Thanks to Globe and Mail for this one.

Ever wonder how large corporations avoid paying income tax?

Most of America’s largest publicly traded corporations — including several that are receiving billions of dollars from U.S. taxpayers to finance their recovery — have set up offshore operations that could help them avoid paying U.S. taxes on their profits, a government study released yesterday found.

American International Group, Bank of America, Citigroup, and Morgan Stanley are among the companies that are getting bailed out by U.S. taxpayers while having subsidiaries in locations where they can avoid paying U.S. taxes, according to the Government Accountability Office.

Read the full story here.

It’s not a new thing for companies to try to lower their tax burden in order to maximize profits.  That has occurred since the beginning of taxing coporations.

However, what is relatively new in capitalist economies is for government to bail out these institutions when they begin to fail.  So, I’m still curious as to exactly how these guys will ever be allowed to fail…  What will it take for GM or Citigroup to actually declare bankruptcy and shut down entirely?

Perhaps they could invest all of the bailout money into toxic toys for children.  Would that be enough to outrage the public and make the politicians fear giving away more taxpayer money to these greedy bastards?

What if they decided to publicly burn all of the cash on their front lawns?  Besides that being a federal offense, I bet Nancy Pelosi and George W. Bush (and soon to be Barack Obama) would still stand up and shout, “We can’t allow these companies to fail!  It would bring about dire consequences for the economy!”

How about if they fired all of their workers and made a public display of clothing the executives in golden underwear?  Perhaps that would entice the politicians to disavow support for the corrupt practice of gambling with the public’s money.

I’ve lost all faith.

I don’t know if anyone misunderstood me, so I will be frank. This country is the best country that has existed in recent history. I say that because we have kicked the entire world’s ass and occupy nobody. This country has bailed out the world and we don’t even require the ones we have saved to like us. (Check your encyclopedia under “France”.) And if you think we are occupying Iraq, fighting this war for oil, why are we paying the prices we are paying? And not to George Bush. I can’t believe how stupid some people are. That is why I wish Al Gore’s internet was never born. It gives the stupid a voice. Wake up, folks. Just because you saw it on the internet doesn’t mean it is true. (where was I???) oh….

I don’t give 2 sh**s about the American auto industry. If YOU are worried about YOUR job, YOU are self-centered. IF the American auto industry deserves to be preserved, then it should be because the American auto industry makes a superior product, sells it cheaper, and supports it better than anyone else in the world. (please don’t tell me you think this is the case). …our manufacturing capacity…. geez, lady, you give me gas. I just wish I could put it in my tank.

America! You are still the best country. I firmly believe that. But, it is not because your union wages are the highest in the world. I heard ages ago that the reason America will fail is because technology has been used to make money, not to improve the quality of life. And now, I am afraid it is true. Take another attitude, give a lesser person, or country, a leg up. Quit worrying about your personal situation. IF you are thinking globally, (you yuppie putz), then let the third world country win one. Who cares if Kia sells more cars than Ford, if they are ‘better’ cars? (I know the answer, it is the UAW and Ford employees. SCORE!!!).

Be honest with yourself, and hope you can still vote secretly. Go get ‘em, brothers!!!

Sincerely, and please respond with more venom.

Duke

Considering the extreme fallout from failure of the auto industry has caused me to review history for similar cataclysms from the past. Thank goodness we didn’t allow these two major strongholds of American consumerism to fall by the wayside in preference for movement forward.

The slide rule industry. With the unfair competition imposed by the nerds of society, the slide rule unions are calling ‘FOUL!’. Quotes from union pickets in front of upstart companies Sierra Online and MicroSoft range from “You can’t send a man to the moon using a keyboard! Ridiculous! You have to have a slide rule. Just take a look at the movie Apollo 13!” to “If we keep buying computers, what will our kids cipher on?” And this gem, “Google? Nobody could ever count that high, anyway!”

The Buggy Whip industry. There are more and more disturbing sightings of the so-called ‘horseless carriage’ these days. The idea that a refined gentleman would prefer transport in one of those hideous contraptions instead of a carriage? Preposterous! Robert Ezekiel, local steward of IBOB (International Brotherhood Of Buggywhipmakers) stated that the demise of the buggy whip manufacturing complex would spell doom for the entire livelihood of the whole world. States IBOB’s Bob, “Without buggy whips, the horses will not move, paralyzing completely the economy of America. Without buggy whips, there is no reason for leather, thus there is simply no reason to raise cattle. America cannot be expected to wear enough shoes to absorb the excess.” (editor’s note: the steward of the cattle-for-beef union remains in a coma from a random act of violence and could not be revived for comment on this article).

Clearly, if either of these industries is allowed to fail, it will spell certain doom for all of America. Please, learn from history. And don’t forget what $4 per gallon gasoline felt like.

“The bailout died after failing 52-35 on a Senate procedural vote.”

Thank god.  That’s the verdict according to Fox News.

Not that Fox is to be trusted entirely, but…  seems like a pretty real statistic.

http://www.reuters.com/article/politicsNews/idUSTRE4BA4S420081211

Any hopes at “change” from the current bailout mentality should be readily dashed.

“President-elect Barack Obama said on Thursday he hoped a congressional deal to bail out the struggling U.S. auto industry could be reached this week, saying again that Detroit’s “Big Three” automakers could not be allowed to collapse….”