Paying tax – that’s just for little people! Plus a little bit from Albert Einstein!

(9 am.  A little revolution to start your weekend. – promoted by ek hornbeck)

First article, and editorial, from Socialist Appeal:

Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a new report from Congress.

Just in case that didn’t sink in…

Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a new report from Congress.

Wheeeeeeeeeeee!  For the privilage of providing a few jobs for a few workers, and being able in a good number of cases to rake in huge profits, 2/3 of corporations didn’t pay taxes during said time period.  Raise your hands: How many of you paid taxes?

The study by the Government Accountability Office, said about 68%of foreign companies doing business in the U.S. avoided corporate taxes.

This is interesting.  Consider that many of those corporations almost certainly got tax abatements from their local governments.  We ‘repaid’ them for their ‘kindness’ by seeing that they paid no taxes!  Yay!

An outside tax expert, Chris Edwards of the Cato Institute in Washington, said increasing numbers of limited liability corporations and so-called “S” corporations use the fiddle of paying taxes under individual tax codes. “Half of all business income in the United States now ends up going through the individual tax code,” Edwards said.

I wonder if the presumptive Democratic nominee, should he be elected, and what will likely be a Democratic Congress, will close this loophole?

More than 38,000 foreign corporations had no tax liability in 2005 and 1.2 million U.S. companies paidno income tax, the GAO said. Combined, the companies had $2.5 trillion in sales. About 25 percent of the U.S. corporations not paying corporate taxes were considered large corporations, meaning they had at least $250 million in assets or $50 million in receipts.

Think of it!  If they paid 10% on those sales, still a lower rate than most Americans pay on their individual taxes, that’d be $250 billion that would have come in tax wise.  BTW: Notice that 1998-2000 were years that a Democrat was President.

All capitalist firms operating in the USA are completely dependent on public provision of roads and communications, power generation and other infrastructure. Why should the workers pay their taxes in  effect to subsidise their profits?

Hmmm…good question!

Which brings us to Albert Einstein!

Why Socialism? via Socialist Appeal.

Note: This essay was originally published in the first issue of Monthly Review (May 1949).

I’ll let you read what Einstein had to say, but there’s a bit which carries the crux of his writing:

Production is carried on for profit, not for use. There is no provision that all those able and willing to work will always be in a position to find employment; an “army of unemployed” almost always exists. The worker is constantly in fear of losing his job. Since unemployed and poorly paid workers do not provide a profitable market, the production of consumers’ goods is restricted, and great hardship is the consequence. Technological progress frequently results in more unemployment rather than in an easing of the burden of work for all. The profit motive, in conjunction with competition among capitalists, is responsible for an instability in the accumulation and utilization of capital which leads to increasingly severe depressions. Unlimited competition leads to a huge waste of labor, and to that crippling of the social consciousness of individuals which I mentioned before.

Ah, Albert was a pretty sharp cookie sometimes!

So, let’s make a leap and think things through for a moment.  Production is carried on for profit, not use.  Under and unemployed workers don’t provide a profitable market (which is why we developed credit in the manner in which we have).  The profit motive, in the sense of profit for the sake of profit, causes economic hardship.  Many corps don’t pay taxes, thus robbing the various governments of needed funding, and keeping those unpaid taxes as profit, not use, thereby creating more economic hardships for the workers, etc., etc., and so forth.

Man, it sounds like the system is rigged!

As for the two corporate parties (minus a few individuals like Dennis), I think this song covers it pretty well:

Is the Pony/Pie/Hide rating system too cutsie?

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6 comments

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    • Edger on August 15, 2008 at 5:40 am

    I worked in sales for many years, and there is a corollory to “Production is carried on for profit, not use.” that many salespeople know of, even if they don’t put it to words: “Most products are made to be sold. Not to be bought.”

    In other words most products are useless junk made to use to fleece people with.

    For example:

    I believe in the “evil force.” I don’t know exactly how to convince you that it exists, but I believe in it. And I believe the “evil force” is able to get in and move people around and have them do dumb shit. And we are full now of what I call FUDS — these are “fat, ugly, dumb people.” And it’s not that they were not born fat or ugly or dumb, but they have made a choice to be fat, ugly, and dumb. They have made a choice to play the lottery, Christ o’mighty. At an old liquor store where I’ve been going for 30 years (the same liquor store), all the tables that used to be filled with these bottles of Elvis singing that you dump in the Southern Comfort, that’s been pushed aside because all of these video games are there and all these scratch cards are there. I was through there buying my own Southern Comfort a month or so ago and this woman said, “Well which lottery ticket would you like?” I said, “I can’t buy lottery tickets. I’m not allowed to buy lottery tickets.” And the place is full of old people, of people my age, scratching on these things and trying to come up with a lottery ticket. And they all turned and looked and they were all outraged that I should be banned from playing the lottery. And she said, “Well what do you mean?” And I said, “My IQ just isn’t low enough to play the lottery.” What I did was I was in their church and I said, “Bullshit, bullshit is going on.”

    Ken Kesey, “The Psychedelic ’60s: Literary Traditions and Social Change”

    Transript hereVideo here.

  1. “We’ll tell you why”:

    The best part starts at around the 2:30 mark.  “Because we’ve been robbed and cheated long enough!”

  2. The revolution begins tomorrow at 9 PM:

    http://friendlyhostility.com/

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