Deficit Continues to Drop But Low Corporate Tax Rates Threaten Outlook

Los Angeles Times:

The federal deficit continues to decline thanks to budget cuts and slower growth in Medicare costs, but lower than expected corporate tax revenues dimmed some of the improved outlook, according to a report Wednesday from the Congressional Budget Office…

Declining corporate tax revenues are largely to blame for a $26 billion dip in overall revenue projections from the non-partisan budget office’s April forecast, and the budget director called the change not particularly large, but “notable.”

Seriously MoveOn? You Want Us to Do What?


I like, I really do. I agree with them in almost every area. But their idea for protesting corporate tax deadbeats, aka large employers, in local communities has to be one of the worst ideas they’ve ever had.

In one fell swoop, we come out against employers and in favor of taxes. What kind of awful news soundbites and images will this produce?

Mind you, there are plenty of reasons to hate, say, FedEx, not the least of which is that their poor drivers are “contract workers” who own their own trucks so the company can avoid maintenance costs, unions, and health care and retirement benefits. But going to the local FedEx office to protest the source of your neighbor’s livelihood seems like a photo op dreamed up by James O’Keefe himself.

Others on the target list are GE, Boeing, BP, Google, Citigroup, Amazon, Chase, Goldman Sachs, ExxonMobil, WellsFargo, and Bank of America.

Here’s the email I got from MoveOn, explaining the concept.

Dear MoveOn member,

Nobody knows the details of Friday night’s budget agreement to keep the government from shutting down.

But here’s one thing we can be pretty sure of: the pain will fall mainly on poor and middle-class Americans, while billions in tax breaks, loopholes, and handouts for corporations will remain untouched.

Those same billions could keep food in the mouths of hungry women and children, fund critical medical research, and do the actual work of reducing our deficit.