While you were distracted with the bombing in Boston there was an issue in the Congress…..so in case you may have missed it….allow me to help….
Typical of the people in Congress…..NO real answers to real problems…..
We hear the GOP talk about closing loopholes…….we also hear Obama and the boyz speak on the need to close tax loopholes……well it seems we have bi-partisan deal working, right?
I recently did a three part series about “Rates or Reform? In these post I listed the most common tax deductions for the individual, small businesses and large corporations and then I asked if any of those would be acceptable to eliminate……NONE of them will be touched…….so with that said……what are these loopholes that both parties are saying that need to be closed?
I say that closing loopholes will not do anything to help the budget……it is a con job or at best just code for corporate tax reform…..where NO loopholes get closed, rather corporations just get more help with the avoidance of paying taxes…and then there is one LARGE loophole that should be included but will not be for the obvious reason…..
The top 83 US-based companies now hold a massive $1.45 trillion offshore, parked in low-tax countries, after increasing those holdings by 14.4%—or $183 billion—just in the last year, reports Bloomberg. The leader in offshore profit parking is GE (owner of MSNBC), with $108 billion, up $6 billion from last year, followed by Pfizer with $73 billion. Tech giants Google, Apple, and Microsoft increased their non-US holdings by 34% last year and $75.2 billion over the past two years. Experts say the rise is due to US tax laws, which incentivize booking profits offshore, and estimate the total amount all US companies (not just the top 83) are keeping offshore could be $1.9 trillion. “The corporate system is broken and it’s broken primarily because of international,” says one professor of tax law. The United States is one of the few countries that applies its full 35% corporate tax rate to profits made by US-based companies’ overseas offices, but companies can defer paying taxes until they return those profits home. Congress is working on alternative tax strategies—such as levying a much smaller tax on accumulated earnings, whether repatriated or not—but for now, those stockpiles keep growing.
This is the sort of loopholes that should be in the mix…..but my guess is that they will skate like they always skate……any thoughts?
Does anyone have a good idea what is meant by the generalization of “closing loopholes”?
It is pathetic that someone, not elected, has this much power over those that are elected…..he leads to the Dark Side……
Washington is all a buzz with the negotiations between the Congress and the Prez on what to do about our spiraling debt….yet NO matter what they say, and they all want their couple of minutes in front of the media, they are being held hostage by ONE man……
I was under the impression that the Congress and the Prez made fiscal policy…….I thought the two houses and the Prez sat around and negotiated on all fiscal policy…….and with the help of special interests, of course…..but it seems that one person makes all the tax policy for the country…..especially when we are talking about what ti do with those tax policies……..who am I speaking of?……….Grover Nordquist!
Yep, good old Grover is the single most productive person in our government….and he is NOT even elected….but just who is Grover Nordquist?
Mr. Norquist is president of Americans for Tax Reform (ATR), a taxpayer advocacy group he founded in 1985 at President Reagan’s request. ATR is a coalition of taxpayer groups, individuals and businesses opposed to higher taxes at the federal, state and local levels. ATR organizes the TAXPAYER PROTECTION PLEDGE,which asks all candidates for federal and state office to commit themselves in writing to oppose all tax increases. In the 112th Congress, 236 House members and 41 Senators have taken the pledge. On the state level, 13 governors and 1249 state legislators have taken the pledge.
I know we all have had a WTF moment and find ourselves scratching our heads…..one of mine came this morning watching a talk show……there is a conversation between a couple of people and one of them was obviously pro-business…..Gov. Rendell brought that Exxon paid NO taxes in the US in 2010….but paid $56 billion (I believe) in taxes to other countries…..there was my WTF!
You are telling me that a company that is protected by the US does not have to pay its way in the country? And then this pro-corporate dude said that they keep taxes low in this country so that business will create jobs and that would mean more people would be paying taxes and the nation’s income will go up…..WAIT! Another WTF moment!
You are telling me that that is the plan? Hire more people and get massive taxes breaks and the revenue will go up? In other words it is still on the backs of working stiffs to keep the country going. right? So it is all about the working class, middle class, whatever you would like to call it to pay all the bills? And business gets the usual free ride?
Let’s keep with that line of thinking……corporations have just gotten a massive tax break thanx to Obama and the Repubs….we all know this…..then where has the rush to create jobs been? It is NOT the tax code that is preventing the creation of jobs……it is greed!
People keep trying the old tired and lame theory of trickle down economics….they only re-package it every decade or so to fool the voter with unbelievable promises of prosperity…..and they BUY IT!
You guys really want an idea?….here is one……everybody, personal and corporations, pays 10%…no breaks, cuts or deductions….working stiffs will have more on their checks…corporations will be paying the lowest corporate tax rate…and the country will once again have a revenue…..ya like it?!
Oh yeah…..and stop making plans that will go economic NOWHERE! The truth is the best this country can ever do is a 2 year plan that coincides with elections….that is REALITY!
With the passage of the extension on the Bush tax cuts (now and forever, to be called the Obama tax cuts) has revved up the calls for extensive tax reforms….from the Prez and his minions and even from some in the Tea Party….but what are the chances?
From the WSJ…..
This week’s great debate over the fate of the Bush-era tax cuts is doing something more important than determining tax levels for a couple of years: It’s helping set the table for a fundamental reform of the tax system.
That may be a blessing in disguise. Today’s tax compromise is laying the groundwork for tomorrow’s badly needed national debate over how to perform a much more fundamental makeover of the tax code, most likely after the next presidential election.
Actually, this week’s tax debate is merely the second big recent event pushing the country closer toward this rendezvous with real tax reform. The first came in the form of the report issued by the bipartisan deficit-reduction commission Mr. Obama created to deal with Washington’s tide of red ink.
A real conversation on tax reform is needed but will it ever come?
Ezra Klein makes a very astute observation in the WaPo……..
I doubt it. If you could agree on what the words “revenue neutral” meant, you really could redesign the tax code to feature lower rates, simpler forms and less economic drag. But given the coming expiration of the Bush tax cuts, you can’t agree on what revenue-neutral means, as Democrats will say it means revenue after the cuts expire, and Republicans will say it means revenue if the cuts were extended. Until that question is resolved, every tax reform conversation will break down when Republicans realize Democrats are trying to lock in the expiration of the Bush tax cuts and Democrats realize Republicans will only reform the tax code if it means the Bush cuts live forever and ever, amen.
Conservatives want lower taxes, particularly on the rich. They want a larger percentage of Americans to pay federal income taxes, as they believe that paying federal income taxes makes you less likely to support federal spending (Question: Is there any evidence for this view?). They want major cuts in existing government programs and a high bar to creating new programs, which means total revenues have to remain below current spending and far below projected spending.
Liberals have their own concerns: They want more revenues, as they know that their programs can’t survive forever unless taxes rise to meet spending. They want the tax code to be more progressive, and they want to see inequality fall. They want taxes on wealth-income brought into line with taxes on work-income. They want the social spending that runs through the tax code, like the Earned Income Tax Credit or the breaks for clean energy development, to survive, and even be expanded.
All this back and forth….only proves ONE thing….there will be little change in the tax code and structure in the near future……the working class will pay and the wealthy will get the benefits of their station in life…………
OMG! It is coming! The horror that is taxes!
Soon the Bush tax cuts will be allowed to expire….you see they were only meant to last until 2011….so if they are allowed to expire then the Obama admin can raise needed revenue without having to pass new taxation legislation…..
And of course the Repubs have lit into this with both feet….calling it a tax increase and a deficit expander and the death of any economic recovery……but the best slogan they have come up with to describe the end of the Bush tax cuts is…….”a ticking tax bomb”….this would be a clever….yes i said it would be clever…..except for one small thing…..the term “a ticking tax bomb” was first used by the UK’s Cameron on March of 2010……I mean the GOP cannot even come up with their own slogan to try and demonize the Obama proposal.
The is sad on so many levels……I mean the GOP has no new ideas they have to resurrect the Reagan supply side economics proposal….they have nothing to reform social security other than the tired old “privatization” thing……they have NO idea how to solve the deficit other than tax cuts….and then they do not even have an original thought for a slogan blasting the expiration of the Bush Tax cuts…like I said sad on so many levels……..it would not be so bad if it was a simple slip of the tongue….but it is not…it is a talking point that all the talking heads are using when they step in front of the camera.
I find it so sad, yet so indicative of the whole out of touch label that has been given to the GOP.
Have you heard the news coming out of Arizona? No! Not the immigration thing that has everybody’s panties in a twist….I mean the sales tax thing….as reported by the LA Times:
Voters in this famously tax-averse state Tuesday night approved a temporary hike in the sales tax to stave off brutal budget cuts.
The veteran Republican had shocked many in her party last year by advocating the penny sales tax increase, arguing that the state couldn’t simply cut its way out of a deficit that rivals California’s. Critics said it was economic suicide to raise taxes in a recession.
Political observers have noted that because the governor was defying GOP orthodoxy by pushing the tax increase, she had little option but to sign the immigration bill, which is strongly supported by most Arizona voters and an overwhelming proportion of Republicans.
It seems that the American people, at least Arizonans for now, agree with me that some form of tax increases are needed to save needed programs. The residents voted FOR the increase; this was not some sneak attack on their lives by some shady, back street deal made with politicians.
Given the facts, as best as a politician can give the facts, and the people can make a decision that effects their lives……a plus for more direct democracy.