


Update: Obama and Gates were friends before the incident (SHOCKING!), more about Crowley is coming out about him being an upstanding citizen and family man.
Read about it here: http://www.google.com/hostednews/ap/article/ALeqM5j4S-r9G0m8HEq4JAFUw7_epFRb9QD99KQSJ80
Another update: Obama calls Crowley to semi-apologize (still not good enough!)
Here: http://www.wtop.com/?nid=116&sid=1723683
Yes, he bikes around the capital. I'll knock him off of it if I ever see him (BTW he is breaking the law by going the wrong way down the street, can I have a cut of the tax dollars generated from the ticket?)
So what our unfair tax policy leads to is exactly what the IRS is fighting today, it drives our high earners overseas to tax havens like Switzerland. The desire to save money is basic human nature (I would do the same if I had any significant amount of money). Instead of giving an insane percentage of their earning to the federal government, they take it out of the country entirely which makes the US government worse off than if they had just asked for a reasonable amount from these people in the first place. So the government pays the IRS to investigate and then the whole shitstorm gets tied up in litigation as it is now which also costs the taxpayers money. So the logical conclusion (who am I kidding, logic isn't in the government's vocabulary) would be to go to a flat tax system where everyone would agree to pay and you wouldn't have these enforcement problems (good luck getting a flat tax program passed, there are waaaayyyy too many people who would be out of a job, like every single accountant).
The entire US tax system is a disgrace and this just goes to prove my point.
Now a little more light-hearted:
Apparently no one saw a problem with hiring a guy from the private financial sector to drag GM and Chrysler out of bankruptcy. Generalization warning: the private financial sector (while may not being the cause of) made this economic downturn much worse than it should have been so why would we (the taxpayers) hire someone in the private financial sector for this job? I have no idea. But that is neither here nor there (that decision was made without consulting me back in February).
The issue at hand is why is Rattner stepping down days after bringing GM out of bankruptcy? There could be many reasons (and I'm speculating here). Maybe he just wanted to gain some notoriety by being 'the car czar' for a few months and leverage that in the private sector afterwards. Maybe he realized there is NO money in working for the federal government, especially with Obama's policies (except if you are a senator apparently). Maybe he rushed GM through the bankruptcy process and doesn't want to stick around to be responsible for GM going down in flames (again, which it most likely will). According to Rattner, he is leaving in order to return to private life and his family in New York City. This probably means that he will be returning to Quadrangle Group in the near future but that is just my own speculation. I'm guessing the answer to this question will come out in the near future and I will be watching the news closely for it.
So this going-on raises a few bones that I have to pick. The first being, if the Obama administration wants (more like they NEED) executive level talent like Rattner, they need to pay accordingly. You can NOT cap pay at $150,000 per year. Someone who is making 3 or 4 times that amount will not leave their cushy private sector job for a federal posting with heavy public scrutiny for less pay (someone who does make that decision should be required to undergo extensive psychological testing). If you want the best people in the country working for you, pay accordingly.
Another issue is that of private industry goons using the government as a tool of publicity. I have a feeling that not many people, apart from financial insiders, knew who Rattner was before he started working for the Treasury (I know I didn't). After working for the government for 5 months, he now enjoys top of the mind awareness and is a household name (even the best PR firms can't bring that kind of notoriety). So this guy is more or less going to make more money in the coming months because he working for the government (going along with the Obama theme, shouldn't he be taxed on the difference between his pay before working for the Treasury and after citing that his brief foray into government work is responsible for this increase in pay? Doesn't Democrat logic suck when turned on those who constantly spew it?)
That's all I've got for this morning, I may have an afternoon rant in me later on. Enjoy some satire below for the time being: