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John-Delaney

Everyone in Maryland Will Lose if Delaney Wins

 Who is John Delaney?

A Congressman from the second most gerrymandered state in the country.  The 3rd richest man in the House of Representatives who made his fortune by avoiding taxes and making risky mortgages and loans to nursing homes, surgery centers.  The founder of the CapitalSource Bank.

Congress for Delaney is like a cookie jar he has been serving on the financial committee  despite the fact that the banker has major stakes in the financial sector among them $65 million in CapitalSource and $15 million in Congressional Bank.  The Wall Street, banks and real estate companies  have flocked to Delaney with their generous contributions.

 

Crony Capitalism to benefit the connected

Delaney a son of electrician, made his money through connections and other people’s money.  ”For $15,000 he bought a home health care operator but realized the real dough was in lending to these outfits, not running them. Supported by longtime mentor John Rowe, his uncle and former chief of insurer Aetna, Delaney started HealthCare Financial Partners in 1993. He got $25 million to help finance the business after a friend introduced him to Thomas Steyer, founder of Farallon Capital Management , a $16.4 billion hedge fund. Delaney took HealthCare Financial public and sold it in 1999 for $493 millionto Heller Financial (now part of GE Capital).”   He used the profits to start CapitalSource bank.

As the financial system begun to show its first cracks in the middle of the last decade “and regional banks trimmed loans to small companies, Delaney stepped in . . . . Delaney concentrated on nursing homes, surgery centers, physician practices and the like.  Because he knows these sectors, he can move quickly and charge a bundle, as in the case of nursing home operator Senior Health Management, which had 30 days to purchase 40 nursing homes that Kindred Healthcare”.  Forbes magazine called Delaney a “Loan Shark” because “ John Delaney has made a bundle lending money at high rates to small businesses. He’s also pretty good at avoiding taxes.”    The 2008 financial crisis was caused by similar practices in home mortgage lending that cost people their homes.  However, Delaney emerged from this period a very wealthy man.  As of 2014, his net worth was $240 million.

 

Delaney’s idea to generate revenue by taxing the air

In May of 2014, Delaney introduced an innocent sounding “State’s Choice Act” that would have given “states the option of imposing a state-level excise tax on carbon emissions” in order  “ to generate new revenue”.  Already familiar with high rates from his banking days, he wants to tax the air at the following rate: an “ initial rate of the state excise tax at $20 per metric ton of carbon-dioxide-equivalent emission and increase the fee annually at a rate of 4 percent points above the rate of inflation.”

 

Delaney’s “money laundering vehicle” bill

When it comes to infrastructure Delaney has own vision.  At first, he introduced H.R.2084, the Partnership to Build America Act and, though it didn’t move through Congress in first round of 2014, he re-introduced it again in 2015. Though styled as an infrastructure bill, it didn’t pass because his bill would have major implications on the entire tax system.  His “infrastructure” bill would have given even more incentives for major multinational corporations to evade taxes and bring back their earnings through Delaney’s “money laundering vehicle” bill that banks like Delaney’s would benefit.  Under Delaney’s bill, an American Infrastructure Fund (AIF) would be created that would be “funded by the sale of $50 billion worth of Infrastructure Bonds which would have a 50 year term, pay a fixed interest rate of 1 percent, and would not be guaranteed by the U.S. government.”  According to the Economic Policy Institute, it would require the federal government to grant 70-100 billion of tax breaks to multinational corporations. “To meet the $50 billion funding goal through the bills’ proposed mechanism would require the federal government to grant about $70 billion to $100 billion in tax breaks to multinational corporations.”

 

Delaney’s definition of the Second Amendment

Unlike Bernie Sanders and Donald Trump, Delaney wants to rewrite the Constitution.  On December 16, 2015, he co-sponsored   Bill H.R. 4269 to ban self-defense weapons (including handguns).   In contrast to confiscating law-abiding Americans, Delaney has sided with President Obama and the administration’s policy of supply weapons to various fanatical groups in proxy wars in the Middle East.

Because of redistricting by O’Malley administration to favor Democrats in predominantly Democratic Montgomery County, Washington D.C. suburbs and to suppress the rural blue collar working class counties, Delaney does not represent his constituents in rural areas that comprise most of the Maryland 6th Congressional District in Allegany, Garrett, Washington and Frederick.

In fact, he cannot even comprehend how people survive in new America.  The American dream is being destroyed by crony capitalism and federal policies.  The same Federal Reserve that favors the ultra-rich and punishes middle class, fixed income recipients.  The government refuses to acknowledge rising prices on life’s necessities like food and energy when it comes to calculate the social security and disability payments.

 

Delaney is a “free trade” man

John Delaney represents the one percent – the global financial elite and voted in favor of the Trans-Pacific Partnership (TPP).  Obama’s trade deal was written in complete secrecy with lobbyists, multinational corporations lawyers providing the details of the “free trade” agreement.

This “free trade” deal will put many more Americans out of work, adding to the already 94 million of Americans who are currently out of the workforce.  The American trade deficit is consistently high.   For example, the U.S. trade deficit with China is $343 billion for 2014; for 2015 it is  $365 billion.   Free trade has benefitted the big corporations, even though they are not the driving force of the American economy.  Small businesses, not large corporations are the back bone of the economy.  Large corporations are responsible for only a small percentage of jobs in the US and account only for 13% of tax revenue. In contrast, small businesses are the driving force of job creation and they account of 46% of entire US tax revenue.

Delaney is a Democratic Congressman in one of the most gerrymandered states who is in politics to serve his own interests and the interests of similar financial elites.  His ambitions have led him to run for Congress again this year and that ambition will likely lead him to run for Governor of Maryland in 2018.  Everyone in Maryland will lose if Delaney wins.

 

 

Photo from My MC media website






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