News Americas, NEW YORK, NY, Fri. May 13, 2016: This is a first! After 275 previous episodes, I am going to DEDICATE this episode to someone other than my Publisher. All the episodes are dedicated to her of course but this episode is formally dedicated to …
New York Times reporter GRETCHEN MORGENSON who provided me the inspiring material in her recent article that convinced me, unbeknownst to her or others, that she had uncovered one of President Obama’s “greatest” CONS of his Presidency that exemplifies his entire Presidency.
And for this Gretchen ended with her damning judgment wrote “too bad.” My ability to properly interpret what Gretchen wrote is why this episode is dedicated to her.
When are Democrats ever going to learn the game Obama played on them? Must I say it yet again, ESPECIALLY to African-Americans?
NEVER – if they don’t read Obama’s America week after week.
President Obama’s ability to play the Con is awesome and Dear Readers that is what got him elected President – not once but twice. And this week, I will note we have a particularly “good” example about how insidious he has been. I have chosen the idiom: “pulling the wool over someone’s eye.” In this case, all of us, to illustrate Obama’s sins this week.
Meaning to deceive someone by telling untruths!
First, let me offer you a timely history lesson. That phrase originated right here in America …”And we ask one question that they dare not firmly answer, whether they are not now making a tolerable attempt to pull the wool over the eyes of the people.”
This the earliest example of its use in print is from the Milwaukee Daily Sentinel And Gazette, October 1839 and it refers to politicians!
Anyway, back to President Obama.
This week’s episode had its origin with an “innocent” article in last Sunday’s New York Times, Page 1 of the Business Section. Absolutely, it was not intended to be read the way I did. The Times expected typical shallower readers – not me – to dig in for the real Truth.
This intrigue will also lead to Hillary Clinton’s doorstep and the “conspiracy” between her and Barack to insure her election and his payoff. Bernie Sanders even comes in the picture – exposing how he can get lost in his own rhetorical BS and “fear” of Obama and undermine himself.
This sounds juicy doesn’t it? Let’s dig in and enjoy ourselves.
So here is The Times article which is the genesis of this episode #276. It’s all about the single worst ABUSE in the entire U.S. Tax Code …
A SCAM named “carried interest” that ONLY has meaning for the Super Rich – the 1% and higher to make them even RICHER. Of course President Obama is against “carried interest,” he tells Americans all the time, going all the way BACK to his 2008 Presidential campaign. But 8 years later, the Super Rich are still reaping BILLIONS from this tax scam
KEEP THAT DATE IN MIND – it is very, very important. Read on!
Sorry about the article – let me get to it right now by one of NYT’s top gun reporters Gretchen Morgenson. (BTW: she called me Arthur when I emailed her the article titled “Ending Tax Break for Ultrawealthy May Not Take Act of Congress.)” Yes The tax break for the ULTRA Wealthy. Not you; Not me.
SURPRISE! Why does President Obama keep telling us it does take an act of Congress? Because President Obama should title his memoirs: “The Art of The Con.” Move over Donald Trump.
To the NYT article ….
“Mr. Obama expressed frustration that many middle-class Americans feel they’ve been left behind during his time in office. The wealthiest Americans, meanwhile, have become richer during the Obama years.”
WOW! How about that ENCORE … “The wealthiest Americans, meanwhile, have become richer during the Obama years.”
OK, buckle up Dear Readers. Are you ready for this from this article …
“There is a lot about this problem of income inequality —about the economy over all — that Mr. Obama cannot control. Still, there is something he could do right now to help narrow the widening gulf between rich and poor.”
WHAT? Correction! He could have done EIGHT years ago too!
“In one deft move, Mr. Obama could instruct officials at his Treasury Department to close the so-called carried interest tax loophole that allows managers of private equity and hedge funds to pay a substantially lower federal tax rate on much of their income.”
Yes, let me repeat that for you and EVERY American …
“In one deft move, Mr. Obama could instruct officials at his Treasury Department to close the so-called carried interest tax loophole that allows managers of private equity and hedge funds to pay a substantially lower federal tax rate on much of their income.”
Do you understand why this episode is titled OBAMA’S TAX SCAM?
Gretchen Morgenson of the Times has more to tell all of us…
“Forcing these managers to pay ordinary income taxes on the gains they reap in their funds would accomplish two things. It would take away an enormous benefit enjoyed almost exclusively by the country’s wealthiest people. And, tax experts say, it would generate billions in revenue to the government each year, though there are wide differences over exactly how much.”
WOW! All that good could so easily be accomplished if President Obama would …
Keep going Gretchen, give us more …
“But doesn’t changing the carried interest loophole require an act of Congress? Not according to an array of tax experts. Just as Mr. Obama’s Treasury Department recently changed the rules to curb corporate inversions, in which companies shift their official headquarters to another country to lower their tax bills, the Treasury secretary, Jacob J. Lew, and his colleagues could jettison the carried interest loophole.”
Keep going Gretchen ….
“Alan J. Wilesky is among those urging such a change. He was a deputy assistant Treasury secretary in charge of tax policy in the early 1990s when the carried interest loophole came about.”
“This is something President Obama can do and should do,” Mr. Wilesky said in an interview. “This is not an impossible thing to get done.”
What does the Treasury Dept. tell Gretchen and the Times?
Rachel McCleery, a Treasury spokeswoman, said that closing the carried interest loophole has been a priority for the Obama administration from the outset and that the department is continuing to explore its existing authority for ways to address the loophole. But the department cannot eliminate the carried interest tax benefit by itself, she contended.
Again … “But the department cannot eliminate the carried interest tax benefit by itself, she contended.”
REALLY?????
So this is the same President Obama as Gretchen points out who has issued lots of other executive orders that political opponents have criticized him for, and that is Obama’s response HE DOES NOT CARE if they do.
So what is the problem here President Obama?
“Hedge fund and private equity managers are really the one-tenth of the 1 percent, and the carried interest rule hits their pocketbooks directly,” Mr. Wilesky said. “It’s much easier to implement regulations that have an adverse effect on anonymous shareholders and institutions.”
I will explain what that REALLY means in a moment.
First if any of my readers do not know what “carried interest” is …
Gretchen offers “Carried Interest for Dummies” to Times readers …
“Managers of hedge funds and private equity funds receive two types of payments. One, paid annually, represents a percentage of assets under management, usually around 2 percent. Those earnings are taxed as ordinary income.”
“But these managers also receive 20 percent of gains that their funds generate over time, known as carried interest. These profits are taxed at the lower capital gains rate, thanks to a 1993 ruling by the Treasury and the Internal Revenue Service.”
“Closing the loophole, tax experts say, would involve characterizing both the 20 percent and the 2 percent as income from services rendered.”
In other words these guys are saving BILLIONS with this tax scam.
The article then goes on to give lots of evidence and studies that substantiate that Obama can do this, and much more, more convincing evidence for this than for the validity of some of his other Executive Orders.
But carefully read the close to Gretchen’s article very, very important …
“If these experts are right, Mr. Obama can direct the Treasury to end what is an enormous subsidy for the wealthiest Americans. The Treasury disagrees. But punting this task to Congress means nothing is likely to be done. And that’s too bad.”
AGAIN … “But punting this task to Congress means nothing is likely to be done. And that’s too bad.”
In a perfect world this might even be an impeachable offense on Obama’s part REFUSING to eliminate an “unconstitutional” provision of US. Tax code that contradicts the meaning of the tax code to provide a small elite group to collect BILLIONS $$ each year they are not entitled to receive.
So with that said, let me explain what is REALLY going on…
President Obama is specifically and knowingly hiding behind a self-serving “decision” (sic) by the Treasury Dept that has “concluded” (sic) that as much as President Obama wants to eliminate “carried interest “ he can’t.
By any realistic standard President Obama is playing a Con Game here and getting away with it. What is the value to him? PLENTY!
First and foremost he may tinker on the edges yes do some good things and use his rhetorical skills to give lofty speeches but his position on “carried income” is a strong message to the Ruling Class where his loyalty rests.
Obama does NOT have to actively assist them they don’t need that they just need him to maintain the Status Quo for them. What his position on “carried interest” is to rest of us is a MORTAL SIN of OMISSION by Obama.
But it gets even better for Obama in a very practical way.
President Obama and his Dear Wife have boldly and publicly proclaimed they intend to raise more than a BILLION $$$ for their “foundations” after they leave The White House. Even the Clintons were never than blatant.
So where are the Obamas’ going to get more than ONE BILLION $$$??? Not from me NOT from you. But you know who. SEE ABOVE.
Rather than wasting time going into more than obvious detail let me turn to the “conspiracy” between Barack and Hilary I alluded to at start of this episode. It is beyond dispute Barack wants Hillary to be the next President. Not even worth discussing that it is a fact.
So how does “carried interest” factor in? BECAUSE Hillary has proclaimed she needs to raise up to a BILLION $$ or more for this election campaign especially for the general election. Where is Hillary getting all that money? Not from me. Not from you. SEE ABOVE.
So not only would President Obama piss off the Ruling Class and damage his standing with the Ruling Class eliminating “carried interest” but Hillary would be collateral damage since the Ruling Class would likewise be pissed off at her because of her #1 Buddy. That raises more problems for Obama and his so called Legacy if his CLONE Hillary Clinton is not elected.
So where does Bernie Sanders fit into this????
It exposes him as a FLAWED candidate and why Clinton is beating him. He is the wrong messenger at the right place with a WEAK campaign organization. Rather than giving his signature rambling speeches over and over about what is wrong in America an even though African Americans are in love with the Clintons for no good reason Bernie is AFRAID to criticize Obama for anything even though Sanders is the last person Barack Obama wants to see become President of the United States. More in future episodes.
As to “carried interest” and The Times article if Sanders was the candidate we need, he could have and would have held up that Times article and FORCED Obama to issue an executive order eliminating “carried interest.”
But Little Bernie is AFRAID to attack Obama for this or lots more because he is also running a lousy typical campaign and all the money he is raising and all the states he has won are not because of the quality of his campaign it is because so many Democrat are desperate for an alternative. With a better candidate and a better campaign Hillary loses the nomination.
On disclaimer it is not impossible Obama “might” still eliminate “carried interest” by executive order because not doing so is so obviously a scam. That will haunt his so called Legacy. That conceivably might do it?
Let me end by thanking Gretchen Morgenson one more time for this episode. And Gretchen, there is so much better material to explore; too bad The Times is backing Hillary. That limits where you can go and how deep.
