America Panders to The Plutocrats: Apple, Google, Microsoft Avoid Taxes By Keeping Billions In Profits Offshore

America Panders to The Plutocrats: Apple, Google, Microsoft Avoid Taxes By Keeping Billions In Profits Offshore

The Microsoft logo. Microsoft and other companies have been accused of using complicated schemes to avoid paying taxes.

American multinational corporations have something in common with Republican presidential nominee Mitt Romney, aside from being people, too: They both keep a lot of their income overseas to cut their tax bills.

Companies such as Microsoft and Apple quietly dodge billions of dollars in taxes each year with potentially illegal schemes to move their profits offshore, according to a Senate subcommittee report released on Thursday.

"Some multinationals use our current tax system to engage in gimmicks to avoid paying taxes they owe," Sen. Carl Levin (D-Mich.), chairman of the Senate Permanent Subcommittee On Investigations, said in a hearing on Thursday. Levin described "a system used to shift billions of dollars of profit offshore and avoid billions in taxes."

Microsoft, Apple, Google and Hewlett-Packard were among the companies Levin singled out for criticism over their tax-avoidance practices, but they are not alone. Most multinational companies pay a tax rate well below the 35 percent rate mandated by law. Some avoid paying taxes altogether, or even get the government to pay them money. These loopholes cost the U.S. government billions of dollars in revenue that could be used to help close the budget deficit.

Using complex schemes to shift U.S. revenue overseas, Microsoft was able to avoid paying taxes on $21 billion in revenue between 2009 and 2011, amounting to about half its total U.S. sales, according to the subcommittee report. The company avoided paying $4.5 billion in taxes, or about $4 million per day, during that time, according to the report.

Using similar schemes, Levin said, Apple avoided taxes on $34.5 billion between 2009 and 2011, and Google has dodged taxes on $24 billion.

Hewlett-Packard, meanwhile, used a series of constantly revolving short-term loans between itself and its subsidiaries that have helped it avoid paying billions of dollars in taxes since at least 2008, according to Levin. Though he didn't say how much money H-P has avoided paying, Levin did say that H-P has kept billions of dollars in cash offshore -- more than $17 billion in 2010, for example -- that it would then "lend" to its U.S. parent company in a steady stream.

"HP has complied fully with all applicable provisions of the U.S. Internal Revenue Code and auditor Ernst & Young has consistently reviewed and approved the accuracy of HP’s financials," Hewlett-Packard responded in a statement emailed to the Huffington Post. "HP has always had an extremely productive and professional relationship with the IRS, who has permanent offices at two of our facilities and has been continually auditing HP since the filing of our 1962 tax return. They have never raised any concerns about these programs. We are disappointed to see what appears to be a politically motivated attack on one of America’s largest employers.”

Apple and Google did not immediately return requests for comment. A Microsoft representative was scheduled to address the subcommittee later on Thursday.

"In conducting our business at home and abroad, we abide by U.S. and foreign tax laws," Microsoft said in a statement emailed to the Huffington Post. "That is not to say that the rules cannot be improved -- to the contrary, we believe they can and should be. U.S. international tax rules are outdated and not competitive with the tax systems of our major trading partners."

The ranking Republican on the subcommittee, Tom Coburn (R-Okla.), defended the companies, saying they were following the letter of the law to avoid what he called onerous tax rates and an overly complex tax code.

"This is perfectly legal tax avoidance," Coburn said, arguing that the 35 percent corporate tax rate mandated by law is twice that of the average rate around the world. "They take advantage of every loophole we have created in the tax system. There is nothing heinous in that. Nothing illegal in that."

Levin responded that he wasn't sure, but it seemed "highly dubious" that Hewlett-Packard's revolving loan program, for example, "complies with current tax law." He also blamed the IRS for lax enforcement of that law.

Just because something is legal does not mean it is ethical. All of these companies depend on U.S. infrastructure and the U.S. military to create a safe and economically advanced country that makes it possible for these companies to even exist.

Freaky conservative columnist Charles Krauthammer has accused Amb. Susan Rice of totally unfounded misdeeds, FLASHBACK: When Krauthammer Excused Condi Rice For Pushing "Defective" Iraq War Intelligence

The Republican Speaker of the House is clueless, John Boehner(R-OH): No ‘Difference’ If Revenue Comes From Middle Class Or Super Rich

Two Faced Scott Brown (R-MS) Supports Todd Akin's Rape Agenda Even As He Calls On Akin To Quit

Two Faced Scott Brown (R-MS) Supports Todd Akin's Rape Agenda Even As He Calls On Akin To Quit

Scott Brown has donated thousands of dollars to fellow Republican candidates after they sponsored legislation to redefine rape as “forcible rape”

As Rep. Todd Akin’s despicable comments on “legitimate rape” rightfully provoke outrage, the Massachusetts Democratic Party reminds voters that Republican U.S. Senator Scott Brown has given thousands of dollars to other Republican candidates for the U.S. Senate who would redefine rape as “forcible rape” and threaten women’s rights if, with Brown, they gain control of the U.S. Senate.

Republican Vice Presidential Candidate Paul Ryan also supports the bill.

Brown’s PAC, SCOTTPAC, has made campaign contributions to four House members, including three U.S. Senate candidates, after they cosponsored the No Taxpayer Funding for Abortion Act.

Scott Brown is supporting a Vice Presidential nominee and three of his fellow senate candidates who want to redefine rape, excluding protections to victims of violent sexual assaults. Brown donated to current Senate candidates Rep. Jeff Flake (R-AZ), Rep. Denny Rehberg (R-MT), and Rep. Rick Berg (R-ND), as well as Rep. Jeff Denham (R-CA). The Republican nominee for Vice President, Paul Ryan, also cosponsored the bill.

“Scott Brown is supporting Republicans with a dangerous agenda for women throughout the Commonwealth and across the country,” said Massachusetts Democratic Party Executive Director Clare Kelly. “Brown is doling out his campaign cash to aid extreme conservatives who want to redefine ‘rape’ and roll back critical protections for women – and they will, if they gain control of the Senate and the White House.”

Scott Brown has made campaign contributions to the following supporters of the No Taxpayer Funding for Abortion Act that would redefine rape:

Scott Brown's PAC contributed $5,000 to Jeff Flake for US Senate Inc[OpenSecrets.org, Accessed 8/20/12]

Scott Brown's PAC contributed $10,000 to Montanans for Rehberg [OpenSecrets.org, Accessed 8/20/12]

Scott Brown's PAC contributed $5,000 to Berg for Senate [OpenSecrets.org, Accessed 8/20/12]

Scott Brown's PAC contributed $10,000 to Denham for Congress [OpenSecrets.org, Accessed 8/20/12]

Republican Lies About Spending and Deficits Exposed

Republican Lies About Spending and Deficits Exposed

We’re at the edge of the cliff of deficit disaster!  National security spending is being, or will soon be, slashed to the bone!  Obamacare will sink the ship of state!

Each of these claims has grabbed national attention in a big way, sucking up years’ worth of precious airtime. That’s a serious bummer, since each of them is a spending myth of the first order. Let’s pop them, one by one, and move on to the truly urgent business of a nation that is indeed on the edge.

Spending Myth 1:  Today’s deficits have taken us to a historically unprecedented, economically catastrophic place.

This myth has had the effect of binding the hands of elected officials and policymakers at every level of government.  It has also emboldened those who claim that we must cut government spending as quickly, as radically, as deeply as possible.

In fact, we’ve been here before.  In 2009, the federal budget deficit was a whopping 10.1% of the American economy and back in 1943, in the midst of World War II, it was three times that -- 30.3%. This fiscal year the deficit will total around 7.6%. Yes, that is big. But in the Congressional Budget Office’s grimmest projections, that figure will fall to 6.3% next year, and 5.8% in fiscal 2014. In 1983, under President Reagan, the deficit hit 6% of the economy, and by 1998, that had turned into a surplus. So, while projected deficits remain large, they’re neither historically unprecedented, nor insurmountable.

More important still, the size of the deficit is no sign that lawmakers should make immediate deep cuts in spending. In fact, history tells us that such reductions are guaranteed to harm, if not cripple, an economy still teetering at the edge of recession.

A number of leading economists are now busy explaining why the deficit this year actually ought to be a lot larger, not smaller; why there should be more government spending, including aid to state and local governments, which would create new jobs and prevent layoffs in areas like education and law enforcement. Such efforts, working in tandem with slow but positive job growth in the private sector, might indeed mean genuine recovery. Government budget cuts, on the other hand, offset private-sector gains with the huge and depressing effect of public-sector layoffs, and have damaging ripple effects on the rest of the economy as well.

When the economy is healthier, a host of promising options are at hand for lawmakers who want to narrow the gap between spending and tax revenue. For example, loopholes and deductions in the tax code that hand enormous subsidies to wealthy Americans and corporations will cost the Treasury around $1.3 trillion in lost revenue this year alone -- more, that is, than the entire budget deficit. Closing some of them would make great strides toward significant deficit reductions.

Alarmingly, the deficit-reduction fever that’s resulted from this first spending myth has led many Americans to throw their support behind de-investment in domestic priorities like education, research, and infrastructure -- cuts that threaten to undo generations of progress. This is in part the result of myth number two.

Spending Myth 2: Military and other national security spending have already taken their lumps and future budget-cutting efforts will have to take aim at domestic programs instead.

The very idea that military spending has already been deeply cut in service to deficit reduction is not only false, but in the realm of fantasy.

 There are a few other details at the link, including the ridiculous Republican urban myth that Obamacare will increase the deficit ( that is utterly false), that government health care (Medicare) is too expensive and we should privatize it Medicare is more cost effective than private insurance). Why do Republicans use these myths as a crutch; because they cannot win the battle on ideas based on facts. Conservative constantly engage in the sleaze of fake patriotism - hiding their freakish agenda behind the flag, and behind the Bible. They should be ashamed, but they seem to lack the moral conscience to feel shame.

Conservative Republicans are actively trying to stop job creation. Not exactly how a patriot should act.

Conservative Republican Journalist and Pervert James O'Keefe Fails To Find A Scandal, Union And Public Works Edition

The USA Sinking Back Into the Regressive Age of The Robber-Barons, The Corrupt and Elite

The USA Sinking Back Into the Regressive Age of The Robber-Barons, The Corrupt and Elite

Over the past 40 years, corporations and politicians have rolled back many of the gains made by working and middle-class people over the previous century. We have the highest level of income inequality in 90 years, both private and public sector unions are under a concerted attack, and federal and state governments intend to cut deficits by slashing services to the poor.

We are recreating the Gilded Age, the period of the late 19th and early 20th centuries when corporations ruled this nation, buying politicians, using violence against unions, and engaging in open corruption. During the Gilded Age, many Americans lived in stark poverty, in crowded tenement housing, without safe workplaces, and lacked any safety net to help lift them out of hard times.

With Republicans more committed than ever to repealing every economic gain the working-class has achieved in the last century and the Democrats seemingly unable to resist, we need to understand the Gilded Age to see what conservatives are trying to do to this nation. Here are 8 ways our corporations, politicians and courts are trying to recreate the Gilded Age.

1. Unregulated Corporate Capitalism Creates Economic Collapse

In the late 19th century, corrupt railroad capitalists created the Panic of 1873 and Panic of 1893 through lying about their business activities, buying off politicians and siphoning off capital into their own pockets. Railroad corporations set up phony corporations that allowed them to embezzle money from the railroad into their bank accounts. When exposed, the entire economy collapsed as banks failed around the country. The Panic of 1893 lasted five years, created 25% unemployment, and was the worst economic crisis in American history before the Great Depression.

In the early 21st century, the poorly regulated financial industry plunged the nation into the longest economic downturn since the Depression. Like in the Gilded Age, none of the culprits have served a day in prison.

2. Union Busting

In the Gilded Age, business used the power of the state to crush labor unions. President Hayes called in the Army to break the Great Railroad Strike of 1877; President Cleveland did the same against the Pullman strikers in 1894.

Today’s corporations don’t have to use such blunt force to destroy unions, but like in the past, they convince the government to do their bidding. Whether it is holding up FAA renewal in order to make it harder for airline employees to unionize, Republican members of the National Labor Relations Board leaking material on cases to Republican insiders, or governors Scott Walker and John Kasich seeking to bust their states’ public sector unions, not since before the Great Depression has the government attacked unions with such force.

3. Income Inequality

Today, we have the highest levels of income inequality since the 1920s and the gap is widening to late 19th century levels with great speed. In those days, individuals like John D. Rockefeller had more money than the federal government, while the majority of Americans lived in squalor, poverty and disease.

In the Progressive Era, we started creating laws like the federal income tax, child labor laws and workers’ compensation to begin giving workers a fair share of the pie. For decades, labor fought to increase their share and by the 1970s, had turned much of the working class into the middle class. Today, that middle class is under attack by a new generation of plutocrats who wish to recreate the massive fortunes of the Gilded Age.

4. Open Purchase of Elections

In 1890, copper magnate William Clark paid Montana lawmakers $140,000 to elect him to the U.S. Senate. While most plutocrats did not share Clark’s interest in being politicians, they ensured their lackeys would serve in office, often by offering corporate stock to politicians. Disgusted by this corruption, America in the Progressive Era of the early 20th century created a number of reforms, including the 17th Amendment that created direct elections of senators, as well as a 1912 Montana state law limiting corporate expenditures in politics.

Beginning with the Citizens United decision and continuing with the recent overturning of that 1912 law, the Supreme Court has allowed corporations and wealthy plutocrats to buy elections openly once again.

 It is odd that conservative blue collar workers would actually help the multinational corporations and billionaire elitists like the Coors beer family, casino wacko Sheldon Adelson and the Koch brothers to help undermine their economic futures. These elites buy the white southern blue collar workers with talk about religion - but which the billionaires themselves feel no real obligation to. They buy the lower middle-class with promises of returning to a time when men were men and women will do what they're told - never going to happen for good reason  - women do not want to return to spending their lives with so few options being ordered around like servants. The elite, our modern barons buy off those white blue collar workers with cultural issues that will make their lives harder and less free. A neat trick that Old World aristocrats used on serfs. keep us in power or your world will fall apart.

Yep big gov'mint is bad until the day your house burns down. Wildfire Tests Police Force in Colorado Home of Anti-Tax Movement. Look to federal government for help..

Is Limbaugh back on drugs and having visions? Limbaugh Falsely Claims IRS Is Hiring "16,000 New Agents" To Implement Health Care Reform

Republican Weenie of the Day, Scott Brown (R-MA)

Republican Weenie of the Day, Scott Brown (R-MA)

Senator Scott Brown said he will accept a debate at the ­Edward M. Kennedy Institute but only on the condition that Vicki Kennedy stay neutral in the election and that MSNBC not be included as a broadcast partner.

The Brown campaign said in a press release that it would agree to allow former NBC ­anchor Tom Brokaw to moderate.

Elizabeth Warren has already accepted the Sept. 27 debate, but Brown had previously not committed. The candidates are jointly committed to two other televised debates so far, one in the Boston market and a second one in Western Massachusetts.

....Brown has agreed to two ­radio debates, including one moderated by Dan Rea, a conservative-leaning talk show host, and another hosted by Margery Eagan, a Boston Herald columnist, and Jim Braude, a Democrat and former Cambridge city councilor.

Brown is a afraid that at some point he will have to honestly answer some tough questions, instead of being tossed fuzz balls by spineless conservative puppets like Dan Rea. Once again brown is inadvertently sending the public a message about his character and courage - he admits he is a weenie, that he has plenty to hide and has no respect for the democratic process.