Will's editorial of 8/17/14 in the Times Picayune titled, "Inversions Boost U.S. Economy" is another conservative attempt to influence the people to disregard facts. Will writes that American companies merge with foreign companies and then move their headquarters to that foreign country to avoid paying income tax to Uncle Sam strenghtens the U.S. economy by increasing the after tax profits that leaves more money for investment and wages for U.S. workers.
But the facts are those after tax profits are used to give larger bonuses to CEO's and executives and not to the average worker. In the book, "13 Bankers" it was pointed out that median income under Bush 43 declined from $52,500 in 2000 to $50,300 in 2008, a loss of $2200. And the Bush tax cuts reduced Corporate America and the wealthy's tax bill the most. So those excess after tax profits did not go to the average worker.
The Clinton administration raised taxes on Corporate America and the wealthy and real median income grew by $5,825, an increase of 6.5% and was the longest consecutive 5 year real wage growth and increace since the 1960's. It declined 4.3% during the Reagan-Bush years. (National Economic Council 6/00)
All the latest economic reports given to the public over the last 5 years indicate the disparity between median wage earners and the wealthy and corporate America continue to favor the latter by a wide margin and median income has been at a stand still for many years. The Reagan and Bush 43 tax cuts for corporate America and the wealthy allowed the top 2% to flourish. The Clinton administration raised their taxes and the best economy, job creation and median household income happened on Clinton's watch. Clinton also balanced the federal budget while Reagan and Bush 43 failed to do so for all 16 years they served.
Will indicates in his editorial that American corporation are holding $2 trillion in corporate earnings abroad to avoid taxation by the U.S. Not only do they enjoy all the tax exemptions and loop holes in the U.S. tax structure, they still do not believe in paying their fare share. And they are the ones whose income tax has been reduced the most since WWII.
Yes, my fellow Americans, conservatives like Will and those in congress have taken it upon themselves to be the spokesperson for Corporate America and the wealthy. Trickle down economics is still a fairy tale and as Warren Buffet always says, paying U.S. income taxes is no obstacle for a company to be in business and make a necessary profit. And that really says it all.
This commentary written by John Lucia.
This commentary written by John Lucia.
