by Suzanne Potter for Public News Service
SACRAMENTO — New research says money that could have helped to build roads, pay down the federal deficit and better fund social programs instead has padded corporate bottom lines after 2017 tax reforms.
Last year, the federal government took in $79 billion fewer corporate tax dollars than it would have before the 2017 Trump tax reforms took effect, according to a new report.
Researchers with the nonprofit Institute on Taxation and Economic Policy evaluated the profits of 279 Fortune 500 companies and found that, even though the law lowered the tax rate from 35% to 21%, corporations paid on average just 11.3% .
Report co-author and ITEP Senior Fellow Matthew Gardner says that’s because the tax bill failed to eliminate huge loopholes.
“That’s big news because part of the point of cutting corporate tax rates was supposed to be that we could broaden the base,” says Gardner. “Make it so that the legal tax rate is what companies actually end up paying. That doesn’t seem to be happening.”
Instead, the report found 91 corporations that paid no federal taxes, including California-based Chevron, plus Amazon, Halliburton and IBM.
The Trump administration insisted the change would bring millions in offshore profits back to the U.S. and spur more job creation. But the report found instead, companies for the most part chose to execute large stock buybacks – which benefit shareholders, not employees.
And Gardner says it’s all perfectly legal. Corporations are simply taking advantage of the tax breaks that they lobbied Congress to get.
“So, it would take a real change of heart among elected officials to turn around and fix this problem,” says Gardner. “But you know, the ‘glass half-full’ argument is that they broke it, they can fix it.”
The authors suggest that Congress repeal full expensing of capital investments, and limit the ability of tech and other companies to use executive stock options to reduce their taxes by generating “costs” that far exceed what companies actually incur.
LA Alcohol Delivery Sees Massive Spike Following “Safer at Home” Order
LOS ANGELES — Following California Governor Gavin Newsom and Los Angeles Mayor Eric Garcetti’s “Safer at Home” order, Saucey has experienced an unprecedented number of users on their alcohol delivery platform.
The company has seen a 300% increase in area sales compared to a standard delivery day.
“As the concern over the COVID-19 virus has grown at both the state and public levels, I think you’re not so coincidentally seeing a rise in people ordering alcohol,” says Saucey co-founder and CEO Chris Vaughn. “We’re feeling the effects elsewhere too, like San Francisco and Chicago; we’re doing our best to assist everyone who wants to use us and use us safely.”
The Los Angeles-based app recognizes they are among select delivery services fortunate enough to be helping people in a variety of markets as they practice social distancing and protect themselves from the rapidly spreading Coronavirus.
“It’s good to see so many people making lifestyle adjustments that let them be as comfortable as they can be during this time,” Vaughn said.
There may be something to that comfort thing. Since March 15, Saucey has seen ice cream sales spike by 500% and soft drinks by 150%. Lime sales also spiked by 350%, potentially pointing to more people making mixed drinks.
As for the alcohol, vodka tops Saucey’s spirit sales and is up by 250%. Whiskey, however, saw the greatest spike at 300%. IPAs held the highest increase in sales in their beer category at 300%.
Saucey will continue providing safe deliveries to the people of Los Angeles, San Francisco, Chicago, San Diego, Chicago, New York, Dallas, Silicon Valley, Orange County and San Jose.
Costco Says Don’t Even Think of Returning Toilet Paper
(TMZ) — Costco is unsympathetic to all the folks who stocked up on toilet paper like they were never gonna get another sheet … because the superstore has made it clear — NO REFUNDS!!!
This sign was plastered on the wall of the Costco in Pentagon City outside Washington, D.C. Now that people have settled in, it seems they’re realizing they have waaaaaay too much toilet paper, hand sanitizer, wipes and Lysol, and apparently some are trying to return it for cash.
You gotta be a little sympathetic … lots of people got laid off after they hoarded these items, so money is a huge issue.
Also on the no-return list — Water and rice.
Drives Aim to Keep Historic Restaurants Alive During Outbreak
LOS ANGELES (Daily News) — With restaurants limited to takeout service or shut down completely by the coronavirus outbreak, a drive has been launched to keep some of Los Angeles’ legendary eateries from fading away.
Known as 1933 Group, the team operates about a dozen themed bars and restaurants in Los Angeles, including the barrel-shaped bar Idle Hour in North Hollywood, Harlowe in West Hollywood, Highland Park Bowl and the Formosa Cafe in West Hollywood.
Many of them have shuttered in recent days amid strict orders implemented by Gov. Gavin Newsom and Mayor Eric Garcetti, aiming to stem the flow of deadly COVID-19.
“We are struggling to survive,” said Dimitri Komarov, the venues’ co-owner. “The impact is dire. We’re losing our […]
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This Just In…
- Petition Circulating to Ask Judge to Keep Ed Buck in Jail
- RAGE is Latest Venue to Fall Victim to the Pandemic
- Koretz Won’t Back ‘Uplift Melrose’ Plan
- Man Sentenced for Hit-and-Run Death of Pedestrian on Sunset
- Beverly Grove Man Charged for COVID Relief Loan Fraud
- County Hospitals Receive 300 iPads for Patients to See Family
- Processions to Cedars Will Salute Healthcare Workers on National Nurses Day