OPINION ~ The betrayals come in many forms. Here are a few of the more outrageous, and destructive, examples:
Evasion: Corporations suddenly stopped meeting their tax responsibilities
While corporate profits have doubled to $1.9 trillion in less than ten years, the corporate income tax rate, which for thirty years hovered around the 20-25% level, suddenly dropped to 10% after the recession. It has remained there for three years.
We are seeing a manifestation of the Shock Doctrine. Corporations are using the national emergency of the financial collapse to make a statement about taxes, and a traumatized nation is too preoccupied to do anything about it.
Delusion: Technology companies won’t admit that much of their ‘innovation’ is due to public assistance
According to the report Funding a Revolution, government provided almost half of basic research funds into the 1980s. Federal funding still accounted for half of research in the communications industry as late as 1990. Even today, the federal government supports about 60 percent of the research performed at universities.
Apple’s first computer was introduced in the late 1970s. Apple still does most of its product and research development in the United States, with US-educated engineers and computer scientists.
Google’s business is based on the Internet, which started as ARPANET, the Defense Department’s Advanced Research Projects Agency computer network from the 1960s. The National Science Foundation funded the Digital Library Initiative research at Stanford University that was adopted as the Google model.
Apple got its tax bill down to 9.8% last year. About 2/3 of its profits remain overseas for tax avoidance purposes. Google, like Apple, avoids taxes by moving most of its foreign profits through Ireland and the Netherlands to Bermuda. Both Apple and Google, along with Microsoft and Cisco, are lobbying for a repatriation tax holiday to allow billions of overseas dollars to come home at a greatly reduced tax rate.
An Apple executive said: “We don’t have an obligation to solve America’s problems.” That may be true, but they do have an obligation to pay the taxes that help America solve its problems.
Desertion: The people who benefit most from government are renouncing their citizenships to avoid taxes
Continue reading “Paul Buchheit ~ How the Ultra-Rich Betray America”