The new Rising staff is outraged that there are leaks of Billioinaire tax returns.
This Putsch Was Decades in the Making
G.O.P. cynics have been coddling crazies for a long time.
One striking aspect of the Capitol Hill putsch was that none of the rioters’ grievances had any basis in reality.
No, the election wasn’t stolen — there is no evidence of significant electoral fraud. No, Democrats aren’t part of a satanic pedophile conspiracy. No, they aren’t radical Marxists — even the party’s progressive wing would be considered only moderately left of center in any other Western democracy.
So all the rage is based on lies. But what’s almost as striking as the fantasies of the rioters is how few leading Republicans have been willing, despite the violence and desecration, to tell the MAGA mob that their conspiracy theories are false.
Bear in mind that Kevin McCarthy, the House minority leader, and two-thirds of his colleagues voted against accepting the Electoral College results even after the riot. (McCarthy then shamelessly decried “division,” saying that “we must call on our better angels.”)
Or consider the behavior of leading Republicans who aren’t usually considered extremists. On Sunday Senator Rob Portman declared that we need to “restore confidence in the integrity of our electoral system.” Portman isn’t stupid; he has to know that the only reason so many people doubt the election results is that members of his party deliberately fomented that doubt. But he’s still keeping up the pretense.
And the cynicism and cowardice of leading Republicans is, I would argue, the most important cause of the nightmare now enveloping our nation.
Of course we need to understand the motives of our homegrown enemies of democracy. In general, political scientists find — not surprisingly, given America’s history — that racial antagonism is the best predictor of willingness to countenance political violence. Anecdotally, personal frustrations — often involving social interactions, not “economic anxiety” — also seem to drive many extremists.
But neither racism nor widespread attraction to conspiracy theories is new in our political life. The worldview described in Richard Hofstadter’s classic 1964 essay “The Paranoid Style in American Politics” is barely distinguishable from QAnon beliefs today.
So there’s only so much to be gained from interviewing red-hatted guys in diners; there have always been people like that. If there are or seem to be more such people than in the past, it probably has less to do with intensified grievances than with outside encouragement.
For the big thing that has changed since Hofstadter wrote is that one of our major political parties has become willing to tolerate and, indeed, feed right-wing political paranoia.
This coddling of the crazies was, at first, almost entirely cynical. When the G.O.P. began moving right in the 1970s its true agenda was mainly economic — what its leaders wanted, above all, were business deregulation and tax cuts for the rich. But the party needed more than plutocracy to win elections, so it began courting working-class whites with what amounted to thinly disguised racist appeals.
Not incidentally, white supremacy has always been sustained in large part through voter suppression. So it shouldn’t be surprising to see right-wingers howling about a rigged election — after all, rigging elections is what their side is accustomed to doing. And it’s not clear to what extent they actually believe that this election was rigged, as opposed to being enraged that this time the usual vote-rigging didn’t work.
But it’s not just about race. Since Ronald Reagan, the G.O.P. has been closely tied to the hard-line Christian right. Anyone shocked by the prevalence of insane conspiracy theories in 2020 should look back to “The New World Order,” published by Reagan ally Pat Robertson in 1991, which saw America menaced by an international cabal of Jewish bankers, Freemasons and occultists. Or they should check out a 1994 video promoted by Jerry Falwell Sr. called “The Clinton Chronicles,” which portrayed Bill Clinton as a drug smuggler and serial killer.
So what has changed since then? For a long time Republican elites imagined that they could exploit racism and conspiracy theorizing while remaining focused on a plutocratic agenda. But with the rise first of the Tea Party, then of Donald Trump, the cynics found that the crazies were actually in control, and that they wanted to destroy democracy, not cut tax rates on capital gains.
And Republican elites have, with few exceptions, accepted their new subservient status.
You might have hoped that a significant number of sane Republican politicians would finally say that enough is enough, and break with their extremist allies. But Trump’s party didn’t balk at his corruption and abuse of power; it stood by him when he refused to accept electoral defeat; and some of its members are responding to a violent attack on Congress by complaining about their loss of Twitter followers.
And there’s no reason to believe that the atrocities yet to come — for there will be more atrocities — will make a difference. The G.O.P. has reached the culmination of its long journey away from democracy, and it’s hard to see how it can ever be redeemed.
Why The Rich Like High Taxes
When politicians raise taxes on the rich, what do the rich do to protect their $$$? This Prof. shows how high taxes actually made America less equal.
The tax code was 11,000 pages long, full of exceptions that the rich had lobbied for.
America’s billionaires take center stage in national politics, colliding with populist Democrats
The populist onslaught has ensnared Facebook founder Mark Zuckerberg and Microsoft co-founder Bill Gates, led to billionaire hand-wringing on cable news, and sparked a panicked discussion among wealthy Americans and their financial advisers about how to prepare for a White House controlled by populist Democrats.
Past presidential elections have involved allegations of class warfare, but rarely have those debates centered on such a small subset of people.
“For the first time ever, we are having a national political conversation about billionaires in American life. And that is because many people are noticing the vast differences in wealth and opportunity,” said Timothy Naftali, a historian at New York University.
The growing hostilities between the ascendant populist wing of the Democratic Party and the nation’s tech and financial elite have spilled repeatedly into public view over the past several months, but they reached a crescendo last week with news that Bloomberg may enter the Democratic primary. With the stock market at an all-time high, the debate about wealth accumulation and inequality has become a top issue in the 2020 campaign.
The leaders of the anti-billionaire populist surge, Warren and Sanders, have cast their plans to vastly increase taxes on the wealthy as necessary to fix several decades of widening inequality and make necessary investments in health care, child care spending and other government programs they say will help working-class Americans.
Financial disparities between the rich and everyone else have widened over the past several decades in America, with inequality returning to levels not seen since the 1920s, as the richest 400 Americans now control more wealth than the bottom 60 percent of the wealth distribution, according to research by Gabriel Zucman, a left-leaning economist at the University of California at Berkeley. The poorest 60 percent of America has seen its share of the national wealth fall from 5.7 percent in 1987 to 2.1 percent in 2014, Zucman found.
But the efforts at redistribution pushed by Warren and Sanders have elicited a fierce and sometimes personal backlash from the billionaire class who stand to lose the most. At least 16 billionaires have in recent months spoken out against what they regard as the danger posed by the populist Democrats, particularly over their proposals to enact a “wealth tax” on vast fortunes, with many expressing concern they will blow the election to Trump by veering too far left.
ADBloomberg’s potential presidential bid follows that of fellow billionaires Tom Steyer, a major Democratic donor, and former Starbucks CEO Howard Schultz, who in September suspended his independent presidential bid. Steyer has proposed his own wealth tax, but Schultz ripped the idea as “ridiculous,” while Bloomberg suggested it was not constitutional and raised the prospect of America turning into Venezuela.
Piling on against the wealth tax have been corporate celebrities from Silicon Valley and Wall Street. Zuckerberg suggested Sanders’s call to abolish billionaires could hurt philanthropies and scientific research by giving the government too much decision-making power. Microsoft co-founder Gates criticized Warren’s wealth tax and mused about its impact on “the incentive system” for making money.
David Rubenstein, the billionaire co-founder of the Carlyle Group, told CNBC that a wealth tax would not “solve all of our society’s problems” and raised questions about its practicality. Also appearing on CNBC, billionaire investor Leon Cooperman choked up while discussing the impact a wealth tax could have on his family.
Amazon founder Jeff Bezos, a multi-billionaire and the world’s richest man, asked Bloomberg months ago to consider running for president in 2020, Recode reported Saturday. A Bloomberg spokesman did not immediately return a request to confirm the call. (Bezos is the owner of The Washington Post.) An Amazon spokeswoman did not respond to a request for comment.
“I don’t need Elizabeth Warren, or the government, giving away my money,” Cooperman said. “[Warren] and Bernie Sanders are presenting a lot of ideas to the public that are morally, and socially, bankrupt.”
Then there is perhaps the most prominent wealthy person of all likely to stand in the way of populist Democrats’ proposals: President Trump. Asked about the wealth tax, a White House spokesman declined to comment directly on the proposal but said in an email, “President Trump has been very clear: America will never be a socialist country.”
But there are signs the pushback is having little impact on nixing the idea in Democrats’ minds. Rep. Brendan Boyle (D-Pa.), who has endorsed Joe Biden for the Democratic nomination, told The Washington Post he is crafting a new wealth tax proposal to introduce in the House of Representatives. Boyle’s involvement suggests the idea has broader political support among Democrats than previously thought.
Warren’s campaign has created a tax calculator that shows how much money multimillionaires would pay under her plan. The initial wealth tax raised by Warren would raise close to $3 trillion over 10 years — enough money to fund universal child care, make public colleges and universities tuition-free, and forgive a majority of the student debt held in America, according to some nonpartisan estimates.
America has long had rich people, but economists say the current scale of inequality may be without precedent. The number of billionaires in America swelled to 749 in 2018, a nearly 5 percent jump, and they now hold close to $4 trillion collectively.
“The hyper concentration of wealth within the top 0.1 percent is a mortal threat to the American economy and way of life,” Boyle said in an interview. “If you work hard and play by the rules, then you should be able to get ahead. But the recent and unprecedented shift of resources to billionaires threatens this. A wealth tax on billionaires is fair and, indeed, necessary.”
But conservatives and even many Democrats have raised a number of objections to the wealth tax, arguing it could be easily skirted and may have limited political appeal. Microsoft’s Gates, famous for his philanthropic efforts, joked to the New York Times that it could erase his entire fortune. Sen. Chris Van Hollen (D-Md.) and Rep. Don Beyer (D-Va.) this week proposed a surtax on couples earning more than $2 million a year to address what they framed as unfairness in the tax code exacerbated by the Republican tax cuts, while stopping short of the starker wealth tax.
In an email, Bloomberg adviser Howard Wolfson denied that the prospect of paying the wealth tax factors into the former mayor’s interest in running for president: “Mike’s not worried about what would happen if Elizabeth Warren won. He’s worried about what would happen if Donald Trump won.”
Still, the ultrarich have still taken notice of the threat, according to interviews with half a dozen financial planners and wealth managers.
Kathryn Wylde, president of the Partnership for New York City, whose membership includes many of the country’s biggest financial firms, said members of the business community are “agonizing” over the prospect of having to choose between Warren and Trump in the general election.
“A lot of people in the Wall Street crowd still think the world is top-down,” Wylde said. “They think the people at the top of the pecking order are still making the decisions or driving the debate, as opposed to the new reality of grass-roots mobilization. They don’t realize the way pushback to their criticism goes viral.”
Lance Drucker, president and CEO of Drucker Wealth Management, said he has recently heard alarm from many of his millionaire clients over plans like Warren’s to implement a wealth tax on fortunes worth more than $50 million.
AD“Honestly, it’s only been the last month when people started getting worried,” said Drucker in an October interview. “These tax proposals are scaring the bejeezus out of people who have accumulated a lot of wealth.”
Some financial planners are urging wealthy clients to transfer millions to their offspring now, before Democrats again raise estate taxes. Attorneys have begun looking at whether a divorce could help the super-rich avoid the wealth tax. And some wealthy people are asking whether they should consider renouncing their U.S. citizenship and moving to Europe or elsewhere abroad ahead of Democrats’ potential tax hikes.
“You’re hearing it already,” said Jonathan Lachowitz, a financial planner at White Lighthouse Investment Management, who said he has heard discussions about leaving the country and renouncing citizenship or other legal tax planning moves due to Democrats’ tax plans from several multimillionaires. “As the frustration mounts and tax burdens rise, people will consider it, just the way you have New Yorkers moving to Florida.”