Archives for category: Billionaires

This is my review of two very important books: Nancy MacLean’s “Democracy in Chains: The Deep History of the Radical Right’s Stealth Plan for America” and Gordon Lafer’s “The One Percent Solution: How Corporations Are Remaking America One State at a Time.”

Both books are important for understanding the undermining and capture of our democracy.

Both books explain the theory and practice of destroying the public sector for ideology and/or profit.

Read the review for a better understanding of the roles played by the Koch brothers, the DeVos family, and ALEC.

Today is Thanksgiving Day, and some will sit down to bounteous meals while others will line up at soup kitchens or go hungry. That’s America 2017.

It is a day for giving and a day for thanks. One way to Give is to volunteer at a soup kitchen at a local church. You will be glad you did. You will truly understand that it is better to give than to receive. You will learn to count your blessings.

The 1% can give thanks to the Republican Congress. Its tax plan will make them much, much richer, while shutting down deductions and tax credits that help students, teachers, and the middle class.

How will the rich benefit?

Here is one analysis, written by Ulrich Boser and Abel McDaniels of the Center for American Progress.

“Under the tax plan currently before Congress, billionaires like U.S. Secretary of Education Betsy DeVos would save hundreds of millions of dollars. A new analysis by the Center for American Progress Action Fund suggests that the money used to give DeVos and her family just one of these tax breaks would be enough to pay more than 6,000 teachers. Similarly, the money used to give President Donald Trump and his family an enormous tax break would be enough to pay more than 20,000 teachers.

“CAPAF’s analysis underscores how the House GOP plan will drain federal revenues. Yet, Betsy DeVos is one of several cabinet members who would reap millions as a result of the House Republican plan to eliminate taxes on multimillion-dollar estates. The plan also caps the tax rate on the income of wealthy owners of businesses like Amway, which the DeVos family owns.

“While many have examined how the plan will hurt ordinary working families and concentrate economic power in the largest corporations and the ultrawealthy, the magnitude of the tax cuts for the wealthy is difficult to understand. To put the effects of these cuts in perspective, CAPAF calculated the tax breaks that Betsy Devos and Donald Trump and their families would gain from just one provision of this plan and compared the value of those tax breaks to the cost of providing teachers for the nation’s students.

“For the analysis in this column, the authors relied on the previously mentioned CAPAF column, as well as the U.S. Department of Education’s 2016 allocations for selected programs and the Michigan Department of Education’s 2017 allocations to determine the amount of the state’s 21st Century Learning Centers grant and Title II grant awards, and divided the estate tax gain DeVos’s heirs would see by these numbers. The authors also used the average public school teacher salary determined by the National Center for Education Statistics, and the median bus driver salary determined by the Bureau of Labor Statistics, and divided the estate tax gain the Trump family would see by those numbers.

“To be clear: The federal estate tax does not fund state teacher and bus driver salaries; however, the comparison provides a concrete way of understanding the magnitude of just one of the many tax breaks for the wealthy contained in the House and Senate tax plans.

“DeVos’ family would gain $351 million from the estate tax repeal, according to the CAPAF analysis. The DeVos’ tax break amounts to more than five times the amount of federal money her home state of Michigan received for teacher professional development. Alternatively, the amount of the DeVos’ estate tax break alone could fund afterschool programs in Michigan for about 10 years. Or, that amount could pay the salaries of more than 6,000 badly needed public school teachers.

“Repealing the estate tax will give Trump’s heirs a $1.15 billion tax break, according to CAPAF’s calculations. That revenue would be enough to pay the salaries of more than 20,000 public school teachers, or more than 36,000 bus drivers, of which there is a shortage. Again, federal estate tax revenues do not fund state public employee salaries, but the comparison is useful for understanding how large the proposed tax cuts for the wealthy are.

“The Trump-McConnell-Ryan plan contains other provisions that do directly impact public schools. For example, the proposed expansion of college savings accounts will siphon money away from public schools. Wealthy families would be able to avoid paying taxes on thousands of dollars used for private school tuition. EdChoice, a conservative-leaning advocacy organization which actually supports the provision, admits the proposal is “not a solution for every family” and this is especially true “for families with limited means.””

It is a Reverse Robin Hood Tax Plan. Take from hard-working middle-income families and give to the undeserving rich.

For those white working class people who voted for Trump, please notice that you will get crumbs from his bounteous table at Mar-a-Lago, surrounded by friends who paid $200,000 to join his club.

Don’t believe it when Paul Ryan or a.m. itch McConnell or Trump says that the GOP tax plan cuts taxes for the middle class. That’s a lame joke. It is a tax plan to cut taxes for billionaires.

The tax plan is payback to the richest Americans, whose campaign contributions keep the Agra day Old Party happy.

“The House Republicans’ tax reform plan has arrived. And as it turns out, the people it aims to please aren’t the infamous 1 percent, the upper class, or even millionaires.

“Instead, they’re multi-multi-millionaires and billionaires — the top 0.1 percent or even the top 0.01 percent.

“This rarified group has poured gobs of money into Republican campaigns in recent years. And they expect a return on their investment.

“First up is a cut in the federal tax rate that corporations pay on their profits — from 35 percent to 20 percent. Republicans have dutifully argued this cut will help ordinary workers by encouraging companies to expand and create jobs, but this is nonsense. The tax savings would largely go to dividends and other payouts to stock owners. And since wealth ownership in this country is even more unequal than income, the benefits of this cut overwhelmingly go to the richest of the rich.

“Second is the elimination of the estate tax. This cut is transparently meant only for the richest of the rich. As it is, the tax doesn’t even kick in until an inheritance is worth at least $5.49 million ($10.98 million for a married couple), and then the 40 percent rate only applies to the money above that threshold. So no one needs this tax to go away except the top tiny fraction of the 1 percent. The GOP would soften the blow to revenue by delaying its complete elimination for six years, and just increasing the threshold in the meantime. But the end result is the same.

“Third is a change in the federal tax for what’s called “pass through” businesses. Instead of sending profits to shareholders, these companies pass their profits through as income to their owners, so the money currently gets hit by the regular individual income tax instead of the corporate profits tax. Now, the House GOP intends to leave the top 39.6 percent individual income tax rate in place for people making $1 million and above. So the Republicans want to at least minimize the imbalance between that and the new 20 percent corporate tax rate by cutting the pass-through rate to 25 percent.

“This is where it gets a little wonky.

“There’s actually a huge amount of inequality among pass-through businesses, so only a tiny fraction pay the top income tax rate as it is. (And even fewer will pay it under the GOP’s changes to the individual income brackets and rates.) So the whole idea that this is a tax break for small businesses is nonsense.

“But on top of that, defining who counts as a “pass through” business is tricky, and it’s entirely possible that rich individual filers could rejigger their tax paperwork to claim to be a pass through business. To avoid that, the GOP has inserted some pretty complex rules, which rather hilariously undercut the claim that they’re “simplifying” the tax code. But those rules will also likely guarantee that people who actually work full time in the small business they own will still pay the normal income tax rates — only passive investors, who are disproportionately wealthy, will see the full benefits of the lower 25 percent rate. (Along with, say, real estate moguls like a certain sitting U.S. president.)”

When you look at the details, it is even worse.

All the cuts that will hurt ordinary people—students, teachers, families, small businesses— and the services they rely on are being made to finance tax cuts for the richest people in the nation.

In Arizona, the legislature wants to remove all limits to the expansion of vouchers. Despite the many voucher plans already enacted, 85% of students are still enrolled in public schools. This past summer, parents, teachers, and public spirited citizens collected over 100,000 signatures on petitions to halt the implementation of the new law until a referendum is held. The referendum is scheduled for the spring of 2018.

Voucher advocates are desperate to stop the referendum. They expect that vouchers will be rejected, as they have been in every state where a referendum on vouchers was conducted. Pro-voucher groups are funding lawyers who are trying to find a way to block the vote.

Meanwhile, groups funded by the infamous Koch brothers have launched an advertising campaign targeted at Hispanic voters called “the Libre Institute.”

Laurie Roberts of the Arizona Republic describes their efforts here:

“The Koch network is stepping up to protect its investment in Arizona.

“An out-of-state group called the LIBRE Institute on Thursday launched a “six-figure grassroots initiative to empower and educate families in Phoenix about the policies increasing their educational opportunities.”

“Translation: Charles and David Koch and their conservative/libertarian network of zillionaire donors are prepared to spend whatever it takes to ensure that Arizona voters can’t – or won’t – kill the expanded voucher program approved earlier this year by Gov. Doug Ducey and the Arizona Legislature.

“Koch involvement is nothing new

“Already, the Koch network and associated dark money groups have spent millions to get a governor and Legislature that would push for and pass universal vouchers.

“Already, the Koch-funded Americans for Prosperity is suing to try to knock Prop. 305 – the citizen referendum aimed at vetoing our leaders’ universal voucher law – off the 2018 ballot.

“Now comes the plan the Koch-funded LIBRE Institute to spend hundreds of thousands of dollars targeting Arizona Latino families with ads, mailers and phone calls about the wonders of educational choice. Given that we already have plenty of educational choice, I’m guessing the campaign is really about the state’s new universal voucher law – the one that’s on hold thanks to a true grassroots referendum effort by a citizen group called Save Our Schools Arizona.”

I have opened the link to Roberts’ article three times.

The first time I opened it, I encountered two video ads promoting vouchers.

The second time, the ads were for commercial products.

The third time, the voucher ads were back.

Ironic that a story criticizing the fake “Libre Institute” contains ads funded by the same organization.

Yet again, we will discover whether big money can cancel and control democracy.

Here is a list of the Richest people in America, compiled by Forbes.

Note that the Koch brothers, Charles and David, together have more money than Bill Gates ($84 Billion.)

Here is Forbes list of America’s richest families.

The two lists are confusing when seen together because the Gates family and the Bezos family are not on the second list but families with far less billions are.

Oh, well.

During the Eisenhower administration—the 1950s—the highest marginal tax rate was 91% for those at the very top. There was less income inequality then than now. The average CEO made about 20 Times more than the average worker. Today, the average CEO makes 270 times more than the average worker.

Here is a valuable article showing the decline in the progressivity of income tax rates from 1960-to 2004. In 1960, there were many more tax brackets, and those at the top paid a rate of 71.4%. Today they pay about 35%, not including loopholes and deductions.

Income inequality underlies much of the social and economic misery in our society.

Read “The Spirit Level,” by Richard Wilkinson, et al, which makes the case that greater equality creates happier, healthier societies.

Obviously the Republicans are not going to make a turn towards increasing the progressivity of taxes.

But it is a goal we should work towards.

Bill Gates has a big new idea. He has gotten together with a few other big-time philanthropists and created a pool of $500 Million, with which they plan to solve the really big problems in health, education, and economic opportunity. They call their collaboration “Co-Impact.” One of the collaborators is Jeff Skoll, who was one of the producers of the public school-bashing hitjob “Waiting for Superman.”

Emily Talmage is not happy about what’s coming from this group. She sees it as yet another attempt by the super-elites to impose their will on the rest of us, who lack their money and power.

Let us stipulate: no one elected a Bill Gates and his friends to remake social policy. Sure, Trump is busy dismantling and shredding social policy, but who put Bill in charge? One thing we can say about the richest man in America: Every one of his interventions into American education has failed. There is no reason to believe he has learned anything from the slow collapse of VAM and the catastrophe of Common Core. To the contrary, he is still propping CCSS up with new millions, although it’s very name is mud.

Emily writes:

“Gates is one giant, gnarly tree in an dark, overgrown forest of private “givers” who are dead-set on remaking our nation into something reminiscent of a feudalistic society.

“I say it’s time to investigate the whole rotten system that’s allowing this to happen.

“Seriously, folks. This just can’t be okay.”

If you read the previous post, you know that the Sackler family became fabulously wealthy by developing, manufacturing, and marketing a painkiller called OxyContin, an opioid. You also know that there is an opioid crisis in the nation that kills 50,000 people a year.

Sarah Darer Littman here explains how Jonathan Sackler has used his wealth to destroy and privatize public schools, replacing them with privately managed charter schools.

Littman, a journalist in Connecticut, write that Sackler:

“founded the charter school advocacy group ConnCan, progenitor of the nationwide group 50CAN, of which he is a director. He is on the Board of Directors of the Achievement First charter school network. Until recently, Sackler served on the board of the New Schools Venture Fund, which invests in charter schools and advocates for their expansion. He was also on the board of the pro-charter advocacy group Students for Education Reform.

“Through his personal charity, the Bouncer Foundation, Sackler donates to the abovementioned organizations, and an ecosystem of other charter school promoting entities, such as Families for Excellent Schools ($1,083,333 in 2014, $300,000 in 2015 according to the Foundation’s Form 990s) Northeast Charter School Network ($150,000 per year in 2013, 2014 and 2015) and $275,000 to Education Reform Now (2015) and $200,000 (2015) to the Partnership for Educational Justice, the group founded by Campbell Brown which uses “impact litigation” to go after teacher tenure laws. Earlier this year, the Partnership for Educational Justice joined 50CAN, which Sackler also funds ($300,000 in 2014 and 2015), giving him a leadership role in the controversial—and so far failing cause—of weakening worker protections for teachers via the courts.

“Just as Arthur Sackler founded the weekly Medical Tribune, to promote Purdue products to the medical professional who would prescribe them, Jon Sackler helps to fund the74million.org, the “nonpartisan” education news website founded by Campbell Brown. The site, which received startup funding from Betsy DeVos, decries the fact that “the education debate is dominated by misinformation and political spin,” yet is uniformly upbeat about charter schools while remarkably devoid of anything positive to say about district schools or teachers unions.”

Purdue Pharmaceuticals, the manufacturer of OxyContin, was masterful at marketing OxyContin. According to a critical GAO REPORT, IT handed out “lavish swag” for health care professionals.

The charter movement has adopted some of the same techniques.

“The description of “lavish swag” will sound familiar to anyone who has witnessed one of the no-expenses-spared charter school rallies that are a specialty of Sackler-funded organizations like Families for Excellent schools. Then there is the dizzying array of astroturf front groups all created for the purpose of demanding more charter schools. Just in Connecticut, we’ve had the Coalition for Every Child, A Better Connecticut, Fight for Fairness CT, Excel Bridgeport, and the Real Reform Now Network. All of these groups ostensibly claim to be fighting for better public schools for all children. In reality, they have been lobbying to promote charter schools, often running afoul of ethics laws in the process.

“Take Families for Excellent Schools, a “grassroots” group that claims to be about parent engagement, yet was founded by major Wall Street players. In Connecticut, the group failed to register its Coalition for Every Child as a lobbying entity and report a multimillion-dollar ad buy expenditure and the costs of a rally in New Haven.

“In Massachusetts, Families for Excellent Schools-Advocacy (FESA) recently had to cough up more than $425,000 to the Massachusetts general fund as part of a legal settlement with the Office of Campaign and Political Finance, the largest civil forfeiture in the agency’s 44-year history. Massachusetts officials concluded that FESA violated the campaign finance law by receiving contributions from individuals and then contributing those funds to the Great Schools Massachusetts Ballot Question Committee, which sought to lift the cap on the number of charter schools in the state, in a manner intended to disguise the true source of the money. As part of the settlement, the group was ordered to reveal the names of its secret donors. Jonathan Sackler was one of them.”

Why does Jonathan Sackler hate public schools?

I was tempted to give an entire day to this post about the Dark Money group deceptively called Families for Excellent Schools.

The “families” are financiers, billionaires, and garden-variety multimillionaires. They enjoyed great success in New York, where they made an alliance with Governor Cuomo and launched a $6 Million TV buy to promote charter schools. Under pressure from Cuomo, the state legislature compelled the City of New York to provide free space to charter schools and to give Eva Moskowitz whatever she wanted.

Then, Families for Excellent Schools opened shop in Massachusetts, where they launched a multimillion dollar campaign to increase the number of charter schools.

Parents, teachers, the teachers unions, Rural and suburban communities turned against charter schools. Bernie Sanders and Elizabeth Warren joined the opponents of charter schools. Before the vote, the backers of Question 2 were revealed in the media (though not all of their names), and the referendum to expand the charter sector went down to a crashing defeat.

After the election, things went bad for FES.

“This September, the Massachusetts Office of Campaign and Political Finance fined Families for Excellent Schools a comparatively nominal $426,500. But it also forced the charter group to reveal its donors — a who’s who of Massachusetts’ top financiers, many of whom are allies of Gov. Charlie Baker — after it had promised them anonymity.”

In addition to the fine, FES was banned from the Bay State for four years.

One of the big donors to FES was the rightwing, anti-union Walton Family, which gave FES more than $13 Million between 2014 and 2026. The chairman of the Massachusetts Board of Education gave FES nearly $500,000.

Now FES is trying to redefine itself.

Here is a suggestion: support the public schools that enroll nearly 90% of children. Open health clinics in and near schools. Invest in prenatal care for poor women. Lobby for higher taxes for the 1%.

Steven Singer has noticed that the hired hands of the billionaire “reformers” like to play the role of victim.

They are bravely standing up to those teachers’ unions on behalf of “the kids.” All they have on their side are the Koch brothers, the DeVos family, Bill Gates, Eli Broad, the Waltons and a long list of other billionaires who want to privatize public schools and get rid of those unions.

Who is Goliath? Who is David?

Who are the real grassroots activists?

Don’t be fooled.

Howard Fuller recently decided to close down the organization Black Alliance for Educational Options, which received funding from billionaires to promote charters and vouchers to African Americans. BAEO was funded initially by the rar-right Bradley Foundation, then added millions from the Walton Family Foundation, the Gates Foundation, and others, all to sell privatization to people who need good public schools, good healthcare, and good jobs, not free markets.

Now, Fuller tells ace education journalist Alan Borsuk that a $15-an-hour minimum wage would mean more to kids in central cities than better curriculum (or, may we assume, School Choice).

The billionaires got good return on investment. BAEO lined up support among key blacks to pass charter legislation in Alabama, Mississippi, and D.C.

But Fuller has second thoughts. The damage is done. Will he now repudiate the conservatives who pumped millions into BAEO to perpetuate the hoax that privatization is “the civil rights issue of our time”?

“One force behind his changing views: A deeper understanding of the life circumstances of young people and the difficulties a school has in changing the trajectory of their lives.”

Nice.

Will he reach out to the Walton Family, whose Walmart stores employ more than one million people, and persuade them about the importance of paying $15 an hour and giving them enough hours of employment to support their families?

Will he tell the powerful Bradley Foundation? The Gates Foundation, whose idea of fighting poverty is to promote the Common Core Standards?

Fuller was a bitter critic of trachers’ unions. Has he figured out that union jobs are a godsend for Black and Hispanic workers, providing better pay than non-union jobs and a measure of job security. Fuller appeared in “Waiting for Superman” harshly criticizing public schools, teachers, and unions.

Has he figured out that he helped to shred the route to the middle-class for many of the families and children he claims to care about? Has he noticed how many of the thriving charter chains are run by wealthy white men?

Was he cynically used? Was he duped? Was he a willing collaborator? On reflection, does he think that children and parents of color benefitted or were harmed when their local schools were taken over by corporate charter chains?

Howard Fuller is a smart man. I hope he speaks out and explains more about his decision to close BAEO. I welcome a submission to this blog.