Fred and the Trump Family Fraud

The manipulation of values to evade taxes was central to one of the most important financial events in Donald Trump’s life. In an episode never before revealed, Mr. Trump and his siblings gained ownership of most of their father’s empire on Nov. 22, 1997, a year and a half before Fred Trump’s death. Critical to the complex transaction was the value put on the real estate. The lower its value, the lower the gift taxes. The Trumps dodged hundreds of millions in gift taxes by submitting tax returns that grossly undervalued the properties, claiming they were worth just $41.4 million.

The same set of buildings would be sold off over the next decade for more than 16 times that amount.

The most overt fraud was All County Building Supply & Maintenance, a company formed by the Trump family in 1992. All County’s ostensible purpose was to be the purchasing agent for Fred Trump’s buildings, buying everything from boilers to cleaning supplies. It did no such thing, records and interviews show. Instead All County siphoned millions of dollars from Fred Trump’s empire by simply marking up purchases already made by his employees. Those millions, effectively untaxed gifts, then flowed to All County’s owners — Donald Trump, his siblings and a cousin. Fred Trump then used the padded All County receipts to justify bigger rent increases for thousands of tenants.

Trump Engaged in Suspect Schemes as He Reaped Riches From His Father

Nine Point Nine

You see, when educated people with excellent credentials band together to advance their collective interest, it’s all part of serving the public good by ensuring a high quality of service, establishing fair working conditions, and giving merit its due. That’s why we do it through “associations,” and with the assistance of fellow professionals wearing white shoes. When working-class people do it — through unions — it’s a violation of the sacred principles of the free market. It’s thuggish and anti-modern. Imagine if workers hired consultants and “compensation committees,” consisting of their peers at other companies, to recommend how much they should be paid. The result would be — well, we know what it would be, because that’s what CEOs do.

There is a page in the book of American political thought — Grandfather knew it by heart — that says we must choose between government and freedom. But if you read it twice, you’ll see that what it really offers is a choice between government you can see and government you can’t. Aristocrats always prefer the invisible kind of government. It leaves them free to exercise their privileges. We in the 9.9 percent have mastered the art of getting the government to work for us even while complaining loudly that it’s working for those other people.

The source of the trouble, considered more deeply, is that we have traded rights for privileges. We’re willing to strip everyone, including ourselves, of the universal right to a good education, adequate health care, adequate representation in the workplace, genuinely equal opportunities, because we think we can win the game. But who, really, in the end, is going to win this slippery game of escalating privileges?

The Atlantic: The 9.9 Percent Is the New American Aristocracy

Tax Cuts Are Not Magic

Today, Republicans extol the virtues of lowering marginal tax rates, citing as their model the Tax Reform Act of 1986, which lowered the top individual income tax rate to just 28 percent from 50 percent, and the corporate tax rate to 34 percent from 46 percent. What follows, they say, would be an economic boon. Indeed, textbook tax theory says that lowering marginal tax rates while holding revenue constant unambiguously raises growth.

But there is no evidence showing a boost in growth from the 1986 act. The economy remained on the same track, with huge stock market crashes — 1987’s “Black Monday,” 1989’s Friday the 13th “mini-crash” and a recession beginning in 1990. Real wages fell.

I helped create the GOP tax myth. Trump is wrong: Tax cuts don’t equal growth.

Consequences of Free Speech

“The tech companies should stop censoring users that they politically disagree with or governments should regulate them as public utilities,” Torba’s spokesman Utsav Sanduja said. Last year, Sanduja and Torba founded Gab.ai, an alternative social network for free speech advocates. “Imagine if a private corporation owned all the highways and they decided to close them down whenever they feel like it — that is what it’s like. You cannot deny people a fundamental staple of the Internet.”

The Washington Post: In Silicon Valley, the right sounds a surprising battle cry: Regulate tech giants

It’s more like you claiming that you should be able to take the public highway (the Internet) to a privately owned restaurant, where you spew racist and misogynist bile, and the restaurant staff and other patrons just have to accept your presence and cannot kick you out.

The article goes on to conflate the liberal preference for legally enforced net neutrality (anyone can drive on the highway, but the restaurants along the way can make their own rules) with the desire of these morons to legally prevent private social, payment, and infrastructure networks from kicking people off for using their platforms to espouse hate (the above scenario).

The most hilarious outcome of all this would be if conservatives finally decided to abandon their preference for not using federal government power to break up monopolies, all because some Neo-Nazis got kicked off twitter.

Rock Beats Scissors

The white nationalist riot in Charlottesville, a city that boasts “diversity makes us stronger,” made a lot of things clear. One of them is that generic solutions to the racial problem — bland affirmations of inclusiveness, tolerance and “free speech” — will no longer work. Indeed, they have never worked, at least not on their own. The problem of discrimination and equality in America has been far more dynamic, operating like an oversized historical game of paper-rock-scissors. And in such a game, throwing the same thing over and over again is never a good idea.

N. D. B. Connolly: Charlottesville showed that liberalism can’t defeat white supremacy. Only direct action can.

Population Concentration

By 2040, 70 percent of Americans are expected to live in the 15 largest states, which are also home to the overwhelming majority of the 30 largest cities in the country. By extension, 30 percent of Americans will live in the other 35 states. That means that the 70 percent of Americans get all of 30 Senators and 30 percent of Americans get 70 Senators.

David Birdsell, Ph. D., Dean of the Baruch College Marxe School of Public and International Affairs

We’re in trouble if a cow in Wyoming has more proportional representation in the Senate than the average Texan or New Yorker.

Ideas Are Elitist

For those conservatives who were tempted to embrace a “wait-and-see” approach to Trump, what they’ve seen, time and again, is almost unimaginable.

And yet as surprising as this all has been, it’s also the natural outgrowth of 30 years of Republican pandering to the lowest common denominator in American politics. Trump is what happens when a political party abandons ideas, demonizes intellectuals, degrades politics and simply pursues power for the sake of power.

Bruce Bartlett: ‘Trump Is What Happens When a Political Party Abandons Ideas’

Decadent Republicans

Among people who said they voted for Trump in the general election, 35 percent had household incomes under $50,000 per year (the figure was also 35 percent among non-Hispanic whites), almost exactly the percentage in NBC’s March 2016 survey. Trump’s voters weren’t overwhelmingly poor. In the general election, like the primary, about two thirds of Trump supporters came from the better-off half of the economy.

The Washington Post — It’s time to bust the myth: Most Trump voters were not working class

This brought to mind comments sent to James Fallows by Joseph Britt, a Wisconsin Republican:

The Republican Party supported a war hero and veteran legislator for President in 2008. It backed a legitimate businessman and successful governor in 2012. This year, it fell in behind Trump. About as many Republicans voted for Trump as for Romney four years earlier. The great majority of these were not distressed working-class voters. They weren’t threatened by minorities or by globalization. They were — are — people who have lived easy lives, never wanting for anything save the most garish accoutrements of great wealth.

They knew Donald Trump was ignorant and dishonest, and it didn’t matter to them. They knew he was a sex predator who fathered children by various women, and it didn’t matter. Cheating on his taxes, cheating on his wives, consumer fraud, the bogus charity, the sponsorship of the Russian intelligence services, the anti-Semitic associates, cheating contractors who had done work for him, the picking on individuals before massive rallies, the insufferable racism, the continual running down of America — none of that mattered.

No, the only thing that mattered to Republicans of means once Trump was nominated by the Republican Party was that he had been nominated by the Republican Party. Loyalty to party took precedence over loyalty to American democracy, its mission, and traditions. What counted — all that counted — was that Trump had been chosen to lead Our Team.

What a pathetic thing is decadence. Millions of Republicans as comfortable and secure as any people who have ever lived, who owe everything to the historic miracle that is the United States, chose to go along with a presidential candidacy shot through with moral degeneracy and contempt for the public good. They had other choices in the primaries; they were warned by their own former leaders what Trump represented. They voted for him anyway, hoping to give their team a win in the game, the shallow entertainment that is all they think of politics.

The Atlantic — After the Election: ‘What a Pathetic Thing Is Decadence’

The Solution is Always More Tax Cuts

The tax cuts for the wealthy frequently advocated by Republican politicians are viewed unfavorably by many voters, polls show. The Public Religion Research Institute, a nonpartisan group that conducts public-opinion surveys, found that 57 percent of Americans nationally, including over a third of Republicans, support increasing taxes on those earning at least $250,000 a year. By contrast, Brownback’s policies reduced them drastically.

Yet Dan Cox, the institute’s research director, said that Brownback’s defeat did not augur more victories for Republicans pursuing more moderate economic policies. He said Republican policymakers and their advisers around the country are likely to view the example of Kansas as a failure of implementation, rather than one of principle, and they will argue that Kansas’s experiment would have succeeded had the legislature reduced spending even more.

The Washington Post: Republicans are predicting the beginning of the end of the tea party in Kansas

As the saying goes, conservatism never fails, it is only failed.