If you paid a dollar of income tax, you paid more than Bank of America
As you read through these incredible details, remember that Governor Scott Walker wants to cut school aids by a billion dollars in Wisconsin, all of which could be made up by taxing his rich cronies:
- BANK OF AMERICA: In 2009, Bank of America didn’t pay a single penny in federal income taxes, exploiting the tax code so as to avoid paying its fair share. “Oh, yeah, this happens all the time,” said Robert Willens, a tax accounting expert interviewed by McClatchy. “If you go out and try to make money and you don’t do it, why should the government pay you for your losses?” asked Bob McIntyre of Citizens for Tax Justice. The same year, the mega-bank’s top executives received pay “ranging from $6 million to nearly $30 million.”
- BOEING: Despite receiving billions of dollars from the federal government every single year in taxpayer subsidies from the U.S. government, Boeing didn’t “pay a dime of U.S. federal corporate income taxes” between 2008 and 2010.
- CITIGROUP: Citigroup’s deferred income taxes for the third quarter of 2010 amounted to a grand total of $0.00. At the same time, Citigroup has continued to pay its staff lavishly. “John Havens, the head of Citigroup’s investment bank, is expected to be the bank’s highest paid executive for the second year in a row, with a compensation package worth $9.5 million.”
- EXXON-MOBIL: The oil giant uses offshore subsidiaries in the Caribbean to avoid paying taxes in the United States. Although Exxon-Mobil paid $15 billion in taxes in 2009, not a penny of those taxes went to the American Treasury. This was the same year that the company overtook Wal-Mart in the Fortune 500. Meanwhile the total compensation of Exxon-Mobil’s CEO the same year was over $29,000,000.
- GENERAL ELECTRIC: In 2009, General Electric ― the world’s largest corporation ― filed more than 7,000 tax returns and still paid nothing to U.S. government. They managed to do this by a tax code that essentially subsidizes companies for losing profits and allows them to set up tax havens overseas. That same year GE CEO Jeffery Immelt ― who recently scored a spot on a White House economic advisory board ― “earned total compensation of $9.89 million.” In 2002, Immelt displayed his lack of economic patriotism, saying, “When I am talking to GE managers, I talk China, China, China, China, China….I am a nut on China. Outsourcing from China is going to grow to 5 billion.”
- WELLS FARGO: Despite being the fourth largest bank in the country, Wells Fargo was able to escape paying federal taxes by writing all of its losses off after its acquisition of Wachovia. Yet in 2009 the chief executive of Wells Fargo also saw his compensation “more than double” as he earned “a salary of $5.6 million paid in cash and stock and stock awards of more than $13 million.”
Sunday, February 27, 2011
Two stories here: How Scott Walker can maintain school aids and why Bank of America laid less in income tax than you did
Thursday, February 17, 2011
Some implications of Walker's refusal to accept federal dollars
Loss of Federal Funding
(1) In December 2010, the federal government redistributed most of an $810 million fund that was to be used for light rail in Wisconsin — specifically, a Madison-to-Milwaukee line.[1] The funding was redistributed to other states when then-Governor Elect Walker vowed to kill the high-speed rail project.
• Wisconsin did not have to pay back the approximately $9 million already spent on the project or the $5 million in contractual cancellation fees.
• Wisconsin was allowed to retain up to $2 million to fund upgrades on Amtrak's existing Milwaukee-to-Chicago Hiawatha line. The total cost of the Amtrak upgrades, which was estimated to be $71.4 million, would have been fully paid for out of the $810 million in Federal dollars.
(2) This month, Governor Walker’s Administration returned $23 million in federal Stimulus dollars that were designated for boosting broadband connections in 380 Wisconsin communities.[2] Funds would have enabled 385 libraries and 82 schools, as well as some hospitals and law-enforcement units, to expand communications capabilities.
• The position of Governor Walker’s Administration was that the government’s mandates attached to the funds were too restrictive.
• Opponents argued that Walker effectively took away the construction jobs that would have come with the project and hurt Wisconsin’s efforts to be on the forefront of bridging the technological divide.
• Opponents also point out that AT&T, who owns the broadband infrastructure, happens to be a contributor to Governor Walker’s campaign.
(3) Also this month, the State Insurance Commission cancelled a program funded by a $238,000 Federal grant.[3] The funds would have enabled the State to contract with a health agency to assist consumers in navigating the insurance arena and help them file complaints.
• The position of Walker’s newly appointed Insurance Commissioner, Ted Nickel, was that this service is already provided through the State; therefore spending federal money on the same program was redundant.
• Opponents argue that the State does not regulate “self-funded” insurance providers, which account for half of the commercial insurance market. Users of this type of program, in their view, deserve assistance.
(4) Governor Walker has legislation, expected to be voted on this Thursday, to cut the statewide school fund by 1 BILLION DOLLARS. For MPS, this would mean a loss of approximately 200 MILLION DOLLARS when combined with other cuts.
(5) MPS has been advised that Governor Walker is considering refusing Title I funds, which bring in TENS OF MILLIONS OF DOLLARS IN FEDERAL AID FOR LOW-INCOME STUDENTS.
(6) The Wisconsin State Budget will be introduced on February 22, 2011. Preliminary reports suggest that the budget that Governor Walker will propose will cut up to $1 BILLION in General Aid funding for K-12 education. It is assumed that there will be significant cuts in other forms of K-12 funding as well.
(7) In addition, reports suggest that the ability for local school boards to raise revenues will be severely curtailed. CURRENT LAW ALLOWS FOR A PER-PUPIL REVENUE INCREASE OF $275; PRELIMINARY REPORTS SUGGEST THAT STATE LAW WILL BE CHANGED TO ENFORCE A PER-PUPIL FUNDING DECREASE OF $500. This would reduce the amount that the District could collect in state aid and property taxes. Multiplied across an entire student body, such a change likely will be devastating for school districts.
CONTACT INFORMATION RELATED TO SCHOOL FUNDING CONCERNS
The state’s budget process takes place over a series of months. If individuals are interested in improving funding for public education, contacting members of the Legislature will be extremely important.
► Find your State Senator and State Assembly Representative on the Web:
http://itmdapps.milwaukee.gov/electedreps/electrep.jsp
(1) Go to the website above, type in your address, and click on "Submit."
(2) The names of all your elected officials will appear. Scroll down toward the bottom of the page to find the names beside "State Senate District" and "State Assembly" district. Click on the name highlighted in blue, and a page will appear with the phone number and e-mail address of your senator or representative.
Telephone calls, voicemails, and letters have a meaningful impact as legislators make decisions about the budget. Engaging children in this activity can be an instructive civics lesson that may never be forgotten, so have your children also write and call.
Be heard.
To support public education in Wisconsin —
• A Penny for Kids. Cutting aid to schools and taking opportunities away from children is not the only way to balance the state budget. There are many alternative solutions, and the Milwaukee Board of School Directors, along with the Wisconsin Alliance for Excellent Schools, endorses “A Penny for Kids.” A one-cent increase in the sales tax would raise nearly $800 million and protect students and families from harm. Please consider getting involved and singing the petition online at A Penny for Kids.
• Tell Your School Story. Real life stories from families make a difference when it is time to vote in Madison. Make your voice heard in the legislature by sharing your story here.
• Milwaukee Families for School Funding. A number of advocacy groups have formed as the threat to K-12 education has increased. Consider forming your own group or joining an established effort such as Milwaukee Families for School Funding.