Will Tax Breaks For Corporate Abusers End?
During the election spitfire, Barack Obama said that he would “end tax breaks for corporations that ship jobs overseas” while firing at John McCain for refusing to condemn such loopholes. That is now part of history. Yet, the truth remains that Barack Obama was right on target with this issue. While Republicans were in office, little to nothing was done to right the wrongs done to the American people since the prior Bush Administration and the Clinton Administration. Politicians continue in their incestuous escapades with corporate multinationals including central bankers and investment community. Employment is no longer about bolstering nations even for benefit of the corporate oligarchy, but about the largess of corporations that ransack the globe to sustain themselves. President Obama proposed the idea of change during the election, but did America hear him or care about what he said? Are American voters willing to hold presidential candidates immediately responsible for correcting the blunders that continue to economically decimate our country?
During the election, President Obama was not precise about how he would alter the rules other than to say he would end “permanent deferral” of income abroad. So far, this isn’t on his radar, yet is just as important as health care for the American people. Even so, even during the election, job offshoring was not mentioned among important policies or on their campaign websites. Our venerable politicians have resisted correcting tax law since 1991 on corporate bodies leaving huge gaps available for rampant abuse. Multinational business simply fills the gaps left by government regulation. As a result, the abuse and lack of policy continues unabated. What politicians are receiving from leaving the policy holes are questionable. What the U.S. economy is losing is immense, no less than the greenbacks that the U.S. economy sends overseas for oil every year to the tune of billions.
Blaming the corporate ideal of free trade and business leaders alone for the present situation of American workers is misplaced. American politicians, ill-conceived government regulations and lack of foresight along with the willingness to make sound adjustments are responsible for nearly all of the job losses the United States has seen over the last decade.
Politicians are afraid of losing revenue, yet they continue to export revenue in wholesale fashion by allowing loopholes and abuses to continue. The declining economy has resulted in huge tax losses as well. Meanwhile, corporations and individuals of wealth send billions tax-free to offshore havens in the Cayman Islands, Switzerland and other various outlets because of lack of restrictions in doing so. President Obama said that he would consider a reduction in the corporate tax rate as long as it could be done without losing revenue. Concerns about the short-term loss of revenue is short-sighted at best. Further, a reduction in the corporate tax rate would have little, if any effect in reducing the offshoring of U.S. jobs from our nation. A process known as earnings stripping through “corporate inversions” is largely at fault.
Because of this fear along with any benefits that politicians can glean from the corporate world, multinational corporations send untold billions legally overseas as they manipulate open-ended tax law while exploiting the masses here and abroad. The nation has passed a financial crossroads. Further inaction will further erode the national economy while giving others more power in the name of “political revenue.” If politicians continue to delay, the exportation of the nation’s most valuable resources will render this economy incapable of recovering or restoring what is being lost in any sense. Bankers are part of the problem as much as part of the solution since they have as much to gain or to lose as multinational corporations. Will politicians do what is required to repair the systemic abuse? Only when the American electorate and citizens hold politicians accountable for the wholesale rape of our economy through poorly designed law, banking abuse and multinational profiteering can this country hope to be made whole. Politicians are betting that you aren’t smart enough to know the difference if they remember themselves. ~ E. Manning