copyright © 2010 Betsy L. Angert. BeThink.org
The day was Sunday, August 1, 2010. Former Fed Chairman, Alan Greenspan appeared on Meet the Press. When asked to discuss the Congressional debate on tax cuts, the man known to move markets, a person who leans to the “Right,” offered a decisive decree. In direct disagreement with Republican officials and the profitable corporations that fund countless political campaigns, Mister Greenspan declared, “Look, I’m very much in favor of tax cuts, but not with borrowed money. And the problem that we’ve gotten into in recent years is spending programs with borrowed money, tax cuts with borrowed money, and at the end of the day, that proves disastrous. And my view is I don’t think we can play subtle policy here on it.”
This statement was as a slap in the face to corporations, or more correctly to the tycoons who head these firms. Multi-millionaire media moguls might understand this best. These television and radio Executives experience firsthand that influence over an industry can translate into influence over an outcome. Cable News Network Chief Officers are among those who actively make use of this truth. Tax cuts expired? “Never;” say network Administrators and the newscasters such as Allan Chernoff, who do their bidding.
Prominent persons in the Press know a snappy slogan, a simple statement repeated over and over again, an authoritative analysis, will yield a colossal return. If the powerful exert pressure, they can sway the public and those who will persuade Congress to act, or not take action. Without resorting to force, the wealthy need not worry. Forceful levy loopholes and tax rate reducers were long ago secured and still loom large.
Companies, most of which pay no United States taxes are often led by the affluent who, for years, sought greater protection for their wealth.. Indeed, many corporations forfeit less in levies in 2010 than in previous years. Deductions are a delightful indulgence. Even the electorate has grown to appreciate this pleasurable pursuit.
Individuals influenced by industry infomercials have insisted on the luxury. Tax bills in 2009 are at the lowest level since 1950. Regardless, many moneyed Americans want these lowered, if not eliminated in total. Thus, the public sees what they have for days, or is it weeks, a flood of news stories that speak in contrast to Economist Greenspan’s pronouncement. The powerful understand that the former Fed Chairs statement was quite a severe blow to those invested in a taxless ideology.
On the same date, on Cable News Network’s a distinguished Anchor, Newsweek and Washington Post Columnist, Fareed Zakaria concurred. The time to cut the deficit and let the Bush tax cuts expire is now. Editor of Newsweek International and a New York Times bestselling Author, Mister Zakaria asserts, “Were the tax cuts to expire, the budget deficit would instantly shrink by about 30 percent, or more than $300 billion. But Republicans are now adamantly opposed to any expiration of the Bush tax cuts because they say that would weaken the economy.” This contention, with consideration for a credible source, was a second slam to commercial interests and to the political Party that promotes their causes.
Mister Zakaria’s editorial would not be aired endlessly on various outlets. Nor would Alan Greenspan’s words be heard on many a local channel. Another expert on policy, one who also speaks for the “Right”, David Stockman, former Director of the Office of Management and Budget under President Ronald Reagan would also be kept out of sight.
Only a day earlier, an article penned by Mister Stockman appeared in The New York Times. In the missive, Stockman, once identified as a man with ”Lincolnesque credentials” expressed the angst he feels when his cohorts’ claim the need to extend the tax cuts. The Reagan Budget Director cynically summarizes “How my Republican Party destroyed the American economy.” The treatise titled Four Deformations of the Apocalypse, was the final strike.
These slams could not stand, high salaried Chief Executives and their shills, such as Cable News Network, calculated. Turner Broadcasting Systems decided to turn the ultimate key. Media is the message. The Press is able to manufacture promotional presentations and produce alternative authenticities. The company realized the need to take restrained; yet aggressive action. Slick salespersons, public relations professionals in the Press are well aware of the sound adage; a spoonful of sugar helps the medicine go down, in the most delightful way. People like sweetened solutions.
While true; each of the three esteemed experts spoke eloquently, and with abundant authority, the more persuasive and popular drone can and does drown out a meaningful message. Cable News Network has vast resources and knowledge of how to deliver decisively, the populace demands, words of woe and whoa! The Turner channels, with Corporate Chiefs interest at heart, transmits, as many Republicans, Democrats, and Independents wish to believe; life as we have come to know it cannot change.
Regardless of Party affiliation, in America the public professes, “We are taxed enough.” En masse, citizens clamor; “No new taxes!” “No tax increases!” We do not want to pay the price, is the consensus. Most do not want to acknowledge, as Alan Greenspan and Fareed Zakaria have, Americans have paid for their own indulgence and chosen ignorance dearly.
In accordance with the adopted corporate mission, the wishes of Chief Executives, and possibly his own penchant, Correspondent Allan Chernoff compiled a report that would please the common folk. This puff-piece touts as the public wishes to believe; the people need not contribute to the greater good of the community. The innocent “documentation” that passes for fact, or is passed on as the truth, floods the airwaves. It appears on local stations and hour after hour on network programs.
This “news story” (sic) makes no mention of how the quoted sources benefit from a promoted belief, “In planning to let taxes rise, President Obama hopes to chop the budget deficit. But if families have to cut back on spending to pay those taxes, that may hurt the economy. It could de-rail the recovery.”
The Press hides what threatens the wealthy; the words of Alan Greenspan, He said “The problem that we’ve gotten into in recent years is that spending programs with borrowed money, tax cuts with borrowed money, and at the end of the day that proves disastrous and my view is I don’t think we can play subtle policy here.”
The “Right” and media moguls who used to anxiously await Alan Greenspan’s advise now reject the man once titled an oracle. David Stockman, once characterized as a wunderkind is no longer welcome at the White House, on Wall Street, or in the Mainstream Media studios.
Interesting, or possibly, as expected, the words of the esteemed Mister Zakaria are also void in the less than honest, well honed, and more aired, Cable News Network account. “Federal tax receipts as a percentage of the economy are at their lowest point since 1950, and they had dropped to very low levels even before the recession. Half of Americans now pay no income taxes.”
Instead, the report that invites Americans to retain Bush Tax cuts is broadcast farther and wider than the more informed elucidations. Contrary to the tax cutters claims that President Obama plans to punish the Middle Class, Bloomberg reports, “Obama and congressional Democrats want to extend (the tax cuts) for households earning up to $250,000 and let them end for wealthier taxpayers.” Fareed Zakaria and perchance more surprisingly, in another forum, David Stockman, wish this were true.
Truthfulness is often tweaked when expert and powerful prose point to a vapid veracity, one that is less desirable to the self-defined blissful spenders who were featured in the ubiquitous Cable News Network account.
The no tax and spend only on self throng condemn the acumen Mister Zakaria avows; “We have to be willing to pay for the government we want, which by the way is among the smallest in the industrialized world or we have to dramatically cut the government, which means cutting popular middle- class programs, since that’s where the money is.”
No, the pious people proclaim loudly, we will not pay taxes, then assert, we want no government in our lives. Tax cuts advocates forget the foundation that our forefathers fashioned. Essayist, Pamphleteer, Philosopher Paine espoused as Fareed Zakaria did today. The two understood and addressed the necessary apprehension for Administrative rule while each concedes the commonweal must care to invest in the greater good. Were we to forget that no man is an island, we will forsake the future as we have in recent decades. Rarely remembered or recited is the founder’s resolve to embrace an elected Legislative and Executive Branch. Perchance today, Fareed Zakaria spoke to the practical reality.
In order to gain a clear and just idea of the design and end of government, let us suppose a small number of persons settled in some sequestered part of the earth, unconnected with the rest, they will then represent the first peopling of any country, or of the world. In this state of natural liberty, society will be their first thought.
A thousand motives will excite them thereto, the strength of one man is so unequal to his wants, and his mind so unfitted for perpetual solitude, that he is soon obliged to seek assistance and relief of another, who in his turn requires the same. Four or five united would be able to raise a tolerable dwelling in the midst of a wilderness, but one man might labor out the common period of life without accomplishing any thing. This necessity . . . will point out the necessity, of establishing some form of government to supply the defect of moral virtue.
Instead of Paine’s and Zakaria’s profundity, the language Americans long for is the sentiment expressed by profiteers highlighted in the Chernoff commentary. Scott Hodge, President of Tax Foundation, an institute that Nobel Prize recipient Paul Krugman acknowledged as an unreliable source, reinforced the accepted alarm. Mister Hodge affirmed, “If Congress does nothing, it could lead to one of the largest tax increases in American history.” Robert Traphagen, a partner with Traphagen Financial, and a man who makes money when affluent clients invest in purely personal wealth, affirmed, “If new tax legislation is not implemented, it would be a dramatic effect to the middle class.” Indeed, it would.
Were we to adopt as Fareed Zakaria, Doctor Greenspan, and David Stockman think wise, Americans would have more money for schools, streets, services. The middle class would thrive. Media moguls would have less money to survive. Hence, the mantra, the message, If Bush tax cuts expire this will hurt America
References for varied realities . . .
- Meet the Press transcript for August 1, 2001. MSNBC. August 1, 2010
- Fareed Zakaria GPS Transcript Cable News Network. August 1, 2010
- What if Bush Tax Cuts Expire? By Allan Chernoff. Cable News Network. August 2, 2010
- Campaign Finance. The New York Times. July 28, 2010
- Affluent brace for Obama’s tax hikes, Bloomberg., April 5, 2010
- Affluent Say Tax Protection Is Greater Concern Than Accumulating More Wealth; Use of Trusts to Protect Wealth Increasing Nationally.. Business Wire. 2010
- Big Paydays for Chiefs in the Media, By Joseph Plambeck. The New York Times. May 2, 2010
- Tax bills in 2009 at lowest level since 1950. By Dennis Cauchon. USA Today. May 12, 2010
- Pity the poor corporations, By Paul Krugman. The New York Times. August 18, 2008
- The Budget and Economic Outlook” Fiscal Years 2008 to 2018. Congressional Budget Office. January 2008
- Washington Post Misleads Readers to Push for Lower Corporate Tax Rates, By Dean Baker. The American Prospect. August 17, 2008
- Study says most corporations pay no U.S. income taxes Reuters. August 12, 2008
- Many Firms Didn’t Pay Taxes. Most Corporations Skipped Payments From ’98 to ’05, GAO Says. By David Cho. Washington Post. August 12, 2008
- ExxonMobil paid no federal income tax in 2009. (Updated). ThinkProgress. April 6, 2010
- What The Top U.S. Companies Pay In Taxes, By Christopher Helma. Forbes. April 1, 2010
- About Mister Zakaria.
- What He Believed and When He Believed It, By Peter T. Kilborn. The New York Times. May 18, 1986
- Stockman, David Alan. Biographical Directory of the United States Congress.
- Four Deformations of the Apocalypse, By David Stockman. The New York Times. July 31, 2010
- Puff-Piece. Wikipedia..
- Greenspan: End Bush tax cuts, By David Edwards and Daniel Tencer. The Raw Story. August 1, 2010
- Will letting Bush tax cuts expire help or hurt America? By Allan Chernoff. Cable News Network. King Broadcasting Company. July 31, 2010
- Greenspan: Let Tax cuts Expire. Cable News Network. July 16, 2010
- Bush-Era Tax Cuts for Wealthy Should Stay, House’s Pence Says, By Laura Litvan. Bloomberg. Business Week. August 3, 2010
- The Tax Foundation is not a reliable source, By Paul Krugman. The New York Times. August 24, 2008
- The Greek Menace, The New York Times. August 18, 2008
- Our Fees. Traphagen Financial Group.
- Valued Clientele. Traphagen Financial Group.
- Common Sense. By Thomas Paine. Printed By W. and T. Bradford. Philadelphia. 1791