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Corporations pushing for job-creation tax breaks shield U.S.-vs.-abroad hiring data

The Washington Post points us to a thought that needs to be included in public debate. (h/t Stormy)

Corporations pushing for job-creation tax breaks shield U.S.-vs.-abroad hiring data

Some of the country’s best-known multi­national corporations closely guard a number they don’t want anyone to know: the breakdown between their jobs here and abroad.

So secretive are these companies that they hand the figure over to government statisticians on the condition that officials will release only an aggregate number. The latest data show that multinationals cut 2.9 million jobs in the United States and added 2.4 million overseas between 2000 and 2009.

Some of the same companies that do not report their jobs breakdown, including Apple and Pfizer, are pushing lawmakers to cut their tax bills in the name of job creation in the United States.

Apple, by the way, is at the top or close to the top, in recent profits. GE has deceased its per centage of US workers from 54% to 46% in the last decade. Few contenders in the presidentail elections or Congressional elections make this notion a part of their campaigns. The debate in regular media usually stops at words like ‘protectionism’. The next time you read about tax cut money flowing to create jobs, hold in mind global trade demands that companies actually respond to, and do not think US jobs are a priority. The rhetoric merely implies a vague ideal…not company policies.

Perhaps multi-national companies need to be lean and mean to thrive, and raising the overall living standards of the world has trememdous benefits for people in general, and of course some problems that go with it. Just don’t think that election political rhetoric has US public benefit in mind overall as a priority high on the list.

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Taxes and the deficit

This morning in his Monday column Paul Krugman discussed the need to raise taxes to
deal with the long run structural federal deficit.

You can read the column at Economist’s view without worrying about the Times’ pay wall.

Every time any one proposes higher taxes Larry Kudlow and the right wing noise machine shouts to the rooftops that it is a tax the rich scam and that there are not enough wealthy people to raise the necessary revenues.

But as usual with these claims maybe we should actually look at the data before we accept this meme. Since 1980 the top 5% of family’s share of national income has increased from 15% to 21% — the percent is derived from the five year moving average centered on 1980 and 2007. The last year that this data is available is 2009

Source: Bureau of the Census/Haver Analytics

If we taxed away half of this increased share of national income it would generate a sum roughly equal to 3% of GDP, or about the CBO estimate of the long run structural deficit.

Moreover, it would still leave the top 5% of families with some 15% of national income, a larger share than was ever recorded before 1993.

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