More Tax Deform
Time for another Gooberhead Award [Beanie Cap breakdown], presented periodically to someone in the news who's got their tongue going 100 miles an hour but forgot to put their brain in gear.
Today's Goober is Representative Bill Thomas, the California Republican who chairs the House tax committee. Bill recently sponsored a reform proposal to close a gaping loophole that allows corporate tax dodgers to avoid paying their fair share of U.S. taxes by, believe it or not, simply acquiring a mailbox in Bermuda and filing some papers in Barbados. This tax shell game is so blatant and shameful that, when hardworking taxpayers recently learned about it, there was such an outcry that even a loyal corporate sycophant like Thomas had to rush forward dressed as a Caped Crusader, coming to our rescue with his reform bill.
Thomas in lights is not a pretty sight, and his "reform" is even uglier. Yes, Bill's bill does shut the door on the Bermuda loophole ... temporarily. In three years, the loophole would swing wide open again.
But that's the least of his dishonesty. To soften the blow of temporarily shutting down this corporate tax scam, Thomas slips two additional and permanent loopholes into the tax code, letting such profitable giants as General Motors dodge $6 billion a year in taxes that they would owe. These new loopholes are nearly 10 times bigger than the Bermuda loophole.
It gets uglier. The effect of Thomas' so-called reform is to increase taxes on the products that U.S. corporations make here for export abroad, while cutting taxes on profits they haul out of their foreign factories. So, our Caped Crusader's "reform" would give CEOs a giant tax incentive to move more of America's manufacturing and service jobs overseas. Yet, Thomas asserts that his is a "smart" bill for today's global economy.
This is Jim Hightower saying ... It's smart for global greedheads, but it's stupid for America. To fight this Gooberhead's giveaway, contact Public Citizen at 202-546-4996.