1% in bed with Washington win again!

Yes, that title is me making fun of the stupid leftists that think these collectivist scumbags and crooks running our government that bought their support and votes with false promises of free shit they would pay for by slamming the evil rich & productive with higher taxes, and these politicians portend to do so to help the little guy, because they where had again. News is that those big corporations team blue paraded to tell us how higher taxes would actually be good for everyone are leaving a huge chunk of their money where the tax man can not get it. From the article:

U.S.-based nonfinancial companies are parking record amounts of cash abroad, thanks largely to a tax code that encourages them to indefinitely keep profits from their foreign subsidiaries outside of the country.

For example, the Jedi master of avoiding U.S. taxation, General Electric Company (NYSE:GE), increased its tax-free cash accumulation to $108 billion, up from an estimated $94 billion in 2010. Microsoft Corporation (Nasdaq:MSFT) increased its stockpile to $61 billion, up 36 percent from 2011 and up from $30 billion in 2010. Apple Inc. (Nasdaq:AAPL) raised its ante to $40 billion, up 73 percent from 2011.

Sixty of the country’s largest nonfinancial corporations kept $166 billion in cash outside of the U.S. last year, shielding more than 40 percent of their profits from taxes, according to a report in Monday’s Wall Street Journal. And that’s from total overseas earnings of $1.3 trillion, up 15 percent from 2011.

Get the fook out of here! Team Blue’s biggest supporters and the very companies that told us higher taxes where good are parking their money elsewhere to avoid paying said taxes? Who would ever have thunk that?

See these bastards knew that kissing donkey ass would give them the cover, even legally, to do this shit, while their competitors and the other people trying to make it rich without paying the bribes the donkeys demand, would end up getting hammered.

A separate analysis of 83 of the largest nonfinancial corporations found that companies increased by $183 billion their foreign-based cash accumulations, representing a 14.4 percent rise from 2011, according to Bloomberg. Microsoft, Apple and Google Inc. (Nasdaq:GOOG) together hold $134.5 billion in cash abroad.

Heh, yet again. I wonder how many of these 83 corporations are huge team blue players and donors? That is not mentioned tells me most of them, if not all, are. And how could they do this? I mean don’t they believe its patriotic to pay taxes like we keep getting told by team blue?

Unintended consequences my ass. This was from the start another team blue effort to hamstring & kneecap their corporate friend’s competition and rivals. And we the people are going to get had because of it. But you collectivists can keep believing the nanny staters are doing this all to help the little guy. Jeff Immelt, and many other such big wigs in team blue’s pockets, are all running to the bank with their nice bonuses, and all they had to do was kiss Obama’s ass and help the donkeys funnel a huge chunk of tax payer funed change to their pockets. The left are the new robber barons of yore they so love to tell us about.

Comments are closed.

  1. Seattle Outcast

    On the other hand, there are reasons other than tax avoidance for these regulations – you’d have a hell of a time getting your company to expand outside of the country otherwise.

    Thumb up 1

  2. Mississippi Yankee

    Is this not one (perhaps the only) definitions of Crony Capitalism?

    Yet I’m the one being accused of being a conspiracy theorist.
    Yeah you open-minded types please continue to disbelieve your own lying eyes.

    Thumb up 1

  3. ilovecress

    Alex – Your first sentence doesn’t make sense. The leftists think that these crooks – what? You misse the end of the sentence.

    Either way, I have to say, Dude, one of the things us ‘stupid leftists’ have been screaming about for ages is the problem of unlimited, secret donations by corporations into the political system. This post could have been written by Rachel maddow at any time in the past 5 years. Yes the corporate class is doing fine and have good profits, and yes they are hiding that money, and no, high corporate profits aren’t helping America, and the best investment you can make is to bribe, sorry, donate to a Politician. Even better if you can do so in secret.

    However, with some digging you can find out some interesting stuff:

    GE spent $3,866,936 in donations – ranking 64th.$332875 was to Romney, $139386 to Obama.

    However, they spent $21 million on lobbying in 2012 alone, with the number one issue being taxes.

    Microsoft donated $814k to Obama and $213k to Romney 9and a cr*ptonne to PACs which you can’t trace – a fair bet they’re democrat ones though) and $8m on lobbying (mainly on taxes)

    Google was about $3m, about 75% to Obama.

    The stats are from here - take with hwever many pinches of salt you like – but its a good site for at least starting to find out what Corporate money is being spent on (spoiler alert, it’s mainly lobbying against taxes)

    Interestingly, Soros fund management donated 28% of their funds to Romney!

    Thumb up 0

  4. AlexInCT *

    Alex – Your first sentence doesn’t make sense. The leftists think that these crooks – what? You misse the end of the sentence.

    Let me give it a try.

    Yes, that title is me making fun of the stupid leftists that think these collectivist scumbags and crooks running our government that bought their support and votes with false promises of free shit they would pay for by slamming the evil rich & productive with higher taxes, and these politicians portend to do so to help the little guy, because they where had again.

    The bold pieces go together. I am making fun of the people that have been had, yet again. The indented piece is the who/why, and that’s the people that constantly fall for the pretenders that claim to fight for the little guy, but really are there to make themselves and their buddies rich with the schemes and scams they implement.

    One of the biggest and most disgusting lies told by the left in the US, at least to me, is that these politicians care about the little people. They don’t do anything of the sort. What the left does is use the little people’s greed, envy, and stupidity. They hand them peanuts and make them dependant on them – big government – to live. Then fleece everyone else for as long as they can get away with it while doing such wicked damage to the little guy that they can never bounce back. I have always laughed at the stupid notion that republicans are the party of the rich. The richest people, and I am talking about people that are obscene fucking rich and feel everyone else is and should stay beneath them, are all democrats. And many of them are political families or donkey politicians to boot.

    Every time I hear some leftists talking about how they want to make the rich pay their fair share I know the plan is really to rig the system to make sure their rich friends stay on top, only the people they vet and approve of get rich (anything green energy and pro lefty companies like GE, Facebook, and Microsoft, if you need some examples), and everyone else gets held down and shown their place.

    I told everyone these taxes would only apply to the people that the politicians didn’t get a good kickback from, and here we have it happening. Only the LSM now isn’t bothered to really hammer these 1%, because then some people might catch on to the schemes and scams. Believing government should be the arbitrer of fairness is like asking hungry wolves to rear baby sheep. It won’t end well. Ever. But the left would prefer this than letting companies they don’t like make evil profits.

    Thumb up 3

  5. CM

    So how many lefties at this place fit Alex’s narrative?
    Any?
    I would guess around zero. It’s certainly a long way from where I sit. For a start, I don’t get jack from my government but I mostly vote centrist. I would never vote for anyone or any party that didn’t believe in high levels of transparency and accountability.

    I certainly object to ‘crony capitalism’. But I don’t see EVERYTHING as crony capitalism. Providing a system of loan guarantees for renewable energy makes sense for a whole lot of reasons, and doesn’t need to have anything to do with ‘crony capitalism’. I’m yet to see evidence of how ‘crony capitalism’ played a part in the loan guarantee system. I’ve certainly asked for evidence, but I’ve not yet receieved any. And I don’t mean just “evidence that CM will accept”. I mean anything that meets the basic standards of EVIDENCE, as opposed to easily-debunked nonsense, or unsupported accusations.

    Overseas tax accumulations are a huge global problem. I totally agree that the whole system is skewed in favour of the rich because they have legal ways of avoiding it. The small business owners don’t. I can’t attest to how reputable it is, but last year a report came out which concluded that between $21 and $32 trillion in global wealth is being hidden away in tax havens.
    http://www.taxjustice.net/cms/upload/pdf/The_Price_of_Offshore_Revisited_Presser_120722.pdf

    If this unreported $21-32 trillion, conservatively estimated, earned a modest rate of return of just 3%, and that income was taxed at just 30%, this would have generated income tax revenues of between $190b and $280b

    That could be handy if we suddenly decided to do something other than treating the planet as if it were an oven.

    Thumb up 0

  6. CM

    U.S. lawmakers are examining changes to international taxation as part of a tax-code rewrite that would have to address the built-up earnings in a transition to a new system.

    Senators Ron Wyden, an Oregon Democrat, and Rob Portman, an Ohio Republican, said last month that they saw room for an international system that would lower the U.S. tax rate, let companies bring home new profits mostly tax-free and limit companies’ ability to move profits out of the U.S.

    http://www.bloomberg.com/news/2013-03-08/offshore-cash-hoard-expands-by-183-billion-at-companies.html
    (that’s your own link Alex)

    Both Republicans and Democrats agree that the 35 per cent corporate tax rate in the US is too high. Yet discussions over the corporate tax fizzled out during the recent fiscal cliff negotiations, partially because of the budgetary maths. Neither party has identified enough revenue increases to offset the $1.2tn cost over 10 years of lowering the corporate tax rate to a more reasonable 25 per cent.

    http://www.ft.com/cms/s/0/299049c0-5e72-11e2-a771-00144feab49a.html#axzz2NICPqQsY

    President Obama has been pleading with House Republican leaders lately to raise government revenues by overhauling the tax code to erase loopholes and other income exemptions.

    It wasn’t an idea he campaigned on last year, though the chairmen of his deficit-reduction commission proposed doing just that in a report he shelved. The commission also wanted to use the higher revenues to offset lowering the tax rates in order to boost economic growth, jobs and investment, which, in turn, would boost tax revenues and reduce the deficits.

    Cutting tax rates doesn’t play well with Democratic voters, though, so Mr. Obama campaigned on raising taxes on the rich, won a second term and then ran into a budget sequestration fight of his own making and a wall of resistance from the Republicans in Congress.

    Since it’s now clear that Mr. Obama isn’t going to get any more tax revenue as long as the GOP controls the House, from where all revenue bills must originate, he is pursuing Plan B: Raise more tax revenues by ending billions of dollars in corporate welfare and other special tax preferences.

    http://www.washingtontimes.com/news/2013/mar/8/obamas-plan-b-raise-revenue-by-closing-tax-loophol/

    Obama last year pitched a corporate tax revamp that included cutting the top corporate tax rate to 28 percent from 35 percent and closing a number of business tax breaks to pay for the cut.

    The notion of trimming the top corporate tax rate is a rare area of agreement between Democrats and Republicans on tax policy, though Republicans want to lower the rate more.

    http://www.reuters.com/article/2013/01/31/us-usa-tax-territorial-idUSBRE90U15J20130131

    Thumb up 0

  7. CM

    Obama: Would lower the top corporate tax rate to 28% and pay for the rate reduction by eliminating “dozens” of business tax breaks.

    The effective tax rate for manufacturers would be capped at 25% and a manufacturing deduction would be increased, but the scope of those eligible to take it would be narrowed.

    A key goal of the administration’s framework for corporate tax reform is to discourage companies from parking profits abroad.

    To that end, Obama wants to impose a new minimum tax rate on the foreign profits made by U.S. multinationals operating in low-tax countries. And he would require that the minimum tax rate be paid when the profits are earned, rather than let U.S. companies defer paying the tax owed until the money is brought back to the United States.

    If the company pays income tax to the host country on those profits, it would get a foreign tax credit under the Obama proposal.

    Companies that move their operations back to the United States would get a 20% tax credit. Those that move operations abroad would no longer be able to deduct moving expenses.

    Romney: …….In terms of international taxation, Romney would like to switch to a territorial system, so that profits earned abroad by U.S.-based multinationals would no longer be subject to U.S. tax.

    http://money.cnn.com/2012/09/07/news/economy/corporate-taxes/index.html

    Thumb up 0

  8. hist_ed

    Alex, not everything is donkey con job. This situation existed before Obama was president and this applies to any corporation. In fact, corporations don’t like this. This situation exists because US tax law screws companies that try to bring foreign earned profits to the US. They are subject to income tax in whatever country they earn in and then if they try to bring that money to the US they are taxed again. If we adopted a territorial tax system that did not tax corporations’ foreign profits, then a huge disincentive to moving capital would be removed. Do you really think that GE likes this situation? Don’t you think the company would prefer to be able to move money into the US without double taxation?

    Do you think that the US government should apply US taxes to corporate profits earned abroad? In addition to the taxes paid to the country in which they were earned? This would be a enormous incentive for US corporations to move out of the US. If we did this, a company with any foreign presence would be stupid to base themselves in the US.

    Thumb up 0

  9. AlexInCT *

    Alex, not everything is donkey con job. This situation existed before Obama was president and this applies to any corporation.

    Sorry hist_ed, but I at no point implied that this practice started with Obama. Yes, it got back into full gear when Obama took over and pushed for the new taxes, but if you really must put a specific time for when this started you need to go back to the beginning of the left’s social contract. In fact, go back and look at every tax hike in the last 80 years, and you will see this specific phenomenon at work. Every tax hike was purchased by people with someone/something else to hold back, and one party was instrumental in getting them that service in practically every single time.

    In fact, corporations don’t like this.

    I disagree. Small businesses might hate this stuff, and the big corporations might hate it when it is done to them, but they, from small to large ones, all love it when it gives them an unfair advantage over others. The big and powerful corporations pursue these unfair advantages through government with a passion, because of the edge it gives them. I have worked at a few of the really big coprs, including GE, and I will tell you they love using government to steer business their way and to cripple any new rising upstart that threatens their market share. GE was something else, and I got to see it first hand during my tenure there. I hold 14 patents on internet technology from my time working there, and saw GE use a couple of those to slam some smaller and far more agile company that was starting to run circles around GE. Said company ended going belly up after GE also engaged the services of government to gain some ridiculously unfair tax/business advantage that eventually put that poor company out of existence.

    Crony capitlaism sucks.

    Do you think that the US government should apply US taxes to corporate profits earned abroad?

    Hell no. And I seriously think you miss my point entirely. I have no qualms with corporations making oodles of money, huge profits, here or abroad, as long as they do so through competition and not government enforced coercion through regulation that stifles competition. I do not think the US government should be as big and as pervasive and powerful as it is because it encourages & promotes some really bad practices that are totally anti capitalistic and damaging to the consumers.

    My point is that the people that are angry that corporations make profits/money or don’t pay their fair share, whatever the fuck that idiotic notion may imply, then turn to government to address their grievnaces, are not just idiots, they are enablers. We keep pretending that government should be used to stop things we think are bad practices when it is actually government that is, bar none, the biggest, if not the sole, enabler of those practices. If there was no mechanism to buy special favors from politicians, we wouldn’t have most of these things that idiots keep going to government to address. What we have right now, envious people asking government to stop these entities from doing things they don’t like but especially foer these entities to allow themselves to be milked so the politicians running the nanny state can buy more votes with more and bigger freebees, is akin to asking the drug dealer to somehow stop the junkies from committing crimes to pay for their habit. It is insanely stupid.

    Thumb up 2