Have you heard the news that corporate profits hit an all-time high this past quarter? That’s right, with unemployment stuck near double digits and the wages of American workers continuing to fall, American businesses racked up profits at an annualized rate of $1.66 trillion.
So, even though they themselves may be hurting, shouldn’t patriotic Americans cheer these profits? After all, we have a huge federal budget deficit, and at least the tax revenues from these huge profits will improve the shortfall, right?
Wrong. The sad truth is that American corporations aren’t all that American, and they’re certainly not patriotic. General Electric, fourth on the Fortune 500, had an excellent year in 2009, making profits of $10.3 billion. Their U.S. tax bill? Uncle Sam owed them $1.1 billion. How does that happen? Well, somewhere in their 24,000 page tax return are the details of how they consistently manage to make serious profits overseas but lose money in the U.S..
A similar story applies to Exxon Mobile, our nation’s most profitable company. Their profits for tax year 2008 climbed to a record high of $42.5 billion — the most ever for an American company. They did wind up having to pay $15 billion in income taxes, but unfortunately for Americans, none of that money was paid to the IRS. Exxon’s U.S. tax bill was a whopping zero dollars.
Sadly, these companies are anything but alone in their ability to exploit tax loopholes and dodge paying U.S. taxes. In fact, a 2008 study prepared by the Government Accountability Office (GAO) reported that two out of three American corporations paid ZERO, zip, nada in federal income taxes from 1998 through 2005.
Unlike average Americans, corporations enjoy considerable flexibility in both operations and the resulting tax treatment. Exxon, for example, has several wholly owned subsidiaries domiciled in the Bahamas, Bermuda and the Cayman Islands that allow them to legally shelter cash flow. Other corporations, like Google, who was recently able to reduce its effective tax rate to just 2.4%, accomplish their magic by shuffling income through foreign countries using well-known tax strategies like the “Double Irish” or “Dutch Sandwich.”
Continued on the next pageEvery time I listen to NJ Chris Christie I want to stand up and salute. Today is no different.
Please watch this 4 minute video where Chris Christie blasts LeRoy Seitz, Superintendent of Schools for the Parsippany School District about Seitz's threat to leave the state if his salary is reduced to $175,000.
NorthJersey.com has more details in Governor sets sights on Seitz contract
Last week the Parsippany-Troy Hills Board of Education voted 6-2 to renew Superintendent LeRoy Seitz's contract, which included a 2 percent per year salary increase.I Applaud LeRoy Seitz
What made the contract noteworthy, aside from the dozens of people that spoke out against it and the tongue lashing the Board and the Superintendent received from Gov. Chris Christie was that the contract Seitz is currently working under doesn't expire until July 1, 2011.
The Board began contract negotiations during the summer, at about the same time the Christie administration released information about a plan to cap chief administrator's salaries and tying the numbers to the enrollment in the district.
By finalizing the contract now the Board effectively agreed to give Seitz a salary well above the governor's proposed cap for almost five years.
At the Board meeting Mark Tabakin, the Board attorney, told the gathering of about 90 people that the cap is still in the proposal form, that the contract was approved by the County Executive Superintendent Kathleen Serafino and that it is a legal action. "People are upset," he acknowledged, "but it's up to the will of the Board."
The controversial contract drew township residents and protesters from as far away as Clifton and Hackettstown, who were outraged over the Board's end run around the proposed cap.
At times the dissenters were so vocal Board President Anthony Mancuso, who remained calm and in control throughout the proceedings, had to call for a 10-minute recess to let the outbursts subside. The police were also called during one of the breaks though they never had the need to take action.
When the public was allowed to speak the floodgates opened. Taking a sarcastic tact the first speaker Roman Hoshovsky said, "How can anyone be expected to live on $200,000?" Then he produced an empty canister and proposed using it as a collection jar in businesses around town to raise money for Seitz.
Barbara Hackling pointed out the Board had laid off teachers and refused to negotiate with the paraprofessionals, "but found money for him."
Karen Blunt, a 36-year Parsippany resident and a paraprofessional in the district said, "He is looking out for his future. I haven't had a raise in 4 years who is looking out for my future?"
The day before the meeting Seitz is quoted in the Daily Record as saying, "Because of the proposed salary caps, I have to look at my future and the financial welfare of my family. I certainly would have options if I didn't feel the compensation in this district, or New Jersey, is appropriate."
The governor reacted to Seitz's veiled threats to leave New Jersey and go to a nearby state where there is no state salary. "I will say in response to Mr. Seitz, 'Let me help you pack.' We have real problems in our state that we have to fix and we don't have the time, nor the money, nor the patience any longer for people who put themselves before our citizens," Christie railed.
A tip of the hat goes to LeRoy Seitz for being such an arrogant SOB that that the meeting to discuss the new contract overflowed with citizens fed up with school board greed.
It is not easy standing up to thugs who want nothing more but to raise your taxes. But the voters did. That's how riled up they were.
I recommend voters in the Parsippany School District send a message to the ignoramuses who agreed to give LeRoy Seitz a new contract. Vote them off the school board.
Fortunately it takes approval from another level to agree to that raise, so the raise is not a done deal yet.
New Jersey taxpayers are fed up, and rightfully so. If LeRoy Seitz thinks he can get $212,000 elsewhere, more power to him. The same holds true for every public "servant". If you can get more in the private sector, shut up and do it.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
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Have you heard the news that corporate profits hit an all-time high this past quarter? That’s right, with unemployment stuck near double digits and the wages of American workers continuing to fall, American businesses racked up profits at an annualized rate of $1.66 trillion.
So, even though they themselves may be hurting, shouldn’t patriotic Americans cheer these profits? After all, we have a huge federal budget deficit, and at least the tax revenues from these huge profits will improve the shortfall, right?
Wrong. The sad truth is that American corporations aren’t all that American, and they’re certainly not patriotic. General Electric, fourth on the Fortune 500, had an excellent year in 2009, making profits of $10.3 billion. Their U.S. tax bill? Uncle Sam owed them $1.1 billion. How does that happen? Well, somewhere in their 24,000 page tax return are the details of how they consistently manage to make serious profits overseas but lose money in the U.S..
A similar story applies to Exxon Mobile, our nation’s most profitable company. Their profits for tax year 2008 climbed to a record high of $42.5 billion — the most ever for an American company. They did wind up having to pay $15 billion in income taxes, but unfortunately for Americans, none of that money was paid to the IRS. Exxon’s U.S. tax bill was a whopping zero dollars.
Sadly, these companies are anything but alone in their ability to exploit tax loopholes and dodge paying U.S. taxes. In fact, a 2008 study prepared by the Government Accountability Office (GAO) reported that two out of three American corporations paid ZERO, zip, nada in federal income taxes from 1998 through 2005.
Unlike average Americans, corporations enjoy considerable flexibility in both operations and the resulting tax treatment. Exxon, for example, has several wholly owned subsidiaries domiciled in the Bahamas, Bermuda and the Cayman Islands that allow them to legally shelter cash flow. Other corporations, like Google, who was recently able to reduce its effective tax rate to just 2.4%, accomplish their magic by shuffling income through foreign countries using well-known tax strategies like the “Double Irish” or “Dutch Sandwich.”
Continued on the next pageEvery time I listen to NJ Chris Christie I want to stand up and salute. Today is no different.
Please watch this 4 minute video where Chris Christie blasts LeRoy Seitz, Superintendent of Schools for the Parsippany School District about Seitz's threat to leave the state if his salary is reduced to $175,000.
NorthJersey.com has more details in Governor sets sights on Seitz contract
Last week the Parsippany-Troy Hills Board of Education voted 6-2 to renew Superintendent LeRoy Seitz's contract, which included a 2 percent per year salary increase.I Applaud LeRoy Seitz
What made the contract noteworthy, aside from the dozens of people that spoke out against it and the tongue lashing the Board and the Superintendent received from Gov. Chris Christie was that the contract Seitz is currently working under doesn't expire until July 1, 2011.
The Board began contract negotiations during the summer, at about the same time the Christie administration released information about a plan to cap chief administrator's salaries and tying the numbers to the enrollment in the district.
By finalizing the contract now the Board effectively agreed to give Seitz a salary well above the governor's proposed cap for almost five years.
At the Board meeting Mark Tabakin, the Board attorney, told the gathering of about 90 people that the cap is still in the proposal form, that the contract was approved by the County Executive Superintendent Kathleen Serafino and that it is a legal action. "People are upset," he acknowledged, "but it's up to the will of the Board."
The controversial contract drew township residents and protesters from as far away as Clifton and Hackettstown, who were outraged over the Board's end run around the proposed cap.
At times the dissenters were so vocal Board President Anthony Mancuso, who remained calm and in control throughout the proceedings, had to call for a 10-minute recess to let the outbursts subside. The police were also called during one of the breaks though they never had the need to take action.
When the public was allowed to speak the floodgates opened. Taking a sarcastic tact the first speaker Roman Hoshovsky said, "How can anyone be expected to live on $200,000?" Then he produced an empty canister and proposed using it as a collection jar in businesses around town to raise money for Seitz.
Barbara Hackling pointed out the Board had laid off teachers and refused to negotiate with the paraprofessionals, "but found money for him."
Karen Blunt, a 36-year Parsippany resident and a paraprofessional in the district said, "He is looking out for his future. I haven't had a raise in 4 years who is looking out for my future?"
The day before the meeting Seitz is quoted in the Daily Record as saying, "Because of the proposed salary caps, I have to look at my future and the financial welfare of my family. I certainly would have options if I didn't feel the compensation in this district, or New Jersey, is appropriate."
The governor reacted to Seitz's veiled threats to leave New Jersey and go to a nearby state where there is no state salary. "I will say in response to Mr. Seitz, 'Let me help you pack.' We have real problems in our state that we have to fix and we don't have the time, nor the money, nor the patience any longer for people who put themselves before our citizens," Christie railed.
A tip of the hat goes to LeRoy Seitz for being such an arrogant SOB that that the meeting to discuss the new contract overflowed with citizens fed up with school board greed.
It is not easy standing up to thugs who want nothing more but to raise your taxes. But the voters did. That's how riled up they were.
I recommend voters in the Parsippany School District send a message to the ignoramuses who agreed to give LeRoy Seitz a new contract. Vote them off the school board.
Fortunately it takes approval from another level to agree to that raise, so the raise is not a done deal yet.
New Jersey taxpayers are fed up, and rightfully so. If LeRoy Seitz thinks he can get $212,000 elsewhere, more power to him. The same holds true for every public "servant". If you can get more in the private sector, shut up and do it.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
bench_craft_company
Denver Broncos <b>News</b>: Horse Tracks 11/27/10 - Mile High Report
Your daily cup of Orange and Blue Coffee - Horse Tracks.
The <b>News</b> Diamond reinterpreted: “Let the crowd have the middle <b>...</b>
Jonathon Shuler has published a post exploring the News Diamond from my Model for a 21st Century Newsroom. As part of that he's added an extra layer to th...
Miller returns to net tonight - Sabres Edge - Blogs - The Buffalo <b>News</b>
The Buffalo News updated every day with news from Buffalo, New York. Links to national and business news, entertainment listings, recipes, sports teams, classified ads, death notices.
bench_craft_company
Denver Broncos <b>News</b>: Horse Tracks 11/27/10 - Mile High Report
Your daily cup of Orange and Blue Coffee - Horse Tracks.
The <b>News</b> Diamond reinterpreted: “Let the crowd have the middle <b>...</b>
Jonathon Shuler has published a post exploring the News Diamond from my Model for a 21st Century Newsroom. As part of that he's added an extra layer to th...
Miller returns to net tonight - Sabres Edge - Blogs - The Buffalo <b>News</b>
The Buffalo News updated every day with news from Buffalo, New York. Links to national and business news, entertainment listings, recipes, sports teams, classified ads, death notices.
bench_craft_company
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