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WSJ: The GOP Loves the Heartland to Death

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Quote:
The GOP
Loves the Heartland
To Death
By THOMAS FRANK
September 10, 2008; Page A13

It tells us something about Sarah Palin's homage to small-town America, delivered to an enthusiastic GOP convention last week, that she chose to fire it up with an unsourced quotation from the all-time champion of fake populism, the belligerent right-wing columnist Westbrook Pegler.

"We grow good people in our small towns, with honesty and sincerity and dignity," the vice-presidential candidate said, quoting an anonymous "writer," which is to say, Pegler, who must have penned that mellifluous line when not writing his more controversial stuff. As the New York Times pointed out in its obituary of him in 1969, Pegler once lamented that a would-be assassin "hit the wrong man" when gunning for Franklin Roosevelt.

There's no evidence that Mrs. Palin shares the trademark Pegler bloodlust -- except maybe when it comes to moose and wolves. Nevertheless, the red-state myth that Mrs. Palin reiterated for her adoring audience owes far more to the venomous spirit of Pegler than it does to Norman Rockwell.

Small town people, Mrs. Palin went on, are "the ones who do some of the hardest work in America, who grow our food and run our factories and fight our wars." They are authentic; they are noble, and they are her own: "I grew up with those people."

But what really defines them in Mrs. Palin's telling is their enemies, the people who supposedly "look down" on them. The opposite of the heartland is the loathsome array of snobs and fakers, "reporters and commentators," lobbyists and others who make up "the Washington elite."

Presumably the various elite Washington lobbyists who have guided John McCain's presidential campaign were exempt from Mrs. Palin's criticism. As would be former House Speaker Dennis Hastert, now a "senior adviser" to the Dickstein Shapiro lobby firm, who hymned the "Sarah Palin part of the party" thus: "Their kids aren't going to go to Ivy League schools. Their sons leave high school and join the military to serve our country. Their husbands and wives work two jobs to make sure the family is sustained."

Generally speaking, though, when husbands and wives work two jobs each it is not merely because they are virtuous but because working one job doesn't earn them enough to get by. The two-job workers in Middle America aren't spurning the Ivy League and joining the military straight out of high school just because they're people of principle, although many of them are. It is because they can't afford to do otherwise.

Leave the fantasy land of convention rhetoric, and you will find that small-town America, this legendary place of honesty and sincerity and dignity, is not doing very well. If you drive west from Kansas City, Mo., you will find towns where Main Street is largely boarded up. You will see closed schools and hospitals. You will hear about depleted groundwater and massive depopulation.

And eventually you will ask yourself, how did this happen? Did Hollywood do this? Was it those "reporters and commentators" with their fancy college degrees who wrecked Main Street, U.S.A.?

No. For decades now we have been electing people like Sarah Palin who claimed to love and respect the folksy conservatism of small towns, and yet who have unfailingly enacted laws to aid the small town's mortal enemies.

Without raising an antitrust finger they have permitted fantastic concentration in the various industries that buy the farmer's crops. They have undone the New Deal system of agricultural price supports in favor of schemes called "Freedom to Farm" and loan deficiency payments -- each reform apparently designed to secure just one thing out of small town America: cheap commodities for the big food processors. Richard Nixon's Agriculture Secretary Earl Butz put the conservative attitude toward small farmers most bluntly back in the 1970s when he warned, "Get big or get out."

A few days ago I talked politics with Donn Teske, the president of the Kansas Farmers Union and a former Republican. Barack Obama may come from a big city, he admits, but the Farmers Union gives him a 100% rating for his votes in Congress. John McCain gets a 0%. "If any farmer in the Plains States looked at McCain's voting record on ag issues," Mr. Teske says, "no one would vote for him."

Now, Mr. McCain is known for his straight talk with industrial workers, telling them their jobs are never coming back, that the almighty market took them away for good, and that retraining is their only hope.

But he seems to think that small-town people can be easily played. Just choose a running mate who knows how to skin a moose and all will be forgiven. Drive them off the land, shutter their towns, toss their life chances into the grinders of big agriculture . . . and praise their values. The TV eminences will coo in appreciation of your in-touch authenticity, and the carnival will move on.
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post #2 of 2
Thread Starter 
Here's an excellent companion to the WSJ piece...

Report: Banks helped foreigners escape US taxes

... Including (SHOCKER!) UBS, a French bank whose Vice Chairman and major lobbyist also happens to be John McCain's top economic adviser (though now "in the closet" after the "people with economic woes are just whiners" quip) Phil Gramm!

Quote:
By MARCY GORDON – 1 day ago

WASHINGTON (AP) — Big Wall Street investment banks have designed and marketed schemes enabling non-U.S. taxpayers, including offshore hedge funds, to evade millions of dollars in taxes each year on U.S. stock dividends, Senate investigators have found.

Some banks have been crafting for more than 10 years transactions designed to enable their foreign clients to dodge U.S. taxes on dividends, while the Internal Revenue Service failed to act to prevent the abuse, two senators say.

A yearlong investigation by a Senate Homeland Security and Governmental Affairs subcommittee, whose results are to be made public Thursday, found that the evasion of dividend taxes adds up to billions of dollars in revenue lost to the U.S. Treasury over the past decade.

IRS Commissioner Douglas Shulman is scheduled to testify on the issue at a hearing Thursday by the investigative subcommittee. Executives of Lehman Brothers Holdings Inc., Morgan Stanley and Deutsche Bank, and from several hedge funds also are expected to appear as witnesses.

The inquiry is part of a series of hearings by the Senate panel on offshore tax abuse, which is estimated to cost the United States $100 billion a year in lost tax revenue.

In July, the subcommittee accused banks in Switzerland and Liechtenstein of helping wealthy Americans commit large-scale tax evasion, and called for tougher laws to combat offshore tax havens around the world.

"Major financial institutions have devised complex financial structures to enable their offshore clients to dodge U.S. dividend taxes," Sen. Carl Levin, D-Mich., the subcommittee's chairman, said in a statement Wednesday. "We need legislation to take these abusive tax-avoidance gimmicks off the market, and we need to end the silence and inaction of the Treasury (Department) and IRS in the face of rampant dividend tax dodging."

The panel's senior Republican, Sen. Norm Coleman of Minnesota, said it was "especially troubling that the IRS has failed to address many of these problems for so long."

Offshore hedge funds have frequently participated in the tax-evasion transactions, and their U.S. investment mangers often facilitate their participation, the Senate panel found.

The banks designed and marketed transactions, mainly involving stock swaps or loans, that were described as offering dividend or yield "enhancement" or "dividend uplift," according to the investigators.

They developed case histories involving six major investment banks: Citigroup Inc., Deutsche Bank, Lehman Brothers, Merrill Lynch & Co. Inc., Morgan Stanley and UBS.

Foreigners who invest in the United States are exempt from many U.S. taxes. If they invest in a U.S. company that pays a dividend to shareholders, however, U.S. law requires foreign investors to pay taxes on the dividends they receive. Dividends sent abroad are meant to be taxed at a 30 percent rate in most countries and at 15 percent in countries that have a tax treaty with the United States.

Actually, the investigators say, many foreign shareholders never pay the dividend taxes they owe, in part because banks are helping them escape paying them.
Read the rest of the piece here.

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