You might be wondering who Tom Steyer is so I'll begin by sharing with you a little about Tom before I state his argument.
Tom Steyer is a quiet Billionaire who lives in San Francisco and is the co-managing partner of Farallon Capital. His firm focuses on managing funds for high net worth individuals, college endowments and foundations. As of 2011, Farallon Capital Management is the 12th largest hedge fund in the world managing US 21.5 billion in assets. Maybe you're asking a perfectly logical question, "why am I even mentioning this guy?'
Fair question. I went to Prep School with Tom at Phillips Exeter Academy in balmy Exeter, New Hampshire (you will need more than flip flops and board shorts to get through the Winter).
Tom and I entered Exeter in 9th grade. He began in the first semester, I entered quickly after my late first semester interview with the former Admissions Director, Arthur Peekal. After I swam with the varsity team I got out of the pool and was given an invitation to enroll in the academy after the Christmas break. Soon thereafter I met Tom. Coming from a mess of a childhood and no parenting I was receptive to people with character, Tom was one of those people.
Tom was always on time for classes, a great student, a hard nosed athlete (don't ever bet against him in any sport) and one of the few people I looked to as a great model of what I wanted to become. Everyone knew Tom would succeed in his career.
Tom Steyer is advocating the now renowned "Buffet Tax" bantered by the pundits on the left as necessary and on the opposing side as "silly, egregious, and ruinous." You know what they say about opinions don't you?
Tom is vicarious as are most Democrats and Republicans. High net worth Republicans are bitter of the thought of higher taxes despite having plenty of money. Some have threatened to pull up stakes and leave, even renounce their citizenship and head for perceived greener pastures.
Despite the fact I'm a jaded 54 year old Independent who has heard so many silly campaign promises that never materialize, I pondered Tom's primary selling point, frankly after much deliberation it's a pretty good one.
Tom Steyer's rationale is we are blessed to be citizens of the United States. He's right, imagine living (where my best friend lives) in Nigeria? There you are fortunate if you have food and water on a daily basis. Tom is on to something, despite all we complain about, I can list one hundred places in the World where things are not as good as they are here in the United States. Being here and being part of the World's primary economic engine despite shipping jobs overseas, is still better than living in London, Munich or even Beijing.
Republicans have moaned about the "Buffet Tax" and I hear their argument and to an extent it's true, a higher tax on the upper 1% is to some extent pretty silly especially with so much government waste. We may see many high net worth individuals move to Canada where there are no capital gains taxes, or even Hawaii (oops I almost forgot that's part of the United States).
Having spent much of my adult life in the top one percent of taxpayers I found myself on the side of Republicans until I heard Warren Buffet and especially Tom Steyer's argument.
There is however a caveat that may be demonstrative of my Independent status, "what about the expense side of the equation?" If I'm going to pay more why don't we cut a billion in expenses weekly and stop debasing the currency by monetizing debt?
Why can't the sanctity of Larry Summers, the Clinton administration and a balance of power in the House and the Senate be revived? There's something to vote for...no new legislation.
The Clinton years were pretty good for the United States and at time things were entertaining to say the least. I knew that President Bill Clinton was effective in his administration's control of spending when I heard several members of the armed forces complain about a lack of things that they grew accustomed to in other administrations. During the Clinton years, the dollar was far stronger for eight years than it is now and you didn't need to sell an internal organ to travel to Europe.
Why can't we cut spending and raise taxes for the wealthiest taxpayers for a specific time period? It worked for President Clinton. Like him or not, he learned a lot about math at Oxford. Larry Summers also has a few sharp number two pencils and understood prosperity comes from the Government living within its means, first and foremost.
A return to sanity would be refreshing. However make no mistake, we are in a Holy War...so the "back to the past" financial model may bring prosperity" but the lack of keeping our foot on the throat of the enemy will allow the enemy to gain strength. I would like us to be more fiscally responsible but we have shoved hundreds of pitchforks into a giant snake pit; leaving will most likely lead to some unparalleled consequences. I am convinced that most of Al Qaeda owns the complete box collection of "24" and the fictional Jack Bauer is no where to be found (he might be hiding out at the Mondrian on Sunset).
Despite my argument for the coordinated fiscal effort, the utopia of a balance of power and fiscal responsibility we are in a real conflict that will come to our door. Either you are on offense or you are on defense in a war. I always liked shooting the ball rather than blocking it. Offense applies pressure, defense often waits for it.
As you may surmise I am now leaning more so towards higher taxes on the wealthiest taxpayers due to the fact that like it or not, the World has changed substantially since President Clinton spent two very prosperous terms as President. We are in the greatest Holy War of all time and don't forget the advantage of being on offense especially when you are already on offense.
Regardless of my leaning towards Tom Steyer's viewpoint, I still think we are pouring billions every month down dark bottomless holes with no regard for the debasement of the Dollar or job creation. I doubt my view on spending and the lack of job creation is unique.
Maybe Tom Steyer can take over when it comes to domestic job creation, he's pretty good at attacking big problems and leading. Come to think of it so is Warren Buffet.
Be grateful and count your blessings you are still in the United States.
written by Brad Richdale copyright 2011 all rights reserved
