Republicans Block Attempts To Get Corporations To Pay Their Fair Share of Taxes

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Patriotism is love of country, devotion to the welfare of one’s fellow citizens, and the virtuous passion which inspires one to serve one’s country. Economics is the science that studies the processes governing the production, distribution, and consumption of goods and services in an exchange economy. The idea of economic patriotism, although a curious concept, is a principle President Obama hopes will encourage Republicans to stop “hollowing out a tax base” meant to starve government and show patriotism to America instead of the group they love, are profoundly devoted to, and are passionate to serve above all others

It is no secret Republicans and their corporate masters detest paying taxes, and to eliminate any possibility of ever paying taxes on their record profits, many corporations are moving their corporate addresses foreign countries. The tactic is called “inversion” and Republicans support the corporate maneuver to, as Treasury Secretary Jacob Lew said, “avoid paying their fair share of taxes” that is costing America billions upon billions of dollars. Secretary Lew sent a letter to Congress urging them to stop the “hollowing out of the U.S.’s corporate income tax base,” and said Republicans “should not be providing support for corporations seeking to shift their profit overseas to avoid paying taxes.”

Republicans naturally demurred to the corporate position that unless America changes its tax policy and stops taxing income earned abroad, or “reforms” the tax code to eliminate the government’s ability to tax corporate income earned at home, they will block any attempt to stop inversions. The bottom line is Republicans, like their corporate funding mechanism, do not believe and will not support any legislation that taxes corporate profits; either abroad or at home.

Republicans and corporations falsely claim America’s corporate tax rate is the highest in the world at 35%. But that, like everything Republicans say, is a bald-faced lie. It is true the “official” corporate tax rate is 35%, but according to the Government Accountability Office, the effective, or real, rate corporations pay is 12.6%; clearly one of the lowest in the world. The 12.6% figure does not take into account corporations that claim no income or profit, or the inordinately large number of the richest corporations that pay nothing in taxes and get a refund from other taxpayers; 12.6% is the effective rate for corporations that do pay taxes. Republicans want to “reform” the tax code to guarantee that all American corporations pay nothing in taxes and get refunds (direct payment) from American taxpayers.

According to Citizens For Tax Justice, 26 of America’s wealthiest Fortune 500 corporations pay absolutely zero in taxes on huge profits. This is in addition to corporations that profited, and took outrageous tax write-offs, for closing and moving their operations, and American jobs, out of country to avoid paying taxes and take advantage of slave-wages in poor countries. Driven by their devotion to unlimited corporate profits, Republicans have even blocked attempts to pass legislation giving corporations tax breaks to bring operations and Americans’ jobs back home because their patriotism is to corporations; not America, its economic health, or American workers.

In 2012, President Obama began pressing Congress to pass the “Bring American Jobs Home Act” that eliminates corporations’ ability to deduct the cost of moving American jobs overseas from their taxes, and instead gives them an equivalent tax write-off for “re-shoring jobs from abroad to America.” Because it is an election year, Senate Republicans will finally allow limited debate on the bill (S. 2569), but they will not allow it to come up for a vote; doing so is committing treason against corporations.

Senate Minority Leader Mitch McConnell confirmed Republicans will filibuster, and block, a vote on the bill complaining that “It’s a bill that’s designed for campaign rhetoric and failure, not to create jobs here in the U.S., everyone knows that the Democrats aren’t being serious here.” Of course, McConnell is a liar; Democrats did attempt to pass the same bill in 2012, but Republicans obstructed their efforts because they “chose job-exporting corporations over American workers.” Their successful obstruction inspired Senator Debbie Stabenow (D-Mich) to say, “It’s outrageous that workers are paying to ship their own jobs overseas through the tax code. We should be rewarding companies that are bringing jobs home. This is about jobs. I hope that all of our colleagues, regardless of party, will join our fight to give every American worker a fair shot to get ahead.” Republicans will never join a fight to give American workers any shot, even if the workers pay corporations to move jobs back to America because the only thing Republicans hate more than American workers is the idea of corporations paying taxes here at home.

On Tuesday Stabenow rhetorically asked why Republicans are against eliminating subsidies to corporations sending Americans jobs overseas and wondered aloud; “Why would someone vote against this? You really think that American workers should pay the cost of the move when their jobs are being shipped overseas? Really?” Yes really. In fact, Republicans think that Americans should pay corporations directly for being American corporations, and it is why if corporations do not get the tax reform (zero tax rate) that allows them to operate tax-free in America, Republicans will block legislation stopping them from incorporating in foreign countries to avoid paying taxes.

The President calling on Republicans to demonstrate economic patriotism is as futile as expecting them to demonstrate patriotism to their country or the welfare of their fellow citizens. Their patriotism is to corporations, and in their minds asking them to pay their fair share in taxes is tantamount to treason. There is also the motivation to starve the government of revenue to fulfill Grover Norquist’s goal of “shrinking the government to a size they can drown in a bathtub.” Republicans cannot tolerate the idea of government having enough revenue to rebuild roads, bridges, hospitals, and schools, but they do support taxing other Americans and using the revenue to enrich corporations with more tax breaks and subsidies to move American jobs offshore. It is their idea of tax reform.

Republicans can no longer claim giving tax cuts to corporations is to inspire them to be the storied “job creators” they have claimed for the past thirty years, because part and parcel of those cuts are specifically to send American jobs overseas and reduce rates so low they will effectively be zero. Congressional Republicans claim they are open to stopping corporate inversions, but only after Democrats agree to cut corporate tax rates to get them closer to zero. If the official rate is 35% and corporations are only paying 12.6%, the 15% reduction Republicans demand will bring the effective rate to zero. Republicans also oppose incentivizing corporations to “re-source” American jobs because they enjoy killing jobs; not creating them. After four years of imposing cuts that kill jobs, obstructing job programs, even for returning war Veterans, they are not about to start helping America workers now because their loyalties, like their patriotism, is with corporations, not Americans.

 

 

 

27 Replies to “Republicans Block Attempts To Get Corporations To Pay Their Fair Share of Taxes”

  1. The author of the book, What’s The Matter With Kansas, Thomas Frank could have predicted this. He thought that Sam Brownbeck was an extremist nut bar when he was still just a Senator, and this was back when he wrote the book back in 2004, when George Bush was president and there was no such thing as the Tea Party or the Obama Derangement Syndrome.

    I can only IMAGINE what he thinks of Kansas politics now and hope he writes a sequel to the book.

  2. Let them go overseas then and impose high tariffs on the products they import. The more slave labor they use, the higher the tariff. Suddenly American workers are competitive again. It’s really not that hard unless your legislators are owned by those corporations. Get the money out of politics. ALL elections should be publicly funded.

  3. I say if a US corporation moves their corporate offices offshore to dodge taxes then they relinquish their right to do business in this country and should be required to close up shop. For instance Wallgreens. If they do as they are saying they will do by moving their corporate office to Switzerland then they should be forced out of business in the U.S. Doing something like this is equivalent to treason, and a corporate death penalty is warranted.

  4. Perhaps we could tax their assets held here in the U.S. to make up the difference. Tax the hell out of EVERYTHING that can’t be moved overseas. Buildings, vehicles, land, EVERYTHING they own.

  5. Oh you got it right in the first place, it’s because Brownback’s lax tax politics are messing up Kansas. Kansas is now #1 for mass exodus of its citizens to flee out of that state. Kansas is now also #1 for newly graduated high schoolers to fled out of state immediately. In the term of citizens per capita, nobody wants to stay in Kansas for long term. Yet Brownback are blaming everything on… Surprise… Surprise… Obama.

  6. If mid-terms give Dems control of the House, pass legislation revoking Most Favored Nation trading status to any country that seeks to lure American companies overseas with lowered tax rates.

    Switzerland, first.

  7. Second that lori. When it is no longer profitable to pay slave wages, when the product is taxed very high, then and only then will these rich corporations begin to change minds.
    What I can not get is why, the congress does not seem to be able to understand this concept. Seems rehugs have only one agenda, destroy America. Let bridges, roads, schools, the poor the under educated, let them all fall , don’t bother to see, hear or care. As long as I have mine, is the rethugs only religion.

  8. For more than three years, I’ve debunked the GOP’s “tax cuts for the ‘job creators’ creates jobs” talking point.
    Kansas and California are perfect examples of why I’m correct….
    Kansas’ Republicans cut taxes and the state government suffered, big-time. But, the tax cuts aren’t MEANT to create jobs…instead they do what they were intended to do: make the wealthy and big corporations even wealthier.
    Meanwhile, California has its first state legislature where the Democrats have a supermajority. They RAISED TAXES on the wealthy and big corporations and, Viola! Thousands of jobs have been created and they turned a huge budget deficit into a huge surplus. In fact, it’s worked so well that a One-Percenter in Silicon Valley has successfully put a petition on the ballot to split up California into six separate states. You see, if his plan is successful, he and his greedy buddies will pay less in state taxes.

  9. Billionaire Blasts Companies That Jump Overseas To Duck Taxes: ‘I’m Selling Your Stock’

    As more and more American corporations have used mergers and shell companies to shift profits and shrink their U.S. tax liabilities over the past few years, there has generally been a sharp divide between populists who decry the maneuvers and investors who celebrate them.

    Friday morning saw a high-profile defection from the economic elites’ camp, however, as outspoken billionaire investor Mark Cuban pledged to sell off his holdings in companies that move offshore for tax reasons. “If I own stock in your company and you move offshore for tax reasons I’m selling your stock,” Cuban tweeted.
    Read More
    http://thinkprogress.org/economy/2014/07/25/3464235/billionaire-blasts-overseas-mergers/

  10. The rethugs always seem gung ho to send our troops to war, yet they won’t fix the VA and could care less about the troops.
    My suggestion – corporations – if they are people, and they seem the only ones who will not be made to pay taxes to support our military -then let the corporations fight the wars, it is only fair, the rethugs would rather not fund the VA than impose any kind of tax on corporations.

  11. These CRIMINALS won’t be happy until there are 50 Corporate States Of America. I for one don’t want to live in a RollerBall/ Soylent Green world. We REAL Americans need to stop the Reich Wing Criminals in their tracks! It is high time the blood<money! of these criminals to water the tree of actual Liberty and Not Conservative Corporate liberty.There does need to be another civil war and this time the Southern Strategy and the Corporate Strategy need to be obliterated! Make the Rebel flag illegal and tax churches into non-existence.

  12. If Walgreen pulls that crap off I for one being a 20+ year customer will be taking my business else where. They don`t want to pay there fair share for the roads to there stores,fire and police etc then close down and move over seas.

  13. Unfortunately, I have to get my prescriptions filled at Walgreen, due to my insurance requirements. Maybe that will change. I have Freelancer’s Insurance because I am self-employed, and they are all about USA support. Maybe they will offer something different in January 2015. My premium has not increase in 3 years. That company is very well managed, my coverage is sufficient as well.

  14. So then we should close down every editorial board in the USA, right? NSNBC/Fox also?

    It’s paid political speech, no different than the first amendment right for corporations to contribute to PAC’s.

  15. The corporate tax in the USA is the highest in the world. It’s one reason companies are off-shoring their assets.

    Lower the tax to lets say, Canada’s, and you have a starting point to bringing the money back to the USA.

    How about this; let’s eliminate corporate taxes altogether for those companies who bring manufacturing back from China and Mexico.

  16. That is a load of baloney. Corporations are exiting OUT of California because of regulation and excess taxation.

    They’re moving to Texas.

    Latest example, Toyota.

  17. Oops: The Texas Miracle That Isn’t

    Conservatives say the Lone Star state’s recent record of growth validates their economic agenda. That record crumbles upon inspection.

    But most Texas businesses, especially small ones, don’t get such treatment. Instead, they face total effective tax rates that are, by bottom-line measures, greater than those in even the People’s Republic of California. For example, according to a joint study by the accounting firm Ernst & Young and the Council on State Taxation, in fiscal year 2012 state and local business taxes in California came to 4.5 percent of private-sector gross state product. This compares with a 4.8 percent average for all fifty states—and a rate of 5.2 percent in Texas.
    http://www.washingtonmonthly.com/magazine/march_april_may_2014/features/oops_the_texas_miracle_that_is049289.php?page=all

    FACT DOES REQUIRE FICTION FOR BALANCE

  18. There *is* a civil war…it’s on us civilians.
    BTW…the churches only got their tax breaks on the condition that they do not involve themselves in politics. That was the deal with their tax-exempt status. No endorsing candidates, no preaching politics from the pulpit, no backing campaigns or promoting political agendas. Now they do that. Taxpayers should NOT be paying their share of society for them to campaign against the people in their pews! They should stick to spiritual matters only!

  19. If corporate tax rates “are the highest in the world” then how come they pay some of the lowest? I can answer that: those lobbyists main job is to carve out special loop-holes, deferments and niches for specific industries. F’rinstance, private jets are tax write-offs. Here in FL, $1,000,000 racehorses are exempt from sales taxes, as are mega-yachts, helicopters and lots more big-ticket purchases. You and I pay full taxes on our little commuter cars, toilet paper, ham sandwiches at the deli…stuff we need.

    Oh, and those “huge fines” they pay? Those are write-offs as well. They’re considered “business expenses.” Remember that next time you hear that BP (or any giant corporation) got whopping fines levied.

  20. See if you can transfer your prescription to Costco. You do not have to be a member to use their pharmacy, just tell them at the door and go right on in. (You can only purchase pharmacy & health-related items without membership. Costco also keeps their pharmaceutical prices bare-bones as a courtesy to humanity. They also pay good wages to employees!)

  21. The Republican Party is a wholly owned subsidiary of Corporate America. They don’t care about working families, they only care about the rich and big, multinational corporate profits.

  22. Thanks Patrixia, I did not know that.

    We do not have a Costco here in my area yet, but rumors are that one of our empty plazas is being staked out for a possible Costco.

    I hope so..I would love to transfer my scripts to a company that appreciates America!

    Thanks again for the info:)

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