Posted by Leonard Steinberg on March 30th, 2011

OIl companies scream DRILL BABY DRILL, as it will be good for the USA, create jobs, generate tax revenues, yet Transocean denounces their USA ownership status, moves to Switzerland, and avoids $ 2 billion in taxes. 35% corporate tax rates are amongst the highest in the world, yet large corporations, flooded with enough cash to virtually wipe out the country’s debt, don’t pay anything close to that. Smaller companies on the other hand who do not have the means or wherewithall to create foreign tax shelters are the ones paying for all the things taxes pay for…..

While the super-wealthy complain about the USA’s tax rates, a strong majority of them have numerous tax savings schemes, off shore trusts, etc that take their effective tax rates to well below 50% of what they claim them to be.

As reported earlier this month, owners at 740 Park Avenue, arguably the most prestigious building in New York, housing some of the city’s very wealthiest, pay lower real estate taxes than similar sized, much less prestigious properties elsewhere in Manhattan. At 40 Fifth Avenue, the real estate taxes are about 25% lower than a building a few doors down on 11th Street, off 5th Avenue, without a doorman (reported earlier in 2010 by Leonard Steinberg in Luxuryletter).

One in four US corporations pay no taxes to the IRS. ZERO. GE and EXXON two of the largest corporations included.

So who are the ‘little people’? No they are not the poor, although they pay with diss-proportionally lower wages, fewer jobs, etc. It is the MASS WEALTHY that suffer the most (Those worth $ 1- 10 million). The middle to upper middle class and mass wealthy are the ones who will be footing the bills. They are the NOUVEAU LITTLE PEOPLE.

And now you ask why we have such a huge deficit? We certainly spend much too much. Often on things that qualify as horrible waste. But if we pay off this national debt, if we keep our roads and maintain our police and armed forces, know that Leona Helmsley will be proud:  the NOUVEAU little people will be footing the biggest chunk of the bill.