Tag Archives: Bailouts

The Top Five Corporate Tax Cheats

Before pushing grandma down the stairs by ‘reforming’ her Medicare and Social Security benefits out of existence, why not go after these god-awful drains on our treasury? Here are five examples of profitable corporations that pay no or low federal income taxes, yet extract much of their profit margin from the American economy. It’s past time for them to pay, as a percentage of their income, at least as much as the average public school teacher or firefighter in Wisconsin.

Want to balance the budget? Start here:

1. General Electric has made over $26 billion in profits in the past five years, with $5 billion from the US market just last year, on which it paid zero federal income taxes. It’s also received a hefty $4.1 billion refund from the IRS. Despite this generosity on the part of the American taxpayer, over the last nine years GE has shipped one-fifth of its jobs overseas and used every trick available to avoid paying US taxes. This is bringing good things to life? (BTW, Jack Welch, former CEO of GE, is sometimes called the father of modern outsourcing.)

2. ExxonMobil. This oil giant paid no federal income taxes in 2009 on $19 billion in profit, and even received a tidy $156 million rebate from the IRS. How do you get a tax rebate when you haven’t paid any taxes? On what planet does this make any sense?

3. Goldman Sachs paid only 1.1 percent in taxes on a profit of $2.9 billion in 2008, on top of the $800 billion provided by US taxpayers to save them from extinction. Time for another bonus, boys?

4. Citigroup ‘earned’ more than $4 billion in profits last year, yet paid no federal income taxes. Incidentally, like Goldman Sachs, they’re only in business thanks to a generous bailout from the US taxpayer; for Citigroup, that came to a neat $2.5 trillion. Despite this, Citibank continues to raise its fees and specialize in providing poor service to its customers.

5. Bank of America racked up $4.4 billion in profits last year, and received a $1.9 billion refund from the IRS. Since US taxpayers saved BoA from extinction with a $1 trillion bailout, why are they getting a $1.9 billion refund? I’m tired of asking on what planet this makes any sense.

And this is only the tip of our economic Titanic’s iceberg. If we’re going to have any future that doesn’t include our citizens rooting through dumpsters for dinner, these profitable corporations, et al, and the wealthy people who run them, are going to have to pay their fair share in taxes. For some reason, Paul Ryan forgot to include this in his hilarious Republican ‘budget.’

(Figures adapted in part from Sen. Bernie Sanders’ “Guide to Corporate Freeloaders.”)

© 2011 RS Janes. LTSaloon.org.

The Tattlesnake – Clueless Wall Street Indulges in the Self-Delusion of the Wealthy Edition

… and it’s nothing new.

As 2011 settles in, some things haven’t changed, such as the investment bank aristocracy of Wall Street, already wallowing in obscenely large salaries, apparently believing they deserve bonuses for continuing to peddle worthless paper and hoodwinking their own customers. This addled belief, however, is nothing new.

Having misspent a part of my youth as an advertising director for a publishing company, I once had an opportunity to encounter some wealthy people at business lunches and dinners, and noticed a few habits of hypocritical thinking they had in common:

— To a man — and they were all men — they believed, even the silver-spoon-born trust fund scions and coddled bosses sons, that they were ‘self-made’ and everything they had was attained by their own hard work, even if their wealth was derived mostly from dividend income, the result of a long-dead relative picking the right investments or starting a successful business.

— Speaking of hard work, when these VIPs came in at 10:am to check the mail and sign a few letters, left for a two-hour lunch at 12:30, and then went golfing for the rest of the afternoon, leaving their overworked and underpaid secretaries to run the place, they would still insist that they had ‘worked hard’ that day.

— Whatever their educational institution, Yale or Harvard or a state university, they all thought they graduated because they ‘studied hard’ and ‘put their noses to the grindstone’ even though some would laughingly brag, after a few too many martinis, about how they had hired poor ‘scholarship brainiacs’ or ‘eggheads’ to teach them how to cheat on their tests.

— While every one of them abhorred any publicly-funded program that enabled poor kids to get a higher education, and especially affirmative action, they were blind to their own advantages, beyond just being born white. If Uncle Joe picked up the phone to make sure they got into the ‘right’ college, or Daddy was once a student and fast-tracked their ‘legacy’ acceptance into a university, that was fine — just the way the world worked. Of course, left unsaid was how they would have been able to make their way through college if such financially-strapped ‘scholarship brainiacs’ were not there to help them cheat, just one of many mental cul-de-sacs that these sons of privilege passed by quickly, lest they get hung on their own conundrum.

— Although all of them supported the war in Vietnam, none of them came close to serving in it. They either received school draft deferments like Dick Cheney; or, like Rush Limbaugh, had a note from the family doctor describing some dread condition that made them militarily unfit, but somehow didn’t interfere with their golf game; or had a family-friend Congressman intervene to keep them out; or, like Junior Bush, had Daddy pull a few strings to get them easy ‘Weekend Warrior’ duty in the National Guard. Privately, they had little regard or compassion for the troops in the field; in fact, they believed them stupid and that the grunts should show gratitude for the opportunity that military service provided to raise their lowly selves out of the ghetto or trailer park. Should they die or be maimed for life during this process of elevation – well, that’s just the price they pay for not having the foresight to be born in better circumstances.

— They all hated paying taxes, the hatred much more intense than that of those lower on the income ladder. Like Leona Helmsley, they thought taxes were fine — for the ‘little people.’ A couple of them were said to spend more money on lawyers and accountants to avoid paying taxes than the amount they owed in taxes. But they didn’t mind one bit freeloading off poorer folks by using roads, highways, airports, parks, and other public facilities paid for by the taxes of the non-rich; and they took it for granted their class would receive preferential treatment from cops and firefighters they didn’t want to pay taxes to support. I won’t even get into the courts, prosecutors, and military all arrayed to protect their precious property that they also didn’t want to pay for — suffice it to say that they didn’t believe in any taxes for themselves, even for those things that benefited them greatly. It would be a mistake to take this as any sort of reasonable consideration on the subject of taxes; it is not – it’s a nearly-hysterical emotional reaction born of mindless greed.

That’s all I can recall at the moment, but the one thread running through all of it is the massive degree of self-delusion practiced by those with wealth. It’s scary enough when they know they’re lying to make a buck; it’s pathologically dangerous when they buy into their own fantasies about themselves as have, it seems, the current crop of Wall Street scoundrels. In this particular case, it won’t end until Richie Rich, ensconced in an office at Goldman Sachs, dreaming up the next fraudulent financial instrument for his firm to foist on the gullible public, hits bottom – an inevitability since they refuse to learn from their mistakes — and seeks another ‘loan’ from the contemptible ‘little people’ taxpayers via the federal Big Daddy and, to mix metaphors, the cupboard is bare.

Then these Masters of the Universe will learn the tough lesson the cosseted Junior Bush as president had to endure: there are times when even Big Daddy can’t save you from the hard consequences of acting like a spoiled brat.

© 2011 RS Janes. LTSaloon.org.