Archives for category: Billionaires

 

Two articles were published recently about a new book that makes the point that billionaires pay at a lower tax rate than middle-class Americans.

The book is The Triumph of Injustice: How the Rich Dodge Taxes and How to Make Them Pay by Emmanuel Saez and Gabriel Zucman.

David Leonhardt writes in the New York Times, in a column called “The Rich Really Do Pay Lower Taxes Than You”: 

For the first time on record, the 400 wealthiest Americans last year paid a lower total tax rate — spanning federal, state and local taxes — than any other income group, according to newly released data.

Since then, taxes that hit the wealthiest the hardest — like the estate tax and corporate tax — have plummeted, while tax avoidance has become more common.

President Trump’s 2017 tax cut, which was largely a handout to the rich, plays a role, too. It helped push the tax rate on the 400 wealthiest households below the rates for almost everyone else.

The overall tax rate on the richest 400 households last year was only 23 percent, meaning that their combined tax payments equaled less than one quarter of their total income. This overall rate was 70 percent in 1950 and 47 percent in 1980.

Christopher Ingraham writes in the Washington Post:

In 2018, for the first time in history, America’s richest billionaires paid a lower effective tax rate than the working class.

The Triumph of Injustice,” by economists Emmanuel Saez and Gabriel Zucman of the University of California at Berkeley, presents a first-of-its kind analysis of Americans’ effective tax rates since the 1960s. It finds that in 2018 the average effective tax rate paid by the richest 400 families in the country was 23 percent, a full percentage point lower than the 24.2 percent rate paid by the bottom half of American households.

In 1980, by contrast, the 400 richest had an effective tax rate of 47 percent. In 1960, that rate was as high as 56 percent. The effective tax rate paid by the bottom 50 percent, by contrast, has changed little over time.

When you see these data, it becomes clear why our society can’t afford to pay for good education or healthcare that covers everyone.

Consider this:

Forbes annually publishes a list of the 400 richest people in America.

This is the 2019 list. 

Number one is Jeff Bezos. He lost some of his net worth because of his divorce. His ex-wife collected over $36 billion from Jeff, which made her one of the 400.

The rich have gotten so rich that 221 billionaires didn’t make the cut.

Under our current tax structure, the top 400 will continue to get richer and richer, while the public sector pays more for defense and less for social welfare.

Our tax structure is a statement of our priorities.

What do we value?

Why, in a democracy, do people who are living from paycheck to paycheck—or have no steady job— support politicians who voted to reduce the taxes of the Forbes 400? Why do they put on a red hat and cheer for the man who gave the Forbes 400 a hefty tax cut?

Cathy Frye is an experienced journalist who switched careers. Three years ago, she was hired to work for the Arkansas Public School Resource Center as communications director. Before she was hired, she was asked if she had any qualms about charter schools, and she said no. When she quit her job in June 2019, she decided to tell what she had learned, and she started to report about her experiences on her blog. 

Here is the lowdown. Eighty-five percent of the rural public school districts in the state belong to the Arkansas Public School Resource Center, but the APSRC is a Walton-funded school choice operation.

When Frye quit, she said she felt a burden lift.

No more working in an environment steeped in secrecy and paranoia. No more placating a male boss who acted more like an abusive stalker ex-boyfriend than an actual leader. No more weird workplace silos that left “team leaders” completely in the dark as to what other departments were doing. No more legislative education committee meetings that reeked of conspiracy, deception and stale men’s suits in dire need of dry-cleaning. 

I think the turning point for me was when, at the beginning of APSRC’s annual membership drive in the spring/summer of 2019, Smith said on three occasions – in my presence – that “If you can’t dazzle them with brilliance, baffle them with bullshit.” 

“Them” refers to public school districts – as in APSRC’s current member districts and potential member districts.

I spent decades looking for facts. I believe in transparent and ethical journalistic practices.

Baffle them with bullshit?

Um, that’s a hard no. 

We’re talking about the education of Arkansas’ children. We’re talking about the teachers who work long hours for pitiful pay. We’re talking about inadequate funding, inadequate facilities and the fact that the state has taken its largest school district hostage just so that it can take it apart and reinstate segregation in the Little Rock School District.

There will be no “baffle them with bullshit” from my little corner of the universe. 

Also, covering the 2019 legislative session left me disturbed and downright angry about what is happening in public education. The 2017 General Assembly gave me serious pause. The 2019 session revealed the seamiest side of the school-”choice” movement.

In this post and those that will follow, I’m going to share the details of my three years at APSRC. Since quitting, I’ve learned that most people – even those in education – don’t realize how APSRC is structured or how it operates. Yes, it’s a nonprofit primarily funded by the Waltons. But it’s also a powerful and influential force where the governor and state Legislature are concerned. 

This is a blog that I will follow.

The Waltons, like their fellow billionaires the Kochs and the DeVos family, are dedicated to the destruction of public schools.

How clever to launch a “public school resource center” with which to peddle their anti-public school venom.

 

This is an important, can’t-miss podcast about the malign plans of one of the richest men in the world.

Business reporter Christopher Leonard has written a best-selling new book called Kochland: The Secret History of Koch Industries and Corporate Power in America.It’s an eye-opening account of how the Kochs built the private company that has made them richer than Bill Gates. Leonard spent seven years reporting the book, which gave him plenty of insight into what he describes as the Kochs’ fixation on dismantling public education. In a recent episode of the Have You Heard podcast with Jennifer Berkshire and Jack Schneider, Leonard was blunt about what the Kochs are after. “The ultimate goal is to dismantle the public education system entirely and replace it with a privately run education system. ” Leonard says don’t be fooled by the Koch’s sales pitch (like the Koch Network’s latest education venture, Yes Every Kid, headed by the VP of Communications for Koch Industries.) “There are going to be a lot of glossy marketing materials about opportunity, innovation, and efficiency. At its core though the Koch Network seeks to dismantle the public education system because they see it as destructive. So that is what’s the actual aim of this group. And don’t let them tell you anything different.”
You can listen to the entire interview here: https://soundcloud.com/haveyouheardpodcast/kochland

 

The Walton Family is collectively worth more than $150 billion, and their hobby is undermining and disrupting public schools across the nation. Since Louisiana has an election for the state board of education in a few days, you will not be surprised to learn that Jim and Alice Walton dropped $200,000 on candidates pledged to support charter schools, vouchers, and Teach for America.

Mercedes Schneider reports in this post that the Waltons waited until close to Election Day so that Louisianans would not have time to learn that out-of-State billionaires were trying to buy the state board elections.

The Waltons are determined to harm the public schools that educated their father Sam Walton and most of them.

The family belongs on the blog’s Wall of Shame for their ceaseless attacks on public schools, unions, experienced teachers, and communities.

Max Brantley is editor of the Arkansas Times, where he courageously confronts the depredations of the powerful Walton family against the public sector.

In this post, he summarizes the Waltons’ current efforts to take over the Little Rock school district, so they can eliminate public schools and replace them with charters. Any Democrat who thinks that charter schools are “progressive” should visit Arkansas, Arizona, Florida, North Carolina, or any other red state where the billionaires are doing their best to destroy public education.

He begins:

I’ve collected some items today related to the 2019 Little Rock school crisis, in which the Asa Hutchinson administration is attempting to supercharge the agenda of the Billionaire Boys Club, led by the Walton Family Foundation, to end a meaningful Little Rock public school district.

The plan is to continue to build charter schools (lightly regulated private schools operated with public money); to bust the teachers union, and to create a district of haves and have-nots. Under the Hutchinson plan, prosperous neighborhoods would have a semblance, but not complete democratic self-determination in schools. Poor neighborhoods (generally heavily black) would remain under control of a state Board of Education that has failed them miserably in five years as a supervisor.

He cites a post from this blog, describing the federal study of NAEP that concluded that charter schools do NOT outperform public schools.

He notes that even the Walton-funded University of Arkansas Department of Educational Reform acknowledges that test scores are not all that important.

He writes:

You get a district with a high poverty rate and you get lower test scores. Governor Hutchinson wants to punish Little Rock for that, while holding harmless dozens of other schools and districts with similar low scores. Here, they blame the teachers.

He cites Mercedes Schneider’s expose of Oregon-based Stand for Children, which is pouring big money into the Louisiana race for state board of education, and notes that the Waltons are financing their own efforts in Arkansas to undermine the public schools of Little Rock to make it easier to take them over and end public education.

And then he turns to Brett Williamson, a member of the state school board appointed by Governor Asa Hutchinson, who seems to specialize in insulting parents and supporters of public education. Williamson is one of the current crop of Republicans who do not believe in local control, especially for districts enrolling children of color.

Like Valerie Strauss of the Washington Post and Karen Francisco of the Fort Wayne Journal-Gazette, Max Brantley is a national treasure who is fearless in confronting the privatization behemoths owned by billionaires.

 

I have not endorsed any candidate. I like Senator Bernie Sanders’ education plan better than any other I have seen but I have not endorsed Bernie nor anyone else.

I will support the nominee of the Democratic Party.

If any candidate says anything that I think is important to bring to your attention, I will share it, regardless which candidate proposes it.

This is what Bernie sent out today, and I agree with his plan. I don’t think anyone should be a billionaire. A person should be able to get by on $900 million, even $100 million. Some manage to live well on even less.

Many of our country’s billionaires are using their vast wealth to undermine and privatize public schools. One thinks of the Waltons, Gates, Broad, Hastings, Koch, Adelson, Anschutz, and that just scratches the surface.

Diane –

I want to ask you to clear your mind for a moment and count to 10.

1…
2…
3…
4…
5…
6…
7…
8…
9…
10…

In those 10 seconds, Jeff Bezos, the owner and founder of Amazon, made more money than the median employee of Amazon makes in an entire year. An entire year.

Think about that.

We live in a time when millions of Americans, including many Amazon employees, are working 2 or 3 jobs to feed their families and the three wealthiest people in this country own more wealth than the bottom half of the American people.

It’s absurd.

And in order to reduce the outrageous level of inequality that exists in America today and to rebuild the disappearing middle class, the time has come for the United States to establish an annual tax on the extreme wealth of the top 0.1 percent of U.S. households.

Add your name if you agree:

Sign my petition — add your name as a citizen supporter of my wealth tax on the top 0.1 percent of Americans as a way to reduce the obscene levels of income and wealth inequality in this country.

Our tax on extreme wealth would only apply to the wealthiest households in America and would cut the wealth of billionaires in half over 15 years — which would substantially break up the concentration of wealth and power of this small, privileged class.

This is how much more in taxes some of the richest people in America would owe this year:

The Walton family – $14.8 billion
Jeff Bezos – $8.9 billion
Charles Koch – $3.2 billion
Sheldon Adelson – $2.6 billion
Rupert Murdoch – $1.28 billion

Our plan would raise more than $4 trillion over the next decade and anyone with a net worth of less than $32 million would not see their taxes go up under this plan.

Now, I have never understood how someone could have tens and hundreds of billions of dollars and feel the desperate need for even more. I would think that with the amount of money the 0.1 percent of this country has, they might just be able to get by.

But the truth is, for the past several decades there has been a massive transfer of wealth from those who have too little to those who have too much.

And for the sake of our democracy and for working families all over America who are struggling economically, that has got to change.

But making it happen must start with all of us making our voices heard and being clear — loudly and directly — that the greed of the billionaire class of this country is intolerable, and it must end. And that starts with you:

Sign my petition — add your name as a citizen supporter of my wealth tax on the top 0.1 percent of Americans as a way to reduce the obscene levels of income and wealth inequality in this country.

In my view, a nation cannot survive morally or economically when so few have so much and so many have so little. Millions of people across this country struggle to put bread on the table and are one paycheck away from economic devastation, while the wealthiest people in this country have never had it so good.

It has got to stop.

And when we are in the White House, it will.

In solidarity,

Bernie Sanders

ADD YOUR NAME

Paid for by Bernie 2020

(not the billionaires)

PO BOX 391, Burlington, VT 05402

Nick Hanauer, who may or may not be a billionaire, made a splash when he conspicuously dropped out of the Destroy Public Education Movement and the Billionaire Boys Club, which he had supported with donations of millions of dollars.

He loudly declared that his fellow plutocrats were wrong to blame the schools for the dysfunctions of our society, which he pinned on income inequality.

He has given some recent TED talks, which you should listen to and react to.

One is called “Beware, Fellow Plutocrats, the Pitchforks Are Coming.”

Another is “The Dirty Secret of Capitalism–and a New Way Forward.”

Unlike predictable plutocrats like Bill Gates, Eli Broad, Reed Hastings, and Betsy DeVos, Nick Hanauer thinks and reflects on what he is doing and where he is going and how it affects society. This is a sign of intelligence.

As I have mentioned here, I am Jewish. Be that as it may, I regularly read the publication “Commonweal,” which is edited by lay Catholics (not Jesuits, as I originally sad) and often vigorously agree with its writers. Read this one by John Chryssavgis.

https://www.commonweal-magazine.org/prosperity-philanthropy

At the latest G7 summit in Biarritz, U.S. President Donald Trump reassured the world that “our economy is creating jobs and helping the poor.” A similar confidence was expressed in a recent op-ed published by the Wall Street Journal. It was titled “Making Money is a Patriotic Act” (August 13, 2019). Signed by Bernie Marcus, a cofounder of Home Depot, and the New York City supermarket magnate John Catsimatidis, the op-ed opened with a striking, quasi-religious claim: “The two of us are quite rich. We have earned more money than we could have imagined and more than we can spend on ourselves, our children and grandchildren. These days getting rich off a profitable business is regarded as almost sinister. But we have nothing to apologize for and we don’t think the government should have more of our profits.” The fact that the latter is a prominent member in, and generous donor to, the Greek Orthodox Church in America (as well as to the Roman Catholic Archdiocese of New York) prompted me to reflect again on the age-old question of wealth and poverty in Christian thought. This is a question where Orthodox and Roman Catholic teaching are very similar, if not the same.

Of course, the connection or correspondence between prosperity and philanthropy has long concerned economists, political theorists, and moral philosophers, as well as theologians. Economic resources are indispensable to the church, but the church has an obligation to husband its resources in a way that includes the less fortunate. When it comes to wealth, the focus for Christians should be beneficent compassion (the law of love) rather than brutal competition (the law of survival of the fittest). Proclaiming that greed is neither sinister nor sinful and claiming that the government should not impose higher taxes on the wealthy is at odds with the Christian responsibility to recognize the dignity and parity of the least of our brothers and sisters (Matthew 25:40).

The authors boast of creating employment (albeit at often degradingly low salaries) and supporting charities (while benefiting from generous tax deductions for charitable giving), but they’re also proud of having risen from meager origins to achieve the American Dream. This up-by-the-bootstraps success narrative may be convenient for the Christian right, but it is inconsistent with both Orthodoxy and Roman Catholic social teaching.

Before contemplating the spiritual message, however, let’s consider the economic argument. Fiscal conservatives have long insisted that private charity is better than government handouts; helping hands, they say, should be inspired by a heart of compassion rather than compelled by law. But to suggest that wealthy donors can replace government programs is both arrogant and dangerously irresponsible. Private philanthropy falls off during economic downturns, when poverty rises. In other words, philanthropy tends to be cyclical, whereas public programs are designed to be counter-cyclical, helping the most when there’s the greatest need for help. The idea that faith-based or privately organized charity is more efficient or more effective than government relief has not been true since the industrial revolution. It is especially untrue during a recession.

But much of secular philanthropy is less about providing relief to the poor than about stockpiling tax deductions and/or getting one’s name emblazoned on the front of a new cultural or religious institution. No matter how dizzying the donations of the wealthy, they are in fact a minuscule fraction—economists estimate it’s less than 0.031 percent—of current social needs. It would be wonderful if more of society’s most fortunate members would respond to the needs of the less fortunate. But it is a fantasy to believe that voluntary organizations, including religious ones, could adequately replace the array of government health and social programs that help the most vulnerable.

Take some examples from my own church, which is also the church of John Catsimatidis. How troubled are Orthodox leaders that the tens of millions of dollars worth of donations raised for a church at Ground Zero in New York City—all of which doubtless qualify for tax deductions as charitable gifts—will in no way benefit the underprivileged, in a city where there is visible evidence of material want on every street corner? How often do Orthodox Christians and perhaps especially Orthodox clergy stop to examine their lifestyle in light of their vocation to close rather than widen the gap between rich and poor? And when wealthy Orthodox Christians give, how much do they focus their generosity on impoverished fellow Christians—or, indeed, on impoverished non-Christians?

Recently, at a traffic stop in Lewiston, Maine, I observed a refugee woman cross the road in order to offer money to a beggar. I was instantly reminded of the episode in Luke’s Gospel “when Jesus looked up and saw the rich putting their gifts into the treasury. He also saw a poor widow put in two mites. And he said, ‘Truly I tell you, this poor widow has put in more than all of them; for they all contributed out of their abundance, but she out of her poverty put in all the livelihood that she had’” (Luke 21:1–4). I carry a mite with the cross that I wear—a reminder that the cross entails sacrifice and that my social obligations are central to any spiritual aspiration. This is true for everyone of course, not only the rich; and “rich” is a relative term. But there is no relativizing away the special duty of those who have much more than they need to help provide for those who have less than they need. Complaints about high taxes signal that one thinks of this duty as merely an option.

Even the subtler, seemingly softer mercantilism proposed by the recent Business Roundtable in its August 2019 “Statement on the Purpose of a Corporation,” which seems to reverse course on the priority of maximizing shareholder value, and to soft-pedal the exploitation of offshore labor and ecological despoliation, is not really a confession of guilt but rather an admission that big business now has a public-relations problem.

Saints and mystics have always understood the connection between ascesis and communion: those who are unable to control their appetites—to say “enough” when their own needs have been met—are less likely to notice and respond when their neighbor does not have enough. Luxury is the enemy of solidarity. The tragedy is not just that the rich may never make it to heaven, but also that they may never understand why heaven is beyond their reach.

It may be “easier for a camel to go through the eye of a needle than for a rich person to enter the kingdom of God…but what is impossible for mortals is possible for God” (Luke 18:24–26). In the larger picture of God’s beneficence, there is always ample room for forgiveness and redemption. Almsgiving allows us to confront our inner brokenness and spiritual poverty by reaching out to others, to the least and lowest in our community until, as Abba John wrote in sixth-century Gaza, “we reach the point of regarding the poor as our equal and as our neighbor” (Letter 636). But to recognize the poor as our equals is to understand that they cannot be left at the mercy of a philanthropist’s whim, and the satisfaction of their needs is not another charitable option, like the construction of a new opera house or university gym. Rightwing philanthropists need to get over their aversion to public-assistance programs and their resentment of the taxes that fund them. And before they write op-eds congratulating themselves for their own munificence or disparaging government programs they dismiss as “handouts,” they would do well to remember another famous passage from Scripture: “Let not your left hand know what your right hand is doing” (Matthew 6:3).

Steven Singer has written recently about the origins of charter schools. He insists that Albert Shanker, president of the AFT, was not their father.

The real fathers of this first big step towards privatization, he writes, were Ted Kolderie and Joe Nathan of Minnesota, who wrote the nation’s first charter school law and opened the door wide for entrepreneurs, grifters, and attacks on unions.

Singer is a flame-thrower in this post, because he has come to see that behind the “progressive” facade of charters lurks Betsy DeVos, the Walton Family, the Koch brothers, ALEC, and a galaxy of public school haters.

He begins:

If bad ideas can be said to have fathers, then charter schools have two.

And I’m not talking about greed and racism.

No, I mean two flesh and blood men who did more than any others to give this terrible idea life – Minnesota ideologues Ted Kolderie, 89, and Joe Nathan, 71.

In my article “Charter Schools Were Never a Good Idea. They Were a Corporate Plot All Along,” I wrote about Kolderie’s role but neglected to mention Nathan’s.

And of the two men, Nathan has actually commented on this blog.

He flamed on your humble narrator when I dared to say that charter schools and voucher schools are virtually identical.

I guess he didn’t like me connecting “liberal” charters with “conservative” vouchers. And in the years since, with Trump’s universally hated Billionaire Education Secretary Betsy Devos assuming the face of both regressive policies, he was right to fear the public relations nightmare for his brainchild, the charter school.

It’s kind of amazing that these two white men tried to convince scores of minorities that giving up self-governance of their children’s schools is in their own best interests, that children of color don’t need the same services white kids routinely get at their neighborhood public schools and that letting appointed bureaucrats decide whether your child actually gets to enroll in their school is somehow school choice!

But now that Nathan and Kolderie’s progeny policy initiative is waning in popularity, the NAACP and Black Lives Matter are calling for moratoriums on new charters and even progressive politicians are calling for legislative oversight, it’s important that people know exactly who is responsible for this monster.

And more than anyone else, that’s Kolderie and Nathan.

Over the last three decades, Nathan has made a career of sabotaging authentic public schools while pushing for school privatization.

He is director of the Center for School Change, a Minneapolis charter school cheerleading organization, that’s received at least $1,317,813 in grants to undermine neighborhood schools and replace them with fly-by-night privatized monstrosities.

He’s written extensively in newspapers around the country and nationwide magazines and Websites like the Huffington Post.

Read it all. Joe Nathan has frequently commented on this blog, defending charters as just a different kind of public school. I disagree vigorously because it is obvious by now that charters have become vehicles for busting unions (more than 90% are non-union), charters are more segregated than public schools (especially in Minnesota, where there are charters specifically for children of different ethnic and racial groups), and they remove democratic control in communities of color. The proliferation of corporate charter chains adds to their reputation as destroyers of democracy.

Bottom line is that Walton money, Koch money, DeVos money is not meant to advance public education but to eliminate it.

There is a reason that the Democratic candidates for president are distancing themselves from the charter idea. They understand that they can’t support the DeVos agenda. Betsy did us all a favor by removing the mask.

 

The federal Charter Schools Program handed out $440 Million this year. Betsy DeVos uses this money as her personal slush fund to reward corporate charter chains like KIPP ($89 million), IDEA (over $200 million in two years), and Success Academy ($10 million). Originally, it was meant to launch start-up charters, but DeVos has turned it into a free-flowing spigot for some of the nation’s richest charter chains.

Last March, the Network for Public Education published its study of the ineptness of the Charter Schools Program, revealing that at least one-third of the charters it funded had either never opened or had closed soon after opening. About one billion dollars was wasted by this federal program.

Despite the program’s manifest incompetence and failure, Betsy DeVos asked Congressional appropriators to increase its funding to $500 million a year, so she could more efficiently undermine public schools across the nation.

House Democrats responded by cutting the Charter Schools Program to $400 Million ($400 million too much), but $100 million less than DeVos asked for.

Senate Republicans want to increase the funding for the destructive Charter Schools Program to $460 million, giving DeVos a boost of $20 million. The Senate Republicans added a special appropriation of $7.5 million for charter schools in rural districts. Is there a need for charter schools in rural districts that may have only one elementary school and one high school?

The best remedy for the federal Charter Schools Program would be to eliminate it altogether.

Charter schools are amply funded by the Walton Family Foundation, the Gates Foundation, Reed Hastings, Eli Broad, Michael Bloomberg, the Koch foundation’s, hedge fund managers, and a bevy of other billionaires on Wall Street and in Silicon Valley.