{"id":103888,"date":"2014-01-07T08:07:00","date_gmt":"2014-01-07T08:07:00","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/?guid=5c0608b10b431a0985aa035a002a3f3d"},"modified":"2014-01-07T08:07:00","modified_gmt":"2014-01-07T08:07:00","slug":"corporate-taxes-in-america-2","status":"publish","type":"post","link":"https:\/\/rinf.com\/alt-news\/editorials\/corporate-taxes-in-america-2\/","title":{"rendered":"Corporate Taxes in America"},"content":{"rendered":"
Corporate Taxes in America<\/b><\/div>\n
<\/div>\n
by Stephen Lendman<\/div>\n
<\/div>\n
Raising them should be a national imperative. Corporations should pay their fair share. Not according to Laurence Kotlikoff.<\/div>\n
<\/div>\n
He’s a right-wing economist. He’s a corporatist writ large. He claims  abolishing corporate taxes will create jobs.<\/div>\n
<\/div>\n
Doing so requires dropping money on Main Street. Get it in people’s pockets directly. Do it by cutting their taxes. <\/div>\n
<\/div>\n
Guarantee a living wage. Support worker-friendly legislation. Restore their bargaining power with management.<\/div>\n
<\/div>\n
Return money creation power to public hands where it belongs. Initiate government jobs creation programs. <\/div>\n
<\/div>\n
New Deal ones put millions back to work. Doing so reinvigorated the national spirit.<\/div>\n
<\/div>\n
Unemployment was measurably cut. It dropped from 25% in 1933 to 11% in 1937. Doing the right things work.<\/div>\n
<\/div>\n
In 1961, corporate tax cuts were linked to job creation. Business had to prove they added jobs to qualify.<\/div>\n
<\/div>\n
No longer. Corporate tax cuts and credits are handed out freely. They’re not linked to job creation. They’re standard practice. More are planned this year.<\/div>\n
<\/div>\n
Under Bush and Obama, corporations get tax cuts for overseas investments. Domestic job reductions accompany them. Offshoring is rewarded.<\/div>\n
<\/div>\n
Multiple Bush tax cuts handed corporations around $3.4 trillion. Doing so was hailed as a way to create jobs.<\/div>\n
<\/div>\n
Post-recession jobs creation during the early 2000s was the weakest on record. It took 46 months to recover those lost.<\/div>\n
<\/div>\n
It’ll take over a decade now. The so-called 2007 – 2009 Great Recession continues to take an enormous toll on ordinary Americans. Main Street Great Depression conditions persist unabated.<\/div>\n
<\/div>\n
Low pay\/poor or no benefit part-time jobs replaced higher paying, good benefit full-time ones. It’s been ongoing for decades. America is in economic decline.<\/div>\n
<\/div>\n
Offshoring millions of jobs exacerbates hard times. According to Paul Craig Roberts, only fools believe doing so is good for America.<\/div>\n
<\/div>\n
Likeminded so-called experts can’t see the forest through the trees. US corporations are hoarding cash. Bush and Obama tax cuts added $10 trillion or more to their balance sheets.<\/div>\n
<\/div>\n
Much was shifted to offshore subsidiaries. Doing so avoids US taxes altogether. It’s unknown how much corporate wealth sits in tax havens. Perhaps trillions from generous business handouts.<\/div>\n
<\/div>\n
During the height of 2008 crisis conditions, $168 billion stimulus legislation was enacted. About $90 billion went to business and rich elites.<\/div>\n
<\/div>\n
Jobs were lost, not created. From July through December 2008, nearly a million a month disappeared. Doing so matched the 1929-1930 rate.<\/div>\n
<\/div>\n
Obama’s February 2009 $787 billion stimulus bill handed corporations nearly $400 billion in tax cuts. Over $225 billion went for business\/investor cuts.<\/div>\n
<\/div>\n
Through December 2010, zero jobs were created. Part-time ones replaced higher paying full-time jobs. <\/div>\n
<\/div>\n
Hundreds of thousands of federal, state and local public workers were laid off. Current unemployment tops 23%. <\/div>\n
<\/div>\n
Official numbers are fake. They mask the greatest jobs crisis since the Great Depression. Before this one ends, it may be greater.<\/div>\n
<\/div>\n
Bush and Obama benefitted corporations and rich elites hugely. They never had it better. Unprecedented wealth amounts shifted from ordinary people to them.<\/div>\n
<\/div>\n
The great wealth transfer heist continues. America is being thirdworldized in the process. Employment opportunities are dreadful.<\/div>\n
<\/div>\n
It bears repeating. Tax cuts don’t create jobs. They could if linked to jobs creation. They haven’t been since Kennedy’s mandate.<\/div>\n
<\/div>\n
Democrats and Republicans today are polar opposite. Reverse Robin Hoodism is policy. It created the greatest wealth disparity in US history.<\/div>\n
<\/div>\n
Half or more of US households are impoverished or bordering it. Good jobs are disappearing in plain sight. Nearly 50 million Americans need food stamps to eat. <\/div>\n
<\/div>\n
Hard times are getting harder. Needy households are increasing exponentially. At the same time, corporate profits are higher than ever.<\/div>\n
<\/div>\n
Business taxes are way too low. The top nominal rate is 35%. Obama, Republicans and many Democrats plan cutting it to 28 or 25%.<\/div>\n
<\/div>\n
Senate Finance Committee chairman Max Baucus (D. MT) is retiring this year. He favors lower corporate rates. He helped spearhead Obamacare’s enactment.<\/div>\n
<\/div>\n
Doing so wrecked America’s healthcare system. It did so to benefit business. The full fallout remains to unfold.<\/div>\n
<\/div>\n
One of many propagated myths is that US corporations pay too much in taxes. “Abolish the Corporate Income Tax<\/span><\/a>,” says Kotlikoff. He wants people to believe what’s untrue.<\/div>\n
<\/div>\n
“Just ask” Seattle-based Boeing machinist workers, he said. They accepted major contract concessions. They did so for greater “long-term success,” Kotlikoff claimed.<\/div>\n
<\/div>\n
False! Contract terms substitute largely worker funded 401ks for company-paid pensions, higher healthcare costs, reduced wage increases, and no strikes.<\/div>\n
<\/div>\n
Heavy pressure was applied. Union bosses claimed 51% of International Association of Machinists approved what no workers want. Others claimed vote rigging.<\/div>\n
<\/div>\n
Kotlikoff said Boeing workers acted in their own best interest. How does cutting their standard of living do so?<\/div>\n
<\/div>\n
“In recent decades, American workers have suffered one body blow after another,” he admitted.<\/div>\n
<\/div>\n
“What can (they) do to mitigate their plight,” he asked? Eliminate corporate taxes, what else.<\/div>\n
<\/div>\n
“It’s not\u2026a giveaway to the rich,” he maintains. Corporate taxes are “economically self-defeating.” They hurt “workers, not capitalists…”<\/div>\n
<\/div>\n
He claims America “may well have the highest effective marginal corporate income tax rate of any developed country.”<\/div>\n
<\/div>\n
As explained above, nominally it’s 35%. Bipartisan complicity agreed to cut it to 28 or 25%. Most large corporations pay less than half that amount.<\/div>\n
<\/div>\n
Many pay much less. Some pay nothing. Others get rebates in profitable years. Corporate taxes have been in free fall for decades.<\/div>\n
<\/div>\n
As a percent of GDP and national income, they’re half what they were two decades ago. They’re going lower. Obama demands it. He’s doing so while waging war on ordinary Americans.<\/div>\n
<\/div>\n
He’s one-sidedly pro-business. He’s anti-labor, anti-populist, anti-fairness. He wants greater austerity than already. He wants America’s social contract eliminated. <\/div>\n
<\/div>\n
He wants corporate giants handed trillions more than already. So does Kotlikoff. He supports the great tax giveaway.<\/div>\n
<\/div>\n
He wants corporate ones entirely eliminated. He claims maintaining them gets business to shift operations abroad.<\/div>\n
<\/div>\n
They do so largely for lower labor costs. They’re in countries with no worker protections. They’re free to exploit their workforce for greater profits.<\/div>\n
<\/div>\n
Kotlikoff claims eliminating corporate taxes assures a “stunningly large” economic windfall. He’s for raising personal income tax rates at the same time.<\/div>\n
<\/div>\n
He wants ordinary people to bear the burden. They do so more than ever now. He claims hitting them when they can least afford it “leads to a short-run inflow of capital.”<\/div>\n
<\/div>\n
It’ll “rais(e) (America’s) capital stock (machines and buildings) by 23 percent, output by 8 percent, and the real wages of unskilled and skilled workers by 12 percent,” he maintains.<\/div>\n
<\/div>\n
It bears repeating. Corporate tax cuts don’t create jobs. Clear evidence proves it. Throughout the new millennium, profits shifted abroad tax free. <\/div>\n
<\/div>\n
They remain on business balance sheets. They went for stock buybacks, dividends, high executive salaries and bonuses, as well as other unrelated non-job creation purposes.<\/div>\n
<\/div>\n
Why else would unemployment exceed 23%? Inflation-adjusted wages have been declining for decades. Benefits workers took for granted are disappearing.<\/div>\n
<\/div>\n
So are good full-time jobs. Class war rages. Middle America is disappearing in plain sight. Detroit reflects nationwide decline.<\/div>\n
<\/div>\n
Other troubled cities include major ones. Growing millions are on their own sink or swim. Predatory capitalism is malignant. It’s eating its seed corn. It’s killing its host.<\/div>\n
<\/div>\n
It’s been a stunning failure for decades. It hollowed out America. It harms its most vulnerable. <\/div>\n
<\/div>\n
It caused the largest municipal bankruptcy in US history. Detroit once symbolized America’s industrial might. It’s zombie-like today.<\/div>\n
<\/div>\n
Nothing is done to change things. Kotlikoff wants ordinary people hit harder. He claims raising their tax burden lifts all boats. <\/div>\n
<\/div>\n
He says it does so when coupled with eliminating corporate taxes. He shows a shocking disregard for human welfare.<\/div>\n
<\/div>\n
His formula assures greater crisis conditions. Millions already can’t cope. More add to their ranks daily. Raising their taxes will accelerate the process.<\/div>\n
<\/div>\n
How can destroying the well-being of most Americans be beneficial? Kotlikoff apparently believes doing so will save them. He admits that inflation-adjusted wages are “10 percent lower today than (in) 1966.”<\/div>\n
<\/div>\n
“This is America’s nightmare, not its dream,” he explains. “Turning things around requires getting a lot of things right, starting, (he argues) with corporate tax reform.”<\/div>\n
<\/div>\n
In 2007, his book titled “The Healthcare Fix” proposed ending Medicare, Medicaid, and employer-provider insurance. <\/div>\n
<\/div>\n
He wants government-provided vouchers replacing them. He wants their cost maintained at a fixed 10% of GDP. <\/div>\n
<\/div>\n
Well-off recipients could supplement coverage by buying more on their own. Others would be stuck with bare bones care.<\/div>\n
<\/div>\n
Corporations are Kotlikoff’s concern. Ordinary people don’t matter. Deepening social inequality is OK. <\/div>\n
<\/div>\n
Human misery is out of sight and mind. Kotlikoff’s formula assures hard times getting harder for growing millions.<\/div>\n
<\/div>\n
America already is unfit to live in. Kotlikoff wants impossible conditions for most people. Imagine if it turns out this way. Imagine the worst of all possible worlds.<\/div>\n
<\/div>\n
Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net. <\/div>\n
<\/div>\n
His new book is titled “Banker Occupation: Waging Financial War on Humanity.”<\/div>\n
<\/div>\n
http:\/\/www.claritypress.com\/LendmanII.html<\/div>\n
<\/div>\n
Visit his blog site at sjlendman.blogspot.com. <\/div>\n
<\/div>\n
Listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network.<\/div>\n
<\/div>\n
It airs Fridays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.<\/div>\n
<\/div>\n
http:\/\/www.progressiveradionetwork.com\/the-progressive-news-hour<\/div>\n
<\/div>\n

<\/p>\n

http:\/\/www.dailycensored.com\/corporate-taxes-america\/<\/div>\n","protected":false},"excerpt":{"rendered":"
Corporate Taxes in America<\/b><\/div>\n
<\/div>\n
by Stephen Lendman<\/div>\n
<\/div>\n
Raising them should be a national imperative. Corporations should pay their fair share. Not according to Laurence Kotlikoff.<\/div>\n
<\/div>\n
He’s a right-wing economist. He’s a corporatist writ large. He claims  abolishing corporate taxes will create jobs.<\/div>\n
<\/div>\n
Doing so requires dropping money on Main Street. Get it in people’s pockets directly. Do it by cutting their taxes. <\/div>\n
<\/div>\n
Guarantee a living wage. Support worker-friendly legislation. Restore their bargaining power with management.<\/div>\n
<\/div>\n
Return money creation power to public hands where it belongs. Initiate government jobs creation programs. <\/div>\n
<\/div>\n
New Deal ones put millions back to work. Doing so reinvigorated the national spirit.<\/div>\n
<\/div>\n
Unemployment was measurably cut. It dropped from 25% in 1933 to 11% in 1937. Doing the right things work.<\/div>\n
<\/div>\n
In 1961, corporate tax cuts were linked to job creation. Business had to prove they added jobs to qualify.<\/div>\n
<\/div>\n
No longer. Corporate tax cuts and credits are handed out freely. They’re not linked to job creation. They’re standard practice. More are planned this year.<\/div>\n
<\/div>\n
Under Bush and Obama, corporations get tax cuts for overseas investments. Domestic job reductions accompany them. Offshoring is rewarded.<\/div>\n
<\/div>\n
Multiple Bush tax cuts handed corporations around $3.4 trillion. Doing so was hailed as a way to create jobs.<\/div>\n
<\/div>\n
Post-recession jobs creation during the early 2000s was the weakest on record. It took 46 months to recover those lost.<\/div>\n
<\/div>\n
It’ll take over a decade now. The so-called 2007 – 2009 Great Recession continues to take an enormous toll on ordinary Americans. Main Street Great Depression conditions persist unabated.<\/div>\n
<\/div>\n
Low pay\/poor or no benefit part-time jobs replaced higher paying, good benefit full-time ones. It’s been ongoing for decades. America is in economic decline.<\/div>\n
<\/div>\n
Offshoring millions of jobs exacerbates hard times. According to Paul Craig Roberts, only fools believe doing so is good for America.<\/div>\n
<\/div>\n
Likeminded so-called experts can’t see the forest through the trees. US corporations are hoarding cash. Bush and Obama tax cuts added $10 trillion or more to their balance sheets.<\/div>\n
<\/div>\n
Much was shifted to offshore subsidiaries. Doing so avoids US taxes altogether. It’s unknown how much corporate wealth sits in tax havens. Perhaps trillions from generous business handouts.<\/div>\n
<\/div>\n
During the height of 2008 crisis conditions, $168 billion stimulus legislation was enacted. About $90 billion went to business and rich elites.<\/div>\n
<\/div>\n
Jobs were lost, not created. From July through December 2008, nearly a million a month disappeared. Doing so matched the 1929-1930 rate.<\/div>\n
<\/div>\n
Obama’s February 2009 $787 billion stimulus bill handed corporations nearly $400 billion in tax cuts. Over $225 billion went for business\/investor cuts.<\/div>\n
<\/div>\n
Through December 2010, zero jobs were created. Part-time ones replaced higher paying full-time jobs. <\/div>\n
<\/div>\n
Hundreds of thousands of federal, state and local public workers were laid off. Current unemployment tops 23%. <\/div>\n
<\/div>\n
Official numbers are fake. They mask the greatest jobs crisis since the Great Depression. Before this one ends, it may be greater.<\/div>\n
<\/div>\n
Bush and Obama benefitted corporations and rich elites hugely. They never had it better. Unprecedented wealth amounts shifted from ordinary people to them.<\/div>\n
<\/div>\n
The great wealth transfer heist continues. America is being thirdworldized in the process. Employment opportunities are dreadful.<\/div>\n
<\/div>\n
It bears repeating. Tax cuts don’t create jobs. They could if linked to jobs creation. They haven’t been since Kennedy’s mandate.<\/div>\n
<\/div>\n
Democrats and Republicans today are polar opposite. Reverse Robin Hoodism is policy. It created the greatest wealth disparity in US history.<\/div>\n
<\/div>\n
Half or more of US households are impoverished or bordering it. Good jobs are disappearing in plain sight. Nearly 50 million Americans need food stamps to eat. <\/div>\n
<\/div>\n
Hard times are getting harder. Needy households are increasing exponentially. At the same time, corporate profits are higher than ever.<\/div>\n
<\/div>\n
Business taxes are way too low. The top nominal rate is 35%. Obama, Republicans and many Democrats plan cutting it to 28 or 25%.<\/div>\n
<\/div>\n
Senate Finance Committee chairman Max Baucus (D. MT) is retiring this year. He favors lower corporate rates. He helped spearhead Obamacare’s enactment.<\/div>\n
<\/div>\n
Doing so wrecked America’s healthcare system. It did so to benefit business. The full fallout remains to unfold.<\/div>\n
<\/div>\n
One of many propagated myths is that US corporations pay too much in taxes. “Abolish the Corporate Income Tax<\/span><\/a>,” says Kotlikoff. He wants people to believe what’s untrue.<\/div>\n
<\/div>\n
“Just ask” Seattle-based Boeing machinist workers, he said. They accepted major contract concessions. They did so for greater “long-term success,” Kotlikoff claimed.<\/div>\n
<\/div>\n
False! Contract terms substitute largely worker funded 401ks for company-paid pensions, higher healthcare costs, reduced wage increases, and no strikes.<\/div>\n
<\/div>\n
Heavy pressure was applied. Union bosses claimed 51% of International Association of Machinists approved what no workers want. Others claimed vote rigging.<\/div>\n
<\/div>\n
Kotlikoff said Boeing workers acted in their own best interest. How does cutting their standard of living do so?<\/div>\n
<\/div>\n
“In recent decades, American workers have suffered one body blow after another,” he admitted.<\/div>\n
<\/div>\n
“What can (they) do to mitigate their plight,” he asked? Eliminate corporate taxes, what else.<\/div>\n
<\/div>\n
“It’s not…a giveaway to the rich,” he maintains. Corporate taxes are “economically self-defeating.” They hurt “workers, not capitalists…”<\/div>\n
<\/div>\n
He claims America “may well have the highest effective marginal corporate income tax rate of any developed country.”<\/div>\n
<\/div>\n
As explained above, nominally it’s 35%. Bipartisan complicity agreed to cut it to 28 or 25%. Most large corporations pay less than half that amount.<\/div>\n
<\/div>\n
Many pay much less. Some pay nothing. Others get rebates in profitable years. Corporate taxes have been in free fall for decades.<\/div>\n
<\/div>\n
As a percent of GDP and national income, they’re half what they were two decades ago. They’re going lower. Obama demands it. He’s doing so while waging war on ordinary Americans.<\/div>\n
<\/div>\n
He’s one-sidedly pro-business. He’s anti-labor, anti-populist, anti-fairness. He wants greater austerity than already. He wants America’s social contract eliminated. <\/div>\n
<\/div>\n
He wants corporate giants handed trillions more than already. So does Kotlikoff. He supports the great tax giveaway.<\/div>\n
<\/div>\n
He wants corporate ones entirely eliminated. He claims maintaining them gets business to shift operations abroad.<\/div>\n
<\/div>\n
They do so largely for lower labor costs. They’re in countries with no worker protections. They’re free to exploit their workforce for greater profits.<\/div>\n
<\/div>\n
Kotlikoff claims eliminating corporate taxes assures a “stunningly large” economic windfall. He’s for raising personal income tax rates at the same time.<\/div>\n
<\/div>\n
He wants ordinary people to bear the burden. They do so more than ever now. He claims hitting them when they can least afford it “leads to a short-run inflow of capital.”<\/div>\n
<\/div>\n
It’ll “rais(e) (America’s) capital stock (machines and buildings) by 23 percent, output by 8 percent, and the real wages of unskilled and skilled workers by 12 percent,” he maintains.<\/div>\n
<\/div>\n
It bears repeating. Corporate tax cuts don’t create jobs. Clear evidence proves it. Throughout the new millennium, profits shifted abroad tax free. <\/div>\n
<\/div>\n
They remain on business balance sheets. They went for stock buybacks, dividends, high executive salaries and bonuses, as well as other unrelated non-job creation purposes.<\/div>\n
<\/div>\n
Why else would unemployment exceed 23%? Inflation-adjusted wages have been declining for decades. Benefits workers took for granted are disappearing.<\/div>\n
<\/div>\n
So are good full-time jobs. Class war rages. Middle America is disappearing in plain sight. Detroit reflects nationwide decline.<\/div>\n
<\/div>\n
Other troubled cities include major ones. Growing millions are on their own sink or swim. Predatory capitalism is malignant. It’s eating its seed corn. It’s killing its host.<\/div>\n
<\/div>\n
It’s been a stunning failure for decades. It hollowed out America. It harms its most vulnerable. <\/div>\n
<\/div>\n
It caused the largest municipal bankruptcy in US history. Detroit once symbolized America’s industrial might. It’s zombie-like today.<\/div>\n
<\/div>\n
Nothing is done to change things. Kotlikoff wants ordinary people hit harder. He claims raising their tax burden lifts all boats. <\/div>\n
<\/div>\n
He says it does so when coupled with eliminating corporate taxes. He shows a shocking disregard for human welfare.<\/div>\n
<\/div>\n
His formula assures greater crisis conditions. Millions already can’t cope. More add to their ranks daily. Raising their taxes will accelerate the process.<\/div>\n
<\/div>\n
How can destroying the well-being of most Americans be beneficial? Kotlikoff apparently believes doing so will save them. He admits that inflation-adjusted wages are “10 percent lower today than (in) 1966.”<\/div>\n
<\/div>\n
“This is America’s nightmare, not its dream,” he explains. “Turning things around requires getting a lot of things right, starting, (he argues) with corporate tax reform.”<\/div>\n
<\/div>\n
In 2007, his book titled “The Healthcare Fix” proposed ending Medicare, Medicaid, and employer-provider insurance. <\/div>\n
<\/div>\n
He wants government-provided vouchers replacing them. He wants their cost maintained at a fixed 10% of GDP. <\/div>\n
<\/div>\n
Well-off recipients could supplement coverage by buying more on their own. Others would be stuck with bare bones care.<\/div>\n
<\/div>\n
Corporations are Kotlikoff’s concern. Ordinary people don’t matter. Deepening social inequality is OK. <\/div>\n
<\/div>\n
Human misery is out of sight and mind. Kotlikoff’s formula assures hard times getting harder for growing millions.<\/div>\n
<\/div>\n
America already is unfit to live in. Kotlikoff wants impossible conditions for most people. Imagine if it turns out this way. Imagine the worst of all possible worlds.<\/div>\n
<\/div>\n
Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net. <\/div>\n
<\/div>\n
His new book is titled “Banker Occupation: Waging Financial War on Humanity.”<\/div>\n
<\/div>\n
http:\/\/www.claritypress.com\/LendmanII.html<\/div>\n
<\/div>\n
Visit his blog site at sjlendman.blogspot.com. <\/div>\n
<\/div>\n
Listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network.<\/div>\n
<\/div>\n
It airs Fridays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.<\/div>\n
<\/div>\n
http:\/\/www.progressiveradionetwork.com\/the-progressive-news-hour<\/div>\n
<\/div>\n

<\/p>\n

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