Are The Rich Making War On The Poor?by Art Jacobson on Dec. 16, 2012, under Business Incentives, Capitalism, Class War, Corporate Tax Benefits, Hostess Corporation, Pension Fund Appropriation, Politics, Twinkies
We report, you decide.
It’s an old One-Percenter story. We are asked to believe that taxing corporations will have a disastrous effect on the creation of jobs on which families can survive.
But CNN Money reports that corporate profits were up 19% in the third quarter, an increase that constituted the largest share of the economy in history. Meanwhile, workers’ wages have fallen to the lowest ever as a share of the economy. There’s no evidence whatsoever that reducing corporate taxes has improved either workers’ share of corporate income or the number of jobs.
When changes in taxation allowed corporations to “repatriate” money earned abroad at something like a 5 percent tax rate, the money was spent in buying back stock or raising the pay of corporate executives, not on job creation.
And over in Twinkie-Ville, an example of the sort of treatment that led workers to refuse to work for less than a living wage:
According to a report by the Wall Street Journal , Hostess’ CEO, Gregory Rayburn, essentially admitted that his company stole employee pension money and put it toward CEO and senior executive pay (aka “operations”). While this isn’t technically illegal, it’s another sleazy theft by Hostess executives – who’ve paid themselves handsomely while running their company into the ground. Just last month, a judge agreed to let Hostess executives suck another $1.8 million out of the bankrupt company to pay bonuses to CEOs.
It’s like the famous old break-room poster:
The Beatings Will Continue Until Morale Improves.