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Corporate Profits Soar 81 Percent but Few Jobs Created
On the eve of tomorrow’s unemployment report for April, we get this news from Fortune:
Profits of the 500 largest U.S. corporations soar by 81 percent ($318 billion), the third largest percentage gain in list history…Wal-Mart holds the number one spot for the second year in a row…Exxon Mobil leads profits with $30 billion, for the eighth year in row.
The stunning leap in profits is so excessive even Fortune writers are writhing in their leather chairs:
We’ve rarely seen such a stark gulf between the fortunes of the 500 and those of ordinary Americans….The profits derived partly from productivity gains, including workforce reductions. And many 500 companies are growing faster overseas than in the U.S.
Here’s the full list of the top moneymakers: http://bit.ly/mnrPsI.
So what are Wall Street CEOs doing?
Screaming for more tax breaks. Listen to them holler about how the United States has one of the highest corporate tax rates in the world. And then read on to see why these corporations actually pay less—if anything—in corporate taxes than their counterparts in other nations. From the New York Times:
By taking advantage of myriad breaks and loopholes that other countries generally do not offer, United States corporations pay only slightly more on average than their counterparts in other industrial countries. And some American corporations use aggressive strategies to pay less—often far less—than their competitors abroad and at home. A Government Accountability Office study released in 2008 found that 55 percent of United States companies paid no federal income taxes during at least one year in a seven-year period it studied.
As our Executive PayWatch site points out, U.S. corporations held a record $1.93 trillion in cash on their balance sheets in 2010.
But they are not investing to expand their companies, grow the real economy or create good middle-class jobs. Corporate CEOs are literally hoarding their company’s cash—except when it comes to their own paychecks.
Something to think about, because even if tomorrow’s job report shows improvement in the number of unemployed workers, more than 25 million will still be unemployed or underemployed.
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9 Comments
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What is missed by this article is discussed in the article below.
WHY DOES THE AFL-CIO, AND PRESIDENT TRUMKA CONTINUE TO SUPPORT THE DEMOCRATS?
IS THE AFL-CIO GOING TO AGAIN SQUANDER OVER A HUNDRED MILLION DOLLARS IN SUPPORT OF OBAMA IN 2012 ELECTION CAMPAIGN?
READ THIS AND DEMAND ANSWERS FROM THE “LEADERS” OF ORGANIZED LABOR NOW!
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Published on Thursday, May 5, 2011 by The Nation
Obama Administration Plans Corporate Tax Cut In Year Of Record Profits
by Allison Kilkenny
As nationwide budget protests continue this week, Treasury Secretary Timothy Geithner is prepared to unveil the Obama administration’s plan to lower the top corporate tax rate from the current 35 percent to less than 30 percent, and as low as 26 percent.
In order to pay for the cuts, the proposal calls for closing loopholes and slashing exemptions. Politico reports that Geithner has already begun meeting privately with CEOs, academics, labor unions, and liberal and conservative think tanks, and his aides say he is “encouraged by the response.”
Part of that optimism stems from the fact that Democrats and Republicans are both allies of the business world.
One top business lobbyist, speaking on condition of anonymity, said corporate tax reform should be “the easiest piece” of a complex fiscal bargain “because you have people in both parties in the business community.”
Meanwhile, the number of people who filed new applications for jobless benefits leaped 43,000 last week to 474,000, the highest level in almost nine months.
Full article here:
http://www.commondreams.org/view/2011/05/05-9?print
An Alternative to Capitalism (which we need here in the USA)
Several decades ago, Margaret Thatcher claimed: “There is no alternative”. She was referring to capitalism. Today, this negative attitude still persists.
I would like to offer an alternative to capitalism for the American people to consider. Please click on the following link. It will take you to an essay titled: “Home of the Brave?” which was published by the Athenaeum Library of Philosophy:
http://evans-experientialism.freewebspace.com/steinsvold.htm
John Steinsvold
Perhaps in time the so-called dark ages will be thought of as including our own.
–Georg C. Lichtenberg
I like to see no corporate tax. The reason is that all the companies do is raise the cost of the product they sell . With no corporate tax the companies would be coming back to america like a fast moving jdam. Try it and find out.
Yeah! Things would get even better if you increased their subsidies two fold. If you reduced our pay to what they make in Asia, they would be even happier. Who needs benefits either? Corporations shouldn’t have to provide them. Then there’s the expense of the social safety net. If you eliminate social security, medicare and medicaid, the corporations could make even more profits. Say! Lets turn the US into a third world country! The name sweartogod implies some sort of religious belief (based on your topics I’m assuming Christian) and I never read once Jesus talked about cutting taxes, but he did mention helping the poor a couple of thousand times. Let the corparations pay their fair share and not avoid their responsibilities. The Supreme Court says they are citizens now (they get to vote with their money), atleast let them be responsible ones. I saw a bumper sticker I liked: “Freedom isn’t free, so quit whining and pay your taxes”
Tax them untill they throw up and dont buy their products and see what happends. everytime a new computer comes out or phone which are not manufactured here they make millions inone day at our expense. but the people in this country are really stupid they have to have it and fall right into the crooks claws. This is one of the reasons this country is in the shape its in. In my military days if an item was made in the US and it didnt matter is it was used or not the buyer pays 100% tax to the government. In other words, if its sold for 1.00 the buyer pays 1.00 in taxes. This is one of the reasons our products are not purchased in other counties. they cant afford the taxes. We need to do the same here.
Obama has done nothing even close to what Clinton did to create jobs in his first term. Large corporations do not spur the jobs market, start-up companies do. Obama has lost me as a supporter. I have not voted outside the party since the Viet Nam War. I am an architect in Illinois and have designed and built many hospitals schools and churches with my uncles firm and have a jobs expansion plan for the construction industry and though it was applauded by readers of my column and subsequently requested by a senator but we never heard from him again. Obama is no friend of the working classes.
PS: You need to allocate more memory/speed to your website, writing comments here is slower than typing on a 19th century typewriter.
ProfessorPeteB you said Obama was no friend of the working class and had lost you as a supporter. Don’t tell me after all you are seeing out of these Republican governor’s that you can say with a straight face that the Republicans are friends of the working class. You must be out of your mind if you think they will let you keep any of the benefits you are now receiving or are hoping to receive in the future. They would ship every union job out of this country if they had complete control of everything. Just look at what they are trying to do to Medicare right at this very moment. As for health care they don’t think companys should be obligated to carry insurance for their employees. They say that keeps them from competing with their foreign conunterparts. So if you want to help put a Republican in Obamas place be prepared to give up everything you now enjoy if you belong to a union. Futhermore,after the mess George W. Bush and the Republicans made of the economy how could you even wish more of the same on this country? And yes it is Bush’s economy. Obama inherited this recession. We were in dire straits when he was sworn into office. At least jobs are being created under his watch not flowing out of the country by the hundreds of thousands like thjey were under Bush. The man has only been in office less than two and a half years and for everyones information he is not GOD. He cannot perform miracles. If you want him to pass everything you want him to then give him a 62 or more member Senate. If you will remember the Republicans filabustered everything the Democrats passed in the House and he never even got a chance to sign or veto them. There were over two hundred bills the Democrats passed that was left in the Senate when the Republicans took back control of the House.If you want to see worker friendly bills passed give him a filabuster proof Senate and 60 votes will not do it. You need more as we saw because of the Republicans with a “D” after their names. Does Joe Lieberman and Ben Nelson ring a bell? I sure hope you rethink your support not only for yourself but for the whole country.
So, some folks here believe that if we stopped taxing the millionaires altogether, everyone would find jobs and we would stop outsourcing to China? What a bunch of bull pucks!
Business is in business to make profits. If they can pay a Chinese or Bangledesh peasant $2/week instead of paying an American worker $20/hour, where do you think they will set up business? Taxes don’t matter when you have that low overhead. In addition, most of the bigger corporations don’t pay much in taxes anyway. The American public has to stop buying these foreign made goods. It won’t be easy since just about everything is made in Asia, but our very existence as a world leader depends on it.
These big corporations should be denied their American citizenship because they are clearly destroying our country.
First these businesses left the industrialized union North, for the non union, low wage South. Then they found cheaper labor costs in Mexico. Now they set-up sweat shops with children in Asia, with slave workers, no medical benefit, no government safety laws, and they contribuute to Communist dictators, all for the bottom line.
I could not have said it better. BUY AMERICAN!