imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

The American Prospect: The 2-Billion Giveaway

by Robert S. McIntyre, Citizens For Tax Justice Friday, Oct. 26, 2001 at 12:01 PM

On a party-line vote, the House GOP passed a bloated "stimulus" tax-cut bill expected to cost a staggering 2 billion over the next 3 years. With typical dishonesty, the GOP called it a -billion measure, referring only to its first-year cost. The press parrots agreed. 2/3rd of the cuts would go to corporations. Altogether, almost 3/4ths the total cuts next year go to the top 1/10th of all taxpayers. 41% go the best-off 1%.

The American Prospect -- Volume 12, Issue 20. -- November 19, 2001.

The 2-Billion Giveaway

Robert S. McIntyre

Special-interest zeal to use the national-security crisis as an excuse for huge new upper-income tax breaks continues unabated in Washington, D.C.

On a party-line vote, the House on October 24 approved a bloated "stimulus" tax-cut bill that makes a mockery of the previous bipartisan agreement between congressional leaders and the administration that additional stimulus measures should be temporary and limited to a total of billion to billion. Instead, House Republicans have adopted a laundry list of new tax breaks, some explicitly permanent, that are officially expected to cost a staggering 2 billion over the next three fiscal years--and heaven only knows how much thereafter.

With typical dishonesty, the bill's backers call it a -billion measure, referring only to its first-year cost. Sadly, the press has been going along with this charade.

Two-thirds of this latest round of GOP tax cuts would go to corporations. The tax changes for individuals, which include a 10 percent drop in capital-gains taxes, are also sharply tilted toward the wealthy. Overall, almost three-quarters of the total tax reductions next year (including the benefits to capital owners from the corporate breaks) would go to the top one-tenth of all taxpayers. That includes the 41 percent that would go the best-off 1 percent; the average tax cut in 2002 for that group would be almost ,000 per taxpayer.

Under the bill, the biggest current corporate-tax subsidy--for what is known as accelerated depreciation--would be almost doubled, at an estimated cost of 9 billion over the next three years. Ostensibly, this expanded loophole will expire after 2004--but similar "temporary" measures enacted in the past have more often than not been routinely extended.

The corporate "alternative minimum tax," which now discourages tax sheltering and forces some otherwise low- and no-tax-paying corporations to cough up at least something in taxes, would be permanently repealed. As a bonus, companies that paid the minimum tax over the past 15 years would get an immediate refund of those payments. Of the billion in instant corporate-rebate checks, .3 billion would be made out to just 14 tax-avoiding Fortune 500 companies--whose rebates would average 0 million each. Topping the list is IBM, which is slated to receive a .4-billion rebate check. General Motors is next at 3 million, followed by General Electric at 1 million, TXU (Texas Utilities) at 8 million, DaimlerChrysler at 0 million, and ChevronTexaco at 2 million. According to The Wall Street Journal, a spokesman for GM said that the company is "very pleased."

In addition, House Republicans want to make it easier for corporations with loophole-generated "tax losses" to use them to apply for refunds of taxes they paid in the past, at a cost of more than billion over the next three years. Like the increase in depreciation write-offs, this provision is technically supposed to expire after 2004.

Multinational corporations such as General Electric and the major auto companies would get permanent extension of an expiring tax shelter that allows them to shift profits offshore through manipulation of interest payments. Most of the estimated -billion 10-year cost will be incurred in the second half of this decade.

On the individual side, the bill cuts the top income-tax rate on capital gains from 20 percent to 18 percent. Assuming no increase in realized gains, this would cut taxes by billion in calendar 2002 alone (with three-quarters of that going to the wealthiest 1 percent of taxpayers). If realizations go up, as some predict they will, then the upper-income tax savings will be even larger. Amazingly, Ways and Means Committee Chairman Bill Thomas, a California Republican who insisted on including the capital-gains tax cut in the bill, admits that he "doesn't consider it a short-term recovery tool," while discount broker Charles Schwab, who lobbied hard for the change to boost his firm's sagging revenues, argues that it will lower stock prices by encouraging sales.

The reduction in the former 28 percent individual tax rate to 25 percent, scheduled to be phased in by 2006 under the Bush tax-cut bill enacted in May, would be moved up to 2002. Three out of four taxpayers wouldn't get even a penny from this change, and most of the billion in tax savings would go to the best-off tenth.

Finally, the 2001 tax rebates of 0 for couples, 0 for single parents, and 0 for childless singles would be extended to about 37 million couples and individuals who did not get them or got less than the full amounts. To qualify, a person or couple must have filed an income-tax return for tax year 2000--a proviso that still leaves out about 14 million nonfilers. For those affected, the .7 billion in additional one-shot rebates in 2001 would average about 0.

Senator majority leader Tom Daschle of South Dakota has condemned the House's perfidy, calling several of its proposals, including the repeal of the alternative minimum tax, "nonstarters." Pointing to its huge cost and grossly unfair distribution, another Democrat, Budget Committee Chairman Kent Conrad of North Dakota added that the House bill "doesn't pass the laugh test." Even some Republicans are upset with the House action. Both Senator Pete Domenici, ranking Republican on the Budget Committee, and Treasury Secretary Paul O'Neill blasted the House bill as inconsistent with the previously agreed-upon stimulus framework.

But George W. Bush's chief spokesman Ari Fleischer sings a different tune: He reported that the president, like General Motors, is "very pleased" with the House tax-cut bill. Meanwhile, warning that even without new tax cuts the country may be heading back to big budget deficits, White House Budget Director Mitchell Daniels is gleefully preparing a long list of nonmilitary programs that he says must be sharply reduced. This is all getting very ugly, very fast.

Running Hot and Cold at the Fed

You might have thought that if Federal Reserve Chairman Alan Greenspan were dead he'd be turning over in his grave at the fiscal irresponsibility of the House-passed stimulus plan. After all, Greenspan has been outspoken in insisting that any tax cut or spending increase must be temporary to avoid higher long-term interest rates. But on October 17, in a discussion about the stimulus package, Greenspan told the Joint Economic Committee that he favors permanent elimination of all personal income taxes on capital gains and dividends!

It's no surprise that an Ayn Rand devotee like Greenspan would favor tax policies outrageously tilted toward the wealthy (two-thirds of his proposed tax cuts would go to the richest 1 percent of Americans). But what about his vaunted devotion to fiscal restraint? Although Greenspan added his usual boilerplate warning that "we have to be cautious in looking at whatever we do," his proposal would lower taxes by 7 billion in 2002 alone-- and cost close to trillion over the upcoming decade. Earth to Alan: What are you thinking?

Robert S. McIntyre

Copyright

Report this post as:

LATEST COMMENTS ABOUT THIS ARTICLE
Listed below are the 10 latest comments of 1 posted about this article.
These comments are anonymously submitted by the website visitors.
TITLE AUTHOR DATE
These guys have too much money! Judi Friday, Oct. 26, 2001 at 6:20 PM

Local News

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

Watch the Debate: Excluded Candidates for Governor of California M31 5:20AM

Change Links June 2018 posted M28 7:41AM

The Montrose Peace Vigil at 12 Years M22 8:01PM

Unity Archive Project M21 9:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 10:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 9:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 8:57PM

California police agencies violate Brown Act (open meetings) M02 8:31PM

Insane Company Wants To Send Nuke Plant Waste To New Mexico A29 11:47PM

Change Links May 2018 A27 8:40AM

Worker-Owned Car Wash on Vermont Closed A27 5:37AM

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A13 12:39AM

lausd whistle blower A11 6:58AM

Website Upgrade A10 10:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 8:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 6:58PM

Change Links April 2018 A01 6:27PM

More Local News...

Other/Breaking News

Paraphysique de psychosomatique S22 6:58AM

Chuck Grassley: Women Abusing, Animal Murdering, Illegal War Supporting Criminal S22 2:58AM

Finance Capitalism and the Digital Economy S21 4:45PM

Muselières syndicales, muselières patronales S21 7:19AM

Jeff Bezos, Amazon, The Washington Post, Whole Foods, Etc S21 2:50AM

Why Choose Nut Milk Over Cows' Milk S21 1:01AM

Antrhopocène, le grand effondrement S19 9:53AM

Creative Destruction Hack Diamonds Windows/iOS/Android - Creative Destruction Generator S19 12:51AM

Abolir l'économie S18 11:18AM

The Dictatorship of Corporations S17 5:26PM

18 Lethal Consequences Of Hunting S17 3:13PM

Paraphysique de l'outplacement déontologue S15 6:51AM

Creative Destruction Hack Mod Generator S15 3:49AM

Shopping du bashing S14 8:42AM

After Lehman Brothers, Experts Say Global Financial Crisis Can Happen Again S13 8:28PM

“Animaniacs in Concert!” Starring Voice Legend Rob Paulsen S12 9:30PM

Probabilités de fin d'humanité S12 6:49AM

Florida Area of Migrant Farmworkers Denied Right to Construct Health Clinic near NaplesCIW S11 2:57AM

Propagande de virus, virus de propagande S10 7:34AM

Steer clear of work morality! S09 12:10PM

Sweatshop Lodge Ceremony Continues in US Fed Prisons Led by Inmates S08 6:17PM

Paraphysique de l'origami S08 7:11AM

The Shortwave Report 09/07/18 Listen Globally! S06 11:23PM

August 2018 Honduras Coup update S06 12:28PM

Du réussissement putréfié S06 10:55AM

Brett Kavanaugh Filled The 5th Circuit With Execution Judges S06 6:14AM

Log S06 4:25AM

Augusta Georgia Woman Gets 5 Year Prison Sentence for Writing About Russians Crime Acts S05 8:29AM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy