The mouthpieces of capitalism argue that if we tax corporations then they will simply shift operations to a more tax friendly locale, after all, they move to seek the lowest cost of labor power so it's obvious that where they can, they will do the same with taxes. Companies move to the southern US and to dictatorships to get better tax breaks and a Union free environment.
While we must demand that corporations and the rich must pay for a crisis of their making, it is true that they will find cheaper places to do business. After all, this is a capitalist economy, they have the right to pull up roots, destroy and entire community (or country) and take their capital elsewhere.
This is why a political party of our own, a mass workers party, is a crucial element in the struggle against the capitalist offensive. Through our own political party we can take the right of a handful of billionaires to own the means by which we produce some of the necessities of life. Recalling Republicans in order to elect candidates of the other Wall Street Party will not work. The Democrats will never take away the right of these folks to own the lifeblood of society and it is that right we have to take away. Democrats will not tax us out of this mess either, it is our taxes they will raise, workers and the middle class. Republicans and Democrats are already taking away our right to a secure and meaningful life.
Warren Buffet, the Walton Family and their friends, the Koch's, all of them, will say we are taking away their freedom and they are right. We have to deny them the freedom to exploit human beings and the environment in order for a few of them to own the wealth of society; wealth that has its source in the unpaid Labor of the working class. We can guarantee them something they cannot, or will not guarantee us----a healthy fruitful life, a productive living and an equal say in the collective running of society. That is a valuable and precious right.
Below Citizens For Tax Justice report on more tax evasion on the part of the corporations and why we do not need to cut services or jobs. It's either we pay or they do.
CTJ analyzes the pretax U.S. profits, federal taxes paid and effective tax rates of a dozen Fortune 500 companies over the 2008-10 period. From 2008 through 2010, these 12 companies reported $171 billion in pretax U.S. profits. But as a group, their federal income taxes were negative: –$2.5 billion.
Download the PDF
June 1, 2011 Contact: Bob McIntyre, 202-299-1066 ext. 22 Anne Singer, 202-299-2066
ext. 27 www.ctj.org
Analysis: 12 Corporations Pay Effective Tax Rate of Negative 1.5%on $171 Billion in Profits; Reap $62.4 Billion in Tax Subsidies. Exxon Mobil, Boeing, Verizon, Others Illustrate Why
Revenue-Raising Reform is Needed
Washington, DC – To better inform the public and lawmakers about how successful manyAmerican corporations have been in reducing or eliminating their federal income taxes, Citizensfor Tax Justice is releasing a preview of its forthcoming major study of Fortune 500 companiesand the taxes they paid — or failed to pay — over the 2008-10 period. Today’s release details the pretax U.S. profits, federal taxes paid and effective tax rates of (in alphabetical order):American Electric Power, Boeing, Dupont, Exxon Mobil, FedEx, General Electric, Honeywell International, IBM, United Technologies, Verizon Communications, Wells Fargo and Yahoo. CTJ’s full corporate report is scheduled for release this summer.1
The analysis serves to illuminate the current corporate tax debate in Washington, DC, and demonstrates that real corporate tax reform is long overdue. President Obama has indicated that he wants to reduce or eliminate corporate tax subsidies, but use all the increased revenue to lower the statutory corporate tax rate. Lobbyists for big business, along with many Republican political leaders, reject this “revenue-neutral” approach, and call for changes that would reduce corporate tax payments by trillions of dollars over the upcoming decade. In contrast, Citizens for Tax Justice and many others take the position that at a time when ourcountry faces huge long-term deficit problems, corporate tax reform should be significantly revenue-positive, as it was under President Ronald Reagan in 1986.2
Since then, the corporate taxcode has once again become overburdened with loopholes, shelters and special tax breaks.Citizens for Tax Justice and 250 organizations from all 50 states with constituencies acrossAmerica have signed a letter to Congress stating that “most, if not all, of the revenue saved fromeliminating corporate tax subsidies should go towards deficit reduction and towards creating thehealthy, educated workforce and sound infrastructure that will make our nation morecompetitive.3
The 12 corporations analyzed are major, nationally recognized companies in a range of industries, including manufacturing, energy, services, transportation, high tech and finance. Theyall made significant profits in 2010 and over the 2008-10 period..
Citizens forTax Justice
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