Leave it to the corporatist tax attorneys, re-incorporating a company overseas in order to reduce the tax burden on income earned abroad, by having a foreign company buy its current operations. The foreign company then owns assets, and the old incorporation dissolves, so goes the strategy of corporate inversion relocation. This Corporate Tax Shell Game, practiced with keen enthusiasm by world-class tax evaders and administered through their legions of CPA accountants, all rely upon a tax code designed to drive business overseas. Professor Kenneth P. Thomas cites the latest trend.
Quite a stir occurred with the academic presentation, How Technology Is Destroying Jobs, by Brynjolfsson, a professor at the MIT Sloan School of Management, and his collaborator and coauthor Andrew McAfee. Both “have been arguing for the last year and a half that impressive advances in computer technology—from improved industrial robotics to automated translation services—are largely behind the sluggish employment growth of the last 10 to 15 years. Even more ominous for workers, the MIT academics foresee dismal prospects for many types of jobs as these powerful new technologies are increasingly adopted not only in manufacturing, clerical, and retail work but in professions such as law, financial services, education, and medicine.”
During the 1990’s the conventional economic wisdom supported the repeal of Glass-Steagall. However, “10 years later, the end of Glass-Steagall has been blamed by some for many of the problems that led to last fall’s (2008) financial crisis. While the majority of problems that occurred centered mostly on the pure-play investment banks like Lehman Brothers, the huge banks born out of the revocation of Glass-Steagall, especially Citigroup, and the insurance companies that were allowed to deal in securities, like the American International Group, would not have run into trouble had the law still been in place.”
No one has ever claimed that the financial markets are a level playing field. Equities, bonds, currencies, options and futures are not arenas that operate by equivalent standards for all parties. Great fortunes were built not by chance, but on superior information, known to the few. Professional traders are not risk gamblers, but operate on the premise of special advantage. Through advance and proprietary techniques that reduce exposure hazards and provide exclusive head start triggers, which virtually guarantee profits, the elite firms dominate Wall Street.
Record US corporate profits are the beneficiary of easy money, near zero interest rates and monopolist aided government tax policies. The upward surge in earnings since the depths of the financial collapse proves one incontrovertible fact; namely, tax regulations, implemented to aid favorite companies, is the operational model of the corporatist economy. Americans for tax fairness for 2013 report on 10 Companies and Their Tax Loopholes. Included in this examination on Bank of America, Citigroup, ExxonMobil, FedEx, General Electric, Honeywell, Merck, Microsoft, Pfizer and Verizon, indicated “corporations have stepped into the fray with some of the most aggressive lobbying we’ve seen in years – calling for cuts to corporate tax rates, a widening of offshore tax loopholes.”
As the deadline for filing yearly income taxes is rapidly approaching, businesses especially hard pressed to make a profit in a depressed economy struggle with their tax compliance. Reporting legitimate deductions and costs is the easy part. When you are losing money, disclosing a diminished income stream based upon lower margins, is not a difficult decision. Nevertheless, small enterprises burdened with government regulation costs and tax obligations, often are unable to conduct business and retain a net return. Self-proprietorships frequently are so scared that many look to the cash underground economy to hide income earnings.
It should be obvious that the recent putsch and regime change in the Ukraine inspired and backed by the U.S. shadow government, benefits the international banksters. For the average EU resident, only further economic displacement and diminished prospects can be expected from any inclusion of Ukraine into the EU dictatorial structure. Not so, for the corporatists who expects expanded opportunities as Consortium News analyzes agricultural and energy companies recent involvement within the Ukraine.
The vast gulf between corporate economic interests and political gamesmanship is vividly made clear with the calls for sanctions against Russia. Now that the Crimea referendum has resulted in a ninety-six plus desire to join the Russian Federation, the politico chess players in the West are eager to make Putin suffer. Former Soviet chess master Garry Kasparov, anti-Putin critic and activist said, “even if the West doesn’t want to be in a fight with Russia, Putin has already decided to start one.”
Debt is everywhere but it just does not seem to matter. Thanks to the folks at Zero Hedge, you get the account Global Debt Crosses $100 Trillion, Rises By $30 Trillion Since 2007; $27 Trillion Is “Foreign-Held” – “Total global debt has exploded by 40% in just 6 short years from 2007 to 2013, from “only” $70 trillion to over $100 trillion as of mid-2013, according to the BIS’ just-released quarterly review”. They make this assessment:
When Major General Smedley Butler made his case,”War is a Racket” he did not pull any punches. “The normal profits of a business concern in the United States are six, eight, ten, and sometimes twelve percent. But war-time profits – ah! That is another matter – twenty, sixty, one hundred, three hundred, and even eighteen hundred per cent – the sky is the limit. All that traffic will bear. Uncle Sam has the money. Let’s get it.” The business of military procurement has multiplied since his fateful revelations.
Economic illiteracy is a hallmark of most political policies. The prime example of this principle is the idiocy out of the Obama administration that maintains that the Affordable Care Act is favorable to job seekers. The ranks of progressive euphoria reporting on the joys of Obamacare want to spin the latest Congressional Budget Office’s (CBO) analysis as favorable. As these imbeciles push out their demented dreams for a neo Great Society, the facts of trade and industry need to be buried in order to institute the total welfare state.
Corporatocracy is distinctly the dominate practice when it comes to doing business with the federal government. The once embryonic relationships between favored companies and agency bureaucrats, have germinated into distinctive hybrid organisms. Grafting into self-generating species resistant and virtually immune from pest control methods can be found in every area of government expenditures. The big daddy of cozy dealing is that preverbal military-industrial-security complex.