David Cay Johnston

David Cay Johnston, a 2001 Pulitzer Prize winner and president of the 4,900-member Investigative Reporters & Editors, has edited a new anthology, Divided: The Perils of Our Growing Inequality (The New Press).

Recent Articles

Too Big to Fail. Not Too Strong.

Nomi Prins’s new book traces America’s propping up of banks since the robber barons.

F rom Andrew Mellon’s nearly 11 years as Treasury secretary under Presidents Warren G. Harding, Calvin Coolidge, and Herbert Hoover to our time, when Timothy Geithner went from financial regulator at the New York Federal Reserve to Treasury secretary to investment executive, journalists have often employed the image of a revolving door to describe the flow of bankers between Wall Street and the U.S. Department of the Treasury. But few know that the White House and the Treasury are, arguably, a single building. A tunnel connects 1500 Pennsylvania Avenue with 1600. Presidents use this passageway to slip visitors in and out of the Oval Office. Nomi Prins, in her new history All the Presidents’ Bankers , does not say it in so many words. But she shows that the tunnel from the White House to the Treasury extends, metaphorically, for 226 miles to Lower Manhattan. Prins digs into presidential libraries and national archives and mines a shelf of books. She also knows Wall Street from the...

We Shall Overwhelm

AP Images/J. Scott Applewhite
AP Images/J. Scott Applewhite F our years ago, the modern Tea Party seemed to emerge from nowhere, leaving journalists bewildered and the public with few reference points to understand seemingly spontaneous rallies by middle-class people seeking lower tax rates. A search for the phrase “tea party” in connection with “politics” in major newspapers yielded fewer than 100 mentions in 2008—and when the words did appear linked together, they suggested studied formality and decorum. The next year, they appeared more than 1,500 times, often connected to “protest demonstration.” But little was spontaneous about the new party. “Social movements that explicitly defend the interests of the rich and the almost-rich have been a recurring feature of American politics,” Isaac William Martin, a sociologist at the University of California, San Diego, reminds us in his new book, Rich People’s Movements: Grassroots Campaigns to Untax the One Percent . “Such movements shook the American polity before the...

Three Big Tax Lies

And two must-read new books that finally debunk them.

I f the last ten years of debt and jobs destruction have taught us anything, it’s that we must change our tax system and soon, or face economic disaster. Instead of maintaining our infrastructure, we are consuming it. Instead of investing in education and research with an eye to later wealth, we’re cutting our way to a poorer future. Yet concerning taxes, which finance our civilization and distribute the cost, three great lies permeate society, all of which delay our doing what needs to be done. The first lie, with a nod to comedic candidate Jimmy McMillan, is that the tax is just too damn high. The second lie is that if you cut the rates, revenues will increase. The third lie is that taxes have become too complex for even an Einstein to understand. Bruce Bartlett in The Benefit and the Burden and Martin A. Sullivan in Corporate Tax Reform demolish these lies with valuable primers, as complementary in their purpose as an easy chair and a reading lamp. Where ideological groups feed...