Our Tax System Stinks
November 25, 2011 by Chip Wood
$14 billion in profits, zero in taxes. If you invest in General Electric, congratulations. Your company made $14 billion in profits last year and didn’t pay a penny in taxes. How was that possible? Well, $5 billion in profits in the United States were zeroed out because of a multitude of tax credits (think green energy) and other deductions. And $9 billion was earned and kept overseas, so no taxes were due on that money, either. If this makes you think our tax system stinks, you’re right. Now, what are we going to do about it?
And speaking of a government program that stinks. There are several landfills in and around Dallas where companies can dump garbage. But only one is owned by the city. The McCommas Bluff Landfill in South Dallas charges $21.50 per ton of trash. The private landfills in north Dallas charge $17 to $18 per ton. So the city has decided to order every waste truck in the city to bring their trash to McCommas. The city expects to earn $15 million to $18 million more in revenue. Of course, it will cost the trash haulers more than that, to pay for the extra time, gas, labor, etc. — every penny of which will be passed on to their customers. Isn’t it great when government runs things?
And this is a bad thing? In a speech in San Francisco last month, President Barack Obama warned that if he loses the 2012 election: “It could herald a new, painful era of self-reliance in America.” Only in San Francisco would an audience agree that self-reliance is a bad thing. My momma would have wanted to spank them all.
An amazing blockbuster. Forget “Titanic,” “Avatar” or some other Hollywood hit. The biggest blockbuster in years didn’t come from a movie studio but a bunch of geeks playing war games. In the first 24 hours of its release, “Call of Duty: Modern Warfare 3” sold 6.5 million units, for a total take of $400 million. Please note: That was the sales in one day. Give it a year and the game could pass $1 billion in sales. That’s a lot of bullets, blood and bodies.