Taxes have been a part of government for as long as there have been things to tax, and the general idea behind them is pretty well understood. The government takes a portion of everyone’s income and spends it in such a way as to improve things for everyone in one way or another. That could be defensive spending, such as military technology or troop wages, administrative costs will always factor in, educational funding, etc. And that’s the way it works in America. Or is it? In truth, corporate lobbyists have ensured that our convoluted tax code heavily favors corporations. The fact is that it’s even possible, if you’re employed by a large corporation, that you’re paying your taxes directly toward your employing company.
In his recent book, The Fine Print, Pulitzer Prize-winning journalist David Cay Johnston explains the laws that allow corporations to go to war with the American working class. In an interview with Alternet, he said the following:
It’s now up to 21 states. In 21 states, they’ve passed a law that says that taxes withheld from your paycheck, for the state, can be kept by the company. Now, every employer doesn’t get this windfall — you have to have to get a deal from the government to do it — 2,700 big companies, every big company you’ve ever heard of, General Electric, Procter and Gamble, Deutsche Bank, you name it, they’ve got these deals, where they get to keep the taxes. Billions of dollars are diverted this way. You know the best thing for the companies about this?