Proof of Washington's Corruption - "Stimulating" Past Evidence!

While most average Americans go through life thinking there are two things for certain, death and taxes, big corporate players know that nothing could be further from the truth. Study's show that virtually all large corporations pay zero income tax. In fact, despite huge annual profits, most actually receive huge federal rebate checks and tax credits equaling $billions! Many of these companies are also atop the list of major federal contractors receiving $billions in government contracts every year. America,Inc. is currently in full force. Through subsidies, accelerated depreciation and stock option laws, tax credits, offshore tax shelters and who knows what else. Mega corporations pay an income tax rate, supposed statutory 35%, that is effectively as low as -30% and never higher than 25% or so. This is yet another sickening example of the pay to play fraud that is created when you mix greedy corporate lobbyists with corrupt politicians.

The most obvious evidence of Washington being corrupt is seen when looking at the data on companies that are related by industry. In a study done in 2004 titled, "Corporate Income Taxes in the Bush Years", data shows that,

• Maytag and Whirlpool both make appliances, In the 2001-03 period, Whirlpool paid 31.2% of its profits in corporate income tax, while Maytag paid only 8.9%.
  
  
• Merck and Pfizer are both pharmaceutical companies. In the 2001-03 period, Merck paid
  an effective U.S. tax rate of 32.5%, while Pfizer paid only 8.2%.
  
  
• Among industries, both publishers and oil companies provide sought-after products. But
  publishers paid 23% of their profits in taxes during the 2001-03 period, while oil companies paid only 13.3%.
  

www.ctj.org...

You can plainly see that Maytag, Pfizer, as well as the entire oil industry have gained favor over their respective competition. This can only be attributed to corruption and fraud between corporate lobbyists and dirty lawmakers. This is not only unfair, it's very damaging to economic conditions. Basically, companies that play by the rules suffer profit losses, while those that evade the required "stimulus" to our economy see profit increases.

Study says most corporations pay no U.S. income taxes

Most U.S. and foreign corporations doing business in the United States avoid paying any federal income taxes, despite trillions of dollars worth of sales, a government study released on Tuesday said.

The Government Accountability Office said 72 percent of all foreign corporations and about 57 percent of U.S. companies doing business in the United States paid no federal income taxes for at least one year between 1998 and 2005.

The study showed about 28 percent of large foreign corporations, those with more than $250 million in assets, doing business in the United States paid no federal income taxes in 2005 despite $372 billion in gross receipts, the senators said. About 25 percent of the largest U.S. companies paid no federal income taxes in 2005 despite $1.1 trillion in gross sales that year, they said. www.reuters.com...

In the past, corporate income tax accounted for 5%-7% of the US GDP. That percentage, [image below], has declined considerably since and is now closer to 1%, despite huge increases in corporate profits. This amounts to $billions that are made up through tax increases to those of us not sleeping with a politician.


bucknakedpolitics.typepad.com...

This is far from a free market economy! Letting government pick and choose which areas of the "free market" they feel like supporting is not stimulus. Rewarding chosen companies with tax rebates in the $billions on top of their annual profits, while ignoring lawful ones as they dissolve? There is no excuse for this. Propping up entire industries that have evaded tax requirements for years, while they record profits, is shameful and inexcusable. As you can see, Washington's stimulus packages are not a new thing. They have always been doing this in one form or another and probably always will? As long as we let it go on, we are deserving of its consequences.

When congress wants to pass a stimulus bill we must confront it with what they are already doing! When they want us to pay more, we must demand only to do so when these others have caught up! We must demand accountability! Stop letting new discussions happen until old ones are discussed! Start looking around our past when they bring up things that seem new. They have nothing new that they haven't committed against us in the past. It must be found and thrown back in their face!

Peace.


[edit on 3/17/2009 by Zerbst]

reply to post by Zerbst


Add to that the state and local tax breaks they get when they threaten to leave the area. It is also interesting as Whirlpool now owns Maytag, and they also make Kenmore appliances. GE is stopping their appliance line (if they haven't already), so that leaves Whirlpool as the only US made appliance manufacturer.

The politicians have to blame themselves as they allowed banks to start merging with the more risky financial institutions (Paine Webber, etc). The regulations were changed, and they also allowed the banks to get too big to fail.

It used to be many corporations set up offshore headquarters to get out of paying any taxes. When billionaires did the same, the outrage caused some loopholes to be filled.

An excellent post, and I am glad to see someone else using this forum.

It is also interesting that many sports team owners get a lot of freebies from local and state governments. They manage to get a stadium, arena or ballpark built for them with the team keeping full ownership. That was popular for a while, with the teams citing economic gain for the cities they were in.

Others liked the idea of having a sports team, but questioned whether it was worth $600 million to $1 billion to build stadiums for the teams to own. The public was at first for it, then started to change their mind after getting shafted for the bill with tax hikes and nothing to show for it. Why pay for a stadium that will get used by professional teams several times a year?

Los Angeles decided not to spend the money to build the stadium and has no football teams. New Orleans built a new stadium with tax money, and also the state paid the Saints $10 million a year to stay in the state. After Hurricane Katrina, the Saints threatened legal action if the state refused to pay them the money. An agreement was reached after the public started to complain about the wasteful payouts.

The Bears went to Chicago's Mayer Daley for a new stadium as Soldier Field was getting old. Chicago actually owns Soldier Field, and gets the concession stand food and beverage revenues which help pay for the stadiums upkeep. They also lend it out to events when the Bears do not use it and keep the proceeds from rent. Mayor Daley told the Bears that he would do improvements on Soldier Field, but he was not going to build them a stadium. If they wanted a stadium, they were to use their own money. The Bears threatened to move, and even looked at Gary IN, which does not have much money. Mayor Daley told the Bears to not let the door hit them in their @ss on their way out. In the end, the Bears stayed at Soldier Field, which was upgraded.

In the end, most cities now either want to own the stadiums or want a piece of the action for the stadiums to pay for themselves. Some team owners still get sweet deals, but this type of corporate welfare rarely gets reported on.

With half of the baseball players on steriods and half the NFL players convicted felons, I am thinking most owners won't ask for such handouts anymore. Maybe it is time for the fans to take up local high school or community teams and support them. The tickets will cost less, and the money will support the local schools and communities.

reply to post by kidflash2008



I didn't know about the bears, very interesting. I remember when the Patriots pulled that. Another example of regular people having to carry the burdens. It costs a family of four a couple hundred dollars to go to a professional sporting event? To further that with hidden tax burdens for stadiums is criminal!

Hopefully, people will soon see the light? Corporations have pretty well exploited everything. They ruined sports with television. Just look at the TV advertising costs during the Super Bowl. I think things like this are slowly being rejected by the public? They are starting to pay attention to the excess. Understanding that we should be ashamed to have multi-million dollar half shows, while people are homeless and starving?

reply to post by Zerbst


Don't forget to add the multimillion dollar salaries to do something they enjoy to do. Many of them are poor role models, and yet they still get idolized. If they fall from grace, they will get a reality TV show package in the near future. Many of them are doing steroids, and when they get caught blame someone or something else. They do not accept any sort of responsibility, and I guess it is the public's fault for still emulating them to such a high pedestal. Firemen and police officers were heroes all to briefly after 911. When people stop going to the games and stop watching professional (and sometimes the crooked college games), nothing will happen. The corporations will still use the bad boy reputations to sell their products to teenage boys and girls. If people start going to local school and community events, then the professional sports world will take notice.