2,700 Companies Are Keeping Your State Taxes... Legally

Taxed by the boss

Across the United States more than 2,700 companies are collecting state income taxes from hundreds of thousands of workers – and are keeping the money with the states’ approval, says an eye-opening report published on Thursday.

The report from Good Jobs First, a nonprofit taxpayer watchdog organization funded by Ford, Surdna and other major foundations, identifies 16 states that let companies divert some or all of the state income taxes deducted from workers’ paychecks. None of the states requires notifying the workers, whose withholdings are treated as taxes they paid.

General Electric, Goldman Sachs, Procter & Gamble, Chrysler, Ford, General Motors and AMC Theatres enjoy deals to keep state taxes deducted from their workers’ paychecks, the report shows. Foreign companies also enjoy such arrangements, including Electrolux, Nissan, Toyota and a host of Canadian, Japanese and European banks, Good Jobs First says.

Why do state governments do this? Public records show that large companies often pay little or no state income tax in states where they have large operations, as this column has documented. Some companies get discounts on property, sales and other taxes. So how to provide even more subsidies without writing a check? Simple. Let corporations keep the state income taxes deducted from their workers’ paychecks for up to 25 years.

It was not always this way. Letting companies keep their workers’ state taxes apparently began in Kentucky two decades ago as a way to retain jobs.

Last July when I wrote about six big companies that pocket Illinois state taxes I knew there was more to this. But I had no idea how pervasive these diversions were until I read an advance copy of the 39-page report by Good Jobs First.

What the hell? They get to keep up to 25 years worth of an employees State Taxes on top of barely having to pay any taxes (the big guys). They aren't creating jobs with it either. This is truly Fascism. I'll comment more later, even though this article is a year old and this has been going on for 20 years... I'm stunned but I wanted to share.

The state does the same thing with "unclaimed" property as all states in the union don't put much effort in notifying people they have money coming to them.

money.cnn.com...

reply to post by neo96


They publish in the local papers every year, a list of names that have unclaimed property or money. Hardly the same thing. Essentially by these companies keeping your state taxes, the employee is paying their boss part of their earnings back as well as keeping money for roads, schools etc out of the state treasuries.

reply to post by Kali74


Everyone keeps money funny thing there is taxation is all the rage right now where as they use to pay for those things by issuing bonds.

To repeat I don't support income taxation either by the state or the federal level, and back to property taxes is what is suppose to pay for those "roads" etc

Of course that is when they created lotteries to pay for roads and schools when it comes to roads etc the state owns the land and locals can't do anything with it.

Only when the state gives up power can the locals fix their roads.

reply to post by neo96


Apparently they are giving up power, to Corporations.
How do you not see that?

Originally posted by Kali74
reply to post by neo96

 

Apparently they are giving up power, to Corporations.
How do you not see that?

Considering they are the ones who created the income tax in the first place?

Not much sympathy from me on the issue.

Sounds like they are mad because the states don't get to blow it.

reply to post by Kali74
That's a fascinating article. Particularly coming at near the same time I've posted something myself showing an entirely different side of the same core issue. Systemic Corruption. This isn't even routine corruption with people turning bad to work the system for themselves or others. As your article states...

It was not always this way. Letting companies keep their workers’ state taxes apparently began in Kentucky two decades ago as a way to retain jobs.

and...

In Illinois, the law requires companies to threaten to leave before they can keep taxes withheld from paychecks. Motorola Mobility, now being acquired by Google; the truck maker Navistar; the German manufacturer Continental Tire, and three auto makers – Chrysler, Ford and Mitsubishi – get to keep $346.8 in taxes over 10 years because they threatened to leave Illinois.

(Op Link)

What the heck? If I threaten to leave, they'll just tell me to try not letting the door slam behind me, at best. Business gets hundreds of millions which ABSOLUTELY NOTHING in their business or efforts earned?? Hey, I have no problem with business. I even have no problem with Corporations. (Especially when anyone can go make a "Corp" with $1,500 and an afternoon)...

I DO have a problem with institutional corruption of the market so severe that it doesn't even MATTER in some cases how well the company does after the handouts, cutouts and breaks are figured in. They profit even while 'losing' money. That's as wrong as it comes.

reply to post by neo96


Are you really that afraid of complete government take over that you will excuse every single bad thing that private business does? Do you not realize that government take over is being orchestrated by the private owners? We don't have to let fear rule us, fight now before we literally can't.

reply to post by Kali74


star and flag,

while some look at nothing but xpenditure
the real problem is tax money goes to private institutions while services are cut to the poor,

privatise profits socialise losses,

undeniable, that some will try to say this is perfectly normal by trying to change the thread to those greedy poor people

disgusting

xploder

reply to post by Kali74


Must have missed my earlier comment of neither supporting state or federal income taxes.

We aren't paying income taxes they can't give them to someone else.

reply to post by neo96


We do need taxes to a degree, I don't really see a logical argument for abolishing taxes all together. Simply stating that if there's no tax a business can't pocket it isn't the same thing as saying pocketing it is wrong and anything but theft.

Originally posted by Kali74
reply to post by neo96

 

We do need taxes to a degree, I don't really see a logical argument for abolishing taxes all together. Simply stating that if there's no tax a business can't pocket it isn't the same thing as saying pocketing it is wrong and anything but theft.

How does someone get "abolish all taxes" from ending income tax plenty of other things to be taxed?

In every part of real world society this is fraud. The companies took money under a certain pretense, which they no intention of living up to the contract = fraud.

Anyone who had this happen to them has a cause of action, and undeniable cause of action.

Not in my State they aren't.

This is a really disturbing news.

Luckily the system is a bit different here. Otherwise people would not be able to get pensions at the end.

The system is like this:

Over 20% of everybody´s salary goes directly to the city.
Employee has to pay extra 35% of the salary,which goes social services (free healthcare + pensions)
2% of salary tax which goes directly to your personal pensiom fund. The country pays extra 4% of your salary in that case.

+ there is also over 20% sales tax on every sale and buy + extra taxes on cigarettes, gas and alcohol.

Overally it makes over 55% of everybodys salaries go to the country or city+sales tax. If the companies took a lot out of it, like the 2700 companies do, they would be no pension funds in the future, which would be unacceptable. That is why there is strong regulation on the taxes and it is hard to get by without paying them.

reply to post by Phage


I think it said 27 States 'allow' this.
Got too many irons in the fire atm to re-read lol.

reply to post by Kali74

No. It said 2,700 companies do it...in 16 states.

reply to post by Phage


Thanks.
16 too many.

Some stories just leave me Gobsmacked.
This is one of them.
Must be one big happy 0-jerk up there in corpo/gov land.
My PO meter just broke the needle.