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| Who is the real burden on society? |
Mitt Romney was one of the worst candidates that the Republican Party could have picked as their presidential nominee in the 2012 election because his company, Bain Capital, often made money by being one of the biggest takers in the country. They would see a company that employed hundreds of people, giving them capital to spend in the community, which created an environment where other businesses could thrive, and where a healthy community could exist. Bain bought some of those companies and took out huge loans on the companies' credit so that they could pay themselves hundreds of millions of dollars in "management fees". Often times the companies could not pay back the enormous loans and the companies went out of business, the workers were laid off and the entire community took a big hit. Even though the Bain people made out quite well, I'm sure some of the workers lost homes and had to resort to unemployment insurance, food stamps and other forms of government assistance to get by. So, who were the takers in this scenario? It seems to me that he laid-off workers had something taken from them and Bain did the taking.
What's worse is that we, the taxpayers, had to pay for Bain's greed/poor management by providing assistance to the workers that were laid off. As for Bain, they got sweetheart tax rates on their profits because--due to successful lobbying efforts--the government has apparently been convinced that their business model is somehow good for the country. It is the new American business model: collect the profits while leaving the taxpayers responsible for losses and the costs of collateral damages.
Of course, Bain is just one private equity (aka "vulture capital") operation. There are others. And there are banks that illegally foreclosed on peoples' homes, banks that invested peoples' life savings and retirement funds in schemes the banks knew were worthless. All so they could make enormous profits and pass on the bill for the damages to the taxpayers. Now, they call anyone who needs assistance as a result of their schemes a "taker" while they enjoy the title of "job creator". And they are appalled when anyone suggests that they pay back some of their ill-gotten gains by way of higher taxes.
I assume that it would be extremely difficult, if not impossible, to figure out a way to fairly raise taxes on just the institutions that acted unethically. But I know that every thinking American would agree that carried interest profits should be taxed at the same rate as workers' wages. There is no stimulative effect to the economy from these special tax breaks and it rewards private equity firms for destroying jobs.
So, do you wonder why the pundits on TV who claim to have our best interests in mind don't scream about this issue and urge you daily to call your representatives to eliminate this subsidy for job loss? Could it be that they are paid millions of dollars to create controversy rather than find solutions to problems? Should we stop getting our information and talking points from them and assess for ourselves what issues deserve our immediate, focused attention? Only if we want to improve our country and economy, I suppose.
~R. Charan Pagan
information systems technologist, musician, writer, filmmaker
Los Angeles, CA 90017
http://www.reclaimingourbirthright.blogspot.com/
What's worse is that we, the taxpayers, had to pay for Bain's greed/poor management by providing assistance to the workers that were laid off. As for Bain, they got sweetheart tax rates on their profits because--due to successful lobbying efforts--the government has apparently been convinced that their business model is somehow good for the country. It is the new American business model: collect the profits while leaving the taxpayers responsible for losses and the costs of collateral damages.
Of course, Bain is just one private equity (aka "vulture capital") operation. There are others. And there are banks that illegally foreclosed on peoples' homes, banks that invested peoples' life savings and retirement funds in schemes the banks knew were worthless. All so they could make enormous profits and pass on the bill for the damages to the taxpayers. Now, they call anyone who needs assistance as a result of their schemes a "taker" while they enjoy the title of "job creator". And they are appalled when anyone suggests that they pay back some of their ill-gotten gains by way of higher taxes.
I assume that it would be extremely difficult, if not impossible, to figure out a way to fairly raise taxes on just the institutions that acted unethically. But I know that every thinking American would agree that carried interest profits should be taxed at the same rate as workers' wages. There is no stimulative effect to the economy from these special tax breaks and it rewards private equity firms for destroying jobs.
So, do you wonder why the pundits on TV who claim to have our best interests in mind don't scream about this issue and urge you daily to call your representatives to eliminate this subsidy for job loss? Could it be that they are paid millions of dollars to create controversy rather than find solutions to problems? Should we stop getting our information and talking points from them and assess for ourselves what issues deserve our immediate, focused attention? Only if we want to improve our country and economy, I suppose.
~R. Charan Pagan
information systems technologist, musician, writer, filmmaker
Los Angeles, CA 90017
http://www.reclaimingourbirthright.blogspot.com/
