More stories

  • in

    New York attorney general alleges Trump firm misled banks and tax officials

    New York attorney general alleges Trump firm misled banks and tax officialsCourt filing says investigators are seeking to question Donald Trump and his two eldest children The New York attorney general’s office has told a court that its investigators have uncovered evidence that Donald Trump’s company used “fraudulent or misleading” asset valuations to get loans and tax benefits.The court filing late on Tuesday said state authorities had not yet decided whether to bring a civil lawsuit in connection with the allegations, but that investigators needed to question Trump and his two eldest children as part of their inquiries.The former US president and his lawyers say the investigation is politically motivated.In the court documents, the office of the attorney general, Letitia James, gave its most detailed accounting yet of its investigation into allegations that Trump’s company repeatedly misstated the value of assets to get favourable loan terms or reduce its tax burden.Using personal financial statements from 2004 to 2020 that were filed by Trump’s accounting firm, Mazars, the attorney general’s office said the Trump Organization overstated the value of land donations made in New York and California on paperwork submitted to the IRS to justify several million dollars in tax deductions.New York attorney general subpoenas Donald Trump Jr and Ivanka Trump – reportRead moreThe company misreported the size of Trump’s Manhattan penthouse, saying it was nearly three times its actual size – a difference in value of about $200m (£147m), James’s office alleged, citing deposition testimony from Trump’s longtime financial chief Allen Weisselberg, who was charged last year with tax fraud in a parallel criminal investigation.Valuations of Trump golf clubs in Westchester county, New York and Scotland were inflated, the attorney general’s office says, with the Trump Organization claiming that multiple, ultimately nonexistent mansions worth millions of dollars had been built on the family’s family estate. The company also claimed that there were $150,000 initiation fees into Trump’s Westchester golf course that were never collected.Citing this new additional evidence that Trump and the Trump Organization made fraudulent and misleading asset valuations to boost their appearance to potential lenders and investors, James’ office detailed its findings in a court motion seeking to force Trump, his daughter Ivanka Trump and his son Donald Trump Jr to comply with subpoenas seeking their testimony.Messages seeking comment were left with lawyers for the Trumps.Trump’s legal team has sought to block the subpoenas, calling them “an unprecedented and unconstitutional manoeuvre”. They say James is improperly attempting to obtain testimony that could then be used in the parallel criminal investigation, being overseen by the Manhattan district attorney, Alvin Bragg.Trump sued James in federal court last month, seeking to put an end to her investigation. In the suit, his lawyers claimed the attorney general, a Democrat, had violated the Republican’s constitutional rights in a “thinly veiled effort to publicly malign Trump and his associates”.In the past, the Republican ex-president has decried James’s and Bragg’s investigations as part of a “witch-hunt”.In a statement late on Tuesday, James’s office said it had not decided whether the evidence outlined in the court papers merited legal action, but the investigation should proceed unimpeded.How Trump’s $50m golf club became $1.4m when it came time to pay taxRead more“For more than two years, the Trump Organization has used delay tactics and litigation in an attempt to thwart a legitimate investigation into its financial dealings,” James said.“No one in this country can pick and choose if and how the law applies to them. We will not be deterred in our efforts to continue this investigation and ensure that no one is above the law.”Although James’s civil investigation is separate from the criminal investigation, her office has been involved in both, sending several lawyers to work side by side with prosecutors from the Manhattan DA’s office.One judge has previously sided with James on other matters relating to the investigation, including making another Trump son, the Trump Organization executive Eric Trump, testify after his lawyers abruptly cancelled a scheduled deposition.Last year, the Manhattan district attorney brought tax fraud charges against the Trump Organization and Weisselberg. Weisselberg pleaded not guilty to charges alleging he and the company evaded taxes on lucrative fringe benefits paid to executives.Both investigations are at least partly related to allegations made in news reports and by Trump’s former personal lawyer Michael Cohen that Trump had a history of misrepresenting the value of assets. Associated Press contributed to this reportTopicsDonald TrumpUS taxationNew YorkUS politicsnewsReuse this content More

  • in

    The US jobs report was a warning sign – even before the Omicron surge | Robert Reich

    The US jobs report was a warning sign – even before the Omicron surgeRobert ReichThe Fed wants to raise interest rates and coronavirus support programs are ending. Millions of families stand to suffer Friday’s jobs report from the Department of Labor was a warning sign about the US economy. It should cause widespread concern about the Fed’s plans to raise interest rates to control inflation. And it should cause policymakers to rethink ending government supports such as extended unemployment insurance and the child tax credit. These will soon be needed to keep millions of families afloat.US workforce grows by just 199,000 in disappointing DecemberRead moreEmployers added only 199,000 jobs in December. That’s the fewest new jobs added in any month last year. In November, employers added 249,000. The average for 2021 was 537,000 jobs per month. Note also that the December survey was done in mid-December, before the latest surge in the Omicron variant of Covid caused millions of people to stay home.But the Fed is focused on the fact that average hourly wages climbed 4.7% over the year. Central bankers believe those wage increases have been pushing up prices. They also believe the US is nearing “full employment” – the maximum rate of employment possible without igniting even more inflation.As a result, the Fed is about to prescribe the wrong medicine. It’s going to raise interest rates to slow the economy – even though millions of former workers have yet to return to the job market and even though job growth is slowing sharply. Higher interest rates will cause more job losses. Slowing the economy will make it harder for workers to get real wage increases. And it will put millions of Americans at risk.The Fed has it backwards. Wage increases have not caused prices to rise. Price increases have caused real wages (what wages can actually purchase) to fall. Prices are increasing at the rate of 6.8% annually but wages are growing only between 3-4%.The most important cause of inflation is corporate power to raise prices.Yes, supply bottlenecks have caused the costs of some components and materials to rise. But large corporations have been using these rising costs to justify increasing their own prices when there’s no reason for them to do so.Corporate profits are at a record high. If corporations faced tough competition, they would not pass those wage increases on to customers in the form of higher prices. They’d absorb them and cut their profits.But they don’t have to do this because most industries are now oligopolies composed of a handful of major producers that coordinate price increases.Yes, employers have felt compelled to raise nominal wages to keep and attract workers. But that’s only because employers cannot find and keep workers at the lower nominal wages they’d been offering. They would have no problem finding and retaining workers if they raised wages in real terms – that is, over the rate of inflation they themselves are creating.Astonishingly, some lawmakers and economists continue to worry that the government is contributing to inflation by providing too much help to working people. A few, including some Democrats like Joe Manchin and Kyrsten Sinema, are unwilling to support Biden’s Build Back Better package because they fear additional government spending will fuel inflation.Joe Biden needs to stand up and fight Manchin like our lives depend on it | Daniel SherrellRead moreHere again, the reality is exactly the opposite. The economy is in imminent danger of slowing, as the December job numbers (collected before the Omicron surge) reveal.Many Americans will soon need additional help since they can no longer count on extra unemployment benefits, stimulus payments or additional child tax credits. This is hardly the time to put on the fiscal brakes.Policymakers at the Fed and in Congress continue to disregard the elephant in the room: the power of large corporations to raise prices. As a result, they’re on the way to hurting the people who have been taking it on the chin for decades – average working people.
    Robert Reich, a former US secretary of labor, is professor of public policy at the University of California at Berkeley and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
    TopicsUS economyOpinionFederal ReserveEconomicsBiden administrationUS politicsUS domestic policyUS taxationcommentReuse this content More

  • in

    New York attorney general vows Trump investigation will proceed ‘undeterred’

    New York attorney general vows Trump investigation will proceed ‘undeterred’Former president sues Letitia James on grounds of political bias in effort to halt inquiry into his business affairs

    Trump unnerved as Capitol attack investigation closes in
    The New York attorney general, Letitia James, said on Monday her investigation of Donald Trump’s business affairs would continue “undeterred”, despite Trump suing to stop it on grounds of political bias, “because no one is above the law, not even someone with the name Trump”.How Trump’s $50m golf club became $1.4m when it came time to pay taxRead moreThe New York Times first reported Trump’s lawsuit, filed in federal court in Syracuse, New York. It alleges that James, a Democrat, “is guided solely by political animus and a desire to harass, intimidate and retaliate against a private citizen who she views as a political opponent”.James is investigating whether the Trump Organization manipulated valuations of its real estate properties.In one such instance, as Trump ran for president in 2016, the Guardian reported on differing valuations of a golf club outside New York City. The headline: How Trump’s $50m golf club became $1.4m when it came time to pay tax.The Washington Post and other outlets have reported similar alleged practices at other Trump properties.Last year, investigators working for James interviewed Eric Trump, one of the former president’s sons and a Trump Organization executive. James went to court to enforce a subpoena and a judge forced the younger Trump to testify, after his lawyers canceled a deposition.In an investigation that could only result in civil charges, James recently said she would seek to question Donald Trump under oath.It is rare for law enforcement agencies to issue a civil subpoena for testimony from a person also the subject of a related criminal investigation, partly because the person could simply cite their fifth amendment right to remain silent.It is unlikely Trump’s lawyers would allow him to be deposed unless they were sure his testimony could not be used against him in a criminal case.Trump’s business and tax affairs are also the subject of a criminal investigation run by the Manhattan district attorney, Cyrus Vance, which has been in progress for more than three years. James joined that investigation in May.The Manhattan case includes a focus on whether the Trump Organization overstated the value of some real estate assets to obtain loans and tax benefits.In their lawsuit against James, who recently announced a run for governor of New York before stepping back, Trump and the Trump Organization claim the attorney general has violated their rights under the US constitution by pursuing a politically motivated investigation.Trump and the company pointed to public statements James made before she was elected as attorney general.The lawsuit also made a plainly political play of its own, echoing Trump’s language in office and on the campaign trail when it said: “Rather than diligently prosecuting actual crimes in the state of New York – which are steadily on the rise – James has instead allocated precious taxpayer resources towards a frivolous witch hunt.”Trump and the Trump Organization are seeking a court order barring the investigation from going forward.In a statement, Trump’s attorney, Alina Habba, said: “By filing this lawsuit, we intend to not only hold her accountable for her blatant constitutional violations, but to stop her bitter crusade to punish her political opponent in its tracks.”In her own statement, James said: “The Trump Organization has continually sought to delay our investigation into its business dealings and now Donald Trump and his namesake company have filed a lawsuit as an attempted collateral attack on that investigation.“To be clear, neither Mr Trump nor the Trump Organization get to dictate if and where they will answer for their actions. Our investigation will continue undeterred because no one is above the law, not even someone with the name Trump.”James also noted that in August 2020 she “filed a motion to compel the Trump Organization to provide … documents and testimony from multiple witnesses regarding several, specific Trump Organization properties and transactions.“Since then, the court has ruled in Attorney General James’ favor multiple times.”Last month, Trump’s former lawyer and fixer Michael Cohen – who served a three-year sentence for offences including campaign finance violations relating to a payoff to the porn star Stormy Daniels, who claims an affair with Trump – was asked about the prospect of Trump being indicted in the criminal investigation in Manhattan.Cohen said he was confident prosecutors could “indict Donald Trump tomorrow if they really wanted and be successful”.Asked if he was “confident you did help Donald Trump commit crimes”, Cohen told NBC: “I can assure you that Donald Trump is guilty of his own crimes. Was I involved in much of the inflation and deflation of his assets? The answer to that is yes.”In July, the longtime Trump Organization chief financial officer, Allen Weisselberg, pleaded not guilty to criminal charges in what a prosecutor in Vance’s office called a “sweeping and audacious” 15-year tax fraud.TopicsDonald TrumpUS politicsNew YorkUS taxationnewsReuse this content More

  • in

    Michael Cohen: prosecutors could ‘indict Trump tomorrow’ if they wanted

    Michael Cohen: prosecutors could ‘indict Trump tomorrow’ if they wantedNew York investigation of Trump Organization is one of a number of sources of legal jeopardy for the former president Prosecutors in New York could “indict Donald Trump tomorrow if they really wanted and be successful”, the ex-president’s former lawyer and fixer Michael Cohen said on Sunday, discussing investigations of Trump’s business affairs.Can the Republican party escape Trump? Politics Weekly Extra – podcastRead moreAsked if he was “confident you did help Donald Trump commit crimes”, Cohen told NBC’s Meet the Press: “I can assure you that Donald Trump is guilty of his own crimes. Was I involved in much of the inflation and deflation of his assets? The answer to that is yes.”Cohen also repeated his contention that Trump will not run for the White House in 2024, because his huge fundraising success while hinting at such a run is too profitable a “grift” to give up.The Manhattan investigation of the Trump Organization, including whether Trump cheated on property valuations for tax purposes, is one of a number of sources of legal jeopardy for the former president.Trump denies all wrongdoing. Because the Manhattan district attorney, Cyrus Vance Jr, leaves office at the end of the year, some think indictments may be imminent. Cohen, who has cooperated, said: “I really try not to talk about it because it’s their investigation, nor do I want to tip off Trump or the Trump Organization’s people about what is actually happening.“So I would rather just not answer that specific question, other than to say that you can bet your bottom dollar that Allen Weisselberg is not … the key to this. They are going after Donald. They’re going after Don Jr, Eric, Ivanka, a whole slew of individuals, family as well.”Cohen also said he was “not their only witness, and most importantly, what I gave to them are thousands and thousands of documents”.“I’m not asking anybody to believe me,” he said. “No different than when I testified before the House oversight committee. Every statement that I make, I’ve backed up with documentary evidence. I truly believe that they can indict Donald Trump tomorrow if they really wanted, and be successful.”Weisselberg, chief financial officer of the Trump Organization, was indicted on tax charges, a move most thought meant to induce him to turn on Trump. Cohen did so, after being convicted on charges including lying to Congress and facilitating a pay-off to the porn star Stormy Daniels. He recently completed a three-year sentence, much of it served at home thanks to Covid.“They didn’t really do to Allen Weisselberg what they did to me,” Cohen said. “The threat against me was that they were going to file an 85-page indictment that was going to include my wife. They were going to say she was a co-conspirator to the hush money payment, which is absolutely nonsensical.“And, look, I’m married now 27 years. I’m with the same woman for 29 years. There was no chance in the world that I was going to put her at risk with these animals. The way they came down on me is nothing like what they’re doing to Weisselberg.“They should be squeezing right now [Allen’s son] Barry Weisselberg, who works for the Trump Organization, and they should be squeezing [another son] Jack Weisselberg, who is [with] one of only two organizations that made loans to the Trump Organization that we still know.Stormy Daniels to Michael Cohen: Fox News movie brought back memory of sex with TrumpRead more“You know, when you talked about whether or not Donald Trump inflated or deflated his assets, every single word that I had said about that is 100% accurate.”Cohen suffered a setback earlier this month, when a judge in New York ruled the Trump Organization was not liable for legal fees he said it owed. He told NBC he wanted to ensure that others “become responsible for their dirty deeds. I should not be responsible for Donald Trump’s dirty deeds.“Donald Trump is the one who was involved with the campaign finance violation [the payment to Daniels], as was Allen Weisselberg, as was Don Trump Jr, Ivanka, Eric, you know, and several other individuals. They need to be held accountable.“And I, like everybody else, am waiting for both Cyrus Vance Jr’s district attorney case [and New York attorney general] Tish James’s civil case, to move forward, and start moving forward a little quicker.”Cohen was asked if he believed the Trump Organization was “a criminal enterprise”.“Let’s just say that they committed crimes,” he said.TopicsMichael CohenDonald TrumpUS politicsRepublicansUS crimeUS taxationNew YorknewsReuse this content More

  • in

    Elon Musk targets Bernie Sanders over tax: ‘I keep forgetting you’re still alive’

    Elon Musk targets Bernie Sanders over tax: ‘I keep forgetting you’re still alive’
    Tesla founder responds to senator’s ‘fair share’ tweet
    Musk sold nearly $7bn of stock after controversial Twitter poll
    Biden approval ratings plunge amid crisis over inflation
    Elon Musk waded into yet another Twitter controversy on Sunday, the Tesla owner and world’s richest person responding to a tweet about tax from Senator Bernie Sanders by writing: “I keep forgetting that you’re still alive.”If the super-rich want to live for ever our planet is truly doomed | John HarrisRead moreSanders, 80, wrote: “We must demand that the extremely wealthy pay their fair share. Period.”Musk, 50, is also the owner of SpaceX and has a personal worth estimated at around $271bn, making him by some counts the richest person ever.He also tweeted: “Want me to sell more stock, Bernie? Just say the word …”Sanders did not immediately respond. Melissa Byrne, a progressive activist and former Sanders staffer, tweeted: “Folks, quit buying Tesla. Don’t reward abusive men.”This week, Musk sold nearly $7bn of shares in Tesla, more than $5bn after asking Twitter followers to vote on whether he should do so and more than $1bn on Friday.Jason Benowitz, senior portfolio manager at Roosevelt Investment Group in New York, told Reuters: “We expect the share sales will continue, as Musk holds millions of options worth billions of dollars that would otherwise expire worthless, and he has also prearranged share sales.”Tesla’s share price fell after Musk’s Twitter followers said he should sell stock. But the shares remain hugely valuable.Musk staged the Twitter poll to make a point about a “billionaires tax” proposed by Democrats in Congress, saying: “Note, I do not take a cash salary or bonus from anywhere. I only have stock, thus the only way for me to pay taxes personally is to sell stock.”Proponents of the billionaires tax say they want to target “unrealised capital gains”, meaning rises in the value of stocks owned by ultra-rich Americans who currently pay very little in tax.Sanders is a democratic socialist independent from Vermont who caucuses with Democrats in the Senate. He rose to global prominence with strong runs for the Democratic presidential nomination in 2016 and 2020, losing out to Hillary Clinton and then Joe Biden.As chair of the Senate budget committee and a champion of fairness in taxation, Sanders is pushing for Biden’s Build Back Better package of spending on health and social care and climate crisis mitigation to make it out of Congress and into law.Build Back Better would be funded by tax increases on corporations and the very wealthy. The billionaires tax is not part of the package but its chief proponent, Senator Ron Wyden of Oregon, condemned Musk’s Twitter stunt last week.Saying he wanted to “ensure billionaires pay tax every year, just like working Americans”, Wyden added: “Whether or not the world’s wealthiest man pays any taxes at all shouldn’t depend on the results of a Twitter poll.”Musk has a history of controversial – and sometimes costly – behaviour on social media. In October, he responded to Wyden’s tax proposals with a tweet.“Eventually they run out of other people’s money and then they come for you.”TopicsElon MuskUS taxationBernie SandersUS politicsUS domestic policyTeslanewsReuse this content More

  • in

    Senator behind billionaires tax denounces Elon Musk Twitter poll stunt

    US taxationSenator behind billionaires tax denounces Elon Musk Twitter poll stuntTesla owner offers to sell 10% of shares – as poll demandsRon Wyden has proposed tax to help fund Biden plans Martin Pengelly in New York@MartinPengellySun 7 Nov 2021 14.19 ESTFirst published on Sun 7 Nov 2021 07.45 ESTAfter Elon Musk asked his Twitter followers to vote on whether he should sell 10% of his Tesla stock, the architect of the proposed billionaires tax that prompted the move dismissed the tweet as a stunt.It’s not all about the culture war – Democrats helped shaft the working class | Robert ReichRead more“Whether or not the world’s wealthiest man pays any taxes at all shouldn’t depend on the results of a Twitter poll,” said Ron Wyden, an Oregon Democrat and chair of the Senate finance committee. “It’s time for the billionaires income tax.”When the poll closed on Sunday, nearly 3.5 million people had voted: 58% said Musk should sell the Tesla stock and 42% said he should not.Asked for comment, he tweeted: “I was prepared to accept either outcome.”Musk, who also owns SpaceX, was named by Forbes magazine as the first person worth more than $300bn. Reuters calculated that selling 10% of his Tesla shareholding would raise close to $21bn.Wyden has led Democrats pushing for billionaires to pay taxes when stock prices go up even if they do not sell shares, a concept called “unrealised gains”.Proponents of the tax say it would affect about 700 super-rich Americans, who would thus help pay for Joe Biden’s $1.75tn 10-year public spending proposal, which seeks to boost health and social care and to fund initiatives to tackle the climate crisis.Unveiling his proposal last month, Wyden said: “There are two tax codes in America. The first is mandatory for workers who pay taxes out of every paycheck. The second is voluntary for billionaires who defer paying taxes for years, if not indefinitely.“The billionaires income tax would ensure billionaires pay tax every year, just like working Americans. No working person in America thinks it’s right that they pay their taxes and billionaires don’t.”Musk has a history of controversial behaviour on Twitter. Responding to Wyden’s original proposal, he tweeted: “Eventually, they run out of other people’s money and then they come for you.”On Saturday, he said: “Much is made lately of unrealised gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock. Do you support this?“I will abide by the results of this poll, whichever way it goes. Note, I do not take a cash salary or bonus from anywhere. I only have stock, thus the only way for me to pay taxes personally is to sell stock.”In one response, the Berkeley economist Gabriel Zucman tweeted: “Looking forward to the day when the richest person in the world paying some tax does not depend on a Twitter poll.”When Wyden introduced his proposed billionaires tax, Chuck Marr of the Center on Budget and Policy Priorities, a nonpartisan think tank, used the example of Jeff Bezos, with Musk a competitor for the title of world’s richest person, to explain how the proposal would work.The Amazon founder, Marr said, would contribute to the federal government on the basis of unrealised gains from his stock holdings, worth around $10bn, rather than a declared salary of around $80,000.Citing a bombshell ProPublica report from June this year which showed how little Bezos, Musk and other super-rich Americans pay into federal coffers, Marr titled his analysis: “Why a billionaires tax makes sense – or why the richest people in the country should pay income taxes as if they were the richest people in the country.”Democrats ‘thank God’ for infrastructure win after state election warningsRead moreThe Biden spending plan Wyden wants to help fund, known as Build Back Better, remains held up in Congress. House centrists are demanding nonpartisan analysis of its costs while centrist senators remain opposed to many of its goals.Democrats are also split over the proposed billionaires tax. Among those opposed is Joe Manchin, the senator from West Virginia who with Kyrsten Sinema of Arizona stands in the way of Build Back Better, wielding tremendous power in a chamber split 50-50 and therefore controlled by the casting vote of Vice-President Kamala Harris.Speaking to reporters in October, Manchin said: “Everybody in this country that has been blessed and prospered should pay a patriotic tax.“If you’re to the point where you can use all of the tax forms to your advantage, and you end up with a zero tax-liability but have had a very, very good life and have had a lot of opportunities, there should be a 15% patriotic tax.”TopicsUS taxationElon MuskUS domestic policyBiden administrationUS SenateUS CongressUS politicsnewsReuse this content More

  • in

    It’s not all about the culture war – Democrats helped shaft the working class | Robert Reich

    OpinionUS politicsIt’s not all about the culture war – Democrats helped shaft the working classRobert ReichResults in Virginia and New Jersey do not make Republican dog-whistle politics the future. The left must do more to help Sun 7 Nov 2021 01.00 EDTLast modified on Sun 7 Nov 2021 01.03 EDTAfter Tuesday’s Democratic loss in the Virginia gubernatorial election and near-loss in New Jersey, I’m hearing a narrative about Democrats’ failure with white working-class voters that is fundamentally wrong.Is this a presidency-defining week for Biden? Politics Weekly Extra – podcastRead moreIn Thursday’s New York Times, David Leonhardt pointed out that the non-college voters who are abandoning the Democratic party “tend to be more religious, more outwardly patriotic and more culturally conservative than college graduates”. He then quotes a fellow Times columnist, the pollster Nate Cohn, who says “college graduates have instilled increasingly liberal cultural norms while gaining the power to nudge the Democratic party to the left. Partly as a result, large portions of the party’s traditional working-class base have defected to the Republicans”.Leonhardt adds that these defections have increased over the past decade and suggests Democratic candidates start listening to working-class voters’ concerns about “crime and political correctness”, their “mixed feelings about immigration and abortion laws”, and their beliefs “in God and in a strong America”.This narrative worries me in two ways. First, if “cultural” messages top economic ones, what’s to stop Democrats from playing the same cultural card Republicans have used for years to inflame the white working class: racism? Make no mistake: Glenn Youngkin focused his campaign in Virginia on critical race theory, which isn’t even taught in Virginia’s schools but comes out of the same disgraceful Republican dog-whistle tradition.The other problem with this “culture over economics” narrative is it overlooks the fact that after Ronald Reagan, the Democratic party turned its back on the working class.During the first terms of Bill Clinton and Barack Obama, Democrats controlled both houses of Congress. They scored some important victories, such as the Affordable Care Act and an expanded earned income tax credit.But both Clinton and Obama allowed the power of the working class to erode. Both ardently pushed for free trade agreements without providing the millions of blue-collar workers who thereby lost their jobs any means of getting new ones that paid at least as well.They stood by as corporations hammered trade unions, the backbone of the working class. Both refused to reform labor laws to impose meaningful penalties on companies that violated them or enable workers to form unions with simple up-or-down votes. Union membership sank from 22% of all workers when Clinton was elected to fewer than 11% today, denying the working class the bargaining leverage it needs to get a better deal.The Obama administration protected Wall Street from the consequences of its gambling addiction through a giant taxpayer-funded bailout but let millions of underwater homeowners drown.Both Clinton and Obama allowed antitrust to ossify – allowing major industries to become more concentrated and hence more economically and politically powerful.Finally, they turned their backs on campaign finance reform. In 2008, Obama was the first presidential nominee since Richard Nixon to reject public financing in his primary and general-election campaigns. He never followed up on his re-election campaign promise to pursue a constitutional amendment overturning Citizens United v FEC, the 2010 supreme court opinion that opened the floodgates to big money in politics.What happens when you combine freer trade, shrinking unions, Wall Street bailouts, growing corporate power and the abandonment of campaign finance reform? You shift political and economic power to the wealthy and you shaft the working class.Adjusted for inflation, American workers today are earning almost as little as they did 30 years ago, when the American economy was a third its present size.Biden’s agenda for working people – including lower prescription drug prices, paid family leave, stronger unions and free community college – has followed the same sad trajectory, due to the power of big money. Big Pharma has blocked prescription drug reform. A handful of Democratic senators backed by big money have refused to support paid family leave. Big money has killed labor law reform.Resilience: the one word progressives need in the face of Trump, Covid and more | Robert ReichRead moreDemocrats could win back the white working class by putting together a large coalition of the working class and poor, of whites, Blacks and Latinos, of everyone who has been shafted by the huge shift in wealth and power to the top. This would give Democrats the political clout to reallocate power in the economy – rather than merely enact palliatives that paper over the increasing concentration of power at the top.But to do this Democrats would have to end their financial dependence on big corporations, Wall Street and the wealthy. And they would have to reject the convenient story that American workers care more about cultural issues than about getting a better deal in an economy that’s been delivering them a worsening deal for decades.
    Robert Reich, a former US secretary of labor, is professor of public policy at the University of California at Berkeley and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
    TopicsUS politicsOpinionDemocratsUS CongressVirginiaNew JerseyRaceUS domestic policycommentReuse this content More

  • in

    Elon Musk asks Twitter followers if he should sell 10% of Tesla stock

    Elon MuskElon Musk asks Twitter followers if he should sell 10% of Tesla stockEntrepreneur refers to US proposal for ‘billionaires tax’Nearly 56% of respondents say Musk should sell shares Reuters in New YorkSat 6 Nov 2021 17.38 EDTLast modified on Sat 6 Nov 2021 21.05 EDTElon Musk on Saturday asked his 62.5 million followers on Twitter if he should sell 10% of his Tesla stock.Let them eat space! Elon Musk and the race to end world hunger | Arwa MahdawiRead more“Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock,” Musk wrote in a tweet referring to a “billionaires’ tax” proposed by Democrats in the US Senate.Musk tweeted that he would abide by the results of the poll. It received more than 700,000 responses in the hour after Musk posted it, with nearly 56% of respondents approving the proposal to sell the shares.Musk’s shareholding in Tesla comes to about 170.5 million shares as of 30 June and selling 10% of his stock would amount close to $21bn based on Friday’s closing, according to Reuters calculations.Analysts say he may have to offload a significant number of shares anyway to pay taxes since a large number of options will expire next year.The comments from Musk come after the proposal in Congress to tax billionaires’ assets to help pay for Joe Biden’s social and climate-change agenda. Musk is one of the world’s richest people and owner of companies including SpaceX and Neuralink. He has criticized the billionaires’ tax on Twitter.“Note, I do not take a cash salary or bonus from anywhere,” Musk said. “I only have stock, thus the only way for me to pay taxes personally is to sell stock.”Tesla board members including Elon Musk’s brother Kimbal have recently sold shares in the electric carmaker. Kimbal Musk sold 88,500 shares while fellow board member Ira Ehrenpreis sold shares worth more than $200m.TopicsElon MuskTeslaUS taxationUS domestic policyUS politicsBiden administrationUS CongressnewsReuse this content More