Why Big Corporations Lobby Against Bill Extending Jobless Benefits

by js123 on Sun Mar 20, 2011 10:43 pm

I couldn't understand why it is difficult for us to get the unemployment benefits extention. By reading this article, now I know. It isn't about Obama, republicans or democrats, no, it's about the corporations. With the extension, it would close loopholes that would allow the corporations to claim tax credits on profits earned overseas. Over 25 million Americans now are going without shelter, food, medical care; but corporations are becoming wealthy. THAT IS THE SAD TRUTH!

Dated: May 25, 2010

"This week, the House of Representatives is trying to pull together a package extending several popular tax breaks as well as important social safety net provisions like unemployment benefits and health insurance subsidies for laid-off workers. The bill costs about $200 billion, but is partially offset by a few tax changes, including the closing of a loophole that allow corporations to claim U.S. tax credits on profits earned overseas.

These unjustified tax breaks have been on the radar of Congress’ tax writers for the last few years, but so far they’ve remained in the tax code due to the pressure of big corporations, which obviously want to preserve their ability to exploit the tax code’s quirks. This time, even though the bill before Congress extends some of their favored tax provisions, like the Research and Development tax credit, the Big Business lobby is at it again, fighting to preserve its ability to use tax loopholes, at the expense of its own tax credits and the extension of unemployment benefits:

International Business Machines Corp. and trade groups for major U.S. companies are pressing Congress to defeat a jobs bill containing billions of dollars in taxes on their global operations…In a letter to lawmakers yesterday, Armonk, New York-based IBM, the world’s biggest computer-services provider, told lawmakers it “strongly opposes” the legislation and would rather do without the research credit than face new taxes on overseas profits.

The Chamber of Commerce has, of course, weighed in on behalf of big business, claiming that the legislation is a “job killer.” Closing the loophole in question would raise about $14.5 billion over ten years, or about $1.5 billion per year from the entire multinational corporation community."

http://wonkroom.thinkprogress.org/2010/05/25/corporate-unemploy-loophole/

by mistermunster on Sun Mar 20, 2011 11:45 pm

This is kind of OLD news. Way before the election and now we see their plan in action today.

by js123 on Sun Mar 20, 2011 11:53 pm

I thought this should give us an idea of why Congress will not give us any more unemployment extensions, especially the 99ers. It hurts corporations big time, it affects their tax credits on the overseas profits.

by Really? on Mon Mar 21, 2011 1:23 am

This is very old news, the article is dated may 2010, almost a year ago.

by **Sick n Tired** on Mon Mar 21, 2011 7:30 am

I did not see this when it came out...thanks for posting it js123. Very interesting....it seems everything revolves around big corporations and tax cuts. Evil or Very Mad