James L Bradley March 2013

I imagine, if youre one who keeps abreast of the political dance taking place on the banks of the Potomac, you have seen and heard the moans and sobs of the members of the Grand Old Party, and youve about heard enough of their poor me mantra. They lift their eyes to the heavens above, with copious streams of tears washing over their holy cheeks, spinning tales of woe to anyone who will listen that the government and those that might pickup an allowance of foot stamps or a monthly Social Security check are causing the downfall of our great nation. To a person this crowd, all supported by entities that are well hidden behind this curtain or that one, publish figures and narratives in legal size pamphlets, that they have assembled, that support their not so free tears. They pound their fists on their bully-pulpit, while between their moans they point at our sitting government (which some have assisted, in a much better time-construct) as the primary reason our economy is failing. Too many regulations, too many taxes, and too many of the Middle Class being NOT employed as a pure Democrat problem. And get this, there are too many to count in our society who slurp this up like hot gravy on a turkey sandwich their lips covered with gravy they post their analysis on this or that social media praising the GOP members on stopping our government spending in most cases fire-breathing Christians who as most always havent got a clue and could care less to obtain a clue, after all it Gods Will. Recently, a well researched chart was published in the Washington Post that analyzed the DOW, of course you know there are 30 well known corporations who make up the DOW, or Dow Jones Industrial Average this chart shows that since 1969 twenty-six of those magnificent entities have

had on average a 20.7% decrease in the amount of taxes they pay, while only four of them have shown a modest 6.35% increase in their taxes. Pfizer has paid not taxes since 1995, zero, nada, and HP hasnt coughed up a tax payment since 2010. Now as youve noticed there are a large number of American companies who have beat a well worn path to the GOP congressional office lobbing for tax reform, that would lower their tax rates while studies have proven that overall they are paying 50% of what they were paying four or more decades ago. When you look at the tax structure you cant help but notice that in fact America plays pretty loose with its tax laws, a fact that allows corporations to snip from the top deductions and whatnot that makes an ordinary homeowner droolwhen was the last time you took a deduction for your childs color crayons, or this or that software program or a humped up mileage allowance for you chariot never. Well these corporations take deductions for the water fountains found outside in the hallway, deduction for the electricity and the bill they receive for getting rid of waste when was the last time you got a deduction for poop. The American Tax Code (a law) permits companies to shield Foreign profits from taxation, that is until some idiot posts them on the books back home which happens never. Due to this Christmas bonus, the largest 83corporations moved $166 billion overseas in 2012 alone, where when you add it all up it comes to $1.45 trillion, whereas a study by the Congressional Research Service, the monies are stuffed in tax havens such as Bermuda, the Cayman Islands, Luxembourg, and Ireland. Consequently take McDonalds who has enjoyed their tax rate go from 37% in 1973 to 14% in 2012. Now dont get me wrong I dont encourage running down to the IRS with bucket full of greenbacks throwing it on their desk, kissing the clerk and walk

out with a potato sack as a pair of pants but today we see Corporate profits hitting a 60-year high in 2011, with an effective tax rate at a 40-year low, and the wages of the American worker having been in limbo for the last ten-years or more. These figures are showing that Americas largest corporations havent paid the full corporate rate in 45-years, and 26 of them have avoided taxation altogether for the last 4-years. Consider, in spite of this huge reduction in paying their way they want more and YET when some other government stomps of them these corporate entities coming running home and demand that our young people march off to fight a battle they more than likely caused Iraq and Afghanistan while they sit sipping $1500 bottles of Champagne with their dollies draped on their shoulders you approve?

Corporate leaders primary goal is to reform the tax code adopting a territorial tax system that would exempt foreign profits from American taxation, which would make it simple for companies to shift profits,

investments, and jobs overseas. Preliminary figures demonstrate that such an adoption would create over 800,000 positions in other countries, jobs that could benefit the employment picture here in the United States the other side of the picture is to reform or close the corporate loopholes that push the off-shoring of profits and jobs, albeit would not bring the tax rate back to its historical levels, generating some $170 billion in revenue over the next decade it sure trumps the plan to create a further dip in employment and revenue for the government.

http://www.washingtonpost.com/wp-srv/special/business/dow-30-taxes/