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View Full Version : Five companies stockpiled nearly $60 billion while cutting 64,000 jobs worldwide from



keyser soze
04-25-2012, 11:26 AM
About those job creators and why they need such special care...ie welfare.


One frequently cited rationale for corporate tax breaks is that companies will use the extra money to create jobs. They'd love to create jobs, we're told, if only they could afford to do so, and one more tax break will make that possible. Instead, we see that many companies are sitting on giant piles of cash and cutting jobs anyway.

The AFL-CIO's Paywatch includes some data on major corporate cash hoarders (http://www.aflcio.org/Corporate-Watch/CEO-Pay-and-the-99/Corporate-Cash-Hoarding-Holds-Back-Job-Creation)—five companies that added $57.8 billion to their cash stockpiles between 2007 and 2011 while cutting more than 64,000 jobs worldwide. (We can't know how many of those jobs were in the United States, because companies aren't required to tell us that.)Verizon, which leads the pack, having cut 41,100 jobs while its "cash holdings and short-term investments grew 311 percent to $14 billion at the end of 2011, from $3.4 billion at the end of 2007," is also a major corporate tax avoider. Verizon paid a negative effective federal income tax rate (http://www.dailykos.com/story/2012/04/09/1081956/-Two-dozen-Fortune-500-companies-paid-no-corporate-income-taxes-in-2011-?detail=hide) from 2008 to 2011 while chasing after more and more tax breaks (http://www.dailykos.com/story/2011/11/16/1037126/-Verizon-pays-a-negative-federal-income-tax-rate-then-pursues-more-tax-breaks?detail=hide) and trying to force its unionized workers into taking cuts to health care and benefits and job security (http://www.dailykos.com/story/2012/01/27/1059100/-Verizon-workers-are-still-fighting-for-middle-class-jobs-Help-make-tax-dodging-Verizon-take-notice-?detail=hide).
Verizon may be the worst, cutting jobs, trying to make jobs worse, and accumulating a Scrooge McDuck-style cash hoard, but it's not just Verizon. Nonfinancial corporate businesses had $2.2 trillion (http://www.aflcio.org/Corporate-Watch/CEO-Pay-and-the-99/Corporate-Cash-Hoarding-Holds-Back-Job-Creation) in liquid assets at the end of 2011, and the fact that they're just sitting on that is hurting the American economy:


According to the International Labor Organization (ILO), if U.S. nonfinancial corporations invested $508 billion of their excess cash holdings, U.S. GDP would grow an additional 1 percent to 1.6 percent a year between 2012 and 2014 and 2.4 million new jobs would be created.Another study by the Political Economy Research Institute found that if corporations and banks invested $1.4 billion in cash into productive investments and job creation, unemployment would fall below 5 percent by the end of 2014.


We know that helping these corporations accumulate more money doesn't create jobs or help the working economy. And if lower corporate taxes created jobs, the United States would be at full employment and looking into making second jobs mandatory, given our effective corporate tax rate. If corporations are going to act only in their own shortest-term self-interest, our policies and politics should at least reflect that, and make it mandatory for them to pay something approaching their share.

http://www.dailykos.com/story/2012/04/19/1084714/-Five-companies-stockpiled-nearly-60-billion-while-cutting-64-000-jobs-worldwide-from-2007-to-2011 (http://www.dailykos.com/story/2012/04/19/1084714/-Five-companies-stockpiled-nearly-60-billion-while-cutting-64-000-jobs-worldwide-from-2007-to-2011)

dadakarma
04-25-2012, 11:30 AM
^^ Job creators.

:roflmao:

It takes an astonishing degree of denial to keep believing the 'job creators' line of bullshit.

OFBUACMKA
04-25-2012, 11:47 AM
About those job creators and why they need such special care...ie welfare.

Heaven forbid a company strive for efficiency.

keyser soze
04-25-2012, 11:55 AM
:rofl:

OFBUACMKA
04-25-2012, 11:57 AM
:rofl:

Evidently, you have no idea what you're talking about.

dadakarma
04-25-2012, 12:00 PM
"Verizon, which leads the pack, having cut 41,100 jobs while its "cash holdings and short-term investments grew 311 percent to $14 billion at the end of 2011, from $3.4 billion at the end of 2007," is also a major corporate tax avoider. Verizon paid a negative effective federal income tax rate (http://www.dailykos.com/story/2012/04/09/1081956/-Two-dozen-Fortune-500-companies-paid-no-corporate-income-taxes-in-2011-?detail=hide) from 2008 to 2011 while chasing after more and more tax breaks (http://www.dailykos.com/story/2011/11/16/1037126/-Verizon-pays-a-negative-federal-income-tax-rate-then-pursues-more-tax-breaks?detail=hide) and trying to force its unionized workers into taking cuts to health care and benefits and job security (http://www.dailykos.com/story/2012/01/27/1059100/-Verizon-workers-are-still-fighting-for-middle-class-jobs-Help-make-tax-dodging-Verizon-take-notice-?detail=hide)."

"Efficiency" = code for GREED

OFBUACMKA
04-25-2012, 12:07 PM
"Verizon, which leads the pack, having cut 41,100 jobs while its "cash holdings and short-term investments grew 311 percent to $14 billion at the end of 2011, from $3.4 billion at the end of 2007," is also a major corporate tax avoider. Verizon paid a negative effective federal income tax rate (http://www.dailykos.com/story/2012/04/09/1081956/-Two-dozen-Fortune-500-companies-paid-no-corporate-income-taxes-in-2011-?detail=hide) from 2008 to 2011 while chasing after more and more tax breaks (http://www.dailykos.com/story/2011/11/16/1037126/-Verizon-pays-a-negative-federal-income-tax-rate-then-pursues-more-tax-breaks?detail=hide) and trying to force its unionized workers into taking cuts to health care and benefits and job security (http://www.dailykos.com/story/2012/01/27/1059100/-Verizon-workers-are-still-fighting-for-middle-class-jobs-Help-make-tax-dodging-Verizon-take-notice-?detail=hide)."

"Efficiency" = code for GREED

Blame the tax code. Do YOU pay more tax than required? Don't hate the player, hate the game.

Mainecoons
04-25-2012, 01:03 PM
Companies are trimming themselves to maximize profit rather than expanding. I think I've seen a figure of something like 2 trillion being sat on. Perhaps some might want to ask themselves whether a government with the highest business tax rate in the world, environmental extremism running rampant, a government headed by an individual who preaches class and racial divisiveness frequently, is a government and a country that sane people would invest in.

You're right, in this environment, tax cuts aren't going to accomplish a damn thing. Particularly when they just add to the rampant red ink of an out of control Federal government. Better to take the money and retire (small business) or invest it elsewhere. Hey, that's just what is happening! Surprise, surprise.