GOP proposes new “Corporate Tax Holiday” that *YOU* will pay for

Posted on October 25, 2011

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I know you’ll find this incredibly difficult to believe, but there’s a lobbyist organization in Washington DC that’s pushing a bunch of Republicans around like household servants, demanding that politicians grant big business yet another “tax holiday” to protect their off-shore profits. It would sound incredulous if it weren’t happening on a daily basis, wouldn’t it?

Companies like Google, Apple, Pfizer, and General Electric have parked a staggering $1.4 Trillion in pure profits in offshore tax havens. They’ve stowed those funds abroad primarily to avoid having to pay federal taxes on that income. And now they’ve decided that they’re entitled to a government-backed guarantee that those profits won’t be taxed if they relocate the money back inside United States boundaries.

Instead of paying the statutory corporate income tax rate of 35 percent — or even the “effective rate,” which for most global companies, is closer to 11 percent — they’re urging Congress to let them do this at a tax rate of 5.07 percent.

You know those 47-percenters that Republicans complain don’t pay any taxes?  THEY are taxed at more than 5.07 percent.

The corpocracy is telling Congress they need a “tax holiday” to free up badly needed capital to invest in right here — creating jobs at a time when the U.S. economy is sputtering. Yup … that’s right: The (cough cough) “job creators” won’t create any jobs unless Congress gives them *MORE* tax loopholes.

They’ve formed a lobby front called the “WIN America Coalition” to make their case, spending over $50 million and hiring over 42 lobbyists that previously worked as Congressional staffers — ALL of whom served on select Congressional tax writing committees. These lobbyists already know that virtually every GOP members is already in their pocket and will already automatically support any tax cut, even in their sleep, so the lobbyists are focusing on Democratic members, trying to convince them that this *ISN’T* more corporate welfare.

The coalition’s corporate lobbyists argue this would be a win-win stimulus for the economy and a low-cost way to growth and jobs that both Republicans and Democrats could support.

The problem with these WIN America promises is this: They are lying their collective asses off. They waged this EXACT same campaign in 2004 with the same promises that they would create jobs. They got their tax breaks, they got their incentives. And America lost almost 3,000,000 jobs when the outsourcing piranha attack started under Bush’s “Jobs for America” program. We, the taxpayers, as usual, got screwed.

According to a new report, “America Loses: Corporations That Tax Holidays Slash Jobs,” most of the companies that claimed a tax holiday in 2004 dramatically reduced their national and global workforces. In fact, 58 of the large corporations that took the 2004 tax holidays shed almost 600,000 workers in subsequent years. This downsizing was not a result of the economic meltdown because the vast majority of these companies prospered. Today, these 58 companies maintain combined cash reserves of more than $450 billion. There’s nothing holding them back from investing in America. They’re just CHOOSING not to, and once again crying for more cash in their bloated reserves.

Congress shouldn’t be “fooled” again, but they will be.  Taxpayers shouldn’t get screwed again, but we will be. Limited incentives should go to activities that will create jobs, not another tax holiday for off shore tax dodgers. These companies are not in the business of creating jobs. Anyone who says otherwise is as full of sh*t as the corporate spokesman who lied through their teeth to us in 2004. They are in one business and one business only: Shifting as much wealth to their top managers and shareholders as possible.

There are other businesses out there — small businesses and domestic companies rooted in local communities that should be the objects of our encouragement and support.

Unfortunately, a segment of corporate America and the puppets they control in Congress embrace a “built to loot” business model. They shift every possible expense off their balance sheet and squeeze their stakeholders, with the exception of top management and shareholders. They outsource and offshore jobs and engage in accounting gymnastics that would make Mary Lou Retton wince — all for no other reason than to twist and trick and finagle their tax bills down to nothing. And the two-faced charlatans in Washington are only too happy to help them.

No matter what it costs … us.

 

 

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