TRUMPERNOMICS: The Goldman Sachs Doctrine of Unbridled Looting
THE FINAL TRANSFER OF AMERICA’ ECONOMY TO THE SUPER RICH!
http://mexicanoccupation.blogspot.com/2016/09/barack-obama-and-his-crony-bankstershow.html
THE GREAT DEPRESSION IS JUST AROUND THE/ALL CORNERS!
THE OBAMA DOCTRINE:
DESTROY AMERICA TO BUILD A MUSLIM-STYLE DICTATORSHIP WHERE
LA RAZA MEXICANS VOTE HIM PRESIDENT FOR LIFE
LA RAZA MEXICANS VOTE HIM PRESIDENT FOR LIFE
"He is intent on maximizing the damage he inflicted on
the country during the two terms of his faux presidency, having now
set up shop in Washington to pursue a post-presidency agenda advancing a
left-wing insurgency, civil unrest, racial conflict and the destabilizing activities of a shadow."
Productivity figures and job cuts expose Trump’s growth fraud
By Nick Beams
19 May 2017
19 May 2017
One of the
factors that led to the election of Donald Trump to the US presidency was his
commitment to boost the growth rate of the US economy, striking a chord in
industrial states hit by job losses and factory closures.
Just four
months into his presidency these promises lie in tatters. Underlying US
economic trends continue to worsen, amid increased financial parasitism. The
announcement by Ford that it will cut 10 percent of its global workforce is an
expression of this process—the ruthless and relentless demands by finance
capital for job destruction and cost-cutting to boost “shareholder value.”
BLOG: THE BIGGEST "JOB DESTROYER" IS OPEN BORDERS!
BLOG: THE BIGGEST "JOB DESTROYER" IS OPEN BORDERS!
The Ford decision is only one manifestation of the parasitic
processes in the US and major economies internationally. Some of the effects
were highlighted in the results of research conducted by the Conference Board
think tank published in the Financial Times earlier this week.
Labour
productivity in the US—one of the main drivers of economic expansion—will rise
this year by only one-third of the rate that prevailed before the financial
crisis of 2008. While the expected increase for 2017 is 1 percent, compared
with an increase of only 0.5 percent last year, it is still well below the
level of 2.9 percent recorded between 1999 and 2006.
Trump said
his policies of lower taxes and deregulation would lift growth in US gross
domestic product (GDP) to at least 3 percent, compared with its present level
below 2 percent. But their only real effect, if enacted, will be to shovel more
money into the hands of the financial elites.
The
prospects for growth are no better in the longer term. Even barring the
eruption of another crisis, the Congressional Budget Office estimates that the
potential growth for the US economy is 1.9 percent from 2012 to 2017, compared
to average annual growth of 3.1 percent from 1981 to 2007.
Conference Board chief economist Bart van Ark told the Financial
Times: “Even an optimistic productivity scenario would not get close to the
Trump administration’s target of 3 percent GDP growth.”
The US
figures are part of an international trend. According to the Conference Board,
the European Union will experience an increase of 1.1 percent in productivity
for 2017, up from 0.8 percent last year, but well below the 1.9 percent level
in the years before the financial crisis.
Japan is
expected to record a 1.1 percent growth in productivity, up from 0.5 percent in
2016, but less than half the pre-crisis rate.
Commenting
on the data, van Ark said the weakness in productivity reflected the impact of
the global financial crisis on business investment and the “sluggishness by
which new technology has been translated into faster productivity.” Companies
would need to lift rates of investment to keep productivity and growth rising.
Now was the time to make the investments planned for a long time.
Such
expressions of hope run counter to the dominant trends in the US economy and
elsewhere. The days when companies used profits to make new investments and
expand production, giving rise to economic growth and improved wages, have long
gone.
The road to
increased profits is now savage cost-cutting in order to free up cash, which is
then disbursed to shareholders—predominantly banks and hedge funds—in the form
of increased dividends and share buybacks. And those firms deemed by financial
markets not to be sufficiently engaged in this process come under intense
pressure to change course.
As one recent Australian study noted,
financial institutions exercise their power not primarily by holding
directorships but “through exit”—the continual threat of withdrawal of funds if
the rate of return is not sufficient. Managements, which in an earlier period
were concerned with expanding and growing a business through productive
investment, must now carry out the dictates of financial markets to strip
resources from the firm or be removed.
The Trump
administration’s claims that it will boost jobs have also been shattered by
figures coming from the retail sector.
According to a report in the Financial Times on
Monday, since the election of Trump last November, the retail sector has lost
89,000 jobs—more than the total employment in either coal mining or steel—with
more to come. The article began: “Anyone seeking the contemplative peace of a
graveyard could do no worse than park at one of America’s strip malls.”
By some
estimates, the US retail sector could lose up to one third of its 16 million
jobs within Trump’s term, on a par with the scale of job losses in
manufacturing industry since the turn of the century.
The job
shedding is the result of two factors. First, there is the general stagnation
of consumer spending, flowing from the suppression of wages and rising
household debt. The US economy grew at an annual rate of only 0.7 percent in
the first quarter of this year, largely as a result of the weakest increase in
consumer spending in seven years.
Second,
there is the impact of online buying or ecommerce, epitomised by the rise of
Amazon.
Amazon’s
business model is not based on general economic expansion but at driving more
traditional outlets to the wall, resulting in major job losses. In earlier
times of general economic expansion, the job losses would have been offset by
the growth of employment opportunities in other areas of the economy. But this
is not taking place.
It is
estimated that for every three retail jobs lost, only one is created in
ecommerce. Those displaced from the retail sector are either moving out of the
workforce altogether or into lower paid and more precarious jobs in other
service industries.
It is this
essentially parasitic business model that has made Amazon such a darling of the
financial markets.
Over the
past 20 years its shares have risen almost 64,000 percent—$100 invested in
Amazon stock at the time of its initial public offering would have accumulated
to $64,000. Amazon’s market value is now more than $450 billion, compared to
$230 billion for Wal-Mart.
The rise and
rise in Amazon’s market value, unlike the rise of the giants of a previous era,
is not an expression of economic strength. Rather, it is a manifestation of the
parasitism, based on an appropriation of real wealth produced elsewhere, that
has become the mainstay of profit accumulation in the US economy, and
increasingly globally.
Technological
innovations in transport and information systems have fueled this rise. But
they are not utilized to facilitate economic growth, but rather to enable the
sucking up of wealth into the coffers of finance capital.
AMERICA’S ECONOMIC ARMAGEDDON – The Impact of TRUMPERNOMICS
Under Obama-Clintonomics, the rich became VERY rich and we got the tax bills for their bailouts and crimes! Trump and his Goldman Sachs regime will double the numbers of rich and quadruple the number of LEGALS living in poverty.
Half of US Fortune 500 companies pay next to nothing in state taxes
Half of US Fortune 500 companies pay next to nothing in state taxes
By John Marion
25 May 2017
As the Trump administration and Congress prepare to cut federal taxes on corporations by trillions of dollars, a new report by the Institute on Taxation and Economic Policy (ITEP) documents that, among the 258 Fortune 500 companies which were profitable in 2014, the average effective tax rate levied by all 50 states was only three percent of profits.
ITEP was able to analyze state and local tax payments for 240 of the 258 companies in question. If these companies had paid the average state corporate tax rate—which was only 6.25 percent—on the $3.7 trillion in US profits that they reported to their shareholders between 2008 and 2015, they would have paid $126 billion more in taxes than they actually did.
Just a few examples give the lie to claims that there is not enough money to fund public education, infrastructure repair, public transportation, Medicaid, and other social needs.
In the eight years between 2008 and 2015, according to the ITEP analysis, International Paper and Levi Strauss had negative effective tax rates (-2 percent and -1.7 percent, respectively). Facebook and Intel had effective rates of 0.3 percent during the same period. United Technologies and Honeywell International, which profit from US military contracts, had rates of 1.3 percent and 1.5 percent, respectively.
In some cases, states have lowered their tax rates on corporate profits in recent years. Massachusetts, for example, had a rate of 10.5 percent until January 1, 2010, but has since stepped it down to 8 percent. The state has also set an absurdly low minimum excise tax amount of $456 for any corporation that cries poor.
According to the ITEP report, North Carolina has a rate of 3 percent this year, Mississippi between 3 percent and 5 percent, Colorado 4.63 percent, Utah and South Dakota 5 percent, and Florida 5.5 percent.
Individual corporations which threaten to move their operations from one state to another are often mollified with special tax breaks. Tax breaks are also given by states to large corporations in order to entice them to move. In just one example, Massachusetts and the city of Boston agreed in January 2016 to give General Electric nearly $150 million of tax breaks and other incentives when it committed to moving its headquarters from Connecticut to Boston. Given that GE promised to bring 800 jobs in the move, the cost per job of the government incentives was $180,000.
In addition to these two factors—low base rates and giveaways that are essentially extortion payments—are a variety of tricks used by corporations to shuffle assets and profits between states. According to the ITEP report, 27 states have enacted or partially enacted combined reporting rules in an attempt to quell the use of bogus subsidiaries in other states that have lower tax rates.
Some of the tricks commonly used in states without combined reporting are just a boardroom version of Three-card Monte. A June 2007 study by the Economic Policy Institute and the Massachusetts Budget and Policy Center described some:
• Captive REITs (Real Estate Investment Trusts) pay dividends to their shareholders and can then deduct the dividends paid from the trust’s taxable income. The dividend recipient can then take a dividends received deduction. A “captive” REIT is a shell company for the parent, which owns a controlling share even though REITs are legally required to have at least 100 shareholders. By this means, the parent company avoids paying taxes on its real estate profits.
• Income Shifting: Not only is income moved to shell companies in states with lower (or no) tax rates, but intangible assets can be assigned. “In a recent case, a Massachusetts company had royalty income from third parties. The company simply contributed the intangible asset (a trademark) to a Delaware subsidiary. The subsidiary receives the income and pays no state tax. It then pays dividends to the Massachusetts parent, which qualifies for the 95% dividends received deduction.”
• Factoring of Accounts Receivable: A distributor or wholesaler sells its accounts receivable to an out-of-state affiliate at an artificially low price and says that the affiliate will collect from its customers. Because the price at which it “sold” the receivables is much lower than what the customer owes, the parent company takes a loss on its taxable income. The affiliate then sells the receivables to a third party at a higher price and claims that the resulting revenue is not taxable in Massachusetts.
• Captive Employee Leasing Companies: In one example, “a major publicly-traded corporation paid most of the employees through a separate affiliated corporation that ‘leased’ the employees to the operating entity. The employees then … were not included in the operating company’s payroll for apportionment purposes.”
These practices result not only in low effective tax rates on corporate profits, but also in low corporate tax revenues for states. In Massachusetts, for example, revenues from the individual income tax were $12.1 billion between July 2016 and April 2017, and the regressive sales tax added $5.1 billion to the state treasury. During the same period, corporate taxes contributed only $1.7 billion.
A January 25 report by Kim Rueben and Richard Auxier of the Urban Institute, titled “State Budgets in the Trump Era,” found that in all but 13 states corporate taxes make up less than three percent of revenues.
From National Association of State Budget Officers (NASBO) data, the authors report that in 2016 half of US states took in less revenue than they budgeted, and 31 states are struggling with shortfalls in their fiscal year 2017 budgets even though states are legally required to have balanced books at the end of each fiscal year. Moreover, “after adjusting for inflation, 32 states spent less in fiscal year 2016 than at their pre-recession peak in fiscal year 2008.”
One other practice, codified in law, deprives state governments of billions of dollars in potential revenue. Hospitals, universities, and other large “not-for-profits” are not taxed, despite the size of their revenues or endowments. Partners Healthcare, for example is one of the largest employers in Massachusetts and owns some of its most renowned hospitals. Its yearly revenues are more than $12.1 billion, and according to its 2014 Form 990, $2.7 million was paid to CEO David Torchiana.
Harvard University, with an endowment of $35.7 billion, paid its chief executive $14.9 million in fiscal year 2015. Nonetheless, it is not satisfied with the growth of its endowment. The Boston Globe recently interviewed a recruiter of university investment executives who said, “Harvard was paying their people top Wall Street money for performance that would’ve gotten them fired on Wall Street.” From these commanding heights, Harvard pays the city of Cambridge a small “payment in lieu of taxes” and pays the state nothing.
Many states tie their individual income tax calculations to the federal Adjusted Gross Income, and federal tax expenditures like the deduction for state or local taxes are designed as indirect ways to increase state tax revenues. Federal tax changes under Trump, therefore, will have a cascading effect on individual income taxes in each state. It is too soon to predict the effects on state revenues, but it is certain that workers will be made to pay more taxes.
Plenty of money for ILLEGALS……
AMERICA’S OPEN BORDERS
AMERICA’S OPEN BORDERS
HOMELESS ELDERLY LEGALS in AMERICA UNDER MEX OCCUPATION
A Nation dies young, poor, addicted and homeless…. It’s the American dream as the rich get super rich!
According to the National Alliance to End Homelessness, the number of elderly persons who are homeless in the US will have doubled by 2050.
PSYCHOPATH!
THE LEGACY of BARACK OBAMA: MUSLIM PSYCHOPATH AND BANKSTER RENT BOY WHO CAME NEAR TO CREATING A MUSLIM-STYLE DICTATORSHIP BY SABOTAGING AMERICA’S HOMELAND SECURITY AND FUNDING THE MEXICAN FASCIST RACIST PARTY of LA RAZA.
The WSWS has reported several times
that during Obama’s administration
the wealth of the richest 400
Americans grew from $1.57 trillion to
$2.4 trillion and the stock market
enjoyed one of its most successful runs
in history.
BARACK OBAMA and DONALD TRUMP
http://mexicanoccupation.blogspot.com/2017/05/the-jared-kushner-donald-trump-george.html
THE OPEN BORDERS PARTY of GEORGE SOROS, HILLARY
& BILLARY CLINTON, BARACK OBAMA and DONALD TRUMP
http://mexicanoccupation.blogspot.com/2017/05/the-jared-kushner-donald-trump-george.html
Under the Obama administration, more Americans have found themselves consigned to economic ghettos, living in neighborhoods where more than 40 percent subsist below the poverty level.
TRUMP VOWS
TO BLUDGEON MEDICAID AND SOCIAL
SECURITY
TO OFFSET TAX CUTS FOR THE SUPER RICH
…. AND THE “WALL” WITH
NARCOMEX…. WILL ONLY BE A
“NO TRESPASSING” SIGN
POSTED EVERY 100 OR SO MILES.
THE OPEN BORDERS PARTY of GEORGE
SOROS, HILLARY & BILLARY CLINTON,
BARACK OBAMA and DONALD TRUMP
DONALD TRUMP, HIS PARASITIC FAMILY, HIS GOLDMAN SACHS
REGIME and GOD FATHER, GEORGE SOROS… .global looters of the
poor!
http://mexicanoccupation.blogspot.com/2017/05/the-jared-kushner-donald-trump-george.html
Twitter Trumper
OBAMA-CLINTON-TRUMPERnomics: The
Massive Transfer of Wealth to the Super Rich Ratcheted up!
*
The American oligarchy, steeped in
criminality and parasitism, can produce only a government of war, social
reaction and repression. In its blind avarice, it is creating the conditions
for unprecedented social upheavals. It is hurtling toward its own revolutionary
demise at the hands of the working class.
THE OPEN BORDERS PARTY of GEORGE SOROS, HILLARY
& BILLARY CLINTON, BARACK OBAMA and DONALD TRUMP
DONALD TRUMP, HIS PARASITIC FAMILY, HIS GOLDMAN SACHS
REGIME and GOD FATHER, GEORGE SOROS… .global looters of the
poor!
http://mexicanoccupation.blogspot.com/2017/05/the-jared-kushner-donald-trump-george.html
THE OBAMA DOCTRINE:
DESTROY AMERICA TO BUILD A MUSLIM-STYLE DICTATORSHIP WHERE LA RAZA
MEXICANS VOTE HIM PRESIDENT FOR LIFE
"He is intent on maximizing the damage he inflicted on
the country during the two terms of his faux presidency, having now
set up shop in Washington to pursue a post-presidency agenda advancing a
left-wing insurgency, civil unrest, racial conflict and the destabilizing activities of a shadow."
THE LEGACY OF
BARACK OBAMA:
Final Death of the American White Middle Class
Under the Obama administration, more Americans have found themselves consigned to economic ghettos, living in neighborhoods where more than 40 percent subsist below the poverty level.
*
Millions more now live in “high poverty” districts
of 20-40 percent poverty, according to recently released report by the
Brookings Institution.
THE OBAMA BOOK DEAL: Sixty-five million dollars—or even $267.5
million—is a small price to pay for the contribution the former president made
to enriching the already fabulously rich, defending the American ruling elite’s
geopolitical interests around the world and continuing the assault on the
wages, benefits and living standards of the working class.
(TOP)
Plenty of money for ILLEGALS……AMERICA’S
OPEN BORDERS
HOMELESS ELDERLY in AMERICA UNDER
MEX OCCUPATION
A Nation dies young, poor, addicted
and homeless…. It’s the American dream as the rich get super rich!
According to the National Alliance to End Homelessness, the number
of elderly persons who are homeless in the US will have doubled by 2050.
America’s Super-rich Live 15 Years Longer!
………….. America’s Bludgeoned Middle-Class Dies Young, Addicted and Poor!
WE ARE MEXICO'S WELFARE SYSTEM
.... A Glimpse...
$640,000 and breeding anchor babies like bunnies
MURDER, RAPE, LOOT and VOTE DEM FOR MORE!
EACH ILLEGAL WILL COST THE AMERICAN PEOPLE
$640,000
and then they go breed anchor babies for more!
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