A simple change we need from Washington

I've said repeatedly here that one of the easiest, simplest and smartest things we need to do is have one enterprising representative in Congress in Washington introduce a bill that would take away incentives to take any manufacturing or business offshore.  Here's proof of what I'm saying from an article yesterday on Alternet:

According to the non-partisan Government Accountability Office (GAO), eighty-three of the 100 largest publicly traded U.S. corporations utilize such tax havens to reduce their U.S. tax liability. Ironically, these accounting tricks aren’t available for companies that only do business in the United States, so Congress in effect is providing tax incentives to ship jobs overseas and dismantle the middle class.


It would be so easy.


And smart.


Some bright--even demagoguic--representative or senator should sponsor a bill taking away tax benefits to offshore business and first, they'd be a huge media darling, overnight.  Second, they'd be hugely popular with the people, just as quick.  Third, they would gain a great name for themselves locally, in their own districts but also nationally, in case they wanted to run for some other, higher office later.


This would be perfect for ANYONE in any political party--Democrat, Republican, Libertarian, Independent but especially a Tea Party member.


I don't understand why this isn't happening.


Well, other than the fact that some corporations might not want to give them more campaign money.  Other than that.


Link:   http://www.alternet.org/economy/150598/how_12_multinational_corporations_avoid_paying_taxes

Note to Washington: A minimum corporate tax makes sense

There is a great article out right now on The Huffington Post by Chuck Collins making a terrific point:

We're chumps unless we force Congress to stop tax haven abuse.



Instead of cutting state and federal budgets, the United States should crack down on the corporate tax dodgers thumbing their noses at us.


Across the nation, states are making deep cuts that will wreck the quality of life for everyone to close budget gaps that total more than $100 billion.


But there's a more sensible option. Overseas tax havens enable companies to pretend their profits are earned in other countries like the Cayman Islands. Simply making that ruse illegal would bring home an estimated $100 billion a year.


The next time you read a story about some politician bemoaning that "there's no money" and "we have to make cuts," just point to artful tax dodgers in our midst.

They include some of the banks that trashed the economy but gladly took our tax dollars to stay alive after the economic meltdown. Bank of America. Wells Fargo. Citigroup.


Goldman Sachs took a $10 billion taxpayer bailout but then gamed its effective tax rate down to one percent through what its shakedown-artist executives call "changes in geographic earnings mix." Shame on them. Pay up.


See that FedEx delivery van go by on the roads you paid for? Pay up FedEx! Don't pretend you're not making billions in the U.S. Don't lie and tell us you made all those profits on some island with more palm trees than people. We know the demand for coconut delivery isn't that big.


These corporations are heavy users of our taxpayer funded public infrastructure and property rights protection systems. They use our regulated marketplace, call upon our law enforcement system and judiciary to remedy disputes. They're protected by U.S. police forces and firefighters. They enjoy all the privileges and benefits of tax-paying citizens. They just don't pay their fair share for them.


So, ExxonMobil: the next time your gas station erupts in flames, why don't you call the fire department on the Cayman Islands? Or when someone holds up the joint, how about calling the Luxembourg police, since that's where you claim your profits so you don't have to pay the taxes you owe Uncle Sam.


Hey, Pfizer. Without our remarkable taxpayer-funded system of patents and intellectual property rights protections, everyone and their brother would be making Viagra and undercutting your sales of little blue pills. Pay up!


Those of us who pay sales taxes and have income taxes withheld from our paychecks will bear the brunt of state and federal budget cuts in schools, public transportation, and recreational facilities. Our most vulnerable family members and neighbors will suffer thanks to cuts in mental health services, elder care, and Medicaid.


Oh yes, and children. Arizona is cutting health care for 47,000 children. California, New York and Mississippi are cutting K-12 education funding. Hey, kids don't vote. Nor do they have corporate lobbyists. An estimated 900,000 jobs will be cut, including teachers, firefighters, police officers, and medical first responders.


Boeing, you want another contract for a taxpayer-funded military jet? Well, pay up! Pay up General Electric, Mattel, Dow Chemical, Hewlett-Packard, and Cisco. Yes, we know you pay some taxes. But look these children who are losing their health insurance and teaching aides in the eye. Tell them you're paying your fair share.


These global corporations will complain that forcing them to pay their fair share of taxes will "kill jobs." Let's be clear: the patriotic businesses that currently pay their taxes and have to compete against these tax dodgers are the employers we want. It undercuts U.S. jobs for domestic banks, retailers, and manufacturers to have to compete against companies that can game the tax system.


The next time you're waiting longer for a bus or train than you should, or someone you know can't get timely mental health or drug treatment services, remember the tax dodgers. The next time your car hits a pothole or your kid's teacher loses her job, remember the corporations that are using armies of accountants to lower their tax bills.


In a democracy, if we sit back and just grumble, we get what we deserve. We're chumps until we wake up and force our members of Congress to stop tax haven abuse.

I ask here again, why isn't there at least say a 10% minimum corporate tax (or some such fair and wise amount) which any and all should pay so a) they have access to our markets and b) they support our infrastructure and so, in effect, the country itself they're benefiting from?

Isn't that the least they can do?  Isn't it the least we can ask of them?

Wouldn't it be downright patriotic to pay, on their part, let alone fair?

And why is no one proposing this?

Link to original post:  http://www.huffingtonpost.com/chuck-collins/pay-up-corporate-tax-dodg_b_828925.html   (Thanks and a hat tip to longtime friend Dennis for pointing out this article).

The gross unfairness and imbalance of corporations

A headline today points out one of the many inherent unfairnesses and imbalances created by the constantly-demanded profits of corporations. Here it is: FedEx 1Q profit doubles; will cut 1,700 jobs It's insane. They double their profit for the first quarter of this year but they slash jobs by 1700. Here's another insanity--these same corporations that do this still expect the great unwashed masses out here to buy and use their products and services. How can we do that, if we get pay cuts or, worse, fired or "let go"? When it used to be "mom and pop" businesses, people realized there were business cycles and we all lived with them. But now, in the modern, corporate world, these same corporations constantly demand profits and, worse, increases in profits, resulting in situations like this where, sure the business not only made money but made twice as much, during the quarter, as it did earlier. But that's not enough. It's never enough. So what do they do? Fire people. They "make them unemployed". It's ugly. It's incongruous. It makes no sense. And yes, I know I'm looking at a smaller, one-quarter of the year picture but the point is still very valid. This is a smaller microcosm of what happens in our corporate culture, in the broader view, absolutely. The trouble is, without a full collapse of Western society, there's no way to stop this process, either. The corporations will keep demanding ever-larger profits and, to make matters worse exponentially, they will also keep merging with other companies and devouring each other, which makes for less jobs due to duplication of work, once those companies do combine. In short, to summarize--we're screwed, you and I. Good luck out there today. Try to enjoy the weather. Link to original story: http://news.yahoo.com/s/ap/20100916/ap_on_bi_ge/us_earns_fedex

You are to be used---and discarded

Guest post on labor and corporations in the US today:

Boycott FedEx

Posted on Feb 22, 2010

By Chris Hedges

Dean Henderson’s career with FedEx ended abruptly when a reckless driver plowed into his company truck and mangled his leg. His doctor will decide this week if it needs to be amputated. No longer able to drive, stripped of value in our commodity culture, he was tossed aside by the company. He became human refuse. He spends most of his days, because of the swelling and the pain, with his leg raised on a recliner in the tiny apartment in Fairfax, Va., he shares with his stepsister. He struggles without an income and medical insurance, and he fears his future.

Henderson is not alone. Workers in our corporate state earn little when they work—Henderson made $18 an hour—and they are abandoned when they can no longer contribute to corporate profits. It is the ethic of the free market. It is the cost of unfettered capitalism. And it is plunging tens of millions of discarded workers into a collective misery and rage that is beginning to manifest itself in a dangerous right-wing backlash.

“This happened while I was wearing their uniform and driving one of their company vehicles,” Henderson, a 40-year-old military veteran, told me. “My foot is destroyed. I have a fused ankle. I have had over a dozen surgeries. It hurts to wear a sock. I was limping pretty badly, but in the spring of 2008 FedEx said I had to come back to work and sit in a chair. It saved them money on workers’ compensation payments. I worked a call center job and answered telephones. I did that for three months. I had my ankle fused in January 2009, and then FedEx fired me. I was discarded. They washed their hands of me and none of this was my fault.”

Our destitute working class is beginning to grasp that Barack Obama and other elected officials in Washington, who speak in a cloying feel-your-pain language, are liars. They are not attempting to prevent wages from sinking, unemployment from mounting, foreclosures from ripping apart communities, banks from looting the U.S. Treasury or jobs from being exported. The gap between our stark reality and the happy illusions peddled by smarmy television news personalities and fatuous academic and financial experts, as well as oily bureaucrats and politicians, is becoming too wide to ignore. Those cast aside are reaching out to anyone, no matter how buffoonish or ignorant, who promises that the parasites and courtiers who serve the corporate state will disappear. Right-wing rage is being fused with right-wing populism. And once this takes hold, a protofascism will sweep across our blighted landscape fueled by a mounting personal and economic despair. Take a look at Sinclair Lewis’ “It Can’t Happen Here.” It is a good window into what awaits us.

“One thing that is very likely to happen is that the gains made in the past forty years by black and brown Americans, and by homosexuals, will be wiped out,” the philosopher Richard Rorty warns in his book “Achieving Our Country.” “Jocular contempt for women will come back into fashion. The words ‘nigger’ and ‘kike’ will once again be heard in the workplace. All the sadism which the academic Left has tried to make unacceptable to its students will come flooding back. All the resentment which badly educated Americans feel about having their manners dictated to them by college graduates will find an outlet.”

Whoever rides to power on the back of this rage will swiftly broker a deal with corporations and corporate overlords. But by then it will be too late. Dissent will become a form of treason. The security state will be quickly cemented in place. The bankrupt liberal class, which abandoned the working class and the fight for basic civil liberties, will be reviled, discredited and impotent. America will develop its own peculiar form of Christian fascism.

Obama, entranced with power and prestige, is more interested in courting the elite than saving the disenfranchised. The president, when asked to name a business executive he admires, cited Frederick Smith of FedEx, although Smith is a union-busting Republican. Smith, who was a member of Yale’s secret Skull & Bones Society along with George W. Bush, served as John McCain’s finance chair. I guess Obama is hoping for some cash. And Smith has a lot of it. He founded FedEx in 1971, and the company had more than $35 billion in revenue in the fiscal year that ended in May. Smith is rich and powerful, but there is no ethical system, religious or secular, that would hold him up as a man worthy of emulation. Those who make vast profits at the expense of workers and the common good are not moral. They are not worthy of adulation. They build fortunes and little monuments to themselves off the pain and suffering of people like Henderson. Jesus called them “vipers.”

“He’s an example of somebody who is thinking long term,” the president said of Smith in an interview with Bloomberg BusinessWeek, adding that he “really enjoyed talking” with him at a Feb. 4 White House luncheon.

Smith does think in the long term. His company lavished money on members of Congress in 1996 so they would vote for an ad hoc change in the law banning the Teamsters Union from organizing workers at Federal Express. A few stalwarts in the Senate, including Edward Kennedy (in a speech reprinted in the Congressional Record on Oct. 1, 1996) and his then-colleague Paul Simon, denounced the obvious. The company had bought its legislative exemption. Most members of Congress, then as now, had become corporate employees.

“I think we have to honestly ask ourselves, why is Federal Express being given preferential treatment in this body now?” Sen. Simon said at the time. “I think the honest answer is Federal Express has been very generous in their campaign contributions.”

Following the Senate vote, a company spokesman was quoted as saying, “We played political hardball, and we won.”

What happened to our historical memory? How did we forget that those who built our democracy and protected American workers were not men like Smith, who use power and money to further the parochial and selfish interests of the elite, but the legions of embattled strikers in the coal fields, on factory floors and in steel mills that gave us unions, decent wages and the 40-hour workweek. How was it possible in 1947 to pass the Taft-Hartley Labor Act, which, in one deft move, emasculated the labor movement? How is it possible that it remains in force? Union workers, who at times paid with their lives, halted the country’s enslavement to the rich and the greedy. And now that unions have been broken, rapacious corporations like FedEx and toadies in Congress and the White House are turning workers into serfs.

UPS is unionized. It is the largest employer of the Teamsters. Labor costs, because of the union, account for almost two-thirds of its operating expenses. But Smith spends only a third of his costs on labor. There is something very wrong with a country that leaves a worker like Henderson sitting most of the day in a tiny apartment in excruciating pain and fighting off depression while his billionaire former boss is feted as a man of vision and invited to lunch at the White House. A country that stops taking care of its own, that loses the capacity for empathy and compassion, that crumples up human beings and throws them away when it is done with them, feeds dark ideological monsters that inevitably rise to devour the body politic.

FedEx is busy making sure Congress keeps unions out of its shops. It has lavished $17 million, double its 2008 total, on Congress to fight off an effort by UPS and the Teamsters to revoke Smith’s tailor-made ban on unions. Smith, again thinking “long term,” plans to continue to hire thousands of full-time employees and list them as independent contractors. If his workers are listed as independent contractors he does not have to pay Social Security, Medicare and unemployment insurance taxes. And when they get sick or injured or old he can push them onto the street. Henderson says FedEx treats its equipment as shabbily as its employees. There’s no difference between trucks and people to corporations that view everything as a commodity. Corporations exploit human beings and equipment and natural resources until exhaustion or collapse. They are cannibals.

“The trucks are a liability,” Henderson said. “They are junk. The tires are bald. The engines cut out. There are a lot of mechanical problems. The roofs leak. They wobble and pull to one side or the other. The heating does not work. And the company pushes its employees in the same way. The first Christmas I was there I worked 13 hours without a break and without anything to eat. It is dangerous. I could have fallen asleep at the wheel and injured someone.”

If you have to send packages do not be a scab. Send it with UPS or the U.S. Postal Service. They have unions. Every step, however tiny, we take to thwart the corporate rape of the country and protect workers counts. We would have to do more, much more, but this would be a small start. Like Smith, our politicians have sold their souls. They will not help us. We must help ourselves. And the longer we stand by and permit the Democrats and the Republicans to strip American workers of their jobs and their dignity the less we will have to say when the day of angry retribution arrives.

Link to original post:
http://www.truthdig.com/report/item/boycott_fedex_20100222/