Memo to Fox News & GOP: America Has the Second-Lowest Business Taxes In the World
OurFuture.org, 10/21/08
David Sirota
Last week, I appeared on Fox News to discuss Barack Obama’s tax proposals.
Not surprisingly, the “debate” centered around the false premise that Obama’s tax cuts are actually welfare. I say that’s false because - as I pointed out on the show - everyone pays some form of taxes, whether it’s income, property, sales or payroll taxes. When you take all those taxes together, most working- and middle-class Americans pay a higher effective tax rate than the Warren Buffetts of the world (as Warren Buffett, by the way, readily acknowledges). So Obama’s plan to pass refundable income tax credits is only a handout if you look exclusively at one slice of taxes - in this case, income taxes. But in the overall tax scheme, those tax credits are aimed at better equalizing the tax structure so as to diminish the gap between Warren Buffett’s very low effective tax rate and Joe Sixpack’s high effective tax rate. Only in the asylums of Fox News and Republican Party politics is reducing that effective tax rate gap billed as theft from the rich to finance “welfare.”
This concept of effective tax rates (ie. the tax rate actually paid and enforced) is key to understanding the most telling part of this Fox News discussion - the part at the end where former Bush-Cheney spokeswoman Jennifer Millerwise Dyck parrots McCain campaign talking points about America supposedly having a very high corporate tax rate in relation to the rest of the world. This, says Dyck and fellow Republicans, is driving businesses to move offshore.
It sounds like a credible storyline, especially considering that officially, our corporate tax rate is somewhere between 35 and 39 percent. But, as always, the devil is in the details.
To know how high - or low - the effective tax rate is, you have to go beneath the top-line rate and account for all the loopholes, subsidies and write-offs - and the way to do that is by looking at corporate tax revenues as a percentage of a country’s GDP. That way, you know how much corporations are actually paying as a share of your overall economy - in other words, you know the real corporate tax rate, not the fake one advertised by top-line numbers. And when you look at America’s tax structure through this lens, you see that even the Bush Treasury Department admits we have the second lowest effective corporate tax rate in the industrialized world (see page 42 of this report).
Indeed, this explains the dissonance between Republican claims of “highest corporate income tax rate in the world” and the recent Government Accountability report showing that most corporations pay no corporate income taxes at all. The latter is the truth - most corporations don’t pay any taxes because of loopholes, writeoffs and subsidies that allow them to effectively reduce that 35 percent corporate tax rate to zero. In fact, many profitable corporations actually collect tax rebates. But as I told Fox News, we don’t hear criticism of that kind of “corporate welfare” from the Republican mouthpieces deriding Obama’s middle-class tax cuts as welfare.
As you can see from the video clip, when the GOP parrot I’m debating throws out the standard “high corporate tax” canard, I revert to the actual facts over and over and over again, to the point where Fox News feels the need to drown me out with music at the end. And I was, of course, rewarded with the usual river of hate email from Fox News viewers, most of which reaffirmed the dittohead nature of the modern conservative audience in that almost every email included exactly two links purportedly “proving” the GOP talking point - one a link to U.S. News and World Report’s right-wing business columnist, the other to the fringe Tax Foundation, a group funded by Scaife, Koch and the usual constellation of Wingnuttia’s trust-fund babies. You’ll notice that both of these sources focus only on the official tax rate, not the effective tax rate - deliberately misleading their readers about the facts.
The good news is that polling shows most Americans do not think the big problem facing our country is that wealthy corporations are oppressed by high taxes. That is, most Americans live in the “reality-based” world and understand that if anyone is winning big from the Bush-McCain tax policies, it is Corporate America and the super-rich. So if the GOP wants to attack Obama for trying to cut 95 percent of America’s taxes - if they want to lash their electoral hopes to a promise to give Big Business another tax handout - then I say that’s great. They are helping progressives build a landslide and an election mandate.
http://www.ourfuture.org/blog-entry/2008104321/memo-fox-news-gop-america-has-second-lowest-business-taxes-world
‘Joe the plumber’ isn’t licensed
Article published Thursday, October 16, 2008
SPRINGFIELD TOWNSHIP
By LARRY VELLEQUETTE and TOM TROY
BLADE STAFF WRITERS
Local man focus of presidential debate
Joe Wurzelbacher views the debate from his Springfield Township home.
( THE BLADE/LORI KING )
“Joe the Plumber” isn’t a plumber — at least not a licensed one, or a registered one.
A check of state and local licensing agencies in Ohio and Michigan shows no plumbing licenses under Samuel Joseph Wurzelbacher’s name, or even misspellings of his name.
Last night, his name, “Joe the Plumber,” came up about two dozen times in the debate between Mr. Obama and Republican nominee John McCain.
Since last night Mr. Wurzelbacher who lives alone with his 13-year-old son has been besieged with local and national news media, willingly granting interviews.
Mr. Wurzelbacher told reporters Thursday morning that he worked for Newell Plumbing & Heating Co., a small local firm whose business addresses flow back to several residential homes, including one on Talmadge Road in Ottawa Hills.
According to Lucas County Building Inspection records, A. W. Newell Corp. does maintain a state plumbing license, and one with the City of Toledo, but would not be allowed to work in Lucas County outside of Toledo without a county license.
Mr. Wurzelbacher said he works under Al Newell’s license, but according to Ohio building regulations, he must maintain his own license to do plumbing work.
He is also not registered to operate as a plumber in Ohio, which means he’s not a plumber.
Mr. Wurzelbacher said he was hired by Mr. Newell six years ago and that the possibility of him eventually buying the company was discussed during his job interview.
He said it’s his understanding he can work under Mr. Newell’s license as long as the licensed contractor works on the same site.
Mr. Wurzelbacher said he is working on taking the Ohio plumbing contractors’ license test.
Mr. Wulzerbacher’s notoriety has raised the ire of Tom Joseph, business manager for Local 50 of the United Association of Plumbers, Steamfitters, and Service Mechanics, who claimed that Mr. Wulzerbacher didn’t undergo any apprenticeship training.
“When you have guys going out there with no training whatsoever, it’s a little disreputable to start with,” Mr. Joseph said. “We’re the real Joe the Plumber.”
Mr. Joseph said Mr. Wulzerbacher could only legally work in the townships, but not in any municipality in Lucas County or elsewhere in the country.
“This individual has got no schooling, no licenses, he’s never been to a training program, union or non-union, in the United States of America,” Mr. Joseph said.
The association has endorsed Barack Obama, according to Mr. Joseph.
Questions were raised Thursday morning whether Mr. Wurzelbacher is a registered voter.
Linda Howe, executive director of the Lucas County Board of Elections, said a Samuel Joseph Worzelbacher, whose address and age match Joe the Plumber’s, registered in Lucas County on Sept. 10, 1992. He voted in his first primary on March 4 of this year, registering as a Republican.
Ms. Howe said that the name may be misspelled in the database.
Mr. Wurzelbacher, 34, acknowledged during an interview at his home late Thursday morning that he knows he’s “a flash in the pan,” after his fame spread for an impromptu debate he had in front of his Springfield Township home with Mr. Obama last Sunday.
Mr. Wurzelbacher said he objects to Mr. Obama’s plans to raise income taxes on incomes above $250,000. He said he makes no where near that much money but he would not say how much he makes or if he ever expects to make $250,000. Court records from a divorce show Mr. Wurzelbacher made $40,000 in 2006.
He said, “Is it right to take someone’s money because they work a little harder? It’s taking away from someone’s hard work.”
Mr. Wurzelbacher said he disagrees with the idea of people being taxed at a higher rate because they earn more.
“They’re going to take more of your money because you’ve been more successful,” he said.
In January, 2007, the Ohio Department of Taxation placed a lien against him because $1,183 in personal property taxes had not been paid, but there has been no action in the case since it was filed.
Mr. Wurzelbacher was playing football in his front yard with his son, Joey, on Sunday afternoon when Mr. Obama made an unscheduled stop to go door to door greeting voters and asking for their support.
In his conversation with Mr. Wurzelbacher, Mr. Obama tried to justify his plan tax breaks to 95 percent of Americans and raise taxes on incomes above $250,000.
Mr. Obama said his plan would improve the economy for other people trying to get a start in small business, and “spread the wealth.”
The phrase was quickly picked up by conservative bloggers and commentators saying it reveals a desire to redistributed wealth on the part of Mr. Obama.
During that same conversation, Mr. Wurzelbacher advocated a flat tax to Mr. Obama under which everyone would pay the same rate of tax which was a feature of Mike Huckabee’s unsuccessful campaign for the Republican nomination this year.
Mr. Wurzelbacher said he was surprised by the spread the wealth phrase.
“That’s a pretty socialist comment. Two-fifty ($250,000) is his number now. When is it going to be one fifty ($150,000), when it’s going to be one hundred ($100,000)?”
He continued: “If you believe him, I would be receiving his tax cut,” adding that he would not want the tax cut.
He won’t say who he will vote for on Nov. 4, but did say he likes Republican vice presidential candidate Sarah Palin.
He said he was born in the Toledo area, lived until he was 13 in the Florida Panhandle area, went to Springfield High School, and then entered the U.S. Air Force. He was stationed at an Air Force base in Alaska from 1992 until 1995. He said he was honorably discharged.
Mr. Wurzelbacher also said he lived in Arizona from 1997 until 2000.
‘Joe the Plumber’ is focus of presidential debate’s first few minutes
From earlier editions of toledoblade.com
By BRIDGET THARP and MARK ZABORNEY
BLADE STAFF WRITERS
The story of “Joe the Plumber” - Joe Wurzelbacher of Shrewsbury Street in Springfield Township - became a centerpiece of the early minutes of the presidential debate last night.
And Joe the Plumber became the subject of national and international interest.
Mr. Wurzelbacher, 34, was more interested in taking in the debate than in assessing his place in presidential politics.
“Honestly, I’m a small part of it,” Mr. Wurzelbacher said. “They’re just using me as an example right now for the American public. I think they’re discussing more important is-sues.”
He excused himself so he could finish watching Barack Obama and John McCain debate.
But after the debate, Mr. Wurzelbacher expressed some embarrassment that he was now known across America as Joe the Plumber.
“There’s a lot more important issues than me, and I’m starting to feel a little uncomfortable with it,” he said. “Everyone’s more worried about what Joe the Plumber has to say than what Obama or McCain has to say.”
While watching the debate at home with his father, he was interrupted several times by calls from the national media including CNN, Fox News, and Good Morning America. In addition, CNBC, ABC News, the Wall Street Journal, the Houston Chronicle, and the BBC called The Blade in their quest to reach Joe the Plumber.
Mr. Wurzelbacher and Mr. Obama had something of a debate Sunday as the candidate walked house to house on Shrewsbury at the start of the candidate’s four-day visit in the Toledo area.
He told Mr. Obama that he was trying to buy a plumbing business.
“I’m being taxed more and more for fulfilling the American dream,” Mr. Wurzelbacher said Sunday.
Mr. Obama said, in part, “It’s not that I want to punish your success. I just want to make sure that everybody that is behind you, that they have a chance for success, too.
“I think that when you spread the wealth around, it’s good for everybody.”
The exchange was caught on videotape and was broadcast on a variety of news outlets and put on numerous Web sites, including YouTube.
It was the “spread the wealth around” comment that caught the attention of conservative commentators, including Rush Limbaugh, and in discussions on the Internet. Mr. Wurzelbacher was a guest of Fox News’ Neil Cavuto on Tuesday.
During the debate, Mr. McCain challenged Mr. Obama: “Joe wants to buy the business that he has been in for all of these years, worked 10, 12 hours a day. And he wanted to buy the business, but he looked at your tax plan and he saw that he was going to pay much higher taxes.”
“You were going to put him in a higher tax bracket which was going to increase his taxes, which was going to cause him not to be able to employ people, which Joe was trying to realize the American dream,” Mr. McCain said.
Mr. McCain then looked directly into the television camera and said: “Joe, I want to tell you, I’ll not only help you buy that business that you worked your whole life for and I’ll keep your taxes low and I’ll provide available and affordable health care for you and your employees. And I will not stand for a tax increase on small-business income.”
Mr. Obama denied that was true.
“Not only do 98 percent of small businesses make less than $250,000, but I also want to give them additional tax breaks because they are the drivers of the economy,” Mr. Obama said. “They produce the most jobs.”
Mr. Wurzelbacher came up again when the debate turned to a discussion of health-care policies.
Mr. McCain charged that Mr. Obama’s plan would fine the company Mr. Wurzelbacher wanted to buy; Mr. Obama said small businesses were exempt.
“Hey Joe, you’re rich. Congratulations,” Mr. McCain said mockingly.
Mr. Obama didn’t win Mr. Wurzelbacher’s support on Sunday, and he didn’t change his mind last night.
He did allow, “Obama, you can’t take away that he’s a damn good speaker.”
Overall, though, Mr. Wurzelbacher was pleased with Mr. McCain’s performance.
“McCain was doing much better this time,” he said. “McCain came across with some solid points. I like his tax cuts.”
But he said Mr. Obama’s health-care plan scares him.
“It’s just one step closer to socialism,” he said.
He said he hopes both candidates will talk about family and family values before the November election because he believes problems such as education and senior health care should come back to families taking care of each other. “Sense of family has to be brought back,” Mr. Wurzelbacher said.
He added: “I believe there was too much emphasis put on me. The debate was more important.”
Information from the Associated Press was used in this report.
Contact Bridget Tharp at:
btharp@theblade.com
or 419-724-6061.
http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20081016/NEWS09/810160418/-1/NEWS
Sacramento GOP site deletes Obama, Osama material but retains ‘ridiculous’ rumor
Rawstory.com
Ron Brynaert, October 15, 2008
Welcome to The Sacramento County Republican Party
The Party of Abraham Lincoln, Theodore Roosevelt, Ronald Reagan, and Freedom
A Republican website which linked Sen. Barack Obama to terror mastermind Osama bin Laden and also called for the waterboarding of the Democratic presidential candidate has taken most of the offensive material down, but still sports a “ridiculous” chain e-mail based on a conservative’s satirical column, RAW STORY has found.
“Sacramento County Republican leaders Tuesday took down offensive material on their official party Web site that sought to link Sen. Barack Obama to Osama bin Laden and encouraged people to ‘Waterboard Barack Obama’ – material that offended even state GOP leaders,” Ed Fletcher reports for the Sacramento Bee. “Gov. Arnold Schwarzenegger, who has pushed the party to try to broaden its appeal, took issue with the site. ‘In the governor’s view, it’s completely and totally inappropriate,” said Julie Soderlund, a Schwarzenegger spokeswoman.’”
However, on its front page, the website (SacramentoRepublicans.org) retains a copy of a chain e-mail which has been widely debunked.
“Hot on the heels of his explanation for why he no longer wears a flag pin, presidential candidate Senator Barack Obama was forced to explain why he doesn’t follow protocol when the National Anthem is played,” the material taken from a chain e-mail states.
“As I’ve said about the flag pin, I don’t want to be perceived as taking sides,” Obama said. “There are a lot of people in the world to whom the American flag is a symbol of oppression. And the anthem itself conveys a war-like message. You know, the bombs bursting in air and all. It should be swapped for something less parochial and less bellicose. I like the song ‘I’d Like to Teach the World to Sing.’ If that were our anthem, then I might salute it.”
The non-partisan website FactCheck.org calls the e-mail “ridiculous,” noting that it was derived “from a column dated Oct. 27, 2007, on a Web site called the Arizona Conservative, which is written by John Semmens and clearly labeled as humor. His column, in fact, is called ‘Semi-News—A Satirical Look at Recent News.’
“This is a ridiculous example of how false stories are started, spread and, in many cases, believed,” FactCheck says. “Nevertheless, his column on Obama has been copied and sent around in e-mails, masquerading as true stories. The reader who asked us about it said he received it from a conservative Republican co-worker. The e-mail included a note calling Obama’s candidacy ‘a joke.’”
FactCheck continues, “In this case, the joke is the message falsely quoting Obama, and it’s on whomever is gullible enough to believe it’s true.”
Urban legend site Snopes notes that the e-mail is still in circulation.
“In September 2008, this same piece began arriving in our inbox headed by the claim that it was derived from the 7 September 2008 airing of Meet the Press and naming the interviewer as ‘General Bill Ginn, USAF (ret.),’” the website states. “It goes without saying that Senator Obama wasn’t among the guests on that day’s show (those were Senator Joe Biden and author Tom Friedman).”
Also, although the following photo was removed from the front page of the site, it is still hosted on the official Sacramento Republican party’s website server:
Excerpts from Sacramento Bee report:
####
Taking credit for the site (sacramentorepublicans.org) and its content was county party chairman Craig MacGlashan – husband of Sacramento County Supervisor Roberta MacGlashan.
....
But he defended his Web site. “I’m aware of the content,” he said. “Some people find it offensive, others do not. I cannot comment on how people interpret things.”
Kevin Johnson, the dean of the University of California, Davis, law school, said he was taken aback by the Web site’s warning to “Be Afraid. Be Very Afraid” of Obama. It was removed later Tuesday.
“Just sad,” Johnson said. “It suggests to me that we haven’t gone as far as we would have liked in putting racism to bed.”
“It’s disappointing that something like this would show up on the Republican Party Web site,” Johnson continued. “Maybe someone hacked into it. That would make me feel better. This is hateful stuff.”
http://rawstory.com/news/2008/GOP_site_that_linked_Obama_bin_1015.html
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