Bailout Anger Explodes - Time for a Millionaire Surtax

This weekend we finally pried loose some secrets from AIG, the insurance giant that has cost U.S. taxpayers more in bailouts than any other financial institution.

First we learned 2/3 of our $160 billion went to foreign banks. Then we learned the  criminals in AIG's Financial Products Division - who did more to create the meltdown than anyone else in the world - are extorting enormous bonuses from the Treasury Secretary, under threat of blowing up the world financial system.

For the next few days, Washington and Wall Street will debate AIG bonuses. It's a powerful issue, but it really is a distraction because the total cost of the bailout is not $1 billion, it's in the trillions. And the key question is: who is going to pay these trillions - America's struggling middle class or the rich?

Obviously the rich should pay. First, they are the only Americans who can afford it. Second, they are the ones who are benefiting most from the trillions in bailouts, whether they are investment bankers guzzling $750 champagne or their investor clients.

So we need to tax the rich. But how? I propose a temporary surtax for millionaires. It would start immediately and end when all of the trillions in bailout funds are repaid in full.

Right now, millionaires pay only 35% on income above $357,700. Historically, the average top marginal rate was 60%. Under Republican Ronald Reagan, it was 50%. Under Republican Dwight Eisenhower, it was 91%.

A few weeks ago, CNBC's Rick Santelli famously proposed an Internet vote on whether taxpayers should spend $75 billion to help homeowners avoid foreclosure to keep everyone's home prices from collapsing. I propose an Internet vote on whether America's struggling middle class or the rich should pay for the trillions for the financial bailouts, and which rate should be used for the Millionaire Surtax: Reagan's 50%, the average 60%, or the Eisenhower 91%.

Update 1: Howie Klein gives us the lowdown on AIG CEO Edward Liddy:

I can't understand why a big Republican donor-- obviously a crook-- like Liddy was put in charge of a company the government basically owns. And it isn't just because he was a maxed-out McCain donor, as well as a contributor to the RNC, that should disqualify him from employment. He was the chairman of Allstate when they were cheating Hurricane Katrina victims out of their insurance coverage. Before that Liddy was the CFO at a pharmaceutical company where Don Rumsfeld was the CEO. Together they axed most of the employees in order to make it an attractive property for Monsanto, which bought it in 1985 making Rumsfeld and Liddy immensely wealthy (although neither had contributed anything to the value of the company aside from firing 60% of the employees who had built it up.) See Liddy's swell digs on the right. I wonder who vetted Liddy for Bush when he wound up-- including himself, no doubt, among the losers he terms "the best and the brightest"-- as head of AIG in June, 2008.

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Bob

when we start calling bailouts what it really is, "high class swindling" and what has got people burnt up about all this corruption is the Taxpayers will take the beating for all these swindles. As we have seen Wall Street and our so-called "representatives" have inspired to swindle Americans out of our Tax Dollars. Obama is telling us its to big to stop, a question here is; what happen to our “Justice Department”, has it when south of the border and hasn’t return yet!

We know that the Government is very free in giving “our” money to their “pet projects”, but when it comes to Justice for Political conies they are slower then a snail or do the “Nancy table trick” either way the wheels of Justice has stop turning in Washington.

It will be interesting to see how Obama will cover up this swindle of the American Taxpayers or will he just try to change the conversation to something else. The people are mad as hell at how the Government missed managed our Tax Dollars and we demand an answer to this blunder!

How's this for a "cover

I have a question.

You brought up the word "swindling".

Who has the money then?

(Not the bailout money, the money that is "lost". Where is that money?)

Thanks,

Jim

In the Bushites Swiss Bank Accounts

It's time to make the tuxedoed Penguins of Wall Street and the 24 hour greedy Coke heads that ran those risks up to do the Perp walk.

Justice and the American WAY For All Even the Rich elites that cooked this up.

Lock them all up, they will forfeit the bonuses either way through court expenses of trying to prove they didn't set the shareholders money up in too risky a deal on the morgages, for short term profits on long term stocks, which is, or was against the Trust Laws!

Right?

mommapanther

O.G. the bailout isn't the

O.G. the bailout isn't the swindle, the swindle took place under Bush with his hands off big business and minimal regulations on banks and financials. Obama is doing his best to pull us out of the ditch that Bush/Cheney drove the country into. If the "bailout" works we will get our country back in the black. Had he done nothing the ditch would have been the Grand Canyon before it was over. Maybe it won't work, but it is the best chance we have and so far the market is moving up and the retail profits were up 1.8% in Feb.

"Each progressive spirit is opposed by a thousand mediocre minds appointed to guard the past.”-M. Maeterlinck

"He who controls the present,controls the past. He who controls the past,controls the future."~Orwell

You are right

that it the swindle started with Bush, Obama inherited his blunders. What burns me is nothing has change, bailouts seems to be the same, over spending is the same. If I'm on a bus and I don't like the ride, I have enough sense to get off, but I'm not seeing this with the Obama's administration. I’m a Democrat and party royalty does not blind me corruption or in this case high-class swindle of taxpayers Dollars. Without rules and regulations to control these swindles we will be in a never-ending crisis! The wheels of Justice will have to start turning. I would like to see this bailout money put were it will be beneficial to all the people instead of just the wealthiest people, wake-up Democrats this not a Democracy!

whitehouse.gov

Go viral: "Anyone caught in this morgage and insurance merging of swaps, have to decrease the bonuses they claim they earned, to the same amount of loss as the markets they crashed"

AMERICA HAS SPOKEN AND IT WILL GET PISSED OFF REPUBLICANS THAT DIDN'T VOTE FOR THIS MESS ON BOARD!

THEY HAVE A CLAUSE AT AIG, INSTALL ONE FOR AMERICANS THAT DON'T TRUST THEIR GREED IN THE FUTURE OF 401K'S THEN FIRE THE CROOKS WITH PINK SLIPS.

If eveyone one else that did a good job, can get "pink slips" surely, the fools that perpetrated this "FRAUD IN THE MORGAGE AND REALTY INVESTMENT" ON THE PEOPLE, CAN GET THEM TOO!!!

YOUR FIRED!!!!!!!!!

mommapanther

NY Attorney General Issuing Subpoenas To AIG Over Bonuses

It looks as if some democrats are getting their fight back, but it is going to take a lot more to straighten the Bush economic mess out. Even some republicans are starting to laugh at Dick Cheney and his ridiculous remarks this past Sunday.

New York Attorney General Andrew Cuomo said on Monday that his office is issuing subpoenas against AIG to obtain the list of the recipients of bonuses revealed over the weekend, along with copies of their employment contracts. Over the weekend, AIG, which has received about $170 billion in government guarantees, said it will soon pay about $165 million in employee bonuses, because of contractual obligations. "I want the contracts, I want the names, I want the amounts, I want the circumstance," said Cuomo, speaking to CNBC. "This is taxpayer money and taxpayers are entitled to accountability, transparency and disclosure." In addition to being required to pay the bonuses because of past employment contracts, AIG CEO Edward Liddy said the company cannot attract and retain strong employees if they believe the federal government will decide their salaries. On Monday morning, Cuomo sent a letter to AIG (see below) asking for information on the bonuses by the close of the markets. At 4:00 pm, Cuomo said no information had been provided, so his office was moving forward with subpoenas. read the letter here

"Each progressive spirit is opposed by a thousand mediocre minds appointed to guard the past.” - Maurice Maeterlinck

"He who controls the present, controls the past. He who controls the past, controls the future." ~Orwell

"Unemployment, Health Care Spending Affect Mortality"

We need to pull together folks.

Can we all help our President even though we vehemently disagree on the particulars? At least for a time???

I found the article below extremely telling:

Unemployment, Health Care Spending Affect Mortality

PR Newswire

03-16-09

FORT WORTH, Texas, March 13, 2009 /PRNewswire-USNewswire via COMTEX/ -- At the Health Industries Council meeting on March 11, in Irving, Harvey Brenner, Ph.D. and professor of public health and behavioral sciences at the University of North Texas Health Science Center's School of Public Health, announced new findings that indicate that mortality is directly related to the economy. Specifically, unemployment and reduced spending on health care have a direct effect on the country's mortality rate.

"We have seen this correlation in cardiovascular disease," Brenner related. "But these are the first findings that show a direct correlation between reduced health care expenditures and reduced labor force participation on increases in mortality."

Since World War II, research literature has shown that economic development is good for health in developing countries. However, it isn't clear if this same economic development in already developed countries has the same benefits. In fact, Brenner's research shows that unemployment is a much more important factor in health and well-being than economic development.

"Interestingly, this economic downturn is showing how quickly the effects of unemployment and, thus, reduction of health care expenditures is resulting in mortality," Brenner said. "In the past, we saw people die within 10 years after their job loss. Now, we are seeing them die as early as the same year." (My emphasis)

When a worker becomes unemployed, he or she often loses health insurance, suffers stress and adopts unhealthy behavior as a result. They may delay preventive health care because of the cost or loss of health insurance coverage. The stress of being unemployed causes both physical and psychological issues that may eventually erupt into major medical conditions that easily could have been treated earlier.

The bottom line is, preventing and controlling health issues is more important in a down economy as more and more people struggle to balance the need for food, shelter and health care.

University of North Texas Health Science Center

http://www.lef.org/news/LefDailyNews.htm?NewsID=8017&Section=Aging

Nice find Jim, and thanks

Nice find Jim, and thanks for sharing.

I can't help but think, however, that the right-wing neoconservative Republican "Dittoheads" will not see this as a valid argument to support President Obama's Stimulus Plan, or "socialistic" universal healthcare.

You see, the unemployed are already living (their right to life ended the day they were born), were most likely fired for good reason (they only have themselves to blame), and will probably vote Democratic anyway, so screw 'em.

On the other hand, unemployed Republicans can blame President Obama for ruining the economy in just two short months. Oh, the shame of it all...

Obama...

...can find compromise with 60% of Americans, and improve the lives of better than 95% of Americans.

I hope he'll focus his efforts there, and ignore those that can not be reasoned with.

Either that, or the unemployed can help by wearing a sign:

FORMER ZYGOTE / CANNON FODDER requesting GOP consideration.

We the People decide this 80% new management and firings!

All we have to do is flood the whitehouse.gov site with this solution and it WILL help the President to stop future robberies.

Install a Bonus decrease law or clause in the bailout that will decrease anyone's bonus, if found to have contributed to the market recession since 2006.

I really believe they were all in full throttle at that time, and therefore is a paper trail of sales and purchasing. The rumor of subprimes was around for four years or more. The "Cramers" of Wall street must be punished and so must the CEO's that lead people into the morgages that are flatulent purchases or swaps.

mommapanther

It's a plot to flood the system with large government spending

spending on entitlements, so the Repukes can say: "See there is too much government entitlement to the people who don't pay income taxes. They force families to sign for help and then twist the problem to fit their selfishness to the poor, after cutting the programs drasticly over the last 8 years.

Don't let it happen. They sold our jobs overseas, creating increases in the poor, and now sinking the final nail, in this twisted thinking. Where's the "Christianity of that?

jThe jobs will create more tax payers to cover the baby boomers and the raise in family incomes through good paying blue/green jobs, will move the markets and pay for healthcare, because the people's skills will pay for the wages through the tax system as long as they work. The incentive is to keep the jobs flowing, until the markets and economy balances out, to build with even more ingenuitive ideas and products of the green jobs. We are moving forward.

If you want to go in "Reverse" Go for the R
If you want to move forward to the future, Go for the D and drive this economy as never before with jobs and progress. These glass solar panel jobs need massiove manufacturing expansion grants or tax cuts to do what they have been dreaming of since the 1970's.

Goooooooooooo American Blue/Green Tsunami of Change We the People Believe In!!!!!!!!!!

mommapanther

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