Tuesday, November 30, 2010

Government for and by the "People" - Probably NOT

Balancing the Budget
Put on the Backs of the Working Class
“President Obama today proposed a two year freeze in civilian pay for federal employees that the White House says will save $2 billion in fiscal year 2011 and more than $60 billion over the next decade… The move was embraced by top Republicans and criticized by labor leaders like AFL-CIO President Richard Trumka, who said in a statement that the proposal "is bad for the middle class, bad for the economy and bad for business."   (Source)

While the Rich Get Richer
Republicans are prepared to vote down a bill extending all but the top-end tax cuts, the second-ranking GOP leader in the House said Tuesday….Incoming House Majority Leader Eric Cantor (R-Va.) said that he was ready to instruct GOP members to vote down legislation Democrats plan to bring to the floor that would extend the expiring Bush-era tax cuts only for the middle class.   (Source)

And they will probably get continued tax breaks
Republicans support the extension of lower rates in the top brackets, along with abolishment of provisions that phase out deductions and personal exemptions for high wage earners. Under current law, Congress would have to raise taxes or cut spending elsewhere in the budget by about $21.3 billion for 2011 and $573 billion over the next decade to retain the 33 and 35 percent tax brackets.  (Source)
Letting the tax cuts for wealthiest expire would reduce the deficit by about $700 billion over 10 years. Extending all the cuts adds to the deficit — the shortfall between what government collects and what it spends — by an estimated $2.5 trillion over a 10-year period.  (Source)
Treasury Secretary Timothy Geithner said Wednesday that extending the Bush-era tax cuts for the wealthy would be a $700 billion mistake. (Source)

And the Corporations Still Don’t Pay the US Taxes
(See my blog entry from  11/24/10)

Corporations are getting smarter, not just about doing more business in low-tax countries, but in moving their more valuable assets there as well. That means setting up overseas subsidiaries, then transferring to them ownership of long-lived, often intangible but highly profitable assets, like patents and software. “
As a result, figures tax economist Martin Sullivan, companies are keeping some $28 billion a year out of the clutches of the U.S. Treasury by engaging in so-called transfer pricing arrangements,  (Source 3)
“With corporate tax receipts at 20-year low, the GAO takes a look through the books and finds 94% of all U.S. companies paid less than 5% -- and 61% paid nothing at all.” (Source 1)

“About 70% of foreign-owned companies doing business in the United States paid no federal tax in the late 1990s, the GAO said. The GAO report covered 2.1 million returns by U.S. companies and 69,000 foreign-owned companies.”(Source 1)

“In fact, in 2008, the Government Accountability Office found that two out of every three United States corporations paid no federal income taxes from 1998 through 2005.”  (Source 4)

Sorry folks - but the numbers just don't add up.
Soemthing is really fucked up in our (using the phrase Republicans are touting right now) "exceptional America".

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