April 17, 2012 archive

Cross posted from The Stars Hollow Gazette

Income equality in the United States continues to widen between the 99% and the 1%. It was one of the main issues that Occupy Wall St. brought to the forefront of the conversation on the economy and the phony concern over the deficit. One of the big issues is tax inequality, the poor and middle class pay a greater percentage of their income to the government than do the top earners. President Obama and the Congressional Democrats have proposed a minimum tax of 30 percent to individuals making more than a million dollars a year, called the Buffet Rule, after billionaire Warren Buffet who thinks that it is unfair that he pays less in taxes than his secretary. Although it has been pointed out that revenue generated from the increase would only minimally help reduce the deficit, it is wildly popular with 67% of Americans in support of its passage. Unfortunately, it didn’t have the votes in the Senate to even get to the floor for a vote. Even if it did it would never see the light of day in the intransigent House. We mustn’t tax the job creators who haven’t created jobs in the US for over a decade. We must continue to allow millionaires, like Romney, to give their children millions as a gift tax free, thanks to a tax loophole on “carried interest,” presumably one of the loopholes that would have been closed:

When the Romney campaign disclosed in December that the couple’s five sons had a $100 million trust fund, I suspected that, in setting up the fund, the Romneys used a tax strategy that allows some very rich people to avoid paying gift taxes. But it was impossible to know if this was the case without seeing their tax returns going back years. [..]

Reuters emailed the Romney campaign spokeswoman to ask how much the Romneys paid in gift taxes on assets put into the sons’ trust over the last 17 years. The spokeswoman, citing Brad Malt, the Romney family tax lawyer, answered: none.

The idea that someone could pay zero gift taxes on contributions to a $100 million trust fund may surprise people who have heard arguments that the wealthy are overburdened by gift and estate taxes. But the Romneys’ gift-tax avoidance strategy is perfectly legal.

A good discussion on whether Obama’s ‘Buffett Rule’ would bridge tax divide was had on MSNBC’s Up with Chis Hayes with University of Pennsylvania Wharton professor Betsey Stevenson, Reuters columnist David Cay Johnston, former Rep. Tom Perriello, D-Va., and Demos Vice President Heather McGhee.

This bill had very little chance of passing and was in all reality merely a political gambit to make the Republicans look like they are out of touch with the average American voter. How well that will work this early in the campaign remains to be seen.

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

April 17 is the 107th day of the year (108th in leap years) in the Gregorian calendar. There are 258 days remaining until the end of the year.

On this day in 1961, The Bay of Pigs invasion begins when a CIA-financed and -trained group of Cuban refugees lands in Cuba and attempts to topple the communist government of Fidel Castro. The attack was an utter failure.

Fidel Castro had been a concern to U.S. policymakers since he seized power in Cuba with a revolution in January 1959. Castro’s attacks on U.S. companies and interests in Cuba, his inflammatory anti-American rhetoric, and Cuba’s movement toward a closer relationship with the Soviet Union led U.S. officials to conclude that the Cuban leader was a threat to U.S. interests in the Western Hemisphere. In March 1960, President Dwight D. Eisenhower ordered the CIA to train and arm a force of Cuban exiles for an armed attack on Cuba. John F. Kennedy inherited this program when he became president in 1961.

Political Background

On March 17, 1960, US President Dwight D. Eisenhower approved a document prepared by the 5412 Committee (also known as the ‘Special Group’), at a meeting of the US National Security Council (NSC). The stated first objective of the plan began as follows:

   A PROGRAM OF COVERT ACTION AGAINST THE CASTRO REGIME

   1. Objective: The purpose of the program outlined herein is to bring about the replacement of the Castro regime with one more devoted to the true interests of the Cuban people and more acceptable to the U.S. in such a manner to avoid any appearance of U.S. intervention.

The outline plan (code-named Operation Pluto) was organized by CIA Deputy Director for Plans Richard Mervin Bissell, Jr., under CIA Director Allen Dulles. Having experience in actions such as the 1954 Guatemalan coup d’etat, Dulles was confident that the CIA was capable of overthrowing the Cuban government as led by prime minister Fidel Castro since February 1959. The first detailed CIA plan proposed a ship-borne invasion at the old colonial city of Trinidad, Cuba, about 270 km (170 mi) south-east of Havana, at the foothills of the Escambray Mountains in Sancti Spiritus province. Trinidad had good port facilities, it was closer to many existing counter-revolutionary activities, it had an easily defensible beachhead, and it offered an escape route into the Escambray Mountains. When that plan was rejected by the State Department, the CIA went on to propose an alternative plan. On April 4, 1961, President Kennedy then approved the Bay of Pigs plan (also known as Operation Zapata), because it had an airfield that would not need to be extended to handle bomber operations, it was further away from large groups of civilians than the Trinidad plan, and it was less “noisy” militarily, which would make any future denial of direct US involvement more plausible. The invasion landing area was changed to beaches bordering the Bahia de Cochinos (Bay of Pigs) in Las Villas Province, 150 km south-east of Havana, and east of the Zapata peninsula. The landings were to take place at Playa Giron (code-named Blue Beach), Playa Larga (code-named Red Beach), and Caleta Buena Inlet (code-named Green Beach).

In March 1961, the CIA helped Cuban exiles in Miami to create the Cuban Revolutionary Council (CRC), chaired by Jose Miro Cardona, former Prime Minister of Cuba in January 1959. Cardona became the de facto leader-in-waiting of the intended post-invasion Cuban government.

Bay of Pigs: The Invasion

The first part of the plan was to destroy Castro’s tiny air force, making it impossible for his military to resist the invaders. On April 15, 1961, a group of Cuban exiles took off from Nicaragua in a squadron of American B-26 bombers, painted to look like stolen Cuban planes, and conducted a strike against Cuban airfields. However, it turned out that Castro and his advisers knew about the raid and had moved his planes out of harm’s way. Frustrated, Kennedy began to suspect that the plan the CIA had promised would be “both clandestine and successful” might in fact be “too large to be clandestine and too small to be successful.”

But it was too late to apply the brakes. On April 17, the Cuban exile brigade began its invasion at an isolated spot on the island’s southern shore known as the Bay of Pigs. Almost immediately, the invasion was a disaster. The CIA had wanted to keep it a secret for as long as possible, but a radio station on the beach (which the agency’s reconnaissance team had failed to spot) broadcast every detail of the operation to listeners across Cuba. Unexpected coral reefs sank some of the exiles’ ships as they pulled into shore. Backup paratroopers landed in the wrong place. Before long, Castro’s troops had pinned the invaders on the beach, and the exiles surrendered after less than a day of fighting; 114 were killed and over 1,100 were taken prisoner.

Bay of Pigs: The Aftermath

According to many historians, the CIA and the Cuban exile brigade believed that President Kennedy would eventually allow the American military to intervene in Cuba on their behalf. However, the president was resolute: As much as he did not want to “abandon Cuba to the communists,” he said, he would not start a fight that might end in World War III. His efforts to overthrow Castro never flagged-in November 1961, he approved Operation Mongoose, an espionage and sabotage campaign-but never went so far as to provoke an outright war. In 1962, the Cuban missile crisis inflamed American-Cuban-Soviet tensions even further.

Fidel Castro is still Cuba’s symbolic leader today, although his younger brother Raul (1931-) has taken over the presidency and serves as commander in chief of the armed forces.