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“The Real Welfare Cheats”: The Big Problem Of Welfare Dependency In America Now Involves Entitled Corporations

We often hear how damaging welfare dependency is, stifling initiative and corroding the human soul. So I worry about the way we coddle executives in their suites.

A study to be released Thursday says that for each dollar America’s 50 biggest companies paid in federal taxes between 2008 and 2014, they received $27 back in federal loans, loan guarantees and bailouts.

Goodness! What will that do to their character? Won’t that sap their initiative?

The study was compiled by Oxfam and it comes on top of a mountain of evidence from international agencies and economic journals underscoring the degree to which major companies have rigged the tax code.

O.K., O.K., I know you see the words “tax code” and your eyes desperately scan for something else to read! Anything about a sex scandal?

But hold on: The tax system is rigged against us precisely because taxation is the Least Sexy Topic on Earth. So we doze, and our pockets get picked.

John Oliver has a point when he says, “If you want to do something evil, put it inside something boring.” The beneficiaries of tax distortions are counting on you to fall asleep, but this is a topic as important as it is dry.

It’s because the issues seem arcane that corporate lobbyists get away with murder. The Oxfam report says that each $1 the biggest companies spent on lobbying was associated with $130 in tax breaks and more than $4,000 in federal loans, loan guarantees and bailouts.

And why would a humanitarian nonprofit like Oxfam spend its time poring over offshore accounts and tax dodges? “The global economic system is becoming increasingly rigged” in ways that exacerbate inequality, laments Ray Offenheiser, president of Oxfam America.

One academic study found that tax dodging by major corporations costs the U.S. Treasury up to $111 billion a year. By my math, less than one-fifth of that annually would be more than enough to pay the additional costs of full-day prekindergarten for all 4-year-olds in America ($15 billion), prevent lead poisoning in tens of thousands of children ($2 billion), provide books and parent coaching for at-risk kids across the country ($1 billion) and end family homelessness ($2 billion).

The Panama Papers should be a wake-up call, shining a light on dysfunctional tax codes around the world — but much of the problem has been staring us in the face. Among the 500 corporations in the S.&P. 500-stock index, 27 were both profitable in 2015 and paid no net income tax globally, according to an analysis by USA Today.

Those poor companies! Think how the character of those C.E.O.s must be corroding! And imagine the plunging morale as board members realize that they are “takers” not “makers.”

American companies game the system in many ways, including shifting profits to overseas tax havens. In 2012, American companies reported more profit in low-tax Bermuda than in Japan, China, Germany and France combined, even though their employees in Bermuda account for less than one-tenth of 1 percent of their worldwide totals.

Over all, the share of corporate taxation in federal revenue has declined since 1952 from 32 percent to 11 percent. In that same period, the portion coming from payroll taxes, which hit the working poor, has climbed.

Look, the period of the Oxfam study included the auto and banking bailouts, which were good for America (and the loans were repaid); it’s also true that the official 35 percent corporate tax rate in the U.S. is too high, encouraging dodging strategies. But we have created perverse incentives: C.E.O.s have a responsibility to shareholders to make money, and tax dodging accomplishes that. This isn’t individual crookedness but an entire political/economic system that induces companies to rip off fellow citizens quite legally.

It’s now widely recognized that corporations have manipulated the tax code. The U.S. Treasury, the World Bank, the International Monetary Fund, the European Union and professional economic journals are all trying to respond to issues of tax evasion.

Bravo to the Obama administration for cracking down on corporations that try to move abroad to get out of taxes. Congress should now pass the Stop Tax Haven Abuse Act, and it should stop slashing the I.R.S. budget (by 17 percent in real terms over the last six years).

When congressional Republicans like Ted Cruz denounce the I.R.S., they empower corporate tax cheats. Because of I.R.S. cuts, the amount of time revenue agents spend auditing large companies has fallen by 34 percent since 2010. A Syracuse University analysis finds that the lost revenue from the decline in corporate audits may be as much as $15 billion a year — enough to make full-day pre-K universal.

Meanwhile, no need to fret so much about welfare abuse in the inner city. The big problem of welfare dependency in America now involves entitled corporations. So let’s help those moochers in business suits pick themselves up and stop sponging off the government.

 

By: Nicholas Kristof, Op-Columnist, The New York Times, April 14, 2016

April 16, 2016 Posted by | Corporate Welfare, Tax Code, Tax Evasion | , , , , , , | Leave a comment

“The Real Scandal In Denny Hastert’s Life”: Immersed In The Immoral Swamp Of Washington’s Game Of Money Politics

Washington’s establishment of politicos, lobbyists, and media sparklies are shocked — shocked to their very core! — by the scandalous sexual revelations about Dennis Hastert.

The portly Republican, who’d been Speaker of the House a decade ago, was an affable, nondescript Midwesterner who was popular with his fellow lawmakers. A former high-school wrestling coach in rural Illinois, Hastert was viewed as a solid salt-of-the-Earth fellow embodying Middle America’s moral values. So his recent indictment for paying $1.7 million in hush money to a man he apparently molested during his coaching years has rocked our Capitol.

“I’m shocked and saddened,” said the current GOP Speaker, John Boehner. Likewise, former colleagues from both sides of the aisle were dismayed that “our Denny” would have been engaged in child molestation and now caught in an illegal financial cover-up of that abomination. “This has really come out of nowhere,” exclaimed Rep. Peter King, a longtime ally of the man whom all of Washington considered a straight arrow.

Washington’s gossip mill is spinning furiously over last week’s revelations. Before we join these officials in wailing about Dennis Hastert’s alleged long-hidden molestation, however, let me note that while they are bewildered by his sexual impropriety, they find it not worthy of mention — much less condemnation — that Denny has long been immersed in the immoral swamp of Washington’s game of money politics. The guy they profess to love as a paragon of civic virtue — “the coach,” as Rep. King hailed him — was one of the most corrupt Speakers ever. What about the filthy, backroom affair he has been openly conducting with corporate lobbyists for nearly two decades?

During his tenure as House Speaker, Hastert turned the place into the Willy Wonka Chocolate Factory of corporate favors. By putting campaign cash into Republican re-election coffers controlled by him and his top hitman, Majority Leader Tom DeLay, corporate interests gained entry into Denny’s psychedelic playhouse. With Hastert himself singing “Candy Man,” the favor seekers could help themselves to the river of chocolate running through Congress’ back rooms.

Remember “earmarks,” the sneaky tactic of letting congressional leaders secretly funnel appropriations to favored corporations and projects? Earmarks became the trademark of Hastert’s regime, sticking taxpayers with the tab for such outrages as Alaska’s “Bridge to Nowhere.” Indeed, Denny grabbed a $200 million earmark for himself, funding an Illinois highway near land he owned — land he then sold, netting millions in personal profit.

When he left Congress, Hastert moved just a short limo ride away to become — what else? — a corporate lobbyist. Trading on his former title, personal ties to House members and knowledge of how the chocolate factory runs, he has been hauling in a fortune as a high-dollar influence peddler for makers of candy-flavored cigarettes, Peabody Coal Company, land developers and other giants. And guess what his specialty is? Getting “riders” attached to appropriations bills, so public money is channeled directly to his clients.

Hastert openly traded legislative favors for campaign cash, including profiting personally from his powerful position. And, when he was squeezed out because of the corruption, he didn’t return to the home folks — he became a K-Street lobbyist, continuing to profit to this day by doing corporate favors. That’s how he got so rich he was able to shell out $1.7 million in hush money to the student he abused.

Good ol’ Denny has always thought he was above the law. Just as Hastert should be held accountable for the deep personal damage his alleged molestation would’ve done to his former student, so should he also pay for his abominably indecent abuse of office, his self-gratifying groping of public funds and his repeated, sticky-fingered violations of the American people’s public trust.

 

By: Jim Hightower, The National Memo, June 3, 3015

June 5, 2015 Posted by | Corporate Welfare, Dennis Hastert, Sexual Molestation | , , , , , , , | 2 Comments

“Citigroup Becomes Its Own Self-Serving Lawmaker”: 21st Century Civics Lesson; How A Corporate Bill Becomes A Law

Congress, which has long been so tied up in a partisan knot by right-wing extremists that it has been unable to move, suddenly sprang loose at the end of the year and put on a phenomenal show of acrobatic lawmaking.

In one big, bipartisan spending bill, our legislative gymnasts pulled off a breathtaking, flat-footed backflip for Wall Street, and then set a dizzying new height record for the amount of money deep-pocketed donors can give to the two major political parties. It was the best scratch-my-back performance you never saw. You and I didn’t see it — because it happened in secret.

The favor was huge — allowing Wall Street’s most reckless speculators to have their losses on risky derivative deals insured by us taxpayers. Yes, such losses were a central cause of the 2008 financial crash and subsequent unholy bank bailout, which led to passage of the Dodd-Frank reform law, including a provision sparing taxpayers from covering future losses. But with one, compact, 85-line provision inserted deep inside the 1,600-page, trillion-dollar spending bill, Congress did a dazzling flip-flop on that regulation, putting us taxpayers back on the hook for the banksters’ high-risk speculation.

In this same spending bill, Congress also used its legislative athleticism to free rich donors (such as Wall Street bankers) from a limit of under $100,000 on the donation that any one of them can give to political parties. In a spectacular gravity-defying stunt, lawmakers flung the limit on these donations to a record-setting 15 times higher than before. So now bankers who are grateful to either party for being able to make a killing on taxpayer-backed deals can give $1.5 million each to the parties.

Perhaps you recall from your high school civics class that neat, one-page flow chart showing the perfectly logical, beautifully democratic process that Congress must go through to pass our laws.

What a bunch of kidders those chart makers were! To see how the sausage is really made, let’s take a look at that trillion-dollar budget bill that Congress squeezed out just before Christmas. It was crammed with special corporate favors, such as: reinstating a Bush rule allowing mining giants to explode the tops off ancient Appalachian mountains and then bulldoze the rubble down into the valley below, destroying pristine mountain streams; another letting long-haul trucking outfits require their drivers to be on the road more than 11 hours a day and up to 82 hours per week, filling our highways with highballing, sleep-deprived truckers; and cutting $60 billion from the Environmental Protection Agency, freeing up polluters to go unpunished for polluting.

None of these favors had anything to do with that “how a bill becomes law” flow chart in our civics textbook. No bill was filed, no public hearings, no debate, no vote. Just — BAM! — there they were, a thicket of benefits secretly slipped into the 1,600-page budget bill by … well, by whom? Largely by corporate lobbyists, though they get one of their for-hire congresscritters to do the actual dirty deed.

The taxpayer subsidy for Wall Street, for example, was written by Citigroup. The bank’s lobbyists then handed the provision to Kansas Republican Kevin Yoder, who slipped it into the bill. Thus, the Wall Street conglomerate that took a $50 billion bailout from us taxpayers just seven years ago to save itself from its own bad deals essentially was allowed to become an unelected, self-serving, do-it-yourself, backroom “lawmaker” to make sure that your and my tax dollars will be there to cover its next mess-up.

And that, boys and girls, is the real flow chart for making our laws. It’s always an amazing sight when Wall Street and Congress get together — especially when they get together out of sight.

 

By: Jim Hightower, The National Memo, December 24, 2014

December 27, 2014 Posted by | Citigroup, Congress, Wall Street | , , , , , , , , | Leave a comment

“So, Who’s Getting The Gigs?”: When The GOP Goes On A ‘Hiring Spree’

If you want to know where Congress is headed, it obviously makes sense to take a close look at elected lawmakers themselves.  But to understand how they intend to get there, you’ll need to understand who they’re hiring.

As Republicans get ready to take complete control of Capitol Hill, GOP officials are going on a “hiring spree,” especially in the Senate, where the new majority will have expanded staffs at both the leadership and committee level.

So, who’s getting the gigs? We can break them down into two broad groups of people. The first, as Anna Palmer reported the other day, are corporate lobbyists.

Lobbyists can come home again.

As Republicans take control of Congress, they are bringing in veteran influence peddlers to help them run the show. Nearly a dozen veteran K Streeters have been named as top staffers to GOP leaders or on key committees as lawmakers prepare to take the gavel in January.

And why would lobbyists leave better-paying jobs at K Street firms in order to tackle unglamorous work on Capitol Hill? Because as any good lobbyist knows, they can, when they’re done with their congressional work, return to K Street and demand even more money.

In the meantime, the line between corporate lobbyists and congressional Republicans has long been blurry, but the partnership will now be even stronger as the GOP takes over the Senate for the first time in eight years.

But they’re not the only ones getting new gigs in Congress. The other group includes Heritage Action staffers.

Heritage Action for America is losing three staffers, including its top House lobbyist, to a trio of newbies in the 114th Congress. […]

“One of the great roles of having a permanent 300-person institution is that people take what they learn here and spread that throughout the universe,” said Heritage Action for America’s CEO Michael Needham.

Depending on one’s perspective, that’s either very nice or very scary.

Regardless, taken together, staffing moves like these tell us something interesting about who’ll be doing the legislative legwork for the next couple of years.

 

By: Steve Benen, The Maddow Blog, December 22, 2014

December 24, 2014 Posted by | Congress, GOP, Jobs | , , , , , | Leave a comment

   

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