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How does a US corporation pay a 2 percent negative tax rate? It gets a rebate on taxes it never ever paid. So, if Boeing (in this case) made $100 billion from 2008-2013, it paid zero in federal taxes, and received $2 billion from the taxpayers in the form of a check or checks given to the company by the Federal government. Quite naturally, the disbursement of much of that money goes to the shareholders of Boeing, members of the 1 percent. And so that $2 billion represents a massive redistribution of income from taxpayers (the 99 percent) to the 1 percent. Nice scam huh?

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When corporations pay no taxes, the result is a redistribution of income from the 99 to the 1 percent. When corporations do not pay taxes, the money from those taxes that should have gone to schools, roads, infrastructure maintenance, fire, police and more, are instead diverted to the 1 percent via higher corporate profits, surging share prices and dividends.

Furthermore, most of these major corporations have engaged in scams to overcharge the 99 percent, such as Bank of America and Citigroup in the LIBOR scandal conspiring with other banks to overcharge consumers on interest rates for loans, such as credit cards and auto. The money from that scandal went into the pockets of the 1 percent and came out of the pockets of the 99 percent.

While some corporations do not pay any taxes, many others wind up receiving tax rebates on taxes they never paid (such as Verizon), another redistribution of income from the tax revenues of the 99 percent to the pockets of the 1 percent.

Many of these corporations are stealing record profits, holding down the pay of their 99 percent employees, and shipping jobs overseas. That’s precisely why the economy is legislatively rigged in favor of the one percent, and that shows how corrupt to the core the US government has become over the last thirty years.

So here’s a list of 10 tax-dodging corporations excerpted from the Americans for Tax Fairness report.

Bank of America logo Bank of America runs its business through more than 300 offshore tax-haven subsidiaries. It reported $17.2 billion in accumulated offshore profits in 2012. It would owe $4.3 billion in US taxes if these funds were brought back to the US.
Citi logo Citigroup had $42.6 billion in foreign profits parked offshore in 2012 on which it paid no US taxes. It reported that it would owe $11.5 billion if it brings these funds back to the US. A significant chunk is being held in tax-haven countries.
ExxonMobil had a three-year federal income tax rate of just 15 percent. This gave the company a tax subsidy worth $6.2 billion from 2010-2012. It had $43 billion in offshore profits at the end of 2012, on which it paid no US taxes.
Fedex logo FedEx made $6 billion over the last three years and didn’t pay a dime in federal income taxes, in part because the tax code subsidized its purchase of new planes. This gave FedEx a huge tax subsidy worth $2.1 billion.
GE Logo General Electric received a tax subsidy of nearly $29 billion over the last 11 years. While dodging paying its fair share of federal income taxes, GE pocketed $21.8 billion in taxpayer-funded contracts from Uncle Sam between 2006 and 2012.
Honeywell logo Honeywell had profits of $5 billion from 2009 to 2012. Yet it paid only $50 million in federal income taxes for the period. Its tax rate was just 1 percent over the last four years. This gave it a huge tax subsidy worth $1.7 billion.
Merck logo Merck had profits of $13.6 billion and paid $2.5 billion in federal income taxes from 2009 to 2012. While dodging its fair share of federal income taxes, it pocketed $8.7 billion in taxpayer-funded contracts from Uncle Sam between 2006 and 2012.
Microsoft logo Microsoft saved $4.5 billion in federal income taxes from 2009 to 2011 by transferring profits to a subsidiary in the tax haven of Puerto Rico. It had $60.8 billion in profits stashed offshore in 2012 on which it paid no US taxes.
Pfizer logo Pfizer paid no US income taxes from 2010 to 2012 while earning $43 billion worldwide. It did this in part by performing accounting acrobatics to shift its US profits offshore. It received $2.2 billion in federal tax refunds.
Verizon logo Verizon made $19.3 billion in US pretax profits from 2008 to 2012, yet didn’t pay any federal income taxes during the period. Instead, it got $535 million in tax rebates. Verizon’s effective federal income tax rate was negative 2.8 percent from 2008 to 2012.

rate Tax Dodgers You Should Know About

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What Has Happened to American Citizens?

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The Great American Class War: Plutocracy Versus Democracy (via Moyers & Company)

This is an edited version of a speech Bill Moyers recently delivered at the Brennan Center for Justice. It was first published at TomDispatch.

That was long before the era of cyberspace and the maximum surveillance state that grows topsy-turvy with every administration. How I wish he were here now — and still on the Court!

I tracked Keyishian down and interviewed him. Justice Brennan watched that program and was fascinated to see the actual person behind the name on his decision. The journalist Nat Hentoff, who followed Brennan’s work closely, wrote, “He may have seen hardly any of the litigants before him, but he searched for a sense of them in the cases that reached him.” Watching the interview with Keyishian, he said, “It was the first time I had seen him. Until then, I had no idea that he and the other teachers would have lost everything if the case had gone the other way.”

Toward the end of his tenure, when he was writing an increasing number of dissents on the Rehnquist Court, Brennan was asked if he was getting discouraged. He smiled and said, “Look, pal, we’ve always known — the Framers knew — that liberty is a fragile thing. You can’t give up.” And he didn’t.

The Donor Class and Streams of Dark Money

The historian Plutarch warned us long ago of what happens when there is no brake on the power of great wealth to subvert the electorate. “The abuse of buying and selling votes,” he wrote of Rome, “crept in and money began to play an important part in determining elections. Later on, this process of corruption spread in the law courts and to the army, and finally, when even the sword became enslaved by the power of gold, the republic was subjected to the rule of emperors.”

We don’t have emperors yet, but we do have the Roberts Court that consistently privileges the donor class.

Writing in the Guardian recently, the social critic George Monbiot commented,

Why are record numbers of Americans on food stamps? Because record numbers of Americans are in poverty. Why are people falling through the cracks? Because there are cracks to fall through. It is simply astonishing that in this rich nation more than 21 million Americans are still in need of full-time work, many of them running out of jobless benefits, while our financial class pockets record profits, spends lavishly on campaigns to secure a political order that serves its own interests and demands that our political class push for further austerity. Meanwhile, roughly 46 million Americans live at or below the poverty line and, with the exception of Romania, no developed country has a higher percent of kids in poverty than we do. Yet a study by scholars at Northwestern University and Vanderbilt finds little support among the wealthiest Americans for policy reforms to reduce income inequality.

Class Prerogatives

Listen! That sound you hear is the shredding of the social contract.

We are this close – this close! – to losing our democracy to the mercenary class. So close it’s as if we’re leaning way over the rim of the Grand Canyon waiting for a swift kick in the pants.

When Justice Brennan and I talked privately in his chambers before that interview almost 20 years ago, I asked him how he had come to his liberal sentiments. “It was my neighborhood,” he said. Born to Irish immigrants in 1906, as the harsh indignities of the Gilded Age brought hardship and deprivation to his kinfolk and neighbors, he saw “all kinds of suffering — people had to struggle.” He never forgot those people or their struggles, and he believed it to be our collective responsibility to create a country where they would have a fair chance to a decent life. “If you doubt it,” he said, “read the Preamble [to the Constitution].”

That was the essence of what I told Justice Brennan. Now, I wish that I could talk to him again, because I failed to mention perhaps the most important lesson about democracy I ever learned.

Those women in Marshall, Texas, were among its advance guard. Not bad people, they were regulars at church, their children were my classmates, many of them were active in community affairs and their husbands were pillars of the business and professional class in town. They were respectable and upstanding citizens all, so it took me a while to figure out what had brought on that spasm of reactionary defiance. It came to me one day, much later: they simply couldn’t see beyond their own prerogatives.

Fiercely loyal to their families, to their clubs, charities and congregations — fiercely loyal, in other words, to their own kind — they narrowly defined membership in democracy to include only people like themselves. The black women who washed and ironed their laundry, cooked their families’ meals, cleaned their bathrooms, wiped their children’s bottoms and made their husbands’ beds, these women, too, would grow old and frail, sick and decrepit, lose their husbands and face the ravages of time alone, with nothing to show for their years of labor but the creases on their brows and the knots on their knuckles. There would be nothing for them to live on but the modest return on their toil secured by the collaborative guarantee of a safety net.

The Unfinished Work of America

In one way or another, this is the oldest story in America: the struggle to determine whether “we, the people” is a moral compact embedded in a political contract or merely a charade masquerading as piety and manipulated by the powerful and privileged to sustain their own way of life at the expense of others.

I should make it clear that I don’t harbor any idealized notion of politics and democracy. Remember, I worked for Lyndon Johnson. Nor do I romanticize “the people.” You should read my mail and posts on right-wing websites. I understand the politician in Texas who said of the state legislature, “If you think these guys are bad, you should see their constituents.”

But there is nothing idealized or romantic about the difference between a society whose arrangements roughly serve all its citizens (something otherwise known as social justice) and one whose institutions have been converted into a stupendous fraud. That can be the difference between democracy and plutocracy.

Toward the end of Justice Brennan’s tenure on the Supreme Court, he made a speech that went to the heart of the matter. He said:

“We do not yet have justice, equal and practical, for the poor, for the members of minority groups, for the criminally accused, for the displaced persons of the technological revolution, for alienated youth, for the urban masses… Ugly inequities continue to mar the face of the nation. We are surely nearer the beginning than the end of the struggle.”

(more…)

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Congress and the presidents over the decades have granted legislation that grant the super rich parasites of the 1 percent (the top 0.001 percent) enough tax loopholes to avoid paying taxes of about $100 billion a year. These loopholes aren’t accidents. They’re the deliberate tricks used by Wall Street legislators, such as Wall Street Sentor Ron Wyden, to receive more and more campaign contributions, and nice perks, such as jobs after they’re out of office, and millions of dollars of speaking fees. Some of these people are likely receiving payments for legislative services under the table while in office. Corruption is rampant in Washington D.C.

Check out the story below.

accidental-tax-break-saves-wealthiest-americans-100-billion–Bloomberg News

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History shows that tax cuts for the rich destroy jobs in any number of ways. Tax cuts are used by the 1 percent to put pressure on CEO’s to cut jobs in order to raise profits. They also buy politicians, who then enact legislation on behalf of their financial benefactors to destroy jobs through corporate freely trading your income to the 1 percent treaties, as well as a myriad of other scams.

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The US Tax Burden: Then Vs Now

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