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Corporate Loopholes, Fraud and Tax Evasion

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Inside the SC Johnson vs. David Cay Johnston dispute on corporate taxes. By Dave Umhoefer Published on Sunday, September 11th, 2011 at 10:00 p.m. When a Pulitzer Prize-winning journalist bumped heads with S.C. Johnson, one of the nation’s largest private companies, the collision renewed a tax-fairness debate that flared with reports that General Electric had no U.S. tax bill despite billions in profits last year. Reuters columnist David Cay Johnston questioned the corporate tax strategies he said allowed the company to avoid paying even one dollar of Wisconsin corporate income tax -- not just for one year, but nine years running. One focus: A huge annual write-off of interest on a loan the Wisconsin-based company made to itself -- from its small Puerto Rico subsidiary, and later a Delaware subsidiary, to the parent company.

Punching back, S.C. In other words, it was Johnston vs. Here at PolitiFact Wisconsin, we can’t fully settle all the scores. Why? Wisconsin, perhaps alone among the 50 states, makes public the net taxes paid by state-based corporations. Why? An Investment Manager's View on the Top 1% This article was written by an investment manager who works with very wealthy clients. him from decades ago, but in 2011 he e-mailed me with some concerns he had about what was happening with the economy. What he had to say was informative enough that I asked if he might fashion what he had told me into a document for the Who Rules America Web site. He agreed to do so, but only on the condition that the document be anonymous, because he does not want to jeopardize his relationships with his clients or other investment professionals. Make no assumptions about the investment manager with respect to race, ethnicity, political perspective, or views on government economic policy; he may or may not fit readers' preconceptions concerning some of these categories.

NOTE: The investment manager has also written an update for 2014. — G. I sit in an interesting chair in the financial services industry. The Lower Half of the Top 1% Until recently, most studies just broke out the top 1% as a group. Corporate Tax Holiday in Debt Ceiling Deal: Where's the Uproar? | Rolling Stone Politics | Taibblog | Matt Taibbi on Politics and the Economy. Rupert Murdoch's News Corp made 'profit' of $4.8bn in US gov income tax refunds. CORRECTIONThis story was based on a Reuters piece by David Cay Johnston, which he has since retracted and correctedHis full explanation can be read by clicking here By Daily Mail Reporter Updated: 17:59 GMT, 14 July 2011 Rupert Murdoch's News Corp. collected $4.8 billion in income tax refunds in the last four years, an investigation has uncovered.

The payback means Murdoch's U.S. -based media empire has actually made money on tax rebates on top of its $10.4 billion in profits. At the standard 35 per cent corporate tax rate the company should have coughed up $3.6 billion in tax. Cashing in: News Corp has raked in $4.8 billion in tax refunds over the last four years The relevant figure is the cash paid tax rate.

For the last four years, it was minus 46 percent, disclosure statements show. Even on an accounting basis - which measures taxes incurred but often not actually paid for years - News Corp. had a tax rate of under 20 percent, little more than half the 35 per cent statutory rate. How News Corp. Received Billions In Tax Refunds. Apple | US Uncut. iLove Apple but iHate the Tax Cheat. I can sync my iPhone to my MacBook Why can't I sync it to my Values? Apple is lobbying congress for a "Tax Holiday" so they can dodge $4 billion in taxes. Do we want $4 billion for Apple OR salaries for 90,000 teachers? US Uncut Demands Apple: Leave the Tax Cheat Lobbying Group and Stop Lobbying Congress for More Tax Loopholes Congress: No More Budget Cuts – No $80 Billion Tax Holiday For Corporate Tax Cheats On June 4th, organize a Us Uncut protest at your local apple store! Why Apple? Apple plays huge games with their taxes.

Over the last three years, Apple actually did pay some US corporate income taxes. But they’re hiding something. Apple is a leader of a Tax Cheaters Lobbying Group that is lobbying Congress to give tax dodgers a tax holiday. In addition to Apple, the coalition includes other technology companies like Google, Oracle, Cisco, Microsoft and Adobe, drug giant Pfizer, and utility leaders including Duke Energy. Goldman Traders Tried to Manipulate Derivatives Market in '07, Report Says.

Goldman Sachs Group Inc. (GS) mortgage traders tried to manipulate prices of derivatives linked to subprime home loans in May 2007 for their own benefit, according to a U.S. Senate report. Company documents show traders led by Michael J. Swenson sought to encourage a “short squeeze” by putting artificially low prices on derivatives that would gain in value as mortgage securities fell, according to the report yesterday by the Permanent Subcommittee on Investigations.

The idea, abandoned after market conditions worsened, was to drive holders of such credit-default swaps to sell and help Goldman Sachs traders buy at reduced prices, according to the report. “We began to encourage this squeeze, with plans of getting very short again,” Deeb Salem, a trader in the structured product group, said in a 2007 self-evaluation excerpted in the report.

Salem “claimed that he had wrongly worded his self- evaluation,” the report said. Goldman Sachs Group Inc.' Goldman Sachs Group Inc.' Close Open Joshua S. Top 10 US Corporate Tax Avoiders Named on Senate Floor. Despite complaints about the U.S.’s burdensome 35% corporate tax rate, two-thirds of American corporations pay no taxes in a given year. In a speech last week on the Senate floor, Senator Bernie Sanders (I) of Vermont called out the top 10 corporate tax avoiders: Among those actually getting money back from the Feds: ExxonMobil made $19 billion in profits in 2009, paid no federal income taxes, received a $156 million rebateBank of America received a $1.9 billion IRS refund despite $4.4 billion of profitsGeneral Electric had $26 billion in profits, and $4.1 billion refund (GE made it onto another top 10 list of top corporate lobbyists in 2010, spending $39 million)Chevron nabbed a $19 million refund after making $10 billion in profits Wall Street made the list as well; the Senator’s office notes,”Goldman Sachs in 2008 only paid 1.1 percent of its income in taxes even though it earned a profit of $2.3 billion and received an almost $800 billion from the Federal Reserve and U.S.

The Double Irish - How Companies Bypass the US High Income-Tax Rate. Tim DeChristopher: A Monkey Wrencher comes to Trial. From Rising Tide: A little over two years ago, .. Tim DeChristopher put it all on the line when he entered a federal auction and derailed it so that oil and gas companies could not destroy one of the most beautiful and unique areas on the planet.

Posing as a legitimate bidder, the then 27 year old student bid on, and won, the rights to thousands of acres of federal land, which, as it turns out, surround and abut some of the most incredibly beautiful, dreamlike landscapes on the planet, at Arches National Monument. According to Buzzflash: Tim DeCristopher … threw a monkey wrench into an anti-conservation U.S. Bureau of Land Management auction of federal lands for oil and gas development in Utah. In fact, DeCristopher is just a university student, but he decided that it was time for creative action. So he registered as a bidder and managed to win the rights to 10 parcels and bid up other leases to cause chaos on behalf of preserving Southwestern unspoiled public desert land. Again Rising Tide: Bank of America to pay $137M in state fraud cases. Bank of America will pay $137.3 million to settle allegations that it defrauded schools, hospitals and dozens of other state and local government organizations, federal officials said Tuesday.

The settlement stems from a long-running investigation into misconduct in the municipal bond business that raises money for localities to pay for public services. Bank of America is accused of depriving local organizations of millions of dollars by engaging in illegal behavior when investing the proceeds of municipal bond sales. The bank is paying $107.8 million to these organizations in restitution, $25 million to the Internal Revenue Service for abuses related to the tax-free status of municipal bonds and $4.5 million to state attorneys general for costs related to their investigations. The government showed Bank of America leniency in the settlement because the bank first disclosed the illegal conduct that launched the investigation. Goldfarbz@washpost.com. Cable Companies' $46+ Billion Robbery -- Subscribers Have Been Ripped off for $5 a Month Since 2000 | Media and Culture. November 7, 2010 | Like this article? Join our email list: Stay up to date with the latest headlines via email.

When cable television subscribers open their monthly bills they will not see a charge for the “Social Contract.” Since the mid-1990s, it appears that every cable subscriber has shelled out $1 per month increasing to $5 a month by 2000 to subsidize cable companies’ system upgrades. We estimate that the total Social Contract or “social con” ripoff has cost American cable subscribers $46 billion.

As of this writing, the Social Contract is a black hole, with no audit trails, no removal of a charge that seems to have ended up a perpetual cash machine. On September 24, 1997, the FCC’s then-chairman Reed Hundt testified before Congress on the Social Contract. Surely, Jean-Jacques Rousseau is turning in his grave over the systematic misuse of his coveted concept of political freedom. The FCC adopted the concept of the “Social Contract” on November 30, 1995.

Guest Post: Mortgages Were Pledged to Multiple Buyers at the Same Time. By George Washington Bank of America alleged in a court filing this June: It appears as though many loans and other mortgage-related assets have been double and even triple-pledged to various constituencies Boa Answer to Freddie Objection in Re Taylor Bean & Whitaker Mortgage Corp. April Charney – a consumer lawyer with Jacksonville Area Legal Aid – and CNBC’s Dennis Kneale noted in February 2009 that courts have found that some mortgages have been sold again and again to different trusts, when they should have only been sold once. Kneale explained that that is the reason that two different banks sometimes try to simultaneously foreclose on the same home: And today, Chris Whalen told CNBC’s Larry Kudlow that Bear Stearns will be exposed as having sold the same loan to different investors on numerous occasions (see 6:45 into video): As I have repeatedly pointed out, the failure of the mortgage originators and banks to prepare and record proper documentation has led to an epidemic of fraud.

Google 2.4% Rate Shows How $60 Billion Lost to Tax Loopholes. Google Inc. cut its taxes by $3.1 billion in the last three years using a technique that moves most of its foreign profits through Ireland and the Netherlands to Bermuda. Google’s income shifting -- involving strategies known to lawyers as the “Double Irish” and the “Dutch Sandwich” -- helped reduce its overseas tax rate to 2.4 percent, the lowest of the top five U.S. technology companies by market capitalization, according to regulatory filings in six countries. “It’s remarkable that Google’s effective rate is that low,” said Martin A. Sullivan, a tax economist who formerly worked for the U.S. Treasury Department. “We know this company operates throughout the world mostly in high-tax countries where the average corporate rate is well over 20 percent.” The U.S. corporate income-tax rate is 35 percent. Google, the owner of the world’s most popular search engine, uses a strategy that has gained favor among such companies as Facebook Inc. and Microsoft Corp.

Countless Companies U.S. The U.S. Banking malfeasance Inside the fraud factory. Home | About Us | Our Advertisers | Contact | Subscribe Inside the fraud factory An unwitting foot soldier inthe Wall Street mortgage mega-scam The biggest financial fraud in history If you've ever bought a house or arranged for refinancing pre-2003, you know it's a serious process with lots of people in the room including buyers, sellers, lawyers, real estate agents, mortgage brokers, title company agents and whoever else needs to be in the room to sign the paperwork.

It's a process that can take anywhere from 30 minutes to an hour or more. Once the paperwork is signed, it's sent to the County Courthouse to be legally recorded. Guess what? HUNDREDS OF BILLIONS OF DOLLARS worth of real estate documents created during the Go-Go Bush years were manufactured out of thin air. The loans may or may not have been legitimate, but the paperwork documenting them was entirely bogus, illegally handled and therefore INVALID. I'm using lots of caps to try to convey the seriousness of the situation. 1. 2. G.E.’s Strategies Let It Avoid Taxes Altogether. Drew Angerer/The New York Times <strong>A PRESIDENT’S BUSINESS LIAISON</strong>In January, President Obama named Jeffrey R. Immelt, General Electric’s chief executive, to head the President’s Council on Jobs and Competitiveness. “He understands what it takes for America to compete in the global economy,” Mr. Obama said. A Wealth of Exceptions Articles in this series will examine efforts by businesses to lower their taxes and the debate over how to improve the tax system.

More Articles in the Series » The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States. Its American tax bill? That may be hard to fathom for the millions of American business owners and households now preparing their own returns, but low taxes are nothing new for G.E. While General Electric is one of the most skilled at reducing its tax burden, many other companies have become better at this as well. Shocking Fraud from Financial Scum : Good Math, Bad Math. Whistle Blower Comes Forward With Solid Proof The Price Of Gold And Silver Is Being Manipulated By Major Financial Institutions. Host:YouTube Michael Mosley has set himself a truly ambitious goal: he wants to live longer, stay younger and lose weight in the bargain. And he wants to make as few changes to his life as possible along the way. He discovers the powerful new science behind the ancient idea of fasting, and he thinks he’s [...]

What can spelling tell us about relationships between words? While spelling may sometimes seem random or unexpected, this lesson illuminates how peeling back the layers of spelling helps us understand the complex history and meaningful structure of words. Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Part 7 Part 8 Part 9 Part 10 Felice Leonardo “Leo” Buscaglia Ph.D. Www.DrJones.TV is a website dedicated to the busy people of the world on how to lose weight, increase energy and maximize their health while on the go. We breathe constantly, but have you ever thought about how breathing works? Pentagon Paid Billions To Contractors Suspended For Fraud. WASHINGTON -- The military paid a total of $285 billion to more than 100 contractors between 2007 and '09, even though those same companies were defrauding taxpayers in the same period, according to a new Defense Department report.

What's perhaps most shocking is that billions of dollars went to contractors who had been either suspended or debarred for misusing taxpayer funds. The Pentagon also spent $270 billion on 91 contractors involved in civil fraud cases that resulted in judgments of more than $1 million. Another $682 million went to 30 contractors convicted of criminal fraud. The analysis was mandated by a provision that Sen. Bernie Sanders (I-Vt.) inserted into the defense bill last year. The measure also requested that the Defense Department recommend additional ways to punish the violating contractors, but the Report to Congress on Contractor Fraud concluded, "The department believes that existing remedies with respect to contractor wrongdoing are sufficient. " On Monday, Sen. Servicer-Driven Foreclosures: The Perfect Crime?