Corporate Profits Soar Thanks To Record Unemployment

Makes me mad a hell and you know it.

Thats why people working in the private sector (Corporat America) need to support the unions. Enything that was good about working in the private sector came about because of the unions.

If you work in Corporate America you probably can't remember the last time you got a raise or one worth mentioning. No doubt you've had the privilege of training someone, not an American to take your job. And the working conditions in Corporate America have diminished to the point where morale is at an all time low. Enything that was good about working in the private sector came about because of the unions.

Allstate Insurance Company has been outsourcing jobs to India and Northern Ireland for over ten years. They continue to lay workers off at record numbers all the while touting their lower rates. How do they do that? American's who have Allstate's insurance makes it all possible because they can't sell their insurance in either of those countries.

At one time It was a good place to work.

Bank of America is based in Charlotte. By the way BA was based in California until they got tired of the state business tax increases like many corporations who have left the state. From the Charlotte Observer ...

This tax season will be kind to Bank of America and Wells Fargo: It appears that neither bank will have to pay federal income taxes for 2009.

Bank of America probably won't pay federal taxes because it lost money in the U.S. for the year. Wells Fargo was profitable, but can write down its tax bill because of losses at Wachovia, which it rescued from a near collapse.

The idea of the country's No. 1 and No. 4 banks not paying federal income taxes may be anathema to millions of Americans who are grumbling as they fill out their own tax forms this month. But tax experts say the banks' situation is hardly unique.

"Oh, yeah, this happens all the time," said Robert Willens, an expert on tax accounting who runs a New York firm with the same name. "Especially now, with companies suffering such severe losses."

Bob McIntyre, at Citizens for Tax Justice, said he opposes the government giving corporations such a break.

"If you go out and try to make money and you don't do it, why should the government pay you for your losses?" McIntyre said. "It's as simple as that."

For 2009, Bank of America netted a $2.3 billion benefit related to income taxes, according to its annual report: It had a benefit of $3.6 billion from the federal government, and an expense of $1.3 billion that it paid to different state and foreign governments.

It's not unusual for a company's debt to the federal government to vary widely from its debt to state governments, as appears to be the case with Bank of America, said Douglas Shackelford, a tax professor at UNC Chapel Hill.

The federal government often offers more tax deductions than the states; for example, Bank of America wrote down its federal taxable income with credits from low-income housing and losses on foreign subsidiary stock.

Company tax returns aren't public, so it's difficult to say for certain how much a company pays to, or receives from, tax coffers in any year .

The bank's $3.6 billion current federal tax benefit for 2009 came in a year when it lost $1 billion in the U.S., according to its latest annual report. For the previous year, when the bank had profits of $3.3 billion in the U.S., it listed a current federal tax expense of $5.1 billion.

Wells Fargo was profitable in 2009, with $8 billion in earnings applicable to common shareholders. But its tax payments were reduced because of Wachovia's losses.

Wells netted an overall tax benefit of $4.1 billion in 2009. It got a benefit worth nearly $4 billion from the federal government, and another worth $334 million from state governments. It had an expense of $164 million in foreign taxes. Wells did record an overall income tax expense of $5.3 billion, but that was offset by the tax benefits of the Wachovia losses.

Mark Provost, here. I am glad you all enjoyed my article.
Many Thanks
I welcome any criticism or questions.

Those slippery baggers thought that their corporate Johns would come to their rescue once the elections were done as they use to in the past. sitting on two trillion with no place to invest since all the slots as greeters at Wallmart are full and China can't grow any faster than the 18% they are now at. We elected a gov. in Maine with 38%of the vote, that's 38% are now the "American people" . Zero sum game.

Thank you jeffissleeping

Just found out why the gov. of Florida turned down the high speed rail money that would create jobs for Florida. He wants to improve his ports so he can import more junk from China. Got to hand it to that corporate junkie he is slippery..

And yet, even while States across the country struggle with deficits and Republican Governors resort to slashing benefits for the poor, college students, the elderly, and unemployed...the largest corporations in the US pay NO FEDERAL TAXES WHATSOEVER:

Federal Income Taxes Paid by Corporations in 2009:

Bank of America = $0
Boeing = $0
Citigroup = $0
Exxon-Mobil = $0
GE = $0
Wells Fargo/Wachovia = $0

from TP:

In the coming months, politicians across the country are going to tell Americans that the only way to stave off huge deficit and balance the budgets is by gutting programs for the poor, eviscerating support for the middle class, eliminating labor rights, and decimating the government’s ability to serve the public interest. This is a lie. The United States is the richest country in the history of the world, and income inequality is higher now than it has been at any time since the 1920′s.

It's not only unfair, it's a CRIME.

Am I supposed to be surprised? They will use the "bad economy" excuse as long as the public allows them to.

I've said it before and will say it again, these fascists and their policies, and their ideologies are bad for business. Sooner or later the business community has got to grow up and realize that in order for them to survive, they need to work for a sustainable world, not a world of unlimited growth. It's just so plainly obvious and I expect when enough of these protests, the continued policies of the republiCONs & Obama democRATs, and the lack of real business savy by corporate executives start cutting into profits, things stand a small chance of actually turning around.

The Fed’s Flow of Funds reveals corporate profits represented a near record 11.2% of national income in the second quarter.
...
For the past two years, executives have reported record profits to their shareholders partially because they are paying a pittance in federal taxes. Corporate taxes as a percentage of GDP in 2009 and 2010 are the lowest on record, just above 1%.

So corporate profits are about 11% GDP, yet they only pay 1% GDP in taxes... that means corporations are effectively paying about 10% tax while the average worker is taxed at around 25%. I'm not saying take all their money, I'm just saying that they are making their profits off our backs, they should be required to pay their fair share to keep this country running.

Tyrannical coporate entities are the enemy of democracy and social justice.

HA! Money means nothing. When all the fish and animals are dead, the trees are all chopped down, the water & air is poisoned will GREEDY HUMANS realize you can't eat oil/money ... mitakuye oyasin = we are all related. peace on earth y'all ...

Reports of our impecunity are exaggerate­d.
As evidence America isn't broke I submit that SOMEBODY has enough money to buy the Press, the Courts, and State and Federal officehold­­ers.

I think if I owned a business that could make more in investing than in paying people to produce widgets I would do that. The ancillary costs of labor (taxes and compliance costs) are huge. I would not hire unless it were financially viable, businesses are not a welfare shop. One good way to loose your job as CEO is to have a large group of people standing around producing nothing except draining the acount. Oh wait, the federal government has that, it's called TSA! Anyhow if the purpose of this thread is to illustrate the selfishness of businesses I don't think it succeeded.
Why didn't the tax laws change in the last two years before the November election? Democrats held both houses and the White HOuse. IT was a perfect storm for them.

Three things to consider doing:
1) Impose tariffs on all imported manufactured goods, bring the jobs back to America.

2) As President Obama said in his State of the Union address, lower corporate tax rate while eliminating the loop holes large corps use to avoid paying.

3)America must raise taxes because when top income-tax rates on millionaires and billionaires are above 50 percent, not only does the gap between the very rich and the working poor shrink but the nation’s economy stabilizes and grows.

If the government will again remember that they are in place to serve the needs of the people and not the multi-trillionaire corporate sector, they might avoid the Second American Revolution.

More proof of a widening gap between the classes, and a government that is indifferent to it's citizens

"Companies are transforming temporary labor into a permanent feature of the American workforce. UPI reports, “This year, 26.2 percent of new private sector jobs are temporary, compared to 10.9 percent in the recovery after the 1990s recession and 7.1 percent in previous recoveries.”

Experts have been warning about this for several years now. The concept of loyalty to the workers who are the driving engine for the Corporations and their Oligarchs has been dwindling since The Raygun revolution.

What Walker is doing is just trying to continue the Revolution into the public sector. Without the Unions to force the Oligarchs to at least pretend they honor their workers contributions, the workers have taken it in the drawers.

The European unemployment is actually much worse in select countries.

End Corporate personhood!

Solidarity Saturday !!!!

Yes Figg, shit is happening, and it is high time the fan is turned in the other direction. Already, I have emailed Obama extracts of your post, asking: "Sup with this?" And concluding with: "The people know how they have been screwed, and we want our money back whatever it takes!. Windfall corporate profit tax, special crisis assessments or punitive taxes, we don't care, as long as the money that should have gone to our national treasury, get's there. We want this administration to do it, and to remedy it."

Financial sins and crimes have been committed against this country and the people of it. Contact your legislators and the president and tell them both, to stop it, and to get our money back! We have a use for it now, and we want it now. If the multinational corporations go down the drain, "so be it"; in the words of Boehner! Multinational corporations as they have been functioning are the enemy of the state, and the people. They have been transferring wealth from us, and this country, to foreign bank accounts, way too long. Either give us that which is due us, or cease operating in this country. If they cease operating in this country, go after our money anyway, and anywhere they sent it!

The reality is that life is a pay to play situation. It is corporations turn to pick up the tab. Quid Pro Quo!