USA has two sets of rules --1 for the corporate class and one 1 for the middle class

Discussion in 'Politics' started by merrill, Jan 21, 2012.

  1. merrill
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    merrill VIP Member

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    The middle class, by and large, plays by the rules, then watches as its jobs disappear -- and the Senate takes a break instead of extending unemployment benefits. The corporate class games the system -- making sure its license to break the rules is built into the rules themselves.

    One of the most glaring examples of this continues to be the ability of corporations to cheat the public out of tens of billions of dollars a year by using offshore tax havens. Indeed, it's estimated that companies and wealthy individuals funneling money through offshore tax havens are evading around $100 billion a year in taxes -- leaving the rest of us to pick up the tab. And with cash-strapped states all across the country cutting vital services to the bone, it's not like we don't need the money.

    You want Exhibit A of two sets of rules? According to the White House, in 2004, the last year data on this was compiled, U.S. multinational corporations paid roughly $16 billion in taxes on $700 billion in foreign active earnings -- putting their tax rate at around 2.3 percent. Know many middle class Americans getting off that easy at tax time?

    In December 2008, the Government Accounting Office reported that 83 of the 100 largest publicly-traded companies in the country -- including AT&T, Chevron, IBM, American Express, GE, Boeing, Dow, and AIG -- had subsidiaries in tax havens -- or, as the corporate class comically calls them, "financial privacy jurisdictions."

    Even more egregiously, of those 83 companies, 74 received government contracts in 2007. GM, for instance, got more than $517 million from the government -- i.e. the taxpayers -- that year, while shielding profits in tax-friendly places like Bermuda and the Cayman Islands. And Boeing, which received over $23 billion in federal contracts that year, had 38 subsidiaries in tax havens, including six in Bermuda.

    And while it's as easy as opening up an island P.O. Box, not every big company uses the dodge. For instance, Boeing's competitor Lockheed Martin had no offshore subsidiaries. But far too many do -- another GAO study found that over 18,000 companies are registered at a single address in the Cayman Islands, a country with no corporate or capital gains taxes.

    con't
    CorpWatch*:*Offshore Corporate Tax Havens: Why Are They Still Allowed?
     
  2. merrill
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    merrill VIP Member

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    America's big banks -- including those that pocketed billions from the taxpayers in bailout dollars -- seem particularly fond of the Cayman Islands. At the time of the GAO report,

    * Morgan Stanley had 273 subsidiaries in tax havens, 158 of them in the Cayman Islands.

    * Citigroup had 427, with 90 in the Caymans.

    * Bank of America had 115, with 59 in the Caymans. Goldman Sachs had 29 offshore havens, including 15 in the Caymans.

    * JPMorgan had 50, with seven in the Caymans.

    * Wells Fargo had 18, with nine in the Caymans.

    Perhaps no company exemplifies the corporate class/middle class double standard more than KBR/Halliburton. The company got billions from U.S. taxpayers, then turned around and used a Cayman Island tax dodge to pump up its bottom line.

    As the Boston Globe's Farah Stockman reported, KBR, until 2007 a unit of Halliburton, "has avoided paying hundreds of millions of dollars in federal Medicare and Social Security taxes by hiring workers through shell companies based in this tropical tax haven."

    In 2008, the company listed 10,500 Americans as being officially employed by two companies that, as Stockman wrote, "exist in a computer file on the fourth floor of a building on a palm-studded boulevard here in the Caribbean.

    " Aside from the tax advantages, Stockman points out another benefit of this dodge: Americans who officially work for a company whose headquarters is a computer file in the Caymans are not eligible for unemployment insurance or other benefits when they get laid off -- something many of them found out the hard way.

    more:
    CorpWatch*:*Offshore Corporate Tax Havens: Why Are They Still Allowed?
     
  3. Oddball
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    Oddball BANNED Supporting Member

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  4. syrenn
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    syrenn BANNED

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    Oh good lord...another thread?
     
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  5. merrill
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    merrill VIP Member

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    The less taxes some of the privileged pay the more everyone else pays.... the bottom line.
     
  6. Grampa Murked U
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    Grampa Murked U Diamond Member

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    Come on dude. Your other topic just like this one is on the front page for christs sake. Stop spamming
     
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  7. syrenn
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    syrenn BANNED

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    They pay more taxes then the ones paying ZERO federal taxes.
     
  8. The Infidel
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    The Infidel EVIL CONSERVATIVE

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    First off... your wrong

    Secondly.... your stupid


    nuff said
    :eusa_hand:
     
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  9. syrenn
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    syrenn BANNED

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    Works for me.


     
  10. merrill
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    merrill VIP Member

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    taxpayers who earned $1 million or more in 2009, 1,470 of them paid no taxes.

    American Millionaires: 1,400 Paid No U.S. Income Taxes In 2009
     

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