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By boukakis logic, since we dont tax corporations at 100% we are just loaning them the money to stay in business.
Capital throws a few one crumbs, bonuses, to sucker Labor into ignorant, silent compliance,
while Labor has its workplace, air, water, soil polluted via "deregulation", while
GOP Tax Plan Hides Trillions In Sweetheart Deals For Apple And Other Multinationals
The superficial story that the mainstream media covered: multinational companies like Apple will pay taxes on profits they earned in America, but stashed offshore to delay payment.
The real story is that these companies get layers of new tax breaks on profits they shipped overseas without paying any corporate income tax.
When companies siphon profits out of the country they obtain, in effect, loans from Uncle Sam at zero interest. The loan is the amount of tax not paid.
Profits earned by domestic American companies are subject to a 35 percent tax. Profits that are technically–and we do mean technically–shipped offshore are taxed at a rate of zero unless and until the profits are returned to the United States.
Instead of paying a 35 percent tax on profits it earned in years past and sent offshore as interest-free loans from Uncle Sam, Apple will pay only a 15 percent tax. Some companies will pay less than 10%.
What you likely haven’t read before is that Apple and the other multinationals get eight years to pay their much-reduced tax bills. Imagine if Congress said you could pay your 2017 income taxes in installments, with no interest charge, over eight years. Sweet deal.
Apple’s reduced tax payments are backloaded. They pay a little this year and delay a big chunk until 2025.
Apple and others will pay only eight percent of the tax bill this year on profits they have earned over decades and then stashed–untaxed–in accounts overseas.
Those profits, by the way, are actually here in America, but the address on the tax deferral account is overseas, a profitable financial game Congress allows under President Reagan’s 1986 Tax Reform Act. You don’t get that deal because you are a human being, not a multinational corporation.
Not until 2025 will Apple pay the last one-fourth of the reduced tax bill it owes on profits from years past. Sweet deal,
Because of inflation and the opportunity to invest money to earn investment income, each dollar of tax paid in future years is worth less than a dollar paid this year.
what will be the real tax rate Apple will pay by these standard measures? Between negative 0.5 percent and two percent.
while Apple and other big multinationals got to defer past taxes and now get to defer them for years more, your taxes come out of your paycheck before you get your money.
have you asked Trump, your senator, or your congressperson to loan you the income taxes that are taken out of your paycheck so you can get these loans at zero percent interest?
And did you then ask them to cut your tax rate by more than half and spread your actual payments out until 2025?
Apple and other multinationals get the tax savings and investment income, you get stuck with the bill.
Even applying the less than two percent annual return on investment Jim used, the hard math shows Apple will offset half of its final tax payment with investment earnings.
Use the return on capital that Apple tells shareholders, the company’s cost of capital is 9.6 percent. Apple will turn a huge profit on the delay in paying the taxes it has already delayed paying for years.
http://www.nationalmemo.com/gop-tax-...ultinationals/
Apple is the example, but ALL US multi-nationals will do the same, BigPharma, Boeing, John Deere, etc, and BigFinance will also figure out how to play.
Even if Dems take Congress and the WH, they won't be able to stop, and certainly not reverse, the oligarchy's financial coup d'etat
America is ed and un able.
By boukakis logic, since we dont tax corporations at 100% we are just loaning them the money to stay in business.
No. His gripe is their effective tax rate is significantly lower than the corporate tax rate... and that they basically decide when they feel like paying taxes
Profits earned by domestic American companies are subject to a 35 percent tax. Profits that are technically–and we do mean technically–shipped offshore are taxed at a rate of zero unless and until the profits are returned to the United States.
Instead of paying a 35 percent tax on profits it earned in years past and sent offshore as interest-free loans from Uncle Sam, Apple will pay only a 15 percent tax. Some companies will pay less than 10%.
All that publicity may give the impression that everyone is sharing in the tax cut windfall, but that isn't the case. In a recent survey by Willis Towers Watson, just 7 percent of employers said they increased pay for all employees or plan to do so this year. Eighty percent of respondents said they're weren't even considering raising wages as a result of the Tax Cuts and Jobs Act.
Where exactly in this recent survey by Willis Towers Watson does it say that? This is what the recent survey links to:
Tax law fueling changes to employer benefits and compensation programs, Willis Towers Watson survey finds
Expanded personal financial planning and increased 401(k) contributions among most considered changes to benefit programs
ARLINGTON, VA, January 25, 2018 — The new tax reform law is fueling changes to corporate America’s employee benefits, compensation, total rewards and executive pay programs, according to a survey by Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company. The survey of 333 large and midsize employers reveals nearly half (49%) of the respondents are considering making a change to at least one of these programs this year or next.
“The tax reform law is creating economic opportunity to invest in their people programs,” said John Bremen, managing director, human capital and benefits, Willis Towers Watson. “While a significant number have already announced changes to some of their programs, the majority of employers are proceeding to determine which changes will have the highest impact and generate the greatest value.”
Two-thirds of those (66%) surveyed are planning or considering making changes to their benefit programs or have already taken action. The most common changes organizations have made or are planning or considering include expanding personal financial planning (34%), increasing 401(k) contributions (26%) and increasing or accelerating pension plan contributions (19%). Other potential changes include increasing the employer health care subsidy, reducing or holding flat the employee payroll deduction, or adding a new paid family leave program in accordance with the Family Medical and Leave Act's tax credit available for paid leave for certain employees.
Sixty-four percent of employers are planning or considering taking action on their broad-based compensation programs, or have already taken action. The most common changes organizations have made or are planning or considering include conducting a review of their compensation philosophy (43%), addressing pay-gap issues (36%) and introducing a profit-sharing or one-time bonus payout to all employees (21%).
About four in 10 companies (41%) are also planning or considering changes to their executive pay programs, or have already taken action. The most common changes employers have made or are planning or considering including spending more time and analysis on this year’s incentive target (33%) and increasing the use of discretion in 2018 incentive plans (19%).
“The results of our survey, coupled with the actions taken by some large employers over the past few weeks, suggest that investing in their people remains a top priority. We fully expect most organizations will take the time to thoughtfully evaluate the impact of the tax law on their organization and then make changes that support their specific business strategy,” said Kathy Walgamuth, director, communication and change management, Willis Towers Watson. “The tax law and subsequent company announcements have made headlines, so employees may already have established their own set of expectations. Wherever an organization lands, even if the decision is made to not take any direct action for employees, it’s essential for them to consider the need to communicate and address employee questions.”
About the survey
Willis Towers Watson surveyed 333 large and midsize U.S. companies to determine their plans to invest savings resulting from the change in the corporate tax rate under the tax reform law. The survey was conducted between January 10 and 17.
https://www.willistowerswatson.com/e...ation-programs
The article seems very complimentary to the tax cuts - maybe I'm reading wrong and you can correct me.
Last edited by rmt; 01-30-2018 at 06:04 PM.
lol Spurminator with the fake news
rmt with the goods per par
That is a press release by Willis Towers Watson, that's not the survey. The DMN is referring to the survey and likely has the raw data.
I fail to see how they could have raw data that indicates "7 percent of employers said they increased pay for all employees or plan to do so this year. Eighty percent of respondents said they're weren't even considering raising wages as a result of the Tax Cuts and Jobs Act." in TOTAL CONTRADICTION to their press release. DMN should not be printing such data and LINKING to such a complimentary press release - they should link to that raw data so we can judge for ourselves. And including words like "all" can change meaning.
So in the absence of the survey itself, you feel it's safer to assume that the Dallas Morning News (a conservative paper) has published invented statistics, and not that they are reporting on elements of the survey that the press release didn't mention.
There is no direct contradiction between the press release and the DMN article.
As I added to my previous post, adding words like "all" can change meeting eg. that 7% stat could also include employers who increased pay for all BUT say the CEO or the C-level employees. My point is they provided a link to a survey that was very complimentary to the tax cut - not supporting their 7% and 80% stats.
Paul Ryan with a stupid unforced error. What the was he thinking? Who touts a 1.50 a week pay raise on Twitter?
https://www.cnn.com/2018/02/03/polit...ash/index.html
I was like 1.50 an hour? That's good. Decent. Then I reread it with per week.Paul Ryan with a stupid unforced error. What the was he thinking? Who touts a 1.50 a week pay raise on Twitter?
https://www.cnn.com/2018/02/03/polit...ash/index.html
Not that I would be touting a $1.50 a week pay raise BUT that Costco membership will save her considerable amount in a year. The savings alone on gas is worth the Costco membership - 4% off Costco's already low gas prices (up to $7k), good quality at low prices and let us not forget - available gas and water during hurricanes when NOBODY else has them - priceless if you ask me - kudos to Costco.
I'm pretty sure she could afford the membership. She's just stating what those savings can be used on. Not to mention all the other programs that are being cut to make wave for this corporations tax cut.
I'm surprised that no one's brought up the question of: Who saw more money in their last paycheck?
Something less that 2% of companies are giving ONE-TIME bonuses ostensibly because of the tax cut, and even fewer are giving permanent raises.
the oligarchy tax plan is like the central Communist party 5-year plans, except in the USA, it's a 10-year tax plan from the central Capitalist oligarchy party
I don't care whether it's from bonuses or raises or tax cut. Bottom line: who has more money in their pocket/bank account?
When I signed checks this week with the new tax tables it looked like take home checks were around $50 a week more.
The $1.3 trillion tax increase Trump announced in his State of the Union speech
Trump administration wants to spend $1.5 trillion on America’s infrastructure.
Here’s how Trump plans to make you pay for it.
In the State of the Union speech this week, President Trump announced:
Tonight, I am calling on the Congress to produce a bill that generates at least $1.5 trillion for the new infrastructure investment we need.
On the surface this sounds like he wants Congress to authorize $1.5 in infrastructure investment. Notice the curious turn of phrase though “a bill that generates $1.5 trillion.”
He doesn’t explain this term in detail, but he does say:https://www.dailykos.com/stories/2018/2/4/1737764/-The-1-3-trillion-tax-increase-Trump-announced-in-his-State-of-the-Union-speech
Every Federal dollar should be leveraged by partnering with State and local governments and, where appropriate, tapping into private sector investment -- to permanently fix the infrastructure deficit.
This means the Trump plan is looking for the difference—a whopping $1.3 trillion—from:
- State governments
- Local governments
- The private sector
How do these en ies operate?
State and local governments
The two most common ways for state and local governments to raise money is through tax increases or by taking on more debt by issuing bonds.
State governments could raise state income taxes, state sales taxes, sin taxes, estate taxes, luxury taxes, or corporate taxes.
We know they won’t raise any taxes on the wealthy or corporations, because these groups have enough lobbying power to prevent it.
This means any of that $1.3 trillion that comes from local or state governments could come from tax increases on the 99 percent.
This means that the private sector will expect to make more than any part of that $1.3 trillion they invest back in return for their investment. For example, if the private sector invests $800 billion, they will want that $800 billion back plus a hefty profit on top of that $800 billion.
Wait … So you’re saying that it’s now going to cost more than $1.3 trillion?
If it’s through the private sector, yes. It will be $1.3 trillion plus the profit that the investors expect.
Once they sell the infrastructure to private investors, said private investors will turn around and charge the public fees or tolls.
In Virginia, two private companies, Macquarie and Skanska, hold tolling rights for the tunnels in Hampton Roads until the year 2070. Macquarie has been criticized for sending invoices of up to $18,000 to low-income drivers.
By definition, these fees/tolls will be more than the original investment so that the investors can turn a profit.
Voila. Infrastructure is paid for by you, the public.
Here's the kind of deal I expect for BigFinance to "pay for" the infrastructure:
We'll buy your infrastructure bonds at a LIBOR-based rate.
To encourage us to rip off citizens, Repugs will make our profits from the interest on the infrastructure bonds tax free, and we'll demand ownership of the infrastructure.
Repugs are fiscally conservative!
Era Of Trillion-Dollar Budget Deficits Is Making A Comeback
at issue is a two-year deal to increase crunching caps on spending set by a failed 2011 budget deal. Republicans have pushed for defense increases in the neighborhood of $80 billion a year and have offered Democrats nearly as much — $60 billion or so per year — for nondefense programs.
Add in $80 billion to $90 billion worth of hurricane aid for Texas, Florida and Puerto Rico, health care funding and money for President Donald Trump’s border security plan, and the final tally could total close to $400 billion. The potential cost, over the 2018-19 budget years, would rival the deficit impact of last year’s tax measure over that period.
“Republicans for years have made all of these bold promises to rein in spending,” .... “And they’re doing the opposite.”
a follow-up omnibus spending bill, whose overall cost is likely to exceed $1.2 trillion. That means domestic programs get their due, despite the opposition of conservatives.
Republican deficit hawks stepped aside during last year’s tax debate, and it’s not looking like they’ll mount a stand now.
Instead, GOP defense hawks worried about lagging readiness, training and weapons procurement
are carrying the day, even if it means placating Democrats with spending elsewhere.
“This budget dysfunction has a human cost, and our military is bearing the brunt of it,”
https://talkingpointsmemo.com/news/e...+%28TPMNews%29
MIC spending is fraudulent, corrupt corporate welfare, redistributing taxpayer wealth upwards.
The increase was reflected in my paycheck this week. My household net income will increase by ~$500 per month. Every penny of it will go straight into my kid’s 529. That’ll do wonders for the economy
And the extra $6k per year won’t buy my vote come 2020.
Accounting firm just said DoD lost track of $1B
Very surprised it's so low. DoD is totally corrupt, nothing but corporate welfare for the MIC
Kimberly-Clark Uses GOP Tax Break to Sucker Punch Wisconsin Workers
Kimberly-Clark, maker of paper-based products such as Kleenex, Viva paper towels, Cottonelle bathroom tissue and Huggies disposable diapers, announced earlier this month that the corporation would
use its tax cut windfall to pay the costs of closing 10 factories and dumping as many as 5,500 workers worldwide.
It wasn’t that Kimberly-Clark was insolvent. Just the opposite. Last year, its profit was $2.28 billion or $6.40 a share. For 2018, the corporation is shooting for more, at least $6.90 a share, by “reorganizing,” that is, ditching factories and workers.
David said he thinks the workers in Wisconsin’s Fox Valley who voted for Trump want to see some follow through on his promises to create jobs, raise incomes and establish fair trade.
None of that is accomplished by the GOP tax scam that
promoted off-shoring by granting corporations lower tax rates for overseas factories and that
gave massive breaks to job-cutting corporations like Kimberly-Clark.
https://www.dailykos.com/stories/2018/2/4/1738322/-Kimberly-Clark-Uses-GOP-Tax-Break-to-Sucker-Punch-Wisconsin-Workers?detail=emaildkre
Trash's infamous "white working class" voters were LIED TO by anit-LABOR Trash, and now they're ed bad
Wakanda isn't enough?
Disney is using 'tax cut bonus' to try to force union workers to accept low pay
Disney got some positive press for saying it would give its workers a $1,000 tax cut bonus—but it’s using the bonus to try to force some of its lower-paid workers to accept a bad deal at the bargaining table.
The entertainment giant carefully specified that the bonuses would go to union workers “currently working under existing union contracts”—and that doesn’t apply to everyone.
They say rank-and-file workers in December voted 93% against Disney's most recent offer of ahttps://www.dailykos.com/stories/201...accept-low-pay
50-cent-an-hour raise over the next two years,
coupled with a $200 signing bonus.
Most unionized Disney World employees make less than $11 an hour, according to the union.
Only 3,000 make more than $15 an hour.
The union says the average hourly wage for its members is $10.71.
Eric Clinton, president of the Unite Here local at the theme park, said Disney is forcing the union to accept that same rejected offer for its members to receive the $1,000 bonus due to other Disney employees. [...]
He said the union has filed an unfair labor practice complaint alleging that the demand amounts to punishing members for engaging in legally protected contract negotiations.
Union workers want Disney to pay their $1,000 tax cut bonuses
"In other words Disney said you can have $1,000 if you agree to stay poor,"
http://money.cnn.com/2018/02/20/news/companies/disney-world-union-workers-tax-reform-bonus/index.html
'This is not normal': Glitches mar new tax law
The glitches in the new tax law are starting to pile up.
One inadvertently denies restaurants, retailers and others generous new write-offs for things like remodeling.
Another would allow wealthy money managers to sidestep a crackdown on lucrative tax breaks that allows them to pay lower taxes on some of their income than ordinary wage earners. A third creates two different start dates for new rules that make it harder for businesses to shave their tax bills.
There are dozens of other snafus, hitting everything from real estate investments to multinational corporations to farmers.
It’s hardly surprising there would be bugs in the sprawling new law H.R. 1 (115), but some experts say the sheer number is unusual, and blame the breakneck pace at which the legislation was pushed through Congress.
“This is not normal,” said Marty Sullivan, chief economist at the nonpartisan Tax Analysts.
“There’s always this kind of stuff, but the order of magnitude is entirely different.”
Some of the glitches are simple drafting errors.
Others would have unintended consequences.
Still others are things in the law that aren’t clear.
One snafu, which could potentially affect President Donald Trump’s real estate business, prevents people making various types of improvements to non-residential real estate from immediately deducting their entire cost, as lawmakers intended.
An apparent typo means they have to instead take those breaks piecemeal over the next 39 years.
That is already squeezing some companies’ finances, said Rac e Bernstein, tax counsel at the National Retail Federation.
“There are real economic implications right now,”
Another bug may allow hedge funds, private equity firms and others to dodge a crackdown on the rules surrounding so-called carried interest
by taking advantage of a vague reference in the law excusing corporations from the new rules.
Lawmakers appear to have meant C corporations like Apple or Ford, but
lawyers say it could also excuse S corporations, which could be easily used to duck the restrictions.
Another glitch allows people investing in real estate to claim a new deduction for pass-through income – but only if they own real estate stocks directly.
If they own them through mutual funds, as many Americans do, they don’t qualify for the break.
Other things are unclear like the law’s new minimum tax on multinational companies’ foreign earnings, which has tax experts jousting in tax journals and elsewhere over what exactly is subject to the levy.
Another provision, which Republicans say they are eager to address,
could allow farmers who sell grain to cooperatives to avoid taxes entirely.
Though that’s been dubbed the “grain glitch,” it was included in the legislation at the insistence of multiple senators despite warnings of its implications.
https://www.politico.com/story/2018/...hes-gop-423434
Repug governance! What's Not To Ridicule?
Repugs' overriding objective was to cut taxes for the oligarchy, and the details. In fact, Repugs ing up their laws is part of their strategy to up govt, and make people hate govt.
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