Rising federal spending and huge deficits are pushing the nation toward a financial and economic crisis. Policymakers should find and eliminate wasteful, damaging, and unneeded programs in the federal budget. One good way to save money would be to cut subsidies to businesses. Corporate welfare in the federal budget costs taxpayers almost $100 billion a year.

http://www.cato.org/doc-download/sites/cato.org/files/pubs/pdf/PA703.pdf


Interesting read.


Fishy

Since right wingers hate welfare, and love the free market, it's amazing how hard they fight to give away tax dollars to market participants who give them the most donations.

Fish on...

Todd

Oil and Gas Tax Breaks:
$2.4 billion a year

http://www.thirdworldtraveler.com/Corporate_Welfare/Oil_Tax_Breaks.html

Fishy

Tax breaks for billionaires. Loophole for hedge fund managers costs billions in tax revenue

This policy memo focuses on the privileged tax treatment given to hedge fund managers that results in a conservative estimate of over $6 billion in forgone tax revenue.

http://www.epi.org/publication/pm120/

Fishy

So who do they blame for the budget deficit?
People on public assistance.
JFC wake up you dumb fuks and smell the coffee.

Cut it ALL

No more free passes for anyone or anything, except welfare and unemployment for 6 months MAX with mandatory drug testing.

Cut it ALL

Remember everyone, they're not corporations they're job-creators. You can't be against them or you're a job killer. F corporate welfare. I believe their primary impact is to enrich shareholders. And I don't fault the companies for taking the tax breaks offered to them to relocate, or invest, whatever. That's just good business.

The problem is that tax credits/rebates are never counted like spending when all the "Pay as you go" crowd is in the room.

Now the facebook one is interesting-- I'm definitely not an accountant, and Hank asks:


I raise this point because I believe the corporate tax rate that facebook would pay on this $$ is *lower* than the individuals paying ordinary income (for typical FB employees). So since these were stock option grants -- in the 100's of millions of $$ -- I believe having this stuff taxed on the individuals (and not on the corporate return) is actually a net positive for revenues. Unless you're arguing for doubly taxing it?

B

Closing loopholes is necessary...and is a drop in the bucket compared the the real coporate welfare...subsidies to multi-billion multi-nationals.

That's the real corporate welfare...not tax loopholes.

Fish on...

Todd

Hank,

In my experience, it's not a capital gain on a stock option, it's ordinary income. You have an option at $10... The day you exercise that share is a taxable event -- say the market price is $20 that day, incur $10 in ordinary income regardless of how long you held the option.

After that, you own the share, future earnings are st/lt capital gains based on how long you hold from that point.

So I think the whole enchilada in this case is ordinary income.

If "free markets" were anyone's cup of tea we wouldn't be talking about corporate welfare and multi-billion dollar subsidies.

Fish on...

Todd

They should have crashed the jet into both houses of Congress, not the Pentagon. Osama might have picked up a few fans.

WOW! I'd only ever been around NQSO's versus these ISO/Statutory Stock Options. Is this a relatively new thing? Seems like a MEGA loophole that your exercise (which is instantaneous--and realizes income of the difference between your basis and the current FMV) isn't a taxable event.

I read a bit on this because it's new to me... Sounds like the AMT may/does apply though -- but the AMT and its application anywhere confuses the crap out of me so I'll just be happy that I learned some new stuff to go read up on.

Corporate welfare in the federal budget cost tax payers $100 billion annually.
So why are you anusbrains saying we need to cut entitlements?
You can't honestly be that stupid, can you?

I'm saying cut it all. Loopholes, corp. welfare, tax breaks for wall street, entitlements...the whole shebang. We are OUT of money. It'll never happen, but it sure as s.hit needs to...

Sure Hank and I just threw a dart at the board and hit it. Go copy and paste some more cartoons.


Fishy

Drug testing is silly...but if we're going to do it, then everyone making over 100K for a company that receives any subsidies or exercises any tax loopholes gets drug tested, too.

Fish on...

Todd

New Study: Offshore Tax Dodging Blows $40 Billion Hole in State Budgets


Washington, February 5th – With states across the country facing dire fiscal crunches and lawmakers in Washington gearing up for more budget showdowns, U.S. PIRG Education Fund released a new study revealing that state budgets were hit collectively with $40 billion in lost revenue from offshore tax dodging last year. Many of America’s wealthiest individuals and largest corporations use tax loopholes to shift profits made in America to offshore tax havens, where they pay little to no taxes. U.S. PIRG Education Fund was joined at the event by Congressman Lloyd Doggett, the Main Street Alliance, the American Sustainable Business Council, and a small business owner.

At the national level, offshore tax loopholes cost federal taxpayers $150 billion each year, which would be more than enough to cover the scheduled spending cuts that are set to take effect in just a few weeks.

http://www.uspirgedfund.org/news/usf/new...e-state-budgets

Fishy

ssf, why do you hate 'Merica so much?

Fish on...

Todd

As everybody should know corporations don't pay taxes from that big bucket of money they are hiding, they increase the cost of goods or services to cover the taxes. As far as corporate "welfare" goes, the corporations can keep prices lower by moderating their tax liablity. Take the "welfare" away and prices will rise.

Yeah, just like they'll be "Job Creators" when they get the big tax cuts, right?

That's what's called the vaunted "free market", JG...if you can't beat your competitor's pricing, then down you go. If you can't produce your product at a profit and make decent sales, then down you go.

Fish on...

Todd