ON WHO RECEIVES ENTITLEMENTS IN THE USA

I came across a wonderful short film the other day that puts the whole idea of welfare and entitlements in perspective. It is out of the University of California, Berkeley.  It was written and narrated by Ananya Roy and includes illustrations by Abby VanMuijen. I want to share it with my readers. Watch and learn what I did by clicking here: Who is Dependent on Welfare

The film peels away the myths about individuals who receive benefits through government programs.  It also exposes the many companies whose very existence depends on government handouts.

To give you an inkling of some of the large companies most entitled in America, I list ten firms with total revenues in excess of $422 Billion. Not one of those listed paid a cent in Federal income taxes on that income in 2012. The list was compiled in March 2013 by Douglas A. McIntyre, which he published on Yahoo.

These firms used the IRS tax code, passed by Congress and signed into law, to deduct losses for everything from bad management (J.C. Penney) to the payment of fines for breaking the law (Bank of America). Other interesting deductions included a coal mine disaster lawsuit (Alpha) and Hurricane Sandy (Verizon and Caesars).

1. GM-Automobile Mfg.-Revenues: $152.26 Billion 
2. Bank of America-Banking Industry-Revenues: $75.17 Billion
3. Caesars Entertainment-Gaming-Revenues: $8.59 Billion
4. Ameren-Utilities-Revenues: $6.64 Billion
5. D.R. Horton-Home Building-Revenues: $4.42 Billion
6. Verizon-Telecommunications-Revenues: $115.85 Billion
7. Lear-Auto Parts & Equipment-Revenues: $14.57 Billion
8. AMR-Airlines-Revenues: $24.86 Billion
9. J.C. Penney-Department Stores-Revenues: $12.99 Billion
10. Alpha Natural Resources-Coal & Fuel-Revenues: $6.98 Billion  

I am not suggesting any of these companies did anything on their tax forms that were illegal.  I am only suggesting we have a tax code that provides tax avoidance methodologies for large U.S. companies that the average middle class taxpayer cannot utilize.

The most egregious offender, in my opinion, is Bank of America. I think it is outrageous that they can break the law then only have to pay a fine that then can be deducted from their income taxes. None of their executives spent a day in jail for their crimes, which helped bring the U.S. housing market to its knees in a matter of a few months.

Farm subsidies, oil drilling credits, lower taxes on capital gains taxes, and more provide businesses and business owners with advantages few Americans realize.

If everyone was fat and happy in America, I do not think this exposure would upset me so. When the tax code lets a business avoid paying taxes to the government that protects it, we have a problem that needs solving. If, however, these companies are also exploiting the system for additional profits while refusing to employ the American people or pay them a living wage, I think it borders on the criminal.