Corporate Privilege - by Gregg Adams

Greetings tax payers. Are you tired of paying exorbitantly high taxes on your hard earned wages? Do you feel like your tax rate is always on the rise, yet the return is ever diminishing? Well according to a report released in July by the Government Accountability Office, (GAO) there's a way to avoid all of this nasty taxation. All you need to do is become a US Controlled Corporation, (USCC), or better yet, a Foreign Controlled Corporation, (FCDC). According to the study, approximately two thirds of USCC's paid no federal income taxes for the period reviewed, spanning 1998-2005. The study also found that 68% of FCDC's reported no tax liability over that period. What does that mean in real numbers? In 2005 alone, more than 38,000 foreign corporations and 1.2 million U.S. companies had no tax liability, although these companies had a combined $2.5 trillion in sales. Are you angry yet? Well the GAO, after all that statistical analysis, (I have listed the website at the end of the article) forgot to identify the companies involved. In a truly commanding act of righteous indignational, Sen. Byron Dorgan, D-N.D. said, "It's shameful that so many corporations make big profits and pay nothing to support our country,". Ironically, Dorgan had requested the GAO study, along with Sen. Carl Levin, D-Mich. So why are Senator's Dorgan and Levin not standing on the GAO's doorstep and demanding identification of the abusers? I'm just guessing here, but while this was a well crafted show of concern for their constituents, the risk of pushing it to the next level could jeopardize future campaign contributions and, perish the thought, reelection if they make things too hard on their corporate pals. After reading further, I found another quote from Dorgan. "It's time for the big corporations to pay their fair share," Dorgan said. Maybe I judged him too quickly? NAHHHHHHHHHHH! What do you think? You can find the detailed GOA report at: http://www.gao.gov/new.items/d08957.pdf

3 comments:

DeNICE said...

I like this article. There are a lot of people that know about this already, but unfortunately, the American public as a whole doesn't know this, and it's not something that is widely publicized. But do you think that if it was widely publicized that people would do anything about it? I really don't. Call me a skeptic, but this is the system in which we live under. People are numb to change and like the status quo. It's only when things personally effect a person that people are compelled to do something about it, i.e. a person whose family member is murdered taking a stand against violence.
Although one could argue that's not always the case, because everyone has been hit with the high gas prices, and who is standing up for it?
My conclusion is capitalism fueled by greed is why we have this problem and only by getting rid of greed first and then capitalism will things change. Peace, Denice

SocraticBass said...

I agree with Denice... greed has to go first. Capitalism is fine by me because it beats the alternative. When the motivation is to improve or beat out the competition with a better product or better idea, the system can work. And it ought to reward those who think harder and work smarter.

The problem is letting the whole system get dodgy in the way described in Speech's OP. Cutting moral corners to win isn't playing smart -- at the end of the day, when justice overpowers immoral greed -- these companies taking shortcuts end up losing. I have to hold onto that faith, or lose all faith that right does win in the end.

Yagnesh Vadgama said...

And we wonder why Haliburton packed up and is now based out of Dubai? Most of the no-bid contracts given out by this administration has accounts in the middle east, ergo not only reaping benefits of no taxes but also benefiting in their interest rates.

Meanwhile we're trying to survive in this so called "middle class"?