Tag Archives: Federal government

SYNDICATED COLUMN: The Truth About Truthers

Why Does the US Government Create Paranoia?

“Truthers expect something from you,” an interviewer told me last week.

Indeed they do. I rarely get through a public appearance or talk-radio interview without being asked about 9/11 by a “Truther”—a person who believes that the attacks were planned and/or carried out by the U.S. government.

The 9/11 Truth movement is diverse. Some adherents think the Twin Towers and especially the Pentagon were struck by remote-controlled missiles or drone planes, not hijacked jets. Others accept the involvement of four commercial airliners in the official account but think the Twin Towers, and especially 7 World Trade Center, an office building across the street from the Twin Towers that collapsed hours later, were brought down in a staged, controlled demolition. Then there’s the “stand down” theory, which posits that the Bushies knew what was coming and ordered the military not to respond.

Theories about the execution of the 9/11 conspiracy vary. Its purpose is broadly believed to have been to cow the public into relinquishing long-cherished freedoms and liberties, opening the door to a post-9/11 police state.

As a critic of U.S. government policy, I get a lot of email from Truthers. They ask me to support their cause.

Truthers are passionate and energetic. They send links to websites, books and DVDs questioning the series of events laid out in the 9/11 Commission Report and mainstream media accounts. They remind me that the Bush and Obama Administrations have gotten caught lying about the post-9/11 war on terror. Why, then, am I not open to the possibility that 9/11 was an inside job? Am I lazy? Or some government shill? (If so I wish they’d pay me.)

I am open-minded. And I don’t trust our political leaders. So I read everything that people send me. I watched films like “Loose Change” and “In Plane Sight,” a professionally edited documentary that relies on insinuation to argue that nefarious government somebodies fired something other than hijacked jets into the World Trade Center and Pentagon.

Example: “How can a Boeing 757, which is over 44 feet in height and 124 feet in width, simply disappear without a trace into a hole that is only 16 feet in diameter? Also, why is there no external damage to the Pentagon where the wings and the tail section would have impacted with the outer wall?”

Answer: The plane hit the lawn, not the building. The Pentagon is made of reinforced WPA-era concrete. The plane’s wings were thin, light and full of jet fuel. They disintegrated upon impact.

Everything I’ve read and watched on Truther sites is like that: easily dismissed by anyone with a basic knowledge of physics and architecture. (I spent three years in engineering school.) Therefore, with one exception, I believe the official story.

The exception is United Flight 93, which crashed into a field near Shanksville, Pennsylvania.

I think there’s a possibility it was shot down by a USAF fighter jet. According to the 9/11 Commission Report a shootdown order was issued to the Air Force, which had at least one jet close enough to intercept the airliner before the crash. In addition, local media reported that the plane’s engine was found miles away from the crash site. Engines don’t bounce that far.

There was almost certainly a revolt aboard the flight. But the 9/11 Commission Report never confirms that the passengers gained access to the cockpit: “The cockpit voice recorder captured the sounds of the passenger assault muffled by the intervening cockpit door…The hijackers remained at the controls but must have judged that the passengers were only seconds from overcoming them. The airplane headed down…”

Sounds strange to me. As far as we know, the cockpit door remained locked. The hijackers knew they were going to die. Why would they give up their mission before they were forced to do so?

Of course, I don’t know what happened aboard Flight 93. I’m no expert.

I do know that most 9/11 Truther narratives don’t make sense. For example, how could workers rig up the World Trade Center for a controlled demolition—a months-long project that would require miles of cable, tens of thousands of pounds of explosives, hundreds of workers—without being noticed by the 50,000 people who worked there?

What I really don’t understand is the movement’s motivations. What do Truthers want?

For the sake of argument let’s assume that the four 9/11 planes were found at the bottom of the Atlantic Ocean, confirming that they never hit their targets. Like in the TV show “Lost.” Are Truthers naïve enough to think there would be a revolution?

“Our government has lied to us about the events of 9/11,” Truther Frank Agamemnon said last year on Russia Today TV. “And if the truth came out about it, maybe the wars would stop.”

I don’t think so. Americans didn’t rise up when Bush stole the 2000 election. They didn’t care when WMDs failed to turn up in Iraq. We did nothing about Abu Ghraib or legalized torture or a president who says he has the right to assassinate each and every one of us, even if we’re innocent of any crime. Even if 9/11 did prove to be an inside job, I predict the national reaction would be:

“Huh.”

Truthers aren’t crazy. Not most of them, anyway. They’ve glommed on to the simple (crazy) fact that there has never been a real investigation of the September 11th attacks—a query led not by a politician like former New Jersey governor Tom Kean but by incorruptible scholars and respected experts independent of the world of politics, including those from other nations. And even Kean reported that the Bush Administration dragged their feet and failed to cooperate.

Since 9/11 the media has ignored Truthers or dismissed them as wild-eyed lunatics. As we saw with the Obama birth certificate issue, however, brushing people off merely raises more questions and prolongs the discussion.

On a number of pressing issues in recent years, the federal government has refused transparency, much less a real investigation that would have enabled people to move past 9/11. After Obama took office, for instance, he announced that there would be no prosecutions or investigations of torture in Iraq or at Guantánamo under Bush.

The evolving accounts of Osama bin Laden’s death seemed ideally tailored to create the suspicion that big secrets were being covered up. First we heard that Osama came out guns blazing, then he merely had a gun, then he was unarmed, finally he was executed after he had been handcuffed. As for disposing of the body at sea, well, a certain amount of skepticism naturally follows the lack of a corpse.

The Pat Tillman and Jessica Lynch narratives followed similar trajectories.

Why does the federal government feed the conspiracy theorists? Maybe it’s unintentional, but probably not. I think the U.S. has become like a Third World dictatorship: the more they keep us guessing, the smarter they seem, and the more we’ll fear them.

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

COPYRIGHT 2011 TED RALL

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AL JAZEERA COLUMN: Tied to a Drowning Man

The interconnectedness of the world economy means that US economic woes will have severe effects on others.

During the Tajik Civil War of the late 1990s soldiers loyal to the central government found an ingeniously simple way to conserve bullets while massacring members of the Taliban-trained opposition movement. They tied their victims together with rope and chucked them into the Pyanj, the river that marks the border with Afghanistan. “As long as one of them couldn’t swim,” explained a survivor of that forgotten hangover of the Soviet collapse as he walked me to one of the promontories used for this act of genocide, “they all died.”

Such is the state of today’s integrated global economy.

Interdependence, liberal economists believe, furthers peace—a sort of economic mutual assured destruction. If China or the United States were to attack the other, the attacker would suffer grave consequences. But as the U.S. economy deteriorates from the Lost Decade of the 2000s through the post-2008 meltdown into what is increasingly looking like Marx’s classic crisis of late-stage capitalism, internationalization looks more like a suicide pact.

Like those Tajiks whose fates were linked by tightly-tied lengths of cheap rope, Europe, China and most of the rest of the world are bound to the United States—a nation that seems both unable to swim and unwilling to learn.

The collapse of the Soviet Union, a process that began in the 1970s and culminated with dissolution in 1991, had wide-ranging international implications. Russia became a mafia-run narco-state; millions perished of famine. Weakened Russian control of Central Asia, especially Afghanistan, set the stage for an emboldened and highly organized radical Islamist movement. Not least, it left the United States as the world’s last remaining superpower.

From an economic perspective, however, the effects were basically neutral. Coupled with its reliance on state-owned manufacturing industries to minimize dependence upon foreign trade, the USSR’s use of a closed currency ensured that other countries were not significantly impacted when the ruble went into a tailspin.

Partly due to its wild deficit spending on the gigantic military infrastructure it claimed was necessary to fight the Cold War—and then, after brief talk of a “peace dividend” during the 1990s, even more profligacy on the Global War on Terror—now the United States is, like the Soviet Union before it, staring down the barrel of economic apocalypse.

Read the full article at Al Jazeera English.

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AL JAZEERA COLUMN: How the US Media Marginalizes Dissent

The US media derides views outside of the mainstream as ‘un-serious’, and our democracy suffers as a result.

“Over the past few weeks, Washington has seemed dysfunctional,” conservative columnist David Brooks opined recently in The New York Times. “Public disgust [about the debt ceiling crisis] has risen to epic levels. Yet through all this, serious people—Barack Obama, John Boehner, the members of the Gang of Six—have soldiered on.”

Here’s some of what Peter Coy of Business Week magazine had to say about the same issue: “There is a comforting story about the debt ceiling that goes like this: Back in the 1990s, the U.S. was shrinking its national debt at a rapid pace. Serious people actually worried about dislocations from having too little government debt…”

Fox News, the Murdoch-owned house organ of America’s official right-wing, asserted: “No one seriously thinks that the U.S. will not honor its obligations, whatever happens with the current impasse on President Obama’s requested increase to the government’s $14.3 trillion borrowing limit.”

“Serious people.”

“No one seriously thinks.”

The American media deploys a deep and varied arsenal of rhetorical devices in order to marginalize opinions, people and organizations as “outside the mainstream” and therefore not worth listening to. For the most part the people and groups being declaimed belong to the political Left. To take one example, the Green Party—well-organized in all 50 states—is never quoted in newspapers or invited to send a representative to television programs that purport to present “both sides” of a political issue. (In the United States, “both sides” means the back-and-forth between center-right Democrats and rightist Republicans.)

Marginalization is the intentional decision to exclude a voice in order to prevent a “dangerous” opinion from gaining currency, to block a politician or movement from becoming more powerful, or both. In 2000 the media-backed consortium that sponsored the presidential debate between Vice President Al Gore and Texas Governor George W. Bush banned Green Party candidate Ralph Nader from participating. Security goons even threatened to arrest him when he showed up with a ticket and asked to be seated in the audience. Nader is a liberal consumer advocate who became famous in the U.S. for stridently advocating for safety regulations, particularly on automobiles.

Read the full article at Al Jazeera English.

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AL JAZEERA COLUMN: Too Soon To Tell

I am pleased to announce that I am now writing a weekly long-form column for Al Jazeera English. Here is my second piece for Al Jazeera:

One Year Early, Obama’s Reelection Far From Certain

The American punditocracy (and, perhaps more importantly, Las Vegas oddsmakers) currently cite Barack Obama as their odds-on favorite to win next year’s presidential election. Some even predict a landslide.

Mainstream media politicos acknowledge the atrocious economy, with its real unemployment rate nearly matching the worst years of the Great Depression of the 1930s, as an obstacle to reelection. But most of them believe that other factors will prove decisive: disarray in the field of candidates for the nomination of the opposition Republican Party, the GOP’s reliance on discredited Reagan-style austerity measures for the masses coupled with tax cuts for the wealthy, and Obama’s assassination of Osama bin Laden.

Maybe they’re right. But if I were the President, I wouldn’t be offering the White House chef a contract renewal any time soon. Count me among the majority of Americans (54 to 44 percent) who told a March 2011 CNN/Opinion Research poll they think Obama will lose the 2012 election.

I could be wrong.

Scott Keeter, director of survey research at the Pew Research Center, doesn’t think much of these so-called “trial-run” polls. “A review of polls conducted in the first quarter of the year preceding the election found many of them forecasting the wrong winner—often by substantial margins,” Keeter wrote in 2007, citing three elections as far back as 1968.

However, a historical analysis of the more recent presidential races, those over the two decades, reveals an even bigger gap. The year before a U.S. presidential election, the conventional wisdom is almost always wrong. The early favorite at this point on the calendar usually loses. So betting against the pundits—in this case, against Obama—is the safe bet at this point.

The meta question is: what difference does it make who wins next year? In practical terms, not much.

For one thing, American presidents tend to find more heartbreak than political success during their second terms. Had Richard Nixon retired in 1972, for example, he would have been fondly remembered as the architect of the Paris peace talks that ended the Vietnam War, the founder of the Environmental Protection Agency, and the defender of the working and middle class (for imposing wage and price controls to soften the effect of inflation). His second term saw him sinking into, and ultimately succumbing, to the morass of the Watergate scandal.

The next second termer, Ronald Reagan, was similarly preoccupied by scandal, in case the Iran-Contra imbroglio in which the United States traded arms to Iran in return for hostages held by students in Tehran and illegally funded right-wing death squads in Central America. Bill Clinton’s last four years were overshadowed by his developing romance, and the consequences of the revelation thereof, with intern Monica Lewinsky. George W. Bush’s second term, from 2005 to 2009, was defined by his administration’s inept response to hurricane Katrina in New Orleans, the deteriorating security situation in U.S.-occupied Afghanistan and Iraq, and the economic collapse that began in 2008. His number-one political priority, privatizing the U.S. Social Security system, never got off the ground.

Presidents rarely accomplish much of significance during their second term. So why do they bother to run again? Good question. Whether it’s ego—1600 Pennsylvania Avenue is one hell of an address—or something else, I don’t know. Whatever, I have long maintained that a sane president would think of himself as standing for one four-year term, then announce his intention not to run again at the last possible moment.

From the standpoint of the American people and the citizens of countries directly affected by U.S. foreign policy, it is unlikely that the basic nature of the beast will change much regardless of Obama’s fortunes in the next election. One only has to consider the subtle “differences” between the tenures of Presidents Bush and Obama.

On the domestic front Obama continued and expanded upon Bush’s non-reaction to the economic crisis, exploiting the panic created by widespread unemployment, the bursting of the housing bubble and a massive foreclosure crisis that put tens of millions of Americans out of their homes in order to pour hundreds of billions of federal dollars into the pockets of the top executives of the nation’s largest banks, with no resulting stimulus effect whatsoever. Controversial attacks on privacy rights and civil liberties inaugurated by the Bush years were expanded and extended: the USA-Patriot Act, the National Security Agency “domestic surveillance” program that allowed the government to spy on U.S. citizens’ phone calls, emails and other communications. Obama even formalized Bush’s assertion that the president has the right to unilaterally order the assassination of anyone, including a U.S. citizen, without evidence or proof that he or she has committed a crime.

As promised during the 2008 campaign, Obama expanded the U.S. war against Afghanistan, transforming what Bush described as a short-term attempt to find Osama bin Laden after 9/11 into the most protracted military conflict in the history of the United States. The war continued in Iraq, albeit with “combat” troops redefined as “trainers.” During the last few years, the “global war on terror” expanded into Pakistan, east Africa, Libya and Yemen. Drone attacks escalated. Violating his campaign promises, he continued to keep torture available as a legal option—indeed, he ordered it against a U.S. solder, Private First Class Bradley Manning—and kept Guantánamo and other Bush-era concentration camps open.

If Obama goes down to defeat next year, then, the results should be viewed less as a shift in overall U.S. policy—hegemonic, imperialistic, increasingly authoritarian—than one that is symbolic. An Obama defeat would reflect the anger of ordinary Americans caught in the “two-party trap,” flailing back and forth between the Dems and the Reps, voting against the party in power to express their impotent rage, particularly at the economy. Mr. Hopey-Changey’s trip back to Chicago would mark the end of a brief, giddy, moment of reformism.

The argument that an overextended, indebted empire can be repaired via internal changes of personnel would be dead. With the reformism that Obama embodied no longer politically viable, American voters would be once again faced, as are the citizens of other repressive states, with the choice between sullen apathy and revolution.

Obamaism is currently believed to be unstoppable. If history serves as an accurate predictor, that belief is good cause to predict its defeat next November.

During the late spring and early summer of 1991, just over a year before the 1992 election, President George H.W. Bush was soaring in the polls in the aftermath of the Persian Gulf War, which the American media positively portrayed as successful, quick, internationalist, and cost the lives of few America soldiers. A March 1991 CBS poll gave him an 88 percent approval rating—a record high.

By October 1991 Bush was heavily favored to win. A Pew Research poll found that 78 percent of Democratic voters thought Bush would defeat any Democratic nominee. New York governor Mario Cuomo, an eloquent, charismatic liberal star of the party, sized up 1992 as unwinnable and decided not to run.

When the votes were counted, however, Democrat Bill Clinton defeated Bush, 43 to 37.5 percent. Although Republicans blamed insurgent billionaire Ross Perot’s independent candidacy for siphoning away votes from Bush, subsequent analyses do not bear this out. In fact, Perot’s appeal had been bipartisan, attracting liberals opposed to the North American Free Trade Agreement (NAFTA) between the U.S., Canada and Mexico and globalization in general, as well as conservative deficit hawks.

The most credible explanation for Bush’s defeat was handwritten on a sign that the victorious Bill Clinton’s campaign manager famously taped to the wall of the Dems’ war room: “It’s the economy, stupid.” As the 1989-1993 recession deepened Bush’s ratings tumbled to around 30 percent. A February 1992 incident, in which Bush was depicted by The New York Times as wearing “a look of wonder” when confronted with a supermarket price scanning machine, solidified his reputation with voters as patrician, out of touch, and unwilling to act to stimulate the economy or alleviate the suffering of the under- and unemployed. “Exit polls,” considered exceptionally reliable because they query voters seconds after exiting balloting places, showed that 75 percent of Americans thought the economy was “bad” or “very bad.”

In 1995, Bill Clinton was preparing his reelection bid. On the Republican side, Kansas senator and 1976 vice presidential candidate Bob Dole was expected to (and did) win his party’s nomination. Perot ran again, but suffered from a media blackout; newspapers and broadcast outlets had lost interest in him after a bizarre meltdown during the 1992 race in which he accused unnamed conspirators of plotting to violently disrupt his daughter’s wedding. He received eight percent in 1996.

Clinton trounced Dole, 49 to 40 percent. In 1995, however, that outcome was anything but certain. Bill Clinton had been severely wounded by a series of missteps during his first two years in office. His first major policy proposal, to allow gays and lesbians to serve openly in the U.S. military, was so unpopular that he was forced to water it down into the current “Don’t Ask, Don’t Tell” compromise. Clinton’s 1993 attempt to deprivatize the healthcare system, mocked as HillaryCare after he put his wife in charge of marketing it, went down to defeat. He signed the pro-corporate, Republican-backed trade agreement, NAFTA, alienating his party’s liberal and progressive base. Low voter turnout by the American left in the 1994 midterm elections led to the “Republican Revolution,” a historic sweep of both houses of the American Congress by right-wing conservatives led by the fiery new Speaker of the House, Newt Gingrich.

1995 saw the so-called “co-presidency” between Gingrich and a cowed Bill Clinton, who was reduced to telling a press conference that “the president is relevant.” The United States, which does not have a European-style parliamentary system, had never seen a president so politically weak while remaining in office.

During the spring and summer of 1995 Bob Dole was already the heir apparent to the nomination of a Republican Party that traditionally rewards those who wait their turn. Dole was a seasoned campaigner, a Plains States centrist whose gentlemanly demeanor and credentials as a hero of World War II. Conventional wisdom had him beating Clinton. So did the polls. A March 1995 Los Angeles Times poll had Dole defeating Clinton, 52 to 44 percent in a head-to-head match-up. “Among all voters, Clinton’s generic reelect remains dismal, with 40 percent inclined to vote him in again and 53% tilting or definitely planning a vote against him,” reported the Times.

By late autumn, however, the polls had flipped. Though statisticians differ about how big a factor it was, a summer 1995 shutdown of the federal government blamed on the refusal of Gingrich’s hardline Republicans to approve the budget turned the tide. At the end of the year the die was cast. As Americans began to pay more attention to his challenger they recoiled at Dole’s age—if elected, he would have been the oldest president in history, even older than Reagan—as it contrasted with Clinton’s youthful vigor. The Democrat coasted to reelection. But that’s not how things looked at this stage in the game.

When analyzing the 2000 race, remember that Republican George W. Bush lost the election to Al Gore by a bizarre quirk of the American system, the Electoral College. The U.S. popular vote actually determines the outcome of elected delegates to the College from each of the 50 states. The winner of those delegates is elected president.

Most of the time, the same candidate wins the national popular vote and the Electoral College tally. In 2000, there is no dispute: Democrat Al Gore won the popular vote, 48.4 to 47.9 percent. There was a legal dispute over 25 electoral votes cast by the state of Florida; ultimately the U.S. Supreme Court decided, along party lines, to award the state to Bush despite clear indications that Gore would have won recounts by tens of thousands of votes in that state.

Regardless of one’s views of the 2000 Florida recount controversy, from a predictive standpoint, one should assume that Gore won because no one could have anticipated a difference between the results of the electoral and popular votes.

Under normal circumstances Gore should have faced, as Dick Cheney said about the Iraq invasion, a cakewalk. A popular sitting vice president, he enjoyed the trappings of incumbency and a reputation as a thoughtful environmentalist and government efficiency expert. The economy was booming—always a good argument for the “don’t change horses in midstream” sales pitch. The early favorite on the Republican side, George W. Bush, was considered an intellectual lightweight who would get eaten alive the first time the two met in a presidential debate. But Monicagate had wounded Bill Clinton to the extent that Gore made a fateful decision to disassociate himself from the president who had appointed him.

A January 1999 CNN poll had Bush over Gore, 49 to 46 percent. By June 2000 the same poll had barely budged: now it was 49 to 45 percent. “The results indicate that the public is far more likely to view Texas Governor George W. Bush as a strong and decisive leader, and is also more confident in Bush’s ability to handle an international crisis—a worrisome finding for a vice president with eight years of international policy experience,” analyzed CNN in one of the most frightening summaries of the American people’s poor judgment ever recorded.

Gore didn’t become president. But he won the 2000 election. Once again, the media was wrong.

In the 2004 election, it was my turn to screw up. Howard Dean, the combative liberal darling and former Vermont governor, was heavily favored to win the Democratic nomination against incumbent George W. Bush. I was so convinced at his inevitability after early primary elections and by the importance of unifying the Democratic Party behind a man who could defeat Bush that I authored a column I wish I could chuck down the memory hole calling for the party to suspend remaining primaries and back Dean. In 2004, John Kerry won the nomination.

Oops.

But I wasn’t alone. Polls and pundits agreed that George W. Bush, deeply embarrassed by the failure to find weapons of mass destruction in Iraq, would lose to Kerry, a Democrat with a rare combination of credentials: he was a bonafide war hero during the Vietnam War and a noted opponent of the war after his service there.

Bush trounced Kerry. “How can 59,054,087 people be so DUMB?” asked Britain’s Daily Mirror. Good question. Maybe that’s why no one saw it coming.

Which brings us to the most recent presidential election. First, the pundit class was wrong about the likely Democratic nominee. Former First Lady and New York Senator Hillary Rodham Clinton, everyone “knew,” would win. It wasn’t even close. An August 2007 Gallup/USA Today poll had Clinton ahead of Obama, 48 to 26 percent. As it turned out, many Democratic primary voters were wowed by Obama’s charisma and annoyed by Clinton’s refusal to apologize for her brazenly cynical vote in favor of the Iraq war in 2003. Aging Arizona Senator John McCain, on the other hand, remained the best-funded, and thus the continuous favorite, on the Republican side.

Obama’s advantages over McCain became clear by 2008. “The political landscape overwhelmingly favors Obama,” reported USA Today in June. At this point in 2007?

He didn’t stand a chance.

Ted Rall is an American political cartoonist, columnist and author. His most recent book is The Anti-American Manifesto. His website is rall.com.

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SYNDICATED COLUMN: The Phony Budget Crisis

Forget Austerity. Tax the Rich.

Everywhere you look, from the federal government to the states to your hometown, budget crises abound. Services are being slashed. Politicians and pundits from both parties tell us that the good times are over, that we’ve got to start living within our means.

It’s a lie.

Two case studies have made news lately: California, where new/old governor Jerry Brown is trying to close a $25 billion shortfall with a combination of draconian cuts in public services and a series of regressive tax increases, and Wisconsin, where right-winger Scott Walker says getting rid of unions would eliminate the state’s $137 million deficit.

Never mind the economists, most of whom say an economic death spiral is exactly the worst possible time for government to cut spending. Pro-austerity propaganda has won the day with the American public. A new Rasmussen poll funds that 58 percent of likely voters would approve of a shutdown until Democrats and Republicans can agree on what spending to cut.

The budget “crisis” is a phony construction, the result of right-wing “starve the beast” ideology. There is plenty of money out there—but the pols don’t want it.

There is no need to lay off a single teacher, close a single library for an extra hour, or raise a single fee by one red cent.

Every government can not only balance its budget, but wind up with a surplus.

The solution is simple: tax the rich.

Over the last 50 years tax rates for the bottom 80 percent of wage earners have remained almost static. Meanwhile the rich have received tax cut after tax cut after tax cut. For example, the rate paid by the top 0.01 percent—people who currently get more than $6.5 million a year—fell by half (from 70 to 35 percent).

Times are tough. Someone has to pay. Why not start with those who can most afford it?

Europe has the world’s best food, its best healthcare system and its best vacation policy. It also has one of the fairest ways to generate revenue for government: a wealth tax. In Norway, for example, you pay one percent of your net worth in addition to income tax.

What if we imposed a Norwegian-style wealth tax on the top one percent of U.S. households? We’re not talking upper middle class here: the poorest among them is worth a mere $8.3 million. This top one percent owns 35 percent of all wealth in the United States.

“Such a wealth tax…would raise $191.1 billion each year (one percent of $19.1 trillion), a significant attack on the deficit,” Leon Friedman writes in The Nation. “If we extended the tax to the top 5 percent, we could raise $338.5 billion a year (one percent of 62 percent of $54.6 trillion).”

But that’s just the beginning. Wealthy individuals are nothing next to America’s money-sucking corporations.

Business shills whine that America’s corporate tax rate—35 percent—is one of the world’s highest. But that’s pure theory. Our real corporate rate—the rate companies actually pay after taking advantages of loopholes and deductions—is among the world’s lowest. According to The New York Times, Boeing paid a total tax rate of 4.5 percent over the last five years. (This includes federal, state, local and foreign taxes.) Yahoo paid seven percent. GE paid 14.3 percent. Southwest Airlines paid 6.3 percent. “GE is so good at avoiding taxes that some people consider its tax department to be the best in the world, even better than any law firm’s,” reports the Times‘ David Leonhardt. “One common strategy is maximizing the amount of profit that is officially earned in countries with low tax rates.”

America’s low effective corporate tax rates have left big business swimming in cash while the country goes bust. As of March 2010 non-financial corporations in the U.S. had $26.2 trillion in assets. Seven percent of that was in cash.

The national debt is $14.1 trillion.

Which is a lot. And, you see, entirely by choice.

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

COPYRIGHT 2011 TED RALL

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