IN A SEASON OF campaign rallies and million-dollar ad buys, President Bush opted for one decidedly understated ceremony. On October 22, just 11 days before the election, he boarded Air Force One to sign $137 billion in new tax breaks for corporate America, one of the largest industry giveaways in two decades. This was his fifth major tax cut, but this time there was no glad-handing, no photo opâjust a one-sentence press release. The president had nothing to brag about. His signature expanded exactly the sort of tax avoidance he had railed against at a campaign rally that morning: "The rich hire lawyers and accountants for a reason when it comes to taxes," Bush had told a roaring audience at a hockey arena in Wilkes-Barre, Pennsylvania. "That's to slip the bill, and stick you with it." It was an apt description of the vaingloriously named American Jobs Creation Act of 2004. Though the law began as an effort to end a $5 billion-a-year corporate tax subsidy that had been declared illegal by the World Trade Organization, it had grown into a hydra-headed beast. The law's principal author, Ways and Means Committee chairman Bill Thomas (R-Calif.), jokingly referred to it as "Miss Piggy" on the House floor. Arizona Senator John McCain decried "the worst example of the influence of special interests that I have ever seen." The president's own Treasury secretary, John Snow, bemoaned the myriad "tax provisions that benefit few taxpayers." Top White House economists protested one new loophole that would cut $3 billion, primarily from the taxes of pharmaceutical and high-tech companies, without yielding "any substantial economic benefits." Almost every industry in America received special favors. The tax cuts included half a billion for shipbuilders Northrop Grumman and General Dynamics, $100 million for NASCAR racetrack owners, and $9 million for arrow manufacturers. Importers of Chinese ceiling fansâlike Home Depotâgot a break, as did energy companies angling to build a natural gas pipeline in Alaska. About $231 million went to reduce the taxes of shopping-mall developers in the states of key House and Senate members. Four Texas companies received special dispensation to shelter their profits in the Caribbean. The law also cut taxes on railroads, coffee roasters, timber firms, and Hollywood studios. General Electric received tax benefits worth more than $1 billion over the next decade. "From the beginning to the end, this was designed by lobbyists," says C. Eugene Steuerle, codirector of the Urban-Brookings Tax Policy Center, who spearheaded corporate tax reform as a member of the Reagan Treasury in 1986. "The only question was whether this was the worst tax bill in our lifetime or the worst tax bill in U.S. history." WHEN REPUBLICAN leaders took control of the House of Representatives a decade ago, they vowed to end such legislative fiascoes. Unfettered markets rather than government intervention, they proclaimed, would determine Wall Street's winners and losers. In the Contract With America, Republicans promised a return to "fiscal responsibility" and to "end the cycle of scandal and disgrace" by which Democrats pandered to special interests. But far from living up to this rhetoric, the GOP leadership has presided over an explosion of new tax loopholes and pork-barrel spending. "It's worse now than it was under the Democrats," says Stephen Moore, president of the archconservative Club for Growth. "The Democrats invented the game, and Republicans perfected it." http://motherjones.com/politics/2005/03/make-your-taxes-disappear
Gee FT I have to applaud you, your expending your reading list. I'm surprised you didn't call them Crazy Christian GOP members...... Every year about this time I'm forced to rehash just how much I pay in taxes. I hope they slash everyone's taxes and triple-quadruple slash the budget, ( that is if they can get their Democratic counterparts to actually pass one). It's time to help and build to the economy from the taxpayer's interests instead of increased taxation feeding an grotesquely over-sized, over-reaching Government. Everyone, except maybe "posterboy" Buffet, is all for keeping more and seeing our Government spend a lot less. Good try, and keep up your new homework.
well, as long as people like you keep voting in republicans who will give perks and loopholes to those who dont need it you will be left to make up the difference in needed revenue. you are being played for a sucker by the republicans.
Flattening the tax code is the only way to get rid of special interests getting special deals, which side is currently talking about flattening the tax code, and which side is fighting it tooth and nail?
I see the President will be talking about the "Buffet Rule" today, now I understand the timeliness of the post......... orders coming down to the troops
Dont be so anti corporation. American corporations are the reason why America can effortlessly project soft power around the power. Some guy in Ulaanbaator, mongolia might not know who obama is but they certainly know COKE and PEPSI. Corporations are the reason why Americans continue to have the highest standard of living in the world. So just stop it.
so, they shouldnt be asked to pay at least what average americans pay to keep the government going that enables their ability to project power around the world? 47% of corporations now pay no tax and the effective tax rate on corporations has fallen to 13% at a time when corporate income is at all time highs. they seem to have it very good right now.
1) I don't believe you that 47% of corporations pay no tax. 2) Even if that is true it does not mean the tax rates are incorrect it's evidence of political cronyism. I could form a corporation (sub-chapter c, double taxation) or professional corporation(special tax rates apply how nice 35%) but why would I want to, my taxes automatically would go to the HIGHEST level possible for the money earned.