Leo Gerard, president of the United Steelworkers International union, writes about a Institute for Policy Studies report called Fleecing Uncle Sam. One of the most eyebrow-raising details is this:
Of America's 100 top-paid CEOs, 29 worked schemes that enabled them to collect more in compensation than their corporations paid in income taxes. The average pay for these 29: $32 million. For one year.
And from the report:
All seven of these firms were highly profitable, collectively reporting more than $74 billion in U.S. pre-tax profits. However, they received a combined total of $1.9 billion in refunds from the IRS, giving them an effective tax rate of negative 2.5 percent.
The seven CEOs leading these tax-dodging corporations were paid $17.3 million on average in 2013. Boeing and Ford Motors both paid their CEOs more than $23 million last year while receiving large tax refunds.
Uh oh, Donald Rumsfeld and I agree on something. Each year, with his tax return, Rumsfeld sends a letter to the IRS explaining that neither he or his wife are sure of how accurate their taxes are because the forms and tax code are too complex. Here is this year's letter:
If only he had been less certain of his accuracy in an even more complex situation, like, say the whole WMD/Iraq War thing.
In some countries, filing taxes is a fast and simple process. But in the U.S., it only seems to get more complex and laborious. There are a lot of reasons we haven't reached simplicity. But as ProPublica points out, "it doesn't help that it's been opposed for years by the company behind the most popular consumer tax software -- Intuit, maker of TurboTax."
In an editorial for the NY Times in 1993 called Guns Don't Kill People. Bullets Do., US Senator Daniel Patrick Moynihan described a bill he introduced in the Senate which would have levied a 10,000% tax on hollow-point bullets.
"So far this year, 342 New Yorkers have been killed by stray bullets. And in the past few days, two young women were shot in their pregnant bellies." A. M. Rosenthal wrote that on this page last Tuesday, the day of the Long Island shooting. By Thursday there were 11 more homicides. If we are to stop it, or come anywhere close, we have to get hold of the ammunition.
On Nov. 3, I introduced a bill that would levy a 10,000 percent tax on Winchester hollow-tipped "Black Talon" bullets, specifically designed to rip flesh. (Colin Ferguson, the suspect in the Long Island shootings, had some 40 of them.)
The tax would effectively raise the price of Black Talons from $20 a box to $2,000. On Nov. 22, 19 days after my bill was introduced, Winchester announced that it would cease sale of Black Talons to the public. Which suggests that the munitions manufacturers are more responsive than the automobile companies were a generation ago. It is also important to note that in 1986 Congress banned the Teflon-coated "cop killer" bullet, which penetrates police body armor. The Swedes are now making a new kind of armor-piercing round. We got that banned in the Senate version of this year's crime bill without a murmur.
The Long Island shootings Moynihan refers to resulted in the deaths of six people and the injury of nineteen more. (via @Rebeccamead_NYC)
Sam Potts has fashioned a Special Deductions for Freelancers tax form; it attaches to your 1040-SCRIMP. There is a Twitter Deduction section and a special David Foster Wallace Memorial Deduction for Fiction Writers Who Use Footnotes.
Tax tips for graphic designers and visual artists. "If seeing the visual art of others is vital to your own creativity, keeps you abreast of current design trends, or clues you in to the latest fashion, then consider the costs [of going to the movies or renting DVDs] a tax deduction." (thx, shane)
Some notes from day 2 at PopTech, with a little backtracking into day 1 as well. In no particular order:
The upshot of Thomas Barnett's entertaining and provacative talk (or one of the the upshots, anyway): China is the new world power and needs a sidekick to help globalize the world. And like when the US was the rising power in the world and took the outgoing power, England, along for the ride so that, as Barnett put it, "England could fight above its weight", China could take the outgoing power (the US) along for the globalization ride. The US would provide the military force to strike initial blows and the Chinese would provide peacekeeping; Barnett argued that both capabilities are essential in a post-Cold War world.
Juan Enriquez talked about boundries...specifically if there will be more or less of them in the United States in the future. 45 states? 65 states? One thing that the US has to deal with is how we treat immigrants. Echoing William Gibson, Enriquez said "the words you use today will resonate through history for a long time". That is, if you don't let the Mexican immigrants in the US speak their own language, don't welcome their contributions to our society, and just generally make people feel unwelcome in the place where they live, it will come back to bite you in the ass (like, say, when southern California decides it would rather be a part of Mexico or its own nation).
Enriquez again, regarding our current income tax proclivities: "if we pay more and our children don't owe less, that's not taxes...it's just a long-term, high-interest loan".
Number of times ordained minister Martin Marty said "hell" during his presentation: 2. Number of times Marty said "goddamn": 1. Number of times uber-heathen Richard Dawkins said "hell", "goddamn", or any other blasphemous swear: 0.
Dawkins told the story of Kurt Wise, who took a scissors to the Bible and cut out every passage which was in discord with the theory of evolution, eventually ending up with a fragmented mess. Confronted with this crisis of faith and science, Wise renounced evolution and became a geologist who believes that the earth is only 6000 years old.
The story of Micah Garen's capture by Iraqi militants and Marie-Helene Carlton's efforts to get her boyfriend back home safely illustrates the power of the connected world. Marie-Helene and Micah's family used emails, mobile phones, and sat phones to reach out through their global social network, eventually reaching people in Iraq whom Micah's captors might listen to. A woman in the audience stood during the Q&A and related her story of her boyfriend being on a hijacked plane out of Athens in 1985 and how powerless she was to do anything in the age before mobiles, email, and sat phones. Today, Stanley Milgram might say, an Ayatollah is never more than 4 or 5 people away.
Lexicographer Erin McKean told us several interesting things about dictionaries, including that "lexicographer" can be found in even the smallest of dictionaries because, duh, look who's responsible for compiling the words in a dictionary. She called dictionaries the vodka of literature: a distillation of really meaty mixture of substances into something that odorless, tasteless, colorless, and yet very powerful. Here an interview with her and a video of a lecture she gave at Google.
Online TurboTax as a text adventure game. "I should write up a complete walkthrough to solve Tax Return 2006 in as few moves as possible."