Corporate Welfare for Goldman Sachs, Walmart and 2,700 Other Companies
According to investigative journalist David Cay Johnston, more than 2,700 companies have secret agreements to keep the state income tax they withhold from your paycheck.
Goldman Sachs, Walmart, Chrysler, Ford, General Motors, Nissan, Mitsubishi, Motorola, Proctor and Gamble, AMC Theaters, Toyota and Electrolux are but a few of the big name companies involved.
As Johnston writes in a 2011 Reuters column:
“Instead of paying for police, teachers, roads and other state and local services that grease the wheels of commerce, Illinois workers at these companies will subsidize their employers with the state income taxes they pay. The deal to let employers keep half or all of their workers’ state income taxes represents a dramatic expansion of a little-known trend in the law: diverting taxes from public purposes to private gain.”
As of April 2012, the states which have signed these secret agreements included Colorado, Connecticut, Georgia, Illinois, Indiana, Kansas, Kentucky, Maine, Mississippi, Missouri, New Jersey, New Mexico, North Carolina, Ohio, South Carolina, Utah.
Read more at Taxed by the Boss
photo credit: watchingfrogsboil via photopin cc
Holy crap!! What will they think of next???
To be honest, I don’t think they’ll be happy until they turn the entire US into a sweatshop like some places in southeast Asia. Workers won’t get a paycheck any longer. They’ll just get 3 meals and an 8 hour shift in a back room.
It’s ok…I would have just spent it on lottery tickets and beef jerky, anyway.
I think this is what they call gallows humor, right?
Or my lame attempt at such…
How is this even legal? Or should I say, “Who is minding the store?” Never mind! It’s not legal and crook aka criminals are minding the store!
Thanks Dr. Bramhall.
I guess legality depends on your income level.
You got THAT right! Not to say that you don’t have everything right. You do! And that means, we’re in BIG trouble! But we’re celebrating! And let the fireworks begin! SIGH!!!!
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