Fascism is the union of government with private business against the People.
"To The States, or any one of them, or to any city of The States: Resist much, Obey little; Once unquestioning obedience, at once fully enslaved; Once fully enslaved, no nation, state, city, ever afterward resumes its liberty." from "Caution" by Walt Whitman

Monday, March 24, 2014

"The Other America": 2800 corporations have liquid cash equal to ALL USA Federal Spending for 2013


"Envy and Jealousy? Gag Me With a Silver Spoon"
2014-03-24 by Michael Winship from "Common Dreams" [www.commondreams.org/view/2014/03/24-2]: 
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Open the Books, a new nonprofit working for greater transparency in government spending, reports that between 2000 and 2012, Fortune magazine’s top 100 companies received $1.2 trillion from the feds. And, Aaron CantĂș writes at Alternet.org [http://www.alternet.org/news-amp-politics/new-report-fortune-100-companies-have-received-whopping-12-trillion-corporate], “That doesn’t include all the billions of dollars doled out to housing, auto and banking enterprises in 2008-2009, nor does it include ethanol subsidies to agribusiness or tax breaks for wind turbine makers.”
Investigative journalist David Cay Johnston reports big business hoarding money as if they were hiding cash in a mattress [http://america.aljazeera.com/opinions/2014/3/corporations-cashreservestaxavoidanceoffshore.html]: “Uncle Sam spent $3.5 trillion in fiscal 2013. Corporations hold liquid assets equal to all the money the federal government spent that year plus 2012 and three months of 2011. The total corporate cash reserve… amounts to almost $25,000 per American, up from $13,000 per American in 1994 (again after adjusting for inflation). And this cash is highly concentrated, most of it held by the 2,800 biggest companies, IRS data shows. Since 1994, liquid assets have grown at about six times sales, my analysis of the official data shows. When liquid assets grow six times faster than revenues, it tells you that companies are hoarding cash, not investing or spending."
Richard Rubin at Bloomberg News recently found that [http://www.bloomberg.com/news/2014-03-12/cash-abroad-rises-206-billion-as-apple-to-ibm-avoid-tax.html], “The largest US-based companies added $206 billion to their stockpiles of offshore profits last year, parking earnings in low-tax countries until Congress gives them a reason not to. The multinational companies have accumulated $1.95 trillion outside the US, up 11.8 percent from a year earlier.”
Alan Pyke at the website ThinkProgress adds, “While precise estimates of lost revenue are difficult to make, previous inquiries into profit offshoring found that it cost the US between $30 billion and $90 billion each year during the early and middle 2000s, when the pile of untaxed corporate profits was much smaller. States and localities also lose out on tens of billions of dollars in tax revenue each year to similar offshoring strategies. A recent study found that by closing just one small loophole in state business tax laws, states could bring in a billion dollars in new revenue almost overnight."
Think of the highways, bridges and housing that money could build or repair, and the jobs that could be created, the teachers and tuitions it could provide, the mouths it could feed. Then throw in corporate malfeasance without punishment, gross mismanagement and exorbitant executive salaries — for example, Henrique de Castro, the failed #2 at Yahoo, who’s getting $109 million for his 15 disastrous months there, or about $244,000 per day (h/t to R.J. Eskow [http://www.alternet.org/economy/6-examples-wildly-overpaid-rich-folks-and-teachers-we-could-have-gotten-money]).
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