Translate

Thursday, August 28, 2014


          Corporate Inversion II
          On the seventh of July, I wrote about corporate inversion, the despicable and, (I believe)—although currently legal, unpatriotic act of avoiding Corporate America’s fair share of corporate income taxes, i.e. their support of the cost of our government—our country. Simply stated, this is an act accomplished by moving a company’s corporate headquarters to a foreign country in order to avoid taxes.

Within the last two days, you have been literally bombarded by the media with the news of Burger King’s contemplated acquisition of Tim Horton’s, the Canadian coffee and donut chain, headquartered in Canada. Our maximum corporate tax rate is 35 percent and theirs is reported at 15 per cent, just below our effective rate of 18 per cent.

I’m going to slightly digress here to make a quick but related point. In these last two days, I have heard more discussion in the TV media about corporate inversion than I have heard over months of the past concerning this subject. Since most of our people receive the majority of their news from TV than any other source, this point is especially important, I think, because the planned Burger King inversion will have less impact on our nation than other inversions which have occurred. I think the extra attention paid to this by the TV media is due to Burger King’s recognizability by the public when compared with lesser known corporations—it’s more newsworthy, just one more example of corporate emphasis on profits than service to their customers—in this case, informing the public by the TV media. Corporate inversion is a serious subject having a significant impact on our country and our people. We shouldn't have to wait for information to be profitable in order to receive it.

May 5th, Bloomberg News reported that at least 31 publicly traded companies with U.S. roots and executive offices in the U.S. are incorporated overseas. They’re listed on U.S. exchanges, including the N.Y. Stock Exchange. Dave Johnson, a fellow with Campaign for America’s Future and a senior fellow with Renew California,   reports in Campaign for America’s Future Blog that “The share of federal revenue coming from corporate taxes has dropped from around 32 per cent in 1952 to 8.9 percent now. As a share of gross domestic product, it has fallen from about 6 per cent of GDP then to less than 2 per cent now. Meanwhile the rest of us—including small domestic companies that don’t have armies of tax consultants—have to make up that shortfall, either through increases in things like payroll taxes, or through cuts in the things government does to make our lives (an insertion by rjm: the prosperity of our country) better.” Dave Johnson goes on to tell us, “One of the larger dodges is that we allow corporations to ‘defer’ (i.e. never pay) taxes on profits made outside the U.S. So they engage in all kinds of schemes to make it look like their profits are not made here. As a result many companies owe very little tax on the proceeds from their U.S. operations, and then defer their non-U.S. profits from being ‘brought home’ to avoid paying  the taxes on non-U.S. sales. It is estimated that as much as or even more than $2 trillion of taxable profits are being hoarded outside of the U.S. because of deferral.” Pfizer alone, we are told, had as much as $73 billion in taxable profits held outside the U.S. in 2012.

What about some of our politicians whom we pay to represent us and take care of our nation’s business? It was just reported on www.thewire.com two days ago that John Boehner and Dave Camp (R-Mich.), the Republican committee chairman who overseas tax policy, reportedly profited from one corporate inversion deal. It was reported by Bloomberg that they sold “stock in Covidien Pic within nine days of an announcement that Medtronic Inc. was planning to take over the company. The stock price of Covidien jumped after the announcement of the deal, under which the new merged company would be based in Ireland and avoid paying U.S. corporate taxes.” It didn’t explicitly say, but I’m thinking “Short Sale”.

First, the Corporatocracy and Power Elite take over our government, buying our votes through mind control, propaganda, campaign financing, buying the votes of our representatives (on both sides of the aisle), lobbying, and revolving door hiring of those entering and leaving government (yes they do it both coming and going). Then they take away our jobs through outsourcing to slave labor abroad (compared to wages, benefits, and the working and living conditions of our workers in this country, rendering us uncompetitive in most instances, relatively speaking, these are slave laborers—in my mind, without a doubt). Thirdly, they effectively stagnate our wages at home; and, lastly, they are working arduously to take away our safety nets of Social Security, access to National Health Care, and social welfare needs such as disability insurance, food stamps, etc., etc. Now, they are doing everything in their power to quit paying their fair share of taxes. I’ll leave for another day the discussion of their exploitation and abuse of our natural resources and the environment. Extrapolating into the future, these people, if allowed by us to continue on their present course, will reduce the ordinary people of this country and the world to little more than animals.

Alexandra Jaffe of THE HILL–Ref: www.thehill.com, wrote on August 27th about comments Mitch McConnell made during a private strategy conference hosted by billionaires Charles and David Koch in which he laid out his strategy if the Republicans win the Senate in the November election. He said he is going to drop “all these gosh-darn proposals” being sponsored by the Democrats, “like minimum wage and extending unemployment benefits, as ‘staggering and beyond deplorable’. We’re going to go after them on healthcare, on financial services, on the Environmental Protection Agency, across the board”. Also, he stood up strongly for the decision of the U.S. Supreme Court in their decision, Citizens United v. Federal Election Commission. I call it the “Corporations are people decision”. What all these people have been discussing has nothing to do with hard work, do the right thing, equal opportunity, a government of the people, by the people, and for the people, a free and prosperous nation, etc., which they constantly proclaim. What they are putting forth and doing—right before our eyes, is repression and, eventually, our enslavement. Followed to its ultimate conclusion, we will be little more than serfs in their fiefdom, the fiefdom of a world government ruled by the Corporatocracy and Power Elite. You can be sure. It will no longer be a Shadow Government then.

And you ask. What can you do? You can stand up and shout. Get on Face Book, Twitter, and other social websites. Let those “do nothing” representatives of our government and sell-outs to the enemy know how you feel (And you can bet your sweet tooty these people about whom I have been writing are your enemy). They are not working in your interests. Write and call your representatives in the House of Representatives and the U.S. Senate as well as the President. Call into C-span. Let them know you are no longer apathetic. Most importantly, let them know you are going to the polls and vote and then go. Do it!

          Really, isn’t it worth the effort? It’s your country. Protect it or lose it. Vote for tomorrow. It will matter to you and your children then. Vote for tomorrow. Don’t vote for yesterday. This is serious stuff. You don’t have to take this “crap” you are being dealt.

Ronald Miller

Email me at mtss86@comcast.net

No comments:

Post a Comment