Propaganda ~ U.S. Corporate Taxes
Of course, the WSJ crowd point out that lots of companies simply didn't make any money during that period. Well,, I would ask ~ If that is so, how many of the corporate execs who are paid astronomical compensation packages actually lost a job in that period? If they did lose their job for poor performance, did they get the big severance deal? Why the need for the astronomical packages in the first place if the execs are so incompetent at what they do? And what about the teams of expensive accountants and lawyers that the corporations deploy to try to avoid taxes or the union-busters they hire, or the PR firms to spin their (whether actual or perceived) questionable practices of various sorts?
The WSJ folks are not fools, they are ideologues. They recognize that our nominal tax rates generate "huge compliance costs as businesses scramble to exploit the loopholes, with the result of less revenue for the government." But they don't want to talk much about the costs of exploiting loopholes by such means as the transfer pricing that The Times points to and they surely have nothing really to say about the exorbitant compensation levels for corporate execs relative to the workers in their own firms or their peers abroad.* Like all good propagandists, the WSJ folk do not actually lie, they simply don't bother with the truth.
* E.g., "American CEOs earned 411 times as much as average workers in 2005, up from 107 times in 1990. ... Top executives in the U.S. now make about twice the pay of their counterparts in France, Germany and the U.K., and about four times that of Japanese and Korean corporate chieftains." (Source)
Labels: political economy