Social Welfare Programs Versus Corporate Welfare Programs

There are two major differences between social welfare programs and corporate welfare programs. Social welfare programs are meant to assist the poor, and 100% of all of the money is spent in the U.S. Corporate welfare programs are meant to help ex-patriot U.S. corporations keep Americans unemployed, and 100% of the proceeds are sent and/or kept outside of the U.S.

The use and cost of social welfare programs have increased at the same rate as unemployment, not just nationally, but also regionally. Unemployment has increased with the increased cost of corporate welfare.

With 51% of Americans earning less than $50,000 per year, 1/2 of those live at or below the Federal Poverty Level. Both of those are increases within the last 10 years because of the loss of employment opportunities. If tax paying Americans want more middle class Americans paying taxes, they need to tell Congressional reps to stop sending jobs offshore and stop giving ex-patriot U.S. corporations tax free income.

What is corporate welfare?
Tax breaks, subsidies and exempted fees provided to ex-patriot corporations that are not enjoyed by onshore companies. Assets and/or business entities that are shown to be outside the U.S. that provides no real business purpose or use except to allow tax evasion. Over the next 10 years, the U.S. could be missing out on several trillion dollars of corporate taxes.

What companies get it?
Absolutely every ex-patriot U.S. manufacturer that has any office, contracted facility and even a P.O. Box gets to evade U.S. taxes. The next time you go to a department store, and look at any product label, that company gets corporate welfare.

Who pays for it?
Households earning less than $250,000 per year and the poor. Middle class Americans pay higher per capita effective tax rates than "wealthier" Americans. Micro, small and macro businesses that do not have offshore assets pay higher effective tax rates on average than ex-patriot U.S. corporations.

If this concerns you, ask your House and Senate Representatives this question and then demand that they revoke these tax evasion schemes:
Dear Representative/Senator:
Have you ever sponsored, co-sponsored and/or voted in favor of tax breaks for ex-patriot (multinational) U.S. corporations that have fake and/or real operations offshore that onshore corporations do not enjoy?
There is no demonstrated evidence that these tax evasion schemes create jobs in the U.S.; have you made any effort to revoke these tax evasion laws?

We can't say it any better or clearer than what is explained by these organizations:

The Fiscal Times: Offshore Tax Havens

Reuters: Corporate Tax Breaks

Jack Rasmus: Jobs, Offshoring, and the US Budget Deficit

Citizens for Tax Justice: Tax Holiday

Tax Justice Digest: Closing Tax Loopholes does not cost jobs

Citizens for Tax Justice: Corporate Tax Reform

Business Against Tax Havens: The Case Against Overseas Tax Havens

Citizens for Tax Justice: Tax Holiday

Senator Carl Levin, Michigan: Tax Haven Abuse Act

The Huffington Post: Jobs Remain A Bust

Citizens for Tax Justice: Tax Evasion abuses

Center on Budget and Policy Priorities: Extension of High-Income Tax Cuts Would Benefit Few Small Businesses

CNN Politics: GOP Blocks Outsourcing Bill

The Huffington Post: U.S. Chamber of Commerce wants Jobs Outsourced

The Huffington Post: GOP, U.S. Chamber Of Commerce want Jobs Outsourced

The Socialized Business Model

Our members of Congress have made it very clear that if you are a middle income earner or a small business owner, you have the sole responsibility of the economic recovery of the United States. In addition to being the sole economic recovery vehicle, you are also expected to support lower income persons with higher taxes to pay for the increased use of social service “entitlements” and charitable contributions because of the subsidized exportation of 10 million American manufacturing jobs.

For the last 30 years, or more, lobbyists, large financial interests and ex-patriot manufacturers have contributed billions of dollars to Congressional elections, reelections and political parties to crash the economy. These contributors have in effect bought themselves and their client’s tax laws that reward poor management. This socialized management style has become so pervasive that it has become part of the “normal part of doing business” in the US. Executives of large corporations are free to make risky financial and logistic decisions for the corporations they manage knowing that all of those failures will be subsidized by tax payers.

Prior to the bailouts in 2008, 2009 and 2010, other socialized business programs are the tax evasion schemes provided starting in 1989 and more in 2001 and 2003. These tax evasion policies allowed major manufacturers to relocate production offshore to countries with which we have free trade agreements and China. Another tax evasion policy allows ex-patriot corporations, billionaires and millionaires to hold financial and other liquid assets offshore in countries deemed as “tax havens”; countries with a zero percent tax rate. This money is then laundered through foreign based manufacturing and the stock market, thereby entering the US tax free; these are considered liabilities and therefore tax exempt or deductible.

This socialized business model has created a sustained official unemployment rate that has remained close to and higher than eight percent since 2007. Although the unemployment rate has decreased, this is not an indication that the economy is growing for main street Americans. There are two primary factors creating this lower unemployment; the first is the number of people who have exhausted their unemployment insurance, the second is people taking lower paying jobs.

As the designated financial recovery vehicle for America, our middle income earners and small businesses must now demand that our elected representatives in Washington create real tax reform that will reduce the impact of the socialized business model that we are subsidizing.