MSNBC Host Attacks Rich Tax Holiday

On his weekly segment on The Dylan Ratigan Show, The Young Turks/MSNBC host Cenk Uygur explains why corporations should not get a so-called 'tax holiday'.

 

9 Things The Rich Don't Want You To Know About Taxes

Hat tip to The Left Coaster for this economic analysis that Oly Mike credits to Critter's Crap.

Economics 101 by Oly Mike.

Critter's Crap breaks down economics for us. It's really quite clear.

Over a long period of time, the numbers show that the economy grows at a rate of 2.1%. We can and should have a discussion about steady state economics in light of resource depletion, but for the purpose of evaluating economic activity, income and wealth growth and distribution, Critter's work is on the money (so to speak).

Here's Critter's Crap:

 

What 30 Years of Reaganomics Has Done For You

Then along came Reagan.  He essentially said, taxes are too high.  It is stifling the economy and stealing money away from those who create jobs and wealth.  We need to cut taxes and shrink government.  Get it out of peoples' way.

Well, we already know what happened to the economy when he did that.  It kept plodding along with about a 2.1% annual growth.  At least he didn't hurt it, but he didn't help it much either.  Over the next 28 years, 1980 to 2008, the GDP roughly doubled again...but what happened to incomes?  Well, let's take a look.  The next figure adds the time period 1980 to 2008 to the figure above.

 (more after the jump, I think)

There's more...

A Crock Pot Tax-Exempt Idea

 

 

 

 

by Walter Brasch

 

            A wall of suffocating heat nearly vaporized me as I walked into Marshbaum's house. In the kitchen was a portable kiln spewing fiery venom that was curling the linoleum. In the den, wildly pumping a potter's wheel flinging clay all over the room, was Marshbaum.

            “Got a new hobby?” I asked from a puddle of water that I assumed was what was left of my body.

            “Hobby, nothing!” shouted Marshbaum over the noise. “This is my path to fame and fortune.”

            “Every one of your fame-and-fortune paths have ended in a cul-de-sac,” I reminded him. “You scamming the public into believing that slops of glazed clay dipped into leftover house paint are the last sculpture of a dying genius?”

            “They're cookie jars,” said Marshbaum wounded.

            “Still looks like schlock to me,” I suggested.

            “Work with me on this,” Marshbaum commanded, “it could result in a column for you.”

            So I played straightman while Marshbaum threw pots together. “Who,” I asked skeptically, “is going to buy ersatz cookie jars?”

            “Corporations,” he replied smugly.

            “For gifts?”

            “For receipts. Taxpayers keep their receipts in cookie jars,” Marshbaum explained, “so why not corporations? It’ll help them avoid paying any taxes. It’s easy. It’s simple. It’s—”

            “Probably illegal.”

            “It’s in the Tax Code,” said Marshbaum. “Individuals pay; corporations don’t.”

            “I doubt the IRS Code says anything like that.”

            “There are four million words in the IRS Code,” said Marshbaum. “Lower-class and middle-class Americans get a few thousand of those words. The rest of the code is a roadmap to help the wealthy and their corporations avoid paying taxes.”

            “The IRS encourages corporations to cheat?”

            “No, Congress does that. It writes the code to give rebates, tax deferments, subsidies, and all kinds of tax shelters that only the wealthy and their corporations can take advantage of. It’s just a way to reward their friends.”

            “But, it’s the people who vote for their representatives,” I said naively.

            “You think some homeless vet can afford to donate to Sen. Sludgepump’s campaign? You think Rep. Bilgewater even listens to the opinions of the impoverished and disenfranchised? Why do you think the Republicans want to cut into Medicare and Medicaid?”

            “To balance the budget?”

            “Because, Ink Breath, the rich don’t need those programs. That’s also why they want to cut funding for public education. The rich can afford private schools. The poor can’t. Besides, you can’t have an educated population of middle-class citizens. They might do something un-American, like actually learn something about the issues.” The issue, said Marshbaum, slinging clay and getting high on pot fumes, is that Congress allows the rich to realize their dreams that greed is not only good, it’s encouraged.

            Marshbaum explained that a Government Accountability Office analysis showed that almost three-fifths of all American-based corporations pay no federal taxes. The GAO study didn’t identify individual companies. Marshbaum, with the help of the Securities and Exchange Commission and Sen. Bernie Sanders (I-Vt.), did.

            Pretending that the international crisis-of-the-week has led to the highest gas prices in years, the oil companies—smirks of greed tucked neatly into their wallets—made record profits, paid no taxes, and even received rebates and refunds from the IRS. Exxon Mobil made $19 billion in profits in 2009, paid no taxes, but received a $156 million rebate. Chevron made $10 billion, paid no taxes, and received a $19 million refund. ConocoPhillips during a three year period had a $16 billion profit, paid no taxes, and received a $451 million tax break. Valero Energy had $68 billion in sales, and a $157 million tax refund.

            General Electric had a $26 billion profit in five years, and a $4.1 billion refund. Boeing, tucked into bed with a $30 billion Defense Department contract, got a $124 million refund to sleep better

            Even those that received taxpayer-supported bailouts, after being a major cause of the sub-prime housing debacle, made profits, paid seven-figure executive bonuses, and received refunds. Bank of America scammed the people for a $1 trillion bailout, made a $4.4 billion profit, and received a $1.9 billion refund. CitiGroup, with a $2.5 trillion bailout, paid no taxes on a $4 billion profit. Goldman Sachs and Carnival Cruises were model corporate citizens by paying all of 1.1 percent taxes. Goldman Sachs had a $2.3 billion profit on an $800 billion bailout; Carnival, which took passengers and the taxpayers on a cruise, made $11 billion in profit over five years.

            “Assuming everything you say is true, how does your overpriced crock pot cookie jar allow the rich to cook the books to avoid paying taxes?”

            “Because it comes with extras,” said an enthusiastic Marshbaum. “With every 25 jars, you get a scanner and software that I created. All you have to do is scan the receipts, and my patent-pending pot ware zooms through the receipts to match the tax code and declare that the rich guy and his even richer corporation are tax-exempt.” The best part, said Marshbaum, is that corporations will be able to lay off thousands of six-figure income CPAs in order to maximize their profits.

            “But wouldn’t that just increase the problem we already have with unemployment?” I asked.

            “Not when the accountants and auditors—the ones who know all the corporate secrets—realize that the government pays 15 to 30 percent of all money it collects from whistleblower tips.  They may never have to work again.”

            “You’re brilliant,” I said commending my pot throwing friend. “Just brilliant.”

 

            [For decades, Walter Brasch has used cookie jars to collect his tax receipts, much to his wife’s and accountant’s annoyance. His next book is Before the First Snow, a work of journalistic fiction that explores war in the Gulf, the peace movements, and the effects of “clean” nuclear energy. The book is available from Amazon.com for pre-orders.]

 

 

 

 

Tax-Deductible Invasions

by Walter Brasch

 

          Millions of Americans gave George W. Bush unquestioned support when he diverted personnel and resources from the war against al-Qaeda and Osama bin Laden to invade Iraq.

           Several million fewer opposed the invasion, stating that the primary mission was to destroy the enemy hiding in Afghanistan that destroyed a part of America and not to expand the war. At first, President Bush claimed that Iraq had weapons of mass destruction, capable of destroying Israel and, if placed aboard cargo vessels, could be launched at the east coast of the U.S. When that explanation fizzled, Bush said the invasion was to remove a dictator. Soon, “Regime Change” was the buzz phrase of the month.

           Flash forward eight years. Different president. Different country. Same kind of dictatorship. This time, the conservatives have loudly cried that Barack Obama should not have launched missiles at Libya. And many liberals, while protesting expansion of war, were now facing other liberals who supported President Obama’s mini-war of helping oppressed people. The Iraq war has now cost American taxpayers more than $ 780 billion. The two-week (so far) war against Libya has now cost almost $750 million, most of it for Tomahawk missiles.

           What’s a president to do? The president’s party spends millions of dollars on polls, none of which are reliable. The president is then forced to put his finger into the wind to see what the voters want—and then does what he wants to do anyway.

          Whatever he does will be met by hostility on one side and near-blind support on the other. However, there is a solution. Tax checkoff.

          No, that’s not like a distant cousin of the Russian short story writer. It’s a way for the President and the taxpayers to get the biggest bang for their buck.

           Let’s say that a president decides he wants to invade some hostile foreign country—Canada, for example. Instead of going into the War Room with his military leadership and plotting how best to meet the strategic, tactical, and political goals of an invasion, he stops for two weeks.

           During the first week, all Americans would be sent an email, asking them if they support the invasion of the country that sends Arctic Clippers to the U.S. during Spring. At the end of that week, voting stops. Now, let’s say that 40 percent of Americans think invading Canada is important and the prudent thing to do, but 43 percent oppose it. (The other 17 percent would still be trying to find out why their computers crashed.)

           Normally, the president would say that most Americans don’t want to invade Canada and might listen to them. But, the 40 percent are vigorous in their beliefs. No problem.

           On the next paycheck will be a question. “Do you support committing American troops to invade Canada, and stopping Arctic Clippers?” Those who answer “yes” will then be assessed a proportion for the costs of that invasion, putting their wallets and purses where their mouths are. If 60 million Americans want war, and the cost is a mere $300 million a week, then each supporter would have about $5 per week deducted from his or her paycheck. It’d hardly be noticeable. Of course, there might be a $5 surcharge for the cost of burying the dead, treating the wounded, and long-term physical and mental rehabilitation. But, hey, even at $10 a week, war is rather cheap. And, most important, all of it is tax-deductible.

           Those who don’t support the war wouldn’t have the money deducted. They could decide to support another war later, or pay a “fair share” for more vigorous environmental regulation and enforcement, or even a few dollars a month to allow members of Congress to have junkets. Whatever is raised for junkets would be the total pool available, and would have to be split equally among the 535 members and several thousand critical staffers who, we all know, are the ones who do the work anyhow.

           The Tax Checkoff System has one final advantage. With Americans deciding what to support and committing their personal fortunes or anemic savings accounts to the cause, we could wipe out the national debt and war at the same time.

  

          [Walter Brasch probably won’t be deciding to have deductions for war taken from his pay check. His latest book is Before the First Snow, a journalistic novel that looks at the integration of war, peace, oil, and nuclear energy, all within the context of social justice. The book is available, on pre-order, from amazon.com.]

 

         

 

 

Tax-Deductible Invasions

by Walter Brasch

 

          Millions of Americans gave George W. Bush unquestioned support when he diverted personnel and resources from the war against al-Qaeda and Osama bin Laden to invade Iraq.

           Several million fewer opposed the invasion, stating that the primary mission was to destroy the enemy hiding in Afghanistan that destroyed a part of America and not to expand the war. At first, President Bush claimed that Iraq had weapons of mass destruction, capable of destroying Israel and, if placed aboard cargo vessels, could be launched at the east coast of the U.S. When that explanation fizzled, Bush said the invasion was to remove a dictator. Soon, “Regime Change” was the buzz phrase of the month.

           Flash forward eight years. Different president. Different country. Same kind of dictatorship. This time, the conservatives have loudly cried that Barack Obama should not have launched missiles at Libya. And many liberals, while protesting expansion of war, were now facing other liberals who supported President Obama’s mini-war of helping oppressed people. The Iraq war has now cost American taxpayers more than $ 780 billion. The two-week (so far) war against Libya has now cost almost $750 million, most of it for Tomahawk missiles.

           What’s a president to do? The president’s party spends millions of dollars on polls, none of which are reliable. The president is then forced to put his finger into the wind to see what the voters want—and then does what he wants to do anyway.

          Whatever he does will be met by hostility on one side and near-blind support on the other. However, there is a solution. Tax checkoff.

          No, that’s not like a distant cousin of the Russian short story writer. It’s a way for the President and the taxpayers to get the biggest bang for their buck.

           Let’s say that a president decides he wants to invade some hostile foreign country—Canada, for example. Instead of going into the War Room with his military leadership and plotting how best to meet the strategic, tactical, and political goals of an invasion, he stops for two weeks.

           During the first week, all Americans would be sent an email, asking them if they support the invasion of the country that sends Arctic Clippers to the U.S. during Spring. At the end of that week, voting stops. Now, let’s say that 40 percent of Americans think invading Canada is important and the prudent thing to do, but 43 percent oppose it. (The other 17 percent would still be trying to find out why their computers crashed.)

           Normally, the president would say that most Americans don’t want to invade Canada and might listen to them. But, the 40 percent are vigorous in their beliefs. No problem.

           On the next paycheck will be a question. “Do you support committing American troops to invade Canada, and stopping Arctic Clippers?” Those who answer “yes” will then be assessed a proportion for the costs of that invasion, putting their wallets and purses where their mouths are. If 60 million Americans want war, and the cost is a mere $300 million a week, then each supporter would have about $5 per week deducted from his or her paycheck. It’d hardly be noticeable. Of course, there might be a $5 surcharge for the cost of burying the dead, treating the wounded, and long-term physical and mental rehabilitation. But, hey, even at $10 a week, war is rather cheap. And, most important, all of it is tax-deductible.

           Those who don’t support the war wouldn’t have the money deducted. They could decide to support another war later, or pay a “fair share” for more vigorous environmental regulation and enforcement, or even a few dollars a month to allow members of Congress to have junkets. Whatever is raised for junkets would be the total pool available, and would have to be split equally among the 535 members and several thousand critical staffers who, we all know, are the ones who do the work anyhow.

           The Tax Checkoff System has one final advantage. With Americans deciding what to support and committing their personal fortunes or anemic savings accounts to the cause, we could wipe out the national debt and war at the same time.

  

          [Walter Brasch probably won’t be deciding to have deductions for war taken from his pay check. His latest book is Before the First Snow, a journalistic novel that looks at the integration of war, peace, oil, and nuclear energy, all within the context of social justice. The book is available, on pre-order, from amazon.com.]

 

         

 

 

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