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Senator Hagan screws up big time

Kay Hagan is introducing a bill today with her new chum, John McCain, to slash taxes on giant, profitable multi-national corporations. As we noted back in July after her speech to a pro-corporate think tank on the matter, this is the last thing our economy or tax system needs.

This is from that article:

“The bottom line on this matter is pretty simple:

1)      There is simply no end to the creativity of corporations and their tax lawyers when it comes to devising ways to avoid paying taxes (i.e. their fair share of the bill for our essential public services and structures);

2)      The last thing the American government or economy needs is another huge tax break for giant, profitable corporations; and

3)      Senator Hagan must know these truths and if she doesn’t, she needs to get up to speed real fast.”

Unfortunately, it appears that if the Senator has learned anything, she’s conveniently forgetting it as she  rushes to make nice with the corporate powers- that-be in a way that would make Liddy Dole proud.

Simply amazing.  Senator, are you paying any attention to what’s going on right now?

 

13 Comments

  1. James

    October 6, 2011 at 11:28 am

    Hagan has been more of a disappointment than Obama … and that’s saying a lot. I regret every dollar I contributed to her campaign.

  2. JeffS

    October 6, 2011 at 11:32 am

    I imagine Cisco’s lobbyists have spent considerable time in Ms Hagan’s office over this one.

    I love how the proponents of “tax holidays” always leave out why the money is overseas in the first place. They diverted it there to avoid paying US taxes in the first place. Yes, it was by-the-book legal, but it was still a purposeful attempt to avoid paying US taxes, and everyone knows it.

    So… now that we’ve allowed them to not pay taxes, do we reward them for their behavior? Cisco has around 45 billion in cash and just laid off 6500. Almost all of those positions were in the US because it was easier. As it turns out, labor laws in the UK and other countries made it more difficult to fire employees so the US took the brunt of the cuts. Allowing them to bring this money back will not result in more jobs. It will not result in more investment.

    Many other companies are in the same situation, I’m just using a local example. I can see how someone might say that 5% is better than nothing, or convince themselves that they’re really trying to help the national economy with this move, but in the end, I have to think that we’re doing nothing but rewarding bad behavior. What do we have to gain by helping companies who are doing everything they can not to pay taxes, maintain almost all their production overseas, and are slowly, but steadily transitioning all of their jobs overseas as well?

    If they want to pretend they’re an overseas company, we should stop providing them the benefits that their US status provides.

  3. James

    October 6, 2011 at 12:55 pm

    Great comment, Jeff.

  4. […] No Comments Tomorrow, Senator Kay Hagan will appear with some corporate titans to explain her destructive plan to give giant multi-national corporations yet another tax cut. Wish she were holding it somewhere in which she’d have to look at and speak to the […]

  5. jim neal

    October 6, 2011 at 4:05 pm

    Seriously- is this a fundraiser…or a joke

  6. Jack

    October 6, 2011 at 4:25 pm

    According to popular rhetoric corporate tax exemptions will create jobs. Well, how’s that working for us?

    Sad to say but it’s both a joke and a fundraiser at the expense of the American people.

  7. Em

    October 6, 2011 at 4:52 pm

    So much for the confidence we women placed in this woman….politics uber allofus……..

  8. Erik Leaver

    October 7, 2011 at 8:55 am

    Both the liberal Institute for Policy Studies and the conservative Heritage Foundation agree this plan is a bad idea for America. http://www.ips-dc.org/blog/ips_heritage_agree_tax_holiday_idea_stinks

    58 of the large corporations that were granted a tax holiday by congress in 2004 went on to shed almost 600,000 workers. This downsizing didn’t stem from recession-linked red ink. These 58 companies today maintain combined cash reserves of more than $450 billion.

  9. mark

    October 7, 2011 at 9:08 am

    I believe Mr Schofield is wrong on this one. While I am not in favor of doing favors for corporate America and blame a good part of our problems on corporate incompetence and greed, unlocking these hundreds of billions of dollars and bringing them back to the United States is the right thing to do. If it were possible to require that the repatriated dollars be spent only for jobs, I would support that. But I realize that money is fungible and that requirement would not work. However, I would suggest that Hagan and McCain meet with the Business Roundtable and the US Chamber to elicit commitments that this money would be spent on jobs. I still believe that there some honorable executives in corporate America and this money is doing unemployed Americans no good overseas.

  10. Rob Schofield

    October 7, 2011 at 9:46 am

    Mark — As you well know, the reason the money is overseas is because the companies have been holding out for precisely this kind of break. The solution is not to let the corporations get away with this scam, but to reform the corporate tax system by removing the incentives to shelter funds overseas in the first place.

    Unfortunately, corporate lobbyists have thus far made this impossible. There certainly are “honorable executives in corporate America” but they do not include the greedy folks behind this particular scam or the locust-like lobbyists who effectvely run Congress on their behalf.

  11. jim neal

    October 7, 2011 at 11:27 am

    Rob- Spot on. Corporations patiently hoard their profits offshore waiting for Tax Amnesty Day such as that proposed by Kay and Sen. McCain. The last such Amnesty- in 2004- was a failure.

    Mark- remember US Corporations are sitting on cash reserves in excess of $1 trillion already. Adding another $1.4 trillion to the coffers isn’t going to make a damned difference despite the sugar-coated rhetoric about job growth- a pipe dream. Amnesty Day would save US multinationals $400 billion- a staggering number that would be an immediate boon.

    This proposal is not only dead out-of-the-gate, it’s no more than a crass opportunity for Senators Hagan and McCain to try and appeal to business interests / donors (and independent voters) in NC and AZ. Both states have un/under employment above the national 9.1 /16.5% rate.

    It’s bad policy anytime- and rather tone deaf at this time to the 99%. However it might be good for the political fortune of Sens. Hagan in McCain with conservative voters…..and with doubt effective in boosting their campaign coffers.

    (Note: I would offer the same criticism were Sen. Burr a sponsor as opposed to Kay.)

  12. […] The Progressive Pulse […]

  13. Dave

    October 8, 2011 at 6:53 am

    Rob, I own a small business for many years. With 35% going to the Feds, 6% going to the state, in my case. Also having to match some employees benefits, my business pays close to 50% to governments each year. This amount seems very extreme to me. To add salt to the wound governments are in this fiscal nightmare. From a business perspective I do everything possible to reduce tax exposure. From a personal point a view I feel I’m throwing hard earned good money into fiscally irresponsible governments that have upside down view in managing business.
    Drastic times require drastic measures. I believe we are running out of oxgen and if this cash isn’t brought into the US fiscal circumstances will deteriorate further possibly into the abyss. I keep hearing our administration considering a tax holiday only if it is linked to some type of reform. If there was a proper tax structure in the first place we wouldnt be having this exchange.
    Respectfully
    Dave