Showing posts with label taxation. Show all posts
Showing posts with label taxation. Show all posts

Tuesday, April 19, 2011

Don’t envy the super rich. After they’ve stolen all your money … their lives, and their spouses' and their children’s lives will be in grave danger.

Some years ago when The Crank’s Beautiful Girlfriend was still alive, the two of us went down to Ecuador. Our intention was to see the Galapagos Islands, but we also let some travel agent talk us into spending four days in mainland Ecuador, escorted by a private guide.

It turned out that we needed our own guide because the experience was not pleasant. As we soon discovered, Quito is a dangerous place. Even in downtown Quito, we were advised that it was unsafe to cross the street at night. I mean that literally. One night, just as the sun had set, we stepped through the front door of our luxury hotel.

“Where are you going?” the doorman asked.

We pointed to another luxury hotel just across the street, where there was a restaurant we had been told was pretty good.

“I’ll call a taxi for you,” said the doorman.

“But it’s only across the street!”

“It is not safe,” insisted the doorman. He blew his whistle. A taxi pulled up. The doorman held the door open for us.

I thought this was a scam to earn a tip for the doorman and a fare for the taxi. Little by little I became convinced it was something else.

Once we exited the taxi across the street I noticed that the driver waited watchfully until we entered the hotel restaurant on that side. Just as we walked in, he pulled away.

It was the same story on the return trip. Another doorman pleaded with us not to cross the street back to our own hotel, except within the safety of a taxi. And again, the taxi waited until we were inside before driving off.

The super rich get to pay for two armed killers at the door

Then, during a ride through one of Quito’s“nicest” neighborhood, we found ourselves getting driven among the hills above town, past nice-looking but not extraordinary suburban-style houses. Most of the houses had a uniformed armed guard with an automatic rifle standing at the front door. A few houses had two armed guards with automatic weapons.

I asked why a smattering of the houses had two armed guards instead of one,

“Oh,” said are guide, “those are the homes of the super rich.”

And that’s when I saw the future of America’s top ten percent of the population that owns and controls seventy-one percent of the wealth.

No, there will be no revolution against them in this country. No chance of the masses rising up and taking control as they did in Egypt and Tunisia.

We eliminated that possibility ourselves when we eliminated the draft. That insured us that instead of having a citizen-soldier army, like the one that refused to fire on their fellow citizens in Egypt, we would have an army loyal to the people who rule – like in Libya. If you mass to protest in a way that will seriously threaten the power structure, you will die in a hail of bullets. Kent State was just a precursor.

Suddenly to be super rich will be to put your life on the line

Instead, what will destroy the quality of life of the super rich will be the cost of attempting to defend themselves from gangs of ambitious thugs who form little fiefdoms led by ruthless and ambitious criminals who kidnap, torture, rob, and kill in order to survive and amass wealth outside of the power structure.

In short, the thugs who are robbing America of our Social Security and Medicare and product safety and education today will live in fear of even bigger thugs tomorrow.

This is how it is these days in most of Mexico, most of Nicaragua, much of El Salvador – in fact in every one of the impoverished Latin American nations where the top few have all the money and power while the people at the bottom struggle desperately to survive. Here’s travel authority Rick Steves talking about it:

The saddest thing about visiting Managua and San Salvador is experiencing the fear caused by the violence that comes with extreme poverty in a big city. Every major hotel and nearly every business has an armed guard. It's unwise to walk around after dark, especially with a big camera. While you're unlikely to be hurt, the risk is that groups of young thugs might just rob you at knifepoint. I found that, rather than whole safe neighborhoods, there were mostly small islands of safety around malls and fancy hotels. A wealthy tourist (and nearly all tourists here are wealthy, in relative terms) happily pays triple for a taxi that works with the hotels so you know you're safe. You generally hop from one safe zone to another by cab.

The future of super wealth in this country will be a future filled with fear of kidnapping. Fear that gangsters will surround your car and shoot your driver, drag you into a truck, chop off your thumb and send it to your family to show that they are truly sincere about wanting all the cash your relatives can put their hands on.

If it's not you who gets kidnapped, then it will be your son. Or your daughter. Or your wife.

Believe me, the “kidnapping tax” rate will be higher than any income tax that any Democrat has ever called for.

Decapitated heads at your font door

Expect to see decapitated private policemen among those who you hired to protect you. Dead guards lying in pools of blood in front of your bullet-riddled front door. Expect to take your daily drive to the office by a different route each day, preferably in a different automobile each day, to confuse those hoping to kidnap you and torture you.

It boils down to often-repeated history: those who sow unreasonably acquisitive greed will reap a whirlpool of blood.

And all when it would be so easy if you simply accepted a marginal tax rate a few points higher than you pay now, rather than demanding a tax cut while you milk the middle class and the poor for their social and medical security, driving them into penury.

Enjoy your money now, pal. It’s going to be hard shuffling your bankroll to count your wad when your thumbs are chopped off.

Monday, September 10, 2007

Burst housing bubble? Sorry pal, only the “little people” get their bubbles burst.


So I’m just back from Paris and what’s the first thing that greets me in the mail? Why, a report to the terribly, terribly rich from one of their New York real estate brokers, a company called Stribling. (God knows why they think a crank like me possibly could be super rich, or even merely rich. But let 'em dream.)

Entitled, “Mid-Year Luxury Report 2007 – The $5,000,000 and up Manhattan Residential Market,” Stribling's report leaves no doubt whatsoever that the roof is only crashing down on Joe Average and his pathetic adjustable rate mortgage.

Meanwhile the barely-taxed superrich with their $20 million to $1 billion-plus incomes have mega-wads of cash to burn on what Stribling is calling “trophy apartments.”

Says the Stribling report, “…there continues to be an extraordinary amount of money in this market, mostly from the beneficiaries of the hedge fund industry and other areas of Wall Street.”

Hedge fund industry? Aren’t those the guys who keep running to Congress demanding bigger tax breaks for themselves because they’re risking their clients’ money?
http://www.epi.org/content.cfm/pm120

Nah, it's not logical. Just greedy.

If you think you just detected a slight flaw in logic, you're right. The hedge fund billionaires want a huge tax break for themselves because they’re risking other peoples’ money. Well hey, if you don’t have the sheer conscience-free nerve of knife-wielding thug, it’s still almost impossible to become a billionaire in this country, the likes of Warren Buffet possibly excepted.

But back to Stribling, the real estate brokers. Stribling reports that in the first half of this year in Manhattan, there were 45 sales of apartments in the cheesy $5 to $10 million range, 18 in the $10 to $20 million range, and six that sold for $20 million and over. That’s for an apartment, dude. You know, one of them things with a living room, a little bitty kitchen for the cook to make your dinner in, a dining room, a couple of bedrooms or maybe three, and perhaps a nice view.

The highest sale so far this year has been for over $33 million dollars. Only five years ago, the highest sale was for $17 million and fewer than half as many people shelled out over $5 million for a place to hang their hats as have so far this year.

"Mortgages? We don't need
no stinking mortgages."

Remember, these are folks whose co-op buildings don’t believe in mortgages. At the very least in most top Manhattan buildings, you’ll be required to put down 50% in cash and to have liquid net worth of at least three times – and I’ve heard of buildings demanding 20 times – what the apartment cost you.

In addition, many of the buildings for the super rich are "all cash" buildings. If you have to apply for a mortgage, the building's co-op board won't let you in.

But $5 to $33 million is still just play money for folks who also have palatial estates in the Hamptons, and travel around in private jets to avoid the nastiness of having to go through airport security lines with their shoes off or have their tranquility disturbed by crying babies back there in tourist class.

It's time to tax 'em
'till they bleed

All the more reason why this nation needs more steeply graduated taxes for individuals whose incomes run in the millions, and an excess wealth tax for people with more than double-digit millions of net worth.

And if you red state readers think you’ll get any love and comfort from the super rich for letting them rob you blind in the stock market and via George Bush’s "compassionate conservative" taxation system that punishes the poor just because they're poor, I refer you to the last paragraph of the Stribling report, which says in part:

“In this global economy, Manhattan should be compared to London, not Lubbock.”

Got that, Lubbock?