IF YOU WOKE UP FEELING VIOLATED IT WAS CONGRESS PASSING FAST TRACK TRANS PACIFIC TRADE PACT!
Please understand that TPP is illegal----they are not allowed to sign agreements that take away the American people's ability to change law. So, work hard on getting rid of Clinton neo-liberals and Bush neo-cons and we will get rid of it at national and state levels. In Baltimore we see the same things with TIF and credit bond leverage where agreements with decades of tax breaks are given to global corporations while the coming bond market crash will leave the city crippled economically. They will say these contracts are legally binding BUT THEY WERE NEVER IN THE PUBLIC INTEREST AND THEY PLANNED THE ECONOMIC CRASHES FOR GOODNESS SAKE! If your courts rule these things legal-----
YOU CAN IMPEACH JUDGES THAT DO NOT FOLLOW US CONSTITUTIONAL LAW----TPP IS GLOBAL LAW. Get engaged at all levels and BE THE CANDIDATES IN PRIMARIES AGAINST NEO-LIBERALS AND NEO-CONS!
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Let's talk corporate tax reform and especially how small businesses continue to struggle under higher taxation than their global corporate competitors. It is no secret----global corporations do not pay taxes. The subsidies----the special tax breaks given just for their being in a city and Trans Pacific Trade Pact may make a nation unable to tax global corporations ----while small businesses pay. Greece has always been an economic mess and it has been third world for that reason. One of the things that make it third world is that NO ONE PAYS TAXES....
THE RICH AND CORPORATIONS DON'T AND SO THE PEOPLE AVOID PAYING AS WELL----ERGO, GREECE HAS ALWAYS BEEN IMPOVERISHED.
That is to where all of this avoidance will lead in the US. The difference will be----because all of American's financial dealings are online the IRS will capture tax avoidance of the masses while corporations and the rich pay nothing. This is how you move the US to a third world nation.
So, Baltimore like other cities being gentrified with global corporations gets no tax revenue and very little jobs with only patronage 'donations' and private investment grants. Meanwhile, Baltimore has crumbled and its citizens soaked with taxation, fees, and fines.
THIS IS HOW A THIRD WORLD NATION WORLDS FOLKS!
If Corporations Don't Pay Taxes, Why Should You?
The tax savings of 19 US companies that park their money abroad would be more than enough to cover the $85 billion sequester cuts.
Robert Scheer March 12, 2013
US corporations such as GE have avoided taxes entirely in recent years. (AP Photo/EyePress.)
This story originally appeared at Truthdig. Robert Scheer is the author of The Great American Stickup: How Reagan Republicans and Clinton Democrats Enriched Wall Street While Mugging Main Street (Nation Books).
Go offshore young man and avoid paying taxes. Plunder at will in those foreign lands, and if you get in trouble, Uncle Sam will come rushing to your assistance, diplomatically, financially and militarily, even if you have managed to avoid paying for those government services. Just pretend you’re a multinational corporation.
Robert Scheer That’s the honest instruction for business success provided by 60 of the largest US corporations that, according to a Wall Street Journal analysis, “parked a total of $166 billion offshore last year” shielding more than 40 percent of their profits from US taxes. They all do it, including Microsoft, GE and pharmaceutical giant Abbott Laboratories. Many, like GE, are so good at it that they have avoided taxes altogether in some recent years.
But they all still expect Uncle Sam to come to their aid with military firepower in case the natives abroad get restless and nationalize their company’s assets. We still have a blockade against Cuba because Fidel Castro more than a half century ago dared seize an American-owned telephone company. During that same period, we have consistently intervened to maintain the lock of US corporations on the world’s resources, continuing to the present task of making Iraq and Libya safe for our oil companies.
America’s multinational corporations still need the Navy to protect shipping lanes and the Commerce Department to safeguard US copyrights. They also expect the Federal Reserve and Treasury Department to intervene to provide bailouts and cheap money when the corporate financial swindlers get into trouble, like GE, which almost went aground when its GE Capital financial wing got caught in the great banking meltdown.
They want a huge US government to finance scientific breakthroughs, educate the future workforce, sustain the infrastructure and provide for law and order on the home front, but they just don’t feel they should have to pay for a system of governance, even though it primarily serves their corporate interests. The US government exists primarily to make the world safe for multinational corporations, but those firms feel no obligation to pay for that protection in return.
Think of that perfectly legal and widespread racket when you go to pay your taxes in the next weeks, and consider that you have to make up the gap left by the big boys’ antics. Also, when you contemplate the painful cuts coming because of the sequester that undoubtedly will further destabilize the economy, remember that, as the Wall Street Journal estimated, the tax savings of just 19 of those companies would more than cover the $85 billion in spending reductions triggered by the congressional budget impasse.
The most skilled at this con game are the health care and technology companies, which, as a Senate investigation last year revealed, have become quite expert at shifting marketing rights and patents offshore to low-tax countries. Microsoft boosted its foreign holdings by $16 billion last year, and by the end of the company’s fiscal year on June 30, 2012, had $60.8 billion stashed internationally. Through creative accounting, Microsoft was able to claim that only 7 percent of its pretax profit last year was domestically generated.
Oracle increased its foreign holdings by one-third, including new subsidiaries in low-tax Ireland, and thereby was able to add a cool $272 million to the company’s bottom line by avoiding US taxes. Abbott estimates that it saved $1.6 billion in US taxes through its operations in more than a dozen countries. By moving $8.1 billion of its profits overseas, Abbott was able to claim a pretax loss on its US operations. Johnson & Johnson, another health industry giant, has almost all of its cash—$14.8 billion out of $14.9 billion—abroad, yet still claims to be a US company.
One of the longtime leaders in offshore tax avoidance has been that once-American-as-apple-pie company GE, which in a more innocent time hired Ronald Reagan to advertise its wares. Now GE has nearly two-thirds of its jobs abroad, avoided US taxes in the previous two years and has $108 billion stashed overseas.
Two years ago, President Obama appointed GE CEO Jeffrey Immelt to chair his Jobs Council, despite the fact that Immelt had cut his company’s US workforce by a fifth. GE’s expertise is no longer in appliance manufacturing, a division Immelt has tried to shed, but rather in financial manipulation.
GE Capital was a leader in the financial scams that still haunt the US economy, and Immelt has been most effective in lobbying Washington politicians to rig the tax laws to benefit his and other multinational corporations. He has created some jobs, but unfortunately, they are abroad, along with his company’s untaxed profits.
For all these multinational corporations, the love of profit trumps loyalty to country.
Another group who enjoying landmark profits while ordinary American
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In Baltimore, workers are kept at the lowest pay scale and then have their wages stolen and small businesses are relegated to being subcontractors to subcontractors of these global corporations receiving Federal, state, and local contract awards. US NGOs would go to the third world and hire locals to do that nation's development work funneling most of the money into their corporate profit while paying those third world local contractors almost nothing. Sometimes they literally didn't get paid.
This is who you are allowing into your communities. The goal is to make of American small businesses what they are in these developing nations. There is absolutely no plan to grow small businesses that are stable and gain wealth. Like the citizens having ever-growing revenue demands---so to will small businesses that survive.
THAT IS HOW YOU KNOW EVERY TIME YOUR CLINTON NEO-LIBERAL OR BUSH NEO-CON PROMISES TO LOWER SMALL BUSINESS TAXES---THEY ARE LYING.
Obama sent funding for START UPS====that is where citizens do all the work of building a business and then it is engulfed by a global corporation. Clinton neo-liberals eat small businesses for lunch!
Some Small Businesses Pay Tax Rates More Than Double Those Of Large Corporations:
Study The Huffington Post | By David Winograd
Posted: 08/08/2013 5:58 pm EDT Updated: 08/08/2013 6:07 pm EDT
When tax credits and deductions are included, two of the most common types of small businesses pay a percentage on their income to the government more than double that of large corporations, the study commissioned by the National Federation of Independent Businesses and the S Corporation Association found. That's because those types of businesses -- known as S corporations and partnerships -- pay taxes at the individual rate, rather than as a corporate entity, making them ineligible for certain tax benefits, according to The Hill.
The result is an average corporate tax rate of just 12.6 percent, according to Government Accountability Office. That's compared to the 31.6 percent and 29.4 percent that S corporations and partnerships pay respectively, according to the study.
The findings come as many of America’s biggest businesses face criticism for avoiding their fair share in taxes. Many corporations, including Apple, Google and Amazon, wind up paying less than the top Federal tax rate of 35 percent, in part because they report international revenues in countries with lower tax rates, known as tax havens. Some companies, such as General Electric have been known to pay negative tax rates, meaning they actually gain money from paying taxes due to federal tax subsidies and other tax benefits.
Meanwhile, recent calls by President Obama to reform the corporate tax code have been criticized by small business owners who say such efforts would only further reduce the burden paid by corporations while doing nothing for businesses who are taxed at the individual rate.
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If you look at the structure built in Baltimore and then look at this article you see the same third world structure. A global corporation controls the funds----the CEO gets big money----and local small contractors get next to nothing or the locals are rounded up to volunteer.
These are the same corporate non-profits moving into Baltimore or Detroit or soon to be Chicago and they will be working with the same game plan. So, a global corporation in Baltimore is allowed to 'donate' to community development while the deal included great profits for that corporation. So, the citizens have no say in what is placed in their communities----they are rounded up to volunteer-----and then they are told the government coffers are empty because of all of the corporate tax breaks.
THIS IS THE MIRROR OF WHAT THESE SAME GLOBAL CORPORATE NON-PROFITS DID OVERSEAS WITH ALL THE FEDERAL FOREIGN DEVELOPMENT FUNDS.
Below you see the food and health aid groups but the largest offenders are the ones tied to the military and defense departments. This is why Baltimore is still a crumbling city with high poverty and unemployment after decades of supposed development! A PLANNED THIRD WORLD SOCIETY BROUGHT TO YOU BY OUR LEADING NGO---JOHNS HOPKINS.
IT IS HUGE AND THE AMOUNT OF TAX REVENUE NOT COLLECTED ON WHAT IS CORPORATE WORK IS HUGE AS WELL.
These are what we are seeing in US cities from Baltimore, Philly, Newark, Detroit, Chicago, and LA-----all involving corporations doing ordinary work but being allowed to be called NON-PROFITS and avoiding all taxation. This is what global corporate tribunal rule looks like. Make a few families in the area rich----have them hire people that will move the fraud along with no question----and then pay them little or nothing allowing the few wealthy families become patrons.
SOUND LIKE BALTIMORE???? YOU BETCHA! NOT MANY PEOPLE GET TO BE THE FEW FAMILIES MADE RICH!
Review: High salaries for aid group CEOs
Updated 9/1/2009 8:32 AM | By Allauddin Khan, AP
An Afghan man carries a sack of wheat to distribute to displaced families in Kandahar in May. More than 130 displaced families receive the food from the World Food Program.
By Ken Dilanian, USA TODAY WASHINGTON — Four chief executives whose government-funded non-profit corporations are paid to deliver U.S. foreign assistance earned more than half a million dollars in 2007, a USA TODAY review of public tax records shows. Although President Obama and Congress placed a $500,000 cap on salaries at companies getting taxpayer bailouts, there is no such restriction on those that subsist on federal grants — even those delivering aid to some of the world's poorest regions.
Two senior senators say the pay is excessive.
"It seems to me that these are salaries that are outrageous, particularly if they're government contractors," said Sen. Chuck Grassley of Iowa, the ranking Republican on the Finance Committee, which has jurisdiction over non-profit compensation.
"It conflicts with most people's notion of what a non-profit organization is about when they're paying themselves salaries that are several times higher than what a U.S. Cabinet secretary would earn," said Sen. Patrick Leahy, D-Vt., who chairs the subcommittee that funds foreign aid.
CEO SALARIES: Non-profit aid contractors receive tax exemption The U.S. Agency for International Development relies on a cadre of for-profit companies and tax-exempt groups to deliver foreign assistance programs, which Obama says has gone awry.
"Western consultants and administrative costs end up gobbling huge percentages of our aid overall," Obama said to the news website allAfrica.com in July.
Salaries at for-profit USAID contractors are not disclosed, but non-profit agencies must report their CEO pay on public tax returns posted at Guidestar.org. USA TODAY examined total CEO compensation of the 10 largest recipients of foreign aid grants and contracts that also derive at least 70% of their revenue from U.S. taxpayers. Each one receives a 501(c)3 charitable exemption from federal taxes.
The 10 firms received approximately $4.2 billion in foreign aid grants and contracts over the past three years, government records show.
An understaffed USAID has become "a check-writing agency," Leahy said.
"Large swaths of foreign aid are now dominated by this handful of corporate consultants, many of them enjoying the tax benefits of non-profit status," Leahy said. "A lot of them do very good work, but they also charge a lot in overhead and salaries. The process has become too cozy, shutting out many smaller non-profits that have much to offer."
Non-profit leaders defended their pay as appropriate.
"If I was leading a private-sector company, my salary would be much higher," said Sol Pelavin, CEO of Washington-based American Institutes for Research (AIR), who was paid $1.1 million in 2007, the highest in the group. His firm has won $269.6 million in funding from USAID since 2007, government records show, for work that includes technical assistance to education ministries around the world.
Pelavin said his pay included prior year bonuses. His package was the sixth-highest of 223 non-profits examined in a national salary survey by The Chronicle of Philanthropy, which tracks non-profit salaries. His wife is a senior vice president, and together they were paid a combined $1.8 million in salary and benefits in 2007, tax records show.
Stephen Moseley, president of Academy for Education and Development (AED), was paid $879,530 in total compensation in 2007, tax records show, a figure that includes "catch-up retirement restoration payments."
Moseley said his 2007 compensation, which includes pension payments for prior years, was "in line" with competitors. In 2008, an audit by USAID's inspector general found that an education program in Yemen run by AIR and AED "has not achieved its intended results," and criticized the fact that each firm was paid $2 million for overhead costs out of a total budget of $13.5 million.
At International Relief and Development — whose Iraq jobs program was suspended last month as USAID investigates financial irregularities — president Arthur Keys was paid $552,722 in 2007, tax records show. His wife, daughter and his wife's brother took home an additional $265,278 in salary and benefits, the records show.
"My salary is set by a board of directors," Keys said.
A 2007 report by the bipartisan HELP commission, a group of business and non-profit leaders appointed by the president and Congress to examine foreign aid, concluded that some non-profit USAID grant recipients "are so dependent on the agency that their private character is in doubt, while the salary and benefit packages for their senior employees appear to be out of character for a supposed charity."
USAID's reliance on contractors "didn't just happen overnight," acting USAID administrator Alonzo Fulgham told a congressional committee in May. "It's been an erosion of our abilities over the last 15 years."
Contracting has grown feverishly in recent years as USAID has downsized its staff at a time when aid and development spending has surged.
USAID went from 17,500 employees in 1968 to 2,400 in 2005, according to research by Middlebury College Professor Allison Stanger.
Obama's new budget, Fulgham said, will allow USAID to hire 170 new project development officers and 111 new contracting officers — but it will take years to train them.
Non-profit aid contractors receive tax exemption
USA TODAY examined the public tax returns of 10 of the largest non-profit foreign aid contractors that receive at least 70% of their revenue from the U.S. government. The returns show the salary, benefits and deferred compensation paid to top officials. The organizations were paid a total of $4.2 billion since 2007 through contracts and grants to deliver aid to some of the world's poorest countries, according to USA Spending, the government's money-tracking website. As part of their grants, these groups keep anywhere from 10% to 30% in overhead that pays for salaries and other costs at headquarters. Each of the groups has a charitable tax exemption.
Organization
Total obligations from USAID, fiscal 2007
Total revenue, fiscal 2007
Total 2007 chief executive compensation
American Institutes for Research $76.4 million $269.6 million $1,172,906 Academy for Educational Development $157.4 million $406.5 million $879,530 Research Triangle International $216.3 million $614 million $658,844 International Relief and Development $507.4 million¹ $296.8 million $552,722 Education Development Center $47.9 million $131 million $440,696 Family Health International $63.2 million $262.2 million $365,381 Pathfinder International $20 million $91.6 million $364,491 Management Sciences for Health $48 million $135 million $300,593 Intrahealth International $37.5 million $57.5 million $243,003 Private Agencies Collaborating Together $65.5 million $114.8 million $219,971 Sources: IRS Form 990s posted on Guidestar.org, USASpending.gov 1 – Includes value of multiyear grants released in fiscal 2007.
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A third world nation telling the US that Rule of Law is important.
As global corporations are allowed to come to the US and we are seeing them declare themselves 'social benefit' corporations simply because they are coming to cities and doing work that they would anywhere. All of it tax-free allowing them to take on workers as volunteers instead of hiring workers as a private employer.
It is a complete scam and the amount of revenue we lost in Baltimore because of this would have rebuilt the entire surrounding communities now crumbling.
“The international community should be happy we are implementing the rule of law,” said Said Mubin Shah, deputy minister of finance for customs and revenue. “We should work together to solve this problem and impose the rule of law, because a lot of foreign contractors are evading their taxes.”
When you look at how the US allows corporations and funding to be used overseas then you have an idea of what they are going to do in your neck of the woods. The same economic structure as in Kabal exists in Baltimore for decades because Maryland does not enforce Rule of Law or allow citizens rights to justice. This is what is coming to cities and towns across the US and Trans Pacific Trade Pact will be used to lower the accountability to US, state, and local laws.
WRITING OFF TAXATION BECAUSE A CORPORATION IS GLOBAL AND DOING 'SOCIAL BENEFIT'. THIS IS EXACTLY WHAT IS HAPPENING IN BALTIMORE
Asia Pacific
Conflict on Afghan Efforts to Tax Foreign Contractors
By ROD NORDLANDJAN. 17, 2011
KABUL, Afghanistan — To parse Ben Franklin, the only thing certain about life in Afghanistan is death. Taxes are another matter.
The Ministry of Finance says its efforts to change that have run into robust resistance from the very people lecturing it about the rule of law: American and European allies who do not want to see their own contractors taxed.
Those contractors respond that taxing them is an absurdity, because foreign companies are here spending military and other foreign aid money that, by United States law and plain common sense, ought to be tax exempt.
“The international community should be happy we are implementing the rule of law,” said Said Mubin Shah, deputy minister of finance for customs and revenue. “We should work together to solve this problem and impose the rule of law, because a lot of foreign contractors are evading their taxes.”
The controversy is a complex one, but Finance Ministry officials bristle at suggestions that this is another example of efforts by the administration of President Hamid Karzai to provoke yet another confrontation with the United States government. United States officials are also locked in dispute with the Afghans over Mr. Karzai’s order to disband all private security companies, and over what American officials see as efforts by his government to hobble anticorruption investigators.
The effort to tax foreign contractors was first reported by The Washington Post on Monday. The newspaper said that while prime contractors were explicitly exempted by law from taxation on aid contracts, the Afghan government was sending tax notices to subcontractors, many of them American and other foreign companies, claiming they were not covered by that provision.
However, Finance Minister Omar Zakhilwal on Monday disputed that in a brief interview, saying the government had made no tax demands on contractors or subcontractors working on aid or defense projects, who are exempt from taxes under a bilateral understanding called the Military Technical Agreement. However, he said, foreign contractors have received tax notices for income not covered by their military or aid contracts. “We respect the M.T.A.,” he said.
In a country where tax evasion, smuggling and bribery of customs officials practically amount to a national pastime, increasing Afghanistan’s revenue base has been a major policy goal for the international community. Afghanistan’s revenue totals only $1.8 billion annually, compared with $13 billion just in United States foreign and military aid in the current fiscal year.
Mr. Shah said that many contractors were using their tax-exempt status to work on non-aid business that should be taxed. He gave the example of fuel oil importers working for the military, who are allowed to bring fuel into Afghanistan without paying tax, but who in many cases sell a portion of their imports into the private market. He says officials know this happens because a far greater amount of fuel is consumed privately than is ever taxed. Mr. Shah conceded that outright smuggling of fuel was also a factor, but not the only one.
“They are evading billions of afghanis this way, but when we ask them for proof about how much they brought in, they won’t say,” he said. “The military won’t tell us how much either.” One dollar is equivalent to about 43 afghanis, the local currency.
Furthermore, Mr. Shah said, when Finance Ministry tax inspectors have approached foreign contractors at their offices here, demanding to see their books, they have been turned away at gunpoint and, in some cases, beaten. He declined to provide specifics of such attacks, nor would he name any of the foreign contractors the ministry believes are tax evaders.
Mr. Shah said that his department’s own advisers, who he said include representatives from the United States Treasury Department and the United States Agency for International Development as well as the World Bank, have been encouraging the ministry to increase its revenues, and in some areas it has been able to do that.
The problem goes beyond trying to tax military contractors for their private business, however. The Afghan government considers certain subcontractors, on all but military projects covered by the Military Technical Agreement, to be subject to income tax on the profits they make in Afghanistan, and have notified them to this effect, according to Ahmad Shah Zamanzai, the director general for revenue in the Ministry of Finance.
“This applies only to subcontractors on other entities outside of ISAF,” Mr. Zamanzai said, referring to the NATO-led International Security Assistance Force. “Afghan subcontractors are not exempted. They have to pay taxes on their profits, so why should a foreign company not have to pay taxes? If it would pay taxes for that work in the United States, we say they should pay tax in the first country where they have the earnings.” He said such tax demands had recently been sent to “a few tens” of foreign companies.
An American official, speaking anonymously because of diplomatic delicacies, confirmed that American and Afghan officials disagreed on whether subcontractors were subject to taxes in Afghanistan, but was unwilling to comment further.
“It is a little issue,” Mr. Zamanzai said. “And it is very complicated. We are having a lot of meetings about it and we are working on it.”
Stan Soloway, president of the Professional Services Council, a trade group based in Arlington, Va., that represents companies doing business for the American government and has many members active in Afghanistan, said it was an issue that needed to be sorted out.
“The U.S. government position on subcontractors is that they are by derivation not taxable,” he said. “At the same time there’s a plethora of agreements, diplomatic, military, status of forces, statutory prohibitions on paying taxes to foreign entities. The key point is it is a growing problem that is crying out for clarity and consistency.”
Normally, American companies would not object to taxation by a foreign government — they would just be able to deduct that tax from their United States tax bill. If the United States government says that taxes should not be paid, then such deductions might be disallowed, he said.
“You can’t put the companies in a position where their tax status is unclear,” Mr. Soloway said, “especially in situations where the amounts are potentially very large.”
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Below you see a state passing laws to protect local contractors while a city like Baltimore and a state like Maryland are involved in allowing all of the problems in this article below to flourish. The amount of tax revenue lost to Baltimore due to out-of-state workers, contractors, mis-classification of workers as independent contractors IS MASSIVE.
I cannot even begin to shout that for decades the City of Baltimore lost so much money to these economic public policies brought to them by their Baltimore City Hall and Maryland Assembly pols working to install public policy written by a very, very, very neo-conservative Johns Hopkins.
Now, all of that tax base lost in creating these kinds of contract bidding schemes is a tit-for-tat pay to play with our tax base. Every time Hopkins identifies a corporation to receive a contract bid you can be sure Hopkins has won a bid in that state all the while paying NO TAXES. Most work in Baltimore is done using these bad policies. The law passed assigning a percentage of local contractors hired was full of loopholes that will never bring the total to 51%.
SIMPLY ENDING THIS MADNESS WOULD BRING BALTIMORE HUGE TAX REVENUE ENDING THE NEED TO SOAK CITIZENS WITH HIGH TAXES, FEES, AND FINES.
If people simply sit back and allow Trans Pacific Trade Pact be installed instead of GETTING RID OF THESE GLOBAL CORPORATE POLS-----KABAL will look like a Rule of Law developed nation next to the US.....................
Oklahoma lawmakers said “Enough is Enough” and passed a new law in 2012 to level the playing field for Oklahoma’s resident subcontractors.
The new law, which takes effect November 1st, requires all contractors submitting a written bid on a public construction project in Oklahoma shall, upon request, show proof of current employer identification numbers issued them by the Oklahoma Tax Commission, the Oklahoma Employment Security Commission, the IRS, and the Social Security Administration. This means that the contractor is required to have such identification numbers prior to submitting any bid or be subject to a penalty levied by the Oklahoma Tax Commission of up to 10 percent of the contractors total bid.
The new law also provides that any contractor that performs work in Oklahoma as a resident or nonresident contractor on a public or private project without first registering with the Oklahoma Tax Commission and the Oklahoma Employment Securities Commission, shall be fined by the Oklahoma Tax Commission up to 10 percent of the contractor’s total bid.
Lastly the new law is designed to stop subcontractors from misclassifying employees as independent contractors. The law provides for a 10 percent penalty of a contractors total bid if they intentionally misclassify employees as independent contractors.
This new enforcement law is in addition to current law which requires any non-resident contractor or subcontractor to register with the office of the Oklahoma Secretary of State, the Oklahoma Tax Commission and the Oklahoma Employment Security Commission prior to conducting business in the state. These non-resident companies are required to post a bond with the Oklahoma Tax Commission to assure that all Oklahoma taxes are or will be paid. Failure to post such bond prohibits the subcontractor from performing work under any contract.
Additionally, current law requires nonresident subcontractors to notify the Oklahoma Tax Commission, the Oklahoma Employment Security Commission, the Worker’s Compensation Court, and the County Assessor before commencing work in the state. The prime contractor is also required to provide notification to these agencies of any contract let to a non-resident subcontractor before the non-resident subcontractor begins work. Once work is complete, the non-resident subcontractor must inform the Oklahoma Tax Commission, the Oklahoma Employment Security Commission, the State Industrial Court, and the County Assessor of such completion.
When a non-resident subcontractor is working in a discipline that requires a state license, that non-resident subcontractor must also have a license issued by the Oklahoma Construction Industries Board. Those disciplines include electrical, plumbing and mechanical. In the case of these licensed trades, the non-resident subcontractor must have the license prior to submitting a bid. In fact, all subcontractors are required by law to have their license number displayed on any bid for public or private projects. In addition to technical trade requirements, a non-resident subcontractor must show proof of registration with the Oklahoma Tax Commission and the Oklahoma Employment Security Commission; show proof of a bond filed with the Oklahoma Tax Commission; and must be in compliance with the Worker’s Compensation Act and the rules and regulations of the Worker’s Compensation Court in order to obtain a license.
Non-resident roofing subcontractors are also required to register with the Oklahoma Construction Industries Board prior to submitting a bid for a public or private project. During the registration process, a non-resident subcontract must show proof of satisfactory worker’s compensation coverage as required by the Worker’s Compensation Act, compliance with Oklahoma tax laws, and compliance with state laws and local ordinances related to standards and permits. Failure to register can result in a fine and prosecution by the District Attorney in addition to those fines provided for in the new enforcement law.
The video provides information on what is required of out-of-state subcontractors who wish to perform work in the state of Oklahoma. It also explains what is required of resident subcontractors, prime contractors, and public officials to ensure compliance with Oklahoma’s laws and regulations by non-resident subcontractors.
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These are the cities that will definitely go to bankruptcy with the coming bond market crash and you can bet----they have operated just as Baltimore has-----using a few decades to move large amounts of Federal, state, and local taxes to build global corporations and make a few families rich while the cities are filled with 'social benefit' non-profits that have no intention of offering social benefit.
Remember, when US industry went overseas it had already planned to return----and TPP is that return. Rather than build small manufacturing factories to replace the national ones----rather than use Enterprise Zone funds to do what they are supposed to do----make sustainable low-income communities----all of which would have generated tax-paying citizens receiving wages and tax-paying small businesses----the goal was to starve these cities to this third world crumble just to bring THE NEW WORLD ORDER BACK WITH A BLAST.
As we wait for the bond market collapse global corporations are just waiting for Congress to issue the national infrastructure building funds now that Trans Pacific Trade Pact has passed and all those funds will build that KABAL-style network of third world development across America.
NO TAX ZONE THEY LIKE TO SAY IN BALTIMORE AS THE CITIZENS AND THEIR COMMUNITIES WITHER.
IT'S NOT LACK OF FUNDS----IT'S SYSTEMIC FRAUD AND GOVERNMENT CORRUPTION BRINGING US CITIES TO BANKRUPTCY!
Eight New Cities on the Verge of Bankruptcy
Money Morning Staff Reports - July 23, 2013
Detroit is the largest municipal default in the history of the US. The city owes $9.2 billion in pensions, $1.9 billion to creditors and is $18.5 billion in debt.
The city's infrastructure is collapsing. Almost half of its streetlights are not working and aren't being repaired.
The average time for Detroit police to respond to an emergency is just under an hour. Crime has spiked. Many in the city have resorted to carrying firearms for their personal protection.
The city bankruptcy epidemic is likely to spread around the country, resulting from years of overspending on wages and pensions in order to keep public employee unions happy and city politicians re-elected.
We take a look at eight U.S. cities on the verge of bankruptcy:
Washington, D.C.
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
Washington, DC
599,657
$322 million
$9.6 billion
3.4%
$537
11.1%
Mayor Vincent Gray said, "My budget will inflict some pain, it's a tough budget and I won't represent it as anything else." Still Gray's budget will leave D.C. in the red and as tough as he reports it is, it isn't nearly tough enough to make any dis lasting difference.
The city council just passed what they call a "Living Wage" that has cost the District 2,000 jobs and maybe more.The "Living Wage" forces employers to pay a minimum wage of $12.80 per hour, instead of $7.25 national minimum wage. This won't help the city's finances as more businesses migrate to neighboring Virginia and Maryland.
The unemployment rate for D.C. will likely go even higher than 11%.
Camden, NJ
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
Camden, New Jersey
517,234
$28 million
$138 million
20.2%
$54
11.1%
Mayor of Camden, Dana Redd in her 2011 budget proposal called for severe budget cut backs that led to nearly one-sixth of all city employees losing their jobs. This included almost 50% of the police force and 33.3% of the fire department. Public employee unions claimed the mayor's cuts would turn the city into a, "living hell". The truth is Camden in many ways is in even worse financial shape than Detroit.
Cincinnati, Ohio
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
Cincinnati, Ohio
331,285
$60 million
$1.2 billion
20%
$181
8.7%
In the City of Cincinnati mums the word when it comes to the city's budget.
Mayor Mark Mallory's lack of any statements concerning the deep troubles in his city led many to believe his intention is for the city to file for bankruptcy.
Making matters worse is the latest news that Moody's has downgraded the city from an Aa1 rating to an Aa2 rating. Although the rating is still the third highest rank given by Moody's, a new warning of another possible downgrade has given many cause for concern.
San Diego
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
San Diego
3 million
$56.7 million
$2.8 billion
2%
$19
10.2%
San Diego is in a deep hole.
Even with severe cuts to public and higher education sectors and even with fire engine cutbacks, San Diego remains fiscally unstable.
Blackouts plague the fire stations. Thousands of blackouts moved through different stations to save $11.5 million in the current fiscal year. Recreation center hours were cut back to 20 hours a week. Almost 80 full-time positions were cut, saving $6.5 million. The city proposed 6% pay cuts for employees across the board and has permanently cut 120 full-time positions.
San Jose, California
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
San Jose
894,943
$115 million
$2.5 billion
4.6%
$128
10%
San Jose Mayor Chuck Reed said, "Whether or not we declare an emergency, we're in an emergency. We just laid off police officers. Last year, we laid off firefighters. We've closed libraries, community centers. We are in an emergency and we need to take action."
Reed also looks to close the deficit by reducing services and controlling the cost of retirement.
San Francisco
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
San Francisco
808,976
$380 million ($480mil for '12-'13, $642mil for '13-'14)
$6.8 billion
5.5%
$470
9.7%
San Francisco Mayor Edwin Lee saved $20.2 million by enacting a hiring freeze.
The mayor's $6.8 billion budget proposal is aimed to close a $380 million shortfall caused by growth in employee benefit costs and loss of revenues from the state and federal governments. Whether or not this is enough to "right the ship" is anybody's guess. It could be too little too late!
Los Angeles
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
Los Angeles
9.8 million
$457 million
$6.9 billion
6.6%
$46
13.3%
Mayor Antonio Villaraigosa has initiated huge cuts to the police and fire departments, while also cutting the Recreation and Parks Department.
Los Angeles cut 10% from homeless programs, as well as permanent cuts to city spending.
The California cities mentioned here are not the Golden Statecities teetering on the brink.
Baltimore
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
Baltimore
599,657
$745 million
$2.2 billion
15%
$50
9.4%
Baltimore Mayor Stephanie Rawlings-Blake knows she has a serious problem. To better understand her dilemma she hired a specialist to discern what the problems are and how to address them.
Then she promptly spent $650,000 for video cell phones for the city councill. According to Census data the median income in the city is $40,000, and 22 percent of the city's residents live in poverty.
The city is plagued with 16,000 vacant properties. Baltimore has the highest property taxes in Maryland — twice as high as in neighboring Baltimore County. With the city hemorrhaging 5% of its residents annually to neighboring Baltimore County there simply isn't enough income to match revenues with the growing budget deficit.
Try as they may, the numbers are not working for any of these eight cities.
It is impossible for them to pay pensions and keep up with normal maintenance to the infrastructure with the revenues they receive.
Combine their high taxes and unemployment with loss of population and jobs spell doom for these cities. Many more are waiting in the wings.
So stay tuned!
City bankruptcies have the potential to roil municipal bond markets. Read what the Detroit bankruptcy means for municipal bonds.
Which city is next? Vote below and enter your email address to receive Money Morning’s Daily Insights
Please understand that TPP is illegal----they are not allowed to sign agreements that take away the American people's ability to change law. So, work hard on getting rid of Clinton neo-liberals and Bush neo-cons and we will get rid of it at national and state levels. In Baltimore we see the same things with TIF and credit bond leverage where agreements with decades of tax breaks are given to global corporations while the coming bond market crash will leave the city crippled economically. They will say these contracts are legally binding BUT THEY WERE NEVER IN THE PUBLIC INTEREST AND THEY PLANNED THE ECONOMIC CRASHES FOR GOODNESS SAKE! If your courts rule these things legal-----
YOU CAN IMPEACH JUDGES THAT DO NOT FOLLOW US CONSTITUTIONAL LAW----TPP IS GLOBAL LAW. Get engaged at all levels and BE THE CANDIDATES IN PRIMARIES AGAINST NEO-LIBERALS AND NEO-CONS!
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Let's talk corporate tax reform and especially how small businesses continue to struggle under higher taxation than their global corporate competitors. It is no secret----global corporations do not pay taxes. The subsidies----the special tax breaks given just for their being in a city and Trans Pacific Trade Pact may make a nation unable to tax global corporations ----while small businesses pay. Greece has always been an economic mess and it has been third world for that reason. One of the things that make it third world is that NO ONE PAYS TAXES....
THE RICH AND CORPORATIONS DON'T AND SO THE PEOPLE AVOID PAYING AS WELL----ERGO, GREECE HAS ALWAYS BEEN IMPOVERISHED.
That is to where all of this avoidance will lead in the US. The difference will be----because all of American's financial dealings are online the IRS will capture tax avoidance of the masses while corporations and the rich pay nothing. This is how you move the US to a third world nation.
So, Baltimore like other cities being gentrified with global corporations gets no tax revenue and very little jobs with only patronage 'donations' and private investment grants. Meanwhile, Baltimore has crumbled and its citizens soaked with taxation, fees, and fines.
THIS IS HOW A THIRD WORLD NATION WORLDS FOLKS!
If Corporations Don't Pay Taxes, Why Should You?
The tax savings of 19 US companies that park their money abroad would be more than enough to cover the $85 billion sequester cuts.
Robert Scheer March 12, 2013
US corporations such as GE have avoided taxes entirely in recent years. (AP Photo/EyePress.)
This story originally appeared at Truthdig. Robert Scheer is the author of The Great American Stickup: How Reagan Republicans and Clinton Democrats Enriched Wall Street While Mugging Main Street (Nation Books).
Go offshore young man and avoid paying taxes. Plunder at will in those foreign lands, and if you get in trouble, Uncle Sam will come rushing to your assistance, diplomatically, financially and militarily, even if you have managed to avoid paying for those government services. Just pretend you’re a multinational corporation.
Robert Scheer That’s the honest instruction for business success provided by 60 of the largest US corporations that, according to a Wall Street Journal analysis, “parked a total of $166 billion offshore last year” shielding more than 40 percent of their profits from US taxes. They all do it, including Microsoft, GE and pharmaceutical giant Abbott Laboratories. Many, like GE, are so good at it that they have avoided taxes altogether in some recent years.
But they all still expect Uncle Sam to come to their aid with military firepower in case the natives abroad get restless and nationalize their company’s assets. We still have a blockade against Cuba because Fidel Castro more than a half century ago dared seize an American-owned telephone company. During that same period, we have consistently intervened to maintain the lock of US corporations on the world’s resources, continuing to the present task of making Iraq and Libya safe for our oil companies.
America’s multinational corporations still need the Navy to protect shipping lanes and the Commerce Department to safeguard US copyrights. They also expect the Federal Reserve and Treasury Department to intervene to provide bailouts and cheap money when the corporate financial swindlers get into trouble, like GE, which almost went aground when its GE Capital financial wing got caught in the great banking meltdown.
They want a huge US government to finance scientific breakthroughs, educate the future workforce, sustain the infrastructure and provide for law and order on the home front, but they just don’t feel they should have to pay for a system of governance, even though it primarily serves their corporate interests. The US government exists primarily to make the world safe for multinational corporations, but those firms feel no obligation to pay for that protection in return.
Think of that perfectly legal and widespread racket when you go to pay your taxes in the next weeks, and consider that you have to make up the gap left by the big boys’ antics. Also, when you contemplate the painful cuts coming because of the sequester that undoubtedly will further destabilize the economy, remember that, as the Wall Street Journal estimated, the tax savings of just 19 of those companies would more than cover the $85 billion in spending reductions triggered by the congressional budget impasse.
The most skilled at this con game are the health care and technology companies, which, as a Senate investigation last year revealed, have become quite expert at shifting marketing rights and patents offshore to low-tax countries. Microsoft boosted its foreign holdings by $16 billion last year, and by the end of the company’s fiscal year on June 30, 2012, had $60.8 billion stashed internationally. Through creative accounting, Microsoft was able to claim that only 7 percent of its pretax profit last year was domestically generated.
Oracle increased its foreign holdings by one-third, including new subsidiaries in low-tax Ireland, and thereby was able to add a cool $272 million to the company’s bottom line by avoiding US taxes. Abbott estimates that it saved $1.6 billion in US taxes through its operations in more than a dozen countries. By moving $8.1 billion of its profits overseas, Abbott was able to claim a pretax loss on its US operations. Johnson & Johnson, another health industry giant, has almost all of its cash—$14.8 billion out of $14.9 billion—abroad, yet still claims to be a US company.
One of the longtime leaders in offshore tax avoidance has been that once-American-as-apple-pie company GE, which in a more innocent time hired Ronald Reagan to advertise its wares. Now GE has nearly two-thirds of its jobs abroad, avoided US taxes in the previous two years and has $108 billion stashed overseas.
Two years ago, President Obama appointed GE CEO Jeffrey Immelt to chair his Jobs Council, despite the fact that Immelt had cut his company’s US workforce by a fifth. GE’s expertise is no longer in appliance manufacturing, a division Immelt has tried to shed, but rather in financial manipulation.
GE Capital was a leader in the financial scams that still haunt the US economy, and Immelt has been most effective in lobbying Washington politicians to rig the tax laws to benefit his and other multinational corporations. He has created some jobs, but unfortunately, they are abroad, along with his company’s untaxed profits.
For all these multinational corporations, the love of profit trumps loyalty to country.
Another group who enjoying landmark profits while ordinary American
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In Baltimore, workers are kept at the lowest pay scale and then have their wages stolen and small businesses are relegated to being subcontractors to subcontractors of these global corporations receiving Federal, state, and local contract awards. US NGOs would go to the third world and hire locals to do that nation's development work funneling most of the money into their corporate profit while paying those third world local contractors almost nothing. Sometimes they literally didn't get paid.
This is who you are allowing into your communities. The goal is to make of American small businesses what they are in these developing nations. There is absolutely no plan to grow small businesses that are stable and gain wealth. Like the citizens having ever-growing revenue demands---so to will small businesses that survive.
THAT IS HOW YOU KNOW EVERY TIME YOUR CLINTON NEO-LIBERAL OR BUSH NEO-CON PROMISES TO LOWER SMALL BUSINESS TAXES---THEY ARE LYING.
Obama sent funding for START UPS====that is where citizens do all the work of building a business and then it is engulfed by a global corporation. Clinton neo-liberals eat small businesses for lunch!
Some Small Businesses Pay Tax Rates More Than Double Those Of Large Corporations:
Study The Huffington Post | By David Winograd
Posted: 08/08/2013 5:58 pm EDT Updated: 08/08/2013 6:07 pm EDT
- The businesses that sponsor your local little league team and pour your morning coffee may end up paying higher tax rates than some of America’s largest, most profitable corporations, a new study suggests.
When tax credits and deductions are included, two of the most common types of small businesses pay a percentage on their income to the government more than double that of large corporations, the study commissioned by the National Federation of Independent Businesses and the S Corporation Association found. That's because those types of businesses -- known as S corporations and partnerships -- pay taxes at the individual rate, rather than as a corporate entity, making them ineligible for certain tax benefits, according to The Hill.
The result is an average corporate tax rate of just 12.6 percent, according to Government Accountability Office. That's compared to the 31.6 percent and 29.4 percent that S corporations and partnerships pay respectively, according to the study.
The findings come as many of America’s biggest businesses face criticism for avoiding their fair share in taxes. Many corporations, including Apple, Google and Amazon, wind up paying less than the top Federal tax rate of 35 percent, in part because they report international revenues in countries with lower tax rates, known as tax havens. Some companies, such as General Electric have been known to pay negative tax rates, meaning they actually gain money from paying taxes due to federal tax subsidies and other tax benefits.
Meanwhile, recent calls by President Obama to reform the corporate tax code have been criticized by small business owners who say such efforts would only further reduce the burden paid by corporations while doing nothing for businesses who are taxed at the individual rate.
________________________________________________
If you look at the structure built in Baltimore and then look at this article you see the same third world structure. A global corporation controls the funds----the CEO gets big money----and local small contractors get next to nothing or the locals are rounded up to volunteer.
These are the same corporate non-profits moving into Baltimore or Detroit or soon to be Chicago and they will be working with the same game plan. So, a global corporation in Baltimore is allowed to 'donate' to community development while the deal included great profits for that corporation. So, the citizens have no say in what is placed in their communities----they are rounded up to volunteer-----and then they are told the government coffers are empty because of all of the corporate tax breaks.
THIS IS THE MIRROR OF WHAT THESE SAME GLOBAL CORPORATE NON-PROFITS DID OVERSEAS WITH ALL THE FEDERAL FOREIGN DEVELOPMENT FUNDS.
Below you see the food and health aid groups but the largest offenders are the ones tied to the military and defense departments. This is why Baltimore is still a crumbling city with high poverty and unemployment after decades of supposed development! A PLANNED THIRD WORLD SOCIETY BROUGHT TO YOU BY OUR LEADING NGO---JOHNS HOPKINS.
IT IS HUGE AND THE AMOUNT OF TAX REVENUE NOT COLLECTED ON WHAT IS CORPORATE WORK IS HUGE AS WELL.
These are what we are seeing in US cities from Baltimore, Philly, Newark, Detroit, Chicago, and LA-----all involving corporations doing ordinary work but being allowed to be called NON-PROFITS and avoiding all taxation. This is what global corporate tribunal rule looks like. Make a few families in the area rich----have them hire people that will move the fraud along with no question----and then pay them little or nothing allowing the few wealthy families become patrons.
SOUND LIKE BALTIMORE???? YOU BETCHA! NOT MANY PEOPLE GET TO BE THE FEW FAMILIES MADE RICH!
Review: High salaries for aid group CEOs
Updated 9/1/2009 8:32 AM | By Allauddin Khan, AP
An Afghan man carries a sack of wheat to distribute to displaced families in Kandahar in May. More than 130 displaced families receive the food from the World Food Program.
By Ken Dilanian, USA TODAY WASHINGTON — Four chief executives whose government-funded non-profit corporations are paid to deliver U.S. foreign assistance earned more than half a million dollars in 2007, a USA TODAY review of public tax records shows. Although President Obama and Congress placed a $500,000 cap on salaries at companies getting taxpayer bailouts, there is no such restriction on those that subsist on federal grants — even those delivering aid to some of the world's poorest regions.
Two senior senators say the pay is excessive.
"It seems to me that these are salaries that are outrageous, particularly if they're government contractors," said Sen. Chuck Grassley of Iowa, the ranking Republican on the Finance Committee, which has jurisdiction over non-profit compensation.
"It conflicts with most people's notion of what a non-profit organization is about when they're paying themselves salaries that are several times higher than what a U.S. Cabinet secretary would earn," said Sen. Patrick Leahy, D-Vt., who chairs the subcommittee that funds foreign aid.
CEO SALARIES: Non-profit aid contractors receive tax exemption The U.S. Agency for International Development relies on a cadre of for-profit companies and tax-exempt groups to deliver foreign assistance programs, which Obama says has gone awry.
"Western consultants and administrative costs end up gobbling huge percentages of our aid overall," Obama said to the news website allAfrica.com in July.
Salaries at for-profit USAID contractors are not disclosed, but non-profit agencies must report their CEO pay on public tax returns posted at Guidestar.org. USA TODAY examined total CEO compensation of the 10 largest recipients of foreign aid grants and contracts that also derive at least 70% of their revenue from U.S. taxpayers. Each one receives a 501(c)3 charitable exemption from federal taxes.
The 10 firms received approximately $4.2 billion in foreign aid grants and contracts over the past three years, government records show.
An understaffed USAID has become "a check-writing agency," Leahy said.
"Large swaths of foreign aid are now dominated by this handful of corporate consultants, many of them enjoying the tax benefits of non-profit status," Leahy said. "A lot of them do very good work, but they also charge a lot in overhead and salaries. The process has become too cozy, shutting out many smaller non-profits that have much to offer."
Non-profit leaders defended their pay as appropriate.
"If I was leading a private-sector company, my salary would be much higher," said Sol Pelavin, CEO of Washington-based American Institutes for Research (AIR), who was paid $1.1 million in 2007, the highest in the group. His firm has won $269.6 million in funding from USAID since 2007, government records show, for work that includes technical assistance to education ministries around the world.
Pelavin said his pay included prior year bonuses. His package was the sixth-highest of 223 non-profits examined in a national salary survey by The Chronicle of Philanthropy, which tracks non-profit salaries. His wife is a senior vice president, and together they were paid a combined $1.8 million in salary and benefits in 2007, tax records show.
Stephen Moseley, president of Academy for Education and Development (AED), was paid $879,530 in total compensation in 2007, tax records show, a figure that includes "catch-up retirement restoration payments."
Moseley said his 2007 compensation, which includes pension payments for prior years, was "in line" with competitors. In 2008, an audit by USAID's inspector general found that an education program in Yemen run by AIR and AED "has not achieved its intended results," and criticized the fact that each firm was paid $2 million for overhead costs out of a total budget of $13.5 million.
At International Relief and Development — whose Iraq jobs program was suspended last month as USAID investigates financial irregularities — president Arthur Keys was paid $552,722 in 2007, tax records show. His wife, daughter and his wife's brother took home an additional $265,278 in salary and benefits, the records show.
"My salary is set by a board of directors," Keys said.
A 2007 report by the bipartisan HELP commission, a group of business and non-profit leaders appointed by the president and Congress to examine foreign aid, concluded that some non-profit USAID grant recipients "are so dependent on the agency that their private character is in doubt, while the salary and benefit packages for their senior employees appear to be out of character for a supposed charity."
USAID's reliance on contractors "didn't just happen overnight," acting USAID administrator Alonzo Fulgham told a congressional committee in May. "It's been an erosion of our abilities over the last 15 years."
Contracting has grown feverishly in recent years as USAID has downsized its staff at a time when aid and development spending has surged.
USAID went from 17,500 employees in 1968 to 2,400 in 2005, according to research by Middlebury College Professor Allison Stanger.
Obama's new budget, Fulgham said, will allow USAID to hire 170 new project development officers and 111 new contracting officers — but it will take years to train them.
Non-profit aid contractors receive tax exemption
USA TODAY examined the public tax returns of 10 of the largest non-profit foreign aid contractors that receive at least 70% of their revenue from the U.S. government. The returns show the salary, benefits and deferred compensation paid to top officials. The organizations were paid a total of $4.2 billion since 2007 through contracts and grants to deliver aid to some of the world's poorest countries, according to USA Spending, the government's money-tracking website. As part of their grants, these groups keep anywhere from 10% to 30% in overhead that pays for salaries and other costs at headquarters. Each of the groups has a charitable tax exemption.
Organization
Total obligations from USAID, fiscal 2007
Total revenue, fiscal 2007
Total 2007 chief executive compensation
American Institutes for Research $76.4 million $269.6 million $1,172,906 Academy for Educational Development $157.4 million $406.5 million $879,530 Research Triangle International $216.3 million $614 million $658,844 International Relief and Development $507.4 million¹ $296.8 million $552,722 Education Development Center $47.9 million $131 million $440,696 Family Health International $63.2 million $262.2 million $365,381 Pathfinder International $20 million $91.6 million $364,491 Management Sciences for Health $48 million $135 million $300,593 Intrahealth International $37.5 million $57.5 million $243,003 Private Agencies Collaborating Together $65.5 million $114.8 million $219,971 Sources: IRS Form 990s posted on Guidestar.org, USASpending.gov 1 – Includes value of multiyear grants released in fiscal 2007.
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A third world nation telling the US that Rule of Law is important.
As global corporations are allowed to come to the US and we are seeing them declare themselves 'social benefit' corporations simply because they are coming to cities and doing work that they would anywhere. All of it tax-free allowing them to take on workers as volunteers instead of hiring workers as a private employer.
It is a complete scam and the amount of revenue we lost in Baltimore because of this would have rebuilt the entire surrounding communities now crumbling.
“The international community should be happy we are implementing the rule of law,” said Said Mubin Shah, deputy minister of finance for customs and revenue. “We should work together to solve this problem and impose the rule of law, because a lot of foreign contractors are evading their taxes.”
When you look at how the US allows corporations and funding to be used overseas then you have an idea of what they are going to do in your neck of the woods. The same economic structure as in Kabal exists in Baltimore for decades because Maryland does not enforce Rule of Law or allow citizens rights to justice. This is what is coming to cities and towns across the US and Trans Pacific Trade Pact will be used to lower the accountability to US, state, and local laws.
WRITING OFF TAXATION BECAUSE A CORPORATION IS GLOBAL AND DOING 'SOCIAL BENEFIT'. THIS IS EXACTLY WHAT IS HAPPENING IN BALTIMORE
Asia Pacific
Conflict on Afghan Efforts to Tax Foreign Contractors
By ROD NORDLANDJAN. 17, 2011
KABUL, Afghanistan — To parse Ben Franklin, the only thing certain about life in Afghanistan is death. Taxes are another matter.
The Ministry of Finance says its efforts to change that have run into robust resistance from the very people lecturing it about the rule of law: American and European allies who do not want to see their own contractors taxed.
Those contractors respond that taxing them is an absurdity, because foreign companies are here spending military and other foreign aid money that, by United States law and plain common sense, ought to be tax exempt.
“The international community should be happy we are implementing the rule of law,” said Said Mubin Shah, deputy minister of finance for customs and revenue. “We should work together to solve this problem and impose the rule of law, because a lot of foreign contractors are evading their taxes.”
The controversy is a complex one, but Finance Ministry officials bristle at suggestions that this is another example of efforts by the administration of President Hamid Karzai to provoke yet another confrontation with the United States government. United States officials are also locked in dispute with the Afghans over Mr. Karzai’s order to disband all private security companies, and over what American officials see as efforts by his government to hobble anticorruption investigators.
The effort to tax foreign contractors was first reported by The Washington Post on Monday. The newspaper said that while prime contractors were explicitly exempted by law from taxation on aid contracts, the Afghan government was sending tax notices to subcontractors, many of them American and other foreign companies, claiming they were not covered by that provision.
However, Finance Minister Omar Zakhilwal on Monday disputed that in a brief interview, saying the government had made no tax demands on contractors or subcontractors working on aid or defense projects, who are exempt from taxes under a bilateral understanding called the Military Technical Agreement. However, he said, foreign contractors have received tax notices for income not covered by their military or aid contracts. “We respect the M.T.A.,” he said.
In a country where tax evasion, smuggling and bribery of customs officials practically amount to a national pastime, increasing Afghanistan’s revenue base has been a major policy goal for the international community. Afghanistan’s revenue totals only $1.8 billion annually, compared with $13 billion just in United States foreign and military aid in the current fiscal year.
Mr. Shah said that many contractors were using their tax-exempt status to work on non-aid business that should be taxed. He gave the example of fuel oil importers working for the military, who are allowed to bring fuel into Afghanistan without paying tax, but who in many cases sell a portion of their imports into the private market. He says officials know this happens because a far greater amount of fuel is consumed privately than is ever taxed. Mr. Shah conceded that outright smuggling of fuel was also a factor, but not the only one.
“They are evading billions of afghanis this way, but when we ask them for proof about how much they brought in, they won’t say,” he said. “The military won’t tell us how much either.” One dollar is equivalent to about 43 afghanis, the local currency.
Furthermore, Mr. Shah said, when Finance Ministry tax inspectors have approached foreign contractors at their offices here, demanding to see their books, they have been turned away at gunpoint and, in some cases, beaten. He declined to provide specifics of such attacks, nor would he name any of the foreign contractors the ministry believes are tax evaders.
Mr. Shah said that his department’s own advisers, who he said include representatives from the United States Treasury Department and the United States Agency for International Development as well as the World Bank, have been encouraging the ministry to increase its revenues, and in some areas it has been able to do that.
The problem goes beyond trying to tax military contractors for their private business, however. The Afghan government considers certain subcontractors, on all but military projects covered by the Military Technical Agreement, to be subject to income tax on the profits they make in Afghanistan, and have notified them to this effect, according to Ahmad Shah Zamanzai, the director general for revenue in the Ministry of Finance.
“This applies only to subcontractors on other entities outside of ISAF,” Mr. Zamanzai said, referring to the NATO-led International Security Assistance Force. “Afghan subcontractors are not exempted. They have to pay taxes on their profits, so why should a foreign company not have to pay taxes? If it would pay taxes for that work in the United States, we say they should pay tax in the first country where they have the earnings.” He said such tax demands had recently been sent to “a few tens” of foreign companies.
An American official, speaking anonymously because of diplomatic delicacies, confirmed that American and Afghan officials disagreed on whether subcontractors were subject to taxes in Afghanistan, but was unwilling to comment further.
“It is a little issue,” Mr. Zamanzai said. “And it is very complicated. We are having a lot of meetings about it and we are working on it.”
Stan Soloway, president of the Professional Services Council, a trade group based in Arlington, Va., that represents companies doing business for the American government and has many members active in Afghanistan, said it was an issue that needed to be sorted out.
“The U.S. government position on subcontractors is that they are by derivation not taxable,” he said. “At the same time there’s a plethora of agreements, diplomatic, military, status of forces, statutory prohibitions on paying taxes to foreign entities. The key point is it is a growing problem that is crying out for clarity and consistency.”
Normally, American companies would not object to taxation by a foreign government — they would just be able to deduct that tax from their United States tax bill. If the United States government says that taxes should not be paid, then such deductions might be disallowed, he said.
“You can’t put the companies in a position where their tax status is unclear,” Mr. Soloway said, “especially in situations where the amounts are potentially very large.”
________________________________________
Below you see a state passing laws to protect local contractors while a city like Baltimore and a state like Maryland are involved in allowing all of the problems in this article below to flourish. The amount of tax revenue lost to Baltimore due to out-of-state workers, contractors, mis-classification of workers as independent contractors IS MASSIVE.
I cannot even begin to shout that for decades the City of Baltimore lost so much money to these economic public policies brought to them by their Baltimore City Hall and Maryland Assembly pols working to install public policy written by a very, very, very neo-conservative Johns Hopkins.
Now, all of that tax base lost in creating these kinds of contract bidding schemes is a tit-for-tat pay to play with our tax base. Every time Hopkins identifies a corporation to receive a contract bid you can be sure Hopkins has won a bid in that state all the while paying NO TAXES. Most work in Baltimore is done using these bad policies. The law passed assigning a percentage of local contractors hired was full of loopholes that will never bring the total to 51%.
SIMPLY ENDING THIS MADNESS WOULD BRING BALTIMORE HUGE TAX REVENUE ENDING THE NEED TO SOAK CITIZENS WITH HIGH TAXES, FEES, AND FINES.
If people simply sit back and allow Trans Pacific Trade Pact be installed instead of GETTING RID OF THESE GLOBAL CORPORATE POLS-----KABAL will look like a Rule of Law developed nation next to the US.....................
Oklahoma lawmakers said “Enough is Enough” and passed a new law in 2012 to level the playing field for Oklahoma’s resident subcontractors.
The new law, which takes effect November 1st, requires all contractors submitting a written bid on a public construction project in Oklahoma shall, upon request, show proof of current employer identification numbers issued them by the Oklahoma Tax Commission, the Oklahoma Employment Security Commission, the IRS, and the Social Security Administration. This means that the contractor is required to have such identification numbers prior to submitting any bid or be subject to a penalty levied by the Oklahoma Tax Commission of up to 10 percent of the contractors total bid.
The new law also provides that any contractor that performs work in Oklahoma as a resident or nonresident contractor on a public or private project without first registering with the Oklahoma Tax Commission and the Oklahoma Employment Securities Commission, shall be fined by the Oklahoma Tax Commission up to 10 percent of the contractor’s total bid.
Lastly the new law is designed to stop subcontractors from misclassifying employees as independent contractors. The law provides for a 10 percent penalty of a contractors total bid if they intentionally misclassify employees as independent contractors.
This new enforcement law is in addition to current law which requires any non-resident contractor or subcontractor to register with the office of the Oklahoma Secretary of State, the Oklahoma Tax Commission and the Oklahoma Employment Security Commission prior to conducting business in the state. These non-resident companies are required to post a bond with the Oklahoma Tax Commission to assure that all Oklahoma taxes are or will be paid. Failure to post such bond prohibits the subcontractor from performing work under any contract.
Additionally, current law requires nonresident subcontractors to notify the Oklahoma Tax Commission, the Oklahoma Employment Security Commission, the Worker’s Compensation Court, and the County Assessor before commencing work in the state. The prime contractor is also required to provide notification to these agencies of any contract let to a non-resident subcontractor before the non-resident subcontractor begins work. Once work is complete, the non-resident subcontractor must inform the Oklahoma Tax Commission, the Oklahoma Employment Security Commission, the State Industrial Court, and the County Assessor of such completion.
When a non-resident subcontractor is working in a discipline that requires a state license, that non-resident subcontractor must also have a license issued by the Oklahoma Construction Industries Board. Those disciplines include electrical, plumbing and mechanical. In the case of these licensed trades, the non-resident subcontractor must have the license prior to submitting a bid. In fact, all subcontractors are required by law to have their license number displayed on any bid for public or private projects. In addition to technical trade requirements, a non-resident subcontractor must show proof of registration with the Oklahoma Tax Commission and the Oklahoma Employment Security Commission; show proof of a bond filed with the Oklahoma Tax Commission; and must be in compliance with the Worker’s Compensation Act and the rules and regulations of the Worker’s Compensation Court in order to obtain a license.
Non-resident roofing subcontractors are also required to register with the Oklahoma Construction Industries Board prior to submitting a bid for a public or private project. During the registration process, a non-resident subcontract must show proof of satisfactory worker’s compensation coverage as required by the Worker’s Compensation Act, compliance with Oklahoma tax laws, and compliance with state laws and local ordinances related to standards and permits. Failure to register can result in a fine and prosecution by the District Attorney in addition to those fines provided for in the new enforcement law.
The video provides information on what is required of out-of-state subcontractors who wish to perform work in the state of Oklahoma. It also explains what is required of resident subcontractors, prime contractors, and public officials to ensure compliance with Oklahoma’s laws and regulations by non-resident subcontractors.
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These are the cities that will definitely go to bankruptcy with the coming bond market crash and you can bet----they have operated just as Baltimore has-----using a few decades to move large amounts of Federal, state, and local taxes to build global corporations and make a few families rich while the cities are filled with 'social benefit' non-profits that have no intention of offering social benefit.
Remember, when US industry went overseas it had already planned to return----and TPP is that return. Rather than build small manufacturing factories to replace the national ones----rather than use Enterprise Zone funds to do what they are supposed to do----make sustainable low-income communities----all of which would have generated tax-paying citizens receiving wages and tax-paying small businesses----the goal was to starve these cities to this third world crumble just to bring THE NEW WORLD ORDER BACK WITH A BLAST.
As we wait for the bond market collapse global corporations are just waiting for Congress to issue the national infrastructure building funds now that Trans Pacific Trade Pact has passed and all those funds will build that KABAL-style network of third world development across America.
NO TAX ZONE THEY LIKE TO SAY IN BALTIMORE AS THE CITIZENS AND THEIR COMMUNITIES WITHER.
IT'S NOT LACK OF FUNDS----IT'S SYSTEMIC FRAUD AND GOVERNMENT CORRUPTION BRINGING US CITIES TO BANKRUPTCY!
Eight New Cities on the Verge of Bankruptcy
Money Morning Staff Reports - July 23, 2013
Detroit is the largest municipal default in the history of the US. The city owes $9.2 billion in pensions, $1.9 billion to creditors and is $18.5 billion in debt.
The city's infrastructure is collapsing. Almost half of its streetlights are not working and aren't being repaired.
The average time for Detroit police to respond to an emergency is just under an hour. Crime has spiked. Many in the city have resorted to carrying firearms for their personal protection.
The city bankruptcy epidemic is likely to spread around the country, resulting from years of overspending on wages and pensions in order to keep public employee unions happy and city politicians re-elected.
We take a look at eight U.S. cities on the verge of bankruptcy:
Washington, D.C.
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
Washington, DC
599,657
$322 million
$9.6 billion
3.4%
$537
11.1%
Mayor Vincent Gray said, "My budget will inflict some pain, it's a tough budget and I won't represent it as anything else." Still Gray's budget will leave D.C. in the red and as tough as he reports it is, it isn't nearly tough enough to make any dis lasting difference.
The city council just passed what they call a "Living Wage" that has cost the District 2,000 jobs and maybe more.The "Living Wage" forces employers to pay a minimum wage of $12.80 per hour, instead of $7.25 national minimum wage. This won't help the city's finances as more businesses migrate to neighboring Virginia and Maryland.
The unemployment rate for D.C. will likely go even higher than 11%.
Camden, NJ
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
Camden, New Jersey
517,234
$28 million
$138 million
20.2%
$54
11.1%
Mayor of Camden, Dana Redd in her 2011 budget proposal called for severe budget cut backs that led to nearly one-sixth of all city employees losing their jobs. This included almost 50% of the police force and 33.3% of the fire department. Public employee unions claimed the mayor's cuts would turn the city into a, "living hell". The truth is Camden in many ways is in even worse financial shape than Detroit.
Cincinnati, Ohio
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
Cincinnati, Ohio
331,285
$60 million
$1.2 billion
20%
$181
8.7%
In the City of Cincinnati mums the word when it comes to the city's budget.
Mayor Mark Mallory's lack of any statements concerning the deep troubles in his city led many to believe his intention is for the city to file for bankruptcy.
Making matters worse is the latest news that Moody's has downgraded the city from an Aa1 rating to an Aa2 rating. Although the rating is still the third highest rank given by Moody's, a new warning of another possible downgrade has given many cause for concern.
San Diego
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
San Diego
3 million
$56.7 million
$2.8 billion
2%
$19
10.2%
San Diego is in a deep hole.
Even with severe cuts to public and higher education sectors and even with fire engine cutbacks, San Diego remains fiscally unstable.
Blackouts plague the fire stations. Thousands of blackouts moved through different stations to save $11.5 million in the current fiscal year. Recreation center hours were cut back to 20 hours a week. Almost 80 full-time positions were cut, saving $6.5 million. The city proposed 6% pay cuts for employees across the board and has permanently cut 120 full-time positions.
San Jose, California
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
San Jose
894,943
$115 million
$2.5 billion
4.6%
$128
10%
San Jose Mayor Chuck Reed said, "Whether or not we declare an emergency, we're in an emergency. We just laid off police officers. Last year, we laid off firefighters. We've closed libraries, community centers. We are in an emergency and we need to take action."
Reed also looks to close the deficit by reducing services and controlling the cost of retirement.
San Francisco
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
San Francisco
808,976
$380 million ($480mil for '12-'13, $642mil for '13-'14)
$6.8 billion
5.5%
$470
9.7%
San Francisco Mayor Edwin Lee saved $20.2 million by enacting a hiring freeze.
The mayor's $6.8 billion budget proposal is aimed to close a $380 million shortfall caused by growth in employee benefit costs and loss of revenues from the state and federal governments. Whether or not this is enough to "right the ship" is anybody's guess. It could be too little too late!
Los Angeles
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
Los Angeles
9.8 million
$457 million
$6.9 billion
6.6%
$46
13.3%
Mayor Antonio Villaraigosa has initiated huge cuts to the police and fire departments, while also cutting the Recreation and Parks Department.
Los Angeles cut 10% from homeless programs, as well as permanent cuts to city spending.
The California cities mentioned here are not the Golden Statecities teetering on the brink.
Baltimore
City
Population:
Deficit through 2012:
Budget in Fiscal year 2012:
Annual Budget Shortfall:
Deficit per Capita:
2011 Unemployment Rate
Baltimore
599,657
$745 million
$2.2 billion
15%
$50
9.4%
Baltimore Mayor Stephanie Rawlings-Blake knows she has a serious problem. To better understand her dilemma she hired a specialist to discern what the problems are and how to address them.
Then she promptly spent $650,000 for video cell phones for the city councill. According to Census data the median income in the city is $40,000, and 22 percent of the city's residents live in poverty.
The city is plagued with 16,000 vacant properties. Baltimore has the highest property taxes in Maryland — twice as high as in neighboring Baltimore County. With the city hemorrhaging 5% of its residents annually to neighboring Baltimore County there simply isn't enough income to match revenues with the growing budget deficit.
Try as they may, the numbers are not working for any of these eight cities.
It is impossible for them to pay pensions and keep up with normal maintenance to the infrastructure with the revenues they receive.
Combine their high taxes and unemployment with loss of population and jobs spell doom for these cities. Many more are waiting in the wings.
So stay tuned!
City bankruptcies have the potential to roil municipal bond markets. Read what the Detroit bankruptcy means for municipal bonds.
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