World Leaders Failed Us, But We Have the Power to End the Era of Fossil Fuels

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Original article by RABBI JACOB SIEGEL republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0). 

Extinction Rebellion climate activists hold a banner in Lincoln’s Inn Fields before a march on November 13, 2021 in London, United Kingdom.  (Photo by Mark Kerrison/In Pictures via Getty Images)

Over 1,600 institutions, including hundreds of faith-based organizations, have now joined the fight to move money away from polluting fossil fuels and toward clean energy solutions—yours should be next.

Last month saw an historic, albeit altogether insufficient, step forward to avoid climate catastrophe.

At the annual global UN-backed climate change conference in Dubai, known as COP28, countries for the first time unanimously acknowledged the necessity of “transitioning away from fossil fuels”: coal, oil, and gas. While short of an endorsement of a full fossil fuel phaseout—what scientists tell us is needed to avert the worst impacts of the climate crisis—it is a milestone, decades in the making.

Yet even this tepid sign of progress faced pushback from fossil fuel executives and the politicians who do their bidding.

The story of COP28 is one of the power and perniciousness of the fossil fuel industry. The CEO of the United Arab Emirates’ oil company (the 12th largest in the world) served as conference chair, and industry lobbyists outnumbered delegates from nearly every country. The final text is full of industry-friendly loopholes, giving fossil fuel corporations leeway to continue to profit off dirty energy.

Trying to address the climate crisis while expanding drilling, mining, and fracking operations is like offering chemotherapy to a lung cancer patient while handing them pack after pack of Marlboro Reds.

It’s clear we are at the end of the fossil fuel era. Solar and wind energy are the cheapest forms of energy to build.

Like tobacco companies before them, fossil fuel corporations have known for years (with shocking accuracy) about the science: their products, when used as directed, would harm the health of the planet and cause widespread devastation. But the industry has time and again blocked significant action or sought to delay it through false promises. They did so again at COP28.

As the future is at stake, it falls to the rest of us to take urgent action. Indeed, civil society institutions are not waiting. Last week marked a major achievement: 1600 institutions across the world representing more than $40 trillion (with a “T”) have now pledged to move money away from fossil fuels and toward clean energy.

Finance represents a critical lever for climate action. Fossil fuel corporations rely on an open spigot of funds – project finance through underwriting and loans from major banks, plus investment capital and approval for continued fossil fuel expansion from investors, including the world’s largest firms, BlackRock and Vanguard.

When investors move their money en masse, fossil fuel corporations face reputational and brand risk that can have knock-on effects, including lower credit ratings and challenges with securing financing for projects and operations. Crucially, doing so also erodes fossil fuel corporations’ social license to expand their operations.

The 1600 institutions that have committed to move their money include groups like the National Academy of Medicine, because profiting from burning fossil fuels violates the medical ethic of “first, do no harm.” They include universities like Brandeis, rooted in Jewish history, experience, and values, whose students and administration recognize the climate crisis as an existential threat to their future.

It’s clear we are at the end of the fossil fuel era. Solar and wind energy are the cheapest forms of energy to build. The market itself is acting on this imperative. Fossil fuels as a sector have performed worse financially over the past decade than the rest of the market. Over the last 30 years, they have shrunk from a quarter of the market to around 5%. According to a recent report, six public pensions could be $21 billion richer if they had ditched investments in coal, oil, and gas a decade ago.

As the future is at stake, it falls to the rest of us to take urgent action.

Faith-based institutions, representing more than a third of the commitments, are at the forefront of this movement for change. As Pope Francis has encouraged, we “must listen to science and institute a rapid and equitable transition to end the era of fossil fuel.”

One year ago, my organization, Dayenu: A Jewish Call to Climate Action, released a report about the investment capital of major Jewish institutions. The report found that these institutions had a substantial opportunity to move more than $3 billion in capital out of fossil fuels and into clean energy, and offered a roadmap to achieve this goal. Since last year, the climate crisis has grown more urgent, and so has the power of our faith and moral voice.

Faith groups are leading. They are making prudent, long-term decisions that will protect their communities. Join us before it is too late.

Original article by RABBI JACOB SIEGEL republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0). 

Continue ReadingWorld Leaders Failed Us, But We Have the Power to End the Era of Fossil Fuels

Local Governments and Grassroots Activists Stop Spate of US Carbon Capture Pipelines

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Original article by Taylor Noakes republished from DeSmog

A metal sign warning of a buried carbon dioxide pipeline in Huerfano County, Colorado. Credit: Jeffre Beall, CC BY 4.0
A metal sign warning of a buried carbon dioxide pipeline in Huerfano County, Colorado. Credit: Jeffre Beall, CC BY 4.0

Players in the carbon dioxide pipeline industry canceled major pipeline projects in recent weeks, marking an inauspicious start to President Biden’s ambitious plans to develop carbon capture infrastructure as a key emissions mitigation tool.

It is welcome news to CO2 pipeline opponents, however, which have included a wide spectrum of interest groups united in their concerns over pipeline safety.

“I think what the cancellation shows is that people have had enough of fossil fuel infrastructure being forced upon them,” said Lorne Stockman, research co-director with Oil Change International. “It doesn’t surprise me that communities are standing up to these projects and occasionally winning.”

Stockman pointed out that the U.S. oil and gas industry has built millions of miles of pipelines, and hundreds of thousands of miles were installed in the last decade and a half as a result of the fracking boom. “There is a general awareness that the age of fossil fuels needs to end and that we need to transition to genuinely clean energy, and not dangerous distractions like carbon capture,” he added.

Navigator CO2 Ventures ended their “Heartland Greenway” carbon dioxide pipeline project on October 20, citing “the unpredictable nature of the regulatory and government processes involved.” The project aimed to capture 15 million metric tons of carbon dioxide from ethanol plants in the U.S. Midwest to be injected and stored underground. Much like the fossil fuel industry — which seeks to use carbon capture and storage (CCS) because they allege it will assist in decarbonizing continued oil production — carbon capture is the primary emissions mitigation tool preferred by the ethanol industry as well.

However, experts point to significant problems with the CCS process, particularly that it has historically been used primarily to pump more oil out of the earth. Burning that oil emits much more CO2 than what is captured, which means the technology wouldn’t represent a feasible solution to address climate change.

Both local and national reporting indicate that the Navigator pipeline proposal attracted the attention of diverse groups of citizens often portrayed as being on opposite ends of the political spectrum. Yet they stood undivided in voicing shared concerns over pipeline safety and possible expropriations via eminent domain.

Navigator’s $3.5 billion Heartland Greenway project called for 1,300 miles of pipeline across five states, with carbon dioxide storage to have taken place in Illinois. Residents in that state were resolutely opposed to the project, largely because of fears related to a pipeline rupture, like the one in Satartia, Mississippi, in February 2020. Nearly 50 people were hospitalized in that disaster, and continue to suffer from adverse health effects. 

The disaster also forced the evacuation of 300 people, after the rupture spewed the odorless, colorless gas into the air for several hours. Carbon dioxide is an asphyxiant, and CO2 poisoning can leave victims disoriented and appearing to be drugged. Left untreated it can eventually lead to cardiac and pulmonary problems. More problematic is the relative rarity of mass CO2 poisoning events, meaning first responders might be unfamiliar with how to treat the symptoms. In addition, first responders — such as those responding to the disaster in Satartia — could be hampered by the engines of their vehicles shutting off in the oxygen deprived environment.

These critical health, safety, and disaster-response issues notwithstanding, it was regulatory and bureaucratic processes that have so far stymied carbon dioxide pipeline and capture projects in the Midwest.

South Dakota regulators denied Navigator’s application to build a section of the pipeline in that state in September. 

The CCS company’s decision to cancel the project is significant for several reasons. 

First, Navigator sought to use eminent domain to force landowners to give up their property, and was unsuccessful. Had these been oil or gas pipelines, the landowners might not have been as successful, because fossil fuel pipelines have generally been considered so fundamentally important to the public good that oil and gas companies can get around the Public Use Clause in the U.S. Constitution’s Fifth Amendment

The company also has some serious financial backers, including Texas-based oil refiner Valero Energy Corp., and the world’s largest asset management company, BlackRock.

Iowa-based Summit Carbon Solutions is also proposing the Midwest Carbon Express, a $5.5 billion, 2,000-mile pipeline network across five states, to sequester carbon dioxide emissions from 34 ethanol plants. The CO2 was to be stored in North Dakota, but state regulators denied Summit Carbon a siting permit in August. Then the South Dakota Public Utilities Commission voted unanimously to strike down the company’s application to build a section of the pipeline network through that state as well. Though other pipeline projects have faced stiff public opposition, authorities denied the application to build this pipeline segment because it would violate county ordinances relating to setbacks and other aspects of the pipeline’s route. Summit has accepted the decision and indicated it would “refine their proposal and refile” for the necessary permits.

The Biden administration promised $251 million for CCS projects in seven states in May, from an estimated $12 billion fund from the Bipartisan Infrastructure Law for carbon management in the United States. Reporting from the Associated Press indicated that the funding announcement was a vote of confidence for what is expected to be a largely industry-driven initiative. The same article revealed that most of the funds have been dedicated to nine existing carbon capture projects, with an aim to sequester 50 million metric tons of carbon dioxide. Though this may seem impressive at first glance, it’s negligible when compared with the 5.5 to 6.3 billion metric tons of CO2 emitted annually in the United States alone. It’s especially insignificant given that most, if not all, of these projects are used for enhanced oil recovery — the injection of carbon dioxide into wells to extract the last remaining amounts of oil for production. 

“Instead of incentivizing a CO2 reduction, the Inflation Reduction Act, along with the Infrastructure Investment and Jobs Act, through their funding of carbon capture, actually incentivize net increases in CO2, air pollution, land use and consumer costs,” said Mark Z. Jacobson, in an editorial published by The Messenger. Jacobson is a  professor of civil and environmental engineering and director of Stanford University’s Atmosphere/Energy Program.

Jacobson identified the Summit project as one that is a direct beneficiary of Biden administration incentives for carbon capture. Noting that no study had determined whether this was an effective or efficient use of public money, Jacobson conducted a study to find out, which was recently published in Environmental Science and Technology. Jacobson compared the anticipated emissions savings and cost of the Summit project, which was intended to provide decarbonized ethanol for use in flex-fuel vehicles, with spending an equal amount on wind farms. The comparison also used two 2023 Ford F-150 pickup trucks for the modeling, as the F-150 is available in both electric and flex-fuel powered variants.

The results were impressive: Compared with the flex fuel-powered F-150, the fully electric version, powered by renewable wind energy, reduced CO2 emissions by 2.4 to four times, and could save drivers tens of billions of dollars – even accounting for the higher cost of the electrically powered F-150. Using wind power would also use 1/400,000 of the land footprint, and would lower air pollution levels, too.

Not only is this better for consumers, the wind and electric vehicle model virtually eliminates CO2 emissions, negating any need for carbon capture, while the ethanol and flex fuel model, even with carbon capture, would still result in a net CO2 increase.

Watchdogs argue carbon capture is being presented to the public as part of the government’s decarbonization efforts, despite being consistently proven to be incapable of reducing CO2 at the scope and scale necessary for climate change mitigation.

“Carbon capture started as a means to enhance oil production,” said Stockman. “It was not developed to address climate change.”

He pointed out that CO2 must be separated from methane in gas processing plants to meet market requirements for gas, and in most cases, it is vented into the atmosphere. In 1972, a plant at the Sharon Ridge oilfield in Texas was designed to capture CO2 from a particularly CO2-rich source of gas. Engineers wanted to see if pumping it into declining oil wells would help squeeze more oil out and make more money, Stockman said. “It worked, and that has been the model for CCS ever since.”

Stockman said that most attempts to use carbon capture and storage to reduce emissions from power plants have failed or been found to be too costly to pursue. 

“The most notable success that CCS can claim is how successfully it has been used to convince politicians that it will one day be able to reduce emissions and, therefore, should be supported with public money,” he noted. 

“It’s been very successful in capturing public money, which is a testimony to the long history of ‘state capture’ that the oil and gas industry has enjoyed in the U.S.,” he added, referring to Big Oil’s pressure on governments to secure public funding for their projects.

“Large budgets for lobbying and campaign finance have helped the industry maintain subsidies and tax credits, some of which have been around for many decades,” Stockman said. “The 45Q tax credit for carbon capture and EOR [enhanced oil recovery] is just the latest in this long history.”

The ethanol industry is expecting demand to decline in coming years, as recently reported by S&P Commodity Insights. Producing ethanol with CCS would meet some government and industry standards for lowering carbon intensity fuels. 

However, experts and analysts routinely point out the capturing and transport process is itself carbon intensive, to the point of negating whatever positive effects sequestration might provide. Jurisdictions like California, Washington state, and the Canadian province of British Columbia could still be viable markets for low carbon intensity ethanol. There is also the possibility of using ethanol as a sustainable aviation fuel, but it all hinges on developing the infrastructure to sequester the carbon dioxide emitted during production. 

Even if current pipeline projects have been canceled or shelved, there’s still considerable industry interest and incentive in finding a way to make the projects work.

Stockman urges caution before activists take a victory lap.

“I think folks need to be aware that while they have succeeded in the Midwest, communities in Texas and Louisiana are facing an overwhelming surge in gas, LNG, and CO2 infrastructure,” he said. “Both states have very oppressive legislation in place against protest and opposition to fossil fuel infrastructure, and these communities need our support, as their fight is much harder.” 

Original article by Taylor Noakes republished from DeSmog

Continue ReadingLocal Governments and Grassroots Activists Stop Spate of US Carbon Capture Pipelines

Reports Expose US Billionaires and Corporate Profiteers Enabling Israel’s War on Gaza

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Original article by JESSICA CORBETT republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).

Zionist president Joe Biden. 27 July 2021 image by Official White House Photo by Adam Schultz. Original public domain image from Flickr
Zionist president Joe Biden. 27 July 2021 image by Official White House Photo by Adam Schultz. Original public domain image from Flickr

“As the Biden administration attempts to deny the death toll of Israel’s campaign of mass murder in Gaza and sell genocide as a stimulus for the U.S. economy, these are the death merchants profiting from the war machine.”

With more than 7,300 Palestinians killed so far in Israel’s three-week bombardment of Gaza, a series of reports this week have exposed how U.S. weapon-makers and billionaire donors are enabling what legal scholars say could amount to genocide.

After Israel declared war in response to Hamas killing over 1,400 Israelis and taking around 200 hostages, the stocks of major American and European war profiteers soared. A Thursday report from Eyes on the Ties—the news site of LittleSis and Public Accountability Initiative—targets five U.S. firms with a record of providing weaponry to Israel.

The outlet stressed that while announcing a supplemental funding request that includes $14.3 billion for Israel, U.S. President Joe Biden last week “invoked ‘patriotic American workers’ who are ‘building the arsenal of democracy and serving the cause of freedom,’ but it’s the defense company CEOs who rake in tens of millions a year, and Wall Street shareholders, who are the real beneficiaries of warmongering.”

The five targeted industry giants collectively recorded $196.5 billion in military-related revenue last year, Eyes on the Ties reported. They are Boeing ($30.8 billion), General Dynamics ($30.4 billion), Lockheed Martin ($63.3 billion), Northrop Grumman ($32.4 billion), and RTX, formerly Raytheon ($39.6 billion).

“The top shareholders in these five defense companies largely consist of big asset managers, or big banks with asset management wings, that include BlackRock, Vanguard, State Street, Fidelity, Capital Group, Wellington, JPMorgan ChaseMorgan Stanley, Newport Trust Company, Longview Asset Management, Massachusetts Financial Services Company, Geode Capital, and Bank of America,” the news outlet noted.

Eyes on the Ties also highlighted how chief executives are handsomely compensated—and the CEOs’ ties to Big Pharma, the fossil fuel industry, Wall Street, and foreign policy think tanks such as the Council on Foreign Relations and Center for Strategic and International Studies.

According to the report:

  • Boeing CEO David Calhoun took in over $64 million in total compensation from 2020-22 and as of February held 193,247 shares;
  • General Dynamics CEO Phebe N. Novakovic took in over $64 million in total compensation from 202-22 and as of March held 1,616,279 shares;
  • Lockheed Martin CEO Jim Taiclet took in over $66 million in total compensation from 2020-22 and as of February held 56,054 shares;
  • Northrop Grumman CEO Kathy J. Warden took in over $61 million in total compensation from 2020-22 and as of March held 161,231 shares; and
  • RTX CEO Gregory J. Hayes took in over $63 million in total compensation from 2020-22 and as of February held 801,339 shares.

Other reporting this week has taken aim at those CEOs for their suggestions that Israel’s assault on Gaza is good for business.

During Lockheed Martin’s latest earnings call, Taiclet correctly predicted Biden’s request last week, saying that “there continues to be the option… for supplemental requests related to support Ukraine, Israel, and potentially Taiwan.”

In addition to the request for Israel—which already gets nearly $4 billion in annual U.S. military aid—Biden asked for $4 billion to counter Chinese influence in the Indo-Pacific region and $61.4 billion more for Ukraine, which is battling a Russian invasion.

“We are all witnessing significant geopolitical tensions across the globe, including the ongoing war in Ukraine and the horrific attacks in Israel,” Warden said during Northrop Grumman’s Thursday earnings call, according toVICE. “As we saw last week, the [Biden] administration continues to make supplemental requests for urgent needs, including those in Ukraine and Israel, to include investments in weapons systems and defense industrial base readiness.”

As The Lever reported:

“The Israel situation obviously is a terrible one, frankly, and one that’s just evolving as we speak,” said Jason Aiken, chief financial officer and executive vice president at General Dynamics, on Wednesday. “But I think if you look at the incremental demand potential coming out of that, the biggest one to highlight and that really sticks out is probably on the artillery side.”

He continued: “Obviously that’s been a big pressure point up to now with Ukraine, one that we’ve been doing everything we can to support our Army customer. We’ve gone from 14,000 rounds per month to 20,000 very quickly. We’re working ahead of schedule to accelerate that production capacity up to 85,000, even as high as 100,000 rounds per month, and I think the Israel situation is only going to put upward pressure on that demand.”

Last week, roughly 100 activists gathered outside of General Dynamics’ weapons plant in Pittsfield, Massachusetts, to protest the Israeli war, holding signs with slogans like, “Genocide: Brought To You By General Dynamics.”

Both The Lever and VICE also pointed out that during RTX’s Tuesday call, Hayes started by “acknowledging the tragic situation playing out in Israel” before turning to “an update on our end markets.”

If Congress approves Biden’s request for Israel, VICE explained, “some of the money would be used to restock Israel’s Iron Dome rocket defense system, which RTX manufactured.” Hayes said: “I think really across the entire Raytheon portfolio, you’re going to see a benefit of this restocking. On top of what we think is going to be an increase in [U.S. Department of Defense] top line.”

It’s not just defense executives enabling Israel’s mass slaughter of civilians in Gaza. As Eyes on the Ties reported, “Lobbying groups including the American Israel Public Affairs Committee (AIPAC) and Democratic Majority for Israel have been active in Washington, calling on lawmakers to send money and weapons to Israel.”

The report names some billionaire donors to the lobbying groups, including New England Patriots and the Kraft Group CEO Robert Kraft, private equity investor Marc Rowan, venture capitalist Gary Lauder, hedge fund managers Daniel Loeb and Paul Singer, and Home Depot co-founder Bernard Marcus, who is also the founding president of the Israel Democracy Institute.

U.S. Rep. Summer Lee (D-Pa.) said Wednesday that Americans “know that funneling billions more dollars into arms dealers’ pockets won’t keep our children safe from weapons of war at home or across the world. It won’t keep our loved ones safe from toxins in our air and drinking water. They know that lining the pockets of weapons manufacturers won’t help families struggling to afford housing, medicine, or grocery costs. They know defense contractors won’t safeguard Medicare and Social Security or shield our communities against the climate crisis.”

Unlike the CEOs of firms like Lockheed Martin and RTX, “moms who can’t afford childcare, young folks who can’t pay off their debt, veterans who can’t keep up with housing costs, and children who go to school hungry don’t have million-dollar lobbying budgets,” added Lee, one of the few members of Congress pushing for a cease-fire in Gaza. “So it’s up to us to stand up for their needs.”

Original article by JESSICA CORBETT republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).

Continue ReadingReports Expose US Billionaires and Corporate Profiteers Enabling Israel’s War on Gaza

Climate activists kick off rallies against fossil fuel in week of action in New York

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https://www.theguardian.com/us-news/2023/sep/14/climate-activists-protests-fossil-fuels-united-nations

Protests were a preview of planned marches in the city ahead of United Nations’ climate ambition summit on 20 September

Progressive lawmakers and climate activists rallied at the Capitol on Thursday to demand an end to fossil fuel usage, previewing a planned march in New York on Sunday ahead of the United Nations’ climate ambition summit on 20 September.

“Clearly, saving the planet is the most important issue facing humanity,” the Democratic senator Jeff Merkley of Oregon, said. “But here’s the ugly and brutal truth: right now, humanity is failing. The planet is crying out for help.”

The rally was one of more than 650 global climate actions taking place this week in countries including Bolivia, Pakistan, Ethiopia and Austria.

In New York, dozens of activists protested outside of the headquarters for asset manager BlackRock and Citibank on Wednesday and Thursday respectively, to call attention to both firms’ investments in fossil fuels.

The mobilizations are set to culminate with the March to End Fossil Fuels in New York City on Sunday, 17 September, which has been endorsed by 400 scientists and 500 organizations, including the NAACP, the Sierra Club and the Sunrise Movement. Organizers have predicted the event, which aims to convene tens of thousands of activists from across the country and around the world, will be the largest climate march in the US in five years.

https://www.theguardian.com/us-news/2023/sep/14/climate-activists-protests-fossil-fuels-united-nations

Continue ReadingClimate activists kick off rallies against fossil fuel in week of action in New York

‘We Are Not Taxing the Very Wealthy Enough’: Runaway Inequality About to Get Worse

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Original article by Jake Johnson republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).

People participate in a “march on billionaires” event on July 17, 2020 in New York City.
(Photo: Spencer Platt/Getty Images)

“Americans overwhelmingly prefer raising taxes on the ultra-wealthy and huge corporations to making cuts to critical programs like healthcare, medical research, and infrastructure,” said Sen. Elizabeth Warren.

The United States’ astronomical levels of economic inequality are poised to become further entrenched in the coming years as what The New York Timesdescribed Sunday as “the greatest wealth transfer in history” gets underway, with the richest members of the Baby Boomer generation set to pass trillions of dollars in assets on to their descendants—often paying little or nothing in taxes.

“Most will leave behind thousands of dollars, a home, or not much at all. Others are leaving their heirs hundreds of thousands, or millions, or billions of dollars in various assets,” the Times reported. “Of the $84 trillion projected to be passed down from older Americans to millennial and Gen X heirs through 2045, $16 trillion will be transferred within the next decade.”

The newspaper added that thanks to the loophole-ridden U.S. tax system, “heirs increasingly don’t need to wait for the passing of elders to directly benefit from family money, a result of the bursting popularity of ‘giving while living‘—including property purchases, repeated tax-free cash transfers of estate money, and more—providing millions a head start.”

“The trillions of dollars going to heirs will largely reinforce inequality,” the Times observed. “The wealthiest 10% of households will be giving and receiving a majority of the riches. Within that range, the top 1%—which holds about as much wealth as the bottom 90%, and is predominantly white—will dictate the broadest share of the money flow. The more diverse bottom 50% of households will account for only 8% of the transfers.”

Don Moynihan, a professor at Georgetown University’s McCourt School of Public Policy, argued that the Times analysis further demonstrates that “we are not taxing the very wealthy enough.”

The Times noted that individuals in the U.S. can pass nearly $13 million in assets to heirs without paying the federal estate tax, which only applies to around two of every 1,000 American estates.

“As a result, although high-net-worth and ultrahigh-net-worth individuals could inherit more than $30 trillion by 2045, their prospective taxes on estates and transfers is $4.2 trillion,” the Times observed.

The explosion of wealth inequality in the U.S. over the past several decades has prompted growing calls for systemic reform but little substantive action from lawmakers. In 2017, congressional Republicans and then-President Donald Trump contributed to the inequality boom by ramming through tax legislation that disproportionately benefited the wealthiest Americans.

Now in control of the U.S. House, Republicans are trying to make the Trump tax cuts for individuals permanent and eliminate the estate tax altogether—a move that would give the nation’s wealthiest households another $2 trillion in tax breaks.

In April, Sen. Bernie Sanders (I-Vt.) led several of his colleagues in offering an alternative proposal: Legislation that would impose progressively higher taxes on estates worth between $3.5 million and $1 billion, as well as a 65% levy on estates worth more than $1 billion.

“At a time of massive wealth and income inequality, we need to make sure that people who inherit over $3.5 million pay their fair share of taxes,” Sanders said last month. “We do not need to provide a huge handout to multi-millionaires and billionaires. It is unacceptable that working families across the country today are struggling to file their taxes on time and put food on the table, while the wealthiest among us profit off of enormous tax loopholes and giant tax breaks.”

Sen. Elizabeth Warren (D-Mass.), a co-sponsor of Sanders’ legislation, tweeted Monday that “Americans overwhelmingly prefer raising taxes on the ultra-wealthy and huge corporations to making cuts to critical programs like healthcare, medical research, and infrastructure.”

“Congressional Republicans need to get on board,” the senator added.

Morris Pearl, a former managing director at the asset management behemoth BlackRock and the chair of the Patriotic Millionaires, stressed in an interview with the Times that structural changes to the U.S. tax code—not just a crackdown on wealthy tax cheats—are necessary to slow the rise of inequality.

“People are following the law just fine. I generally don’t pay much taxes,” said Pearl, whose group has warned that democracy “will not survive” unless the rich are taxed much more aggressively.

Stressing the ease with which rich families in U.S. are able to pass assets on to their heirs tax-free, Pearl told the Times that he currently holds stock that his wife’s father, “who died a long time ago, bought in the 1970s,” an investment that “has gone from a few thousand dollars to many hundreds of thousands of dollars”—unrealized capital gains that are not subject to taxation.

University of California, Berkeley economists Emmanuel Saez and Gabriel Zucman have estimated that $2.7 trillion of the $4.25 trillion in wealth held by U.S. billionaires is unrealized.

“I’ve never paid a penny of taxes on all that,” Pearl said of his inherited equities, “and I may not ever, because I might not sell and then my kids are going to have millions of dollars in income that’s never taxed in any way, shape, or form.”

Original article by Jake Johnson republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).

Continue Reading‘We Are Not Taxing the Very Wealthy Enough’: Runaway Inequality About to Get Worse