Another Fat Cat threatens to 'Go Galt'

[JHB]

Last edited Mon Aug 20, 2012, 02:37 PM - Edit history (1)

There's a full-page ad in the New York Times today (on page A5, no less) titled "Why this fat cat likes Obama's tax plan". Signed by one Norman Lizt of La Jolla CA (PO Box 1423 - right there in the ad), it's six paragraphs of "boastful humility" (he "certainly doesn't qualify for the Forbes 400 Richest Americans, but has had "income averaging close to eight figures annually for the past seven years&quot .

(It's a print ad, and I can't find a link to an electronic version, but I'm sure someone will scan or transcribe it soon enough. I'm only going to type out so much right now.)

"Assuming Barack Obama wins reelection and successfully achieves his redistributionist tax agenda (with 39+% marginal rates plus a 3.8% tax on investment income plus substantially higher dividend and capital gains rates), I will find myself, when my high California taxes are added in, at a marginal rate of taxation well over 50%. This represents the crossing of an invisible threshold to me and is entirely unacceptable."

The rest is saying how he would then shutter his private equity firm, buy short-term treasuries which currently have low interest and thus would create little income for him to tax, how his poor, poor highly-paid employees would be let go, cut his charitable giving, and basically take his marbles and go home, so there!

I say, let him! If his business is really doing so well, someone will go after that money, even if it isn't quite so lucrative as "close eight figures annually". That's still multiple millions. I'm sure someone will pursue those opportunities. That's a little thing we call capitalism.

Unless there is more than one highly successful private equity firm in La Jolla run by a man named Norman Lizt, he's around 70 years old and has been in this business for a long time, long enough that he was in his 40s before Federal income taxes fell to levels he now calls "redistributionist", before Bush pushed through his budget-breaking cuts.

So Go Galt, Mr. Lizt! If you're getting into a snit because it becomes a little harder to redistribute wealth into your pockets, then by all means do so. You've gouged enough.

On edit: corrected the part regarding what "nearly eight figures" meant. Doesn't change my point in any significant way.

[Norrin Radd]

1. kr

[reformist2]

2. How sad that any of these billionaires think they are crucial to society.

[Taverner]

20. I know. I'll beleive it when they invent a perpetual energy machine.

Until then.....good luck with the Libertarian Pixie Dust!

[justabob]

3. do it, I dare you

I wish these fuckers *would* go galt. I doubt most people would even notice.

[independentpiney]

4. Funny how they'll go on about how anybody can be replaced

without realizing it applies to them as well

[Ikonoklast]

14. "The cemeteries of the world are full of indispensable men."

- Charles De Gaulle.

[Major Nikon]

5. Bob the Angry Flower

[n2doc]

6. Private Equity= leech

Leave. Don't let the door hit you ass on the way out. He serves little useful purpose and I suspect he overstates how many people he employs and how much they are paid.

[supplysideeconomics]

7. Ya just don't get it

Millionaire examination of raised taxes on the rich such as New York State’s Millionaire’s tax, the revenues from those individuals actually decreased because those people left New York State to avoid tax hikes! Even Paterson admitted the failure of the Millionaire tax:

“Similarly, New York enacted a “millionaire tax” that raised tax rates on all residents making more than $200,000 a year. However, since New York implemented their so-called millionaire tax its state revenue has declined by 9 percent. According to New York Governor David Paterson:

We increased the income tax for millionaires last year. We projected that we would get $4 billion and we actually got well short of it. Tax the rich, tax the rich. We’ve done that. We’ve probably lost jobs and driven people out of the state.”

You missed Mr. Lizt message. We live in a global economy. He can be anywhere in the world at do buisness...tax the rich too hard and they will just leave. To your point of "so GO Galt". So where would you getting your taxes if the rich got up and left...from you? In Mr. Lizt's case, ( if his numbers are accurate) with CA tax he would be at 50% tax base??? So, your ok with the goverment taxing 50 cents of every dollar in your pocket? Why in the world would I create or keep a small buisness? So I can give away 50% of my profits even after paying for my employees??? I take all the risk and the goverement gets 50% of the reward?

Governer pattersons "millionaire tax" SHOULD have used as an example....They will just leave.

[hifiguy]

9. Enjoy your stay.

Do I smell pizza nearby?

[HangOnKids]

30. Yes Pizza with A Topping Of Horseshit!

[jberryhill]

13. I'll see them off at the dock and wave goodbye

[bullwinkle428]

15. Why has there not been a mass exodus of these "job creators" to the libertarian

paradise of Somalia? It seems like that place would be utopia to someone who prioritized an incredibly weak central government and minimal to zero taxation!

[Ikonoklast]

16. He produces NOTHING.

Lizt is a Taker, a parasite on those that actually produce Wealth.

You confuse Wealth production and the accumulation of money, they are not the same thing.

[EOTE]

21. Ummm, you are aware that supply side economics has been tried numerous times, right?

And has failed miserably each time, right? Surely any thinking person would know this. And your ignorant drivel regarding the Laffer Curve is laughable as well. Marginal tax rates were far, far higher in the past and somehow the rich still thought it was worthwhile to live in the U.S. Please, let them leave. Any idiot millionaire who'd leave the U.S. because their tax rate is too high would not be missed in the slightest. Let someone who isn't quite so idiotic take their millions instead.

[SomethingFishy]

22. So what you are saying is..

That we live in a global economy and people will just do business where it's cheaper. Instead of re-investing in the country that allowed them to freedom, and the tax breaks to become as rich as they did they will just "take their money elsewhere".

You are saying that "Mr Lizt" is an unpatriotic, greedy asshole that just used America as a place to get rich, and will now go to whatever country offers him the most money, leaving behind less than what was here when he arrived.
You are saying that you value money more than than America.

Good luck with that strategy.

[sibelian]

29. Then they can leave.

What makes you think their staying is of any benefit to the country? All they do is fuck about with the legislature for their own benefit. It's THEIR stupid hubris that screwed up the economy in the first place.

[nadinbrzezinski]

32. You will like Somalia. I hear Mogadishu has nice beaches

as long as you do not mind the cross country fire fights

[JHB]

33. Am I "ok with govenment taxing 50 cents of every dollar in your pocket"?

You don't understand marginal tax rates, do you? (yeah, he's gone, but there's always more like him)
It's the rate paid on income above a certain level, not on every cent.

Am I OK with marginal tax rates at 50%? Considering that marginal rates of that much or higher (just Federal, not even counting state taxes!) were the law of this land for over 50 years, I'd have to say "yes". It's not like it's some airy-fairy theory -- it's what was in effect from 1932 to 1986, from getting us out of the depression, to fighting WW2, to the great expansion of the middle class (and gasp! we still had rich people!) and all but the last handful of years of the Cold War. We can debate the actual rates chosen for an updated version of that system, but don't pretend you don't know damn well that we build enormous wealth in this nation with "redistributionist" tax rates. Unless you're not pretending and are actually that ignorant.

Mr. Lizt's "inviolable threshold" didn't even exist until the Berlin Wall was falling.

I do thank you for mentioning "if his numbers are accurate", because I'm pretty sure he doesn't pay anywhere close to 50% in taxes. Mitt Romney's in the same field, and he's under 14%. George Romney, in 1967, paid a hair under 37%, and that was when he was nominally well into the range of the top marginal rate of 70%. so even back then there were ways to shelter income from taxes, and by all accounts he was considered an upstanding guy. Maybe Norman should travel a tad less and pay for a better tax lawyer.

[hifiguy]

8. Don't let the door hit you on the ass when you leave,

shitheel. I don't want your ass prints on the door.

Good riddance to the worst sort of rubbish.

[datasuspect]

10. see ya later alligator

[librechik]

11. who cares? He's contributing nothing to the US, except his arrogance and scripted views

Leave, and take the rest of the 1% with you. You do so little for our tax revenue I'm sure we can make up the difference.

[Hydra]

12. I hope they all go Galt

The don't actually do any work here, so let the ticks leave. I'll be happy to pay the tax rate he doesn't want to pay for just a fraction of his 8 figures.

[sammytko]

17. Close to eight figures annually is less than ten million 10,000,000

Not tens of millions, so yeah, he can go.

For all we know he might be including the cents, so it's close to 100,000.00 one hundred thousand.

[JHB]

24. Mea culpa. At nearly 10 million, it's still big enough that others will take up the opportunity

Will adjust the original, though

[maxrandb]

18. Oh please Mr. Litz...Go Galt! But, before you do

The 99% would like to discuss a little bill for the free-ride you've had for the past 40 years...and Payment is due before you head off to your Ayn Randian mountaintop utopia.

[HiPointDem]

23. one less scamming 'investor' = good news for america.

[reformist2]

25. Ayn Rand has turned the Fat Cats into Fat Heads.

They actually think they are the ones who make society function! LOL!

[Lint Head]

26. Dear Mr. Lizt

You will eventually become dust and your booty will be scattered to the wind. Rose Bud

[Lint Head]

27. Go Galt!! Should be our chant.

[Piedras]

28. La Jolla Cove Investors

La Jolla Cove Investors is Mr. Norman Lizt's investment company, in La Jolla, CA 92037. The company website is LaJollaCoveInvestors.com Interestingly, its close to Mitt's La Jolla Shores beach house. Wonder if they're acquainted?

[lajollaresident]

34. Check your facts

first of all, I know exactly where Romney owns a second house in La Jolla and its NOT La Jolla Shores. Maybe you should get your facts straight?

Additionally, the majority of the La Jolla community is registered under the Democratic party. So why on earth would you even make a claim that simply because Romney owns a vacation home in the neighborhood he has an impact on the voting class? Try not to be to audacious in your next remarks and speak for those who you do not know.

[snooper2]

36. Damn that was quick, how do I figure out if somebody is dissing Plano somewhere on the Intertubes?

real time?

[Piedras]

35. Corrected, Mitt's La Jolla beach house is between WindandSea and Marine Street beaches

I stand corrected. Thanks for alerting me to my geographical error. Mitt's La Jolla beach house is not in the La Jolla Shores. Thought it was there because of the wide sandy beach in front. Instead, his "second house" (or 3rd, or 4th?) is on the beach front between La Jolla's Marine Street and Wind and Sea beaches. Prime local(s) beaches.

Mitt's house is close to La Jolla Cove Investors who are located in the older "village" area of La Jolla, close-by beautiful La Jolla Cove. It's plausible that they could know each other socially and/or from their (seemingly similar) lines of work.

Founded in 1995, La Jolla Cove Investors has entered into more than $400 million dollars in financing agreements to publicly traded companies. We seek to partner with businesses looking for capital and strategic advice to expand their current operations. Our expertise lies in creating flexible financial structures which enable a company to grow without impacting working capital needs.

Once an investment is made, we add value by providing financial resources, industry knowledge, strategic advice, and M&A implementation. We leverage our relationships with investment banks and established financial intermediaries to provide our partners with multiple strategic options. Our aim is to not only write a check, but more importantly, to actively help our partners achieve their goals.

Our team is ethical, creative and highly experienced. We help companies get to the next level - that is our business.

I made no statement about La Jolla voters. Very good to read Democrats are the local majority.

A former Wind and Sea and Marine St. whoomper.

BTW, LJR, welcome to DU.

[nadinbrzezinski]

31. Well it does make sense when you see what his company does

courtesy of Bloomberg, I give you La Jolla Core Investors

Company Overview
La Jolla Cove Investors, Inc., Advisory Arm offers financial advisory services. The firm provides mergers and acquisition, business development, and strategic advisory services. Additionally, it offers asset backed loans, equity and debenture financing, and stock loans services. The firm is based in La Jolla, California. La Jolla Cove Investors, Inc., Advisory Arm operates as a subsidiary of La Jolla Cove Investors, Inc.
1150 Silverado Street
Suite 220
La Jolla, CA 92037
United States

I am sure, him and the Romneys are GOOD FRIENDS... not in the same category, but this is exactly what Bain does.