Monday, January 16, 2012

You're an Expense

This crap about job creation is just that -- crap. Let me put this as simply as possible:


The Republicans are for rich people who are euphemistically called "job creators" are really "profit maximizers". They are out to maximize profits. Here's the simple formula they live by:

The things in green are GOOD while the things in red are BAD. They want to maximize the things in GREEN and minimize the things RED. You are a RED THING. As long as your total compensation produces more revenue than it adds to expenses, things are OK. But the search for more profit is ongoing and in that search, one of the largest expenses for any company is your compensation. So, don't let them fool you, you are an expense. And the first chance they get, they will send your job overseas where the compensation is very low.

Oh, and by the way, your total compensation is made up of parts. There's your salary and your benefits, both of which are bad things. Here in the U.S., the benefits portion of your compensation, is supplied by companies who are also trying to maximize THEIR profits. Wait a minute, these benefits companies (insurance companies, health care providers) are maximizing THEIR profits? But doesn't that ADD to the expenses of your company!?

You bet, and therein lies a major problem for you. You are an expense and the profit-maximizing efforts of profit-making enterprises which supply benefit services to YOUR company are increasing your company's expenses and helping your company decide to eliminate your job.

So when a Republican politician tells you that they are creating jobs, don't believe them. It's all BS.

Friday, January 6, 2012

Payoffs of Lobbying

The American Jobs Creation Act benefited hundreds of multinational corporations with a huge, one-time tax break. Without the law, companies that brought profits earned abroad back to the U.S. had to pay a tax rate of 35 percent. With the law, that rate dropped to just over 5 percent. It saved those companies billions of dollars.

In a recent study, researchers Raquel Alexander and Susan Scholz calculated the total amount the corporations saved from the lower tax rate. They compared the taxes saved to the amount the firms spent lobbying for the law. Their research showed the return on lobbying for those multinational corporations was 22,000 percent. That means for every dollar spent on lobbying, the companies got $220 in tax benefits.

Yep, that's right 22,000% and you wonder why special interests give money to politicians? It isn't for the benefit of each American Person -- unless, of course, you count corporations as people like the Supreme Court does.