Honeywell CEO David Cote said yesterday – when his goons weren’t yanking the microphone away from a labor reporter asking a question – that the ideal corporate tax rate should be zero percent:
SORKIN: David, I have a tax question for you. What do you think the ultimate effective tax rate should be on corporations?
COTE: Zero.
SORKIN: Zero?
COTE: The problem is from a fairness perspective, nobody would be able to stand it. But at the the end of the day, jobs come from companies and if we wanted to create the most effective foreign direct investment pipeline you’ve ever seen, we would have the lowest rate possible.
So the only barrier to a 0% corporate tax rate, in Cote’s mind, is that the plebeians might have a problem with it. Otherwise, it’s race race race to the bottom.
Right-wing corporate titan, fish gotta swim, no matter, right? Except that Cote sat on the Bowles-Simpson catfood commission designed to reduce deficits. And his instinct is to completely relieve the tax burden from corporations which are experiencing a record in profits as a percentage of GDP. Barack Obama appointed Cote to that position on the catfood commission. And the President is actually speaking at a Honeywell facility in Minnesota today (just over the border from Wisconsin, by the way, on the eve of the biggest election outside of November happening in just a few days).
Honeywell has been laying off entire plants of union workers and driving down wages and benefits for their employees, while its CEO took home $37 million last year. And as an additional reward for this, David Cote gets plum spots on Presidential commissions where he gets a platform to call for the elimination of corporate taxes, which considering that we already have one of the lowest corporate tax rates in effective terms in the world, and job growth is still basically a disaster, is bad policy in addition to being nakedly aggrandizing.
But this is where we are in our New Gilded Age. Presidents and political parties are basically conduits to serve corporate titans. You can’t even have a decent bout of outrage against private equity firms that use favorable tax laws to strip value out of the companies they buy; over the past two days the Democratic Governor of Massachusetts and a former Democratic President both went out of their way to praise private equity in general and Bain Capital in particular, at odds with the Obama campaign’s strategy. Both of them have cozy ties with the financial elite (Deval Patrick was Ameriquest’s lawyer), and don’t want to rock the boat too much.
Corporate capture of government is a systemic issue that knows no single party.




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Be nice to go back to the corporate tax rates of, say, 1945. Then we wouldn’t be having this discussion, but we would still have a middle class.
David Cote is a jackass of the highest magnitude.
“Corporate capture of government is a systemic issue that knows no single party.” ; and NO ONE in either party wants to admit to it.
United Corporate States of Merika
Gut Social Security and Medicare so corporations can have lower taxes; looks like it fits right in to the presidential agenda. The problem with bread and circuses though, is that when you take away the bread people tend to revolt. It’s so strange that the kleptocrats seem to have forgotten this essential fact about governing.
gotta agree with ya
The criminal political class of both parties have lost all legitimacy to govern.
The former “Democratic”(Corporatist) President wouldn’t have been able to “feel our pain” without signing the legislation that inflicted it upon us.
The new one serves the same masters and relies on many of same advisers that manufactured the basis for the current economic disaster. That seems to be the extent of the manufacturing industry in USA, Inc. The Banksters manufacture financial destruction, and the people suffer.
What ELSE would this CEO advise?: much more “defense” spending, of course, because that’s what Honeywell thrives on (and cause don’t ya know, that’s what keeps Murika strong). They could make more huge profits arming every country in the world to the teeth like Israel and Saudi Arabia (those that think they can afford it, to the detriment of their own general welfare). Why don’t we just become the USW United States of War, and everyone can have a job either making armaments or fighting wars — the ultimate devolution of the human race.
I guess I could say: at least he’s being honest about this particular issue. bring it out into the light of day. these greedheads feel beholden to no one but themselves.
sadly a significant segment of conservative voters would totally agree with this greedy charlatan.
this is pretty much where it’s at.
The tax code in this country just let’s these rich guys keep more of their millions. And now we have Pelosi wanting to give them more.
Thanks to the conservatives push for gun ownership for ALL (thanks, NRA and gun manufacturers), has a society ever been so well-armed preceding a revolution?
That’s “Amercia.” Mittens’ campaign app says so.
But wait, corporations are PEOPLE!
They have to be taxed.
they amass SO MUCH money they can buy everything,and everybody
SKYS THE LIMIT
he s no worse than the disgrace that Presides now
nice jawline, there, mussolini…beware the partisans.
I doubt there’s ever been a country so outclassed by firepower than the current one.
Sure, more Americans have guns than other society in history, but trust me, the American government’s arsenal is so far beyond that, that IMO, it’s probably the greatest difference in relative power between citizens and it’s government in the history of the world.
About the only thing all those gun owners in this country will result in, is in killing each other.
Great idea I’m all for it with a little stipulation that along with no corporate tax there be no cap on paying social security and a stepped tax bracket topping out at 99% for anything over $ 5 million. So bring back the Eisenhower tax brackets , limit the mortgage deduction to one per family, uncap Social Security and lower the retirement age and we’ll be fine without any corporate taxes.
The drone wars in the middle east are practice for domestic use.
Yeah, I’ve always been ok with doing away with corporate taxes myself.
BUT, it needs to be coupled with some things, like you said, and, IMO, some things making sure that every expense paid by a corporation that even remotely benefits it’s officers are treated by income for such officers. And tax dividends as ordinary income, since it was ordinary corporate income.
But yeah, maybe it’s from my conservative college, but it’s one of the conservative ideas I actually agree with wholeheartedly, IF it’s done correctly.
Here,though, I would bet it would be coupled with lower tax rates dividends and some other stupid crap that would actually make it worse.
Both you guys are right. This mess, as complicated as it is, has several fixes. Fair and equitable if you structure it right. Won;t every happen with today’s obstructionist republican party and the useless and clueless democrats.
I disagree. HERE, we can simply throw you in prison indefinately if we “suspect” you are a terrorist. No charges, no trial.
Truer words were never spoken.
David, I’d bet you were Benjamin Franklin in a prior life.
Geez, the DDay post of this morning noted how Corporations are swimming in cash, yet…there are no jobs. By Cote’s reasoning taxes should be low so companies can create jobs. We ought to be at maximum employment now. Since we are not, I say jack those taxes back up to where they were when we had a thriving middle class.
Screw him and the horse he rode in on. I’ll be darned if it’s MY responsibility to shoulder the burden of educating his future work force, paying for the infrastructure that he needs to engage in interstate commerce and paying for the security and regulatory structure that protects his ability to make a profit(stuff like patents, police presence, etc, etc).
I’ll be darned if corporations that make billions get to freeload off of taxpaying citizens. They can pay their fair share or move the f on as far as I’m concerned.
Corporations are NOT people and only citizens should be taxed or have their voices heard in Congress.
But, as someone mentioned, it’s also essential to have sufficiently high individual rates for the rich, so that money tends to go toward actual investment and growth of the economy.
Then, with that we could limit executive pay and ban CEOs on the Board of Directors to avoid too much hanky panky pay deals.
Then government could raise the minimum wage and stop trying to kill unions.
Finally corporations need to stop taking the country’s wealth overseas. Our people built that fortune and it needs to be reinvested here, in plant and new hires.
Mittens won’t do any of that, but Obama could with a Dem Congress.
I have to disagree. If it’s one thing we learned from Vietnam and are re-learning the painful way in Afghanistan and Iraq is that brilliantly advanced tactical weapons are often no match for dedicated enemies practicing asymetric warfare. Now I admit, the surveillance state and the coming use of drones is designed to counter the asymetric advantage, but it’s not clear to me that this approach would work in America. Also, you have to consider at what point would US troops refuse to fire on their fellow citizens. The history of almost every modern revolution is that at a critical point, the military turned its guns around and pointed them at the bosses.
So, if corporations pay no taxes then they should not be able to use our roads to transport goods, use our court system to adjudicate their numerous disputes, expect our police to guard their structures, etc, etc, etc.