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TOWNIE: CORPORATE TAX FABLES AND COMMUNITARIAN KIDDIE TABLES

CORPORATE TAX FABLES AND COMMUNITARIAN KIDDIE TABLES

 

December 12, 2017

BY JASON PRAMAS @JASONPRAMAS

 

Big local corps quiet about huge profits to come from Repub tax scheme… except GE

An interesting WBUR article, “Largest Mass. Companies Are Mostly Silent On GOP Tax Plans,” asked the top 12 corporations in the Commonwealth to comment on the recently passed Republican scheme to transfer vast amounts of money from the working and middle classes to the rich and the corporations they control—euphemistically called “tax reform” in most of the major news media. Unsurprisingly, Bay State business leaders didn’t want to take time away from rubbing their hands together and cackling with glee about all the free money they’re going to get—choosing instead to remain mum for the moment.

 

But WBUR did get a statement out of General Electric after the Senate vote on the tax plan:

 

GE commends Congress and the White House for their commitment to comprehensive tax reform. GE supports the Senate tax reform plan because it would upgrade the U.S. to a territorial tax system, bring rates in line with other countries, and allow U.S. businesses and workers to compete fairly around the world, so it’s the quality of our products that determine whether we win global deals, and not tax differences.

 

No surprise GE would say that, since it will benefit tremendously from the drop in federal corporate tax from 35 percent to only 20 percent. But it will also get to repatriate as much of the lucre it’s been offshoring as it would like at a one-time tax rate of merely 12 percent. And now that the feds are “upgrading” to a “territorial tax system,” the company will make even more money. Why? Because a territorial tax system means that all the profits multinationals sock away in offshore tax havens will be taxed at a rate of zero percent. You read that correctly. Nada. No taxes at all on foreign profits.

 

Currently, companies like GE stash profits in other countries because, although they have been technically taxed on all profits—foreign and domestic—at the base 35 percent rate (basically a total joke since there are so many corporate tax loopholes that big companies like GE actually end up with a negative tax rate some years, but let’s play along for the purpose of this explanation), they are only required to pay those taxes when they “repatriate” the money back to the US. Which has often been never thanks to a complicated system called “transfer pricing” where corporations book profits in low tax countries, and take deductions in the US and other higher tax countries. And then borrow cheap money on the strength of their foreign bank accounts to make more profits.

 

The result will be even more offshoring of both money and jobs by megacorps. Because why would a company like GE not move more of both away from the US if foreign profits are  tax free—without nearly as much of the tricky accounting that’s currently needed to play the transfer pricing game? Just really bad news for Mass workers. And for boosters of the GE Boston deal. And anyone who thinks big companies like Amazon are going to have much incentive to add lots of jobs anywhere in the US going forward.

 

BPDA “PLAN: Glover’s Corner” protested in Dorchester

As the neoliberal capture of the government and the public sector continues apace, earnest technocrats at the Boston Planning and Development Agency (BPDA, formerly known as the BRA) still find it necessary to play the communitarian “public meeting” game when trying to sell bad deals that advance corporate interests to the working families who are all too often the targets of such deals.

 

Communitarianism being the decades-old fad where institutions representing the rich and powerful work hard to make sure that “every constituency has a seat at the table” when they want to do something that will harm those constituencies. But, of course, the power relations remain unchanged. The rich and powerful remain rich and powerful. Everyone else does not. And “the table” isn’t the real table—where bankers, CEOs, and top government leaders meet to make policy decisions happen. Usually behind closed doors. It’s basically a kiddie table where regular people can pretend they have some impact on a process that’s over before it begins.

 

Which is why it’s nice to see that housing activists with the Dorchester Not For Sale coalition decided to crash a recent BPDA transit-oriented public meeting on its “PLAN: Glover’s Corner”—which is slated, among other things, to add hundreds of units of housing that will be mostly unaffordable to current Dot residents.

 

According to the Bay State Banner and the Dorchester Reporter, the Dorchester activists are taking a page from JP and Roxbury housing activists with the Keep It 100% for Egleston coalition who protested the larger BPDA PLAN: JP/Rox—which might ultimately involve thousands of units of new housing—until the city relented and mandated that 36 percent of the new units (and 40 percent overall, including units currently permitted for construction) must be affordable.

 

The definition of “affordable” for the JP/Rox plan area is pegged to percentages of the average median income of the Boston region set by the US Department of Housing and Urban Development (HUD). So, for example, according to an August Spare Change News article, some “affordable” units being rented and sold as part of the 3200 Washington complex are being offered to households making 70 percent of the region’s average median income, and some to households making 100 percent.

 

But JP and Roxbury advocates have continued to protest PLAN: JP/Rox even after it was made official because its definition of “affordable” remains too high.

 

Spare Change continues, “For the Boston metropolitan region, the average median income is just over $100,000, and according to the U.S. Census Bureau, the average household income for all of Jamaica Plain is $76,968. However, households within the plan’s range have an average income of just over $50,000.”

 

According to a March Bay State Banner article, activists three goals for the plan are “to deepen the affordability level on designated affordable housing units so that they are attainable by households making less than $35,000 per year; increase goals for the portion of new housing that’s designated as affordable from 36 percent to 55 percent; and require the conversion of 250 market-rate units into affordable units..”

 

So while their activism raised the amount of “affordable” housing the BPDA planned to offer in the deal from 30 percent to 36 percent, it’s not going to help many people currently living in or near the affected neighborhoods to stay in the area unless the definition of affordable is changed to reflect economic reality. Given that fact, Mayor Marty Walsh’s much-vaunted progress on getting more affordable housing built on his watch is based largely on smoke and mirrors because much of it remains unaffordable to the people who need it most.

 

The Dorchester activists, meanwhile, are demanding that the BPDA accept a six-month moratorium on PLAN: Glover’s Corner, use the extra time to provide more data to the community on the plan, and do things like provide childcare at public meetings to allow more locals to attend.

 

Thus far, the BPDA is blowing off such demands and trying to plow forward without significant changes to its plan. Boston City Councilor Frank Baker, who attended the Glover’s Corner meeting, agreed with the BPDA in a recent Spare Change article, saying “As far as I’m concerned, it’s not a valid request.”

 

Seems the fight for housing justice is far from over in Dorchester.

 

Townie (a worm’s eye view of the Mass power structure) is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

HOW TO FIND A DECENT PROGRESSIVE ACTIVIST GROUP

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Photo by Chris Faraone

February 6, 2017

BY JASON PRAMAS @JASONPRAMAS

So you went to one of the recent big anti-Trump actions, and you want to become a progressive activist. Not just vote every year or two. Great. But there are dozens of major left activist organizations and hundreds of minor ones working on a host of issues at all levels. Which one to join?

Politics is a minefield. No two ways about it. And the group (or groups) you choose to work with will determine both the course of your life going forward and, in some sense, the fate of the nation. How do you even begin to decide?

I recommend starting with a gut check. What issues are most important to you? Do you want to take on a big fight like getting Trump and his rogue’s gallery of white nationalists out of power? A smaller fight, like expanding public transportation in your region? Or a huge fight, like saving humanity from global warming?

Once you’ve thought deeply about where your political interests lie, search for organizations that are taking on the issues you care most about. Look hard. Do deep web dives. Ask everyone you trust that shares your values. Then ask yourself a series of questions like the following:

1) Is the group run democratically? Far too many activist organizations—especially on the national level—are not. If all edicts in the group seem to come from top officials, and none of the important decisions are made by the members, you’re probably barking up the wrong political tree.

2) Is the group led by elites? Look at the staff, elected officials (if any), and board. Do you see lots of rich people and CEOs? Lots of Ivy League connections? Lots of big (and therefore corporate) foundations? And you’re a progressive and want to rein in corporate power? Find another group.

3) Is the group’s membership and (more importantly) leadership diverse? Do you see people who look like you and a broad array of your friends in the organization? If not, you may want to look elsewhere.

4) Is the group’s agenda transparent or opaque? What does the organization stand for? Is it developing its own positions democratically, or does it seem to be taking marching orders from some unseen higher level? Always look for a clear statement of its politics, values, and action plan—and an indication of who calls the shots in the group. Such information should be front and center in outreach materials, websites, and social media presences. If it’s not, keeping moving.

5) Is the group connected to the Democratic Party? You’ll need to think very carefully about this question, because it determines where you’ll come down in the debate on the future of the American left. Do you want to be connected to the populist left wing of the party? The neoliberal corporate wing of the party (that got the country into the mess we’re in)? Do you want to break with the party and form a better left party? Or join the extra-parliamentary left that doesn’t believe in electoral politics at all? Definitely study before you leap.

6) Is the group purely reactive? Does it engage its members in political discussion and debate, determine a strategy, take action, analyze the action, course correct, and move on to achieve meaningful political change. Or does it follow various dog whistles from powerful societal institutions and various media without really developing its own analysis, and encourage members to endlessly engage in aimless street protest. Eschew, if the latter.

7) Is the group a cult? A loaded question, yes. But one worth thinking about. Political cults do exist. If any organization you approach starts putting super heavy pressure on you to join them, to spend all your available waking hours working for them for free, and to disassociate from your friends and family … run.

Otherwise, if you don’t see a group you like, start your own! In general, keep your head about you and use your common sense. Avoid well-off wannabe revolutionaries, radical chic hipsters, and faux radicals who encourage your mouth to write checks to cops, intelligence agencies, and the military that your ass can’t cash, and you’ll be fine. Have fun fighting the power. And let’s be careful out there.

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director and senior editor of DigBoston.

Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

Check out the Apparent Horizon Podcast on:
iTunes, Google Play Music, Blubrry, StitcherTuneIn, and YouTube

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UNITED WE STAND: AN ADMONITION FOR 2017

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January 4, 2017

BY JASON PRAMAS @JASONPRAMAS

As another calendar year begins, it is my custom to prognosticate about what I think is most important for my audience to consider in the months to come. Last year at this time, I asked readers if they wanted to live in a democracy—and I encouraged those who did to join organizations willing to defend and expand the democratic lifeways our society has left.

But how one thinks about democracy depends on where one stands politically. So this year, now that the 2016 election drama has played out, I think it’s worth reflecting on how to unite everyone who believes in American democracy around the cause of saving it. Given that people with very different politics still share a common vision of democracy at a gut level. Though they agree on very little else.

For example, most people who voted for President-elect Donald Trump—outright fascists, theocrats, and incipient monarchs excepted—believe that they did so to defend and expand democracy. Most people who voted for also-ran Hillary Clinton—including former Bernie Sanders supporters who held their noses and took one for the team—believe the same thing. Same goes for Libertarians, Greens, smaller left and right third parties, and a vast array of independents. Most everyone believes that people should have some say over political and economic decisions that affect their daily lives.

However, there is one significant group that doesn’t seem particularly interested in democracy (although they often say otherwise). The “good and the great.” The rich and powerful. The corporate leaders, major investors, and top politicians who comprise the oligarchy that controls the commanding heights of American politics and economics. Trump and Clinton represent different factions of it. And until popular movements reign in that oligarchy, nothing significant will change for the better.

Doing so will have to be a broad effort. Because neither the left nor the right can win this one alone. And removing an oligarchy is no easy task. As such, here’s what I think each political crew should do toward that goal.

Democrats: I wrote my basic prescription for you all a few weeks back … reform your party. Do us all a favor, take it away from Wall Street operatives like Clinton and let the grassroots membership run the show (read up on the midterm 1978 Democratic National Conference for some ideas). Give working Americans someone decent to vote for and there won’t be another repeat of the recent debacle anytime soon.

Republicans: If you’re serious about the small government thing, let’s see some grassroots action against the military-industrial complex, corporate welfare, and the national security state. Also, fight to keep government funding for science and medicine in place. [Evangelical Republicans, keep Matthew 19:24 in mind.]

Greens: Get more of your members elected to local and state offices. The better to develop a core of experienced public servants, and eventually field national candidates who have some hope of striking hard bargains with the major parties to win significant reforms like national health care. Or even some Congressional seats.

Libertarians: Same as the Greens (understanding that you will generally oppose big federal programs). But unseating some of the current crop of racist and nativist Repub elected officials would be super helpful.

Smaller parties, “fusion” parties, and proto-parties: Get larger. We really need to muddle our way to a multiparty parliamentary system.

Non-voters of various political stripes: Even if you don’t believe in electoral politics, or just don’t see a point in voting, there’s still plenty you can do. Help rebuild local and regional democratic institutions like neighborhood associations, benefit societies, community service organizations, clubs, co-operatives, labor unions, and forward-thinking religious groups.

That said, everyone should work in concert to create a more democratic culture. A culture where people don’t just accept decisions handed down to them from on high in any sphere of life, but question them. And demand to be part of making them.

We will debate over every conceivable policy while we build that culture. And that’s OK. In a democratic society, the most important thing is that we’ll be able to have those debates. But without such basic human solidarity—such commitment to “hang together” rather than “hang separately,” as Benjamin Franklin probably quipped—democracy in America is finished.

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director.

Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

Check out the Apparent Horizon Podcast on:

iTunes, Google Play Music, Stitcher, TuneIn, and YouTube

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