Thank you congress for the last 20 years having not created a single piece of new legislation that supported average Americans. Thanks for one scandal after another. Thanks for endlessly never getting the point and always defending institutions above common sense. Thanks for Bernie Madoff, Enron, and the S&L scandal to name a few. Thanks for having so many of your body being corrupt and compromised.

cutthemdown
10-04-2011, 03:14 AM
Thank you George Bush for being one of the worst presidents historically. Your Republican chicanery has insured that we would vote for whatever Democrat we could find to elect. Thanks for the destroying so many legislative laws that we will never get back in place again. Thanks for being focused on the wrong issues at the wrong times. Thanks for starting wars that will continue long after we have 'left".

Thanks you Bill Clinton for staging one of the most amazing coups of logic in history by destroying Glassman Segal. You have put in place a well intentioned plan that was turned poisonous. Thanks for not taking out Osama when you had the chance.

Thank you congress for the last 20 years having not created a single piece of new legislation that supported average Americans. Thanks for one scandal after another. Thanks for endlessly never getting the point and always defending institutions above common sense. Thanks for Bernie Madoff, Enron, and the S&L scandal to name a few. Thanks for having so many of your body being corrupt and compromised.

So basically **** everyone, i can go along with that.

cutthemdown
10-04-2011, 03:30 AM
Sigh I will be honest it's hard to know really who do vote for. I know I don't like Obama, but Romney and Perry both flip floppers as well. Only Ron Paul sticks to his guns and has a strong moral center. Going to vote for him in the primary I think. At least politicians like Paul , Kuchinic on the left, and some others stick to their beliefs. Not like Perry who was for states being able to say gay marriage ok, then when the right bemoans it he says he is for a constitutional amendment saying its between a man and a woman. I think issues like that not very important but it shows he wont stick to his guns.

I for one would love it for a man to say look, my base won't like it, but we are for states rights even when a state goes for something we disagree with. etc etc etc. Just be a man and say this is what i believe. Hell I even think a politician could say I am personally against abortion, but a state should have the right to make it legal or illegal. We need less federal intervention so we can all live in states that make laws we like. You want morality legislated then live in Utah, you want to be gay and married then live in NY. If you want to carry guns live in ariz, if not live in CA etc etc.

What kills me about my own party is they lie. They say they want less fed, state rights, until its gay marriage, abortions, marijuana, etc etc. The dems have just always bothered me. Too much environmentalism and rules that bog down business.

I think both parties are equally sucking on the big bank tit to get money. Only Ron Paul isn't.

Rohirrim
10-04-2011, 07:34 AM
Ron Paul isn't, but I can't think of a political philosophy that would more destructive. Maybe out and out fascism.

L.A. BRONCOS FAN
10-05-2011, 10:06 PM
Keep pouring on those facts you fraud.

Thanks for letting me know my remark was on target. :wave: