Third Party & Independents Archives

Corpocracy: Never mind what we told you, listen to what we're telling you now

I know you’ll find this incredibly difficult to believe, but there’s a lobbyist organization in Washington DC that’s pushing a bunch of Republicans around like household servants, demanding that politicians grant big business yet another “tax holiday” to protect their off-shore profits. It would sound incredulous if it weren’t happening on a daily basis, wouldn’t it?


Companies like Google, Apple, Pfizer, and General Electric have parked a staggering $1.4 Trillion in pure profits in offshore tax havens. They've stowed those funds abroad primarily to avoid having to pay federal taxes on that income. And now they've decided that they're entitled to a government-backed guarantee that those profits won't be taxed if they relocate the money back inside United States boundaries.

Instead of paying the statutory corporate income tax rate of 35 percent -- or even the "effective rate," which for most global companies, is closer to 11 percent -- they're urging Congress to let them do this at a tax rate of 5.07 percent.

You know those 47-percenters that Republicans complain don't pay any taxes? THEY are taxed at more than 5.07 percent.

The corpocracy is telling Congress they need a "tax holiday" to free up badly needed capital to invest in right here -- creating jobs at a time when the U.S. economy is sputtering. Yup ... that's right: The (cough cough) "job creators" won't create any jobs unless Congress gives them *MORE* tax loopholes.

They've formed a lobby front called the "WIN America Coalition" to make their case, spending over $50 million and hiring over 42 lobbyists that previously worked as Congressional staffers -- ALL of whom served on select Congressional tax writing committees. These lobbyists already know that virtually every GOP members is already in their pocket and will already automatically support any tax cut, even in their sleep, so the lobbyists are focusing on Democratic members, trying to convince them that this *ISN'T* more corporate welfare.

The coalition's corporate lobbyists argue this would be a win-win stimulus for the economy and a low-cost way to growth and jobs that both Republicans and Democrats could support.

The problem with these WIN America promises is this: They are lying their collective asses off. They waged this EXACT same campaign in 2004 with the same promises that they would create jobs. They got their tax breaks, they got their incentives. And America lost almost 3,000,000 jobs when the outsourcing piranha attack started under Bush's "Jobs for America" program. We, the taxpayers, as usual, got screwed.

According to a new report, "America Loses: Corporations That Tax Holidays Slash Jobs," most of the companies that claimed a tax holiday in 2004 dramatically reduced their national and global workforces. In fact, 58 of the large corporations that took the 2004 tax holidays shed almost 600,000 workers in subsequent years. This downsizing was not a result of the economic meltdown because the vast majority of these companies prospered. Today, these 58 companies maintain combined cash reserves of more than $450 billion. There's nothing holding them back from investing in America. They're just CHOOSING not to, and once again crying for more cash in their bloated reserves.

Congress shouldn't be "fooled" again, but they will be. Taxpayers shouldn't get screwed again, but we will be. Limited incentives should go to activities that will create jobs, not another tax holiday for off shore tax dodgers. These companies are not in the business of creating jobs. Anyone who says otherwise is as full of sh*t as the corporate spokesman who lied through their teeth to us in 2004. They are in one business and one business only: Shifting as much wealth to their top managers and shareholders as possible.

There are other businesses out there -- small businesses and domestic companies rooted in local communities that should be the objects of our encouragement and support.

Unfortunately, a segment of corporate America and the puppets they control in Congress embrace a "built to loot" business model. They shift every possible expense off their balance sheet and squeeze their stakeholders, with the exception of top management and shareholders. They outsource and offshore jobs and engage in accounting gymnastics that would make Mary Lou Retton wince -- all for no other reason than to twist and trick and finagle their tax bills down to nothing. And the two-faced charlatans in Washington are only too happy to help them.

No matter what it costs ... us.

GOP proposes new "Corporate Tax Holiday" that *YOU* will pay for

Posted by Gary St. Lawrence at October 26, 2011 1:50 AM
Comments
Comment #331059

Gary,

So what is your solution? They have money, but refuse to bring it back in the country and face 35% taxes (or even 11%). So, from your perspective it is better for them to keep those funds in offshore-protected accounts and get 0%, than to offer this tax holiday and get 5%?

I’m truly not that informed on this subject, but simply from reading the above post it seems you are saying that the principle of the matter outweighs the 70.98 Million dollars in taxes the change would bring in. (Basic math of 1.40 trillion coming into America taxed at 5.07%)

Whether or not that money creates jobs or not, wouldn’t the $71 million be better than the $0.00 in revenue we are currently earning from this money?

Posted by: adam at October 26, 2011 11:05 AM
Comment #331061

Adam the 70 billion would be nice but then so would the 140 billion if they paid the 11%. The point is they are using “jobs” (which they have proven they will not create) as a subterfuge to fool us into allowing them to not pay their fair share.

From their viewpoint they can bring the money home but only roughly 90%. I say leave it parked corporate America or pay your fair share and use the money. But to our representatives I say counter offer with a 25% tax should these corporate thugs not create significant number of jobs in the next 2 years.

Posted by: j2t2 at October 26, 2011 12:04 PM
Comment #331075

Well, If I were a corporation (person) I too, would leave my $$ parked in foreign banks. With the prevailing globalisized economy there is no need for corporate spending stateside. Every consumer thing needed is coming from overseas at a price equal to or less what those goods could be produced in the states. Then there’s robots and efficient production lines. This country will not be needing more jobs until China/India etc starts to run out of workers. If there were a need for more mfcting/production/design foreign companies would be beating a path to the US to fill that need. They aren’t.

Two ways to put US workers back to work, IMO. Remove the cheap labor force from the country and/or invoke anti-trust law to bust up the big un’s, maybe get three or four companies for each one busted up.

We should expect the next round or two of protests to be quasi peaceful but, downstream there is going to be some broken glass, etc.

A 3rd party w/a diff pol - - - is highly recommended. See Republic Sentry Party for deails.

Otherwise - - -

Posted by: Roy Ellis at October 26, 2011 6:12 PM
Comment #331078

Perhaps a little extreme but, here is a good exemplar for the present economy. The world basically has two computer corporations; Microsoft and Apple. Eventually one will eat the other. The remaining corp will require about ten computer design engineers to stay current in developing new products. All those wanna be computer engineers being cranked out of university and we only need ten of them. But whoaa! While we need ten only one will come from the US while the other nine are hired from Japan, S. Kor, England, Germany, etc. May want to keep your grades up on this one.

Otherwise - - -

Otherwise, anti-trust Microsoft and the remaining computer design companies. Five for one, here in the US, in Europe, around the world. A guarantee for better, more innovative products, and lots of jobs for the folks who keep their grades up.

Posted by: Roy Ellis at October 26, 2011 7:59 PM
Comment #331089

Adam,

These are taxes already owed by US corporations. They have been simply deferred while the money reside offshore. It is a jurisdictional problem. Kind of a Mexican standoff.

This is not problem unique to the US. It is something that many countries are beginning to experience. The answer would seem to reside in an international agreement for some form of tax collection and exchange between countries which would prohibit corporations from denying their countries legitimate tax revenue.

Posted by: Rich at October 26, 2011 9:56 PM
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