“This deliberate fraud — because that’s what it has to be — is an example of the reasons knowledgeable people don’t trust the Tax Foundation.”
~ Paul Krugman, Stocks, Flows, and Fuzzy Math
On tax issues, a regularly cited source is the Tax Foundation. Someone mentioned it to me recently. I’d heard of it before, but curiosity led me to look into it.
It’s a right-wing think tank. But it is also well respected by many in the mainstream. Its right-wing bias is inseparable from its mainstream bias. It was founded on a predetermined conclusion and has been dedicated ever since to confirm that bias. It has a single purpose, to justify the status quo of wealth and power and to further the agenda of the ruling elite. As such, it presents itself as neutral, for it is well within the mainstream — that is in terms of the dominant centers of corporate influence and political opinion, and indeed it is based in Washington, DC. Only in that sense is it non-partisan, as it sometimes gets described.
According to SourceWatch, the Tax Foundation “is the oldest non-profit tax think tank in the country, founded in 1937”. It has ties to other right-wing organizations, corporate interests, funding sources, and individuals: American Legislative Exchange Council (ALEC), Koch Foundation, Earhart Foundation, PricewaterhouseCooper, Eli Lilly, etc. It’s a part of an ever growing and ever shifting web of special interest, lobbyist, and front groups that have been seeking to shape public opinion and influence politics for about a century now.
As RationalWiki colorfully explains,
The Tax Foundation is a
non-partisan wingnut (un)think tank which publishes slanted economic papers about politically charged issues to push a libertarian perspective. The Foundation was founded by and for corporate interests by its own admission, and advocates global warming denialism, tax protester theories about the legality of taxation, and other neoconservative talking points. Many of their reports have been thoroughly debunked by economists, and even by popular outlets like Forbes.
None of this is surprising. It’s a standard propaganda operation. One interesting thing about it is that it’s so old, having been founded almost 80 years ago. It shows how little has changed over time. You have to give the Tax Foundation credit for being so consistent for so long.
What really caught my attention was the year it was started, 1937. That was slightly less than two decades after the ending of World War I. Also, it was two years before the beginning of World War II and four years before the United States officially entered the war, after the bombing of Pearl Harbor. This interwar period was a time of restructuring and growth, and national interests were given primacy. It was a moment of temporary peace, although also a time of struggle and sacrifice. It was paid for with increasing taxes.
In the years following Franklin D. Roosevelt’s 1933 election to the presidency, the Great Depression waned and a recovery followed. The Great Depression had a major impact worldwide and, besides, many countries were still rebuilding after the catastrophe of World War I. FDR’s New Deal was one response. Another popular response in Europe was fascism. Both included elements of corporatism, in seeking to align private interests with the public good, although FDR’s version was much softer than that of Hitler’s. Much of the wealthy elite complained about FDR’s policies, but many of them also were among the largest beneficiaries. Big ag in California at that time, for example, was dependent on big government infrastructure-building and subsidies provided by the New Deal (Fascism, Corporatism, and Big Ag) — not that this stopped these corporatists from complaining about meager protections given to farm labor.
The criticisms of FDR’s New Deal made by these corporatists clearly wasn’t that it was corporatist. They loved that part of it just fine. If anything, the corporatism was too little and too weak. What many of them wanted was full corporatism of the hard fascist variety, where big biz and big gov worked hand in glove. At least some of those who organized and have been involved with the Tax Foundation were economically and politically connected to fascist organizations and governments (e.g., Alfred P. Sloan). With the 1936 landslide re-election of FDR, these plutocrats realized they needed to get more serious in their influencing policy and public opinion here in the United States. One presumes that is why the Tax Foundation was created the following year in 1937, the year FDR’s second term began.
Outwardly, the Tax Foundation was focused on taxes, both tax laws and the use of tax funds. During WWII, they argued that the US government should lessen its spending at home (i.e., eliminate the welfare state) in order to spend more on fighting the war. After all, wars tend to be profitable for big biz and patriotic fervor helped incite the worst union-busting in US history (FDR himself attacked public unions). Yet, during and after the war, many of the key figures maintained their old ties to fascists, including former Nazis. Related to this, three members of the Bush family across three generations are implicated in this, all of them having been businessmen and politicians, two of them having been presidents, and one of them having been a CIA director. There have been a number of people with connections to both the Bush family and the Tax Foundation.
You’d think the fascist ties to US corporations, the Tax Foundation, the Bush family, and alphabet soup agencies would raise eyebrows in respectable company, but it usually doesn’t. This is business as usual, as it remains US policy to support and promote fascist regimes in regions such as Central and South America. Besides, only conspiracy theorists rant about such things. Not even a ‘liberal’ Democratic politician who cares about his professional career would dare to speak openly about it, at least not in the context of the actual practice of politics, although I’m sure all of this is well known in the circles of power. Books that detail this history of connections sometimes get reviewed in the MSM (e.g., The Brothers: John Foster Dulles, Allen Dulles, and Their Secret World War by Stephen Kinze), as it is fine to discuss it in historical abstraction now that most of the original actors are dead or senile.
Obviously, corporatism and soft fascism are alive and well within the United States economic-political system. It’s seen in the military-industrial complex and the intelligence-police state, the big biz Tax Foundation and the pay-to-play Clinton Foundation. The crony ties among the elite are a complex global network and the deep state has become entrenched over many generations. The person who referenced the Tax Foundation also told me, in another discussion, that fascism is no longer fresh in people’s memories, that it’s no longer a real concern. That may be the case for the type of person that references the Tax Foundation, but for damn sure fascism is fresh in our shared reality, in the world around us, and among those who rule over us. In fact, it’s once again growing in popularity, as recent politics demonstrates here and abroad.
At times like these, we should look carefully at those that seek to influence our society. The world they want to create may not be the world most of us would want to live in.
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Tax Foundation is AFP
by Cody Oliphant, One Wisconsin Now
Tax Foundation’s Dubious Attempt to Debunk Widely Known Truths about Corporate Tax Avoidance Is Smoke and Mirrors
by Steve Wamhoff, Tax Justice Blog
Tax Foundation–up to its usual nonsense
by Dan Crawford, Angry Bear
Intentionally misleading data from Scott Hodge of the Tax Foundation
by Cathy O’Neil, mathbabe
Tax Foundation propaganda revealed, again: Moran
by Thom Moran, NJ.com
Tax Foundation Figures Do Not Represent Typical Households’ Tax Burden
by Chuck Marr, Chloe Cho, Che-Ching Huang, CBPP
The Greek Menace
by Paul Krugman, The New York Times
Tax Foundation and Competitive Environments: more bunk!
by Linda M. Beale, ataxingmatter
“The Disappearing Tax Foundation Blog Post”
by Mark Thoma, Economist’s View
American Corporations Tell IRS the Majority of Their Offshore Profits Are in 12 Tax Havens
Citizens for Tax Justice
Tax Foundation State Rankings Continue to Deceive
Citizens for Tax Justice
A few words of warning about The Tax Foundation
by Carroll Quigley