“Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security. —”The Declaration Of Independence
Since the “recession” began in 2007 we have lost over 9,000,000 jobs. However, the job market began shrinking before that with the quiet and consistent transfer of jobs by large corporations to other countries where the labor costs were much cheaper. So predicting how long it will take us to get to a place where the economy is healthy and our lives once again feel secure requires certain knowledge. It is easy to go back and figure the rate at which we lost the jobs. So the first thing that we need to do is know how many jobs will be added each month and of course, when this adding will begin. I am no economist, but I do know that we can’t solve for x if x is all that we have.
Our jobless rate and the rate at which we increase jobs is solely in the hands of the major corporations that have already proved they have no interest in anything that does not increase profits in the short term. The largest corporations, those that have replaced American workers with either computers or just outsourced them would have to return the jobs to American workers. Once those jobs were returned, the income tax paid by those workers would begin to flow into the Treasury. These workers would once again require and be able to pay for the goods and services provided by the small business owners which in turn would need to hire additional workers. Businesses that were once built to service employees of the larger businesses would once again be able to open up, thereby employing more workers. This would deliver more income tax to the government and more money circulating in the economy, which would bring more jobs.
However, the largest corporations. those having the ability to hire the largest number of people in the shortest period of time have proven themselves too consumed by greed and addicted to wealth and power to to consider giving anything voluntarily. It would require the government doing something like changing the tax laws that give them so many breaks and loopholes, and connecting tax breaks to hiring employees, maintaining employees, and perhaps providing health benefits. This would bring the workplace back to where it once was before the cancer of greed was so widespread. But this is not going to happen, there is no way for a government controlled by the corporations to turn around and do anything that big business does not want.
The argument that the rich will not hire if we increase their taxes is moot, since they have not hired even though regardless of their tax rate, they have so many loopholes that they barely pay any taxes and still these corporations only increased their profits by decreasing their American workforce. In fact, the following article shows that the more incentives we give them the more they take from us.
How Corporations Built to Loot Lobby to Win
Posted on October 4, 2011 in Inequality news, Legislation, Taxes
Some of America’s most flush corporations are demanding a tax holiday on their profits sitting offshore. But the last holiday, a new Institute for Policy Studies report makes clear, produced a nasty hangover.
America Loses: Corporations That Take “Tax Holidays” Slash Jobs
Need a job? You might want to dial up WIN America, the business lobby that’s calling on Congress to declare a “tax holiday” on the profits U.S. firms have sitting overseas.
WIN America — short for “Working to Invest Now in America” — didn’t exist until earlier this year. Since then, the 18 major corporations and 24 trade associations that make up the group have spent a remarkable $50 million on their “tax holiday” campaign. They’ve hired, news reports last week revealed, 160 lobbyists.
Now that’s job creation. Of course, your shot at getting one of those jobs will rise enormously if you happen to be a Capitol Hill insider. The WIN America new hires include at least 60 former staffers of congressional leaders — with 42 of those formerly employed at the House Ways and Means and Senate Finance Committees, the two panels that write up all America’s tax laws.
Why does WIN America need all these insiders? To get a new “tax holiday” into law, the corporate giants that make up WIN America are going to have pull an inside job. WIN America’s proposed “tax holiday” may be the most outrageously rich people-friendly piece of legislation now pending before Congress.
That’s not, of course, how WIN America’s small army of lobbyists is positioning the measure. They’re claiming that corporations will “repatriate” all those profits they have overseas as soon as Congress gives them a tax “incentive” to do so. Those repatriated dollars, WIN America pledges, will help create jobs in America.
In theory, that sounds good. But we don’t have to depend on theory to gauge the value of a corporate tax holiday. We can look to past practice. Incredibly recent past practice. Congress, turns out, gave Corporate America a tax holiday on overseas profits just seven years ago, in 2004.
That tax holiday handed 843 U.S. companies a tax break that cost the U.S. Treasury $92 billion. What did American taxpayers get back? Not much. In fact, the Institute for Policy Studies revealed last week, not anything at all. Most of the firms that claimed a tax holiday in 2004 went on to reduce their workforces.
Tax holidays don’t create jobs. They do create windfalls for top corporate executives.
The new IPS report, America Loses: Corporations that Take ‘Tax Holidays’ Slash Jobs, looks at the 58 corporate giants that together accounted for almost 70 percent of the overseas profits repatriated after the 2004 tax holiday.
These 58 job destroyers — led by Citigroup, Hewlett-Packard, Bank of America, Pfizer, Merck, Verizon, Ford, Caterpillar, Dow Chemical, and DuPont — went on to shed almost 600,000 jobs after their tax holiday tax break.
But don’t these companies have a perfectly reasonable defense? Haven’t we experienced a Great Recession since 2004? We certainly have. But these 58 corporations aren’t hurting. These firms are currently holding over $450 billion in spare cash.
Of the 58 corporations that the new IPS report puts under the microscope, notes report co-author Scott Klinger, only eight reported losses between 2008 and 2010 — and 43 have registered profits every single year through Great Recession hard times.
“If companies were struggling, and unprofitable, then dramatic downsizing might be warranted,” adds Klinger. “But when companies are prospering, sitting on record levels of cash and saying they need tax cuts to hire workers, their argument makes no sense.”
Tax holidays, on the other hand, do make sense for top execs. A huge share of the overseas profits these execs generate come, the new IPS report notes, “from accounting acrobatics that shift profits generated from sales in the United States to foreign tax havens where corporations face little or no income tax.”
Tax holidays give these executives a second bite at the tax-avoidance apple. They don’t pay taxes overseas or, thanks to tax holidays, back home either. Tax holidays, as IPS report co-author Chuck Collins puts it, give preferential treatment to companies “built to loot” over companies “built to last.”
The new IPS America Loses study suggests a variety of steps we ought to be taking to end this preferential treatment. Passing one key reform bill now pending before Congress, the Stop Tax Haven Abuse Act, would shut off most of the tax loopholes that encourage profit shifting overseas — and raise an estimated $100 billion a year.
Congress can do a great deal, the new IPS report sums up, “to strengthen the U.S. economy and create and protect jobs.” But a “tax holiday” that rewards CEOs who pile up profits by shedding jobs and sashaying around the tax code only strengthens — and protects — our most shameless corporate looters.”
So, we are at the mercy of the greediest and most shortsighted people in the country. These are the same people, who guarantee their profits by investing in political candidates who, having only two years before the next election can only represent their benefactors and never have the time to represent their constituents. Our government has been successfully arranged by those with special interests, to be capable of only doing nothing. It is called a two party system, however, it is more like five parties working under the umbrella of two. This assures our failure just as does any tribal system – no union, no success.
We live in the deeply divided states of America. So divided, that the needs of the many are lost to the needs of the few. The corporations have the government so deeply in their pockets that there is no way out so long as our government is set up to promote the continued intrusion of corporate influence.
“A State divided into a small number of rich and a large number of poor will always develop a government manipulated by the rich to protect the amenities represented by their property.”
British political theorist (1893-1950)
There is no lobby for the people…oh, of course, it is supposed to be Congress. This lobby is new. It is happening while we are all talking about the deficit and building the economy. The corporations cheat the government, sorry, I mean cheat the people with a growing sense of entitlement. It is the government that prostitutes itself to the corporations that was and is continuing to be responsible for the destruction of this country. These Congressmen are totally aware of all that these corporations are doing. They support what they are doing, fighting any jobs bill that prevents the following from happening:
The Massive Rewards for Corporate Tax Dodging
Posted on August 31, 2011 in Inequality news
Corporations don’t dodge taxes. People do. The people who run corporations. And these people — America’s CEOs — are reaping awesomely lavish rewards for the tax dodging they have their corporations do.
The latest annual executive compensation report from the Institute for Policy Studies, released today, tells an old story — with a stunning new twist.
The old story: The pay gap between what CEOs and workers in the United States take home continues to widen. Last year, S&P 500 CEOs walked off with 325 times more pay than average American workers, up considerably from the 263-times gap in 2009.
The new twist: Many of America’s major corporations are now actually paying their CEOs more in compensation than they pay in federal taxes.
“Ample evidence suggests,” notes the new IPS report, Executive Excess 2011, “that CEOs and their corporations are expending considerably more energy on avoiding taxes than perhaps ever before — at a time when the federal government desperately needs more revenue to maintain basic services for the American people.”
Among the report’s other key findings:
Of last year’s 100 top-paid corporate CEO, 25 took home more in pay than their company paid in 2010 federal income taxes.
• Of last year’s 100 highest-paid corporate chief executives in the United States, 25 took home more in CEO pay than their company paid in 2010 federal income taxes.
• These 25 CEOs averaged $16.7 million, well above last year’s $10.8 million average for S&P 500 CEOs.
• The 25 firms that paid their CEOs more than Uncle Sam last year reported average global profits of $1.9 billion. Only one of the firms reported negative global returns. Eighteen of the 25 firms last year operated subsidiaries in offshore tax haven jurisdictions. The firms, all combined, had 556 tax haven subsidiaries.
• The most profitable of the 25 firms: General Electric. GE last year ranked 14th among U.S. firms in global profitability. GE received a $3.3 billion tax refund, despite reporting a whopping $5.1 billion in U.S. pre-tax income.
• Of the 25 companies that paid their CEO more than Uncle Sam, 20 also spent more on lobbying lawmakers than they paid in corporate taxes. Eighteen gave more to the political campaigns of their favorite candidates than they paid to the IRS in taxes.
How can this happen? It happens because there has been a consistent effort to dumb down America. The public schools are so bogged down with too many students, too few teachers and so many tests that have to be passed by the students in order for the schools to get their funding, that they only teach students to memorize, and no longer teach them to think. Why, in such a rich country, is the education of the children who represent our future so low on the list of priority? The only logical reason is that so long as we keep turning out generations of Americans who can memorize what they are told, but not think, discern, or question the information given to them, the powers that be can manipulate and control the government as much as they want.
THINK, PLEASE, then send your prayers and support to those courageous men and women who are marching for change, marching to be counted, marching to insist that the American Dream be return to it’s rightful owners, the American People and…marching for life, liberty and the pursuit of happiness.
And let your congressman know that you know what he or she is doing and will not stand for it.