America is Being Robbed by the Conservative Nanny State

America is Being Robbed by the Conservative Nanny State

CEOs are legendary for defending their tax paying records, and eager to imply that government is responsible for any of their tax delinquencies. Apple CEO Tim Cook announced, "We pay all the taxes we owe - every single dollar." Whole Foods co-founder John Mackey supported the iPhone maker, saying "It's not Apple's fault that they're seeking to avoid paying taxes. They're not lying, cheating or stealing. They're following the rules that were created by governments. If the government doesn't like the rules, they can change them."

Mackey didn't mention that changing the tax rules is a specialty of big business. As is flouting the tax rules. The following four tales of corporate malfeasance are particularly disturbing.

1. Just 32 companies avoided enough in 2012 taxes to pay the ENTIRE 2013 federal education budget.

In 2012 an Apple executive protested, "We shouldn't be criticized for using Chinese workers. The U.S. has stopped producing people with the skills we need." His comment was somewhat accurate. Half of the companies surveyed by The Chronicle said they couldn't find qualified graduates for positions within their organizations.

Yet one of the major reasons for job-unpreparedness is quietly ignored by the big companies, just as their taxes are. A Pay Up Now analysis of SEC tax filings found that the total 2012 income taxes (federal and foreign) of thirty-two large companies amounted to just 17% of pre-tax worldwide income. The result was the same in 2011. The figures are consistent with a recent analysis of 2010 data by the Government Accountability Office.

The shortfall from the required 35% statutory rate comes to about $72 billion, about the same as the federal education budget for 2013. Apple Corp., the biggest offender by far, avoided more than the combined National Science Foundation and Small Business Administration budgets.

This helps to explain why "the U.S. has stopped producing people with the skills we need."

2. Bank of America: 82% of Revenue in U.S., $7 billion loss. (But big foreign profits.)

Bank of America CEO Brian Moynihan once complained that nobody understood "how much good" his employees do. But his company, with a whopping 82% of its 2011-12 revenue in the U.S., declared $7 billion in U.S. losses and $10 billion in foreign profits.

Citigroup is close behind. With 42% of its 2011-12 revenue in North America (almost all U.S.), it declared a $5 billion U.S. loss and a $27 billion foreign profit.

Also scornworthy is Pfizer, which had 40% of its 2011-12 revenues in the U.S., but declared almost $7 billion in U.S. losses to go along with $31 billion in foreign profits. After the SEC questioned Pfizer in 2012 about four straight years of U.S. losses despite large worldwide incomes, the company responded by declaring a fifth straight U.S. loss.

3. Relative to workers' payroll tax, corporate taxes have dropped from $1.00 to 7 cents.

In 1953, as the most productive era in U.S. history was beginning, corporations contributed over a dollar for every 33 cents paid by workers. In 2011, the corporate contribution was about 7 cents for every 33 cents paid by workers.

For those who believe that entitlements are the problem, Urban Institute figures should help them reconsider. The typical two-earner couple making average wages throughout their lifetimes will receive less in Social Security benefits than they paid in. Same for single males. Almost the same for single females.

4. Sales tax on school supplies: 10%. Sales tax on $1,000,000,000,000,000 of financial securities: ZERO.

Estimates of the financial derivatives market vary, from $708 trillion to $1.2 quadrillion to $3 quadrillion to a gazillion. This money is a largely speculative and unproductive figment of the financial fantasy world. But speculative financial activity is so inflationary that the world's total wealth, according to the authors of the Global Wealth Report, has doubled in ten years, from $113 trillion to $223 trillion, and is expected to reach $330 trillion by 2017.

The sales tax on the U.S. portion of a quadrillion dollars of trades? Zero. Only a tiny fee is charged to cover SEC expenses.

"If the government doesn't like the rules, they can change them." Except that the people with the money and the power like the rules just the way they are.
  

Paul Buchheit is a college teacher, an active member of US Uncut Chicago, founder and developer of social justice and educational websites (UsAgainstGreed.org, PayUpNow.org, RappingHistory.org)

All wealth, as president Lincoln once said, is created by labor. That has not stooped the conservative movement and corporate American from stealing that wealth.

Anti-Freedom Wall Street Journal Recommends That Egypt Gets Itself a Pro Free Market Murderer

Anti-Freedom Wall Street Journal Recommends That Egypt Gets Itself a Pro Free Market Murderer

Wall Street Journal says Egypt needs a Pinochet
The Chilean dictator presided over the torture and murder of thousands, yet still the free-market right revers his name

On Friday, the Wall Street Journal published an editorial entitled “After the Coup in Cairo”. Its final paragraph contained these words:

Egyptians would be lucky if their new ruling generals turn out to be in the mold of Chile’s Augusto Pinochet, who took over power amid chaos but hired free-market reformers and midwifed a transition to democracy.

Presumably, this means that those who speak for the Wall Street Journal – the editorial was unsigned – think Egypt should think itself lucky if its ruling generals now preside over a 17-year reign of terror. I also take it the WSJ means us to associate two governments removed by generals – the one led by Salvador Allende in Chile and the one led by Mohamed Morsi in Egypt. Islamist, socialist … elected, legitimate … who cares?

Presumably, the WSJ thinks the Egyptians now have 17 years in which to think themselves lucky when any who dissent are tortured with electricity, raped, thrown from planes or – if they’re really lucky – just shot. That’s what happened in Chile after 1973, causing the deaths of between 1,000 and 3,000 people. Around 30,000 were tortured.

This attitude is one of the most dangerous and anti-American ideologies of the conservative movement, that being able to do business and make a profit is a more basic right than democratic republicanism. 

Thanks to Conservative Economics That Rewards Wealth and Punishes Work US Middle Class is Sliding Toward the Third World

Thanks to Conservative Economics That Rewards Wealth and Punishes Work US Middle Class is Sliding Toward the Third World

A recent article by Les Leopold informed us that our nation is near the bottom of the developed world in median wealth, probably the best gauge for the economic strength of the middle class. The source of the information, the Global Wealth Databook, provides additional evidence of our decline from our once-lofty position as an egalitarian country with opportunities for nearly everyone.

The data is summarized (chart above). Column 4 reveals that the U.S. is near the top of the developed world in average wealth, in good part because of its many millionaires (Col 8). Median wealth per adult, in Column 5, is much lower. As a sign of the distance between America's middle class and its national wealth, Column 6 shows that the ratio of median to mean in the U.S. is lower than in any country except Russia.

The impact of all this is shown in Column 7. Median-level adults in the U.S. get a smaller percentage of their nation's wealth than in any other country except China and India.

To view Column 7 in another way, a middle-class adult in Finland owns $122 for every billion dollars of his or her nation's wealth. In Canada it's $13. In the U.S. it's 60 cents. Only China (40 cents) and India (30 cents) give their middle-class adults less.

America's middle class is sliding out of the developed world and toward third-world status. Column 9 makes it clear. Among all the nations of the world with at least a quarter-million adults, only Russia, Ukraine, and Lebanon are more unequal in their wealth distribution. Most of the third world countries are, sad to say and hard to believe, fairer to their middle classes than we are.

 Yet the radical anti-American conservative movement is still pushing for trickle-down, screw the middle-class tax and economic policies -  Weirdo Rick Perry and Freaky Ted Cruz Vie for Stupidest Tax Plan

North Carolina Conservatives Celebrate Supreme Court Voting Rights Ruling To Bring Back The Confederacy

North Carolina Conservatives Celebrate Supreme Court Voting Rights Ruling To Bring Back The Confederacy

Just days after the U.S. Supreme Court gutted the Voting Rights Act, North Carolina is moving forward with a host of bills to roll back voting rights. Republican lawmakers are accelerating a new agenda to eliminate early voting, Sunday voting hours, and same-day registration provisions. GOP leaders also vowed to move quickly to pass a controversial voter ID law that would make it much harder for minorities, seniors, students, and low-income voters to cast their ballots.

The court’s conservative majority decreed last Tuesday that the formula used to identify states with a history of using election law to discriminate against minorities has “no logical relationship to the present day.” Many of the covered jurisdictions celebrated the decision by promptly advancing voting restrictions that disproportionately target minorities and low-income voters. Texas enacted their previously blocked voter ID law mere hours after the ruling.

North Carolina’s newly unfettered attack on voting rights has three main prongs:

    Require ID at the polls. North Carolina’s voter ID bill could pose problems for 1 in 10 voters, according to an analysis by the State Board of Elections. About 613,000 North Carolinians lack the required government-issued ID. Nearly a third of these voters are black, while over half are registered Democrats.
    Penalize college students for voting. Republicans are also pushing a bill to raise taxes on families with college students who choose to vote at school rather than at home, effectively discouraging college students from voting.
    End early voting and same-day registration. Other states that restricted early voting, like Ohio and Florida, needlessly created mammoth lines on Election Day, forcing some voters to wait until 1 a.m. to cast a ballot. The backlash in Florida has been especially strong, prompting Gov. Rick Scott (R) to reverse his own voter suppression laws. In North Carolina, black voters make up 29 percent of early voters and 34 percent of voters who took advantage of same-day voter registration at the polls.

The Republican-dominated legislature and new Republican governor will likely do all they can to speed along these restrictions. However, polls show that North Carolinians overwhelmingly oppose these new voter suppression measures. “Moral Monday” protests are cropping up all over the state to challenge these bills and a slew of other draconian policies targeting the poor, women, minorities, and seniors.

OK my headline is a little off,  conservatives not only have contempt for Americans of color, but hate students and senior citizens as well. One has to wonder why conservatives don't just pack up and move to China, they don't have voting rights there either. A party of the elite decides what is good or bad - just the way conservatives do. There is nothing humanitarian or logical about conservatives and conservatism, it is all about getting and keeping power - again, much like the political elite in China or Saudi  Arabia or Iraq.

Weirdo Conservatives Spread Lies About Supreme Court Decision That Brings Back Jim-Crow Lite

Weirdo Conservatives Spread Lies About Supreme Court Decision That Brings Back Jim-Crow Lite

Right-wing media are offering multiple false reassurances to those outraged at the Supreme Court's attack on voting rights in Shelby County v. Holder, while failing to report on the progress of one possible fix.

In the aftermath of Shelby County, which held that Congress' extensive 2006 findings of ongoing voter suppression did not justify the Voting Rights Act's formula for determining which jurisdictions with a history of racial discrimination must "preclear" their election changes, right-wing media are incorrectly claiming that this decision will not have an adverse effect on voting rights.

Repeating the lie that the preclearance requirement in Section 5 of the VRA - gutted when the Supreme Court invalidated the formula within Section 4 that determines which jurisdictions are subject to it - was insignificant, right wing-media continue to argue that only a "small part" of this historic civil rights law was struck down.

Megyn KellyIn their day-after analysis of Shelby County, the editors of the National Review Online proclaimed the preclearance process to be "worthless," adding "[t]he decision brings an end to the automatic and perpetual punishment of states that are guilty of crimes in decades past. It does nothing else."

On the June 26 edition of America Live, Fox News host Megyn Kelly dismissed the idea that "racism was given the stamp of approval officially by the Supreme Court yesterday." Her guest, NRO contributing editor Andrew McCarthy, repeated the right-wing myth that voter suppression that engages in systematic racial discrimination "has long ago passed to the dustbin of history" and progressives who cannot recognize its demise are demagogues and "race hucksters." From America Live:

But this argument denying the "vital scaffolding" that is Sections 4 and 5 was debunked by the actions of states that immediately reanimated voter suppression measures, previously blocked or deterred as potentially racially discriminatory by preclearance, in the hours after Shelby County was decided.

Texas, Mississippi, Alabama, and North Carolina have announced they will proceed with voter ID and redistricting measures whose racial discrimination could have been scrutinized and stopped by the preclearance mechanism of the VRA. Indeed, Texas is going forward with both a voter ID law and redistricting plan that federal courts have already found to be forms of systematic racial discrimination. Alabama, and Shelby County in particular, may be an even clearer example of how Section 5 has repeatedly and recently deterred voter suppression on the basis of race. From The New Yorker:

    Reading the opinion it's possible to forget that a grand total of three African-Americans senators and two governors have been elected in the past hundred and thirty-six years, only one of them in a Southern state. In arguing that the preclearance section of the V.R.A. was outmoded and based upon aged presumptions about Southern states, the court had to bypass not only history but contemporary reality. As Justice Sotomayor pointed out during oral arguments, Shelby County--the Alabama county that brought the challenge to the Court--had failed preclearance some two hundred and forty times. Given that Section 5 of the V.R.A. allows districts covered by its provisions to move out of coverage by consistently demonstrating that their laws have no discriminatory impact, this decision was something of an end run: places that have consistently failed the litmus tests of discrimination were, in a second, given the status of those where there's been legitimate progress. 

Self-admittedly scared of being called "racist" for their opposition to the preclearance mechanism, right-wing media are offering a litany of hollow reassurances for why Shelby County will not negatively affect voters of color. If right-wing media really want to listen to the concerns of voters of color - a growing demographic that Republicans are desperately seeking to attract - perhaps they should actually report on the one reassurance about the decision they have mentioned that is actually true: Congress can, once again, reauthorize Section 4. So far, right-wing media have been silent on the efforts that were immediately launched to do just that, both on the Democratic and Republican sides of the aisle.

This omission is peculiar.

Sections 4 and 5 were reauthorized in 2006 by bipartisan majorities of 98-0 in the Senate and 390-33 in the House of Representatives, then signed into law by former President George W. Bush. The fact that many of the same congresspersons are now mobilizing to revive this bipartisan effort and save the heart of the Voting Rights Act is surely news.

At the very least, it's a more important story than dredging up demonstrably false claims about preclearance and voter suppression.

The UnAmerican freaks at Fox News and The National Review try very hard to appear to be adults and patriots. In reality, when the facts are presented, these freaky conservatives are left shouting lies because they have lost yet another debate.One of the great things true patriots have learned from history is that when one side constantly resorts to lies and disinformation to win a debate, they have a twisted radical agenda.

Time To End The Conservative Nanny State for America’s Tax-Dodging Corporations

Time To End The Conservative Nanny State for America’s Tax-Dodging Corporations

A judicious writer avoids adjectives like “mindblowing,” especially when covering political or economic issues. But no other word seems to describe the stunning reality of corporate taxation in modern America, which cries out for the italics-heavy, exclamation-point-driven format made famous by Ripley’s Believe It or Not.

Stylistic overkill? Read these thirteen facts and you may change your mind.

1. We’re told we can’t “afford” full Social Security benefits, even though closing corporate tax-haven loopholes would pay for Obama’s “chained CPI” benefit cut more than ten times over!

Abusive offshore tax havens cost the US $150 billion in lost tax revenue every year (via FACT Coalition). That’s $1.5 trillion over the next ten years.

The “chained CPI” cut, proposed by President Obama and supported by Republicans, is projected to “save” a total of $122 billion to $130 billion over the same time period by denying benefits to seniors and disabled people.

It’s true. “Serious” politicians and pundits are demanding that ordinary people sacrifice earned benefits, while at the same time allowing corporations to avoid more than ten times as much in taxes.

2. Corporate tax rates are near their 60-year low, even though profits are at a 60-year high!

Need we say more?

(Source: Americans for Tax Fairness.)

3. Wells Fargo got $8 billion in tax breaks, even as executives at its subsidiary Wachovia avoided indictment for laundering money for the Mexican drug cartels!

That’s right. Wells Fargo paid a negative tax rate of -1.4 percent between 2008 and 2010 while Wachovia, a Wells Fargo subsidiary, admitted to laundering more than $378 billion for Mexican drug gangs.

We’re talking about crazed killers like “El Loco” and gangs like “Los Zetas” – gangs who cut people’s heads off and toss them out onto disco dance floors or display them in the town square.

Wachovia bankers ignored repeated warnings from law enforcement officials, and continued to launder money for cartels that have murdered tens of thousands.

And yet no criminal indictments were handed down because, as a Senate investigator told Bloomberg News, “”There’s no capacity to regulate or punish them because they’re too big to be threatened with failure.”

4. Some other huge corporations paid less than nothing, too.

Pepco Holdings (-57.6% tax rate)
General Electric (-45.3%)
DuPont (-3.4%)
Verizon (-2.9%)
Boeing (-1.8%)
Honeywell (-0.7%)

(Source: Citizens for Tax Justice)

5. The amount of money US corporations are holding offshore is an estimated one trillion dollars!

Rather than tax these profits the way other countries do, corporate politicians are promoting a tax “repatriation” break that would let corporations “bring this money home” while paying even less than their currently low rates.

They tried that in 2004 and it didn’t create any jobs. In fact, corporations took the tax break and then fired thousands of people. What “repatriation” did do is line a lot of wealthy investors’ pockets.

So, naturally, they want to do it again.

6. One building in the Cayman Islands is the official location of 18,857 corporations!

According to the Government Accountability Office, a five-story building called “Ugland House” is home to nearly twenty thousand corporations. That’s impressive, especially for such a small edifice. (Perhaps it has supernatural half-floors and space-time defying “mind tunnels” like the office in Being John Malkovich.)

While impressive, Ugland House’s distinction pales next to that of 1209 North Orange Street in Wilmington, Delaware. According to one investigation, that address is home to 217,000 corporations.

That’s because Delaware has very generous tax rules – and, as a result, is home to more than half of all the corporate subsidiaries in the United States.That’s startling, since only 1/342th of the nation’s population lives in that state (917,092 residents, out of a national total of 313,914,040, according to the latest census results).

7. Conservatives complain about the “official” corporate tax rate in this country, but corporations actually pay roughly one-third of the official rate in actual taxes.

The official, or “statutory,” corporate tax rate is 35 percent. But the actual rate paid by American corporations is only 12 percent, less than that paid by many middle-class Americans.

(Source: The FACT Coalition.)

In fact, US Corporations pay less tax as a percentage of the GDP than corporations in Canada. Or Japan …

… or South Korea. Or Norway. Or Luxembourg, New Zealand, Israel, the Czech Republic, Sweden, Belgium, Switzerland, the United Kingdom, Denmark, Finland, and Italy.

(Source: OECD StatsExtract interactive database.)

8. Corporations used to pay 30 percent of Federal taxes, and now they pay less than 7 percent!

That’s because the corporate tax rate has plunged since Dwight D. Eisenhower was President and is now the lowest it’s been in modern history.

(Source: FACT Coalition.)

9. Big corporations paid $216 million to Congress and got $223 billion in tax breaks!

As Citizens for Tax Justice and USPIRG reported, 280 large and profitable corporations contributed $216 million to Congressional campaigns over four election cycles and got nearly a quarter of a trillion dollars in tax breaks.

That’s a terrific investment for them – a return of more than a thousand to one – but it’s a bad deal for the American people.

10. We don’t even know who owns some corporations, even though that makes it easier to evade taxes, dodge creditors, avoid paying alimony or child support, and even fund terrorism!

Here are some examples of investments that might represent a terror threat. Corporate interests are blocking disclosure rules that would help protect our national security.

11. Bank of America committed foreclosure fraud, was bailed out by the government, and then paid no taxes on $4.4 billion in profit!

That’s right. In 2010, while BofA was negotiating a sweet settlement deal for its foreclosure fraud, it paid nothing in taxes. (Source: FACT Coalition.) Zero, on $17.2 billion in offshore earnings. (Source: Americans for Tax Fairness.)

Its $4.1 billion tax break came on the heels of the bank’s taxpayer-funded bailout, immunity from prosecution for its criminal employees, and a cushy government settlement for its foreclosure fraud.

Now David Dayen reports that the bank has apparently continued to defraud customers in violation of its government settlement. Whistleblowers have stated in affidavits that they were “told to lie” to customers, continued to deceive homeowners before foreclosing on them, and flipped customers to new servicing companies to invalidate previous homeowner agreements.

12. What they call “tax reform” would actually prevent our elected representatives from giving businesses financial incentives to improve our lives!

The word “reform” is an honorable one that’s been put to some dishonorable uses lately. “Entitlement reform,” for example, is merely a euphemism for gutting Social Security and Medicare.

Similarly, corporate-backed politicians are pushing a formula for permanent corporate tax breaks and calling it “tax reform.” They insist their “reform” be “revenue neutral” and say it will “broaden the base while lowering the rate.”

Here’s an English translation: The current, unsustainably low rates for corporations would be made permanent, while eliminating many tax deductions in the name of “simplification.”

Here’s what that really means: The domestic tax credit for creating jobs? Gone. Tax breaks for protecting the environment with clean energy, rather than harming other people’s health and leaving a mess for the rest of us to clean up? Gone.

All in all we’d lose dozens of important policies that make our lives better, while permanently fixing corporate taxes at today’s cushy giveaway rates.

“Reform”? Ripoff is more like it.

13. Despite their greed, mismanagement, and freeloading, tax-dodging corporations are using shell organizations like “Fix the Debt” and “the Committee for a Responsible Federal Budget” to tell ordinary Americans they have to sacrifice even more to preserve corporate wealth!

These organizations are using the heads of failed banks – people like Chase’s Jamie Dimon and Lloyd Blankfein of Goldman Sachs – to dispense “advice on the economy.” That’s like getting navigation tips from the captain of the Exxon Valdez.

(Tax breaks for Exxon Mobil: $4.1 billion between 2008 and 2010. The company paid no taxes at all in 2009.)

These executives and their paid spokespeople tell the rest of us we need to “sacrifice” and “tighten our belts” so that their party can go on forever. And too often they’re treated as credible sources, rather than as corrupting influences on our public life.

It’s all true – and there are many more astonishing facts to be found in the world of corporate taxation. To fix the economy more people will need to learn about them – and demand that they be changed.

The writer and analyst in me wants to apologize for all the italicizing and all those exclamation points. But the American citizen in me wants to shout the truth out for all the world to hear – believe it or not!

Richard (RJ) Eskow is a well-known blogger and writer, a former Wall Street executive, an experienced consultant, and a former musician. He has experience in health insurance and economics, occupational health, benefits, risk management, finance, and information technology. Richard has consulting experience in the US and over 20 countries.

Yet conservatives and libertarians keep telling us, over and over again, that if we just lower taxes and let corporations pay people a dollar an hour, they'll be able to afford to hire everyone who wants a job. That vision of America is not much better than the plantation model of the Antebellum South. How many Americans want to live their lives on corporate plantations. How is that capitalism or the incentive to work hard and get ahead. The game is rigged where low and moderate income Americans cannot get ahead. Conservatives like it that way because they want all the power in the hands of the elite, and in the U.S. money equals power.

Today's Links For Patriots

The IRS "Scandal" Was A Scam

Monday's revelation that progressive as well as conservative groups seeking tax-exempt status had been singled out for review by the Internal Revenue Service left one pressing question: Why [[then]] did the inspector general's report detailing improper scrutiny only mention conservative groups?

Last night we got the answer: The IG only reported on conservative groups because that's what Rep. Darrell Issa (R-CA), the notoriously partisan chairman of the House Oversight Committee, told him to do.

The Pay of Corporate Executives and Financial Professionals is Evidence of Rent Seeking in Top 1 Percent Incomes. Rent seeking is a kind of modern conservative form of feudalism.

This decision didn't make the headlines, Conservatives on Supreme Court Serve A Legal Blow to Sustainable Development

Conservatives On Supreme Court Steal Voting Rights From Millions of Americans

Wendy Davis Showed Texas' GOP Boys How to Respect Women

Conservative Ohio Thugs Are Using Their State Budget To Try To Restrict Abortion And Redefine Pregnancy. As soon as Ohio governor Kasich grows a uterus he can have dictatorial control of women's bodies.