Monday, August 18, 2014


In the 1950s, corporations paid for about a quarter of total federal spending, but it has generally dropped since, accounting for about a fifth in the 1960s and about 13 percent in the ‘70s. That proportion has seesawed since then and now covers about 7 percent of the country’s bills.

Jamie Dimon, the chief executive of JPMorgan Chase, recently said, “I love America.” Lloyd Blankfein, the chief executive of Goldman Sachs, wrote an opinion article saying, “Investing in America still produces the best return.”
Yet guess who’s behind the recent spate of merger deals in which major United States corporations have renounced their citizenship in search of a lower tax bill? [emphasis mine]   Wall Street banks, led by JPMorgan Chase and Goldman Sachs. …    [“tax inversions” turn patriotism upside down]
These deals are expected to sap the United States Treasury of $19.46 billion over the next decade, according to the Joint Committee on Taxation. And that figure doesn't take into consideration any future inversions. Nor does it account for the possible loss of jobs and revenue that will ostensibly move overseas over time.

 And total tax evasion by corporations is much worse.  A Bloomberg analysis estimated American companies are parking as much as $2 trillion in cash overseas.”

What to do?  If we follow corporate leadership’s logic, it doesn't look good.
Lets start with a premise, A implies B, and B implies A.  If corporations are people, then people are corporations.  So we should all follow their lead and invest ourselves, into foreign entities, so we can all avoid paying taxes, like the big corporations do.   That bankrupts the USA.

Then at the same time the 1% corporates lose their 99% infrastructure—we’re all in the same leaky boat.  At this point the rich can return to their fair to middling support of the common good here in our country, or we can all emigrate to our foreign corporate sites, and leave the U.S. to a whole new wave of more deserving immigrants.
  "Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal.    Mt 6:19
[Port Huron alert -- bad "Float Down" possibilities]

Today's gospel was the story of the rich young man.  Jesus made the invitation, “If you wish to be perfect, go, sell what you have and give to the poor, and you will have treasure in heaven."  Then come, follow me.”   This certainly upends any strategy to invert and evade public responsibility.  What will be our response?  How can we personally, and as a country, better direct the fruits of our labor, and our taxes to serve the common good?

Bloomberg explanatory video for reference on tax inversions - the financial experts are divided.

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