Posts Tagged ‘Lobbying’
In the American Workers, State, and Business Relief Act of 2010, passed by the House last Friday, there are little observed provisions to remove tax incentives to offshore outsource your job.
The bill ties income to the foreign tax credit, so no longer can a corporation claim the tax credits yet park the actual profits money offshore in a low tax country. As one can see if one gets credits yet doesn’t have to actually pay tax on profits accrued when offshore, this encourages the movement of assets, production overseas, including jobs.
In White House Semi-English:
When a U.S. taxpayer has overseas income, taxes paid to the foreign jurisdiction can generally be credited against U.S. tax liabilities. In general, this “foreign tax credit” is available only for taxes paid on income that is taxable in the U.S. The intended result is that U.S. taxpayers with overseas income should pay no more tax on their U.S. taxable income than they would if it was all from U.S. sources. However, current rules and tax planning strategies make it possible to claim foreign tax credits for taxes paid on foreign income that is not subject to current U.S. tax. As a result, companies are able to use such credits to pay less tax on their U.S. taxable income than they would if it was all from U.S. sources – providing them with a competitive advantage over companies that invest in the United States.
In reading the bill, first pass, it does appear the White House proposal is in the bill.
The changes are is TITLE IV—REVENUE OFFSETS, Subtitle A—Foreign Provisions in H.R. 4213. The section starts on page 229 in the bill text link.
Multinational corporations will do everything in their power to strip out these changes and so will the powerful NASSCOM, or Indian offshore outsourcing business group and their U.S. lobbying counterpart, USINPAC.
Expect war from our Benedict Arnold Tech Companies such as IBM, Microsoft and HP. IBM literally has an algorithm to manipulate global tax structures and has been firing every American who isn’t nailed to their desk. HP just announced 9000 more layoffs. Amazing because the bill extended the R&D tax credit, which greatly benefits these same companies.
Meanwhile Chuck Schumer wants to tax foreign call centers. For each call transferred overseas, Schumer wants a 25¢ charge put on the call. What? No more nonsensical useless script reading rambling in your ear wasting your time and creating more frustration via the phone? Say it ain’t so!
(ThePeoplesVoice) – It shouldn’t surprise because no one gets the top job or any government position of power unless they’re safe- yet, naively, most people thought Obama was different. Many still do.
As a candidate, he promised change, a new course, sweeping government reforms, addressing people needs, and “ensur(ing) that the hopes and concerns of average Americans speak louder in Washington than the hallway whispers of high-priced lobbyists” – the same ones who bought and now own him. He promised peace and delivered war; real health and financial reform, not same old, same old; help for millions losing jobs, homes, hope and futures, not handouts to Wall Street and other industry favorites; regulatory oversight, not the usual incestuous government-industry ties, making disasters like in the Gulf possible, and when they happen conspiring with offenders in coverup, distortion, lies, and a total disregard for the environment, wildlife, and way of life for thousands – let alone permanent damage to a vital ecosystem.
At the same time, Big Oil gets billions in subsidies, special tax breaks and other financial benefits, besides operating in a regulatory-free environment.
The 1995 Outer Continental Shelf Deep Water Royalty Relief Act (DWRRA – courtesy of Bill Clinton) exempted royalties on defined amounts of deep water production. After its 2000 expiration, the law was redefined and extended to promote further deep water drilling.
The Minerals Management Service (MMS) defines it as having a water depth of 200 meters (656 feet). To be eligible, leases must be in the Gulf of Mexico, west of 87 degrees and 30 minutes west longitude (the Florida-Alabama boundary), and MMS must determine that the site isn’t economically viable without relief.
Given longstanding MMS-industry coziness, it’s practically rubber-stamp. DWRRA also reduced royalties on pre-November 28, 1995 leases, decided by the Interior Department Secretary on a case-by-case basis – again, practically assured by officials with close industry ties.
The 2005 Energy Policy Act was one of the friendliest ever with over $10 billion in handouts. It lets oil giants pay federal royalties in barrels of oil and grants exemptions on some wells, subsidizes a new R & D program for ultra deep water drilling and unconventional oil and gas development, creates hundreds of millions of dollars in new tax breaks, increases what oil and gas companies can deduct on pipeline expenses, provides more liability protection besides the $75 million cap (established by the 1990 Oil Pollution Act after the 1989 Exxon Valdez disaster, an amount too small to matter).
As an Illinois senator, six months into his term, Obama supported it, an early clue to where he stood, and how he hoped to gain – the usual “you scratch my back, I’ll scratch yours” payoff.
It worked hugely with BP, the Center for Responsive Politics (CRP) reporting that its employees and political action committees gave more to him than to any other federal candidate in the past 20 years.
Written by laudyms
May 31, 2010 at 5:08 pm
White House Sorta, Kinda Thinkin’ ‘Bout Using TARP Money for Small Business Loans as Small Business Lenders Go Bust
By Yves Smith Naked Capitalism July 11, 2009
The Washington Post has a pretty bizarre story up tonight. The Administration is thinking about releasing TARP funds as loans to small businesses.
Stress the thinking part. As in big-time thinking. As in long way from action. Which begs the question as to why this is a news story. Since I am of the view that pretty much every news story is a plant or a leak, at least if any semi-well run entity is involved, one then must ponder the purpose in having such an early-stage idea come to light. Is it to flush out support, or to give opponents a chance to rally? …………
The further you get into the story, the more apparent it becomes that this program will never see the light of day, or if it does, it will be more PR than substance:
Aiding small businesses could be a gamble because they have a poorer record than large corporations when repaying loans; it would be the riskiest government investment so far under the bailout plan. Officials are trying to design the program to exclude companies that are likely to fail even if they received federal aid, people with knowledge of the discussions said.
Some administration officials hoped to present several proposals to President Obama last week. But the meeting has been put on hold indefinitely while the Treasury conducts a deeper analysis of the problems afflicting small companies.
Yves here. I cannot believe we have this “corporations have a better odds of repayment” twattle. Did they put AIG and Citi in their sample?…..
I am not saying CIT should be saved. But can someone tell these clowns that increasing the concentration at the big end of the financial system increases systemic risk?
As reported in Organic Bytes #176, Monsanto and the biotech industry are mobilizing their propaganda machine to force-feed genetically engineered (GE) wheat to consumers. A recent poll reveals, however, that 69 percent of Canadian wheat farmers are opposed to “franken-wheat”, given the fact that it’s banned in Europe, and most U.S. consumers don’t want it. As a result, the biotech industry is attempting to shift public perception by inundating the press with genetically engineered misinformation. The OCA’s Honor Schauland takes a look at some recent quotes spewing out of the GE-wheat spin machine, most of which are more humorous than factual.
By Tom Sullivan
ourfuture.org June 17, 2009
Efforts continue in the Senate to water down any public health insurance option included in comprehensive health care reform, regardless of what 83% of the American public wants.
First it was the trigger provision designed never to be pulled, like that floated by Sen. Olympia Snowe (R-ME). Last week, Sen. Kent Conrad (D-ND), proposed creating non-profit health insurance cooperatives. Politico dubbed it “a potential game changer.” Jacob Hacker called it Conrad’s co-op cop-out.
Senator Max Baucus (D-MT), chairman of the Senate Finance Committee, supported the co-op proposal, saying, “I am inclined, and I think the committee is inclined, toward a co-op.” Iowa Sen. Charles E. Grassley, the panel’s senior Republican, said, “If it can be presented… as an entirely private-sector operation and is like co-ops we know generally in the Midwest, I think it’s got some possibilities.”
Fine. Here is one possibility we could see and, given the abandonment of single-payer and what looks like a systematic effort to sabotage the public option, a co-op that a growing number of Americans would gladly join: