Friday, May 24, 2013

Bite of the rotten Apple

New unemployment claims fell back dramatically after spiking the week before, this suggests jobs do continue to be created. The Federal Reserve Chairman went before Congress this week and berated them for cutting spending at a time when the economy requires stimulus. The headlines that came out on the corporate media said instead that the Fed was going to 'taper off' the QE3 spending of $85b/month, and that gave the markets a bad day. He didn't really say that of course, he just said they would adjust it down or even up higher depending on the economy.

The Fed came out today with inflation projection numbers far below their goal of 2%, in fact even that number is modest given the quagmire the economy is mired in. So don't look for any 'tapering'. I'll say again for the um-teenth time this not the way to build an economy. We need rational Government policies, on things like trade, or maybe a few trillion to fix all the infrastructure that's been neglected over the past 30 years. Then we wouldn't have Interstate bridges collapse, somewhere Dwight Eisenhower is shaking his head. It was Ike spent trillions in today's dollars to build the National Defense Interstate Highway System. He called hard right conservatives "stupid... and nobody listens to them". Ike probably couldn't imagine that a half witted Hollywood actor would front for those same Conservatives and undo everything Eisenhower stood for.

Matt Drudge had a fit today because Obama "neglected to salute a Marine", no mention that the Commander in Chief shook the Marine's hand and spoke with him instead.  BTW it was Reagan who began the practice of the President saluting his Marine guards, it had been considered bad form for a civilian to do that. But Reagan didn't know any better, Reagan also thought he had liberated the Nazi camps, not just that he had watched the Army film footage that came back to where he was an Signal Corps Officer in the Hollywood film office.

In other Congressional testimony this week it was revealed that the $102b in taxes that Apple is dodging by holding money 'overseas' to avoid paying US income taxes on is not only managed by an Apple subsidiary with its only employees in Reno NV, but the actual cash is in NYC banks.

On paper the money is in Ireland where Apple has no employees, but it does add to the Irish GDP, at least on paper. Ireland's 'recovery' through austerity measures is much touted by the right, but is entirely a fiction based on this sort of 'tax free' corporate transaction, especially by Big Pharma. In real terms, Ireland isn't much better off than Greece.

In fact all of the big US corporations have been doing exactly the same as the rotten Apple is doing, making many trillions here in the US and paying no taxes anywhere. Contrary to the made up 'science and history' of the corporate right, this is not the natural order of things that has existed since the world was created in 4000 BC. This used to be (before Reagan revised history and stopped enforcement) called 'tax evasion', and if you or I did it even now, it would land us in a Federal prison.

The corporations and their network talking heads still lobby for a special law to 'repatriate' these offshore profits 'to America' so that they can take them as dividends while paying little or no taxes. Remember that the money is already here, they can throw it around as an economic weapon against anybody smaller than these behemoths, but they can't take these profits as dividends.

The paid call-in trolls are pushing hard on the idea that corporations don't pay any taxes anyway and that they 'just pass it along to consumers'. If that were true, why do they care what tax rate they pay at all? It shouldn't be an issue for them to pay taxes to maintain the infrastructure that they use, since it doesn't really cost them anything, you know because the consumer pays their taxes. Too bad Trolls don't really live under bridges, squashing a few would be Karmic justice.  Twitter @BruceEnberg  Or scrawl your message on a rusty bridge beam, they need the paint.


Anonymous said...

In the Senate Senator Cruz(R)TX stated he will use the fillibuster to blow up any budget deal by the Senate forcing a debt crisis and default in August or September and possibly crashing the economy. Meanwhile the House Banking Committee is letting Goldman-Sacks and J.P.Morgan write a banking "reform" bill. The congress men and women did correct two gramatical errors in the banks text as their contribution.