Yves Smith: Wisconsin Union Battle -- A Convenient Distraction From the Real Culprit in State Budget Woes

Wisconsin Union Battle: A Convenient Distraction From the Real Culprit in State Budget Woes
by Yves Smith
Naked Capitalism

The first is that the collapse in tax receipts was the result of the global financial crisis. That’s the 800 pound gorilla in the room that everyone seems to ignore. But second, as a very good article by Richard Wolff in the Guardian stresses, is that corporations no longer pay their fair share of total taxes:

During the Great Depression, federal income tax receipts from individuals and corporations were roughly equal. During the second world war, income tax receipts from corporations were 50% greater than from individuals. The national crises of depression and war produced successful popular demands for corporations to contribute significant portions of federal tax revenues.

US corporations resented that arrangement, and after the war, they changed it. Corporate profits financed politicians’ campaigns and lobbies to make sure that income tax receipts from individuals rose faster than those from corporations and that tax cuts were larger for corporations than for individuals. By the 1980s, individual income taxes regularly yielded four times more than taxes on corporations’ profits…

Corporations repeated at the state and local levels what they accomplished federally. According to the US Census Bureau, corporations paid taxes on their profits to states and localities totalling $24.7bn in 1988, while individuals then paid income taxes of $90bn. However, by 2009, while corporate tax payments had roughly doubled (to $49.1bn), individual income taxes had more than tripled (to $290bn).

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A Reply to a Mass Email That All We Need to Do Is Remove the Current Elected Officials and Our Political System Will Be Fixed

[My response to a mass email sent by a relative trying to convince people that what need to do is to get rid of the current elected representatives and that will solve our current social/economic problems]

I would like to encourage you all to reconsider what the problem is here. You can do whatever you want to your elected officials, but they are not really the true problem. I would encourage you to look into the recent Supreme Court decision on "Citizen United vs the US" and consider the implications of unregulated corporate cash influx into our so-called democratic elections. The problem is the unchecked flow of corporate money in our democracy and the dependence of our elected officials on that money to get elected (and re-elected). Get rid of many as you want, the new ones will still be dependent on the same masters.....

Take, for instance, the Tea Party, which is corporate funded and is not about dismantling the current system. What they are about is deregulating the social system in order to continue to benefit our country's elites (this is not to discount the legitimate worries of the Tea Party masses, this is to say they are being misled by their corporate funded leadership). The first thing newly elected Tea Party Senator Rand Paul did here in KY was to seek to continue the tax cuts Bush had temporarily instituted for those that make over 250,000 dollars.

A current report from Democracy Now lets us know how bad it is for working people who have lost their jobs and/or have seen their wages frozen/cut these past few years:

Food banks across the country are serving a record number of people and many agencies are struggling to meet the demand ahead of Thanksgiving. In Texas, the Montgomery County Food Bank served a record 31,000 people last month. The Washington Post reports the demand for meals at the Arlington Food Assistance Center in Virginia
has jumped 50 percent in the past two years. In the Washington DC area, the Capital Area Food Bank is on pace to distribute a record 30 million pounds of food this year, an increase of more than 10 percent since 2009. According to the U.S. Department of Agriculture, the number of families seeking assistance from food pantries jumped from 3.9 million in 2007 to 5.6 million last year. The number of U.S.
households deemed "food insecure" also exceeded 50 million last year, amounting to a record 14.7 percent.

... and then this report comes out in the NY Times about all-time record corporate profits last quarter:

Corporate Profits Were the Highest on Record Last Quarter

Record "profits" for the few through the exploitation of workers. Record "growth" for corporations through systemic economic disparity and extreme poverty for the majority of workers. Currently 1 in 7 families in America are at or below the poverty line ($22,000 for a family of four), in KY it is 1 in 4. This is disturbing to me.

Michael

Cliff Schecter: NRA -- It's Good to Live Like a King

(This is the second part of a special report, the first part can be found here: Shoot first, ask questions never)

NRA: It's good to live like a king: Rather than acknowledging their membership base, the NRA seems to do what it can to simply make the most profit.
by Cliff Schecter
Al Jazeera

There was a time, back before the late 1970s, when the National Rifle Association (NRA) represented their members. But not anymore.

Once they fully re-entered the world of politics on the heels of the Cincinnati Revolt, they became corrupted by the very special interest politics from which they claim to protect their members.

With their decision to reject the calculated negotiation of their previous "old guard" board members, who for example, came out publicly in support of a proposed ban on .38 Specials by then-senator Birch Bayh of Indiana, they embarked upon a "no compromise" plan of action for the future.

"This, of course, made them natural allies of the gun manufacturers, who like arms dealers everywhere are far less interested in who they are selling weapons to than that they sell as many weapons as possible."

Cliff Schecter


This, of course, made them natural allies of the gun manufacturers, who like arms dealers everywhere are far less interested in who they are selling weapons to than that they sell as many weapons as possible.

There is plenty of circumstantial evidence that the NRA's mission has nothing to do with its members, but everything to do with protecting the profits of the gun manufacturers who support the organisation with big bucks - not to mention pay the million-dollar-plus salary of the NRA's executive vice president, Wayne LaPierre.

After all, those lunches at The Palm aren't going to just pay for themselves.

In the December issue of the American Institute of Philanthropy, its "Charity Rating Guide & Watchdog Report" showed that when including all categories of "compensation" LaPierre came in fourth on the "charity" list with a healthy $1.281 million per year. Apparently, some non-profits can be profitable for some.

In February of 2006, a blog called Gun Guys run by the Freedom States Alliance, a 501(c)(3) organisation working "to reduce gun violence in America" found that LaPierre's then-million dollar package was the equivalent of 35,000 NRA membership renewals.

One wonders whether these members know that not only are the views of LaPierre and the rest of his leadership team way out of touch with its membership - who overwhelmingly support universal background checks for gun buyers and stopping those on terrorist watch lists from enjoying easy access to firearms (see Part I of this series for poll numbers) - but that they are also subsidising LaPierre's lavish lifestyle.

This might explain the NRA's need for constant crisis marketing (Obama's coming with the Legion of Doom to take your guns!) to misinform the public at large and shake their members' wallets loose - the NRA's very own "We've got trouble! Right here in River City!" routine.

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