Next Big One: Repatriation Tax Holiday Giveaway To Corporations

Here comes the next big one. Now that the corporations have fast-track trade authority in the bag, they are trying to push a huge, huge tax giveaway through Congress. We have to get the word out so this doesn’t just sneak through. We can’t let them continue to rig the system against us like this.

Up To $770 Billion Is Owed On $2.2 Trillion In Corporate Profits Stashed In Tax Havens

You might have heard about all that money the giant corporations have been stashing in tax havens so they can dodge paying their taxes. You might not have heard how much they owe us. Corporations have somewhere around $2.2 billion of “offshore” profits stashed in tax havens. They owe up to 35 percent in taxes on that money. That’s right; they owe up to $770 billion that We the People could have right now for our roads, schools, health care, scientific research, space exploration, to forgive student debt … we could have free college tuition, expand Social Security, high-speed rail across the country…. Instead, we’re told we can’t have these things because there are “budget deficits.”

And on top of that, at least another $50 billion per year of tax money is kept from us because of this scam.

Congress could just tell these corporations to pay up, and We the People would have up to $770 billion to use to make our lives better, and another $50 billion or more each year.

See if you can guess what Congress is getting ready to do instead?

Tax Holiday

Right now the giant, multinational corporations owe up to $770 billion in taxes on the $2.2 trillion they are holding outside the country in tax-haven mailbox subsidiaries. Right now. They have the cash in the bank (in tax-haven countries) and could write checks tomorrow if Congress told them to. Again, this is taxes they already owe but haven’t paid. Think of the things our country could do with that money.

But instead …

Congress is proposing to give these companies a tax holiday and let them off from paying the taxes they already owe on that money. There is all kinds of complicated language being used to mask what is happening, but it’s really simple: Some members of Congress are proposing letting them off from the taxes they already owe on “offshore” profits, and then letting them off from paying taxes on future profits made “outside the country” from now on.

For example, the Charles Schumer-Rob Portman bill in the Senate will tax this money (on which 35 percent is already owed), “at a rate significantly lower than the statutory corporate rate.” And then it will cut tax rates on future “offshore” profits forever.

Quick question: For years these companies have been moving jobs, production and profit centers out of the country to take advantage of this tax dodge. If they are rewarded for this with this huge tax cut, how many more companies will move jobs, production and profit centers out of the country from now on? Bonus question: Will there be any jobs, production or profit centers left inside the U.S. if Congress lets companies off the hook from taxes on profits made from moving jobs, production and profits centers out of the country?

Don’t Let this Sneak Past Us

The corporations and billionaires count on these things sneaking through under cover of complicated language, so we never find out what is happening to us. Later they tell us “we’re broke” and there is no way to “pay for” things like roads, schools, and other needs. They tell us we have “deficits” that could “bankrupt” us, so college tuition has to go up, we have to pay to use toll roads, they have to cut funding for schools, we can’t have high-speed rail, they can’t afford to do scientific research or space exploration or fight global warming or fix up national parks, and so on.

But what is really going on is the game is being rigged. Corporations get huge tax breaks and subsidies, a few billionaires and plutocrats get the cash, and We the People, the 99 percent, have to make up the difference.

We need to get the word out about this. This is the next big one they are trying to slip through before we know what is happening to us.

We have to fight this. We have to make noise. Even if we don’t win this, at least we will know what happened this time. Then, later, when they come back and say there’s no money to do things that make our lives better, we will be able to see through the smokescreen. We will know where the money went, and eventually enough people will understand how the game is being rigged – and stop it.

Congress should tell the giant, multinational corporations that it is time to pay the taxes the already owe on “offshore” profits. They should not reward companies for moving jobs, production and profit centers out of our country.

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

Help Save Our Public Postal Service

The Grand Alliance to Save Our Public Postal Service is calling for support of two House resolutions that urge restoration of overnight mail service standards and a continuation of six-day delivery.

The alliance consists of more than 70 national organizations. The coalition is asking people to contact members of Congress in support of House Resolutions 54 and 12. H. Res. 54, from Reps. David McKinley (R-W.Va) and Paul Tonko (D-N.Y.), expresses the sense of the House of Representatives that the U.S. Postal Service “should take all appropriate measures to restore service standards in effect as of July 1, 2012.” H. Res. 12, from Reps. Sam Graves (R-MO) and Gerry Connolly (D-VA), says that the USPS “should take all appropriate measures to ensure the continuation of its six-day mail delivery service.”

These resolutions are in response to a new attempt to manufacture a crisis in postal delivery.

How To Manufacture An Anti-Government “Crisis”

If you can manufacture the idea that there is a crisis going on, it makes it easier to get people to go along with the “solutions” you want to push. (See: Doctrine, Shock, disaster capitalism.)

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Enormous, Humongous May Trade Deficit Slows Economy

The U.S. Census Bureau reported Tuesday that the May goods and services trade deficit was an enormous, humongous $40.9 billion, up a bit from an enormous, humongous $40.7 billion in April.

Our enormous, humongous trade deficit is a measure of how many jobs, factories, companies and industries we are losing to our pro-Wall Street trade policies. A trade deficit drains our economy of wealth, jobs and future economic opportunity.

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Was Greece Lured Into “Strategic Deficits”?

The job of a lender is to evaluate risk and price a loan accordingly. If there is risk you charge a higher interest rate. That way you still make money on a broad portfolio of loans even when there are a few defaults.

That’s the job of a banker, supposedly. It’s what they are supposed to be good at. If they are bad at their job, give loans to deadbeats (or countries that can’t pay you back) you lose money, and probably shouldn’t in the business of being a lender.

The lender is supposed to evaluate the risk and say no if the borrower is irresponsible, not complain later about the borrower being irresponsible.

Unless their job is to get the borrower in over their head so you can get stuff. As in “Confessions of an Economic Hit Man.” In that case you try to get governments to borrow, you even bribe the leaders of governments to borrow like crazy so you can later control whoever is then in charge. From “Confessions of an Economic Hit Man“:

We are an elite group of men and women who utilize international financial organizations to foment conditions that make other nations subservient to the corporatocracy running our biggest corporations, our government, and our banks. Like our counterparts in the Mafia, EHMs provide favors. These take the form of loans to develop infrastructure – electric generating plants, highways, ports, airports, or industrial parks.

… Despite the fact that the money is returned almost immediately to corporations that are members of the corporatocracy (the creditor), the recipient country is required to pay it all back, principal plus interest. If an EHM is completely successful, the loans are so large that the debtor is forced to default on its payments after a few years. When this happens, then like the Mafia we demand our pound of flesh.

Former president Ronald Reagan, for example, said he was trying to run up the borrowing in order to force the government to cut back on things it does to make our lives better. He cut taxes, increased military spending, a strategy called “strategic deficits.” (Google that.)

Later we had budget surpluses under Clinton. Then Federal Reserve chairman Alan Greenspan complained that the government was paying off the debt too fast. Then “W” Bush cut taxes and doubled military spending and said it was “incredibly positive news” (Google that, too) that the government was going back into deficits because it would force spending cuts.

Strategic deficits. Done on purpose. Are Greece’s lenders bad at their job? Or are they good at a different job?

Atrios earlier:

“You lend money at a risk premium. Borrowers pay that risk premium for a reason. That reason is that they might stop being able to pay. Then you eat the loan.

… The banksters are supposed to be genius financial intermediaries, properly pricing risk and making loans accordingly. It seems that they aren’t very good at their jobs? I suppose it depends on whether that really is their job.”

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

In Tax Battles, “Competitiveness” Means Coercion

Watch out for this one. With fast track trade authority done, the big corporations are now pushing for massive tax giveaways. This is another exercise of raw corporate power by the few to take what they want from the many. The corporations use complexity to get people to tune out, and their schemes are masked by smooth words like “reform” and “competitiveness,” but it is all just another grab for (even more) money and power.

There are two areas where the corporations are coming at us. The first is a blatant grab to keep somewhere up to $700 billion in tax money they already owe on “offshore” profits. The second is a push to permanently cut corporate tax rates – even more.

Taxes Owed On Offshore Profits

Multinational corporations avoid paying U.S. taxes using a “deferral” loophole. This loophole lets them dodge taxes on profits made outside of the country until they bring the profits back into the country (called “repatriation”).

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Wall Street And Big Corporations Got What They Wanted – This Time

Fast track passes. Our Congress – the supposed representatives of We the People – voted to cut themselves and us out of the process of deciding what “the rules” for doing business “in the 21st Century” will be.

How do the plutocrats and oligarchs and their giant multinational corporations get what they want when a pesky democracy is in their way? They push that pesky democracy out of their way.

Because of fast track, when the secret Trans-Pacific Partnership (TPP) and any other secretly negotiated “trade” agreements are completed Congress must vote in a hurry with only limited debate, cannot make any amendments no matter what is in the agreement, and they can’t be filibustered. Nothing else coming before our Congress gets that kind of skid-greasing, only corporate-written “trade” agreements – and it doesn’t matter how far the contents go beyond actual “trade.”

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Will TPP Kill The Post Office?

Corporations are notorious for sneaking things into laws and regulations before the public can find out and rally to stop it. And we know from the conservative Supreme Court arguments against the Affordable Care Act that even what amounts to a typo can be used to change the obvious meaning and intent of a law.

These are reasons we need to see the text of the Trans-Pacific Partnership before Congress votes to preapprove it with fast track trade promotion authority (TPA). They are pushing what is literally a pig in a poke on us. We the People need to open that bag and have a good, long look inside before fast track buys the TPP pig in our name.

Negotiated in secret by corporate representatives, it is probable that the Trans-Pacific Partnership (TPP) is loaded with things the big corporations have snuck in. We already know from leaks that TPP contains provisions allowing companies to sue our government in “corporate courts” if they feel a law or regulation is cutting into their profits. What else is in there?

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All Hands On Deck: House Fast Track Vote Could Come This Week

ALL HANDS ON DECK. This is not a drill. The vote in the House of Representatives on fast track trade authority, preapproving the Trans-Pacific Partnership (TPP) before the public finds out what is in it, is coming up very soon. It is even possible it could happen later this week. The Senate has already passed fast track; if the House passes this it goes to President Obama and he will sign it. That will make TPP a done deal.

Fast track is a weird procedure, invented by President Richard Nixon, whereby Congress sets aside the normal procedures for considering, debating and voting on a bill – but only for so-called “trade” agreements. Under fast track Congress agrees to rush the agreement through with little debate, agrees not to make any amendments, and not to filibuster it. (How else could they get approval for deals that allow companies to ship jobs and factories out of the country to places where workers and the environment are not protected?)

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Obama’s Anti-Populist Attack On Warren On Trade

As the Senate begins consideration today of the “fast track” trade promotion authority for the Trans-Pacific Partnership, President Obama says that Sen. Elizabeth Warren is expressing concerns because she is “a politician.”

The president’s statement demeaning what Warren (D-Mass.) is saying as just what politicians say makes it seem that he thinks that listening to constituents and doing that they want (a.k.a. “representative democracy”) is a bad thing. But Warren and almost every other Democrat have come to understand that trade agreements that send American jobs out of the country – and the fast track process that is used to push them through – have become core issues that could trigger severe public reaction. This Fast Track vote is politically the third-rail equivalent of the 2002 vote to authorize Bush to invade Iraq.

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Death To Pensions – Video

From AFSCME:

ENRON BILLIONAIRE ARNOLD HAS A PROBLEM WITH LIBRARIANS’ PENSIONS
Former Enron trader and hedge fund billionaire John Arnold is launching a multimillion dollar national PR campaign attacking the hard-earned pensions of public sector workers. Arnold has already quietly poured tens of millions of dollars into his efforts to persuade politicians to reduce middle class retirement security and now it looks like he may really just be getting started.

How TPP Increases Corporate Power vs. Government – And Us

Power is the ability to control, to tell what to do, to get your way. Corporations have a lot of power over working people in our country now, and they might be about to get a lot more.

The proponents of the Trans-Pacific Partnership (TPP) tell us that it will have unprecedented “progressive” protections for the rights of working people, the environment, even wildlife. So there is likely to be flowery-sounding language in TPP, just as President Obama says.

What matters is whether there will be clear and guaranteed enforceability of those words.

Enforcement Matters

Rules are great; enforcement is greater. Without enforcement, a rule may as well not exist – especially when everyone knows there is not enforcement.

We see rules with no enforcement all around us. Here’s an obvious example. Right now several obvious presidential candidates say they aren’t candidates so they can get around rules about contribution limits to their campaigns and coordination with super PACs. The Federal Election Commission is not enforcing the rules that say candidates can’t do this. These candidates know there is no enforcement and thus continue to violate the rules.

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