Wednesday, November 26, 2008

more tips & questions for the new u.s. president

as usual i have an opinion about our new president's dealings, but in lieu of ranting myself i will again differ to some folks that have much more experience in researching & speaking truth to's some transcript from democracy now's tuesday november 25th episode featuring some very interesting commentary...

Michael Hudson, at least when he is talking about infrastructure, is he talking about mass transportation?

MICHAEL HUDSON: Largely that.

AMY GOODMAN: I mean, as opposed to highways and roads, and actually mass transit?

MICHAEL HUDSON: That is certainly the key. Mass-transit and almost every country creates an increase in real estate values along the routes that could actually rental that is increased by this could actually finance the entire transport system. In London when they built the tube extension to their financial district of the loop, they created 13 billion pounds worth of increased in real estate value. The tube itself cost only $8 billion. They left this $13 billion real estate value in the hands of the private landlords. Same thing in Chicago in the US. It can be a very heavy investment in mass transportation here. This is going to create enormous real-estate values. The tax system, leaves these in private hands. I think all of the tax proposals that Mr. Obama have spoken about, have to do with income tax primarily. The rich people prefer not to earn income. They prefer to make capital gains. So the intention of the economic gain that Mr. Obama brought in is really to create a huge capital gains economy. Even more disparity of wealth while leaving in place the one thing that should address in the last year and that is the enormous debt overhead. Nothing is happening on that. He is adding to debt, not reducing it.

AMY GOODMAN: Barack Obama throughout the campaign continually said that well the people should be taxed, after the Bush tax cuts, but now owing to yesterday’s address, he seemed to back off, saying well, he would let them expire perhaps, that’s a possibility, in that I think it was 2011. Your thoughts?

MICHAEL HUDSON: The kicker is when he is talking about, Obama is talking about tax, he is talking about income tax. Most wealth, is not taxed, because most wealth, takes the form of return capital gain, most wealth does not pay, if I see a wage if not others, so what Obama is talking about, well, is taxation at the margin. He is not talking about kind of wealth, and the kind of returns that Wall Street gets, which are not subject to taxation at all, in fact, the give aways, that the treasury put in to the bank available, says that because the banks are bought, affiliates that have cash, they are not even going to be subject of the income taxation. So the whole issue of the devils of detail of the small print and Mr. Obama, thanks to his appointing Summers in this aim, is going to leave it there. The Russian cryptnocrats didn’t have to tax on income, as the phrase went, only the little people pay taxes, I am afraid that’s going to be the case under Mr. Obama also.

...i will try to leave a lil more original commentary on the subject of making our soon to be new president an honest man that serves the common good tomorrow.

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