Tag Archives: deficit

If We’re So Broke How Come Billionaire Companies Pay No Taxes?

So, you keep hearing the GOP and the Tea Party types tell us how broke we are. GOP is trying to convince us that taking money from Meals on Wheels, Medicare, Social Security, Planned Parenthood, WIC, Unemployment, etc. in order to pay down the debt and reduce the deficit.

They fought Obama hard demanding he leave George Bush’s tax cut for the wealthiest 2% in the country for another two years. They forced him to make a deal with them so he could actually pass legislation that helps the average American household. Keep in mind, President Obama is the person you have to fear. I mean seriously I’d be scared too if there was a guy in the White House telling the wealthy and the corporations that the free ride they’ve gotten used to since the Supreme Court appointed George Bush to the position of President of The United States.

Before G.W. and his handlers took over the top 2% in the country were paying close to 36% in taxes under Bill Clinton. Refresh your memories if you need to but that helped to create the BUDGET SURPLUS that G.W. quickly squandered away. Problem is he also cut their taxes so low there was no way to replace that, so they cooked the books. The left the cost of the wars and countless other things from the budget, so it didn’t look too bad to Americans.

Then American got a new President. One that told us almost immediately the deficit was actually much higher than reported by the previous administration because they omitted things like the cost of war.

But here we have a list of who has all the money and why the middle class, women, seniors and the poor are now being told it is up to them to share the sacrifice but what about these people?

When do share they begin sharing the sacrifice?

1) Exxon Mobil made $19 billion in profits in 2009. Exxon not only paid no federal income taxes, it actually received a $156 million rebate from the IRS, according to its SEC filings.

2) Bank of America received a $1.9 billion tax refund from the IRS last year, although it made $4.4 billion in profits and received a bailout from the Federal Reserve and the Treasury Department of nearly $1 trillion.

3) Over the past five years, while General Electric made $26 billion in profits in the United States, it received a $4.1 billion refund from the IRS.

4) Chevron received a $19 million refund from the IRS last year after it made $10 billion in profits in 2009.

5) Boeing, which received a $30 billion contract from the Pentagon to build 179 airborne tankers, got a $124 million refund from the IRS last year.

6) Valero Energy, the 25th largest company in America with $68 billion in sales last year received a $157 million tax refund check from the IRS and, over the past three years, it received a $134 million tax break from the oil and gas manufacturing tax deduction.

7) Goldman Sachs in 2008 only paid 1.1 percent of its income in taxes even though it earned a profit of $2.3 billion and received an almost $800 billion from the Federal Reserve and U.S. Treasury Department.

8) Citigroup last year made more than $4 billion in profits but paid no federal income taxes. It received a $2.5 trillion bailout from the Federal Reserve and U.S. Treasury.

9) ConocoPhillips, the fifth largest oil company in the United States, made $16 billion in profits from 2007 through 2009, but received $451 million in tax breaks through the oil and gas manufacturing deduction.

10) Over the past five years, Carnival Cruise Lines made more than $11 billion in profits, but its federal income tax rate during those years was just 1.1 percent.

Vermont Senator Bernie Sanders was nice enough to put the list above together for Americans so they can see just who really matters in this country now. It isn’t us folks, it’s them.

Sanders has called for closing corporate tax loopholes and eliminating tax breaks for oil and gas companies. He also introduced legislation to impose a 5.4 percent surtax on millionaires that would yield up to $50 billion a year. The senator has said that spending cuts must be paired with new revenue so the federal budget is not balanced solely on the backs of working families.

“We have a deficit problem. It has to be addressed,” Sanders said, “but it cannot be addressed on the backs of the sick, the elderly, the poor, young people, the most vulnerable in this country. The wealthiest people and the largest corporations in this country have got to contribute.

Will we sit by and continue allowing the Koch funded Tea Party and GOP to lie to us while bashing the President so they can continue rewarding the wealthiest in this country with the money they are stealing from us?

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GOP continues to expect average Americans to shoulder the tax burden of the Nation’s wealthiest citizens

As the Bush Tax Cuts for the top 4% of our population nears expiration the GOP is of course now blasting Obama and Democrats for their desire to let the cut run out.

Of course their reasoning is that during a time of economic crisis you never increase any taxes (except those of course of the other 96% of us) when there is a deficit. They hope most Americans have no clue just who it is that will endure a tax increase and unfortunately they are usually right. The average uninformed, uninvolved American probably has no idea just what the arguement is about. That’s how they always convince those most in need to rant, rave, protest and vote against their own best interest.

You don’t hear Sarah Palin, John Boehner, Newt Gingrich or any other member of the GOP telling the American public that we can’t allow the top 4% of wealthy Americans to suddenly be expected to pay their fair share of taxes again when this thing runs out. Of course not, then Americans would understand this isn’t about putting the tab on them, but rather lifting the tax burden they’ve carried for the wealthiest in our country for the last 8 years. Is it any wonder they fight Obama and Democrats so hard. Their buddies will take a hit as will they. Can’t have Limbaugh or Beck or Hannity pissed off that they now have to pay their fair share. Can’t have the big corporations pissed at us when we need their continued payoffs, parties and perks. The GOP and it’s repeated BS peddlers continue to talk in circles about the reality of these original tax cuts and just who ends up suffering in the end. It sure isn’t the top 4% that have enjoyed this cut for the last several years. The GOP is perfectly happy racking up the deficit if it means providing a nice tax break for themselves and their wealthy friends while telling you that making the wealthier pay taxes you are now covering for them is bad, bad, bad for deficit.

Yet even former Fed Chairman Alan Greenspan can be honest with the people even the GOP will probably turn on him now and go for the jugular since he’s not towing the party tugboat of more for us less for you equals good for America. He acknowledged this morning on NBC’s “Meet the Press,” that the push by congressional Republicans to extend the Bush tax cuts without offsetting the costs elsewhere could end up being “disastrous” for the economy.

In an interview on Greenspan expressed his disagreement with the conservative argument that tax cuts essentially pay for themselves by generating revenue and productivity among recipients.

“They do not,” said Greenspan. “I’m very much in favor of tax cuts but not with borrowed money and the problem that we have gotten into in recent years is spending programs with borrowed money, tax cuts with borrowed money,” he said. “And at the end of the day that proves disastrous. My view is I don’t think we can play subtle policy here.”

So while the tax cuts Bush passed ten years ago are going to expire, thereby bringing rates back to Clinton-era levels and President Obama is pledging to continue the tax breaks for those individuals making under $200,000 and those families earning less than $250,000 the GOP will solider on. They will continue to lie to the American public with claims that tax cuts for the wealthy that the rest of won’t receive is good for all us, even as it would continually tick up the total deficit.

Rest assured they have no intention of explaining how or why hose tax breaks will pay for themselves but they have no reason to tell you the truth.


CBO Report on Senate Bill: Will Insure 94% of Americans and Cuts Defecit by $127 Billion

From the Huffington Post:

House conservatives have threatened to block the reform bill if their more restrictive provision isn’t included. Kerry acknowledged that there could still be negotiations, “but that’s where the Senate is starting.

Instead of taxing the rich to pay for a significant piece of the bill, as the House does, the Senate plan taxes “Cadillac” health plans. But the value of plans that would be taxed is increased from previous versions to $8,500 for an individual and $23,000 for a family of four. Higher values are allowed in high-cost states and workers in high-risk jobs – such as coal miners – are given an exemption.

Reid’s bill also altered the formula by which businesses would be assessed a fee for not insuring their workers. But the new formula was unclear. Kerry called it “convoluted” and Durbin dubbed it “complex.”

Reid presented to his colleagues a preliminary Congressional Budget Office analysis of the Senate health care legislation. It finds that the bill will cost $849 billion over the next decade while covering 94 percent of eligible Americans; 31 million currently uninsured Americans would be covered under the legislation. The bill would also lower the deficit by $127 billion over the next decade and by $650 billion during the decade after that. Kerry cautioned that the numbers were still being finalized and could change slightly.

By keeping the total cost of the bill under $900 billion, Reid met one of the conditions set by the Obama White House. The bill is also expected to drastically bend the cost curve in the health care system — another major Obama objective — by achieving “almost a trillion dollars in cost savings” within the health care system.

Reid will file a cloture motion Thursday, which will be followed by an intervening day, by Senate rules, leaving Saturday for the vote.


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