Obama's Sellout on Taxes

[Jefferson23]

Michael Hudson is a former Wall Street economist. A Distinguished Research Professor at University of Missouri, Kansas City (UMKC), he is the author of many books, including Super Imperialism: The Economic Strategy of American Empire (new ed., Pluto Press, 2002) and Trade, Development and Foreign Debt: A History of Theories of Polarization v. Convergence in the World Economy. He can be reached via his website, [e-mail]

Game Plan for a Flat Tax, Social Security Cutbacks and Austerity


I almost feel naïve for being so angry at President Obama’s betrayal of his campaign promises regarding taxes. I had never harbored much hope that he actually intended to enact the reforms that his supporters expected – not after he appointed the most right-wing of the Clintonomics gang, Larry Summers, then Tim Geithner, Ben Bernanke and other Bush neoliberals.

But there is something so unfair and wrong that I could not prevent myself from waking up early Tuesday morning to think through the consequences of President Obama’s sellout in the years to come. Contrary to his pretense of saving the economy, his action will intensify debt deflation and financial depression, paving the way for a long-term tax shift off wealth onto labor.

In achieving a giveaway that Democrats never would have let George Bush or other Republicans enact, Obama has laid himself open to the campaign slogan that brought down British Prime Minister Tony Blair: “You can’t believe a word he says.” He has lost support not only personally, but also – as the Republicans anticipate – for much of his party in 2012.

in full: http://www.counterpunch.org/

[Jackpine Radical]

1. The reason you're not getting many comments

is that this piece doesn't leave much to say.

[Jefferson23]

5. Sad but true. n/t

[Catherina]

2. Rec'd.

"had never harbored much hope that he actually intended to enact the reforms that his supporters expected – not after he appointed the most right-wing of the Clintonomics gang, Larry Summers, then Tim Geithner, Ben Bernanke and other Bush neoliberals.

But there is something so unfair and wrong that I could not prevent myself from waking up early Tuesday morning to think through the consequences of President Obama’s sellout in the years to come."

[Poboy]

3. recommend. You cannot believe a word Obama says.

[fasttense]

4. The Social Security payroll tax cut is Obama's 1st baby step toward

the destruction of Social Security. So he's selling out a whole new group of people. You can take those baby steps toward destroying something as well as creating an incomprehensible health care bill.

Obama's Cat Food Commission didn't pan out so now he's pushing it through this fake compromise.

[Jackpine Radical]

6. The Catfood report is not yet in its grave.

Expect it to be resurrected when they argue the debt ceiling.

[Laelth]

7. k&r for the sad truth. n/t

-Laelth

[soryang]

8. Hudson can't get on mainstream media because...

...he knows what he is talking about. Most people don't even know what capitalism is; he does. Wall Street thinks collecting rents, interest, and dividends without paying taxes is "free market capitalism." The Wall Street aristocrats won't tolerate anyone contradicting their bullshit captured government neo-feudalist ideology. The financial, insurance and real estate sector have wiped out manufacturing in this country.

[Jefferson23]

9. I believe that to be true as well..Hudson will not be a guest anywhere on the MSM TV landscape. n/t

[soryang]

10. I was moved to write this after I read his prior article:

I posted it last night on another thread.

The permanent alienation of wealth from commerce,..
Edited on Wed Dec-08-10 02:17 AM by soryang
is what the inheritance tax is meant to prevent. The permanent alienation of wealth from commerce is what characterized feudalism. Dumping that system is what the French and American revolutions were all about. An aristocratic title is not just a label, it is a propertied estate that supports a dynasty of heirs forever, with unearned income. Such was rejected by the founding fathers.

The desire of the current privileged class of wealth to have their heirs permanently avoid the inheritance tax is nothing less than the rejection of the concept of bourgeois democracy and the reinstatement of a fee or toll based society, where the wealthy live off unearned fees, or fiefdoms forever. It is particularly telling that they wish to do so without the obligation of a fair reciprocal obligation to pay taxes to the sovereign while they are alive. In other words, as in the ancien regime, they are completely corrupt.

The notion of dispensing with enterprise and living as feudal lords generation after generation,"and to their heirs forever," is antithetical to a free people. For serfs and slaves and their masters, a society based upon status of birth is okay.

Michael Hudson has a great essay on counterpunch discussing the true nature of Adam Smith's free economy and the pernicious nature of the "rentier" society of unearned inherited income now returning from the dark ages in the US to the detriment of a truly capitalist society. http://www.counterpunch.org/hudson12062010.html

[Jefferson23]

11. Thank you for posting that, excellent. I was listening earlier this evening

to an interview on NPR with Simon Johnson and a former economic adviser to Bush.

Johnson is another voice I have not ever heard within the MSM Tv-land news cycle..which is a shame.
He and Hudson could make the case so well for the dangerous irresponsible policies we see remaining
in effect if only given the opportunity. Not that the majority of Americans don't already realize how
bad this is for the country; I think if they heard it articulated as succinctly as these gentleman do
we might see Americans voicing more demands on Obama.

[soryang]

12. Agreed, I will be on the lookout for Simon Johnson

I'd very much like to hear what he has to say.

The structural problems in our economy are not being addressed whatsoever because the financial establishment refuses to allow it. Kevin Phillips has documented in a few books that Spain, Holland and Britain all went this downward route and their ruling elites proved completely unable to reform themselves. It can be avoided but the time is becoming late.