Posted by Warm Southern Breeze on Saturday, September 3, 2016
Executive Excess 2016: The Wall Street CEO Bonus Loophole
This 23rd annual report reveals how taxpayers are subsidizing financial crisis windfalls.
By Sarah Anderson and Sam Pizzigati, August 31, 2016
This report is the first to calculate how much taxpayers have been subsidizing executive bonuses at the nation’s largest banks.
The study focuses on a 1993 Clinton administration reform that was intended to rein in runaway CEO pay by capping the tax deductibility of executive compensation at $1 million. But the new rule included a huge loophole for stock options and other “performance” pay. As a result, the more corporations hand out in executive bonuses, the lower their tax bill. This perverse incentive for excessive compensation has been a major factor in the explosion of CEO pay.
The financial bailout program closed this loophole for recipients, but only until Read the rest of this entry »
Posted in - Business... None of yours, - Politics... that "dirty" little "game" that first begins in the home., - Read 'em and weep: The Daily News | Tagged: #BonusLoophole, 2016, abuse, bailout, banks, Big Banks, Bill Clinton, bonus, bonus loophole, CEO, CEO Bonus, CEO Compensation, Clinton, Congress, executive excess, fraud, free ride, government, law, legislation, loophole, money, pay, policy, report, research, study, subsidize, subsidy, tax deduction, tax dollars, tax free, taxes, taxpayer bailout, Wall Street, waste, Wells Fargo | Leave a Comment »
Posted by Warm Southern Breeze on Thursday, September 20, 2012
Courtesy of the Wall Street Journal, the real “Welfare Mothers” are found to be…
First Posted: 01/10/12 01:03 PM ET Updated: 01/10/12 06:17 PM ET
At a time when the federal government is starved for cash — and facing layoffs and cuts in services across the board — more and more corporations are sidestepping their traditional tax rate and keeping millions of dollars for themselves.
The number of U.S. corporations structuring their businesses in such a way that they can avoid higher taxes has skyrocketed in the past quarter century, The Wall Street Journal reports.
In 1986, about 24 percent of corporations were what’s known as nontaxable businesses — meaning the companies themselves pay no federal income taxes — instead passing on the earnings to individual investors to pay taxes on. By 2008, these businesses accounted for about 69 percent of all corporations, a designation that can save companies hundreds of millions of dollars in a single year
Advocates for the business community have expressed frustration with the country’s 35 percent corporate income tax rate, calling it unreasonably high. In practice, though, it’s common for big businesses to pay much less, thanks to a cornucopia of tax-code loopholes and exemptions won by lobbyists.
The issue of corporate tax participation has become especially pressing in recent years, as the country struggles to manage its ballooning deficits. Corporate taxes for non-financial companies have fallen more than 13 percent since 2007, according to Bloomberg. At the same time, the national debt grew to $15.23 trillion from $9.13 trillion — a number larger than the economy itself.
According to a recent analysis of nearly 300 Fortune 500 companies by the Citizens for Tax Justice, the average company was paying just 18.3 percent in taxes — a little more than half the official rate. And by using techniques like industry subsidies, stock option packages, and moving assets overseas where they can’t be taxed, 30 companies mentioned in the report — including Wells Fargo, Verizon, Boeing and General Electric — didn’t pay a cent in federal taxes in 2008, 2009 or 2010, the report found.
The phenomenon affects state income taxes as well as federal. Last month, another study from the Center for Tax Justice found that corporate tax avoidance had cost states a combined $42.7 billion between 2008 and 2010 — a period when budget shortfalls forced states to cut spending for health care, public schools and care for the elderly and disabled.
More Firms Enjoy Tax-Free Status
January 10, 2012
By JOHN D. MCKINNON
StoneMor Partners LP, the publicly traded firm that specializes in running cemeteries, expects to see handsome profits in coming years as baby boomers age and die. But unlike its largest rivals, its corporate tax bill from the federal government will be zero.
StoneMor is among the many businesses organized so they don’t pay a penny in federal corporate income tax. And yet such firms don’t employ an army of accountants to shield profits in complex tax shelters. Their enviable tax position is perfectly legal and has been encouraged by Congress and state governments. Known as Read the rest of this entry »
Posted in - Lost In Space: TOTALLY Discombobulated, - Read 'em and weep: The Daily News | Tagged: Citizens for Tax Justice, Corporate tax, corporation, General Electric, Internal Revenue Service, John McKinnon, tax, United States, Wall Street Journal, Wells Fargo | Leave a Comment »
Posted by Warm Southern Breeze on Wednesday, May 18, 2011
Our nation’s economy has for years rested upon manufacturing, which has been the “backbone” of any industrialized nation. (Note the phrase “industrialized nation.”) Now that industry has been “out-sourced” to China, India, and other nations with emerging economies, not only has America become dependent upon other nations (not independent), but our national security and standard of living has been compromised.
Thus, banks, insurance companies and stock brokerage houses – who have again been allowed to enjoy their incestuous fiscal orgies because the Glass-Stegall Act was repealed – are forced to invent artificial commercial paper (derivatives, etc., which no one can thoroughly explain) to increase profits. In conjunction with the computer-driven algorithms of auto-traders and futures markets, the risks Wall Street and banks make (upon the backs of the people) are increasingly becoming a veritable “house of cards” built upon shifting sands.
The uncertainty of our economic future is even more precarious, and is no more clearly demonstrated than in this instance, when banks can’t sell houses they own, even after taking significant reductions (losses), and providing incentives for private buyers.
After reading the following news story, consider the implications for our economy. Read the rest of this entry »
Posted in - Uncategorized | Tagged: bank, business, derivatives, finance, foreclosure, JPMorgan Chase, Mark Zandi, Mortgage loan, property, Real estate, Real estate broker/agent, Short (finance), Short Sale, United States, Wall Street, Wells Fargo | 1 Comment »
Posted by Warm Southern Breeze on Tuesday, March 30, 2010
I was seated at the kitchen table, listening to satellite radio – “Give A Little Bit” by Supertramp was playing – having taken a large sip of Fighting Cock 103 proof Kentucky whiskey, followed with a swig of Yuengling Original Black & Tan beer, while reading the Sunday funny papers from the Huntsville (Alabama) Times. Outside the window, a couple was looking around the property next door. Here comes the woman now, from around the corner. Oh… the table at which I’m seated is adjacent a window. I was breathing, and my blood was circulating, and I was thinking that …Continue…
Posted in - Did they REALLY say that?, - Lost In Space: TOTALLY Discombobulated, - My Hometown is the sweetest place I know | Tagged: Alabama, Amy Bishop, Apple, bail out, beer, crash, crime, criminals, description, FBI, Fighting Cock, funny papers, Huntsville, Kentucky, kernel, killer murderer, Madison, mass murder, note, nutty professor, OSX, panic, problem, prospective buyer, sheriff, stock, Sunday, theft, UAH, university, Wall Street, Wells Fargo, whiskey, whisky, woman, Yuengling | Leave a Comment »
Posted by Warm Southern Breeze on Thursday, March 18, 2010
“For a root of all the evils is the love of money, which certain longing for did go astray from the faith, and themselves did pierce through with many sorrows.” 1 Timothy 6:10 (YLT)
Wachovia Bank officials in Miami plead guilty to federal drug money laundering charges in Miami. As part of their agreement, the bank will forfeit $110,000,000 ($110 Million) and be fined $50,000,000 ($50 Million).
Federal prosecutors with the U.S. Attorney General’s Office, and Drug Enforcement Administration officials found detailed evidence supporting …Continue…
Posted in - Read 'em and weep: The Daily News | Tagged: bank, court, criminal, criminal enterprise, DEA, drugs, federal, guilty, launder, laundering, law, law suit, liars, Mexico, Miami, money, narcotics, norck-trafficker, thief, thieves, traffick, USA, Wachovia, Wells Fargo | 2 Comments »