March 19th, 2009: The Death of Greed Legislated in Congress with 90% Bonus Excise Tax
Milton Friedman Spinning Apoplectically In Grave (AIG)
"Many forms of government have been tried, and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise. Indeed, it has been said that democracy is the worst form of Government except all those other forms that have been tried from time to time."
Winston Churchill, House of Commons, 11 Nov. 194
Sir Winston Churchill- Democracy and Capitalism are both bad but......
Winston Churchill's quote about democracy being the worst form of government except all others will now be rebottled as to the future of capitalism. You find find little personal revelation about the Stickman other than his birthday coincides with the death of greed that occurred today in Washington today (March 19th) as the House passed a confiscatory tax on bonuses over $100,000 for recipients of TARP monies of $5 billion or more. I wonder who they had in mind???
House Passes Heavy Tax on Bonuses at Rescued Firms
By CARL HULSE and DAVID M. HERSZENHORN
WASHINGTON — The House overwhelmingly approved on Thursday a near total tax on bonuses paid this year to employees of the American International Group and other firms that have accepted large amounts of federal bailout funds, rattling Wall Street as lawmakers rushed to respond to populist anger.
Despite questions about the legality of the retroactive 90 percent levy, Democrats and some Republicans said the tax on bonuses for traders, executives and bankers earning more than $250,000 was the quickest way to show angry Americans that Congress intended to recoup the extra dollars. Even backers of the measure noted it was an extraordinary step.
Here is a little clip from the partially discredited and perhaps soon-to-be-rehabilitated Milton Friedman appearing with a much younger Phil Donahue:
Miltie and Phil
For those of you who ever studied political science and read the Federalist Papers, you might want to brush up on James Madison's Federalist 10 regarding "factions" and Alexis de Tocqueville's Chapter 15 on "Tyranny of the Majority" from Democracy in America (1831). I think you will start to see alot of references to these two seminal historical essays on the punditryscape over the coming weeks. You heard it here first.
Love,
Sticky (on my birthday)