Confessions of a GOP Operative Who Left "the Cult": 3 Things Everyone Must Know About the Lunatic-Filled Republican Party
Continued from previous page
Republicans have attempted to camouflage their amorous solicitude for billionaires with a fog of misleading rhetoric. John Boehner is fond of saying, "we won't raise anyone's taxes," as if the take-home pay of an Olive Garden waitress were inextricably bound up with whether Warren Buffett pays his capital gains as ordinary income or at a lower rate. Another chestnut is that millionaires and billionaires are "job creators." US corporations have just had their most profitable quarters in history; Apple, for one, is sitting on $76 billion in cash, more than the GDP of most countries. So, where are the jobs?
Another smokescreen is the "small business" meme, since standing up for Mom's and Pop's corner store is politically more attractive than to be seen shilling for a megacorporation. Raising taxes on the wealthy will kill small business' ability to hire; that is the GOP dirge every time Bernie Sanders or some Democrat offers an amendment to increase taxes on incomes above $1 million. But the number of small businesses that have a net annual income over a million dollars is de minimis, if not by definition impossible (as they would no longer be small businesses). And as data from the Center for Economic and Policy Research have shown, small businesses account for only 7.2 percent of total US employment, a significantly smaller share of total employment than in most Organisation for Economic Co-operation and Development (OECD) countries.
Likewise, Republicans have assiduously spread the myth that Americans are conspicuously overtaxed. But compared to other OECD countries, the effective rates of US taxation are among the lowest. In particular, they point to the top corporate income rate of 35 percent as being confiscatory Bolshevism. But again, the effective rate is much lower. Did GE pay 35 percent on 2010 profits of $14 billion? No, it paid zero.
When pressed, Republicans make up misleading statistics to "prove" that the America's fiscal burden is being borne by the rich and the rest of us are just freeloaders who don't appreciate that fact. "Half of Americans don't pay taxes" is a perennial meme. But what they leave out is that that statement refers to federal income taxes. There are millions of people who don't pay income taxes, but do contribute payroll taxes - among the most regressive forms of taxation. But according to GOP fiscal theology, payroll taxes don't count. Somehow, they have convinced themselves that since payroll taxes go into trust funds, they're not real taxes. Likewise, state and local sales taxes apparently don't count, although their effect on a poor person buying necessities like foodstuffs is far more regressive than on a millionaire.
All of these half truths and outright lies have seeped into popular culture via the corporate-owned business press. Just listen to CNBC for a few hours and you will hear most of them in one form or another. More important politically, Republicans' myths about taxation have been internalized by millions of economically downscale "values voters," who may have been attracted to the GOP for other reasons (which I will explain later), but who now accept this misinformation as dogma.
And when misinformation isn't enough to sustain popular support for the GOP's agenda, concealment is needed. One fairly innocuous provision in the Dodd-Frank financial reform bill requires public companies to make a more transparent disclosure of CEO compensation, including bonuses. Note that it would not limit the compensation, only require full disclosure. Republicans are hell-bent on repealing this provision. Of course; it would not serve Wall Street interests if the public took an unhealthy interest in the disparity of their own incomes as against that of a bank CEO. As Spencer Bachus, the Republican chairman of the House Financial Services Committee, says, "In Washington, the view is that the banks are to be regulated and my view is that Washington and the regulators are there to serve the banks."