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Find out how the richest americans use tax incentives, 'legal' kick backs & government subsidies to get richer and richer at the expense of the average american tax payers whose real income peaked in 1973. That's the figure quoted in the book for the lower 90% of all americans. So all of america's increase in wealth in the last 3+ decades has gone to the richest 10%.
The author of this book, David Cay Johnston, has appeared on all the independent news shows to discuss it. Below is a sampling of the best. The DN interview is most revealing, but the others add a bit of detail as well. NPR will also, of course, throw in some right wing BS to appear 'balanced' and keep their corporate task masters, i mean, underwriters happy.
The Subsidy issues are a bit more difficult to understand, but pretty interesting. Bush Jr., for example, made almost of all of his wealth, before becoming president, from a tax deal to subsidize a new Texas Rangers stadium, which he and his partners promptly sold at a large profit. All, not some, of the profit was provided by the tax subsidy which allowed them to build the stadium cheaply, increase the value of the team and then sell it at a massive profit. Sounds sort of normal from the outside. But if you look closer at this and similar deals you see that most, if not all, of the increased value in the sports teams comes from new stadiums which the tax payers fund, allowing the owners to get them for a small price + the massive subsidy awarded them. And then it is theirs in most cases. Or it adds tons of ticket revenues and therfore value to the team, which they can then sell at a much higher price. Except it was never their money. It was yours, the tax payers. Its sublte, but obvious in the end.
The perceived benefit from a big sports stadium or Wal Mart shopping complex is nil, as the Johnston points out in the book. Studies done during professional baseball and football strikes show that if there isnt a game in town on a particular weekend, then people just do something else—go to a movie, dinner, etc. About the same amount of money flows through local economies whether there is a game on or not.
The tax break issue is simpler and more relevant, because it effects all americans everyday and, i would argue, is destroying the very landscape of the country, which has turned into and endless strip mall that repeats the same corporate restaurants, retail outlets and bulk discounters in almost every single town of any size i've seen in america over the last decade. If there is one without a Wal Mart, Target, Home Depot or one of their corporate cousins, i'd luv to hear about it.
The issue is basically this—all those big corporation work out the sweetest possible terms when they build a new store in your town. Those terms often include direct cash subsidies. ie. your city council votes to give Wal Mart a few million dollars, tax free, of tax payer money, so they will open a store there, rather than in the next town, which scares them into thinking that people will start moving to that next town, buying their gas and groceries there and everything else. So municipal governments usually give the corporations what they want. There is often a short public hearing required. That can be held at a strange time on a busy night without much notice and not draw much attention, if necessary.
Then you would expect a lot of that money to come back into the local economy through property taxes, sales taxes and more indrectly, through more jobs and shopping at other stores in the area and such. That, however, is rarely the case. Because a lot of these deals also include incentives where the corporation is allowed to keep the sales tax you pay. So when you buy something at Wal Mart, there is a good chance you are paying tax to Wal Mart, not your local or state government.
These sort of bulk business strip mall enterprises are also the ones most often accused of mistreating employees. In the end it means you get some of the worst paying jobs in the economy, with terrible, if any, benefits. Most locally owned businesses without the benefit of any subsidies or tax breaks eventually go out of business. How can they compete against an international corporation that doesnt even have the burden or risk of having to pay rent in many cases (ie. the value of tax breaks and subsidies is far greater than the lease value of most these commerical properties).
If you like the book. Dont be fucking stupid and go buy it Barnes & Nobel in your local strip mall for god's sake. Thats a bit too ironic, dont you think? Find a local bookstore if one still exists. You already give the local Barnes & Nobel/ Wal Mart/Target complex a lot of your tax money. You want to give them the rest of your salary too?