L.A. City Council Moves Toward $8.4 Million Tax Giveaway to Mutual Fund Investors Yet Vows Allegiance to Occupy?
The L.A. City Council is a fairly liberal bunch. It voted last month, for example, to support the Occupy L.A. movement, which holds the bailed-out, tax-loophole-rich banks and investment houses of Wall Street responsible for the Great Recession and its aftermath.
But strangely the council also has a lot in common with the so-called 1 percenters, the Republican Party and even Tea Partiers.
You see, the council seems to believe that trickle down economics works. Despite evidence that American banks and corporations that have benefited from tax breaks have no trickle-down love for the worst job market in generations ...
... the council believes tax breaks for the rich will spark so-called "job creation."
The body eliminated gross receipts tax on mutual funds for the next three years, according to City News Service. The move amounted to an $8.4 million giveaway to -- you guessed it -- the 1 percenters.
City legislative Analyst John Wickham said the city could lose $12.5 million in tax revenue if mutual fund managers left L.A. over the tax. Yeah right.
The council also moved to draft a three-year extension of its "tax holiday" for local business' gross receipts taxes.
So are they with Occupy, or with Wall Street? Liberal Westside city Councilman Bill Rosendahl wasn't necessarily on this trickle-down train. CNS:
Councilman Bill Rosendahl questioned the wisdom of foregoing that money for basic city services like filling potholes and trimming trees.
Also note that this is a body that gave $52 million in public money to billionaire Eli Broad (an uber-1-percenter) to build a parking lot, and it gave $1 million to an architectural firm, Gensler, to move downtown from Santa Monica, even though it already planned to do so.
The L.A. City Council is acting more and more like Reverse Robinhood if you ask us: Take from the poor and give to the rich.