BD 48

Brain Dropping #48

Socialism is evil!  It deprives us of our God-given capacity for self-aggrandizement , and our extraordinary talent to  be one-up rather than one-down – to claw our way to the top by virtue of our self-chosen initiatives, eschewing any aid from man or beast.  This is what made America great!
I thought of those imperatives when reading about the Tesla corporation choosing Nevada for the site of their state-of-the–art battery factory – which will develop new battery technologies to ring the death knell for the internal combustion engine, thus saving the planet from the CO2 stranglehold.
The gang at Tesla played the usual corporate game with the four or five other states which were vying for the jobs such a factory would create.  In a variant of the old Mafia protection racket, Tesla extorted the usual tax concessions, amounting to several billion dollars over a decade, to reject the other states and select Nevada.  So here we have a huge subsidy for a private, profit-making corporation  coming out of public funds with the speculative promise of good paying jobs.  Not only will the taxpayers of Nevada not have the use of the deferred property taxes, but they will have to shoulder the burden of fire and police protection and other infrastructure cost such as highway repair.  In a neat phrase: “Socialism for corporations – Capitalism for the rest of us!”
For those of us still clinging to the above mentioned mythology here’s something to chew on:  More than 2,700 companies in the U.S. have been permitted by fifteen states to keep payroll deducted state taxes without informing the workers.  To clarify: Those taxes deducted automatically from the weekly paycheck, which should go into the state’s coffers, are diverted into the company’s bank account with the approval of the state government as a hidden form of subsidy.
Among the companies benefitting from this subterfuge, this clandestine form of socialism are:  G.E., Goldman Sachs, Procter & Gamble, Chrysler, Ford, General Motors, AMC Theaters, and even foreign companies – Electrolux, Nissan, Toyota.
The states conspiring in this sneaky, taxpayer giveaway to corporations are:  New Jersey, Kentucky, Indiana, Ohio, S. Carolina, Missouri, Georgia, Illinois, N. Carolina, colorado, Mississippi, Maine, New Mexico, Utah and Connecticut.

For more details see David Cay Johnston


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