Happy Tax Day, suckers

[marmar]

Taxed by the boss

By David Cay Johnston
April 12, 2012


(Reuters) Across the United States more than 2,700 companies are collecting state income taxes from hundreds of thousands of workers – and are keeping the money with the states’ approval, says an eye-opening report published on Thursday.

The report from Good Jobs First, a nonprofit taxpayer watchdog organization funded by Ford, Surdna and other major foundations, identifies 16 states that let companies divert some or all of the state income taxes deducted from workers’ paychecks. None of the states requires notifying the workers, whose withholdings are treated as taxes they paid.



General Electric, Goldman Sachs, Procter & Gamble, Chrysler, Ford, General Motors and AMC Theatres enjoy deals to keep state taxes deducted from their workers’ paychecks, the report shows. Foreign companies also enjoy such arrangements, including Electrolux, Nissan, Toyota and a host of Canadian, Japanese and European banks, Good Jobs First says.

Why do state governments do this? Public records show that large companies often pay little or no state income tax in states where they have large operations, as this column has documented. Some companies get discounts on property, sales and other taxes. So how to provide even more subsidies without writing a check? Simple. Let corporations keep the state income taxes deducted from their workers’ paychecks for up to 25 years. ....................(more)

The complete piece is at: http://blogs.reuters.com/david-cay-johnston/2012/04/12/taxed-by-the-boss/

[Warpy]

1. I knew NM did this one

to attract the type of industries that were relatively non polluting and didn't require a lot of water. Intel and the film industry are two of the industries that have benefited from this policy by moving here. Both employ a lot of people who go out and pay sales taxes so it's been a pretty good idea.

[fasttense]

2. And its done in secret.

Those workers think they are paying taxes for roads, education, government functions. But instead the corporations just keeps all the state taxes they collect from their wages. Talk about welfare for corporations and redistributing the wealth to the rich.

Their paychecks record the deductions as state taxes, they should record it as charity for the rich. Why all the lies? Becaus if they marked the paychecks truthfully, the workers would be up in arms, they would be protesting and fighting it. But because the state governments, in collusion with the fascist corporations, let them lie to the workers and mark the deductions as state taxes, then no one knows unless the media tells them.

America, home of secret fascism.