Corporate Welfare – Employees Paying Taxes Directly To Corporations

[Joecooool]

Taxes have been a part of government for as long as there have been things to tax, and the general idea behind them is pretty well understood. The government takes a portion of everyone’s income and spends it in such a way as to improve things for everyone in one way or another. That could be defensive spending, such as military technology or troop wages, administrative costs will always factor in, educational funding, etc. And that’s the way it works in America. Or is it? In truth, corporate lobbyists have ensured that our convoluted tax code heavily favors corporations. The fact is that it’s even possible, if you’re employed by a large corporation, that you’re paying your taxes directly toward your employing company.

In his recent book, The Fine Print, Pulitzer Prize-winning journalist David Cay Johnston explains the laws that allow corporations to go to war with the American working class. In an interview with Alternet, he said the following:


It’s now up to 21 states. In 21 states, they’ve passed a law that says that taxes withheld from your paycheck, for the state, can be kept by the company. Now, every employer doesn’t get this windfall — you have to have to get a deal from the government to do it — 2,700 big companies, every big company you’ve ever heard of, General Electric, Procter and Gamble, Deutsche Bank, you name it, they’ve got these deals, where they get to keep the taxes. Billions of dollars are diverted this way. You know the best thing for the companies about this?

The workers don’t know, because once the taxes are withheld, the state government treats you as having paid your taxes. You paid your taxes. They just then give a credit to let the company keep the taxes. I’ve called journalists. I’ve called union people who negotiate union contracts. And they say, “What are you talking about?” I showed them the work I’ve done. They go, “Oh my God!” They have no idea that this is what’s happening, and the fact that it’s spread from the 16 states when I first wrote about this and it’s now grown to 21 – eventually, all of the 44 states with income taxes are going to allow this, if we don’t put a stop to it.

He also addresses the fact that a lack of regulation is actually limiting to competition when it comes to capitalism, as more successful businesses will rapidly form industrial monopolies and oligarchies:

I want more competition. Here’s what really goes on, however. We put up barriers to competition, and in fact, Wall Street has institutionalized this concept. Morningstar, they’re a big financial advice firm. They tell people that they should grade companies and decide whether to buy their stock, based on something called a “moat index.” Moat, like around a castle? A moat index asks, “What barriers has the government erected to keep anybody else from competing against that company?” Indeed, as I show in my book, you could get rich if you invest in those companies that have regulatory moats — where under the name of deregulation, we have insulated them from the rigors of the market.

This is the real welfare in America. Corporate welfare. Where the rich get richer, and they pay other people to convince Republicans how important it is to vote for conservative puppet politicians that will vote for laws that allow “the American people” to keep more of their income tax dollars — which really benefits the rich. In reality, it’s the Republican Party that is engaging in wealth redistribution. The difference in their version? They’re redistributing wealth to the top.

[69camfrk]

Neither party is doing us any favors. I don't trust any of them as far as I could throw a school bus. The only thing a politician cares about is being reelected....

[VITE1]

So we have 21 states that have given major corporations tax incentives. And in order to make sure the Government keeps their word the corporations get to keep the State income taxes they withhold.

All Welfare is wrong. It supports people and organizations that are unable to compete. It also corrupts the people in government because they now have money to spend on projects that give them more political capital.

End ALL Welfare.

[Bill]

No state income tax to collect in Texas.....just saying.


BTW, don't ask about the property taxes.

:shiver:

[Y2Kvert4me]

Originally Posted by VITE1

So we have 21 states that have given major corporations tax incentives.

No, we have 50 states that do that.
The author just chose to tie that to state income tax collection, as if to outrage taxpayers.

Texas collects no state income tax, yet they give far more than any other state in tax incentives to big business.
Florida, another state which collects no state income tax, is the 6th biggest spender.

Want to bet the majority of the (unnamed) 21 states "that must be stopped" are far lower on that list?

The form in which a state collects its revenue is quite irrelevant. The states know very well that a big business moving in will make the state itself more prosperous, and states are very willing to invest in that to reap the reward.

[Bill]

Originally Posted by Y2Kvert4me

No, we have 50 states that do that.
The author just chose to tie that to state income tax collection, as if to outrage taxpayers.

Texas collects no state income tax, yet they give far more than any other state in tax incentives to big business.
Florida, another state which collects no state income tax, is the 6th biggest spender.

Want to bet the majority of the (unnamed) 21 states "that must be stopped" are far lower on that list?

The form in which a state collects its revenue is quite irrelevant. The states know very well that a big business moving in will make the state itself more prosperous, and states are very willing to invest in that to reap the reward.

This is very true. Texas' own Gov. Rick Perry has "The Texas Enterprise (Slush) Fund", that he uses to dole out public money to favored businesses. This is particularly irksome to me as a Texas taxpayer, because Rick didn't funnel any money to MY business. Corruption is corruption, or put another way, it's called crony capitalism. Local governments do it too, with tax abatements and other incentives.

I've got nothing against wooing business to Texas, and to my area, but to treat my existing business differently than the businesses we are trying to woo is unequal treatment under the law. I thought that sort of thing was frowned upon. I guess not.

[mrvette]

Originally Posted by bill_daniels

This is very true. Texas' own Gov. Rick Perry has "The Texas Enterprise (Slush) Fund", that he uses to dole out public money to favored businesses. This is particularly irksome to me as a Texas taxpayer, because Rick didn't funnel any money to MY business. Corruption is corruption, or put another way, it's called crony capitalism. Local governments do it too, with tax abatements and other incentives.

I've got nothing against wooing business to Texas, and to my area, but to treat my existing business differently than the businesses we are trying to woo is unequal treatment under the law. I thought that sort of thing was frowned upon. I guess not.

INteresting, I have posted on the .net about my very early childhood recollections about my Dad not paying off some crook on the hill....

I was maybe age 12 or so....him being REALLY pissed and ME worried about over some shit I maybe did......

turns out it was some crook on the hill wanted a kickback or Dad's health insurance plan for Dept of Interior was not going to be approved for open enrollment.....