Comment: The easy way of saving over $1tn a year

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The easy way of saving over $1tn a year

Cut Corporate welfare

The fiscal Cliff deal, Obama's Corporate sell out - a financial analysis.

The fiscal cliff deal - why Goldman Sachs won and America lost

The economic suicide of America in the fiscal cliff deal

The video above is very misleading - there are ZERO spending cuts planned.
Only some tiny temporary cuts in 2013 of $54bn a year - government spending then continues on it's upward rapid trajectory.

Federal spending is planned to rise to over $5tn by 2020 - a 50% increase from 2012.
The details of the planned spending increases are included in the above blog posts.

$69bn of Corporate Pork that was supposed to expire was renewed or replaced in the actual "Tax Relief Act"

The only tax relief this act provided was Corporation Tax Relief whereby large multinationals pay little or no tax by offshoring their US generated profits, like google does by sending it's profits to Bermuda by paying royalties to s subsidiary specifically set up for the purpose.

Middle class and marginal tax payers got a huge $200bn tax hike while large Corporations got to keep ALL of their $1tn+ of annual Corporate Welfare.

There are numerous other Corporate Tax breaks, including ones for specific industries like arms companies and banks.

General Electric made $10bn in profits between 2008 and 2010 and got a $4bn tax REFUND.
They also spent $475m lobbying.
They also own 49% of NBC.

I am in favor of low taxes, including Corporation Tax, but currently large Corporations are making record profits.
Corporate profits are not the issue we face - it is EVERYTHING ELSE.

At the moment there is not a level playing field.
Small and medium sized businesses pay 25% to 30% Corporation Tax after taking their tax breaks, while companies like Starbucks pay no tax at all. How are small businesses supposed to compete.

Just stopping these Corporate Tax avoidance schemes would bring in FAR more money that the expiry of the payroll tax.

After the government finances were in better shape Corporation Taxes as well as personal income taxes could be lowered.
Gradually over time to zero.

"In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all -- security, comfort, and freedom. When ... the freedom they wished for was freedom from responsibility, then Athens ceased to be free."