If The Kiss famously caught by a photographer on V-J Day in Times Square happened today, it might look and feel different. The death of Osama bin Laden does nothing to ease the economic pain of depression and collapse.
Permanent Poverty for Generation X
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One out of four Baby Boomers say they will never retire. Generation Xers, pushing 50, realize they are doomed.
Decision 2012: Jobs
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Jobs are the big issue in the next election. Which party has the more the credible plan? The GOP, with tax cuts for the rich? Or the Democrats, with nothing whatsoever?
Heckuva Job, Barry
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The US government opens its wallet to help victims of the Japanese tsunami while millions of Americans who lost their homes to foreclosure get nothing.
SYNDICATED COLUMN: The Phony Budget Crisis
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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
NEW WEBISODE: “Disposable” Episode #2
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It’s out! The second official webisode (animated cartoon) by David Essman and yours truly about the downward slide of a typical American family living during the Obama Depression.
This time: Dan and Sarah attempt to hang on to their home.
Burned Out From What?
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Saying that many of his staff members are exhausted from all the hard work they’ve done, Obama lets some of them go. What hard work?
Open Letter to Pro-Obama Liberals
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SYNDICATED COLUMN: The Death of the Moderates
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Extreme Problems Require Extreme Solutions
Given his druthers, Obama will pursue the most left-leaning course that he can get away with.” So says Jennifer Rubin, a right-wing pundit at the neoconservative-leaning Washington Post. “Obama,” Rubin claims, “would have marched through his entire liberal agenda—if he had the votes.”
This, of course, assumes that Obama ever had a liberal agenda. There’s not much evidence of that. Moreover, Obama did have the votes in Congress to get almost everything that he wanted. But he chose not to even try.
It is also not true. He did have the votes. In recent years, for example, minority Republicans in the Senate have threatened filibusters on most major Democratic initiatives. When they have 60 or more votes, Democrats file a cloture motion to stop filibusters before they start. In practice, Democrats say—and the media has been repeating their meme—that it now takes 60 votes to pass a bill in the Senate.
It isn’t true. Not now. Not ever.
What Dems fail to understand is that they are depriving themselves of a big political opportunity by embracing automated parliamentary procedure. If Republicans want to filibuster, let them drag out their District of Columbia white pages and start reading on C-Span. Footage of GOP senators stonewalling popular legislation—extensions of unemployment benefits, eliminating tax breaks for individuals who earn more than $1 million a year, or healthcare benefits for 9/11 first responders—would make for awesome attack ads in 2012.
When the Bush Administration enjoyed a razor-thin 50-vote majority in the Senate, it only needed a simple majority in order to pass major bills. Even though they should have, Democrats didn’t filibuster. Democrats lack nerve. And voters hate them for it.
There’s another factor at work: self-delusion. Much liberal disappointment with Obama stems from the fact that, on several issues, he is doing exactly what he said he was going to do during the campaign. He told us that we were going to go deeper in Afghanistan. Liberals simply chose to pretend that he was lying. It’s not Obama’s fault if people are in denial. At the same time, Obama failed to realize that the world had changed dramatically between September and November of 2008.
During the summer of the 2008 campaign, there was a plausible argument to be made that the American people were fundamentally moderate. But after the economic meltdown of September 2008, a crisis of capitalism and consumer confidence that continues today with no end in sight, the electorate moved decidedly to the left. Six months into Obama’s term, most Americans told pollsters they preferred socialism to capitalism. In early 2010 one in five Republicans said they have a positive view of socialism.
Meanwhile, the right became more radical too. This is what happens during a crisis when the “mainstream” system is unresponsive. Moderation? There are no more moderates.
As we have seen time and time again in American history, compromises usually mean no solution at all. From the status of Missouri as a slave state to last week’s tax deal between Democrats and Republicans, compromise usually means kicking the can down the road for another generation of people and politicians to contend with.
Yet the myth persists: moderation equals common sense. I don’t know about my fellow lefties, but I find more common ground with Tea Party types who are angry as hell and don’t want to take it anymore than I do with squishy soft liberals who think everything is fine as long as Barack Obama gets reelected in 2012.
Nothing is fine. The unemployment rate is over 9.8 percent officially and about 20 percent unofficially. Yet neither party has lifted a finger to even talk about proposing a jobs program. Tax cuts? Unemployed people don’t pay taxes. Depression-level joblessness is fiscal poison. If we don’t create tens of millions of new jobs soon, social and political unrest will increase dramatically.
Chris Hedges recently put out a book titled “The Death of the Liberal Class.” A better title might have been “The Death of Moderation.” No one better embodied the American brand of political moderation than traditional liberals. They supported income redistribution, but only through a slightly progressive income tax: not enough to make a difference, but plenty to make right-wingers spitting mad. They consistently voted for huge defense budgets and war after war, yet were successfully framed as wimps by Republicans whose rhetoric matched their similar bellicosity.
The smug and the complacent love moderation precisely because it can’t change the status quo.
Look at ObamaCare: that’s what happens when you compromise. The insurance companies get to soak even more Americans than usual—and charge those of us who are already in the system more. Like many other issues, the “extremes” work better than the centrist, “common sense” solution. If I can’t have full-fledged socialized medicine, give me free markets.
Moderates know their time has past. New York Mayor Michael Bloomberg recently brought 1,000 people together to create a militant moderate organization called No Labels. Like Jon Stewart’s Million Moderate March, No Labels is meant “not to create a new party, but to forge a third way within the existing parties, one that permits debate on issues in an atmosphere of civility and mutual respect,” say organizers.
Sweet.
Because, you know, you should always be civil and respectful to people who think torture and concentration camps are A-OK.
For those who despair of the rise of political extremism, I ask: From multi-trillion dollar deficits to endless war to mass die-offs of species and climate change, are the problems America face so trivial that they can be resolved with more half-assed compromises?
(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)
COPYRIGHT 2010 TED RALL
