Soaking the Rich Never Works




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The New York Times is doing their best to cover the spending tracks left by President Obama. The op-ed, titled "The Truth About the Deficit" could win gold in mental gymnastics. They bend, twist and contort the facts into a pretty little ball of "blame Bush."

I showed you yesterday that George W. Bush was part of the problem, but Obama is pressing the accelerator. The Times claims that the deficit is the result of cutting taxes on the wealthy and they offer this stern warning: "The last thing the government should do is slash spending."

History tells us that "taxing the rich" and slashing government spending are both progressive lies. I read a lot and I read a lot of in-depth history. I could send you to "Woodrow Wilson and the Roots of Modern Liberalsm," but it will make your eyes bleed. Instead, this is a beginner's book of history, a gateway to the history that no one is teaching: "A Patriot's History of the United States."

I can't believe I'm going here, but let me tell you a little about Presidents Harding and Coolidge.

Andrew Mellon — he was the Timothy Geithner without the TurboTax scandal — did a study in 1921 on why the wealthier classes had paid less and less in taxes as the government raised the rates on them over and over again. Mellon found that higher taxes actually drove the money underground.

Let's put it in today's context. On Monday, I showed you the reports on Oprah Winfrey and her mansion in Montecito, California — because California has one of the highest progressive tax rates on people making over $1 million a year, she actually monitors the number of days she stays there, in order to avoid being considered a "full-time resident" and thus avoid paying the full punishment in taxes.

Here's another example: In 1969, Ireland introduced a tax-exempt status for artists. When they decided, in 2006, to put a cap on that tax break — 250,000 euros — Bono, another one of these celebrities who champion progressive politicians, promptly moved U2's business operations to the Netherlands.

That's how the money goes "underground," just like Mellon found in the 1920s; the uber-rich look to save money any way they can. And as long as it's legal, I don't blame them. But it drives me nuts when I see people like Oprah campaigning for the guy who wants more taxes and then she doesn't want to pay the taxes.

I mean, who do you think he's talking about when he says "the wealthiest one percent?" Come on, Oprah! Do your patriotic duty, like Vice President Biden says.

How about Michael Moore? I thought the rich don't pay their fair share? So why did he apply for and receive a tax credit from the state of Michigan of all places for shooting his latest film there? Michael, why are you so greedy?

Soaking the rich doesn't work; they move their money as California and New Jersey are finding out. They leave the state. New Jersey in four years has lost $70 billion in wealth.

They leave!

In the 1920s, Mellon found that "the rich" tended to invest abroad rather than build new factories and mills in the United States and pay the 73 percent tax on the income from those investments. That's right, 73 percent.

It didn't start that way, though. When progressive Woodrow Wilson introduced the "progressive income tax" in 1913, the 16th Amendment had to be passed because income taxes were unconstitutional. How did these reformers manage to get it passed? They said taxes would be extremely low. Many would pay no taxes at all.

The richest of the rich only paid seven percent, while the average American paid one percent. Of course, it didn't last. By the end of Wilson's term the lowest bracket bumped up to four percent and the highest at 73 percent.

President Harding decided to listen to Mellon. And from 1921 to 1926, Congress worked to reduce the top tax rates. Eventually they got to top rates down to 25 percent. The result: Tax revenues from the wealthiest taxpayers tripled. The national debt dropped from $24 billion to $18 billion.

President Calvin Coolidge assumed the presidency in 1923 after Harding suddenly died and continued with the smaller government, lower tax strategy. He talked about not building up the weak by pulling down the strong; not being in a hurry to legislate and cutting the size of government. Coolidge and Harding decreased the real per capita federal expenditures from $170 per year in 1920 to $70 in 1924.

These policies, along with fostering the mentality of self-reliance (the opposite of what progressives had been preaching the previous 20 years) and the opposite of what they preach now, by saying "too big to fail" or you can't make it without government safety nets.

What followed was arguably one of the most prosperous eight years this country has ever seen. You've probably heard of a little term called "The Roaring Twenties," right? The progressive history books have done their best to hide the fact that a lot of it had to do with Mellon's tax policies, including the tax cuts for the wealthy.

Progressives don't want you to know this. They'll say the tax cuts and small government caused the Great Depression. No, I'm going to go out on a limb here and use common sense: The same things that caused the problems of today were the root of the problem in 1929: greed; the Federal Reserve; government making every single mistake. The president before the crash was a Republican, but a progressive Republican. But, that's for another show.

Let me get back to what happened when they cut taxes in 1921:

Automobile production was up 191 percent for the decade and while the elites bemoaned those wealthy fat cats and their automobiles, their appetite for driving created jobs. The demand for auto-related products skyrocketed: metal; lumber; steel; cotton; leather; paint; rubber; glass and of course, gasoline. Companies had to be created to meet the demand. This is real job creation. People had to be hired. Roads were being built. State highway construction spending increased tenfold between 1918 and 1930; did they fire all the cops and teachers?

In 1920 there were only 5,800 passengers who had flown on a plane. By 1930 it was 70 times that amount.

RCA brought us the radio and along with it, advertising. Now you could hear Babe Ruth hitting home runs all anywhere in the country.

Thomas Edison brought us movies in the 1880s, but in the 1920s the true modern-era motion picture arrived with Cecil B. Demille and "The Ten Commandments."

A whistling Mickey Mouse was introduced to America by Walt Disney in 1928; the first cartoon with synchronized sound.

Conveniences like telephones became less exclusive and more commonplace in the '20s. More Americans had irons, vacuums, washing machines and refrigerators. And all of these new products meant there was a demand for something else: energy. America needed huge power plants.

Does all of this innovation and growth seem to anyone else, like lasting job creation? Assuming the Fed and the government don't come in and screw everything up. And unlike the temporary jobs or the low-paying census jobs our government creates, per capita income had increased 37 percent from 1921 and 1929. People saved and invested like never before, gaining access to things for the first time such as life insurance.

It was America's coming-out party. And all of this success, all of the innovation, all of the prosperity without punishing the rich, without big government, absolutely baffled progressives. Especially the fact that everyone benefited; from the bottom up.

Evidence? Leon Trotsky, a Marxist revolutionary in the Soviet Union with Lenin, later lived in New York City in 1917. He fought all his life for Marxism to help the working class. Here's what he said about New York: "We rented an apartment in a workers district... and that apartment, at $18 a month, was equipped with all sorts of conveniences that we Europeans were quite unused to: Electric lights, gas cooking range, bath, telephone, automatic service elevator, and even a chute for the garbage."

What would Mr. Communism himself have said about New York a decade later? This was the conditions for the working class under evil, evil capitalism.

I can tell you what the intellectuals and the progressives said. F. Scott Fitzgerald said that Americans had engaged in "the greatest, gaudiest spree in history."

What do you think "The Great Gatsby" was all about? How materialistic and evil the average American had become? No. Did you read your own book?

The fact that the middle class was closing in on the upper class because the policies of smaller government — decreasing government spending and cutting taxes on the wealthy — were working didn't sit well with progressives.

And we are at the same place in history today.

We have a clear choice: Do we listen to the elites and The New York Times who warns of the dangers of cutting spending and lowering taxes? Or do we listen to our gut and common sense? The things that work in our own home. If the boss is having trouble keeping the doors open, you don't ask for a raise. If you are in debt, you stop spending.

We need to set the country back on the course of personal responsibility and innovation because that leads to prosperity and a better life for all of its citizens.

— Watch Glenn Beck weekdays at 5p & 2a ET on Fox News Channel

The Senate Judiciary Committee was set to vote on subpoenas to compel Twitter CEO Jack Dorsey and Facebook CEO Mark Zuckerberg to testify on alleged censorship and bias across their platforms. But that all changed when Republican committee members "expressed reservation about the maneuver," Politico reports.

Sen. Ted Cruz (R-Texas), who chairs Judiciary's Subcommittee on the Constitution, was definitely not one of the committee members with cold feet. On the radio program Tuesday, he told Glenn Beck that he's fighting "vociferously" to ensure Dorsey and others testify before the November 3rd election.

"Jack Dorsey and Mark Zuckerberg are both going to testify. They're are going to testify in person. They're going to testify before Election Day. That's what I think should happen," Cruz said. "That's what I'm fighting vociferously to happen. Right now, the companies are negotiating with the chairman's office to discuss terms to come voluntarily. I don't give a damn whether they come voluntarily or under subpoena. They need to testify in person and answer questions for the American people about why they are trying to steal this election, to suppress the free speech, and to censor the press."

The subpoenas would require Big Tech leaders to testify on the alleged "suppression and/or censorship" of two consecutive blockbuster stories from the New York Post. The first story was about emails that allegedly came from Hunter Biden's computer which are currently being investigated by the FBI, and the second was based on additional emails that allegedly showed communist China directly offering millions of dollars to then-Vice President Joe Biden.

"Big Tech stepped in, and they've done something they've never done before," Cruz explained. "We know that Big Tech has been censoring individual conservatives, trying to suppress conservative speech. But the step they took here is, they blocked if any individual user tried to share either of the New York Post stories, [they] were blocked ... Sharing a news story, from a major media outlet is part of democracy, part of free speech. And not only that, they blocked the New York Post itself. Right now, today, the New York Post is not being allowed to post its own damn stories on corruption. This is ridiculous. It's a threshold that's never been crossed before, of Silicon Valley oligarchs declaring the authority to determine what the press is allowed to report, and who is allowed to see it."

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If we learned nothing from the media over the past 4 years it's that colluding with a foreign entity to either win an election or for personal gain is absolutely grotesque. Well, that depends on whether you have a (D) or (R) before your name anyway. President Trump was impeached on rumor and innuendo yet Joe Biden has all but skated on his corruption up to this point.

Below is a timeline that shows the level of corruption and the lengths the Biden's went to in order to build that family's wealth and influence internationally.

2009

In 2009, Joe Biden was the brand-new Vice President and John Kerry was a U.S. Senator. Just five months after Joe was sworn in, his son Hunter, and Kerry's stepson, Christopher Heinz, formed an international private equity firm called Rosemont Capital. It had several different branches, including one called Rosemont Seneca Partners.

2010

Just nine months after Rosemont Seneca opened its doors, Hunter Biden went to China for meetings with executives from China's biggest banks, and its sovereign wealth and social security funds. That's unheard-of access for a brand-new firm. Was it just coincidence that at the same time Hunter was meeting these Chinese bigwigs, his dad was meeting with China's then-president Hu Jintao in Washington DC at a nuclear security summit?

2011

In May 2011, Joe Biden met with Chinese officials for the U.S.-China Strategic & Economic Dialogue conference in Washington. Just two weeks later, Hunter Biden went to Taiwan for meetings with the same Chinese financial giants he'd met in China in 2010, plus some new ones.

2013

By December 2013, Joe Biden was enjoying his second term as VP, and John Kerry was now Secretary of State. That's when Joe traveled to Beijing on an extended official trip and Hunter traveled with him on Air Force Two.

During their stay, Vice President Biden met with President Xi and Hunter was mostly out of sight. We don't know exactly what he was up to, but the deal finalized between Rosemont Seneca and the Bank of China just ten days after the Bidens' trip pretty much gives it away. The most powerful financial institution in China formed a joint venture with tiny Rosemont Seneca to create a giant new investment firm called Bohai Harvest RST – the "RS" stands for Rosemont Seneca.

The firm is often called "BHR" for short.

Hunter Biden was a member of the Board. Remember, the Bank of China is government-owned, which means its business is completely intertwined with the goals of the Chinese Communist Party. BHR also got the freedom to operate in the newly created Shanghai Free-Trade Zone where, over the next six years, it would use $2.5 billion of Chinese government money to invest in China, as well as in other countries, including the U.S.

During their Beijing trip, Hunter also introduced Jonathan Li to his dad. Li is Hunter's business partner – he's CEO and Director of BHR.

Hunter arranged for Joe to meet Li in the lobby of the hotel where they stayed during their Beijing trip.

2014

In 2014, one of BHR's first major investments was in the China General Nuclear Power Corporation.

CGN is a Chinese government-owned nuclear power company that sold off a stake of the company to outside investors. Problem is, CGN was under FBI investigation for paying informants in the U.S. to steal nuclear secrets.

In 2016, the FBI arrested the ringleader of this nuclear espionage, a man named Allen Ho.

When they arrested Ho, he was using a random code generator to access funds being provided to him from – where else? – the Bank of China.

Yet while this FBI probe was going on, the son of the Vice President owned a stake in the company being investigated. And even after arrests were made, Rosemont Seneca did not alter its relationship with BHR, nor did it divest from CGN, even though it was stealing U.S. nuclear secrets.

2015

In 2015, BHR partnered with the Aviation Industry Corporation of China (AVIC) to buy an American company called Henniges for $600 million.

AVIC is a gigantic military contractor in China – think Lockheed Martin – that makes fighter jets, bombers and drones. BHR bought 49% of Henniges and AVIC bought 51%.

Henniges is a precision parts manufacturer specializing in anti-vibration technology. The stuff they make is known as "dual use" by the U.S. State Department, which means the technology can also have a military application.

Because of that, the deal had to be approved by the Committee on Foreign Investment in the U.S. (CFIUS) since it could have national security implications. The thing is, the American side of BHR – meaning Hunter Biden and his pals – had to know there were serious national security implications with AVIC.

The year before they formed a partnership with AVIC, the Wall Street Journal reported how AVIC stole technology related to the U.S. Air Force's F-35 stealth fighter and used it in its own stealth fighter for the Chinese.

How the Committee on Foreign Investment approved that deal remains a mystery. CFIUS does not publicly disclose any information regarding its decisions. Their findings are not publicly announced.

Interesting that China accounted for the largest share – with 74 transactions – approved by CFIUS during Obama's second term (2013-2015).

Under the umbrella of Rosemont Capital was a real estate company called Rosemont Realty. In 2015, a Chinese company called Gemini Investments bought a 75% stake in Rosemont Realty. The company was renamed Gemini Rosemont

Gemini brought $3 billion to the partnership with Rosemont, with the aim of buying "Class A institutional-quality commercial office properties in U.S. markets."

Red flag (literally) – Gemini Investments is a subsidiary of the China Ocean Shipping Company, a.k.a., "COSCO."

COSCO is a Chinese government-owned company. Its headquarters in Beijing is actually next to the headquarters of the Bank of China. COSCO is well-known for its close military ties. It's essentially a branch of the Chinese Navy.

2017

In 2017, BHR invested in Face++. That's the facial recognition phone app built by a Chinese company that is incorporated in a separate app built by the Chinese government. Police in the Xinjiang [Sin-jong] region of China use that app to keep tabs on citizens, and track and detain Uiguhr [Wee-ger] Muslims.

The app allows police easy access to data about Chinese Muslims including things like religious activity, blood type, and even the amount of electricity they use.

2018

In March 2018, a spokesman (Chris Bastardi) for Christopher Heinz (John Kerry's stepson) emailed The Hill to say that Heinz had "no operating role" in Rosemont Seneca, and that he was not involved in any of Rosemont's deals in China (which contradicts Schweizer's report in his book Secret Empires).

Chris Heinz was involved in Rosemont Capital. Rosemont Seneca was established under the same GP as Rosemont Capital, but Chris Heinz had no operating role in it. Chris and his family have no financial interest or investment in Bohai Harvest RST, he has never traveled to China, and he has never met with the firm's Chinese management team or investors.

2019

In October 2019, Hunter Biden's lawyer, George Mesires, said Hunter did not conduct any business on that 2013 trip to Beijing with his Dad.

Mesires said the timing of BHR's business license getting approved was purely coincidental because the paperwork had been submitted months before the Bidens' China trip.

According to Hunter's lawyer, the approval " was not related in any way, shape or form to Hunter's visit."

Hunter Biden finally stepped down from the BHR board last October (2019), but he DID NOT give up his 10% stake in the company.

When Bevan Cooney — the former "junior" business partner to Hunter Biden and Devon Archer — went to jail in 2019, investigative reporter and New York Times bestselling author Peter Schweizer thought he'd never gain access to the damning emails Cooney had promised. That all changed three weeks ago when Schweizer was given complete access to Cooney's gmail account.

Schweizer joined Glenn Beck on the radio program Tuesday to describe just some of the business deals revealed within these emails — like Hunter working with an alleged Russian criminal and with Chinese communists to secure their assets, or to secure one-on-one time with his dad, then-Vice President Joe Biden. And all of this new information is completely separate from the emails allegedly discovered on Hunter Biden's laptop recently reported by the New York Post.

"So, I want to make this clear. This [Cooney's emails] has nothing to do with what's on the laptop … It didn't come from [Rudy] Giuliani. It didn't come from anybody else, right?" Glenn asked Schweizer.

"That's absolutely correct," Schweizer confirmed.

He briefly explained how Cooney, a former Los Angeles nightclub owner, is currently serving a prison sentence for his involvement in a fraudulent business bond scheme with Biden and Archer. From prison, Cooney gave Schweizer written permission to access his Gmail account.

"This is really important," he noted. "We're not looking at printouts. Not looking at PDFs. We're actually in his Gmail accounts themselves, sifting through these emails. And there's a shocking amount of information about deals involving China, involving Russia, involving all sorts of things they were trying to pull off."

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The king of "No Spin" and bestselling author of "Killing Crazy Horse," Bill O'Reilly joined Glenn Beck on this week's podcast to talk about the latest developments in Joe Biden's Ukraine and China corruption scandal. Now that some of the details are finally coming out in the open, does the average Democrat care? Maybe, but the Left doesn't seem to.

O'Reilly argued there's more hatred for President Donald Trump now than in 2016, and that some people hate President Trump so much that they'd rather vote for the "senile, corrupt" Joe Biden.

"Hunter got tens of millions of dollars from Ukraine, from Russia, from China because his father was vice president. I have no doubt in my mind," O'Reilly said. "But the hatred for Donald Trump overrides that in the minds of millions of viewers. They're saying, 'You know, we'd rather have the senile corrupt guy than Trump.'"

Asked by Glenn if any other Republican running for president would be met with the same level of vitriol, O'Reilly answered, "The Left is the Left. They don't like America. The want to redo the Constitution. They want to take some of our freedoms, like the Second Amendment and the First Amendment, and change them. And they want to destroy capitalism and replace it with a big centralized government in Washington that controls the economy … but I'm talking about the folks. I have liberal friends and I say to them, 'Do you not understand that when you vote for Biden, you're voting against your own self interest?'"

Watch the video clip from the full podcast below, or find the full episode HERE:

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