America’s Middle Class Is Being Sucked Dry By Corporate Leeches

Mar 17 2011 Published by under Uncategorized

Time after time conservative pundits have gone on Fox News and talk radio shows, like Rush Limbaugh and blogged about it. America is in a debt crisis. They tell us we’re spending too much money. While they are right, the problem is with who they are blaming the spending on. They claim it’s the entitlement programs for the poor and middle class that is putting us further and further into debt, and they’re wrong.

How many billions of dollars have been transferred from the public trust into the hands of the wealthy through tax breaks? These tax breaks for specified industries or companies are the way that these large multi-national corporations take away from our schools and public safety. This causes property taxes on small businesses and middle class homeowners to rise. It’s a transfer of wealth.

In a latest article By Peter Callaghan | The (Tacoma) News Tribune he writes about the NFL negotiations. You, the average taxpayer have built NFL stadiums across this country. All in the name of “job creation”.

When the owners asked taxpayers around the country for hundreds of millions of dollars for new stadiums, some of you objected, and some owners had to pick up some of the cost. That has left them nearly broke and able to pay the average quarterback only $10 million a season.

At least we think they’re nearly broke. The owners refused to show their finances to the players, just as they refused to share them with taxpayers. They are, after all, private businesses. Except when they aren’t, like when they demand tax subsidies disguised as “public-private partnerships.”

And they are under pressure to keep up with the Joneses, specifically, Dallas Cowboys owner Jerry Jones. While Qwest Field cost just $420 million, the new Cowboys Stadium came in at $1.15 billion, with the taxpayer share coming from sales, hotel and car rental taxes.

Corporate profits are at an 18 year high,according to Bloomberg.

Margins will climb to 8.9 percent in 2011, the highest level in at least 18 years, according to data compiled by Bloomberg on non-financial companies in the Standard & Poor’s 500 Index through March 11.

“The economy seems to be doing well and earnings are on the recovery path, which companies wanted to be sure about before they raised their dividends,” said John Carey, a Boston- based money manager at Pioneer Investments, which oversees about $250 billion.

So why do they need tax breaks? Tax breaks, under the “conservative plan” of Milton Friedman and President Reagan were supposed to increase profitability, which would increase hiring. Instead today, they are seeking more and more from the taxpayers only to benefit themselves.

As corporations around this country and industries in every state come begging for a tax break or a subsidy, they in turn complain about paying their share of the cost of government. If these companies and the conservatives truly believe in the “free market” there shouldn’t be preferential tax breaks and give-a-ways.

These corporations benefit more from our public infrastructure, safety, education, and courts than anyone else. Since businesses hire a students educated in our public schools, they should financially contribute through tax payments. A business calls the police or fire department. A business uses our court system to enforce contracts, yet these moochers don’t want to pay for it.

Instead they are asking our children to attend school in larger classrooms. They are cutting back on funding for the Security and Exchange Commission, and Wall Street oversight. They are reducing Medicaid funding that provides many working poor with the ability to stay healthy and contribute to society. All this and much more is because they (big business) have sucked the money out of the public trust for their own personal gain. It is truly un-patriotic and un-American.

7 responses so far