Bush Tax Cuts Are Working!?

October 10, 2007

 

Happy Days Are Here Again!  At least according to Marsha Blackburn (R-TN) they are.  She used her one minute speech in the House of Representatives yesterday to praise George Bush's tax cuts as the reason for this return to prosperity.  The CBO's 2007 report proves that Bush's tax cuts are working exclaimed Ms. Blackburn.  The budget is again in surplus for as far as the eye can see. 

Now... for the rest of the story:

In a July 2004 hearing of the House Budget Committee on Federal Revenue Options, CBO Director Douglas Holtz-Eakin gave very important testimony regarding how the CBO produces the report on the status of the economy for the Congress.  Congress uses this report to make spending decisions.  


 


Reason for the Hearing:

John Spratt (D-SC) said, as of the end of fiscal year 2003 revenues were at their lowest point since 1950. The revenues were only 16.2% of GDP

 

 

Rep John Linder (R-GA) said, "there has been 8 quarters in a row of declining revenues since 2001".

Rep. John Linder, "there is six trillion dollars offshore".



CBO Director Douglas Holtz-Eakin

Jim Nussle and John Spratt are the questioners:

For some strange reason :) this hearing was taken down from the Committee website, but there should be a hardcopy of it someplace:

The U.S. Tax Code's Impact on
Revenue Projections and the Federal Budget
-- 7/22/04


In 2005, the Congress made an offer to the multinational corporations they couldn't refuse.  They offered them a 5% tax rate if they would... PLEASE GOD... repatriate some offshore profits.

New York Times,  January 30, 2005, "Corporate Welfare Runs Amok"

"The administration has gone another step toward doing away with corporate taxes - by offering a "tax holiday" to America's richest multinationals. The 35% corporate tax rate is being winnowed down to the "puny rate" of 5.25% for corporations that bring their foreign profits home. The administration is offering a reward to corporations who have not been paying taxes as other corporations do.

Who do you think are the major corporate beneficiaries?

Why the "cash rich" pharmaceutical companies who shelter their foreign profits to avoid taxes: Merck has $15 billion in sheltered profits; Johnson & Johnson, $11 billion; Shering-Plough, $9.4 billion; Eli Lilly, $8 billion.... It is estimated that by the end of 2005 between $100 billion and $500 billion will be "repatriated."

 

Of course this offer of a 'tax holiday' was only for one year - but that doesn't really matter because the way the CBO projects tax revenues based on old data, that one year infusion of tax money is enough to balloon the CBO economic statistics for another 5 or 6 years allowing them to produce just glowing reports on economic progress as we see here in a chart included in the CBO August 2006 update: 

Stated bluntly, the government statistics on the health of the economy are a work of fiction - smoke and mirrors.  And with contractors running the government computer systems, it is in their interest to keep it that way - at least until they dissolve our nation completely into the North American Union.   This is what you call an administrative coup d'etat.  

What they are doing with the 3-year old data, projecting history and then projecting forward is accounting fraud to cover up the biggest heist in world history and an administrative coup d'etat on the United States government using the government accounting and control (FBI and NCIC and immigration systems) as the proverbial gun to the head to retain power while they dismantle our institutions and infrastructure and destroy our country. 

You can see the results of their projections by looking at the Annual Accountability Reports for Social Security that I accumulated in 2004.  Note the fact that the Social Security Administrator puts the following CYA disclaimer in the foreward on page 2:  When you contrast these statistics with what John Spratt said about the true revenue numbers for 2001 that were made available in 2004, you can clearly see the extent of the misrepresentation of the status of the economy. 

“We believe the performance and financial data presented in this report are complete and reliable as outlined by the guidance available from the Office of Management and Budget (OMB).

The major events to enable the coup are as follows:

) During the 1990's Alan Greenspan kept interest rates artificially low to fuel the tech boom which was in reality just a manufactured illusion.  The Fed was in control of the markets since 1987 when the Brady Commission recommended it.  In addition, Greenspan advised the Congress that the U.S. needed to import more workers because of 'shortages' due to both the illusory tech boom and to control inflation which he redefined to mean rises in worker salaries rather than the traditional definition of rises in price.  The 8 year expansion of the economy (that was fraudulent) plus using the accounting scam of withholding current data from the Congress gave roughly a 10 year time frame in which our economy could be drained of economic wealth while allowing the fraudsters to claim a 'booming' economy based on projections from old data.  We are just at the point now - in 2006 where the lost revenues to the treasury can no longer be covered up.

) Clinton sold out our country by signing the WTO and NAFTA agreements.  The WTO agreement includes a 'Generalized Preference' in trade with so-called developing countries which includes China, India and Mexico. In effect, Clinton was selling our country out from under us when he signed those agreements.  They were designed to put domestic American businesses at a greater disadvantage over 'developing' countries over and above our already higher labor and production costs. Then the Congress gave tax credits to corporations to move out of our country so they could take advantage of the trade preferences in third world countries while selling back into this country - putting domestic businesses out of business. In addition, these agreements included provisions for the 'free movement of workers' across borders which was a sell out of the American workers. The imported workers have been used to engage in labor arbitrage against American workers on our own soil.

 

Statements made by Senator Byron Dorgan (D-ND) on C-Span while talking about his book, "Take This Job and Ship It: How Corporate Greed and Brain Dead Politics Are Selling Out America.  Click the links below for the audio clip.

NAFTA - Trade Surplus to Trade Deficit with Mexico
 

Tax Credits to U.S. Corporations for Moving out of the Country
 

Trade Preferences for China over the U.S. producers

 

More Info:

CIA World Fact Book on U.S. Current Account (trade) deficits

Weak Dollar Little Help for Manufacturing

Weak dollar prompts record foreign buyouts of U.S. companies

America’s hegemonic status slipping away

Incredible shrinking paycheck

 

Vicky Davis, Computer Systems Analyst and an angry American Citizen