Wednesday, January 27, 2016

- 10 Taxpayer Handouts to the Super Rich -




- Corporate welfare and entitlements for the top 1 % - .

A few of the giveaways to the rich - and how much they cost the US :


1. Tax Breaks for CEO bonuses ($7 billion/year)

The biggest corporations exploit a 20-year-old loophole that allows them to write off
   inflated compensation packages for CEOs,
   billing stock options,
   performance-based bonuses
to taxpayers.
-
In 2010,
the biggest corporations cost Americans $7 billion by writing off inflated executive pay.
     - That $7 billion could fund the annual budget for the National Science Foundation —
     - 11,000 scientific research projects each year
     - 26 Nobel laureates in the last 5 years.
Between 2007 and 2010, this loophole accounted for more than $30 billion in corporate welfare.

2. Tax cuts for luxury corporate jets ($300 million/year)

Currently, corporations get huge tax deductions by writing off purchases of
corporate jets, fancy cars-limousines , …
and chauffeurs …
These tax breaks for some of the wealthiest Americans cost the rest of us $300 million each year.

3. Big oil subsidies ( $37.5 billion/year )

Between $10 billion and $52 billion per year on corporate welfare for the fossil fuel industry .
OCI estimated that total subsidies to big oil – approximately -  $37.5 billion in 2014,


4. Pharmaceutical subsidies ($270 billion/year)


The pharmaceutical industry gets roughly $270 billion a year 
This is over $1,900.- per household in corporate welfare.
This is mainly due to the bill that George W. Bush signed into law in 2003,
which prevents Medicare from negotiating drug prices with pharmaceutical companies.
-
The biggest drug companies also make (a combined $711 billion in profits between 2003 and 2012)
by buying patents for drugs - largely developed with taxpayer-funded research,
then jacking up the price …


5. Capital gains tax breaks ($51 billion/year)


Capital gains, are taxed at a 20 %  -
real, actual work  35 %.
53 percent of Americans own no stock at all,
The richest 5 percent own two-thirds of the stock.
Only 10 percent of Americans have pensions,
The total amount of lost revenue was $256 billion between fiscal years 2012 and 2016,
or $51 billion a year over the last 5 years.
If investment income was taxed at the same rate as wages,
75 percent of that revenue would come from the richest 0.3 % of Americans;
92 % of that revenue from those making $200,000 or more per year.
The chart below shows what percentage of income each tax bracket makes from capital gains -




Chart courtesy of The Century Foundation.

6. Corporate tax subsidies from state and local governments ($80.4 billion/year)


In 2012,  -  tax breaks in 1,874 programs cost taxpayers $80.4 billion every year for corporate welfare in their state.

7. Big Ag ($18 billion/year)

Median income of commercial farm households  was $84,649 in 2011 —
70
% more than the average American household.
Farmers grow crops on land that is unproductive,
then - make money from insurance claims ...
In 2011, 26 farmers each got an annual subsidy of $1 million, or more .

8. Wall Street ($83 billion/year)

As big banks grow bigger,
the Federal Reserve lets them borrow at lower interest rates than other banks —
essentially subsidizing the continued growth of the big banks.
The 10 biggest banks get $83 billion per year in corporate welfare.

9. Export-Import bank subsidies ($112 billion)


The Export-Import (Ex-Im) bank, had a $112 billion portfolio,
of which $90 billion went to multinationals.
Most of that money went to 10 wealthy corporations.



10. Federal contracts for the top 200 biggest companies ($880 billion/year)


The top 200 companies spent $5.8 billion on lobbying Congress between 2007 and 2012.
Those companies received $4.4 trillion in federal contracts.






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The combined cost of these 10 corporate welfare programs is $1.539 trillion per year.

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The US spends 10 times as much on corporate welfare and handouts to the top 1 %
than on  welfare for working families …
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 Mainly from an article by :
 Tom Cahill | October 28, 2015
a writer for US Uncut based in the Pacific Northwest.
He specializes in coverage of political, economic, and environmental news.
You can contact Tom via email at tom.v.cahill@gmail.com.
---
with additional material from -

Economic Policy Institute
Oil Change International (OCI),
healthcareforamericanow.org.
Pew Research
The Guardian,
Century Foundation
Tax Policy Center
New York Times
Bloomberg report
Sunlight Foundation
-
Links in post …
-
And numerous uncredited sources …

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