The tax sharks are back and they’re coming for your home
I'm touring my new, nationally bestselling novel The Bezzle! Catch me TODAY (Apr 27) in MARIN COUNTY, then Winnipeg (May 2), Calgary (May 3), Vancouver (May 4), and beyond!
One of my weirder and more rewarding hobbies is collecting definitions of "conservativism," and one of the jewels of that collection comes from Corey Robin's must-read book The Reactionary Mind:
https://en.wikipedia.org/wiki/The_Reactionary_Mind
Robin's definition of conservativism has enormous explanatory power and I'm always finding fresh ways in which it clarifies my understand of events in the world: a conservative is someone who believes that a minority of people were born to rule, and that everyone else was born to follow their rules, and that the world is in harmony when the born rulers are in charge.
This definition unifies the otherwise very odd grab-bag of ideologies that we identify with conservativism: a Christian Dominionist believes in the rule of Christians over others; a "men's rights advocate" thinks men should rule over women; a US imperialist thinks America should rule over the world; a white nationalist thinks white people should rule over racialized people; a libertarian believes in bosses dominating workers and a Hindu nationalist believes in Hindu domination over Muslims.
These people all disagree about who should be in charge, but they all agree that some people are ordained to rule, and that any "artificial" attempt to overturn the "natural" order throws society into chaos. This is the entire basis of the panic over DEI, and the brainless reflex to blame the Francis Scott Key bridge disaster on the possibility that someone had been unjustly promoted to ship's captain due to their membership in a disfavored racial group or gender.
This definition is also useful because it cleanly cleaves progressives from conservatives. If conservatives think there's a natural order in which the few dominate the many, progressivism is a belief in pluralism and inclusion, the idea that disparate perspectives and experiences all have something to contribute to society. Progressives see a world in which only a small number of people rise to public life, rarified professions, and cultural prominence and assume that this is terrible waste of the talents and contributions of people whose accidents of birth keep them from participating in the same way.
This is why progressives are committed to class mobility, broad access to education, and active programs to bring traditionally underrepresented groups into arenas that once excluded them. The "some are born to rule, and most to be ruled over" conservative credo rejects this as not just wrong, but dangerous, the kind of thing that leads to bridges being demolished by cargo ships.
The progressive reforms from the New Deal until the Reagan revolution were a series of efforts to broaden participation in every part of society by successively broader groups of people. A movement that started with inclusive housing and education for white men and votes for white women grew to encompass universal suffrage, racial struggles for equality, workplace protections for a widening group of people, rights for people with disabilities, truth and reconciliation with indigenous people and so on.
The conservative project of the past 40 years has been to reverse this: to return the great majority of us to the status of desperate, forelock-tugging plebs who know our places. Hence the return of child labor, the tradwife movement, and of course the attacks on labor unions and voting rights:
https://pluralistic.net/2022/11/06/the-end-of-the-road-to-serfdom/
Arguably the most potent symbol of this struggle is the fight over homes. The New Deal offered (some) working people a twofold path to prosperity: subsidized home-ownership and strong labor protections. This insulated (mostly white) workers from the two most potent threats to working peoples' lives and wellbeing: the cruel boss and the greedy landlord.
But the neoliberal era dispensed with labor rights, leaving the descendants of those lucky workers with just one tool for securing their American dream: home-ownership. As wages stagnated, your home – so essential to your ability to simply live – became your most important asset first, and a home second. So long as property values rose – and property taxes didn't – your home could be the backstop for debt-fueled consumption that filled the gap left by stagnating wages. Liquidating your family home might someday provide for your retirement, your kids' college loans and your emergency medical bills.
For conservatives who want to restore Gilded Age class rule, this was a very canny move. It pitted lucky workers with homes against their unlucky brethren – the more housing supply there was, the less your house was worth. The more protections tenants had, the less your house was worth. The more equitably municipal services (like schools) were distributed, the less your house was worth:
https://pluralistic.net/2021/06/06/the-rents-too-damned-high/
And now that the long game is over, they're coming for your house. It started with the foreclosure epidemic after the 2008 financial crisis, first under GW Bush, but then in earnest under Obama, who accepted the advice of his Treasury Secretary Timothy Geithner, who insisted that homeowners should be liquidated to "foam the runways" for the crashing banks:
https://pluralistic.net/2023/03/06/personnel-are-policy/#janice-eberly
Then there are scams like "We Buy Ugly Houses," a nationwide mass-fraud outfit that steals houses out from under elderly, vulnerable and desperate people:
https://pluralistic.net/2023/05/11/ugly-houses-ugly-truth/#homevestor
The more we lose our houses, the more single-family homes Wall Street gets to snap up and convert into slum properties, aslosh with a toxic stew of black mold, junk fees and eviction threats:
https://pluralistic.net/2022/02/08/wall-street-landlords/#the-new-slumlords
Now there's a new way for finance barons the steal our houses out from under us – or rather, a very old way that had lain dormant since the last time child labor was legal – "tax lien investing."
Across the country, counties and cities have programs that allow investment funds to buy up overdue tax-bills from homeowners in financial hardship. These "investors" are entitled to be paid the missing property taxes, and if the homeowner can't afford to make that payment, the "investor" gets to kick them out of their homes and take possession of them, for a tiny fraction of their value.
As Andrew Kahrl writes for The American Prospect, tax lien investing was common in the 19th century, until the fundamental ugliness of the business made it unattractive even to the robber barons of the day:
https://prospect.org/economy/2024-04-26-investing-in-distress-tax-liens/
The "tax sharks" of Chicago and New York were deemed "too merciless" by their peers. One exec who got out of the business compared it to "picking pennies off a dead man’s eyes." The very idea of outsourcing municipal tax collection to merciless debt-hounds fell aroused public ire.
Today – as the conservative project to restore the "natural" order of the ruled and the ruled-over builds momentum – tax lien investing is attracting some of America's most rapacious investors – and they're making a killing. In Chicago, Alden Capital just spent a measly $1.75m to acquire the tax liens on 600 family homes in Cook County. They now get to charge escalating fees and penalties and usurious interest to those unlucky homeowners. Any homeowner that can't pay loses their home.
The first targets for tax-lien investing are the people who were the last people to benefit from the New Deal and its successors: Black and Latino families, elderly and disabled people and others who got the smallest share of America's experiment in shared prosperity are the first to lose the small slice of the American dream that they were grudgingly given.
This is the very definition of "structural racism." Redlining meant that families of color were shut out of the federal loan guarantees that benefited white workers. Rather than building intergenerational wealth, these families were forced to rent (building some other family's intergenerational wealth), and had a harder time saving for downpayments. That meant that they went into homeownership with "nontraditional" or "nonconforming" mortgages with higher interest rates and penalties, which made them more vulnerable to economic volatility, and thus more likely to fall behind on their taxes. Now that they're delinquent on their property taxes, they're in hock to a private equity fund that's charging them even more to live in their family home, and the second they fail to pay, they'll be evicted, rendered homeless and dispossessed of all the equity they built in their (former) home.
It's very on-brand for Alden Capital to be destroying the lives of Chicagoans. Alden is most notorious for buying up and destroying America's most beloved newspapers. It was Alden who bought up the Chicago Tribune, gutted its workforce, sold off its iconic downtown tower, and moved its few remaining reporters to an outer suburban, windowless brick building "the size of a Chipotle":
https://pluralistic.net/2021/10/16/sociopathic-monsters/#all-the-news-thats-fit-to-print
Before the ghastly hotel baroness Leona Helmsley went to prison for tax evasion, she famously said, "We don't pay taxes; only the little people pay taxes." Helmsley wasn't wrong – she was just a little ahead of schedule. As Propublica's IRS Files taught us, America's 400 richest people pay less tax than you do:
https://pluralistic.net/2022/04/13/for-the-little-people/#leona-helmsley-2022
When billionaires don't pay their taxes, they get to buy sports franchises. When poor people don't pay their taxes, billionaires get to steal their houses after paying the local government an insultingly small amount of money.
It's all going according to plan. We weren't meant to have houses, or job security, or retirement funds. We weren't meant to go to university, or even high school, and our kids were always supposed to be in harness at a local meat-packer or fast food kitchen, not wasting time with their high school chess club or sports team. They don't need high school: that's for the people who were born to rule. They – we – were meant to be ruled over.
If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2024/04/26/taxes-are-for-the-little-people/#alden-capital
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Jeff Goldblum warning us in Jurassic Park that cloning dinosaurs is raping mother nature was apparently an instruction manual and not a warning.
"Colossal Biosciences, a biotechnology company founded in 2021, is working to genetically resurrect the woolly mammoth by combining its genes with Asian elephant DNA. The company's goal is to create a hybrid species, called a "mammophant", that will look and behave like a woolly mammoth. Colossal plans to use cloning techniques similar to those used to create Dolly the sheep in 1996, inserting genetically edited cells into an elephant egg that would then be gestated by a surrogate elephant. The company has said it intends to complete the project by 2027."
Exploitative KKKapitalism = Eating like 💩 in the neighborhood!
"Studies have shown that the prevalence of fast-food restaurants is positively correlated with the percentage of Black residents in urban neighborhoods in the U.S. Similar trends have been found for liquor stores."
$Anything for a Dollar$
"While dollar stores can fill a need in low-income neighborhoods, they are often regarded as predatory businesses that harm communities more than they benefit them, due to very low wages, displacing other grocery options while failing to sell fresh food, store design that increases the rate of armed robberies, and OSHA and FDA violations that put customers and employees at risk."
Who Needs Fresh Food?
"There are no fresh vegetables, fruits, or meats in most dollar stores. And yet, as limited as their offerings are, dollar stores are now feeding more Americans than Whole Foods is, and they’re multiplying rapidly. Since 2011, the number of dollar stores nationwide has climbed from about 20,000 to nearly 30,000. There are now more dollar stores than Walmart and McDonalds locations combined."
Dollar Tree Customers = Permanent Underclass
"In their latest annual reports, Dollar General and Dollar Tree say they have identified thousands of new locations for dollar stores. The two chains are planning to expand their combined empires to more 50,000 outlets."
“Essentially what the dollar stores are betting on in a large way is that we are going to have a permanent underclass in America,” Garrick Brown, a researcher with the commercial real estate firm Cushman & Wakefield, told Bloomberg last year.
“The economy is continuing to create more of our core customer,” Dollar General chief executive Todd Vasos told investors last year.
"More than one-third of American adults, and 48 percent of African American adults, are obese."
13% of the US population is Black, and 48% of Black Americans are obese.
"Look at the pharmaceutical companies. In my neighborhood, there is a fast-food restaurant on every block, from Wendy’s to Kentucky Fried Chicken to Popeye’s to Little Caesar’s Pizza. Now drugstores are popping up on every corner, too. So you have the fast-food restaurants that of course cause the diet-related diseases, and you have the pharmaceutical companies there to fix it."
"If you give people access to really good food and a living-wage job, someone is going to lose money. As long as people are poor and as long as people are sick, there are jobs to be made. Follow the money."
"I talk about power, and how power is a drug and power over people is a drug and it’s hard to give up."
"A substantial body of evidence indicates that diet, toxic metals, food additives, insufficient nutrients, food allergy, lack of exercise can all contribute to criminal behavior. Evidence is mounting that a good diet makes a positive difference when working with some offenders."
"Our estimates imply that the 42% drop in the natural gas price in the late 2000s, mostly driven by the shale gas boom, averted 12,500 deaths per year in the United States."
"Participants (60.55%) experienced unexpected or increased medical expenses (17.69%), job loss (13.64%), pay reduction (11.85%), and death of a family member (9.09%). Pay reduction and increased debt were associated with moderate hunger; death of a family member, pay reduction, and increased debt were associated with severe hunger."
Lung Cancer to Avoid Severe Hunger
"In unadjusted models, annual household income <$15,000, non-urban residence, lack of health insurance, unstable housing, heavier food pantry reliance, fair or poor adult health, adult anxiety, and adult smoking to reduce hunger pangs were all positively associated with VLFS-C."
Fast Food = Fast Death
"Survey respondents had 8 ± 7 fast-food outlets within 2 miles of their home. Individuals living in close proximity to fast-food restaurants had higher BMIs, and lower fruit and vegetable consumption."
Happy Meal = Psychiatric Distress & Violence
"Consumption of fast food has been linked to psychiatric distress, violent behaviors, and impulsivity in adolescents."
"The analysis found that liquor stores are disproportionately located in predominantly black neighborhoods, even after controlling for census tract socioeconomic status."
"At equal levels of poverty, Black neighborhoods had the fewest supermarkets."
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i bought a cheap squishy toy and it smells like something i should definitely not be inhaling at all (kind of like gas/petrol but more factory-plasticky? i'm a retail drone not a chemist) and, of course, it was made in china.
("of course" not so much because of the price or quality but because everything is. at every price range and standard, tbh. i'm not trying to say everything made in china sucks. for the tumblr-pedantic record. rip to the workers in the stinky plastic factory though. :/)
so i was like "if this was made in america i could figure out where. we put the company address on everything here. but can i do that with an overseas company?" and the answer is yes maybe (i found the import/middleman companies and there are "trading" websites that track this stuff) but also no because i can't read mandarin. (sorry ancestors)
anyway that's how i find out about this place
yiwu "market" aka "international trade city." alleged "world's largest wholesale market." the mall to end all malls. this place sells stuff to the entire world by the shipping container. didn't even slightly exist in 1980; now does billions of dollars in trade annually which supports a city of 2 million people. which previously was just. like. a farming village.
(btw take this info with a grain of salt *please* i got it from youtube, google and wikipedia and i'm existing in an incredulous sleep-deprived haze)
literally miles of showrooms of every random manufactured item you can imagine. toys, clothes, electronics, household goods, christmas decorations...
i cannot stress enough that we do not have this kind of thing here. (... do we?) but. we have the stuff. this is where all the stuff is from. all roads lead to yiwu, apparently
sometimes you just get reminded... world big. but also. world interconnected. not so small after all. but so connected.
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