What’s up with that? Yesterday I filed my 2010 income tax and paid about 14% of my gross income to Uncle Sam. General Electric, whose earnings were slightly higher than mine, got a $3.2 billion tax benefit. Yes, their rate was -25%. Corporations don’t you love them? Well, the Right-wing loves them and will defend their tactics to their death! GE reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States. Yet they claimed a $3.2 billion benefit FROM the Treasury, not TO the Treasury, The New York Times reported.
Here I am, retired with no salary increase, paying taxes to the Treasury while GE reaches into the Treasury to take money- perhaps mine!
Right-wingers mindlessly [or is that mind-controlled by AM radio] carp and moan, saying that current corporate tax level is so high it hobbles corporations in competing with foreign rivals. Even as the government faces a mounting budget deficit, the right-wing and GOP in general in Washington promise lower rates. There was a prime example of this fact yesterday on this blog when a right-winger carped about ‘those high rates causing corporations to move out of the U.S.’ Of course, nothing could be further from the truth. The Times said,
Such strategies, as well as changes in tax laws that encouraged some businesses and professionals to file as individuals, have pushed down the corporate share of the nation’s tax receipts — from 30 percent of all federal revenue in the mid-1950s to 6.6 percent in 2009.
The problem with such right-wingers is that they seldom think for themselves; rather, they participate in a giant echo chamber. Here’s the truth, backed up by actual data:
Boeing paid a total tax rate of just 4.5 percent. Southwest Airlines paid 6.3 percent. Yahoo paid 7 percent; Prudential Financial, 7.6 percent. These companies paid less than 2 percent: NextEra, Xcel, Carnival and Range Resources.
“That G.E. can almost set its own tax rate shows how very much we need reform,” said Representative Lloyd Doggett, Democrat of Texas, who has proposed closing many corporate tax shelters. “Our tax system should encourage job creation and investment in America and end these tax incentives for exporting jobs and dodging responsibility for the cost of securing our country.”
Yet, the right-wing echo chambers spew the nonsense that is easily absorbed by those who don’t want to know the truth.
Meanwhile in Congress, the morons there are playing the ‘close down the government’ game. And, after that, they will begin a new game to balance the budget without patching the major, Treasury-draining leak: the open pipeline between the Treasury and the Pentagon.
The Military-Industrial Complex and the greedy Corporations skate while you and I tighten our belts and eat lower on the hog.