Friday, April 18, 2008
MAD AS HELL!
Remember the movie of a decade or two ago entitled something like “Broadcast News?” At one point the lead character becomes so fed up with the injustices and the inanities of that business in America that he put his head out the window and yelled, “I’m mad as hell, and I’m not going to take it anymore!” Then everywhere, others joined in a chorus of protest.
For those of us who have recently paid taxes, there are a couple of questions. “Do you feel good about it? Why not?”
The cartoon this past weekend in our major metropolitan newspaper would give some an easy (too easy) answer. It showed our tax dollars put into a trough with a fat tax hog eager to gobble them up. Our problem is that we do not recognize the tax hogs, or the tax cheats, when we see them.
All those honorable people who are educating the kids in schools, as well as the youth in our colleges, have been labeled as tax hogs by that newspaper in other years. Anyone who works for the public is a tax hog in some minds. Yet citizens are most demanding for public services.
We might be happier about paying our taxes if we thought the system was fair. When a super-billionaire like Warren Buffet admits the unfairness of paying a lower tax rate than his secretary, we know the system is loaded on the side of those with wealth versus those who earn a salary or wages. Sometimes it seems that everybody has an opportunity to cheat on his taxes, except the poor guy (or gal) who draws a paycheck.
The GAO (Government Accountability Office) tells us that 61% of American corporations pay no corporate income taxes, and only 39% of the Dow-sized companies pay a tax. Last year corporations shared only 14% of the national tax burden, as compared with 50% in 1940.
This year the tax on individuals is expected to increase from $1.16 trillion to $1.21 trillion, while the corporate tax will decline from $370 billion to $364 billion. By 2013 experts predict that taxes on individuals will rise to $1.84 trillion, while corporate taxes will drop to $327 billion.
KBR, subsidiary of Halliburton and the largest Iraq war contractor, admits to major reductions in tax obligations and to cutting payroll tax payments to Social Security and Medicare by “hundreds of millions” with a Cayman Island shell office. In fact, The GAO says that 24 of the largest federal contractors use Cayman Island accounts to avoid taxes. Why would we allow such?
Now, if you are not ready to open the window and draw that deep breath yet, consider the fact that our major oil companies received $18 billion dollars in tax subsidies which are no longer needed or appropriate (if they ever were).
Are you are mad about gas prices? Perhaps oil and gas people among the few who are not. Add in all those who believe the oil company propaganda, of course, and include those who think gas prices are high because of big taxes or environmental regulations.
Major blame for oil prices goes to the oil cartels that control supplies from the Middle East and other world areas. Crafty oil market speculators are big time problems, leeching money while performing no service.
But do not take the oil companies out of the equation. Record annual profits in the tens of billions do not indicate clean hands. The oil companies are profiteering on the world market conditions at the expense of the people.
According to Malcolm Berko, syndicated business page columnist, Exxon “owns” 29 billion barrels of oil and at $100 a barrel that inventory is worth $2.9 trillion. He says that oil cost Exxon $5.45 per barrel. He goes on to give similar statistics for Chevron and Shell. “Those companies have a profit of over $95 a barrel, and they will fight to maintain that margin and the favorable tax treatments on their enormous profits per barrel,” he says.
This is an election year. There is a chance for the people to be heard, if they open their windows and yell loud enough.
But it will have to be really loud to overcome the decibels coming from the television sets with advertisements paid for by those who profit from favorable political treatment and profiteering advantages.
Dr. Edwin E. Vineyard, AKA The Militant Moderate
For those of us who have recently paid taxes, there are a couple of questions. “Do you feel good about it? Why not?”
The cartoon this past weekend in our major metropolitan newspaper would give some an easy (too easy) answer. It showed our tax dollars put into a trough with a fat tax hog eager to gobble them up. Our problem is that we do not recognize the tax hogs, or the tax cheats, when we see them.
All those honorable people who are educating the kids in schools, as well as the youth in our colleges, have been labeled as tax hogs by that newspaper in other years. Anyone who works for the public is a tax hog in some minds. Yet citizens are most demanding for public services.
We might be happier about paying our taxes if we thought the system was fair. When a super-billionaire like Warren Buffet admits the unfairness of paying a lower tax rate than his secretary, we know the system is loaded on the side of those with wealth versus those who earn a salary or wages. Sometimes it seems that everybody has an opportunity to cheat on his taxes, except the poor guy (or gal) who draws a paycheck.
The GAO (Government Accountability Office) tells us that 61% of American corporations pay no corporate income taxes, and only 39% of the Dow-sized companies pay a tax. Last year corporations shared only 14% of the national tax burden, as compared with 50% in 1940.
This year the tax on individuals is expected to increase from $1.16 trillion to $1.21 trillion, while the corporate tax will decline from $370 billion to $364 billion. By 2013 experts predict that taxes on individuals will rise to $1.84 trillion, while corporate taxes will drop to $327 billion.
KBR, subsidiary of Halliburton and the largest Iraq war contractor, admits to major reductions in tax obligations and to cutting payroll tax payments to Social Security and Medicare by “hundreds of millions” with a Cayman Island shell office. In fact, The GAO says that 24 of the largest federal contractors use Cayman Island accounts to avoid taxes. Why would we allow such?
Now, if you are not ready to open the window and draw that deep breath yet, consider the fact that our major oil companies received $18 billion dollars in tax subsidies which are no longer needed or appropriate (if they ever were).
Are you are mad about gas prices? Perhaps oil and gas people among the few who are not. Add in all those who believe the oil company propaganda, of course, and include those who think gas prices are high because of big taxes or environmental regulations.
Major blame for oil prices goes to the oil cartels that control supplies from the Middle East and other world areas. Crafty oil market speculators are big time problems, leeching money while performing no service.
But do not take the oil companies out of the equation. Record annual profits in the tens of billions do not indicate clean hands. The oil companies are profiteering on the world market conditions at the expense of the people.
According to Malcolm Berko, syndicated business page columnist, Exxon “owns” 29 billion barrels of oil and at $100 a barrel that inventory is worth $2.9 trillion. He says that oil cost Exxon $5.45 per barrel. He goes on to give similar statistics for Chevron and Shell. “Those companies have a profit of over $95 a barrel, and they will fight to maintain that margin and the favorable tax treatments on their enormous profits per barrel,” he says.
This is an election year. There is a chance for the people to be heard, if they open their windows and yell loud enough.
But it will have to be really loud to overcome the decibels coming from the television sets with advertisements paid for by those who profit from favorable political treatment and profiteering advantages.
Dr. Edwin E. Vineyard, AKA The Militant Moderate
