Monday, December 16, 2013

Nothing more delicious than a smackdown of Robert Reich

He has to be on anybody's list of the most repugnant columnists in the US or Europe writing today.  (Other contenders - and this could become a time-consuming parlor game: Joan Walsh, Paul Krugman, Sally Kohn.)

He recently lit into America's wealthy for - get this - their private, voluntary charitable contributions.  It did not go unnoticed by NRO's Kevin Williamson.  He begins his piece by looking at why envy is the tawdriest of the seven deadly sins:

To be possessed by envy is to admit a humiliating personal inadequacy: We do not envy others those attainments that we think we too might achieve, but those we despair of ever possessing. Wrath, greed, pride, lust — all assume a certain self-possession. Sloth and gluttony are practically standard issue in times of plenty such as these. Wrath and pride are the sins of great (but not good) men. Envy is the affliction of the insignificant. It is the small man’s sin.

And then he shows how Reich is all about envy:

 . . . he scoffs that America’s rich philanthropists are phony and self-serving, investing too much in opera and ballet and fancy colleges, and too little in feeding the hungry and housing the homeless. He particularly resents the fact that our tax code encourages such giving, with deductions that reduced federal revenue by some $39 billion last year — federal revenue that could have gone toward employing men such as Robert Reich.This calls to mind Edmund Spenser’s description of Envy personified: “He hated all good works and virtuous deeds / And him no less, that any like did use / And who with gracious bread the hungry feeds / His alms for want of faith he doth accuse.”
Professor Reich being Professor Reich, you can guess how his argument unfolds. (If you have read one Robert Reich column, which is one too many, you have read them all.) He writes: “As the tax year draws to a close, the charitable tax deduction beckons. America’s wealthy are its largest beneficiaries. According to the Congressional Budget Office, $33 billion of last year’s $39 billion in total charitable deductions went to the richest 20 percent of Americans, of whom the richest 1 percent reaped the lion’s share.” It goes without saying that he makes no attempt to compare the apportionment of charitable tax deductions with charitable donations — that would only complicate things and invite an unpleasant encounter with reality. 

For a sense of perspective, consider that that $39 billion in tax deductions was associated with $316 billion in charitable donations. Our innumerate class warriors dismiss philanthropy as a complicated tax dodge for the rich, but in fact tax deductions amount to about 12 percent of total charitable donations, meaning that our wily robber barons have figured out a way of beating the taxman by . . . giving away far more money than they receive in related tax benefits. Even if Professor Reich got his way on tax rates and they went up to 90 percent at the top, you still don’t come out ahead by giving away money.
Beyond stealing altar offerings from the almighty god of revenue, our philanthropists offend Professor Reich’s sensibilities in another way: They don’t give to the sort of enterprises he wants them to give to. “A large portion of the charitable deductions now claimed by America’s wealthy are for donations to culture palaces — operas, art museums, symphonies, and theaters — where they spend their leisure time hobnobbing with other wealthy benefactors. . . . These aren’t really charities as most people understand the term. They’re often investments in the life-styles the wealthy already enjoy and want their children to have as well. Increasingly, being rich in America means not having to come across anyone who’s not.” Unsurprisingly, Progressive America’s favorite non-economist-who-plays-an-economist-on-TV does not bother to document what he means by “a large share.” Giving to art-and-culture organizations amounted to just over $14 billion in 2012, or about 4.5 percent of charitable contributions, far less than was given to health, human-services, or public-benefit organizations. There are a fair number of single organizations that run into the billions per year, including YMCA ($6.24 billion), Goodwill Industries ($5 billion), Catholic Charities ($4.4 billion), and the Red Cross ($3.12 billion).

Williamson points out two very ironic facts about charitable giving in America: guys like Reich may ry to characterize arts-and-culture giving as acts of snobbery, but they get downright self-congratulatory when the government puts up tax money for such things, and the much-despised Koch brothers give one hell of a lot to the nation's arts-and-culture sector:

If spending on art, music, and culture is self-serving when private citizens do it, what is it when government does it? Essential, necessary, crucial — of course. The New York City Department of Cultural Affairs by itself spends some $150 million a year on precisely that sort of thing. The state spends dozens of millions more. A good deal of that money goes to subsidizing theater, including big-ticket theater. In my role as a theater critic, I am constantly surprised by how many shows selling tickets for north of $100 are publicly subsidized. It isn’t huge money — without public support for the Manhattan Theater Club, that $120 ticket to see Laurie Metcalf in The Other Place (excellent, be sorry if you missed it) might have been $125 instead. But it adds up: a few dozen millions from the state, a hundred million from the city, a billion and a half from Washington.
Try cutting a piece of that and you’ll hear howls about how vital every farthing spent in the service of culture is. Unless you’re David Koch, in which case it’s “Thanks for giving the New York ballet a nice place to perform, now please die.” I wonder how many New York balletomanes know that the David Koch in the David Koch Theater is that David Koch. Perhaps it is the urge to put one’s name on things that so offends Professor Reich and his colleagues at the Richard and Rhoda Goldman School of Public Policy.

Begrudging others their wealth is pretty much the long and the short of One-Note Robert's putrid career.
 


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