Burger King Ethics: What’s Unethical About Burger King’s “Tax Inversion” (And It’s Not Burger King)

BKAs you may have heard by now, Burger King is preparing to merge with the larger Canadian equivilent of Dunkin Donuts, Tim Hortons and move the company’s headquarters to Canada. As with the proposed Walgreens move to Europe that was considered and ultimately rejected, the Burger King merger was made for tax reasons, and good ones. The good ones should be clearly explained to the American public, especially voters and those with unemployed workers in their families, but they are not. Let’s  call this BK Ethics Foul #1: news media incompetence. Because the public doesn’t understand what “tax inversion” means, they are vulnerable to having it distorted and demagogued for them by unethical politicians and pundits, and so it has been. Let us designate this BK Ethics Foul #2: the anti-corporate disinformation campaign.

The United States tax rate is  a whopping 35%, more than any other large industrial nation, even more than those that tend toward socialism. There’s nothing unethical about this, necessarily, though it can be argued that it is a foolish and self-destructive policy. Did you know, however—and I wouldn’t blame you if you didn’t, because not being an international corporation myself, I didn’t know until this issue arose—that the U.S. applies that tax to all global earnings of U.S. companies. This means that the earning of U.S. companies doing business abroad are not only taxed where they earn the profits, but also in the U.S., or as this is technically called, twice. (UPDATE: I should have made it clear that the the US does give a foreign tax credit for the money paid in taxes abroad, so the effect is not completely double tax, just two taxes.) That is definitely unfair (and also bad policy), and will be called BK Ethics Foul #3: predatory taxation Continue reading

Ethics Dunces: ABC News, Jonathan Karl and the Sunday Morning “Roundtable”

Republican Texas Governor Rick Perry is being threatened with prison by a per se unethical and illegal grand jury indictment, obtained by special prosecutor Michael McCrum, that attempts to criminalize not merely political tactics, which is how critics are describing it, but the essential and obligatory efforts of a state’s elected leader  to remove a corrupt and unqualified district attorney who is unfit to serve, corrupt,defiant….and drunk as a skunk.

You can read various eviscerations of the indictment here, here and here; there are many more. So far, I can’t find a respectable legal source that finds the indictment anything better than jaw-droppingly absurd and an abuse of prosecution. Jonathan Chait, a left-ish pundit and far from a Perry fan (much like me, except for the left-ish part), nicely expresses his contempt of the charge here. A short hand version would be that Perry has been threatened with jail based on what he said about vetoing a bill, which seems like a First Amendment violation to me.

The reason for the Ethics Dunce call on ABC is that this morning, the network reported on the indictment of Perry and its effect on his Presidential prospects in 2016 without explaining the reason for the Governor’s actions that the prosecutor is straining to call illegal. A simple, thorough, clear explanation would be sufficient to cause any reasonable reader or listener to cry “What? You’re kidding! That’s not possible!” That explanation, however, was not forthcoming on ABC, and has been missing from other reporting as well. Continue reading

Unethical Quote of the Week: Rep. Barbara Lee (D-Cal.)

Great, John, now you've killed Rep. Lee's brain. Oh, by the way: Shut up.

Great, John, now you’ve killed Rep. Lee’s brain. Oh, by the way: Shut up.

[ I am on my way back from Newport, preparing to drive for heaven knows how long back to Alexandria, VA, and typing in a small room with no desk, my roommie drying her hair and a Jack Russell that keeps jumping on the keyboard.  I am necessarily saving  expanded commentary about the ethics of the Unites States’ abdication of its vital role in the world for a later date, hopefully tomorrow. Until then, I will just touch on one particularly offensive example of the dishonest and pusillanimous attitude of so many of our elected leaders, who essentially are trying to poison U.S. culture with one of the most unethical pathogens of all…pacifism.]

 “I support strictly humanitarian efforts to prevent genocide in Iraq.” 

—-Rep. Barbara Lee (D-Calif.), the House’s most reliably knee-jerk opponent of any use of U.S. military force, objecting to the President’s air strikes against ISIS

What a nonsensical, deceitful, irresponsible statement, and stupid as well. An elected official who would utter such intellectually and morally bankrupt gibberish in public has disqualified herself for responsible office, as it makes almost everything about her qualifications suspect—her intelligence, her honesty, her judgment, her education, her sanity. Continue reading

Unethical Quote of the Month: President Obama

The bottom of the barrel...

The bottom of the barrel…

“Stop being mad all the time. Stop, stop, stop just hatin’ all the time.”

President Obama at a campaign appearance, referring to the Republican House of Representatives.

This may be the most unethical statement I have ever heard any President say, to any one, ever…. Continue reading

More Bad Law Ethics: Integrity Test Coming For The Judiciary On Obamacare

"Dear Courts: We intend this mess to be a big, perfect, beautiful palace. Please let us know when its finished.       Your Friend, Congress"

“Dear Courts: We intend this mess to be a big, perfect, beautiful palace. Please let us know when its finished.
Your Friend, Congress.”

In a recent post, I explained how the incompetent drafting and reckless manner in which the Affordable Care Act was passed has corrupted every branch of the government as well as damaged our system and the public’s faith in it. Affordable Care Act supporters continue to desperately try to excuse, fix, and rationalize this disgracefully bad law. Next up is an integrity test for the judiciary, as the legal argument against the US Court of Appeals for the DC Circuit’s decision in Halbig v. Burwell becomes untenable.

If the two judges on the three judge panel were correct, and it appears they were, then a drafting miscalculation in the ACA has rendered the health care overhaul unworkable, meaning that it can’t be fixed, constitutionally at least, by Executive Orders, waivers, delays or lies, like so much else connected to the legislation. It will have to be addressed the old-fashioned—as in “according to the Constitution”—way, or not fixed at all. Continue reading

Jonathan Gruber, Bad Law Ethics, The Corruption Of Democracy, And The Affordable Care Act

"Oh what a tangled web we weave..." You know the rest of Sir Walter Scott's famous quote. So why doesn't the Obama Administration?

“Oh what a tangled web we weave…” You know the rest of Sir Walter Scott’s famous quote. So why doesn’t the Obama Administration?

There are important democratic lesson to be learned from the ongoing Obamacare Ethics Train Wreck, and we could discuss them objectively if the beleaguered supporters (enablers? excusers? rationalizers? propagandists?) of the law would just start accepting facts rather than resorting to dishonesty in all of its forms. The law is a mess. The law is a mess because its proponents in Congress passed it without reading it, because the public was deceived and misled in order to pass it, and because Congressional leaders and the President, in addition to not reading  major legislation that have massive consequences to the nation’s population, businesses, and budget, pushed it through without the usual two House scrutiny and amendment process.

Fixing the mess, or trying to fix it, has caused as many problems as the misbegotten law itself. (Please note that I am not discussing the intentions of the law, or what good things it might accomplish for Americans show needed help getting health insurance. That is beside the point. Good intentions don’t make a good law, or a bad law good. Look at the chaos at the border generated by the 2008 anti-human trafficking law, when it was mixed with irresponsible Democratic rhetoric and administration policies suggesting that illegal immigration restrictions were a thing of the past where children were concerned. Yes: many Americans have benefited from the Affordable Care Act. That fact alone, stated without reference to all the chaos, uncertainty, corruption, division and misrepresentations that accompany it, does not mean the law has been a success.)

The law depended on a penalty for not buying health insurance, a penalty that Democrats insisted was not a tax (so the President didn’t have to defend a large tax increase.) But a penalty for not doing what citizens should be free to do was unconstitutional, so Chief Justice John Roberts, in the spirit of avoiding government by judge, allowed the ACA to slip by in a 5-4 decision by declaring that the mandate was a tax, regardless of what it had been called to get it passed, and thus was constitutional after all.

Then the President began delaying deadlines and waiving provisions in the law that weren’t ready to go into effect or that were obviously going to cause more embarrassments. This was an abuse of power: Presidents can’t change laws by fiat. It established a dangerous precedent that undermines Constitutional democracy and the Separation of Powers. But it’s a bad law, and an unpopular law; the Republican House obviously won’t agree to the fixes needed without also doing a major overhaul, and this is, in the ironic words we keep hearing, most recently by the New York Times, Present Obama’s “most significant legislative achievement“—how sad is that?—and must be preserved at all costs.

At all costs. So far the costs of the ACA have been complete partisan polarization, the public’s realization that the President who pledged “transparency” will lie repeatedly to get his way, judicial rescue or dubious validity, and the defiance of the lawmaking procedures delineated by the Constitution. And the ethics train wreck goes on.

In Halbig v. Burwell, the US Court of Appeals for the DC Circuit ruled that those who purchase health insurance under the Affordable Care Act are only eligible for federal tax credits if they do so through an exchange established by a state.  (Another court ruled otherwise.) The court did this because this is what the miserably drafted, rushed, never-read by its own champions actually says, stating that tax credits are only available to those who purchase insurance in an “[e]xchange established by the State.” Obama-propping pundits, Democratic officials and the Administration’s spokespersons have attacked and indeed ridiculed the decision, saying that he court should have refused to enforce the actual wording of the law because it creates an absurd result. After all, the ACA’s stated goal is to expanding access to health insurance. Why would Congress try to limit it in this fashion—I mean, other than the fact that they had no idea what the law they were voting for actually had in it, just a general idea about what it was supposed to do? Continue reading

Unethical Quote of the Week: Rep. Elijah Cummings

“Mr. Chairman…This has been very interesting because one member on your side, the gentleman, I don’t know his name, said that the man was under investigation…”

—-Rep. Elijah Cummings (D-Md), ranking Democrat on theHouse Oversight and Government Reform Committee  revealing that he hasn’t bothered to learn the names of his own committee’s members.

The House Oversight and Government Reform Committee, through the eyes of Rep. Cummings.

The House Oversight and Government Reform Committee, through the eyes of Rep. Cummings.

The dysfunction in Washington, D.C., and particularly in Congress, could not have a better or more discouraging  illustration than this. You can argue that not knowing the names of your colleagues is no big deal, but it is. It is proof of a lack of interest in cooperation and collegial relations. It is evidence of the absence of basic civility and respect. It demonstrates that Cummings is not interested in contributing to the mission and objectives of the committee, but rather obstructing them.

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Deconstructing The Unethical “It’s Impossible To Be President Today!” Excuse For President Obama

Presidents since WW II

Chris Cilizza’s latest of several attempts to relieve President Obama of responsibility for his spectacularly incompetent and disastrous presidency is too full of falsities, fallacies, rationalizations and illogical assertions to let pass, as I would dearly love to. Duty calls, however, so here we go. I’m not going to comment on the quoted “terrific” Ron Brownstein piece, which is not essential. Cilizza is in bold, my comments are not….

“Being president is the most powerful job in the world. At which you will almost certainly fail.”

  • First, I must ask, fail at what? Fail at solving problems? Fail at being popular? Fail by leaving the country in worse shape than when the President took office? Fail at leadership, at management, at foreign policy, at vision? Fail at handling crises? Fail by not dealing with long-term problems? By not bothering to define the central concept of his thesis, Cilizza just betrays his ignorance and laziness. If he won’t define his terms, he can’t be challenged.
  • Let me give Mr. Cilizza, who is really, absurdly arguing that succeeding as President is harder now than it has ever been, a brief history lesson focusing on how difficult this job has proved to be for others. George Washington, numero uno, had by far the most difficult job, being President of an unstable, new, confused nation with no precedents for his office, all while being second guessed by some of the most brilliant minds the nation ever produced, who were fighting among themselves to steer the country’s culture and government in radically different directions. He did a superb job, because Washington was a natural leader, perfectly suited for his grand moment in history. The next three Presidents were not, and had a terrible time of it (Jefferson’s reputation was saved by having the Louisiana Territory fall into his lap, but he was no leader, and call me a stickler, but any time a foreign power burns down the White House, I’m calling that President–James Madison—a flop), but James Monroe got the job down, beginning with having Cabinet members–like Daniel Webster–who were smarter than he was and properly delegating and managing them. The job defeated John Quincy Adams, but the next natural leader, gutsy, crazy Andrew Jackson, managed to keep the nation from dissolving over regional differences, and solved potentially disastrous  financial problems, in part because he was able to project strong leadership. Being a killer will do that….

Continue reading

Ethics Quote Of The Week (Crystal Ball Division): Prof. Glenn Reynolds

“Expect this to play out in thumbsucker columns on whether America is ‘ungovernable.'”

Professor Glenn Reynolds, the conservative “Instapundit,” in 2009 commenting on a blog post by Ed Morrissey about growing evidence of President Obama’s deficits in leadership skills and management competence.

I mean, who can do this? It's impos---oh. Right.

I mean, who can do this? It’s impos—oh. Right.

Sure enough, here comes a the Washington Post’s Chris Cillizza, with an offensive, unethical and false column in the Washington Post titled “It’s virtually impossible to be a successful modern president.”

This is a continuation of the six year strategy of the White House and Democrats to argue the ethical value of accountability out of existence. After all, if a job is impossible, you can’t be blamed for failing at it.

If there is any analyst ill-prepared to make such an analysis, it is a journalist, who in most cases, and definitely in the case of Cilliza, have never led or managed anything. Leadership and management challenges always look overwhelming when an amateur is overwhelmed by them.

I have to rush off to a seminar, so I will let you all dissect Cillizza’s pitiable excuses for the President, and return to the topic when I get back.

Unethical Quote Of The Month: Rep. John Lewis

open-borders

“We are all connected. We can’t just build a wall or a fence and say no more. This is America. Our doors are open. #AskDems”

Rep. John Lewis (D-GA), in a tweet that is part of a concerted Democratic effort to announce to the world that U.S. immigration laws will not be enforced.

“The doors are open.”

“The doors are open”???

How can any sensible, honest, objective American read this, from a leader of the Democratic Party, and not be appalled? This is an assertion of open borders, in defiance of U.S. sovereignty. This is an abdication of the rule of law. Go to twitter and search for #AskDems: Lewis’s tweet is the worst, but many of the Democratic leadership are making similar, and similarly irresponsible statements that undermine the effort to stop illegals, including the current torrent of illegal children, from streaming across the border. Continue reading