Tag Archives: ge

SYNDICATED COLUMN: Hillary Clinton’s Life of Crime

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Bill and Hillary Clinton “earned” — can a mortal earn such stratospheric sums? — “at least $30 million over the last 16 months, mainly from giving paid speeches to corporations, banks and other organizations,” The New York Times reports. “They have now earned more than $125 million on the [lecture] circuit since leaving the White House in 2001.”

This is an important issue. But the big story has little to with what actually matters.

Coverage of the Clintons’ spectacularly lucrative speaking career has focused on how it affects Hillary’s 2016 presidential campaign — specifically the political damage caused by the public’s growing perception that Hillary is out of touch with the common man and woman. It is a promising line of inquiry for her detractors (myself included).

Hillary is out of touch. She hasn’t been behind the wheel of an automobile for nearly 20 years, is a multi-multi-millionaire who nevertheless considered herself “dead broke” and still believes that she and her husband are not among “the truly well off.” (Maybe Bill still drives.) Ostentatious wealth coupled with tonedeafness didn’t help Mitt “47%” Romney in 2012, or John “I can’t remember how many houses I own” McCain in 2008 — and they were Republicans, a party that gleefully despises the poor and jobless. For a Democrat under heavy fire from her party’s progressive base — with Elizabeth Warren, Bill di Blasio and Bernie Sanders leading the charge — this stuff could be politically fatal.

But the media ought to focus on the real issue. FDR was wealthy, yet he created the social safety net as we know it (what’s left of it, anyway). JFK and RFK came from money, yet no one doubted their commitment to help the downtrodden. Liberals distrust Hillary due to her and her husband’s long record of kowtowing to Wall Street bankers and transnational corporations, supporting jobs-killing “free trade” agreements, backing the NSA’s intrusions into our privacy, and as an unrepentant militarist. Her progressivism appears to have died with her law career.

Conflict of interest: that’s why we should be concerned about all those $250,000 speeches.

The big question is: why do corporations and banks shell out a quarter of a million dollars for a Hill Talk?

Corporations and banks don’t pay big bucks to Hillary Clinton because they’re dying to hear what she has to say. After having been front and center on the national political scene for a quarter century, she and Bill don’t have new insights to share. And even if I’m wrong — even if you’re a CEO and you’re dying to learn her ultimate (new) recipe for baking cookies — you don’t have to invite her to speak to your company to get the dish. You can ask one of your CEO pals who already had her speak at his firm — or pay to attend one of the zillions of other lectures she gives.

This is not about Hillary’s message.

Corporations and banks bribe the Clintons to buy political favors. The speaking racket is a (flimsy) cover.

Like, there’s the time Goldman Sachs paid $200,000 for a Bill Talk a few months before the financial conglomerate lobbied Hill when she was secretary of state. At least 13 companies paid Bill and Hill at least $2.5 million in similar sleazy deals.

Those are just the brazen quid pro quo deals.

Among the companies that have lined Hillary’s pockets over the last 16 months are “a mix of corporations (GE, Cisco, Deutsche Bank), medical and pharmaceutical groups (the California Medical Association and the Pharmaceutical Care Management Association), and women’s organizations like the Commercial Real Estate Women Network,” the Times says. “Mr. Clinton’s speeches included a number of talks for financial firms, including Bank of America and UBS, as well as technology companies like Microsoft and Oracle.”

GE, Cisco and Deutsche Bank aren’t run by idiots. Nor are lobbying groups like the female realtors. Their boards know that Hillary may well become president. Even if she loses, those bribes — er, speaking fees — are a smart investment in DC influence. The Clintons have strong ties at the highest levels of the Democratic Party establishment and on Wall Street. If you’re GE, it makes sense to make nice with people whose help you might want someday, so they’re likelier to pick up the phone when you call to, say, grease the skids for a merger in danger of getting derailed by antitrust laws.

Laws governing the sale of political access are relatively clear, but rarely enforced. The ethics, however, are simple: honest people don’t take money from people they may be charged with governing or regulating in the future.

“Behind every great fortune,” Balzac maintained, “lies a crime.” If there were any justice, the Clintons would be in prison for a generation of criminal activity that has left America a corrupted, Third Worldified nation, poorer for having been looted by the companies and banks whose criminality they aided and abetted.

(Ted Rall, syndicated writer and the cartoonist for The Los Angeles Times, is the author of the new critically-acclaimed book “After We Kill You, We Will Welcome You Back As Honored Guests: Unembedded in Afghanistan.” Subscribe to Ted Rall at Beacon.)

COPYRIGHT 2015 TED RALL, DISTRIBUTED BY CREATORS.COM

 

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