President Obama to Hedge Fund Manager: Taxing You More Like Your Secretary is Not Anti-Business
I thought this was one of the better moments during President Obama's town hall with CNBC's John Harwood. He gets asked by hedge-fund manager Anthony Scaramucci what we can do about the anti-Wall Street sentiment out there and what to do about health-care costs and taxation on businesses that are wanting to hire right now.
President Obama reminded him that most of the folks on Main Street would say that they're the ones who feel like they've been beaten up by Wall Street, and not the other way around. He also addressed the crying we've heard out of those on Wall Street who act like their tax rates going up a small amount is going to kill them.
After showing a quote from Newsweek where Blackstone CEO Steve Schwarzman had the nerve to say this:
"It's a war," Schwarzman said on the struggle with the administration over increasing taxes on private-equity firms. "It's like when Hitler invaded Poland in 1939."
Obama responded.
Well I don't know where that comes from. That's my point... I guess. It is a two way street. If you're making a billion dollars a year after a very bad financial crisis where 8 million people lost their jobs and small businesses can't get loans, then I think that you shouldn't be feeling put upon. The question should be how can we work with you to continue to grow the economy.
A big source of frustration, this quote that you just said, this was me acting like Hitler going into Poland had to do with a proposal to change a rule called carried interest which basically allows hedge fund managers to get taxed at 15% on their income.
Now everybody else is getting taxed at... you know, a lot more. The secretary at the hedge fund is probably being taxed at twenty five, twenty eight, right? And these folks are making... getting taxed at fifteen. Now there are complicated economic arguments as to why this isn't really income, this is more like capital gains and so forth, which is a fair argument to have. I have no problem having that argument with hedge fund managers, many of whom I know and went to school with and I respect their business acumen, but the notion that somehow me saying maybe you should be taxed more like your secretary when you're pulling home a billion dollars or a hundred million dollars a year, I don't think is me being extremist or being anti-business.
Why is nobody calling out business for putting all of the burden on their employees? They're all reducing their full-time workforce and substituting with part-time and contract labor. All to avoid having to pay benefits like pensions and health care.
Too tough on Wall Street? That won't happen in my opinion until they've been chased out of Manhattan by mobs with torches and pitchforks. They're waging war on America from their plush boardrooms, and nobody's fighting back.
"In theory theory and practice are alike. In practice they are very different."
At least Obama took real questions from real people and answered them unlike "W" who always hand picked his audience during "town halls".
for the 7 figure hedge fund manager.
Man, he must feel poor compared to all his co-workers...
"I could give a flying crap about the political process.... We're an entertainment company."
- Glenn Beck - Forbes interview; April 26, 2010
I might feel a little more sympathy for him.....nah.
.
was critisism of his answers to the average questioner. Where was this in the MSM?
maybe if you go to MSNBC, but otherwise, nada....wouldn't want to put their rich friends in a bad light, dontchaknow.
“The greatest evildoers are those who don’t remember because they have never given thought to the matter, and, without remembrance, nothing can hold them back,”
the extra expense of anything more than the very basic cable. In many areas it isn't availabe unless you pay more. Fox and CNN are.
anti-Wall Street sentiment out there......
Well, for one thing, you can pay the same tax rate the rest of us poor slobs do....then maybe we wouldn't be so pissed off at you, you greedy little putz!
“The greatest evildoers are those who don’t remember because they have never given thought to the matter, and, without remembrance, nothing can hold them back,”
Why isn't anyone looking out for the ivy league educated hedge fund managers?? Not to worry help is on the way, they can't keep the Republicans out of congress and the White House forever.
for the sweaty masses with big tough guy talk, but meanwhile he appoints Jacob Lew another Wall St. insider who was a former executive with Citigroup to head The Office of Management and Budget. This guy participated in the deregulation of Wall St. during the Clinton Administration. Great choice Barry for another two faced appointment. From Huff Post article. These stab in the back appointments are for all you apologists to ponder and reflect upon. You betcha.
It would be nice if Obama, on taking a question like that, could just come out and say, "What the fuck are you talking about, you jackass? Hitler? Poland?"
Maybe he can be like that when he knows his career is coming to an end.
Nibbling around the edges so as to not upset the owners.
The question is NOT why hedge fund managers pay at the capital gains rate.
The questions is why there even IS a capital gains rate.
All income should be taxed the same.
I'll bet close to 100 percent of the audience believes the sham argument that trading stocks back and forth is "investing in a company" and "creates jobs".
Drama's too smart to believe it (I hope) but he sure want's us to.
I agree completely. Income realized from investing in stocks (other than IPOs and other company issues of stock) should in no way be effectively subsidized by being taxed at a lower capital gains rate. I do buy the argument that capital gains taxes make sense as an incentive to invest in growth (with reservations and caveats), but the idea that investing in the stock market has any relation to that currently has no connection with reality.
Is there some bill in Congress to do this? Or are we looking at just another campaign idea?
Corruption favors the wealthy.
Boo Hoo for this chump wanting to avoid his responsiblity to his country by paying a fair rate of tax. I have no sympothy for rich buttheads who feel they shouldn't have to pay their fair share. We need a separation of corporation and state to prevent these jerks from robbing the American people like they have been for years and years.
Maybe they'll take Beck, Limbaugh and all of Fox news with them. If we ask them nicely to do so, do you think it would help?
I wonder if this douchebag will end up taking his smackdown--as needlessly gentle as it was--out on said secretary?
I'm trying to picture Bush Jr. use the word "acumen" in a sentence.
Obama "sounded" like he is representing us that time, wow. I say, I want taxed 15 percent so I can get ahead.....you have to pay a third of your income till ya make it to a million a year...the TAX system is completely backwards, poor people pay more and get less. I mean poor as in 24-60 something K. 30k a year gotta pay 10 grand almost......Live on that once by ur self. I made it up to 50k a year, and could almost eat daily....HAHHAHAAAA.....fuck you!
Obama says "a big chunk" of America thinks he's been too soft.
Not one example is given about just how Obama has been too tough on Wall Street, but his old law school buddy says Wall Street "feels" that way so it must be true.
Obama thus becomes the "wise" one in the middle.
Manufactured centrism is just that easy.
Corruption favors the wealthy.
too tough on, just one. Although one doesn't make a list does it? And saying Progressives doesn't count.
I can't usually tolerate "The McLaughlin Group" but it happened to be the only thing on while everything else was commercials and this caught my attention:
The look on Buchanan's face was priceless.
I think most of these rich bastids realize that given the right set of circumstances (a Pearl Harbor-like incident perhaps), that their heads will be looking down on the hoi polloi from pikes.
That's quotable. Thanks.
Corruption favors the wealthy.
this,
"I have no problem having that argument with hedge fund managers, many of whom I know and went to school with and I respect their business acumen"
these hedge fund managers, with their "synthetic financial instruments" just gave the american citizenry the greatest screwing of the last hundred years, and the prez "respects their business acumen"? then he must agree with how they put one over on the public.
green day had it right with "american idiot", we are so bedazzled with gee-gaws and gimmicks,i swear it's hopeless.
How about if he would have said: A hedge fund manager making a billion dollars a year investing the 401k of the working class is thievery!!
Clinton era tax-rates? How timid? I think Truman era tax-rates would be more appropriate for these leeches.
George W Bush would answer the questions in a way you would wonder what the blue blazes he was talking about! And it would be breaking news. Obama's town hall should have been on every network in America and played at every school. But America is upsidedown now.
MS. CLIFT: Class warfare is when we burn down your houses, Pat. This is not class warfare.
Scaramucci is an arrogant f ck and deserves way more of a smackdown than that. What a slick and slimy scumbag.
Listening to the news today has me so enraged (and I have a job and benefits and stuff), it makes me wonder if this current spiral won't end in what Ms. Clift said. Or worse...
Obama: "...this is me acting like Hitler going into Poland..."
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