We call corporations that think about themselves in the community good
citizens.    We call corporations that only think of their little cells,
cancers.    I'm like the American Nation and I have within me some of those
little self absorbent cells.   If allowed to continue I will cease to exist.
Of course those cells fight like hell for their own growth which will end up
killing them as well.   I must say that such malignant thought as expressed
by the energy companies and all of the other business entities that accept
public largess in exchange for jobs and citizenship is beyond me.   They
sign a social contract that they deny.     They have malignant interests
unconnected to the rest of us and their viral ugliness as exposed by Oscar
Wilde and others( in the materials I worked hard to type into the computer
and send to you only to ignored) makes me wonder what I'm doing here when
time is precious. 

 

REH

 

From: [email protected]
[mailto:[email protected]] On Behalf Of Keith Hudson
Sent: Thursday, September 27, 2012 2:18 PM
To: RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION; D & N
Subject: Re: [Futurework] corporations the real moochers

 

At 22:56 26/09/2012,Natalia wrote:




http://dirtdiggersdigest.org/archives/3297

Natalia


Corporations are the Real Moochers




September 20th, 2012 by Phil Mattera 

The firestorm over Mitt Romney's closed-door comments depicting nearly half
the U.S. population as parasites is coming mainly from those defending
seniors, the poor and the disabled. 


Not over the pond it isn't (and I doubt in America also). Romney's nasty
remarks have been condemned by Tory columnists (even by those who are
somewhere near as right-wing as Thatcher) as by Labour and LibDem
journalists. (There's also a very curious relative silence over here by the
right-wing press about the prospects for a Romney victory. They don't like
him.) 




But what's really wrong with the Ayn Rand worldview Romney was parroting is
that it ignores those who are the biggest moochers of all: giant
corporations.


Phil Mattera shouldn't condemn the majority of corporations for the sins of
the relative few which have actually been able to influence the crucial
law-framers and makers. The latter must carry the primary responsibility for
faulty law. Even fewer corporations actually try to break whatever law
exists, whether tax law or any other, because they need a basic framework of
law in order to operate, just like ordinary citizens. On the other hand, no
tax paying body -- whether state government, corporation or individual --
seeks to pay more tax than they need to by law. 

Keith






If, as Romney suggested, moocherism begins with the failure to pay federal
income taxes, then that label can easily be applied to many of the country's
major companies. A November 2011 report
<http://ctj.org/ctjreports/2011/11/corporate_taxpayers_corporate_tax_dodgers
_2008-2010.php>  by Citizens for Tax Justice and the Institute on Taxation
and Economic Policy found that more than one-quarter of large companies paid
zero taxes in at least one of the three years examined.

Quite a few of those companies arranged their affairs so that they had
negative tax rates, meaning that the IRS sends them checks. And many of
those that paid taxes did so at what CTJ and ITEP called "ultra low" rates
of 10 percent or less.

Corporate tax avoidance is just the beginning of the story. The dependence
on government that has Romney so upset is at the heart of the business plan
for much of Corporate America. What libertarian types tend to overlook is
that much of the public spending they disdain comes in the form of purchases
from businesses. It's estimated
<http://money.cnn.com/2012/07/23/news/economy/federal-spending/index.htm>
that more than $500 billion a year in federal outlays occurs via
private-sector contracts.

Some companies rely so heavily on that spending that they are as
government-dependent as any Medicaid or food stamp recipient. Aerospace
giant Lockheed Martin, for example, derives more than 80 percent
<http://www.sec.gov/Archives/edgar/data/936468/000119312512074929/d221578d10
k.htm>  of its revenue from the federal government, especially the Pentagon;
for its competitor Raytheon the figure is about 75 percent
<http://www.sec.gov/Archives/edgar/data/1047122/000104712212000044/rtn-12312
011x10k.htm> .

A large portion of what is called entitlement spending, especially in
healthcare, ends up in the pockets of corporations, including drug makers,
medical device manufacturers and for-profit hospital chains. The largest of
the latter, HCA, gets more than 40 percent
<http://www.sec.gov/Archives/edgar/data/860730/000119312512075882/d264514d10
k.htm#tx264514_8>  of its revenue from Medicare and Medicaid.

Corporations can get federal grants as well as contracts. The Commerce and
Agriculture Departments have a slew of programs that assist businesses in
marketing their products or that underwrite some of their costs. And, of
course, a large portion of the billions paid each year in farm subsidies
goes to agribusiness giants rather than family farmers.

Despite the recent Republican demagoguery on Solyndra, targeted federal
spending to develop new energy technologies is nothing new. The Recovery
Act's billions for solar and wind companies was completely in line with
federal programs that have subsidized everything from coal gasification to
nuclear power plants. Before the Fukushima Daiichi disaster in Japan, the
U.S. government was promoting a loan guarantee program to encourage the
construction of a new generation of nukes by major utility companies.

Giant corporations also depend on the federal government to help them sell
their goods abroad. The Export-Import Bank of the United States spends more
than $30 billion
<http://www.exim.gov/about/reports/ar/2011/fy2011_at_a_glance.pdf>  each
year providing various forms of insurance, loan guarantees and direct loans
for the likes of Boeing, General Electric and Caterpillar. The federal
government's Overseas Private Investment Corporation helps U.S. companies do
more business offshore by providing political risk insurance and other types
of financial assistance.

Another form of corporate dependency on government  is the ability of
natural resources companies to operate on public lands and pay either no
royalties or artificially low ones . Mining corporations, for example, take
advantage
<http://www.earthworksaction.org/issues/detail/general_mining_law_of_1872>
of an 1872 law that allows them to extract gold, silver and other hardrock
minerals from public lands royalty-free.

Assistance from the federal government can be a matter of life and death for
some companies, as in clear in the cases of General Motors and Chrysler as
well as the banks that were brought back from the brink by the TARP bailout
and then thrived on the influx of billions in essentially free money from
the Federal Reserve.

Hearing all the ways in which the federal government makes life easier and
more profitable for big business, a newly arrived Martian might expect giant
corporations to be grateful boosters of the public sphere. Instead, as we
know all too well, most large companies are disdainful of government and are
constantly whining about regulation and taxes they can't avoid paying.

To make things worse, many government-dependent companies are less than
honest when it comes to their dealings with the public sector. The Project
On Government Oversight's Federal Contractor Misconduct Database
<http://www.contractormisconduct.org/>  identifies hundreds of examples of
contract fraud and other offenses. Healthcare providers such as HCA, not
satisfied with the vast amount of honest business they get from Medicare and
Medicaid, have defrauded
<http://www.justice.gov/opa/pr/2003/June/03_civ_386.htm>  taxpayers out of
billions more.

If Romney wants to find the real moochers-and often crooked ones at that-he
can find them in the corporate world that is his natural habitat.
 
<http://www.addtoany.com/share_save#url=http%3A%2F%2Fdirtdiggersdigest.org%2
Farchives%2F3297&title=Corporations%20are%20the%20Real%20Moochers&descriptio
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20depicting%20nearly%20half%20the%20U.S.%20population%20as%20pa> Share

This entry was posted on Thursday, September 20th, 2012 at 5:14 pm and is
filed under Contractor Misconduct
<http://dirtdiggersdigest.org/archives/category/contractor-misconduct> ,
Corporate Crime
<http://dirtdiggersdigest.org/archives/category/corporate-crime> , Corporate
Subsidies
<http://dirtdiggersdigest.org/archives/category/corporate-subsidies> ,
Government contracting
<http://dirtdiggersdigest.org/archives/category/government-contracting> .
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Keith Hudson, Saltford, England http://allisstatus.wordpress.com
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