No matter how you look at it, the economy is stalled, and has been for some time. National unemployment rates hover at just over 9 percent—and spike even higher in hard hit cities.
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The federal government is unable to balance its budget because it isn’t bringing in enough revenue, putting much-needed social programs at risk. Everyone—from corporate leaders to local politicians to the president is urging us to sacrifice and make the hard choices needed to ride this recession out. It doesn’t appear as if the nation’s major corporations are being told the same things.
According to the study released by the Institute for Policy Studies, 25 of the nation’s top US companies received an average of more than $300 million each in tax benefits. Most of these corporate refunds are the result of write-offs obtained through offshore income tax income shelters that corporations use. Additionally, the corporations get tax breaks for a variety of corporate initiatives that may or may not benefit local communities or the federal government. Each of these top 25 companies—which include Verizon, eBay and General Electric—brought in profits of nearly $2 billion each and paid more to their chief executives than they did in federal taxes.
This practice of multi-billion dollar companies not paying their fair share must be addressed. Any reasonable person would agree that, if a company performs well, its leaders should be paid accordingly.
However, it is unthinkable that a company bringing in billions of dollars would receive a tax refund, especially at a time when the federal government is frantically searching for revenue.
Small businesses drive the nation’s economy—they make up the majority of the country’s employers and employ more people than large corporations. Yet, they are not afforded the same generous tax breaks as large companies. If our economy is going to rebound, the government has to rethink who and what it supports. The focus must be placed on those entities that invest in their communities and spur job growth.
There is no overwhelming evidence that the monies our nation’s top companies saved in federal taxes have trickled down to the common man. That is a travesty. If these corporate refunds are not being granted for programs that help boost the economy or create jobs, this practice should be reviewed and eliminated immediately.
(Judge Greg Mathis is a national figure known for his advocacy campaigns for equal justice. His inspirational life story of a street youth who rose from jail to Judge has provided hope to millions who watch him on the award-winning television court show Judge Mathis each day.)
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