ÿþ<html> <head> <title>"U.S. Corporations Hoarding Profits" Working Minds Philosophy & Action Essay</title> <META name="author" content="G.E. Nordell"> <META name="copyright" content="Gary Edward Nordell 2011, all rights reserved"> <meta name="description" content="After the 72 issues of the free monthly WMail philosophy newsletter [2000-2007], essays from and for the Working Minds Philosophy of Empowerment are posted to the Dateline Chamesa blog and here on this website"> <meta name="keywords" content="philosophy,philosopher,truth,beauty,dynamic,genius, I.Q.,Mensa, genordell,fulfillment of mankind's potential,culture structure,working mind,warrior mind,enlightenment,existentialism,blasphemy,John Galt,Ayn Rand,Atlas Shrugged,Fountainhead,capitalism,transformation,Landmark Education,aynrand,ezine,blog,blogger,weblog,revolution,Camus,global warming,urgency,al haqiqa,truth,die Wahrheit,la vérité,waste,recycling,class war,stock market,stock market casino,wall street,distinction responsibility,responsibility,game theory,transactional analysis,eric berne,unemployment,unemployment in America,evil,distinction evil,barricades,win lose,win-lose,oligarchy,worry,solutions,meaning & purpose,meaning and purpose,labor,Reason-Based Taxation"> <META name="robots" content="index,follow"> </head> <body bgcolor="#deb887" text="#8b0000" link="#0000ff" alink="#4682b4" vlink="#000000" leftmargin=40 rightmargin=40> <basefont face="'Times New Roman',arial,helvetica" size="4"><center> <br><a href=index.htm>Home</a> " <a href=manifesto.htm>Manifesto</a> " <a href=WMail.htm>WMail ezine</a> " <a href=WMessays.htm>Essays</a> " <a href="/solutions/index.htm">Solutions</a> " <a href="/ebooks/index.htm">Free eBooks</a> " <a href=WMquotes.htm>Quotations</a> <p><a href=http://www.working-minds.com/index.htm><img src=images/WMbuttongray.gif border=0 width=464 height=79 alt="Working Minds Philosophy of Empowerment homepage"></a> <h1><big>Philosophy & Action Essays</big><br>Volume X - Essay #96: August 2011</h1> <p><img src="images/AFnote.gif"> <h1><big>"U.S. Corporations Hoarding Profits"</big></h1> <div align=left> <p>&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;<a href="http://www.working-minds.com/WMessay40.htm" target="_blank">Capitalism</a> is here defined as the creation of jobs, products, and services. This does not include the anti-capitalism practices of union-busting, off-shoring, asset-stripping, down-sizing, or cash hoarding that is claimed as the Divine Right of the <a href="http://www.working-minds.com/WMessay78.htm" target="_blank">Robber Barons</a> who have the <a href="http://www.working-minds.com/WMessay77.htm" target="_blank">sheeple</a> convinced that feudal economics is capitalism. <br>&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;<a href="http://www.genordell.com/stores/spirit/Bush43.htm" target="_blank">George Dubya Bush</a>'s economic Great Recession continues to deplete America's net worth, while increasing the share of the <a href="http://www.working-minds.com/WMessay42.htm" target="_blank">Oligarchs</a> (top one percent) and the Wealthy Class (top twenty percent) and shrinking the net worth of the rapidly-disappearing Middle Class. <br>&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;<a href="http://www.working-minds.com/WMessay93.htm" target="_blank">The Revolution</a> is never over, the <a href="http://www.working-minds.com/WMessay23.htm" target="_blank">Class War</a> is perpetual. And the Oligarchs are winning. (Because they lie and cheat, and it works.) <p>&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;The Master Class is intentionally hoarding their unearned profits, both within domestic corporations and in foreign bank accounts, because they already make plenty of money churning trades on the <a href="http://www.working-minds.com/WMessay18.htm" target="_blank">Stock Market Casino</a> (40 percent of G.D.P.!). By keeping capital in short supply they can charge higher interest and also prevent the Middle Class small business person from producing anything (thus no profit to them) and also prevent small businesses from hiring fear-driven workers. <p>&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;One element of the <a href="http://www.ReasonBasedTaxation.info/index.htm" target="_blank">Reason-Based Taxation</a> proposal is that corporations be taxed at a rate of FIFTY percent for profits in excess of 10 percent of revenue. Reason-Based Taxation encourages actual Capitalism by providing the incentives of raising wages, lowering prices, domestic expansion, or buying treasury shares as simple methods to reduce profits below that 10 percent boundary. What you will see below is the extant of the greed that is today in violation of the Reason-Based Taxation proposal parameters. <p><center>* *&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;* *&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;* *&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;* *</center> <br>&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;This data is based on a January 2011 <a href="http://www.theatlantic.com/" target="_blank">Atlantic Monthly</a> article and other sources; revenue and profit figures are a consensus of projections for 2011. Notice that the Top Ten are made up of three banks, three computer companies, two oil companies, one drug company, and <a href=corpns.htm#walmart target="_blank">Wal-Mart</a>. </div> <p><big><b>Exxon Mobil</b></big> <br>Projected 2011 profits of $32.3 billion on revenue of $417.6 billion equals 12.93%<br>Exxon Mobil also has $35 billion in untaxed foreign profit<br>Per Fortune Magazine, Exxon Mobil does so much international business that over 80% of its 2009 profit came from overseas. Due to excess profits at the pump, Exxon Mobil, while second to WalMart in total revenue, nonetheless managed a 2010 net profit nearly double that of Walmart's &ndash; $30.5 billion to $16.4 billion. <p><big><b>Microsoft</b></big> <br>Projected 2011 profits of $21 billion on revenue of $73.4 billion equals 28.6% <br>Microsoft also has $29.5 billion in untaxed foreign profit <p><big><b>Chevron</b></big> <br>Projected 2011 profits of $19.8 billion on revenue of $247.23 billion equals 8% <p><big><b>JPMorgan Chase</b></big> <br>Projected 2011 profits of $19.1 billion on revenue of $101.57 billion equals 18.8% <p><big><b>Pfizer</b></big> <br>Projected 2011 profits of $18.3 billion on revenue of $66.09 billion equals 27.7% <br>Pfizer also has $48.2 billion in untaxed foreign profit <p><big><b>Apple, Inc.</b></big> <br>Projected 2011 profits of $18.2 billion on revenue of $103.3 billion equals 17.6% <p><big><b>Bank of America</b></big> <br>Projected 2011 profits of $16.3 billion on revenue of $109.7 billion equals 14.9% <p><big><b><a href=corpns.htm#walmart target="_blank">Wal-Mart</a></b></big> <br>Projected 2011 profits of $15.7 billion on revenue of $444.2 billion equals 3.53% <p><big><b>I.B.M.</b></big> <br>Projected 2011 profits of $15.6 billion on revenue of $103.15 billion equals 15.12% <br>I.B.M. also has $31.1 billion in untaxed foreign profit <p><big><b>Wells Fargo & Co.</b></big> <br>Projected 2011 profits of $15.3 billion on revenue of $84.8 billion equals 18% <p><center>* *&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;* *&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;* *&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;* *</center> <br>There are, of course, large and even smaller corporations such as Goldman Sachs that are making huge profits<br>percentage-wise without being on this list. Such companies in the 'also ran' category include: <p><big><b>AT&T</b></big> <br>AT&T had higher net profits than Wal-Mart in 2010 <br>AT&T reported 2010 profits of $19.86 billion on revenue of $124.3 billion equals 16% <p><big><b>Cisco Systems</b></big> <br>Cisco Systems is hoarding $31.6 billion in untaxed foreign profit <p><big><b>Citigroup</b></big> <br>Citigroup is hoarding $32.1 billion in untaxed foreign profit <p><big><b>General Electric</b></big> <br>General Electric paid <u><b>NO</b></u> U.S. corporate income tax for 2010 on revenue of $150.2 billion <p><big><b>Goldman Sachs</b></big> <br>2010 profits of $8.4 billion on revenue of $39.16 billion equals 21.45% <p><big><b>Merck</b></big> <br>Merck is hoarding $40.4 billion in untaxed foreign profit <p><big><b>Procter & Gamble</b></big> <br>Procter & Gamble is hoarding $30 billion in untaxed foreign profit <p><center>* *&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;* *&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;* *&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;* *</center> <div align=left> <br>&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;There is right now a gigantic pile of cash stashed away by U.S. corporations in European banks and elsewhere, waiting for another 'free pass' like the Bush Administration set up for them in 2004. Instead of paying the then-current 35% corporate income tax rate, $362 billion was repatriated at a <b>5&frac14 percent tax rate</b>, at a loss to tax payers of $70 billion. But, as is typical of shenanigans devised by the <a href=barbarians.htm target="_blank">fascist</a> Oligarchy, the stated purpose for the special rate of hiring more workers did not happen: virtually the entire low-tax repatriation of 2004 resulted in payouts to executives and shareholders (and a few purchases of treasury shares) - no jobs were created. <br>&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp;The Oligarchs are singing the same song and dance this time; anyone who believes them is a fool. And since the hoard is much larger &ndash; estimated at one trillion dollars of the pharmaceutical industry, one trillion dollars of the banking & finance industry, and one trillion dollars of the insurance industry &ndash; the loss to taxpayers could be as much as $900 billion. </div> <p><i>[copyright 2011 by Gary Edward Nordell, all rights reserved]</i> <p><hr width=500 color=green> <p><a href=WMessay97.htm>jump to Essay #97</a> <p><a href=WMessays.htm>back to Working Minds Essays Index Page</a> <p><a href="WMailindex.htm" target="_blank">Index of All Issues of the 'WMail' philosophy ezine [2000-2007]</a> <p><a href="index.htm">back to Working Minds Philosophy homepage</a> <p><script type="text/javascript" language="JavaScript" src="http://hits.nextstat.com/cgi-bin/wsv2.cgi?104831"></script><noscript><a href="http://www.webstat.com"><img src="http://hits.nextstat.com/scripts/wsb.php?ac=104831" border="0" alt="Web Metrics and Site Analytics by NextSTAT" /></a></noscript> </center> </body> </html>