A Black Agenda Radio commentary by Glen Ford
President Obama would permanently reduce corporate tax rates, but claims he’ll get even more taxes from companies by closing loopholes. Even if you believe this fantasy, there’s nothing in it for the 99 percent, since “the president has already stated that the additional revenue will go right back into corporate pockets, in the form of new or existing tax breaks.” Have a happy billion dollar election year.
Obama’s Corporate Tax Scam
A Black Agenda Radio commentary by Glen Ford
“Hardly anyone outside the administration believes that the Obama plan will wind up collecting more corporate taxes than it gives away.”
Barack Obama can’t hide the fact that he is the One Percent’s president. Most of what he is dangling for the rest of us this election year turns out to be smoke and mirrors, yet he offers corporations a huge tax rate reduction – a gift that will keep on giving long after Obama is gone. It is typical Obama behavior. He sprinkles his speeches with phrases that mimic Occupy Wall Street, then turns around and promises the One Percent a bigger prize than George Bush could deliver.
Obama wants to lower the nominal corporate tax rate form 35 percent to 28 percent
Obama claims he will extract even more tax money from the corporations by doing away with loopholes. There is absolutely no reason whatsoever to believe that. The administration has no plans to revise the U.S. tax code any time soon.
Private studies show the average company pays an effective tax rate of substantially less than 20 percent, and a government study showed that more than half of American companies paid no taxes at all in at least one out of seven years.
“Corporations only account for ten percent of the money the U.S. government takes in per year.”
Back in the Fifties, corporate taxes made up 28 percent of government revenues. In the Sixties, the corporate share was 21 percent of each dollar of taxes. Today, corporations only account for ten percent of the money the U.S. government takes in per year. In other words, they have never had it so good.
Hardly anyone outside the administration believes that the Obama plan will wind up collecting more corporate taxes than it gives away. The grassroots National People’s Action projects that permanently lowering the tax rate will cost the federal government $700 billion
Even in the highly unlikely event that the Obama plan winds up collecting more tax money through closing down corporate loopholes, the president has already stated that the additional revenue will go right back into corporate pockets, in the form of new or existing tax breaks for favored industries, in manufacturing, clean energy, and research. This, of course, would be the biggest loophole of all. Under a Democratic or Republican administration, every corporation would claim to be a manufacturer, or to be doing research. And, President Obama can’t say the word “coal” without also saying “clean” – so that dirty industry would get tax breaks, too.
Obama's whole plan is a tax giveaway, not a tax reform. And, that's the point. It's a billion dollar election year. Corporations need to know what kind of government their campaign contributions are buying.
For Black Agenda Radio, I'm Glen Ford. On the web, go to BlackAgendaReport.com.
BAR executive editor Glen Ford can be contacted at Glen.Ford@BlackAgendaReport.com .
An abolitionist frame of thought is a rebirth, a spiritual process, a painful undertaking, and an ancestral conjuring for Black and brown people.
Looting and rioting appear as immediately effective tactics in the struggle against whiteness, property and the police.
Weapons are flowing to pro-regime gangsters suspected of assassinating opponents of the US-backed regime.
We must instead think creatively about how to either take total community control of law enforcement as an institution or to bring about an independent, nation-building, self-governing reality.
It’s Cowboys and Indians updated: a wicked game where Black people are seen as predators but almost always end up prey.
