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Gigs & Bytes: Black Gets Viral
It’s all part of “No Free Lunch,” a short film appearing on viral video sites such as YouTube. The vid is the first of a series of films starring entertainers and focusing on income inequality and perceived economic injustices in the United States.
“No Free Lunch” targets Henry Kravis, co-founder of private equity firm Kohlberg Kravis Roberts & Co., which specializes in leverage buyouts. In the film, Black lambasts Kravis for buying into companies and then allegedly running them into the ground only to scoop them up at bargain-basement prices.
“They buy companies around the world … not just here. Put a buck in, and the company they’re buying puts, like, nine bucks in,” describes Black while sitting at a diner’s lunch counter. “The company they’re buying goes into debt … so they can buy the company. Somebody explain that math to me.”
But Lewis is just getting started, as the comedic master pumps up the volume and digs deeper into his nemesis.
“Then they make a ton of money,” continues Black. “How do they do that? By downsizing and doing some things. But the worse thing is, they end up letting go of some workers. They let go of the people who actually do the work.”
Aside from laying off workers, Black is also ticked at Kravis’ blocking of efforts to raise the tax rate on carried interest, which is the share private-equity partners take in from deals that make money. Currently, the carried interest tax rate is 15 percent, but proponents of raising the tax want to see it set at 30 percent.
But Black doesn’t spend all his ire on Kravis. He has plenty to devote to Bear Stearns, as he slams the investment banker and brokerage company for its role in the sub-prime mortgage debacle.
“These guys made a ton of money,” says Black. “And what’s worse is that the taxes that they have to pay – the money they make back from their investments – the taxes they pay on that are less, rate-wise, than for a teacher that makes $50,000 a year. That’s extraordinary.”
But Black doesn’t stop there, for the comedian goes on to diss what he maintains executives like Henry Kravis do with all the money.
“Do they build a new school?” asks Black. “Do they buy football uniforms for kids? No! Instead they get a ninth Arabian horse, or a new townhouse in Hooblaha.”