Category Archives: Shared Art

Robert Reich on the Great Tax Rip-Off

Robert Reich’s Blog / By Robert Reich

Corporations Are Stealing Billions in Tax Breaks, While the Confused, Screwed Citizenry Turn On Each Other

International corporations have no national allegiance, they care only for profit. Meanwhile, people all over the world are becoming increasingly nationalistic and xenophobic.

May 20, 2013  |

As global capital becomes ever more powerful, giant corporations are holding governments and citizens up for ransom — eliciting subsidies and tax breaks from countries concerned about their nation’s “competitiveness” — while sheltering their profits in the lowest-tax jurisdictions they can find. Major advanced countries — and their citizens — need a comprehensive tax agreement that won’t allow global corporations to get away with this.

Google, Amazon, Starbucks, every other major corporation, and every big Wall Street bank, are sheltering as much of their U.S. profits abroad as they can, while telling Washington that lower corporate taxes are necessary in order to keep the U.S. “competitive.”

Baloney. The fact is, global corporations have no allegiance to any country; their only objective is to make as much money as possible — and play off one country against another to keep their taxes down and subsidies up, thereby shifting more of the tax burden to ordinary people whose wages are already shrinking because companies are playing workers off against each other.

I’m in London for a few days, and all the talk here is about how Goldman Sachs just negotiated a sweetheart deal to settle a tax dispute with the British government; Google is manipulating its British sales to pay almost no taxes here by using its low-tax Ireland subsidiary (the chair of the Parliamentary committee investigating this has just called the do-no-evil firm “devious, calculating, and unethical”); Amazon has been found to route its British sales through a subsidiary in low-tax Luxembourg, and now receives more in subsidies from the British government than it pays here in taxes; Starbucks’ tax-avoidance strategy was so blatant British consumers began boycotting the firm until it reversed course.

Meanwhile, At a time when you’d expect nations to band together to gain bargaining power against global capital, the opposite is occurring: Xenophobia is breaking out all over.

Here in Britain, the UK Independence Party — which wants to get out of the European Union — is rapidly gaining ground, becoming the third most popular party in the country, according to a new poll for The Independent on Sunday. Almost one in five people plan to vote for it in the next general election. Ukip’s overall ratings have risen four points to 19 per cent in the past month, despite Prime Minister David Cameron’s efforts to wrest back control of the crucial debate over Britain’s relationship with the European Union.

Right-wing nationalist parties are gaining ground elsewhere in Europe as well. In the U.S., not only are Republicans sounding more nationalistic of late (anti-immigrant, anti-trade), but they continue to push “states rights” — as states increasingly battle against one another to give global companies ever larger tax breaks and subsidies.

Nothing could strengthen the hand of global capital more than such breakups.

Robert B. Reich has served in three national administrations, most recently as secretary of labor under President Bill Clinton. He also served on President Obama’s transition advisory board. His latest book is Aftershock: The Next Economy and America’s Future. His homepage iswww.robertreich.org.

Naked Capitalism: We’re All Serfs Now

A Reversion to a Dickensian Variety of Capitalism

Posted: 19 May 2013 09:55 PM PDT

By Jayati Ghosh, Professor of economics at Jawaharlal Nehru University, New Delhi, and the executive secretary of International Development Economics Associates. Cross-posted from Triple Crisis.

Since her death, many eulogies of Thatcher have spoken of her as a revolutionary. Thatcherism (along with the associated Reaganomics) is seen as a radical transformative agenda that changed the face of economy and society. But seen from the developing world decades later, much of this agenda appears familiar, in the form of structural adjustment policies that have been forced upon different countries at different times by international institutions.

Given the broad contemporaneity of these strategies, it is a moot point who “inspired” whom, or just how original those ideas were. But it is certainly true that they contributed to shaping policy dialogue in fundamental ways, and thereby left a continuing (if unfortunate) legacy. Consider just five significant elements of this legacy, most features of which are now found across the world and especially in developing countries.

First, and possibly the most well-known: the attack on organised labour and the resulting drastic reduction in workers’ bargaining power. This occurred not just through the instrument of unemployment (or fear of it) used to discipline workers, but through regulation and legal changes as well as changing institutions. This is now an almost universal feature, except in societies such as in Latin America where recent political changes have generated some reversal.

Second, financial deregulation and significant increases in the lobbying and political power of financial agents. This has led to the massive expansion and then implosion of deregulated finance, with the crisis affecting the real economy in terrible ways. It has also contributed to deindustrialisation and the rentier economy. The UK today is clearly one, with its focus on the City of London as its most prominent “industry” – but this is increasingly the fate of countries that are much lower in the development and per capita income ladders.

Third, the triumph of private gain over social good and the aggressive delegitimisation of public provision. Quite apart from the adverse effects on the long term (in terms of inadequate public investment for the future or for meeting current social needs) this has terrible effects on society, creating not just injustice but small-minded and petty individualism as a dominant social characteristic.

Fourth, the weakening or destruction of notions of the rights of citizens, particularly social and economic rights. Most citizens of the developing world are still struggling for these to be recognised, so the rapid derecognition of such rights in the post-Thatcher era has been a setback for everyone – and is only too obvious in much of Europe today.

Fifth, sharply increasingly inequalities of assets, incomes, opportunities, which has become socially and economically counterproductive everywhere and increasingly politically destabilising as well.

Was Thatcherism then all that new? No – it was essentially a reversion to an older, Dickensian (if not even Hobbesian) variety of capitalism, bringing back into significance those more unpleasant features of the capitalist system that were supposed to have been abandoned in the forward progress of human history.

Jayati Ghosh is professor of economics at Jawaharlal Nehru University, New Delhi, and the executive secretary of International Development Economics Associates.

This piece first appeared in the Guardian. 2013 Guardian News and Media Limited or its affiliated companies. All rights reserved.

Mario Piperni on Bigots

The Right Needs Smarter Bigots

MAY 18, 2013 BY  

Jackass 2  -  http://mariopiperni.com/

If you’re new to right-wing think, here’s an easy to remember rule of thumb to help you along; any and all evil in the world can be attributed directly to President Obama and/or homosexuals. Really. Every stinking evil. If it isn’t Obama’s fault, then blame it on the gay.

Bryan Fischer: Military has “crisis” of sexual assault. Major part of that is homosexual in nature. What are they going to do about that?

Male soldiers are raping female personnel and Bryan Fischer of the American Family Association thinks it’s logical to blame homosexuals for the attacks. Moron.

Blue Texan over at C&L notes that the AFA needs smarter bigots. I agree, but I’d take it one step further and suggest that the entire conservative movement needs smarter bigots. The current crop are dumber than a box of rocks.

___

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LUV News on CIA Thugs

Throughout the trial of Efrain Rios Montt in Guatemala, the US mainstream media have painstakingly avoided seeing the elephant in the living room—complicity by the US Empire. This goes back to 1954 when President Jacobo Árbenz Guzmán was overthrown by the CIA.  Árbenz had a plan to buy land from the United Fruit Company, which owned 42% of the arable land of the entire country, at fair market value and then allow Guatemalan peasants to farm it.

United Fruit (now Chiquita Banana) went bananas (pun intended), even though this was land they were not using, and had President Eisenhower overthrow the democratically elected government and replace it with a military dictatorship which served United Fruit, rather than the Guatemalan people.  Thereafter, the government began a slaughter of its people estimated to be some 250,000, and Montt was one of the slayers, just last week convicted.

But since our leaders put these scumbags in office, don’t they share in the responsibility for human rights violations? There are a lot of Americans who supported the policy, working in the State Department and CIA as well as the White House and the Pentagon that deserve to be imprisoned every bit as much as Montt.

It is well documented that CIA agents on the ground in Guatemala witnessed the torture and murder.  Will this be another example of the Empire’s thugs being too big to jail? —Jack Balkwill

As this piece on the Common Dreams website notes, “President Ronald Reagan called Rios Montt ‘a man of great personal integrity and commitment.’ ”

Humor: The Borowitz Report

A Letter from John Boehner

Posted by
boehner-obamacare-post.jpg

WASHINGTON (The Borowitz Report)—Today Speaker of the House John Boehner issued the following letter to the American people:

Dear American People,

Yesterday, your hardworking House Republicans tried, once again, and failed, once again, to repeal Obamacare. And I really thought we had a good chance this time.

That’s because we were all united in our hatred for this infernal and takes-too-long-to-read law. Every last one of us cast his vote to strike it down, from crazy little Paul Ryan to that arrogant bastard Eric Cantor.

And I wish you could have seen the faces of those freshman Republicans as they voted to repeal Obamacare—so innocent, so full of hope and wonder. As I told them yesterday, “You’ll never forget your first time.”

It’s important for you to know that even as scandals swirl about the cesspool known as the White House, some folks in Washington are still working hard for the American people.

It was a gruelling week for me, what with popping up in front of the TV cameras every five minutes saying, “Who’s going to jail?,” plus trying to rid our land of Obamacare. But I don’t want your thanks. Save that for the dedicated House Republicans who have now voted thirty-seven times to repeal. You can’t put a price tag on that kind of performance. Well, actually, you can: it’s cost the taxpayers over fifty million dollars.

And worth every million, damn it.

One last thing. I know some of you are probably thinking that after suffering this latest defeat, we House Republicans are just going to take our bat and ball and go home. Well, there’s an old saying where I come from: the thirty-eighth time’s the charm.

Courage,

John Boehner

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Photograph by Chip Somodevilla/Getty.

Ezra Klein on Scandals Petering Out

The scandals are falling apart

Things go wrong in government. Sometimes it’s just bad luck. Sometimes it’s rank incompetence. Sometimes it’s criminal wrongdoing. Most of the time you never hear about it. Or, if you do hear about it, the media eventually gets bored talking about it (see warming, global).

But every so often an instance of government wrongdoing sprouts wings and becomes something quite exciting: A political scandal.

President Obama speaks about the IRS and Benghazi at a press conference. (Washington Post)

President Obama speaks about the IRS and Benghazi at a news conference. (Washington Post)

The crucial ingredient for a scandal is the prospect of high-level White House involvement and wide political repercussions. Government wrongdoing is boring. Scandals can bring down presidents, decide elections and revive down-and-out political parties. Scandals can dominate American politics for months at a time.

On Tuesday, it looked like we had three possible political scandals brewing. Two days later, with much more evidence available, it doesn’t look like any of them will pan out. There’ll be more hearings, and more bad press for the Obama administration, and more demands for documents. But — and this is a key qualification — absent more revelations, the scandals that could reach high don’t seem to include any real wrongdoing, whereas the ones that include real wrongdoing don’t reach high enough. Let’s go through them.

(Photo by Andrew Harrer/Bloomberg)

(Photo by Andrew Harrer/Bloomberg)

1) The Internal Revenue Service: The IRS mess was, well, a mess. But it’s not a mess that implicates the White House, or even senior IRS leadership. If we believe the agency inspector general’s report, a group of employees in a division called the “Determinations Unit” — sounds sinister, doesn’t it? — started giving tea party groups extra scrutiny, were told by agency leadership to knock it off, started doing it again, and then were reined in a second time and told that any further changes to the screening criteria needed to be approved at the highest levels of the agency.

The White House fired the acting director of the agency on the theory that somebody had to be fired and he was about the only guy they had the power to fire. They’re also instructing the IRS to implement each and every one of the IG’s recommendations to make sure this never happens again.

If new information emerges showing a connection between the Determination Unit’s decisions and the Obama campaign, or the Obama administration, it would crack this White House wide open. That would be a genuine scandal. But the IG report says that there’s no evidence of that. And so it’s hard to see where this one goes from here.

The U.S. “diplomatic post” in Benghazi in flames after the attack of Sept. 11, 2012. (Esam Omran Al-Fetori/Reuters)

The U.S. diplomatic post in Benghazi in flames after the attack of Sept. 11, 2012. (Esam Omran Al-Fetori/Reuters)

2) Benghazi: We’re long past the point where it’s obvious what the Benghazi scandal is supposed to be about. The inquiry has moved on from the events in Benghazi proper, tragic as they were, to the talking points about the events in Benghazi. And the release Wednesday night of 100 pages of internal e-mails on those talking points seems to show what my colleague Glenn Kessler suspected: This was a bureaucratic knife fight between the State Department and the CIA.

As for the White House’s role, well, the e-mails suggest there wasn’t much of one. “The internal debate did not include political interference from the White House, according to the e-mails, which were provided to congressional intelligence committees several months ago,” report The Washington Post’s Scott Wilson and Karen DeYoung. As for why the talking points seemed to blame protesters rather than terrorists for the attack that killed the U.S. ambassador and three other Americans? Well:

According to the e-mails and initial CIA-drafted talking points, the agency believed the attack included a mix of Islamist extremists from Ansar al-Sharia, a group affiliated with al-Qaeda, and angry demonstrators.

White House officials did not challenge that analysis, the e-mails show, nor did they object to its inclusion in the public talking points.

But CIA deputy director Michael Morell later removed the reference to Ansar al-Sharia because the assessment was still classified and because FBI officials believed that making the information public could compromise their investigation, said senior administration officials, who spoke on the condition of anonymity to describe the internal debate.

So far, it’s hard to see what, exactly, the scandal here is supposed to be.

Eric Holder (AP Photo)

U.S. Attorney General Eric Holder in the hot seat. (AP Photo)

3) AP/Justice Department:. This is the weirdest of the three. There’s no evidence that the DoJ did anything illegal. Most people, in fact, think it was well within its rights to seize the phone records of Associated Press reporters. And if the Obama administration has been overzealous in prosecuting leakers, well, the GOP has been arguing that the White House hasn’t taken national security leaks seriously enough. The AP/DoJ fight has caused that position to flip, and now members of Congress are concerned that the DoJ is going after leaks too aggressively. But it’s hard for a political party to prosecute wrongdoing when they disagree with the potential remedies.

Insofar as there’s a “scandal” here, it’s more about what is legal than what isn’t. The DoJ simply has extraordinary power, under existing law, to spy on ordinary citizens — members of the media included. The White House is trying to change existing law by encouraging Sen. Chuck Schumer to reintroduce the Media Shield Act. The Post’s Rachel Weiner has a good rundown of what the bill would do. It’s likely that the measure’s national security exemption would make it relatively toothless in this particular case, but if Congress is worried, they always can — and probably should — take that language out. Still, that legislation has been killed by Republicans before, and it’s likely to be killed by them again.

The scandal metanarrative itself is also changing. Because there was no actual evidence of presidential involvement in these events, the line for much of this week was that the president was not involved enough in their aftermath. He was “passive.” He seemed to be a “bystander.” His was being controlled by events, rather than controlling them himself.

That perception, too, seems to be changing. Mike Allen’s Playbook, which is ground zero for scandal CW, led Thursday with a squib that says “the West Wing got its mojo back” and is “BACK ON OFFENSE.” Yes, the caps are in the original.

The smarter voices on the right are also beginning to counsel caution. ”While there’s still more information to be gathered and more investigations to be done, all indications are that these decisions – on the AP, on the IRS, on Benghazi – don’t proceed from [Obama],” wrote Ben Domenech in The Transom, his influential conservative morning newsletter. “The talk of impeachment is absurd. The queries of ‘what did the president know and when did he know it’ will probably end up finding out “’just about nothing, and right around the time everyone else found out.’”

I want to emphasize: It’s always possible that evidence could emerge that vaults one of these issues into true scandal territory. But the trend line so far is clear: The more information we get, the less these actually look like scandals.

And yet, even if the scandals fade, the underlying problems might remain. The IRS. could give its agents better and clearer guidance on designating 501(c)(4), but Congress needs to decide whether that status and all of its benefits should be open to political groups or not. The Media Shield Act is not likely to go anywhere, and even if it does, it doesn’t get us anywhere close to grappling with the post-9/11 expansion of the surveillance state. And then, of course, there are all the other problems Congress is ignoring, from high unemployment to sequestration to global warming. When future generations look back on the scandals of our age, it’ll be the unchecked rise in global temperatures, not the Benghazi talking points, that infuriate them.