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Bill Knight – July 3
Wed July 2, 2014
America’s Unpatriotic Corporations
As flags unfurl, fireworks explode, and independence celebrated this week, patriotism seems absent from many corporate boardrooms, and an effort to encourage America-first business with roots in west-central Illinois lies dormant since being introduced eight years ago.
Last month, business lobbyists pressured Congress for a “tax holiday” to let corporations “repatriate” billions of dollars of profits earned overseas and untaxed. The move would let companies “return” the money to this country at a tax rate of about 5 percent instead of the 35 percent “marginal” rate (before deductions).
U.S. corporations have offshore profits of more than $2 trillion, according to the research firm Audit Analytics. Tax havens permit them to escape their share of the nation’s costly obligations. Leading the group of corporations with money off-shored in foreign accounts are Apple, General Electric and Microsoft.
Recently, U.S.-based Medtronic announced its intention to buy the Ireland-based Covidien for $43 billion and move its “principal offices” to Dublin to avoid U.S. taxes. Senator Carl Levin, the Michigan Democrat, commented, “These transactions are about tax avoidance. Corporations [are] shifting their tax burden onto their competitors and average Americans.”
U.S.-chartered corporations enjoy incentives and bailouts, publicly-financed research and other privileges, and still resist contributing to society’s expenses, from the infrastructure that companies use to the subsidies they demand.
Some policymakers say rather than rewarding tax avoidance, outsourcing, etc., government should reward responsible business practices that recognize corporations’ responsibilities to employees, customers and, yes, the country, as much as shareholders.
U.S. Rep. Jan Schakowsky (D-Evanston) and 12 co-sponsors introduced the Patriot Corporations of America Act in 2006, when on the same day it was referred to committee and died. Based on research by Monmouth College political science lecturer Robin Johnson and former State Rep. Bill Edley of Macomb, the bill would have given preferential treatment in government contracts and a 5-percent tax cut to corporations that produce at least 90 percent of their goods and services in the United States; comply with federal regulations on labor relations, consumer protection, and the environment; contribute a minimum of 5 percent to a portable pension plan; remain neutral in worker organizing drives; and refrain from price-gouging customers.
Such incentives would have been paid for by closing corporate off-shoring loopholes and trimming some tax breaks for millionaires.
Then, Edley said, “The bottom line is, we’re saying that we’re going to target the tax incentives for corporations to companies that care as much about the American worker as they do about the American market. It’s fine if they want to move to Mexico. But why are we providing the tax incentives for them to do it?”
That’s a reference to Maytag, which in 2004 moved 1,600 Galesburg jobs to Reynosa, Mexico, to make its profitable operation even more profitable, despite the cost to everyday Americans – who buy about 90 percent of the corporation’s products.
Schakowky said, “Our government continues to provide carrots – and no sticks – to companies harming our economy. We must stop rewarding outsourcers and tax dodgers, and start rewarding companies that care about America and American workers.”
Where is the U.S. Chamber of Commerce in promoting business loyalty to the nation?
Where is the American Legion, which claims to advocate for Americanism?
Consumer advocate Ralph Nader has written about corporations and American ideals.
“It is our country that chartered them into existence and helped ensure their success and survival,” Nader said. “And these corporations now wield immense power in our elections, in our economy, over our military and foreign policies, and even in how we spend time with our friends and families.
“The 4th of July is an ideal time to call out these runaway corporate giants who exploit the patriotic sensibilities of Americans for profit,” he continued, “but decline to be held to any patriotic expectations or standards of their own.”
Schakowsky added, “Patriot Corporations are an expression of the American spirit of our forefathers and -mothers when they took that brave step of declaring our independence and creating the United States of America.”
Contact Bill at Bill.Knight@hotmail.com; his twice-weekly columns are archived at billknightcolumn.blogspot.com
The opinions expressed are not necessarily those of Tri States Public Radio or Western Illinois University.
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