Tag Archives: taxes

April 8, 2011 · 11:41 pm

Tax Cuts for the Rich on the Backs of the Middle Class; or, Paul Ryan Has Balls: Matt Taibbi

Great article in Rolling Stone from Matt Taibbi.

I love is snarky tone and accurate facts…

Here is a brief excerpt and I encourage you to click the link to read the rest of it…..

Never mind that each time the Republicans actually come into power, federal deficit spending explodes and these whippersnappers somehow never get around to touching Social Security, Medicare or Medicaid. The key is that for the many years before that moment of truth, before these buffoons actually get a chance to put their money where their lipless little mouths are, they will stomp their feet and scream about how entitlements are bringing us to the edge of apocalypse.

The reason for this is always the same: the Republicans, quite smartly, recognize that there is great political hay to be made in the appearance of deficit reduction, and that white middle class voters will respond with overwhelming enthusiasm to any call for reductions in the “welfare state,” a term which said voters will instantly associate with black welfare moms and Mexicans sneaking over the border to visit American emergency rooms.

The problem, of course, is that to actually make significant cuts in what is left of the “welfare state,” one has to cut Medicare and Medicaid, programs overwhelmingly patronized by white people, and particularly white seniors. So when the time comes to actually pull the trigger on the proposed reductions, the whippersnappers are quietly removed from the stage and life goes on as usual, i.e. with massive deficit spending on defense, upper-class tax cuts, bailouts, corporate subsidies, and big handouts to Pharma and the insurance industries.

via Tax Cuts for the Rich on the Backs of the Middle Class; or, Paul Ryan Has Balls | Rolling Stone Politics | Taibblog | Matt Taibbi on Politics and the Economy.

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April 6, 2011 · 7:30 pm

10 of the Biggest Corporate Tax Cheats In America | AlterNet

I really don’t mind paying my fair share of taxes, but I find it hard to believe it’s fair that I pay more than these Corporations….

If you or I were running a small business and we kept one set of books showing how much money we were making and a second set for the IRS that painted a picture of an enterprise on the brink of bankruptcy, we’d end up behind bars.

But that’s standard operating procedure for corporate America. In fact, public corporations have to do it — the law requires that they keep one set of books for their shareholders, and another for the IRS. As tax journalist David Cay Johnston explained, “Many corporations routinely tell investors they incur millions in corporate income taxes, while the financial records they give the IRS show they owe nothing or are due refunds.”

In the records kept by the IRS, corporations cook the books “by using tax shelters, offsetting income with losses from years ago, and employing countless other devices that make them look like paupers to the IRS but money machines to investors.”We got a peek into this process last week, when the New York Times revealed that multinational giant GE is not only avoiding corporate income taxes this year, but is taking a “tax benefit” of $3 billion. According to the Times, the company’s “extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore.”

But of course, GE is not alone. Here are 10 other big corporate tax evaders (with an assist from an MSNBC analysis of leading corporate tax-dodgers). Keep in mind that neither political party ever actually cuts spending significantly, so every dollar these companies avoid paying is one that will come out of the paychecks of working America.

via 10 of the Biggest Corporate Tax Cheats In America | AlterNet.

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April 4, 2011 · 7:42 pm

Robert Reich: Why We Must Raise Taxes on the Rich

As usual, Robert Reich is the voice of reason calling from the wilderness…

It’s tax time. It’s also a time when right-wing Republicans are setting the agenda for massive spending cuts that will hurt most Americans.

Here’s the truth: The only way America can reduce the long-term budget deficit, maintain vital services, protect Social Security and Medicare, invest more in education and infrastructure, and not raise taxes on the working middle class is by raising taxes on the super rich.

Even if we got rid of corporate welfare subsidies for big oil, big agriculture, and big Pharma — even if we cut back on our bloated defense budget — it wouldn’t be nearly enough.

The vast majority of Americans can’t afford to pay more. Despite an economy that’s twice as large as it was thirty years ago, the bottom 90 percent are still stuck in the mud. If they’re employed they’re earning on average only about $280 more a year than thirty years ago, adjusted for inflation. That’s less than a 1 percent gain over more than a third of a century. (Families are doing somewhat better but that’s only because so many families now have to rely on two incomes.)

Yet even as their share of the nation’s total income has withered, the tax burden on the middle has grown. Today’s working and middle-class taxpayers are shelling out a bigger chunk of income in payroll taxes, sales taxes, and property taxes than thirty years ago.

It’s just the opposite for super rich.

The top 1 percent’s share of national income has doubled over the past three decades (from 10 percent in 1981 to well over 20 percent now). The richest one-tenth of 1 percent’s share has tripled. And they’re doing better than ever. According to a new analysis by the Wall Street Journal, total compensation and benefits at publicly-traded Wall Street banks and securities firms hit a record in 2010 — $135 billion. That’s up 5.7 percent from 2009.

Yet, remarkably, taxes on the top have plummeted. From the 1940s until 1980, the top tax income tax rate on the highest earners in America was at least 70 percent. In the 1950s, it was 91 percent. Now it’s 35 percent. Even if you include deductions and credits, the rich are now paying a far lower share of their incomes in taxes than at any time since World War II.

More:  Robert Reich: Why We Must Raise Taxes on the Rich.

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March 29, 2011 · 6:43 pm

GE Pays No Incomes Taxes and Now Wants Workers to Make Concessions | AlterNet

Amazing…

It seems there is no sense of shame anymore…

And why should there be when no one holds anyone accountable?

This has all crossed from the absurd to the unbelievable…

The message coming from Washington can’t be taken any other way than that Corporations are not only “people”, they are more important than most people….

And this is barely being reported on MSNBC or NBC– because GE owns them…

You’ve likely already read Lauren Kelley’s piece from last week about how GE is milking the system like you’ve never seen before. The company made $14.2 billion, $5.1 billion of which came from the US, but, through some creative bookkeeping, GE paid no US taxes. That’s right, none. And to make matters worse they actually claimed a $3.2 billion tax benefit. So, that means we owed them money!

Can this story get any worse?

Apparently, yes. Mike Elk reports, “After not paying any taxes and making huge profits, ThinkProgress has learned that General Electric is expected to ask its nearly 15,000 unionized employees in the United States to make major concessions.”

via GE Pays No Incomes Taxes and Now Wants Workers to Make Concessions | AlterNet.

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March 28, 2011 · 8:14 pm

Two Thirds of US Corporations Pay No Federal Income Taxes

US Uncut held a National Day of Protest over the push to cut vital government programs while major, profitable Corporation pay No Taxes…

Sorry, but this just isn’t right….

From The Nation:

“I’m tired of people calling for shared sacrifice and it’s all coming from the workers and nothing’s coming from the top,” says protester Dave Sonenberg. “I’m sick of companies like Bank of America not paying their taxes.”

Bank of America hasn’t paid a nickel in federal income taxes for the past two years, and in fact raked in an additional $1 billion in tax “benefits.” The bank is enjoying these profits after accepting $45 billion from taxpayers, which the company then got to count as a deduction when they paid back the money.

Big corporations get to play by a whole different set of rules, says tax expert Bob Willens of New York-based Robert Willens LLC:

It’s also not unusual for a company to pay no federal taxes, while still paying state and local taxes, Willens said. Items that can be deducted for federal purposes aren’t always deductible for state and local returns, he said. State taxes can also be based on the amount of capital deployed in a state, not pre-tax income.

This is why two-thirds of corporations in America pay no federal income taxes. If they were forced to, we’re told, the whole country would suffer. Jobs would be lost, salaries slashed. Thank heavens we’ve avoided such calamity by allowing corporations to shape legislation in their favor.

In 2010, Bank of America handed out $2.2 million in campaign contributions to Congressional representatives and PACs (36 percent went to Democrats, 64 percent to Republicans). By throwing around that much cash, huge companies like BoA have a big say when it comes to crafting legislation that permits them to escape paying taxes, according to US Uncut organizer J.A. Myerson.

“The reason it’s not illegal is because they have bought and paid for the people who make the laws. The laws are made to accommodate this sort of nefariousness,” he says, adding that the process is wrong, and ordinarily that would mean approaching Congress to ask them to fix it, but there’s no point in attempting that when the system is so heavily rigged in favor of the rich and well connected. “So what US Uncut is doing right now is not Capitol Hill lobbying because that doesn’t seem like it’s a fruitful avenue. It’s trying to directly undermine the ability of Bank of America to earn record windfall profits by depleting the public trust that they are an upstanding member of society.”

via When Illegal Doesn’t Matter: US Uncut’s National Day Of Protest | The Nation.

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March 26, 2011 · 9:49 am

GE, World’s Largest Corporation, Paid Zero Dollars in U.S. Taxes Last Year | AlterNet

This is really nothing short of disgusting….

You know how we’ve been covering the efforts of U.S. Uncut, the growing campaign to stop corporate tax dodgers from exploiting overseas tax havens? Well here’s an excellent example of why such efforts are desperately needed, from the front page of the New York Times:

General Electric, the nation’s largest corporation, had a very good year in 2010.

The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States.

Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.

How can that be, you ask?

The company has been cutting the percentage of its American profits paid to the Internal Revenue Service for years, resulting in a far lower rate than at most multinational companies.

Its extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore. G.E.’s giant tax department, led by a bow-tied former Treasury official named John Samuels, is often referred to as the world’s best tax law firm….The team includes former officials not just from the Treasury, but also from the I.R.S. and virtually all the tax-writing committees in Congress.

If that doesn’t make your blood boil, I don’t know what would.

Corporations argue that the U.S.’s top corporate tax rate of 35% is prohibitively high and puts them at a disadvantage against foreign companies. But even if you buy that argument (and I do not, because I think corporations should be responsible for paying taxes in countries in which they reap huge profits), it’s hard to swallow when the corporation in question — and not just any corporation, but the biggest in the world — is claiming a tax benefit. Not only did GE not pay any taxes in the U.S. last year, it effectively got money back from the U.S. government.

via GE, World’s Largest Corporation, Paid Zero Dollars in U.S. Taxes Last Year | AlterNet.

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March 16, 2011 · 6:51 pm

Survey shows upbeat outlook from US millionaires | The Raw Story

Of course, the are upbeat…

They own the Government!

This just shows, as Scott Fitzgerald said, “Let me tell you about the very rich.  The rich are different from you and me”…

Totally different perspective….

From RawStory.com:

More than four in 10 American millionaires say they now need $7.5 million to feel wealthy, according to a survey that uncovered surprising levels of optimism about economic prospects.

Conducted by Fidelity Investments, the world’s largest mutual fund firm, the poll analyzed the investing attitudes and behaviors of more than 1,000 millionaire households in the United States.

The 58 percent of millionaires who said they did feel wealthy said they began to feel so with $1.75 million in investable assets, up from $1.5 million in 2008.

Surprisingly, given the current economic climate, the poll revealed that the longer-term outlook was at its most positive since Fidelity began conducting the survey in 2006.

via Survey shows upbeat outlook from US millionaires | The Raw Story.

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March 14, 2011 · 7:34 pm

Top 10 most shocking spending cuts Republicans voted for | The Raw Story

People really need to be paying attention…

Instead of taxing Millionaires and Corporations at an appropriate level, the GOP wants to decimate important Government programs.

Here is another list- on top of some of the other cuts I’ve already listed…

From Rawstory.com:

House Republicans recently passed over $60 billion in spending cuts from current levels for fiscal 2011, pitched as necessary to reduce the massive budget deficit.

From disaster relief funding to aid fr abused women, the GOP went after the government’s 2011 budget with a zeal it normally reserves for tax cuts. Though the Democratic-led Senate rejected the proposal, here are some of the most shocking programs Republicans voted to slash.

1) The National Weather Service

The bill stripped $126 million from the Natural Weather Service, the agency within the National Oceanic and Atmospheric Administration tasked with preparing us for natural disasters such as tsunamis, hurricanes, blizzards, floods and fires.

It’s the same agency that issued a tsunami warning Friday for people on the West Coast after an 8.9 magnitude earthquake devastated Japan. The measure cut a total of $454.3 million from NOAA operations, research and facilities.

2) Emergency Oil Reserves

The GOP budget plan slashed $120.2 million from the Strategic Petroleum Reserve, a critical source of emergency oil supplies in case flow is interrupted.

 

In the wake of the earthquake in Japan, President Barack Obama said the US is “prepared to tap” into the Strategic Petroleum Reserve “should the situation demand it.”

3) Assistance For Firefighters

$510 million was axed from the Federal Emergency Management Agency’s grants for firefighters, part of a broader $1.5 billion cut to various FEMA programs.

4) Communication Among Emergency Responders

The Law Enforcement Wireless Communications office took a $70 million cut — it’s responsible for facilitating “secure, reliable and interoperable” communications to help with “counterterrorism, counterintelligence, law enforcement and emergency response.”

According to the New York Times, an improved capacity for public safety officers across different jurisdictions to effectively communicate with each other would have dramatically helped first responders on 9/11 and Hurricane Katrina.

5) Oversight Of Financial Markets

The Commodity Futures Trading Commission, tasked with overseeing derivative swaps and financial instruments, saw a $56.8 billion cut in the GOP plan. The financial crisis of 2008-09 is believed to have been caused by a lack of effective oversight. (President Obama wants to increase CFTC’s funding.)

6) Prosecution Of Financial Crimes

In the wake of Bernie Madoff, and after big banks apparently got away with suckering people into predatory loans, Republicans voted to cut $2.1 million from the Treasury Department’s Financial Crimes Enforcement Network.

7) Helping Women Escape Domestic Abuse

MORE:   Top 10 most shocking spending cuts Republicans voted for | The Raw Story.

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