The Tax Evasion Double Standard: How US CEOs Are Withholding Revenue by Thom Hartmann
If I refused to pay any taxes until the US government lowered my taxes to a so-called “fair rate,” I’d almost certainly be arrested for tax evasion. But when The Washington Post asked Apple CEO Tim Cook about the billions that his company has stashed in tax havens around the world, Cook declared: “We’re not going to bring it back until there’s a fair rate. There’s no debate about it.”
It’s up to us, we the people, if we want to save life on earth and build a better world for all. The 1% cannot and will not save us. They are afflicted with the deadly greed disease. The two major parties will not save us, the police and military will not save us; they are all owned and their power usurped by the 1%. We cannot unite under the banner of resistance groups with a great leader anymore. They will out our leaders just like they took out such people as John F. Kennedy, Martin Luther King, Malcolm X and others who take a stand for people.
We cannot have a violent revolution to set things right. When we resist violently to bring justice the 1% will use police and military power against us with deadly force. The 1% can’t help it, they are drugged with greed for power and wealth. They have indoctrinated our kids in schools to become good sycophants to their cause. Get smart, get a good job with their corporations and get ahead of everybody else. Students are trained to become good employees for the corporations owned by the 1%. Liberal arts have been denigrated. The game is to win. That is all that matters, compete and beat, that is what our world has become.
Let’s meditate on this a bit. Look where it has gotten us. We are in constant wars, our planet has been brought to the point of total destruction and disaster. Our air is polluted, our lakes, rivers and now the oceans are polluted and dying, all for their profit. We have created all kinds of technological developments. Every time something good is invented that can benefit people, they turn it around and use it against us and their other so-called enemies.
From the 1%’s viewpoint everything is positive and wonderful. They own over 50% of the wealth and can live in luxury. They can buy anything they want including our police, our military, our judiciary, our Congress and the executive branch. The rest of us do not matter. If we are not a consumer of their products or serve in their employment we are useless humanity. What happens to us doesn’t matter.
Okay, I’ve spelled it out; our world is in the deadly grip of the 1%. So what can we do about it? We must recognize and utilize our own power. Without us to do their work and consume their products the 1% is helpless and their power is broken. That’s it, we must break their power and build alternative sources to fill our needs. That’s what the capitalists did to conquer the feudal age. They built alternatives and made nobles superfluous. Now it is their turn to be replaced since they exploit rather than serve us.
Like I said, at this point we can’t organize groups to take corrective action. They will take out our leaders and come down with deadly force. Look at what happens in the rest of the world. When people in other countries try to organize and throw off the outside yoke of imperialism, drones take out their leaders, their citizens are bombed to hell and we buy their BS that they have taken out “the enemy.”
What can we do to change all of this? As organized groups, not much at this time, because of their deadly force. We must first break their power. We each must take personal responsibility. Start dealing with local folks to fill our needs. Get out of debt and quit borrowing money from their banks and credit cards. Buy from local farmers and merchants, who are there mainly to fill needs and make a living rather than huge profits. Get yourself a small piece of ground or use your backyard to start growing more food. Quit wasting your backyard on grass for appearances. Learn how to preserve food for the off seasons. If you have no need to grow food, do it anyway to learn how and to help others trapped in landlord-owned apartments. What you don’t need, give it away to help others become independent of the big corporations. Food and shelter are the first two basics. If we have these without having to depend on the big corporations, that is the path to freedom. If we work for a corporation that is exploiting others, making killing machines, or polluting our world, try to get away from them as quickly as you can. If we work at making their products to kill others, or destroy our environment we are part of the problem. It doesn’t make any difference how much money we make as a sycophant to them; it is not worth it if we are helping to bring death to life on earth. We really don’t need all this stuff they sucker us into buying with their advertising. If we can get an acre of this good Earth, feed ourselves and start rebuilding the soil, we become independent. If nothing else, use our backyards or sack-bags of dirt to grow vegetables. Treat land as sacred, it is here for all life.
We must demand that the UN has the power to hold war makers and those who abuse others to account. If we can’t make the UN do its duty, we must organize an international People’s Tribunal that will take action to hold war makers and polluters accountable. In the future we must settle our conflicts by law and courts rather than war.
We are better off when we cooperate and share rather than compete and beat. The state does not give life, therefore; the state does not have the right to take life. Let’s discipline ourselves and cut down on the world’s population explosion. Once we have broken the power of the 1%, we must change the system to register all people of legal age to vote regardless of circumstances. We must set up term limits and public financing for elections. Those people and corporations who utilize our public airways shall be required to dedicate 20% of each broadcast timeslot for 30 days prior to elections, as a royalty due the people, to be used by qualified registered candidates.
We shall create a world based on laws that bring justice for all. We shall develop an international power to hold war makers and exploiters to account. We start by taking individual responsibility, withdrawing our support and cease cooperating in their deadly game of destruction for profit. Resources of this earth are here for all life and not just for a few rich grabbers who take more than their share. Why should one person accumulate enough for 1000 lifetimes and 1000 families go hungry? Let’s start thinking about what personal action we can take. It is with our combined personal action that we shall end their power. We must stop allowing them to use people against each other. With life on earth we are all in the same boat, so let’s start bailing, even if we have but a thimble to use.
Imagine living in a relatively small nation, where per capita income is $11,000 less than in Washington state, and the only natural resources are timber, water and ice. People pay a 31 percent tax on personal income in excess of $82,000, a value-added tax of 14 percent on food and restaurants, and 24 percent on most other goods. How could anyone possibly do well there, much less run a business and prosper?
And yet, looking at living conditions — such as education, health care, quality of life, economic dynamism and political environment — this nation actually does much better than we’re doing in the U.S. Fewer people are poor, and more people there live longer, are more productive, and are … well, happier.
This place isn’t Arendelle of the movie “Frozen.” It’s Finland. Finland has a highly industrialized, largely free-market economy. The conservative Heritage Foundation rates Finland and the U.S. 74th and 76th, respectively, in terms of “economic freedom.”
In Washington state, our per capita income is close to $50,000 per resident. By that measure, we’re a rich state. But we’re underfunding our schools from pre-K through higher education; too many people are homeless, while many more face stagnating incomes and diminishing public services; and we’re all facing more uncertain economic futures.
So how do the Finnish people prosper with so much less, ostensibly, than we have? The answer is, they make shared investments to build their kids, families and communities.
Look at the economy in terms of peoples’ lives: When a baby is born in Finland, the family gets a baby box with clothes, diapers, bedding, towels, a picture book, a teething toy and other items. Paid family leave kicks in for at least a year, at 80 percent compensation with a guarantee you can return to your job. When mom or dad decides to go back to work, the cost of day care is subsidized so the maximum monthly payment is $322.
As kids grow up, their parents can devote real time to them. Every worker gets five weeks vacation, and the family budget is enhanced with a monthly stipend of $110 for the first child. The stipend increases with each child, so the stipend for the fifth child is almost $200. Pre-kindergarten is universal and free for all children. Schools provide meals for all children. In school, children are immersed in a system focused on creativity, teacher and student autonomy, foreign languages, math and music. No surprise: 15-year-old Finns are the top in the world in education. And when a student goes to technical college or the university, there is no tuition. Instead, the student gets a living allowance!
The Finnish health care system covers everyone. A friend of mine recently had surgery which required two nights in the hospital. His total bill: $103.74, inclusive of surgery, hospitalization, care and medicines!
In retirement, people receive about 55 percent of their average earnings along with a $560 monthly housing allowance. The average pension, including the housing allowance, comes to about $29,000 a year. Full pensions start at age 63. It’s guaranteed, like our Social Security, so the Finns don’t have to worry and hope that their 401(k) performs well. They don’t need 401(k)s! How is this financed? The Finns pay 5.7 percent of their wages into the pension system, and 7.2 percent after age 53. Compare that to our 6.2 percent tax for our Social Security. Employers pay more: 23 percent.
So sure, taxes are higher in Finland. But it’s a shared investment the Finns use to build their economy. The Finns have figured out that once you provide a universal platform of educational opportunity and health and social security, then businesses can just focus on doing business, being innovative, creating new products and systems.
That is what the Finns do. It has a dynamic private sector, ranked third in the world by Grant Thornton accounting (the U.S. is ranked 12th). There are double the number of small and medium enterprises per 1,000 people in Finland compared to the U.S.
And the Finnish people don’t have to scrimp to pay $1,500 a month for child care, worry about how to take time off from work when they have a child, wonder how to pay $12,000 yearly tuition for a public university tuition, or risk bankruptcy in a medical emergency, or wonder about having enough to eat when they retire.
That means that they can grasp their future with hope. Can we?
Originally published at the Everett Herald
I recently purchased a T-shirt from the Boeing store for my daughter, who is fan of the 737. It says, “If it’s not Boeing, I’m not going!” That may be true for her — but Boeing jobs are certainly on their way out of Washington.
How can this be? The Legislature met for a three-day special session in the fall of 2013, specifically to put in special tax breaks for the aerospace giant. That bill, sponsored by state Rep. Reuven Carlyle, D-Seattle,and state Sen. Andy Hill, R-Redmond, was introduced one day, had one hearing in the House, one in the Senate and passed the next day.
Those tax breaks work out to about $550 million a year. Since they were made law, Boeing has moved 3,600 jobs out of our state. That makes the recent news about the company avoiding $20 million in sales taxes last year an especially bitter pill.
Boeing jobs are going to California, Oklahoma, Pennsylvania, Missouri and South Carolina — but apparently not for the tax breaks in those states. The first three on that list have no special tax breaks for the company. Missouri‘s tax break amounts to $229 million over ten years, and requires Boeing to create 2,000 jobs to get it. South Carolina’s tax deal totals $1 billion, and requires the company to produce 5,800 jobs in that state.
Washington’s deal looks like gross largesse by comparison: a total of $12 billion in tax breaks since 2003 — with no requirement for new jobs, or even keeping existing jobs here! (Meanwhile, Boeing is developing a new finishing plant for the 737 in China.) If the Legislature had tied its tax “carrot” to jobs, we could have created up to 11,000 median wage jobs here. That would have been a fair trade.
Our legislators can fix what’s gone wrong. In fact, Reps. June Robinson, D-Everett, Mike Sells, D-Everett and Luis Moscoso, D-Mountlake Terrace, have proposed legislation to tie tax breaks to jobs. House Bill 2147 would reduce Boeing’s tax breaks by increments for every drop in Boeing employment, starting with a baseline of 83,295 workers. That was Boeing’s Washington workforce when the tax breaks were passed. If Boeing shed 5,000 workers, then the tax break would dry up completely. The House Finance Committee gave this bill one hearing, and then sat on it.
Rep. Mia Gregerson, D-SeaTac, Robinson, Sells, Moscoso, Lillian Ortiz-Self, D-Mukilteo, Strom Peterson, D-Edmonds, and Derek Stanford, D-Bothell, have sponsored a bill to require aerospace companies taking advantage of the tax incentives to pay workers who have worked for them for three years at least 80 percent of the state’s median wage (about $16 an hour) by 2016, 90 percent by 2017, and 100 percent by 2018. The House Labor Committee passed this bill. From there, it went to the House Finance Committee, where again, nothing happened.
In January, state lawmakers will return to Olympia. Then those failures of legislative courage can be reversed by ensuring that the billion dollar aerospace tax breaks are tied to keeping good paying jobs right here in Washington.
Boeing ended its first quarter with a $9.6 billion cash cushion, after repurchasing 17 million shares for $2.5 billion and raising dividends by about 25 percent compared with a year ago. So Monday’s news about the $20 million Washington lost in sales tax revenue to the company looks like small potatoes.
But it’s a big deal for foster kids whose case managers are overstressed and overworked, trying to keep up with a workload that violates standards of care (and basic humanity). $20 million would enable our state to recruit and pay enough social workers to care for, protect and develop a pathway of hope and opportunity for these foster kids.
Those 32,000 students can’t get state financial aid even though they qualify, because legislators cut State Need Grant funding. $20 million would put college within reach for thousands of these students.
Those are just two of many examples. So what will it be when the Legislature convenes next month? Lumps of coal for those with the least, and billions of dollars for those with the most? Or will we recognize that giving tax dollars to a corporation that is shifting jobs out of our state is not a smart investment?
Originally published at the Everett Herald
But they protected the unfairly low taxes that the rich people enjoy in Washington State.