Journalists From San Francisco

"This book is about the many ways that corporations extract from you... extra nickels—which add up to thousands of dollars. Many of the mechanisms require the government's cooperation; some... the result of seemingly disconnected sources; others are hidden in plain site. ...It's in the fine print."

"[T]wo income households... Lots and lots of women are out there working at jobs that pay minimum wage or $8 an hour. ...[T]he result of the falling wage structure in this country is that the average family with children does 1,000 hours more paid labor today than it did back in the early '70s. ...That's working essentially half of the year. ...[M]arried women with children have often worked throughout history. A Christmas job, a Saturday job. They had what we used to call pin money, but they were not fundamental bread winners, and there are costs associated with this. We have costs for daycare [etc.]"

"has a marketing deal with , and Verizon has joint marketing deals with , Cox and Time Warner. This is not competition but ization. The losers... are the consumers, who will pay higher prices for lower-quality service."

"One of the sneakier tricks the telephone giants are pulling is to get state caps on prices lifted on the claim that they will not be raising prices, but lowering them. ...California regulators lifted the price caps... Some prices were raised as much as 600 percent..."

"By deciding not to implement a rule to reduce the chances of truck drivers and train engineers' falling asleep on the job, Trump's Transportation Department has put at risk the lives of those workers as well as the lives of families traveling on our nations highways and trains. And Trump appointed to the Supreme Court Neil Gorsuch, a judge who ruled that a company has the right to fire a worker who chose not to freeze to death on the job."

"[T]hroughout his adult life Trump sought out—and worked closely with—more than a score of criminals, including Mafia associates, Russian mob associates, violent felons, con artists, swindlers, and most significant of all, the embezzler and mob associate Joseph Weichselbaum, a thrice-convicted felon. ...[W]hen Trump was the big man in Atlantic City, he got his helicopters to bring his high-rollers in and out of town through a company formed by Weichselbaum. ...Spy ...reported that Weichselbaum ...personally piloted the Trumps [in the Ivana, Trump’s personal helicopter]. ...Weichselbaum also had another business: importing drugs from Colombia..."

"Almost two cents of every dollar reported as losses one year by everyone in the United States, were reported by Donald Trump. ...He's a terrible business man. His business model is not to get an enterprise, to nurture it, to grow it, to make it more profitable over time. His business model is the same as a mob bust-out. ...[S]queeze all the cash out... don't pay your vendors, try to cheat as best you can your employees, don't pay the bankers... Trump once said, "I borrowed money knowing I wouldn't pay it back," and then leave the carcass and go on to the next deal. ...Trump's business model is to rip off one person after another who gets involved with him, thinking he will make them wealthy, while he is destroying their wealth."

"No serious coverage of taxes is possible without reading the journal Tax Notes published by , a nonprofit enterprise whose beneficiaries include reporters."

"[S]ound bytes of politicians in both parties bear as much connection to the reality of the tax system as my... grandson's belief in Santa."

"[O]ur tax system now levies the poor, the middle class and even the upper middle class to subsidize the rich..."

"[T]he majority of Americans are being duped into supplementing the incomes and extravagant lifestyles of the rich and powerful. ...[O]ur current tax system is manipulated for profit by the wealthy and well positioned."

"Democrats and Republicans alike have turned the tax system into a vehicle not just to finance government but to finance social change. For the last three decades, it... has been weighing down the already deep pockets of the super rich while just weighing down everyone else."

"[P]residents of companies have gone from apologizing when they had to lay off workers to boasting of the riches... obtained through mass firings. ...[I]nvestors ...owe their wealth ...to buying companies in deals that required destroying lives and careers"

"[R]ailroads are by far the most deadly form of commercial transportation in the country. ...Measure deaths by distance traveled... and trains are 52 times more deadly than trucks. Trains kill 130 people per 100 million miles traveled, compared with 2.5 deaths in big-rig truck accidents and 1.9 deaths in plane crashes."

"Inflation, combined with the end of real growth in wages beginning in 1973, created... "bracket creep" that moved people into higher tax brackets even if... real incomes were unchanged."

"Throughout his writings Smith warned of the damage done when government interferes in the market by guaranteeing profits or by handing out gifts. This damage can exceed that caused when government taxes unwisely or imposes rules that needlessly obstruct commerce."

"To pay for World War I... [t]he estate tax and the gift tax, which apply to wealth, were expanded and the income tax came to apply to a larger, but still minute, percentage of Americans."

"After the Sixteenth Amendment... the federal government... enacted a regime to tax incomes, gifts and estates... with the explicit promise that the basic means of sustaining life would not be taxed. The original tax regime applied only to the economic elite, to... "surplus" incomes. ...[I]ncome from capital was taxed more heavily ...in the belief that it was morally offensive to take more from money earned by the sweat of one's brow ..."

"While only a minority of people was taxed during World War II, the politicians got a taste of the huge revenues... by expanding the tax base. After the war... the income tax was steadily expanded until it applied to most Americans..."

"[L]ess than a century after its adoption, the tax system is being turned on its head. Since at least 1983 it has become the explicit, but unstated, policy... to let the richest Americans pay a smaller portion of their incomes in taxes and to defer more of their taxes... a stealth tax cut, while collecting more in taxes from... the middle class."

"Of each dollar people earned in 2005, the top 10 percent got 48.5¢... the greatest share of income pie since 1929, just before the collapsed into the Great Depression."

"This growing concentration of income at the top... resembles the distribution of income found in three other major countries: Brasil, Mexico, and Russia. ...They all have growing, and seemingly intractable, poverty at the bottom. ...These four countries are also societies in which adults have the right to vote, but real political power is wielded by a relatively narrow, and rich, segment of the population."

"In the past quarter century... new rules... have weakened and even destroyed consumer protections while increasing the power of the already powerful. ...[T]he rules affecting who wins and who loses economically have been quietly and subtly rewritten."

"The rich and their lobbyists have taken firm control of the levers of power in Washington and state capitals while remaking the rules in their own interest. They have also imbued private organizations with the power to make rules that few outside the process understand. These same people... [are] the primary source of campaign donations that put politicians in office and keep them there."

"To the addicted, money is like cocaine: Too much is never enough."

"At the same time that the rules have been rewritten to favor the already rich, new rules have been written that ensure harsh treatment for the poor... Coping with the foul effects of poverty costs us trillions of dollars a year... Poverty wastes minds and spirits, robbing all of us of opportunity. ...It makes us less trusting, less willing to see ourselves as one people..."

"The result? In the past 25 years, one American family in seven has sought refuge in federal bankruptcy court. Exhaustive research by Elizabeth Warren... and her associates... has proven that the vast majority of people seek refuge... after any two of three events combine: divorce, job loss, or major medical problems."

"The impulse to increase profits can blind men to risk, especially when those at risk are strangers. Society imposes rules on corporate behavior to protect public safety in the face of baser impulses. These rules require enforcement..."

"In 2006 the trade deficit with China reached $232 billion. ...more than $60 per month for every man, woman and child in America. ...In 2004 when the trade deficit... was $161 billion, it was... more than the $126 billion of income taxes paid by the bottom 75% of Americans."

"Economists have a term for situations in which someone gets rewards but has little or no incentive to avoid risk: a '. ...Those who occupy the executive suite and gamble millions of dollars on the lives of others are rarely seen as engaged in morally hazardous conduct. Yet reward without risk is a form of moral hazard that blinds us to the consequences of our acts."

"In 2006... China, Japan, Canada, and Mexico—accounted for 60 percent of our worldwide trade deficit of $764 billion."

"A lot of people look at the world as they're born into it and assume, like Dr. Pangloss that it must needs be that this is the way that God intended the world to be. It is nowhere written down that we will have our liberties, that we will have the freedoms that we have come to know."

"[O]ne of the great geniuses of our Constitution was the recognition that the liberties of the people depended on a certain set of standards. ' being a crucial one, the ability to speak your mind, the ability to follow or not follow religion as you chose... [W]hen we put these in place, we had this flourishing society. It's not perfect. We've got lots of things wrong in our society. Government has problems... but there is no civilization, there is no liberty, without government."

"[T]o the extent that people have said... "I don't care what the government's doing..." politicians fall under the influence of other people... in our age they have fallen heavily under the influence of their [political] donors. ...We have a government that is increasingly estranged from the needs of the people, and focused on the needs of the moneyed people and large corporations."

"One of the criticisms I've... gotten is "You're a reporter, what are you doing writing with a moral tone?" ...[Y]es, this is a book about political culture and morality. I cite , the Bible and as moral authorities in this book. ...Andrew Mellon says that people are more important than capital and people have to be thought of first, not capital... that's not our culture today. All throughout the Bible, the most frequently denounced evil is taking from the poor to give to the rich. The Bible tells us in both books that your society will come to ruin if you do this."

"Balzac said 200 years ago that "behind every great fortune lies a crime," but we know how to create wealth now: the Industrial Revolution created wealth, the and our ability to manipulate cyberspace, and to develop concepts and structures in mathematics, and elsewhere. We can create real wealth. So, per say, being wealthy is now not the result of taking from those with less; and yet this historic problem has come roaring back... under the guise of conservatism."

"So we didn't get less government... that we were promised. Next we were told we should have deregulation. There's no such thing as deregulation. Everything has rules. ...What we got were new regulations... written by and the railroads and the banks, and they eliminated [or reduced] consumer protections. They took away enforcement of the existing laws. They benefited this political donor class, who were pursuing their own self-interest."

"I don't have any problem with people pursuing their own self-interest. It's just [that] there has not been a push-back from the rest of society, as we have seen unions, which helped push back, decline; and other areas where there was push-back, decline. The... churches were involved with this, and we've seen them decline."

"The ... is... fundamental to the American Revolution and it is taught the wrong way in American schools. ...There's a wonderful book called The Boston Tea Party by Professor [Labaree]... where he... got the British records... and the American records. ...It was a protest against a ...a government tax favor to the politically connected friends of King George who owned this royal monopoly, The East India Company. They mismanaged it because... in a competitive environment managers who can't run the business are gotten rid of, or they go out of business. But in a monopoly you can mismanage for a long time, and the same thing with a and an , where there's a... scintilla of competition among a few firms. ...[T]hey were going to go bankrupt because they had all this tea that they couldn't sell, and they were going to replace a market in Boston... 7 out of 10 cups of tea drunk in November and December of 1773 were Dutch tea, but under this law that was being protested, there would be a monopoly, and only British tea could be drunk. ...[P]eople understood that ...would ...mean higher prices ...less competition ...If we have such a fundamental misunderstanding of how the country got started, then we're going to have fundamentally flawed policies that flow out of these myths."

"[A] lot of what I've been writing about in Free Lunch and... Perfectly Legal and the 13 years of stories I've been doing in The New York Times are about... a growing disconnect between our political and cultural mythology, and how the economy actually works. ...[A]ll societies have to operate from myths. You have to have a shorthand for your culture, but ours is getting disconnected from reality."

"One of the stories that I tell in Free Lunch when I talk about the hedge fund business in the United States and the hedge fund managers who pay taxes at the same rate as janitors... a 15% tax rate on their incomes... The average hedge fund manager in 2006, remember the hedge fund managers keep telling us that if you raise our taxes the whole economy be negatively affected, said that it was not fair to have them pay more than a 15% rate. Of course, school teachers and reporters pay 25% or 31%. Well-to-do Americans pay 35% and... the top hedge fund manager's average income was only $11 million... a week! But they can't afford the taxes."

"If you go... to the big stadiums where we are subsidizing commercial sports, $2 billion a year taxpayer subsidies to baseball, basketball, football and hockey. All the new facilities have these luxury boxes. Most of them are owned by companies, almost all of them are, which are a tax deductible expense. You want to buy a ticket to a baseball game, you pay with your after-tax dollar. People in the luxury box, this is a business expense because they're entertaining clients, and so you're subsidizing this because they're getting a deduction, and... the subsidy payments that you're making for these new stadiums are being used also to create private walkways, so that the wealthy that go to these boxes don't have to mingle with the likes of you and me, and we're the ones who are putting up the money so that they don't have to be with us!"

"This practice of borrowing is a practice that in the long run will make us less wealthy. The practice of spending money we don't have inherently, in the long run, has to make you less wealthy, unless you're spending it for things that add value to your society. So if you're borrowing to build... the Erie Canal, the Interstate Highway system, to educate young people so that their productive minds will make more value in the future, you're making an investment in the future. That's not what we're doing with our borrowing. We're... simply spending money we don't have today... transferring enormous amounts of money to big corporations and wealthy individuals."

"As taxpayers we gave one of Warren Buffet's companies, in 2006, an interest-free loan of $665 million dollars, and he only has to pay half of it back 28 years from now. ...Imagine ...you bought a house in 1980 at the price in 1980. Up until now [2009] you haven't made any payments on the house, and this year you have to pay half in the... dollars you agreed to back then, no adjustment for inflation. Do you think that alone might make you a wealthy man?"

"[O]ne of the fundamental changes that's taken place is more and more coverage of controversies instead of issues."

"For almost three decades corporate profits have been growing one third faster that corporate taxes."

"I have encountered I don't know how many people who have...written to me... about how we have the strongest economy in history. No we don't, and nobody who knows the numbers would say something like that, but you could easily get that impression... from watching just television news, and listening to the president repeatedly tell us what a strong economy we have, when it's just not true."

"Whether you love or hate Ronald Reagan, he was a great leader. He really fundamentally changed America."

"I don't think Mr. Reagan intended what happened. ...Mr. Reagan had a clearly defined set of values, but what we got was not conservative. What we got were radical changes that have... turned out to work to our detriment."

"[F]or the past quarter century, policies adopted in the name of Adam Smith... that supposedly strengthen the invisible hand guiding the market, have weighed down our economy while simultaneously stuffing the pockets of those among the rich and powerful who solicited them or... were just standing in the right place at a lucrative time. This is our story, not of one free lunch, but of the many banquets at which billions and billions of your dollars are being served to the richest among us."