My @Quora answer to Will Bernie Sanders cut back spending and balance the budget? http://qr.ae/0c3HR
Almost certainly not…
Aside from the fact that he’d have no power to do so, he wouldn’t use “cutting spending” (which is an Orwellian meme for “slashing welfare”) as a solution for the Congressionaly created “deficit problem”.
Primarily because the spending isn’t the problem… well, except for the Fact that We are forced to spend more than the next 14 “big” spenders combined in “defense” and that we pay double any other first world nation for health “care” while some 24% to 30% of our Citizens have no usable access to actual care. (And no! A F’ing +$3000 bill for ER care doth not usable make)
The real problem* is the Fact that our average corporate effective tax rate was 12.6% in 2013, while Citizens are paying closer to 40% or more when you factor in all hidden excise taxes and taxes “hidden” as fees.
Here’s the international game of Three Card Monte with profits so that We The People can’t easily see just how badly we’re bring ripped off and conned:
Companies By 5-Year Federal Tax Rate:
Pepco Holdings (-33%)
PG&E Corp. (-17%)
Wisconsin Energy (-14%)
CenterPoint Energy (-9%)
General Electric (-9%)
Atmos Energy (-8%)
Integrys Energy Group (-8%)
American Electric Power (-6%)
Tenet Healthcare (-6%)
Ryder System (-5%)
Duke Energy (-3%)
Interpublic Group (-2%)
NextEra Energy (-2%)
Verizon Communications (-2%)
CMS Energy (-1%)
Consolidated Edison (-1%)
Northeast Utilities (-1%)
Cablevision Systems (0%)
MetroPCS Communications (-0%)
Xcel Energy (1%)
Here’s the money they’re hiding from all legitimate taxation:
Apple: Apple has booked $111.3 billion offshore—more than any other company. It would owe $36.4 billion in U.S. taxes if these profits were not officially held offshore for tax purposes. A 2013 Senate investigation found that Apple has structured two Irish subsidiaries to be tax residents of neither the U.S.—where they are managed and controlled—nor Ireland—where they are incorporated. This arrangement ensures that they pay no taxes toany government on the lion’s share of their offshore profits.
American Express: The credit card company officially reports $9.6 billion offshore for tax purposes on which it would otherwise owe $3 billion in U.S. taxes. That implies that American Express currently pays only a 3.8 percent tax rate on its offshore profits to foreign governments, suggesting that most of the money is booked in tax havens levying little to no tax. American Express maintains 23 subsidiaries in offshore tax havens.
Nike: The sneaker giant officially holds $6.7 billion offshore for tax purposes, on which it would otherwise owe $2.2 billion in U.S. taxes. That implies Nike pays a mere 2.2 percent tax rate to foreign governments on those offshore profits, suggesting that nearly all of the money is officially held by subsidiaries in tax havens. Nike does this in part by licensing the trademarks for some of its products to 12 subsidiaries in Bermuda to which it then pays royalties.
Some companies that report a significant amount of money offshore maintain hundreds of subsidiaries in tax havens, including the following:
Bank of America reports having 264 subsidiaries in offshore tax havens—more than any other company. The bank officially holds $17 billion offshore for tax purposes, on which it would otherwise owe $4.3 billion in U.S. taxes. That means it currently pays a ten percent tax rate to foreign governments on the profits it has booked offshore, implying much of those profits are booked to tax havens.
PepsiCo maintains 137 subsidiaries in offshore tax havens. The soft drink maker reports holding $34.1 billion offshore for tax purposes, though it does not disclose what its estimated tax bill would be if it didn’t keep those profits booked offshore for tax purposes.
Pfizer, the world’s largest drug maker, operates 128 subsidiaries in tax havens and officially holds $69 billion in profits offshore for tax purposes, the third highest among the Fortune 500. Pfizer recently attempted the acquisition of a smaller foreign competitor so it could reincorporate on paper as a “foreign company.” Pulling this off would have allowed the company a tax-free way to use its supposedly offshore profits in the U.S.
* This actual problem was created entirely by Congress at the behest of, and in full collusion with, their corporate bribers, and which is “most carefully and with great concern” never, ever talked about by any “investigative” journalist.
They, none of them, are actually working for you, your nation, or your Constitution, which they gave a legally binding Oath to protect.