Are you having a corporation over for Christmas this year?
Of course you’re not — all the more reason to sign the petition.
Are you having a corporation over for Christmas this year?
Of course you’re not — all the more reason to sign the petition.
RESHORING: Factories begin to shift back to US — Two-thirds of big US manufacturers have moved factories in the past two years, with the most popular destination being the US, according to a survey being released on Monday by Accenture, the consultants. The report provides some of the first industry-wide empirical evidence of “reshoring,” the trend of jobs once outsourced to low-cost emerging economies being brought back to the US. President Barack Obama has proposed tax incentives for companies that move their overseas operations back to the US and tax penalties for those that do not. “If you’re a business that wants to outsource jobs, you shouldn’t get a tax deduction for doing it,” Mr Obama said in this year’s State of the Union address. “No American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas.” Some 65 per cent of the senior executives questioned by Accenture said they had moved their manufacturing operations in the past 24 months, with two-fifths saying the facilities had been relocated to the US. China was the second destination for relocated factories, with 28 per cent, followed by Mexico with 21 per cent. […] The survey also reveals that US manufacturers expect China to overtake Europe as their second biggest market within three years. – FT.com || (original link is subscription only)
image above: From CTJ — the companies who are shifting their tax burden onto the rest of us (some have done so for a decade or more).
Think Progress reports that not only are corporate taxes at a 40 year low, despite what the GOP and Fox News want you to believe, but that 26 highly profitable corporations paid NOTHING in taxes last year. This is why we can’t have nice things.
Last year, Citizens for Tax Justice found that 30 major corporations had made billions of dollars in profits while paying no federal income tax between 2008 and 2010. Today, CTJ updated that report to reflect the 2011 tax bill of those 30 companies, and 26 of them have still managed to pay absolutely nothing over that four year period:
– 26 of the 30 companies continued to enjoy negative federal income tax rates. That means they still made more money after tax than before tax over the four years! …
– In total, 2008-11 federal income taxes for the 30 companies remained negative, despite $205 billion in pretax U.S. profits. Overall, they enjoyed an average effective federal income tax rate of –3.1 percent over the four years.
Amongst the 30 are corporate titans such as General Electric, Boeing, Verizon, and Mattel…. Continue reading
And here are a couple of facts from the CTJ report:
Had these 30 companies paid the full 35 percent corporate tax rate over the 2008-11 period, they would have paid $78.3 billion more in federal income taxes. Or put another way, over the four years, the 30 companies received more than $78 billion in total tax subsidies. Wells Fargo alone garnered $21.6 billion in tax subsidies over the four years, followed by General Electric ($10.6 billion), Verizon ($7.7 billion), and Boeing ($6.0 billion).
In 2011 alone, 24 of the 30 companies paid effective tax rates of less than 4 percent, including 15 that paid zero or less in federal income taxes in that year. For all 30 companies, the average 2011 effective federal income tax rate was a paltry 7.1% — only a fifth of the statutory 35 percent federal corporate tax rate.
Imagine the potential programs and services our country could have (health care for all, single payer), or the many programs and services that Paul Ryan and Mitt Romney might not even think about cutting, if corporations actually PAID a 35% corporate tax rate.
And with all this money they’re shoveling into their corporate bank accounts, from both profits and zero tax liability, where are the jobs? And why is the Republican Party trying to make the case that corporations need even more tax cuts and another tax loophole, like“repatriation holidays” for corporate stashes overseas?
A POLITICO review of annual reports and Securities and Exchange Commission filings shows that a dozen of the most vocal corporate critics of U.S. tax policy finished 2011 with more than $455 billion in cash, investments and other earnings held by foreign subsidiaries — up from $381 billion the year earlier.
The companies have avoided U.S. taxes on almost every penny of their international profits by keeping the money offshore.And nearly that entire haul has been designated by top executives of those firms as “permanently” or “indefinitely” reinvested abroad, partly because of the 35 percent U.S. tax rate companies must pay to bring home foreign money.
[…]U.S. multinationals have hired an army of lobbyists to sell the idea of a tax holiday to Congress, so they might repatriate a pot of overseas profits estimated at more than $1 trillion for as low as a 5.25 percent rate. The companies — along with the U.S. Chamber of Commerce — argue that repatriation would serve as an instant stimulus of sorts, allowing hundreds of billions of dollars to flow in to the economy.
Critics disagree. They say the proposal is bad tax policy.
As evidence, the critics point to a 2004-05 tax holiday that brought some $312 billion back into the U.S. Most of that was spent on dividends and stock repurchases — not building or hiring. Continue reading…
These corporations and rich CEOs need to remember that the rest of us don’t mind their success, we mind that they’re robbing us and the country blind for their profits. Or as Elizabeth Warren said, “There is nobody in this country who got rich on his own. Nobody.”
Broad statements on Fixing What is Wrong with Our Economy and Organizing and Growth sketch out a vision for the economy and for unions. To “fix what is wrong with our economy,” What we need now is an economic program as serious and far-reaching as the problem President Obama has correctly diagnosed. We must start by shifting the focus of U.S. economic policy from one of maximizing the competitiveness and profitability of corporations that happen to maintain headquarters somewhere on U.S. territory to one of maximizing the competitiveness and prosperity of the human beings who live and work in America. The AFL-CIO proposes massive “productive public investment” in education, energy, transportation, manufacturing, infrastructure and more, all paid for by letting the Bush tax cuts expire and imposing new or increased taxes on capital gains, financial speculation and income greater than $1 million. Related, we have to rein in the financial sector and expand and support manufacturing. Additionally, “it is essential that we tackle the problems of wage stagnation and economic inequality,” by increasing and indexing the minimum wage and reforming labor law, among other things.
This figures: Senate Republicans and two DINOs have introduced a bill to take away money that was designated to go to consumers as part of the Affordable Care Act, in the 80 / 20 ratio:
As part of the Affordable Care Act, health insurers must spend at least 80% of the money they earn from premiums on actually providing health care, with the remaining cash used to cover all administrative, advertising and payroll costs. Those insurers with plans that don’t follow this ratio are soon supposed to start giving the extra money back in refunds and discounts. But new legislation introduced in the Senate this week could jeopardize this,while giving insurance companies even more money to stick in their dog pillows.
The bill, introduced by Senator Mary Landrieu (DINO) of Louisiana and co-sponsored by John Isakson (R) of Georgia, Lisa Murkowski (R) of Alaska and Nebraska’s Ben Nelson (DINO), is intended “to preserve consumer and employer access to licensed independent insurance producers“ by eliminating insurance broker commissions from the administrative overhead.
Does that “intent” sound like bullshit to you? Does to me. Broker commissions not coming out of insurance companies’ overhead helps WHO exactly? That’s right. It helps insurance companies and those who receive commissions.
So under the current rules, an insurer that takes in $100 million dollars in premiums must spend $80 million on paying for health care and those broker commissions are included in the remaining $20 million.
But if this bill becomes law, those commissions — let’s just put a number of $3 million on them for this example — would no longer be part of the equation. That would mean the insurer would only have to spend $77.6 million on health care but would now have $22.4 million to use for its own purposes.
The National Association of Insurance found that altering the rule to remove broker compensation will result in a loss of more than 60% of forthcoming rebates for consumers.
Conservatives in Congress like Landrieu, Isakson, Murkowski, and Nelson just can’t stop themselves from fighting for the best interests of the corporations and the one percent.
And, by the way, this is part of Obamacare, part of health care reform, so would all the Republican base voters who hate, hate, hate Obama and the Democratic Party,and pay for health insurance, please explain how this new conservative
trick bill will work out better for them personally? I’d like to hear that argument.
“I don’t want to make black people’s lives better by giving them somebody else’s money. I want to give them the opportunity to go out and earn the money and provide for themselves and their families.” — Rick Santorum
[T]he people who benefit most from welfare programs are white people.
Among the poorest of the poor—single mothers, living below the poverty line with minor children to support 39.7 percent of AFDC clients are Black single mothers and 38.1 percent are White women with children. Food stamp recipients are 37.2 percent Black and 46.2 percent White. Medicaid benefits are paid to 27.5 percent Black recipients compared to 48.5 percent White clients. source
And which “people” (according to Mitt Romney) benefit from government welfare most of all?
In fact, in the last three years, 78 corporations had at least one year where they paid no federal income tax at all, while 30 corporations paid not a dime over the entire three years. Those 30 corporations paid nothing, even though they made $160 billion in profits over that period:
[…] These companies, whose pretax U.S. profits totaled $160 billion over the three years, included: Pepco Holdings (–57.6% tax rate), General Electric (–45.3%), DuPont (–3.4%), Verizon (–2.9%), Boeing (–1.8%), Wells Fargo (–1.4%) and Honeywell (–0.7%).
Instead of giving corporations “other people’s money” in the form of more tax cuts, loopholes and federal subsidies, shouldn’t we think about “giving them the opportunity to go out and earn the money and provide for themselves and their families“?
More tax cuts for the wealthy paid for with austerity for the rest of us. Go GOP!
The Republicans candidates’ economic agenda for the 1 percent.
“We used to have a deal: A rising tide lifted all boats. These days, a few gleaming yachts power comfortably past the wreckage of smaller vessels… executive pay at the country’s largest companies has more than quadrupled since the 1970s. Median wages have stagnated through much of that time and declined since the crisis.” — Ezra Klein
The CEOs have a point. Not on the tax holiday for overseas income — that’s a scam. But the U.S. could make it easier to do business here. We do need more high-skills visas. We do need to reform our tax code, reduce our deficit, upgrade our education system and repair our infrastructure. We even need to compete with the incentives these companies receive to relocate their factories and research centers; it’s a fact of the modern economy, and we can’t pretend otherwise.
But the self-pitying, self-righteous tone of these complaints misses the big picture, and makes the underlying problem worse: The rest of America doesn’t trust corporate America right now. The rich have been getting fabulously richer, corporate America is sitting on trillions in cash reserves, and where has that gotten the rest of the country? A shabby, jobless recovery in the early Aughts, followed by a credit bubble, followed by a crash in which ordinary Americans had to bail out Wall Street, followed by the worst economy in generations.
[…] That’s why corporate America’s solutions are looked on with suspicion. Executives say corporate-tax reform and more immigration would be good for the economy? Well, they said that about the Bush tax cuts along with financial deregulation, the rise in housing prices and credit-default swaps, too. But that era ended with Main Street a shambles and Wall Street richer than ever. Fool me once, and all that.
Anyone interested in the capital-gains tax and the marginal rate on income over $250,000 should spend an hour or two paging through the stories at WeAreThe99Percent. The blog, which posts pictures of people holding signs describing their situation, is a powerful primer on the very real sense of betrayal rippling through the country.
KEEP THIS IN MIND: do you immediately jump to the defense of the CEO’s right to make a huge salary? If so, understand that NO ONE disputes that right. So what do you suppose is the BASIC ISSUE after that knee jerk, ideological malarkey?
Romney’s line that “corporations are people,” which was defended by Palin and Rand Paul yesterday, along with the GOP debate in Iowa, should convince everyone that corporations are fully, 100% protected by the Teaparty GOP. No worries there.
If you’re a Republican / Teapublican base voter and you’re working- or middle-class, then you’re their useful idiot. If federal programs and services that you use need to be cut because there isn’t enough tax revenue coming in to pay for them, and you support this outlandish argument that the wealthy and corporations need MORE tax cuts instead of less, then you’re their useful idiot.
Romney, Palin and Paul all get something out of defending big corporations and their low, low tax rates: money. But if you’re a working- or middle-class peasant, you get nothing. And yet, unbelievably, you feel you’ve won something by paying more in taxes than profitable corporations and trust-fund millionaires, and by bringing home less of an income today than you could have three decades ago. The GOP and Fox and rightwing blogs and radio hosts all tell you who you should hate, who to fear (unions, gays, Muslims, libruls, the black president, etc), and you get to feel you’re in The Club when you comply. And that’s exactly how useful idiots are produced and exactly how big your reward will be in the end. Enjoy your club membership.
Mitt Romney’s message to Iowa (Video): “Corporations are people, my friends.”
Who won the debate in Iowa last night? Four possible choices:
Rand Paul defends Mitt: “I think we’re all corporations. All of us are corporations.”
Sarah Palin agrees with Mitt also, too: Corporations are people. “People pay the taxes.”
“So here’s what you should answer to anyone defending big giveaways to corporations: Lack of corporate cash is not the problem facing America. Big business already has the money it needs to expand; what it lacks is a reason to expand with consumers still on the ropes and the government slashing spending.” — Paul Krugman
Where are the jobs in America? In the pockets of corporate CEOs:
As most American families continue to struggle with high unemployment and stagnant wages, CEOs at the country’s 350 biggest companies saw their pay jump 11% last year to a median of $9.3 million, according to a study conducted for the Wall Street Journal…
For the surveyed CEOs, the sharpest pay gains came via bonuses, which soared 19.7% as profits recovered, especially in some hard-hit industries. … Net income rose by a median of 17%; shareholders at those companies enjoyed a median return, including dividends, of 18%.
Of course to be fair, we can’t generalize and say these corporations are creating ZERO jobs. There are probably tons of new jobs in China and India. Just not here.
I wonder when the teabaggers will wake up from the spell of their corporate masters and quit voting for the party that wants to annihilate the middle-class?
The very loud tea party Republican base won’t pay attention to the details of Ryan’s budget proposal or try to investigate it for themselves — Fox News and Rush Limbaugh will tell them everything they need to know. That’s how the very loud tea party Republican base will continue to support and vote for even more corporate wealth and power, ending the middle-class as we know it, all because of extreme CONSERVATIVE SOCIAL ISSUES.
Tea party Republicans claim to be all about the size of government and government spending and NOT about social issues. However, this latest fight over the 2011 budget and the extreme social conservative riders that their representatives in the House tried (and failed) to enact betrayed them. They screamed “Shut it down!” rather than compromise on items that really had nothing to do with spending and a budget. The GOP knows the chain they can always pull with this base is going to be variations of God, guns, and gays.
Mike Lux at C&L has a good summary of Ryan’s 2012 budget proposal, but begins with some common sense suggestions for reducing our deficit (emphasis mine):
I can get to a balanced budget a lot faster than that, and do it without dismantling Medicare and Medicaid, and without taking an axe to Pell Grants, Head Start, and meals for shut-in seniors and hungry children. Heck, Jan Schakowsky’s plan balances the entire budget except for interest payments on the national debt in five years. You can easily balance the budget in less than 10 years, even including those interest payments, simply by cutting the waste in military spending, reforming the government contracting procedures, ending tax loopholes for investment bankers and offshore companies, ending subsidies to oil companies and big agribusinesses, taxing speculative financial trades, and having millionaires pay taxes at the same rate they did under Ronald Reagan.
The Ryan budget has nothing — not a single frickin’ thing — to do with cutting the federal deficit. It is all about income redistribution, simple as that. If you take away the budget savings Ryan claims from projecting that the wars we are in will wind down soon, he has $4.3 trillion in budget cuts and $4.2 trillion in tax cuts. And I bet you can guess which fact comes next: the budget cuts are targeted almost 100 percent at programs that help low-income families and the working middle class, while the tax cuts are almost entirely directed toward the wealthiest 10 percent. Continue reading