“Of Course Our Tax Code Sucks, They Like It That Way” an essay by Brian @FG

Today’s Guest Saturday post comes to us from Brian at the Frankenstein Government blog. Brian is a tad upset that some big corporations don’t pay taxes. He originally published his essay on October 27, 2012.

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Of Course Our Tax Code Sucks, They Like It That Way

Congress writes the tax code. It is beyond complex and simply ridiculous. It hoses the middle class because we don’t make enough to qualify for big exemptions and loopholes.

I kind of giggle when I hear people talk about the mortgage deduction. At 4% interest- I am far below the standard deduction for a single taxpayer.

It has been that way for years. It doesn’t change because Congress and their cronies- like it just the way it is. Check out this list of government assisted tax dodgers. Don’t expect it to change with Obama or Romney in. It won’t.
I don’t call these tax dodgers- tax cheats per se- because Congress created these loopholes for their benefit. I am trying to fact check this list…so don’t take it for gospel although some items seem very accurate-like the GE returns…
1). 1. Bank of America CEO Brian Moynihan
Amount of federal income taxes paid in 2010? Zero. $1.9 billion tax refund.
Taxpayer Bailout from the Federal Reserve and the Treasury Department? Over $1.3 trillion. Amount of federal income taxes Bank of America would have owed if offshore tax havens were eliminated? $2.6 billion.
2). Goldman Sachs CEO Lloyd Blankfein                                                                   Amount of federal income taxes paid in 2008? Zero. $278 million tax refund.
Taxpayer Bailout from the Federal Reserve and the Treasury Department? $824 billion. Amount of federal income taxes Goldman Sachs would have owed if offshore tax havens were eliminated? $2.7 billion.
3). JP Morgan Chase CEO James Dimon                                                                    Taxpayer Bailout from the Federal Reserve and the Treasury Department? $416 billion. Amount of federal income taxes JP Morgan Chase would have owed if offshore tax havens were eliminated? $4.9 billion.
4). General Electric CEO Jeffrey Immelt
Amount of federal income taxes paid in 2010? Zero. $3.3 billion tax refund.
Taxpayer Bailout from the Federal Reserve? $16 billion.
Jobs Shipped Overseas? At least 25,000 since 2001.
5). Verizon CEO Lowell McAdam
Amount of federal income taxes paid in 2010? Zero. $705 million tax refund.
American Jobs Cut in 2010? In 2010, Verizon announced 13,000 job cuts, the third highest corporate layoff total that year.
6). Boeing CEO James McNerney, Jr.
Amount of federal income taxes paid in 2010? None. $124 million tax refund.
American Jobs Shipped overseas? Over 57,000. Amount of Corporate Welfare? At least $58 billion.
7). Microsoft CEO Steve Ballmer
Amount of federal income taxes Microsoft would have owed if offshore tax havens were eliminated? $19.4 billion.
8). Honeywell International CEO David Cote
Amount of federal income taxes paid from 2008-2010? Zero. $34 million tax refund.
9). Corning CEO Wendell Weeks
Amount of federal income taxes paid from 2008-2010? Zero. $4 million tax refund.
10). Time Warner CEO Glenn Britt
Amount of federal income taxes paid in 2008? Zero. $74 million tax refund.
11). Merck CEO Kenneth Frazier
Amount of federal income taxes paid in 2009? Zero. $55 million tax refund.
12). Deere & Company CEO Samuel Allen
Amount of federal income taxes paid in 2009? Zero. $1 million tax refund.
13). Marsh & McLennan Companies CEO Brian Duperreault
Amount of federal income taxes paid in 2010? Zero. $90 million refund.
14). Qualcomm CEO Paul Jacobs
Amount of federal income taxes Qualcomm would have owed if offshore tax havens were eliminated? $4.7 billion.
15). Tenneco CEO Gregg Sherill
Amount of federal income taxes Tenneco would have owed if offshore tax havens were eliminated? $269 million.
16). Express Scripts CEO George Paz
Amount of federal income taxes Express Scripts would have owed if offshore tax havens were eliminated? $20 million.
17). Caesars Entertainment CEO Gary Loveman
Amount of federal income taxes Caesars Entertainment would have owed if offshore tax havens were eliminated? $9 million.
18). R.R. Donnelly & Sons CEO Thomas Quinlan III
Amount of federal income taxes paid in 2008? Zero. $49 million tax refund.
Eighteen of the 80 CEOs who signed the call for deficit action are actually some of the biggest outsourcers and tax cheats in America. First, they crashed the economy in 2008. They followed that up by taking billions in taxpayer bailout dollars. Their next step was to outsource jobs and evade taxes. Now they are calling for action on a deficit that they helped create over the past four years.
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6 thoughts on ““Of Course Our Tax Code Sucks, They Like It That Way” an essay by Brian @FG

  1. It’s a pay for play government. Legislators churn out dense bureaucratic sludge and build walls out of it. They then sell exemptions to the highest bidders and drill holes in the walls for those with enough money. It is a multi-billion dollar scam.

  2. The tax code is the go-to method of linking big business with government… creating cronyism. That is the thing that has got to change. People whine about lobbying, but when government is willing to hand out advantages, to do favors, people are fools if they don’t play the game. Who can play it? Only the very richest corporations that have the revenue to buy the politicians who’ll do them the favors. Tax simplification, via a flat tax or a “fair tax” (I prefer flat tax) will put a big dent in the corruption and money wasted on lobbying in Washington. And… That’s why they won’t do it.

  3. Having just spent the dat with the final prep…it sucks! Our tax code needs to be the same size as our constitution.

  4. Let me try to put this into a different perspective. Brian wrote, “Eighteen of the 80 CEOs who signed the call for deficit action are actually some of the biggest outsourcers and tax cheats in America.” I submit these two propositions for consideration: first, these executives aren’t cheating if the government allows them to shelter income. Second, if there was any way I could legally avoid paying taxes, I would.

    What taxes do for us is guarantee unfettered spending by a feckless Congress and Executive Branch. I support lower taxes and debt ceiling because I want government to curtail rampant spending. I honestly don’t see why this is so hard for politicians to understand. As individuals and families, our spending is limited by our income; by our ability to repay debt. Government imposes no such limitations on itself. Of course, it all begins to make perfect sense when we learn that Chris Dodd and Barney Frank accepted kickbacks from the rich cats they were supposed to be supervising. No one is more corrupt in the present congress than Nancy Pelosi … Well, maybe besides Harry Reid.

    Enough is enough.

    1. I snatched the comment from another blog. I agree with everything you have stated. Our tax code is so ridiculous that nobody could even conceive such a thing.

      Remember this- people make things as confusing as possible in order to steal from others. Think of the complexity of our tax code and then bank “derivatives” which most scholars can’t even explain. They are just vehicles for committing theft from those who don’t understand them and can’t take advantage of them.

  5. Corporations shouldn’t have to pay any taxes, at all. Taxes are just another cost passed on to consumers. That’s where all the burden lies. The Fair Tax takes care of that, except at the state level. At the state and local level, leave the real estate and sales taxes to finance the schools and local governments.

    Pat and the others have it right. The tax code is structured, repeatedly, as a reward mechanism for those companies who play footsie with the right politicians. GE is an egregious example, and I am sure they can list dozens more.

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